1-1 By: Eckels, Carona H.B. No. 156
1-2 (Senate Sponsor - Harris of Tarrant)
1-3 (In the Senate - Received from the House March 31, 1993;
1-4 April 1, 1993, read first time and referred to Committee on
1-5 Economic Development; May 4, 1993, reported favorably by the
1-6 following vote: Yeas 10, Nays 0; May 4, 1993, sent to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Parker x
1-10 Lucio x
1-11 Ellis x
1-12 Haley x
1-13 Harris of Dallas x
1-14 Harris of Tarrant x
1-15 Leedom x
1-16 Madla x
1-17 Rosson x
1-18 Shapiro x
1-19 Wentworth x
1-20 A BILL TO BE ENTITLED
1-21 AN ACT
1-22 relating to the adoption of the Uniform Condominium Act.
1-23 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-24 SECTION 1. Title 7, Property Code, is amended by adding
1-25 Chapter 82 to read as follows:
1-26 CHAPTER 82. UNIFORM CONDOMINIUM ACT
1-27 SUBCHAPTER A. GENERAL PROVISIONS
1-28 Sec. 82.001. SHORT TITLE. This chapter may be cited as the
1-29 Uniform Condominium Act.
1-30 Sec. 82.002. APPLICABILITY. (a) This chapter applies to
1-31 all commercial, industrial, residential, and other types of
1-32 condominiums in this state for which the declaration is recorded on
1-33 or after January 1, 1994. A condominium for which the declaration
1-34 was recorded before January 1, 1994, may be governed exclusively
1-35 under this chapter if either:
1-36 (1) the owners of units vote to amend the declaration,
1-37 in accordance with the amendment process authorized by the
1-38 declaration, to have this chapter apply and that amendment is filed
1-39 for record in the condominium records in each county in which the
1-40 condominium is located; or
1-41 (2) a declaration or amendment of declaration was
1-42 recorded before January 1, 1994, and the declaration or amendment
1-43 states that this chapter will apply in its entirety on January 1,
1-44 1994.
1-45 (b) An amendment to a declaration under Subsection (a)(1)
1-46 that implements a vote of the unit owners to be governed by this
1-47 chapter may not affect the rights of a declarant or impose duties
1-48 on a declarant that are greater than or in addition to the
1-49 declarant's duties immediately before the date of the vote or
1-50 amendment.
1-51 (c) This section and the following sections apply to a
1-52 condominium in this state for which the declaration was recorded
1-53 before January 1, 1994: Sections 82.005, 82.006, 82.007, 82.053,
1-54 82.054, 82.102(a)(1)-(7) and (12)-(22), 82.111, 82.113, 82.114,
1-55 82.116, 82.157, and 82.161. The definitions prescribed by Section
1-56 82.003 apply to a condominium in this state for which the
1-57 declaration was recorded before January 1, 1994, to the extent the
1-58 definitions do not conflict with the declaration. The sections
1-59 listed in this subsection apply only with respect to events and
1-60 circumstances occurring on or after January 1, 1994, and do not
1-61 invalidate existing provisions of the declaration, bylaws, or plats
1-62 or plans of a condominium for which the declaration was recorded
1-63 before January 1, 1994.
1-64 (d) Chapter 81 does not apply to a condominium for which the
1-65 declaration was recorded on or after January 1, 1994, and does not
1-66 invalidate any amendment to the declaration, bylaws, or plats and
1-67 plans of any condominium for which the declaration was recorded
1-68 before January 1, 1994, if the amendment would be permitted by this
2-1 chapter. The amendment must be adopted in conformity with the
2-2 procedures and requirements specified by those instruments and by
2-3 Chapter 81. If the amendment grants to a person a right, power, or
2-4 privilege permitted by this chapter, all correlative obligations,
2-5 liabilities, and restrictions prescribed by this chapter also apply
2-6 to that person.
2-7 Sec. 82.003. DEFINITIONS. (a) In this chapter:
2-8 (1) "Affiliate of a declarant" means any person who
2-9 controls, is controlled by, or is under common control with a
2-10 declarant. A person "controls" a declarant if the person is a
2-11 general partner, officer, director, or employer of the declarant;
2-12 directly or indirectly or acting in concert with one or more other
2-13 persons, or through one or more subsidiaries, owns, controls, holds
2-14 with power to vote or holds proxies representing more than 20
2-15 percent of the voting interests in the declarant; determines in any
2-16 manner the election of a majority of the directors of the
2-17 declarant; or has contributed more than 20 percent of the capital
2-18 of the declarant. A person "is controlled by" a declarant if the
2-19 declarant is a general partner, officer, director, or employer of
2-20 the person; directly or indirectly or acting in concert with one or
2-21 more other persons, or through one or more subsidiaries, owns,
2-22 controls, holds with power to vote, or holds proxies representing
2-23 more than 20 percent of the voting interests in the person;
2-24 determines in any manner the election of a majority of the
2-25 directors of the person; or has contributed more than 20 percent of
2-26 the capital of the person.
2-27 (2) "Allocated interests" means the undivided interest
2-28 in the common elements, the common expense liability, and votes in
2-29 the association allocated to each unit.
2-30 (3) "Association" means the unit owners' association
2-31 organized under Section 82.101.
2-32 (4) "Board" means the board of directors or the body,
2-33 regardless of name, designated to act on behalf of the association.
2-34 (5) "Common elements" means all portions of a
2-35 condominium other than the units and includes both general and
2-36 limited common elements.
2-37 (6) "Common expense liability" means the liability for
2-38 common expenses allocated to each unit.
2-39 (7) "Common expenses" means expenditures made by or
2-40 financial liabilities of the association, together with any
2-41 allocations to reserves.
2-42 (8) "Condominium" means a form of real property with
2-43 portions of the real property designated for separate ownership or
2-44 occupancy, and the remainder of the real property designated for
2-45 common ownership or occupancy solely by the owners of those
2-46 portions. Real property is a condominium only if one or more of
2-47 the common elements are directly owned in undivided interests by
2-48 the unit owners. Real property is not a condominium if all of the
2-49 common elements are owned by a legal entity separate from the unit
2-50 owners, such as a corporation, even if the separate legal entity is
2-51 owned by the unit owners.
2-52 (9) "Conversion building" means a building that at any
2-53 time before creation of the condominium was occupied wholly or
2-54 partially by persons other than purchasers and persons who occupy
2-55 with the consent of purchasers.
2-56 (10) "Declarant" means a person, or group of persons
2-57 acting in concert, who:
2-58 (A) as part of a common promotional plan, offers
2-59 to dispose of the person's interest in a unit not previously
2-60 disposed of; or
2-61 (B) reserves or succeeds to any special
2-62 declarant right.
2-63 (11) "Declaration" means a recorded instrument,
2-64 however denominated, that creates a condominium, and any recorded
2-65 amendment to that instrument.
2-66 (12) "Development rights" means a right or combination
2-67 of rights reserved by a declarant in the declaration to:
2-68 (A) add real property to a condominium;
2-69 (B) create units, common elements, or limited
2-70 common elements within a condominium;
3-1 (C) subdivide units or convert units into common
3-2 elements; or
3-3 (D) withdraw real property from a condominium.
3-4 (13) "Disposition" means a voluntary transfer to a
3-5 purchaser of any legal or equitable interest in a unit but does not
3-6 include the transfer or release of a security interest.
3-7 (14) "General common elements" means common elements
3-8 that are not limited common elements.
3-9 (15) "Identifying number" means a symbol or address
3-10 that identifies only one unit in a condominium.
3-11 (16) "Leasehold condominium" means a condominium in
3-12 which all or a portion of the real property is subject to a lease
3-13 the expiration or termination of which will terminate the
3-14 condominium or reduce its size.
3-15 (17) "Limited common element" means a portion of the
3-16 common elements allocated by the declaration or by operation of
3-17 Section 82.052 for the exclusive use of one or more but less than
3-18 all of the units.
3-19 (18) "Plan" means a dimensional drawing that is
3-20 recordable in the real property records or the condominium plat
3-21 records and that horizontally and vertically identifies or
3-22 describes units and common elements that are contained in
3-23 buildings.
3-24 (19) "Plat" means a survey recordable in the real
3-25 property records or the condominium plat records and containing the
3-26 information required by Section 82.059. As used in this chapter,
3-27 "plat" does not have the same meaning as "plat" in Chapter 212 or
3-28 232, Local Government Code, or other statutes dealing with
3-29 municipal or county regulation of property development.
3-30 (20) "Purchaser" means a person, other than a
3-31 declarant, who by means of a voluntary transfer acquires a legal or
3-32 equitable interest in a unit other than a leasehold interest or as
3-33 security for an obligation.
3-34 (21) "Residential purposes" means recreational or
3-35 dwelling purposes, or both.
3-36 (22) "Special declarant rights" means rights reserved
3-37 for the benefit of a declarant to:
3-38 (A) complete improvements indicated on plats and
3-39 plans filed with the declaration;
3-40 (B) exercise any development right;
3-41 (C) make the condominium part of a larger
3-42 condominium or a planned community;
3-43 (D) maintain sales, management, and leasing
3-44 offices, signs advertising the condominium, and models;
3-45 (E) use easements through the common elements
3-46 for the purpose of making improvements within the condominium or
3-47 within real property that may be added to the condominium; or
3-48 (F) appoint or remove any officer or board
3-49 member of the association during any period of declarant control.
3-50 (23) "Unit" means a physical portion of the
3-51 condominium designated for separate ownership or occupancy, the
3-52 boundaries of which are described by the declaration.
3-53 (24) "Unit owner" means a declarant or other person
3-54 who owns a unit, or a lessee of a unit in a leasehold condominium
3-55 whose lease expires simultaneously with any lease the expiration or
3-56 termination of which will remove the unit from the condominium, but
3-57 does not include a person having an interest in a unit solely as
3-58 security for an obligation.
3-59 (b) Unless otherwise provided by the declaration or bylaws,
3-60 a term defined by Subsection (a) has the same meaning if used in a
3-61 declaration or bylaws.
3-62 Sec. 82.004. VARIATION BY AGREEMENT. Except as expressly
3-63 provided by this chapter, provisions of this chapter may not be
3-64 varied by agreement, and rights conferred by this chapter may not
3-65 be waived. A person may not act under a power of attorney or use
3-66 any other device to evade the limitations or prohibitions of this
3-67 chapter or the declaration.
3-68 Sec. 82.005. SEPARATE TITLES AND TAXATION. (a) If there is
3-69 a unit owner other than a declarant, each unit that has been
3-70 created, together with its interest in the common elements,
4-1 constitutes for all purposes a separate parcel of real property.
4-2 (b) If there is a unit owner other than a declarant, each
4-3 unit must be separately taxed and assessed, and no separate tax or
4-4 assessment may be rendered against common elements for which a
4-5 declarant has not reserved development rights. Any portion of the
4-6 common elements for which a declarant has reserved any development
4-7 right must be separately taxed and assessed against the declarant,
4-8 and the declarant alone is liable for payment of those taxes.
4-9 (c) If there is no unit owner other than a declarant, the
4-10 real property constituting the condominium may be taxed and
4-11 assessed in any manner provided by law.
4-12 (d) The laws relating to homestead exemptions from property
4-13 taxes apply to condominium units, which are entitled to homestead
4-14 exemptions in those cases in which the owner of a single family
4-15 dwelling would qualify.
4-16 Sec. 82.006. APPLICABILITY OF LOCAL ORDINANCES, REGULATIONS,
4-17 AND BUILDING CODES. A zoning, subdivision, building code, or other
4-18 real property use law, ordinance, or regulation may not prohibit
4-19 the condominium form of ownership or impose any requirement on a
4-20 condominium that it would not impose on a physically identical
4-21 development under a different form of ownership. Otherwise, this
4-22 chapter does not invalidate or modify any provision of any zoning,
4-23 subdivision, building code, or other real property use law,
4-24 ordinance, or regulation.
4-25 Sec. 82.007. CONDEMNATION. (a) If a unit is acquired by
4-26 condemnation, or if part of a unit is acquired by condemnation
4-27 leaving the unit owner with a remnant that may not practically or
4-28 lawfully be used for any purpose permitted by the declaration, the
4-29 condemnation award must compensate the unit owner for the unit and
4-30 its common element interest, whether or not any common element
4-31 interest is acquired. On acquisition, unless the decree provides
4-32 otherwise, the condemned unit's entire allocated interests are
4-33 automatically reallocated to the remaining units in proportion to
4-34 the respective allocated interests of those units before the
4-35 taking, and the association shall promptly prepare, execute, and
4-36 record an amendment to the declaration reflecting the
4-37 reallocations. A remnant of a unit remaining after part of a unit
4-38 is taken under this subsection is a common element.
4-39 (b) Except as provided by Subsection (a), if part of a unit
4-40 is acquired by condemnation, the award must compensate the unit
4-41 owner for the reduction in value of the unit and its common element
4-42 interest. On acquisition, the condemned unit's allocated interests
4-43 are reduced in proportion to the reduction in the size of the unit,
4-44 or on any other basis specified by the declaration, and the portion
4-45 of the allocated interests divested from the partially acquired
4-46 unit are automatically reallocated to that unit and the remaining
4-47 units in proportion to the respective allocated interests of those
4-48 units before the taking, with the partially acquired unit
4-49 participating in the reallocation on the basis of its reduced
4-50 allocated interests.
4-51 (c) If part of the common elements is acquired by
4-52 condemnation, the award must be paid to the association, as trustee
4-53 for the unit owners, and to persons holding liens on the condemned
4-54 property, as their interests may appear. The association shall
4-55 divide any portion of the award not used for any restoration or
4-56 repair of the remaining common elements among the unit owners in
4-57 proportion to their respective common element interests before the
4-58 taking, but the portion of the award attributable to the
4-59 acquisition of a limited common element must be equally divided
4-60 among the owners of the units to which that limited common element
4-61 was allocated at the time of acquisition, or in any manner the
4-62 declaration provides.
4-63 (d) The court decree shall be recorded in each county in
4-64 which any portion of the condominium is located.
4-65 Sec. 82.008. VENUE. Venue for an action to enforce a right
4-66 or obligation arising under the declaration, bylaws, or rules of
4-67 the association is in each county in which any part of the
4-68 condominium is located.
4-69 (Sections 82.009 to 82.050 reserved for expansion
4-70 SUBCHAPTER B. CREATION, ALTERATION, AND TERMINATION
5-1 OF CONDOMINIUMS
5-2 Sec. 82.051. CREATION OF CONDOMINIUM. (a) A condominium
5-3 may be created under this chapter only by recording a declaration
5-4 executed in the same manner as a deed by all persons who have an
5-5 interest in the real property that will be conveyed to unit owners
5-6 and by every lessor of a lease the expiration or termination of
5-7 which will terminate the condominium or reduce its size. The
5-8 declaration shall be recorded in each county in which any portion
5-9 of the condominium is located.
5-10 (b) A declarant may not convey an interest in a unit until
5-11 each holder of a mortgage on the unit immediately before conveyance
5-12 has executed a consent to declaration, and the consent has been
5-13 recorded, or is recorded concurrently with the conveyance, as part
5-14 of the declaration or an amendment to the declaration.
5-15 (c) If a recorded declaration is not properly executed, that
5-16 defect may be cured by a subsequent execution conforming to
5-17 Subsection (a). After an execution defect is cured by authority of
5-18 this subsection, the declaration is retroactively effective on the
5-19 date it was first recorded.
5-20 (d) A county clerk shall, without prior approval from any
5-21 other authority, record declarations and amendments to declarations
5-22 in the real property records, and a county clerk shall record
5-23 condominium plats or plans in the real property records or in books
5-24 maintained for that purpose, as a declarant may request. The book
5-25 for the condominium plat records shall be the same size and type as
5-26 the book for recording subdivision plats.
5-27 (e) This chapter does not affect or diminish the rights of
5-28 municipalities and counties to approve plats of subdivisions and
5-29 enforce building codes as may be authorized or required by law.
5-30 Sec. 82.052. UNIT BOUNDARIES. Except as otherwise provided
5-31 by the declaration or plat:
5-32 (1) if walls, floors, or ceilings are designated as
5-33 boundaries of a unit, then all lath, furring, wallboard,
5-34 plasterboard, plaster, paneling, tiles, wallpaper, paint, finished
5-35 flooring, and any other materials constituting part of the finished
5-36 surfaces are a part of the unit, and all other portions of the
5-37 walls, floors, or ceilings are a part of the common elements;
5-38 (2) if any chute, flue, duct, wire, conduit, bearing
5-39 wall, bearing column, or any other fixture is partially within and
5-40 partially outside the designated boundaries of a unit, then the
5-41 portion serving only that unit is a limited common element
5-42 allocated solely to that unit, and the portion serving more than
5-43 one unit or the common elements is a part of the general common
5-44 elements;
5-45 (3) subject to Subdivision (2), the spaces, interior
5-46 partitions, and other fixtures and improvements within the
5-47 boundaries of a unit are a part of the unit; and
5-48 (4) shutters, awnings, window boxes, doorsteps,
5-49 stoops, porches, balconies, patios, and exterior doors and windows
5-50 or other fixtures designed to serve a single unit, but located
5-51 outside the unit's boundaries, are limited common elements
5-52 allocated exclusively to that unit.
5-53 Sec. 82.053. CONSTRUCTION AND VALIDITY OF DECLARATION AND
5-54 BYLAWS. (a) The provisions of the declaration and bylaws are
5-55 severable.
5-56 (b) The rule against perpetuities may not be applied to
5-57 defeat any provision of the declaration, bylaws, or rules of the
5-58 association.
5-59 (c) If there is a conflict between the provisions of the
5-60 declaration and the bylaws, the declaration prevails except to the
5-61 extent the declaration is inconsistent with this chapter.
5-62 (d) Title to a unit and common elements is not made
5-63 unmarketable or otherwise affected by a provision of unrecorded
5-64 bylaws or by reason of an insubstantial failure of the declaration
5-65 to comply with this chapter. Whether a substantial failure impairs
5-66 marketability is not affected by this chapter.
5-67 Sec. 82.054. DESCRIPTION OF UNITS. A description of a unit
5-68 is a sufficient legal description of the unit and all rights,
5-69 obligations, and interests appurtenant to the unit that were
5-70 created by the declaration or bylaws if the description contains:
6-1 (1) the name of the condominium;
6-2 (2) the recording data for the declaration, including
6-3 any amendments, plats, and plans;
6-4 (3) the county in which the condominium is located;
6-5 and
6-6 (4) the identifying number of the unit.
6-7 Sec. 82.055. CONTENTS OF DECLARATION FOR ALL CONDOMINIUMS.
6-8 The declaration for a condominium must contain:
6-9 (1) the name of the condominium, which must include
6-10 the word "condominium" or be followed by the words "a condominium"
6-11 or a phrase that includes the word "condominium," and the name of
6-12 the association;
6-13 (2) the name of each county in which any part of the
6-14 condominium is located;
6-15 (3) a legally sufficient description of the real
6-16 property included in the condominium;
6-17 (4) a description of the boundaries of each unit
6-18 created by the declaration, including the unit's identifying
6-19 number;
6-20 (5) a statement of the maximum number of units that
6-21 the declarant reserves the right to create;
6-22 (6) a description of the limited common elements other
6-23 than those listed in Sections 82.052(2) and (4);
6-24 (7) a description of any real property, except real
6-25 property subject to development rights, that may be allocated
6-26 subsequently as limited common elements, together with a statement
6-27 that the property may be so allocated;
6-28 (8) an allocation to each unit of its allocated
6-29 interests;
6-30 (9) any restrictions on use, occupancy, or alienation
6-31 of the units;
6-32 (10) a description of and the recording data for
6-33 recorded easements and licenses appurtenant to or included in the
6-34 condominium or to which any portion of the condominium is or may
6-35 become subject by reservation in the declaration;
6-36 (11) the method of amending the declaration;
6-37 (12) a plat or plan or the recording data of a plat or
6-38 plan that has been recorded in the real property or condominium
6-39 plat records;
6-40 (13) a statement of the association's obligation under
6-41 Section 82.111(i) to rebuild or repair any part of the condominium
6-42 after a casualty or any other disposition of the proceeds of a
6-43 casualty insurance policy;
6-44 (14) a description of any development rights and other
6-45 special declarant rights reserved by the declarant, together with a
6-46 legally sufficient description of the real property to which each
6-47 of those rights applies, and a time limit within which each of
6-48 those rights must be exercised;
6-49 (15) if any development right may be exercised with
6-50 respect to different parcels of real property at different times, a
6-51 statement to that effect, together with:
6-52 (A) either a statement fixing the boundaries of
6-53 those portions and regulating the order in which those portions may
6-54 be subjected to the exercise of each development right, or a
6-55 statement that no assurances are made in those regards; and
6-56 (B) a statement as to whether, if any
6-57 development right is exercised in any portion of the real property
6-58 subject to that development right, that development right must be
6-59 exercised in all or in any other portion of the remainder of that
6-60 real property;
6-61 (16) all matters required by this chapter to be stated
6-62 in the declaration; and
6-63 (17) any other matters the declarant considers
6-64 appropriate.
6-65 Sec. 82.056. LEASEHOLD CONDOMINIUMS. (a) Any lease the
6-66 expiration or termination of which may terminate the condominium or
6-67 reduce its size must be recorded. The lessor shall sign the
6-68 declaration, and the declaration must state:
6-69 (1) the recording data for the lease;
6-70 (2) the date on which the lease is scheduled to
7-1 expire;
7-2 (3) a legally sufficient description of the real
7-3 property subject to the lease;
7-4 (4) any right of the unit owners to redeem the
7-5 reversion and the manner in which the unit owners may exercise that
7-6 right, or a statement that the unit owners do not have that right;
7-7 (5) any right of the unit owners to remove
7-8 improvements within a reasonable time after the expiration or
7-9 termination of the lease, or a statement that the unit owners do
7-10 not have that right; and
7-11 (6) any right of the unit owners to renew the lease
7-12 and the conditions of renewal, or a statement that the unit owners
7-13 do not have that right.
7-14 (b) After the declaration for a leasehold condominium is
7-15 recorded, neither the lessor nor the lessor's successor in interest
7-16 may terminate the leasehold interest of a unit owner who makes
7-17 timely payment of the unit owner's share of the rent and otherwise
7-18 complies with all covenants that, if violated, would entitle the
7-19 lessor to terminate the lease. A unit owner's leasehold interest
7-20 is not affected by failure of any other person to pay rent or
7-21 fulfill any other covenant.
7-22 (c) Acquisition of the leasehold interest of a unit owner by
7-23 the owner of the reversion or remainder does not merge the
7-24 leasehold and fee simple interests unless the leasehold interests
7-25 of all unit owners subject to that reversion or remainder are
7-26 acquired.
7-27 (d) If the expiration or termination of a lease decreases
7-28 the number of units in a condominium, the allocated interests shall
7-29 be reallocated as though those units had been taken by condemnation
7-30 unless otherwise provided by the declaration. Reallocation shall
7-31 be confirmed by an amendment to the declaration prepared, executed,
7-32 and recorded by the association.
7-33 Sec. 82.057. ALLOCATION OF COMMON ELEMENT INTERESTS, VOTES,
7-34 AND COMMON EXPENSE LIABILITIES. (a) The declaration shall
7-35 allocate a fraction or percentage of undivided interests in the
7-36 common elements and in the common expenses of the association, and
7-37 a portion of the votes in the association, to each unit and state
7-38 the formulas used to establish those allocations. These
7-39 allocations may not discriminate in favor of units owned by a
7-40 declarant.
7-41 (b) If units may be added to or withdrawn from the
7-42 condominium, the declaration must state the formulas to be used to
7-43 reallocate the allocated interests among all units included in the
7-44 condominium after the addition or withdrawal.
7-45 (c) The declaration may provide:
7-46 (1) that different allocations of votes must be made
7-47 to the units on particular matters specified in the declaration;
7-48 and
7-49 (2) for class voting on specified issues affecting the
7-50 class if necessary to protect valid interests of the class.
7-51 (d) A declarant may not use cumulative or class voting to
7-52 evade any limitation imposed on declarants by this chapter. Units
7-53 may not constitute a class because the units are owned by a
7-54 declarant.
7-55 (e) Except for minor variations due to rounding, the sums of
7-56 the undivided interests in the common elements and of the common
7-57 expense liabilities allocated at any time to all the units shall
7-58 each equal one if stated as fractions or 100 percent if stated as
7-59 percentages. If a discrepancy exists between an allocated interest
7-60 and the result derived from application of the pertinent formula,
7-61 the allocated interest prevails.
7-62 (f) The common elements are not subject to partition. Any
7-63 purported conveyance, judicial sale, or other voluntary or
7-64 involuntary transfer of an undivided interest in the common
7-65 elements without the unit to which that interest is allocated is
7-66 void.
7-67 Sec. 82.058. LIMITED COMMON ELEMENTS. (a) The limited
7-68 common elements and the provisions of the declaration relating to
7-69 the right to use the limited common elements may not be altered
7-70 without the consent of each affected unit owner and the owner's
8-1 first lien mortgagee.
8-2 (b) Except as otherwise provided by the declaration, a
8-3 limited common element may be reallocated by an amendment to the
8-4 declaration, executed by the unit owners between or among whose
8-5 units the reallocation is made. The persons executing the
8-6 amendment shall deliver it to the association, which shall record
8-7 it at the expense of the reallocating unit owners.
8-8 (c) A common element not previously allocated as a limited
8-9 common element may not be allocated except pursuant to the
8-10 declaration made in accordance with Section 82.055(7). The
8-11 allocation shall be made by amendment to the declaration.
8-12 Sec. 82.059. PLATS AND PLANS. (a) Plats and plans are a
8-13 part of the declaration and may be recorded as a part of the
8-14 declaration or separately. Each plat or plan must be legible and
8-15 contain a certification that the plat or plan contains all
8-16 information required by this section.
8-17 (b) Each plat must show:
8-18 (1) the name and a survey or general schematic map of
8-19 the entire condominium;
8-20 (2) the location and dimensions of all real property
8-21 not subject to development rights, or subject only to the
8-22 development right to withdraw, and the location and dimensions of
8-23 all existing improvements within that real property;
8-24 (3) a legally sufficient description of any real
8-25 property subject to development rights, labeled to identify the
8-26 rights applicable to each parcel;
8-27 (4) the extent of any encroachments by or on any
8-28 portion of the condominium;
8-29 (5) to the extent feasible, a legally sufficient
8-30 description of all easements serving or burdening any portion of
8-31 the condominium, and the location of any underground utility line
8-32 that is actually known by the declarant at the time of filing the
8-33 declaration to have been constructed outside a recorded easement;
8-34 (6) the location and dimensions of any vertical unit
8-35 boundaries not shown or projected on recorded plans and the unit's
8-36 identifying number;
8-37 (7) the location, with reference to established data,
8-38 of any horizontal unit boundaries not shown or projected on
8-39 recorded plans and the unit's identifying number;
8-40 (8) a legally sufficient description of any real
8-41 property in which the unit owners will own only an estate for
8-42 years, labeled as "leasehold real property";
8-43 (9) the distance between noncontiguous parcels of real
8-44 property constituting the condominium;
8-45 (10) the location and dimensions of limited common
8-46 elements, other than those described by Sections 82.052(2) and (4);
8-47 (11) in the case of real property not subject to
8-48 development rights, all other matters required by law on land
8-49 surveys; and
8-50 (12) the distance and bearings locating each building
8-51 from all other buildings and from at least one boundary line of the
8-52 real property constituting the condominium.
8-53 (c) A plat may also show the intended location and
8-54 dimensions of a contemplated improvement to be constructed anywhere
8-55 within the condominium, which must be labeled either "MUST BE
8-56 BUILT" or "NEED NOT BE BUILT."
8-57 (d) To the extent not shown on the plats, plans must show:
8-58 (1) the location and dimensions of the vertical
8-59 boundaries of each unit, and the unit's identifying number;
8-60 (2) the horizontal unit boundaries, with reference to
8-61 established data, and the unit's identifying number; and
8-62 (3) any units, appropriately identified, in which the
8-63 declarant has reserved the right to create additional units or
8-64 common elements.
8-65 (e) Unless the declaration provides otherwise, the
8-66 horizontal boundaries of part of a unit located outside a building
8-67 have the same elevation as the horizontal boundaries of the inside
8-68 part and need not be depicted on the plats and plans. Interior
8-69 walls and partitions within a unit need not be included in the
8-70 plats or plans.
9-1 (f) On exercising any development right, the declarant shall
9-2 record either new plats and plans necessary to conform to the
9-3 requirements of this section or new certifications of plats and
9-4 plans previously recorded if those plats and plans otherwise
9-5 conform to the requirements of this section.
9-6 (g) An independent licensed surveyor or engineer shall
9-7 certify at least one plat, whether contained in one or more pages,
9-8 showing all perimeter land boundaries of the condominium, except
9-9 for additional real property, and showing the locations on the
9-10 ground of all buildings labeled "MUST BE BUILT" in relation to land
9-11 boundaries. Certification of any other plat or plan required by
9-12 this chapter shall be made by an independent licensed architect,
9-13 surveyor, or engineer.
9-14 Sec. 82.060. EXERCISE OF DEVELOPMENT RIGHT. (a) To
9-15 exercise a development right, the declarant must prepare, execute,
9-16 and record an amendment to the declaration and record new plats and
9-17 plans for that real property. The declarant is the unit owner of
9-18 any units created. The amendment to the declaration must assign an
9-19 identifying number to each new unit created and, except for
9-20 subdivision or conversion of units described by Subsection (b),
9-21 reallocate the allocated interest among all units. The amendment
9-22 must describe any limited common elements created, designating the
9-23 unit to which each is allocated.
9-24 (b) Development rights may be reserved within any real
9-25 property added to the condominium if the amendment adding the real
9-26 property includes the information required by Section 82.055 or
9-27 82.056, as appropriate, and the plats and plans include the
9-28 information required by Section 82.059(b). This provision does not
9-29 extend the time limit on the exercise of development rights imposed
9-30 by the declaration. Real property to be added is not part of a
9-31 condominium or subject to a declaration until the declaration is
9-32 amended to make the additional real property part of the
9-33 condominium.
9-34 (c) Whenever a declarant exercises a development right to
9-35 subdivide or convert a unit previously created into additional
9-36 units, common elements, or both:
9-37 (1) if the declarant converts the unit entirely to
9-38 common elements, the amendment to the declaration must reallocate
9-39 all the allocated interests of the unit among the other units as if
9-40 the unit had been taken by condemnation; and
9-41 (2) if the declarant subdivides the unit into two or
9-42 more units, whether or not any part of the unit is converted into
9-43 common elements, the amendment to the declaration must reallocate
9-44 all the allocated interests of the unit among the units created by
9-45 the subdivision in any reasonable manner prescribed by the
9-46 declarant.
9-47 (d) If the declaration provides that all or a portion of the
9-48 real property is subject to the development right of withdrawal:
9-49 (1) if all the real property is subject to withdrawal,
9-50 and the declaration does not describe separate portions of real
9-51 property subject to that right, none of the real property may be
9-52 withdrawn after a unit has been conveyed to a purchaser; and
9-53 (2) if a portion or portions are subject to
9-54 withdrawal, no portion may be withdrawn after a unit in that
9-55 portion has been conveyed to a purchaser.
9-56 Sec. 82.061. ALTERATIONS OF UNITS. (a) Subject to the
9-57 provisions of the declaration and other provisions of law, a unit
9-58 owner:
9-59 (1) may make improvements or alterations to the
9-60 owner's unit that do not impair the structural integrity or
9-61 mechanical systems or lessen the support of any portion of the
9-62 condominium;
9-63 (2) may not change the appearance of the common
9-64 elements or the exterior appearance of a unit or any other portion
9-65 of the condominium without prior written permission of the
9-66 association; and
9-67 (3) after acquiring an adjoining unit or an adjoining
9-68 part of an adjoining unit, with the prior written approval of the
9-69 association, may remove, alter, and create apertures in an
9-70 intervening partition, even if the partition in whole or in part is
10-1 a common element, if those acts do not impair the structural
10-2 integrity or mechanical systems or lessen the support of any
10-3 portion of the condominium.
10-4 (b) Removal of partitions or creation of apertures under
10-5 Subsection (a)(3) is not an alteration of boundaries.
10-6 Sec. 82.062. RELOCATION OF BOUNDARIES BETWEEN ADJOINING
10-7 UNITS. Subject to the declaration, the boundaries between
10-8 adjoining units may be relocated by an amendment to the declaration
10-9 on written application to the association by the owners of those
10-10 units. If the owners of the adjoining units have specified a
10-11 reallocation between their units of their allocated interests, the
10-12 application must state the proposed reallocations. Unless the
10-13 board determines not later than the 30th day after the date the
10-14 application is received that the reallocation is unreasonable, the
10-15 association shall prepare an amendment that identifies the units
10-16 involved, states the reallocation, is executed by the applying unit
10-17 owners, and contains words of conveyance between them. At the
10-18 expense of the applying unit owners, the association shall prepare
10-19 and record the amendment and plats or plans necessary to show the
10-20 altered boundaries between adjoining units, and the units'
10-21 dimensions and identifying numbers.
10-22 Sec. 82.063. SUBDIVISION OF UNITS. (a) If the declaration
10-23 expressly permits, a unit may be subdivided into two or more units.
10-24 Subject to the declaration, on written application of a unit owner
10-25 to subdivide a unit and after payment by the unit owner of the cost
10-26 of preparing and recording amendments and plats, the association
10-27 shall prepare, execute, and record an amendment to the declaration,
10-28 including the plats and plans, subdividing the unit.
10-29 (b) The amendment to the declaration must be executed by the
10-30 owner of the unit to be subdivided, assign an identifying number to
10-31 each unit created, and reallocate the allocated interests formerly
10-32 allocated to the subdivided unit to the new units in any reasonable
10-33 manner prescribed by the owner of the subdivided unit.
10-34 Sec. 82.064. EASEMENT FOR ENCROACHMENTS. To the extent that
10-35 a unit or common element encroaches on another unit or common
10-36 element, a valid easement for the encroachment exists. The
10-37 easement does not relieve a unit owner of liability in case of the
10-38 owner's wilful misconduct nor relieve a declarant or any other
10-39 person of liability for failure to adhere to the plats and plans.
10-40 Sec. 82.065. USE FOR SALES PURPOSES. The declaration may
10-41 permit a declarant to maintain sales, leasing, or management
10-42 offices and models in units or on common elements in the
10-43 condominium if the declaration specifies the rights of a declarant
10-44 with regard to the number, size, location, and relocation of the
10-45 offices and models. If the declaration fails to expressly permit
10-46 an office or model, a declarant may maintain no more than one unit
10-47 as a model and no more than one unit as an office for sales,
10-48 leasing, and management purposes at any one time. A sales,
10-49 leasing, or management office or model not designated as a unit by
10-50 the declaration is a common element and is subject to the exclusive
10-51 use of a declarant until the declarant ceases to be a unit owner or
10-52 until the declarant no longer uses the office or model for such
10-53 purposes, whichever occurs earlier. A declarant may modify the
10-54 exterior of a sales, leasing, or management office to conform to
10-55 the aesthetic exterior plan of the condominium. A declarant who
10-56 ceases to be a unit owner ceases to have any rights with regard to
10-57 an office or model unless it is removed within a reasonable time
10-58 from the condominium in accordance with a right to remove reserved
10-59 in the declaration. Subject to limitations in the declaration, a
10-60 declarant may maintain signs on the common elements that advertise
10-61 the condominium for sale or lease. This section is subject to
10-62 local ordinances and other state law.
10-63 Sec. 82.066. EASEMENT RIGHTS. Subject to the declaration, a
10-64 declarant has an easement through the common elements as may be
10-65 reasonably necessary for discharging the declarant's obligations or
10-66 exercising special declarant rights whether arising under this
10-67 chapter or reserved by the declaration.
10-68 Sec. 82.067. AMENDMENT OF DECLARATION. (a) Except as
10-69 provided by Subsection (b), a declaration, including the plats and
10-70 plans, may be amended only by vote or agreement of unit owners to
11-1 which at least 67 percent of the votes in the association are
11-2 allocated, or any larger majority the declaration specifies. A
11-3 declaration may specify a smaller number only if all of the units
11-4 are restricted exclusively to nonresidential use. An amendment to
11-5 a declaration may be adopted:
11-6 (1) by written ballot that states the exact wording or
11-7 substance of the amendment and that specifies the date by which a
11-8 ballot must be received to be counted;
11-9 (2) at a meeting of the members of the association
11-10 after written notice of the meeting has been delivered to an owner
11-11 of each unit stating that a purpose of the meeting is to consider
11-12 an amendment to the declaration; or
11-13 (3) by any method permitted by the declaration.
11-14 (b) The amendment procedures of this section do not apply to
11-15 amendments that may be executed by:
11-16 (1) a declarant under Section 82.051(c), 82.059(f), or
11-17 82.060 or Subsection (f);
11-18 (2) the association under Section 82.007, 82.056(d),
11-19 82.058(c), 82.062, or 82.063 or Subsection (f); or
11-20 (3) certain unit owners under Section 82.058(b),
11-21 82.062, 82.063(b), or 82.068(b).
11-22 (c) An action to challenge the validity of an amendment
11-23 adopted by the association under this section must be brought
11-24 before the first anniversary of the date the amendment is recorded.
11-25 (d) To be effective, an amendment to the declaration must be
11-26 recorded in each county in which any portion of the condominium is
11-27 located.
11-28 (e) Except as permitted or required by this chapter, an
11-29 amendment may not create or increase special declarant rights,
11-30 increase the number of units, change the boundaries of a unit,
11-31 alter or destroy a unit or limited common element, change a unit's
11-32 allocated interest, or change the use restrictions on a unit unless
11-33 the amendment is approved by 100 percent of the votes in the
11-34 association. Except as agreed to by the declarant, an amendment
11-35 may not increase or otherwise modify the obligations imposed by a
11-36 declaration on a declarant, or reduce or otherwise modify the
11-37 rights granted by a declaration to a declarant, including special
11-38 declarant rights.
11-39 (f) If permitted by the declaration, the board or the
11-40 declarant, if the declarant owns a unit that has never been
11-41 occupied, may without a vote of the unit owners or approval of the
11-42 association amend the declaration in any manner necessary to meet
11-43 the requirements of the Federal National Mortgage Association, the
11-44 Federal Home Loan Mortgage Corporation, the Federal Housing
11-45 Administration, or the Veterans Administration.
11-46 (g) Amendments to the declaration required by this chapter
11-47 to be recorded by the association must be prepared, executed,
11-48 recorded, and certified by an officer of the association designated
11-49 for that purpose or, in the absence of designation, by the
11-50 president of the association.
11-51 (h) An association may amend the declaration to authorize
11-52 the board:
11-53 (1) to bring an action to evict a tenant of a unit
11-54 owner for the tenant's violation of the declaration, bylaws, or
11-55 rules of the association;
11-56 (2) to bring an action to evict a tenant of a unit
11-57 owner who fails to pay the association for the cost of repairs to
11-58 common elements damaged substantially by the owner's tenant; or
11-59 (3) to collect rents from a tenant of a unit owner who
11-60 is at least 60 days' delinquent in the payment of any amount due to
11-61 the association.
11-62 Sec. 82.068. TERMINATION OF CONDOMINIUM. (a) Unless the
11-63 declaration provides otherwise and except for a taking of all the
11-64 units by condemnation, a condominium may be terminated only by the
11-65 agreement of 100 percent of the votes in the association and each
11-66 holder of a deed of trust or vendor's lien on a unit. The
11-67 declaration may not allow a termination by less than 80 percent of
11-68 the votes in the association if any unit is restricted exclusively
11-69 to residential uses.
11-70 (b) An agreement of unit owners to terminate a condominium
12-1 must be evidenced by the execution or ratification of a termination
12-2 agreement by the requisite number of unit owners. If, pursuant to
12-3 a termination agreement, the real property constituting the
12-4 condominium is to be sold following termination, the termination
12-5 agreement must set forth the terms of the sale. To be effective,
12-6 a termination agreement and all ratifications of the agreement must
12-7 be recorded in each county in which a portion of the condominium is
12-8 located.
12-9 (c) The association, on behalf of the unit owners, may
12-10 contract for the sale of real property in the condominium, but the
12-11 contract is not binding on the unit owners until it is approved
12-12 under Subsections (a) and (b). If the real property constituting
12-13 the condominium is to be sold following termination, on termination
12-14 title to that real property vests in the association as trustee for
12-15 the holders of all interests in the units, and the association has
12-16 all powers necessary and appropriate to effect the sale, including
12-17 the power to convey the interests of nonconsenting owners. Until
12-18 the sale has been concluded and the proceeds distributed, the
12-19 association shall continue to exist and retains the powers it had
12-20 before termination. Proceeds of the sale must be distributed to
12-21 unit owners and lienholders as their interests may appear, in
12-22 proportion to the respective interests of unit owners as provided
12-23 by Subsection (f). Unless the termination agreement specifies
12-24 differently, as long as the association holds title to the real
12-25 property, each unit owner and the owner's successors in interest
12-26 have an exclusive right to occupy the portion of the real property
12-27 that formerly constituted the owner's unit. During that period of
12-28 occupancy a unit owner and the owner's successors in interest
12-29 remain liable for all assessments and other obligations imposed on
12-30 unit owners by this chapter or the declaration.
12-31 (d) If the real property constituting the condominium is not
12-32 to be sold following termination, on termination title to the real
12-33 property vests in the unit owners as tenants in common in
12-34 proportion to their respective interests, and liens on the units
12-35 shift accordingly. While the tenancy in common exists, a unit
12-36 owner and the owner's successors in interest have an exclusive
12-37 right to occupy the portion of the real property that formerly
12-38 constituted the owner's unit.
12-39 (e) Following termination of the condominium, and after
12-40 payment of or provision for the claims of the association's
12-41 creditors, the assets of the association shall be distributed to
12-42 unit owners in proportion to their respective interests. The
12-43 proceeds of sale described by Subsection (c) and held by the
12-44 association as trustee are not assets of the association.
12-45 (f) The interest of a unit owner referred to in Subsections
12-46 (c), (d), and (e) is, except as provided by Subsection (g), the
12-47 fair market value of the owner's unit, limited common elements, and
12-48 common element interest immediately before the termination, as
12-49 determined by one or more independent appraisers selected by the
12-50 association. The decision of the independent appraisers shall be
12-51 distributed to the unit owners and becomes final unless disapproved
12-52 by unit owners of units to which 25 percent of the votes in the
12-53 association are allocated not later than the 30th day after the
12-54 date of distribution. The proportion of a unit owner's interest to
12-55 that of all unit owners is determined by dividing the fair market
12-56 value of the unit owner's unit and common element interest by the
12-57 total fair market values of all the units and common elements.
12-58 (g) If a unit or a limited common element is destroyed to
12-59 the extent that an appraisal of the fair market value before the
12-60 destruction cannot be made, the interest of a unit owner is the
12-61 owner's common element interest immediately before the termination.
12-62 (h) Foreclosure or enforcement of a lien or encumbrance
12-63 against the entire condominium does not of itself terminate the
12-64 condominium, and foreclosure or enforcement of a lien or
12-65 encumbrance against a portion of the condominium does not withdraw
12-66 that portion from the condominium, unless the portion is
12-67 withdrawable real property or unless the mortgage being foreclosed
12-68 was recorded before the date the declaration was recorded and the
12-69 mortgagee did not consent in writing to the declaration.
12-70 (i) By agreement of the same percentage of unit owners that
13-1 is required to terminate the condominium, the unit owners may
13-2 rescind a termination agreement and reinstate the declaration in
13-3 effect immediately before the election to terminate. To be
13-4 effective, the rescission agreement must be in writing, executed by
13-5 the unit owners who desire to rescind, and recorded in each county
13-6 in which any portion of the condominium is located.
13-7 Sec. 82.069. RIGHTS OF SECURED LENDERS. The declaration may
13-8 require that all or a specified number or percentage of the
13-9 mortgagees or beneficiaries of deeds of trust encumbering the units
13-10 approve specified actions of the unit owners or the association as
13-11 a condition to the effectiveness of those actions, but a
13-12 requirement for approval may not operate to:
13-13 (1) deny or delegate control over the general
13-14 administrative affairs of the association by the unit owners or the
13-15 board; or
13-16 (2) prevent the association or the board from:
13-17 (A) commencing, intervening in, or settling any
13-18 litigation or proceeding; or
13-19 (B) receiving and distributing insurance
13-20 proceeds under Section 82.111.
13-21 (Sections 82.070 to 82.100 reserved for expansion
13-22 SUBCHAPTER C. CONDOMINIUM MANAGEMENT
13-23 Sec. 82.101. ORGANIZATION OF UNIT OWNERS' ASSOCIATION. A
13-24 unit owners' association must be organized as a profit or nonprofit
13-25 corporation. The declarant may not convey a unit until the
13-26 secretary of state has issued a certificate of incorporation under
13-27 Article 3.03, Texas Business Corporation Act, or Article 3.03,
13-28 Texas Non-Profit Corporation Act (Article 1396-3.03, Vernon's Texas
13-29 Civil Statutes). The membership of the association at all times
13-30 consists exclusively of all the unit owners or, following
13-31 termination of the condominium, all former unit owners entitled to
13-32 distribution of proceeds, or the owners' heirs, successors, or
13-33 assigns.
13-34 Sec. 82.102. POWERS OF UNIT OWNERS' ASSOCIATION.
13-35 (a) Unless otherwise provided by the declaration, the association,
13-36 acting through its board, may:
13-37 (1) adopt and amend bylaws;
13-38 (2) adopt and amend budgets for revenues,
13-39 expenditures, and reserves, and collect assessments for common
13-40 expenses from unit owners;
13-41 (3) hire and terminate managing agents and other
13-42 employees, agents, and independent contractors;
13-43 (4) institute, defend, intervene in, settle, or
13-44 compromise litigation or administrative proceedings in its own name
13-45 on behalf of itself or two or more unit owners on matters affecting
13-46 the condominium;
13-47 (5) make contracts and incur liabilities relating to
13-48 the operation of the condominium;
13-49 (6) regulate the use, maintenance, repair,
13-50 replacement, modification, and appearance of the condominium;
13-51 (7) adopt and amend rules regulating the use,
13-52 occupancy, leasing or sale, maintenance, repair, modification, and
13-53 appearance of units and common elements, to the extent the
13-54 regulated actions affect common elements or other units;
13-55 (8) cause additional improvements to be made as a part
13-56 of the common elements;
13-57 (9) acquire, hold, encumber, and convey in its own
13-58 name any right, title, or interest to real or personal property,
13-59 except common elements of the condominium;
13-60 (10) grant easements, leases, licenses, and
13-61 concessions through or over the common elements;
13-62 (11) impose and receive payments, fees, or charges for
13-63 the use, rental, or operation of the common elements and for
13-64 services provided to unit owners;
13-65 (12) impose interest and late charges for late
13-66 payments of assessments, returned check charges, and, if notice and
13-67 an opportunity to be heard are given, reasonable fines for
13-68 violations of the declaration, bylaws, and rules of the
13-69 association;
13-70 (13) adopt and amend rules regulating the collection
14-1 of delinquent assessments and the application of payments;
14-2 (14) adopt and amend rules regulating the termination
14-3 of utility service to a unit, the owner of which is delinquent in
14-4 the payment of an assessment that is used, in whole or in part, to
14-5 pay the cost of that utility;
14-6 (15) impose reasonable charges for preparing,
14-7 recording, or copying declaration amendments, resale certificates,
14-8 or statements of unpaid assessments;
14-9 (16) enter a unit for bona fide emergency purposes
14-10 when conditions present an imminent risk of harm or damage to the
14-11 common elements, another unit, or the occupants;
14-12 (17) assign its right to future income, including the
14-13 right to receive common expense assessments, but only to the extent
14-14 the declaration so provides;
14-15 (18) suspend the voting privileges of or the use of
14-16 certain general common elements by an owner delinquent for more
14-17 than 30 days in the payment of assessments;
14-18 (19) purchase insurance and fidelity bonds it
14-19 considers appropriate or necessary;
14-20 (20) exercise any other powers conferred by the
14-21 declaration or bylaws;
14-22 (21) exercise any other powers that may be exercised
14-23 in this state by a corporation of the same type as the association;
14-24 and
14-25 (22) exercise any other powers necessary and proper
14-26 for the government and operation of the association.
14-27 (b) The declaration may not impose limitations on the power
14-28 of the association to deal with the declarant that are more
14-29 restrictive than the limitations imposed on the power of the
14-30 association to deal with other persons.
14-31 (c) To be enforceable, a bylaw or rule of the association
14-32 must not be arbitrary or capricious.
14-33 (d) Before an association may charge the unit owner for
14-34 property damage for which the unit owner is liable or levy a fine
14-35 for violation of the declaration, bylaws, or rules, the association
14-36 shall give to the unit owner a written notice that:
14-37 (1) describes the violation or property damage and
14-38 states the amount of the proposed fine or damage charge;
14-39 (2) states that not later than the 30th day after the
14-40 date of the notice, the unit owner may request a hearing before the
14-41 board to contest the fine or damage charge; and
14-42 (3) allows the unit owner a reasonable time, by a
14-43 specified date, to cure the violation and avoid the fine unless the
14-44 unit owner was given notice and a reasonable opportunity to cure a
14-45 similar violation within the preceding 12 months.
14-46 (e) The association may give a copy of the notice required
14-47 by Subsection (d) to an occupant of the unit. The association must
14-48 give notice of a levied fine or damage charge to the unit owner not
14-49 later than the 30th day after the date of levy.
14-50 Sec. 82.103. BOARD MEMBERS AND OFFICERS. (a) Except as
14-51 provided by the declaration, bylaws, or this chapter, the board
14-52 shall act in all instances on behalf of the association if in the
14-53 good-faith judgment of the board the action is reasonable. Each
14-54 officer or member of the board is liable as a fiduciary of the unit
14-55 owners for the officer's or member's acts or omissions. All acts
14-56 of the association must be by and through the board unless
14-57 otherwise provided by the declaration or bylaws or by law.
14-58 (b) The board may not act on behalf of the association to
14-59 amend the declaration except as permitted by this chapter, to
14-60 terminate the condominium, to elect members of the board, or to
14-61 determine the qualifications, powers and duties, or terms of office
14-62 of board members. The board may fill a vacancy in its membership
14-63 for the unexpired portion of a term.
14-64 (c) Subject to Subsection (d), the declaration may provide
14-65 for a period of declarant control of the association during which a
14-66 declarant, or persons designated by the declarant, may appoint and
14-67 remove the officers and members of the board. Regardless of the
14-68 period provided by the declaration, a period of declarant control
14-69 terminates not later than the 120th day after conveyance of 75
14-70 percent of the units that may be created to unit owners other than
15-1 a declarant. Transfer of special declarant rights does not
15-2 terminate the period of declarant control. A declarant may
15-3 voluntarily surrender the right to appoint and remove officers and
15-4 members of the board before termination of the period, but in that
15-5 event the declarant may require, for the duration of the period
15-6 that the declarant would otherwise control, that specified actions
15-7 of the association or board be approved by the declarant before
15-8 they become effective.
15-9 (d) Not later than the 120th day after conveyance of 50
15-10 percent of the units that may be created to unit owners other than
15-11 a declarant, not less than one-third of the members of the board
15-12 must be elected by unit owners other than the declarant.
15-13 (e) Not later than the termination of a period of declarant
15-14 control, the unit owners shall elect a board of at least three
15-15 members who need not be unit owners. The board shall elect the
15-16 officers before the 31st day after the date declarant control
15-17 terminates. The persons elected shall take office on election.
15-18 (f) An officer or director of the association is not liable
15-19 to the association or any unit owner for monetary damages for an
15-20 act or omission occurring in the person's capacity as an officer or
15-21 director unless:
15-22 (1) the officer or director breached a fiduciary duty
15-23 to the association or a unit owner;
15-24 (2) the officer or director received an improper
15-25 benefit; or
15-26 (3) the act or omission was in bad faith, involved
15-27 intentional misconduct, or was one for which liability is expressly
15-28 provided by statute.
15-29 (g) Subsection (f) does not diminish a limitation of
15-30 liability provided an officer or director of the association by the
15-31 declaration, bylaws, articles of incorporation of the association,
15-32 or other laws.
15-33 Sec. 82.104. TRANSFER OF SPECIAL DECLARANT RIGHTS.
15-34 (a) Special declarant rights created or reserved under this
15-35 chapter may not be transferred except by an instrument evidencing
15-36 the transfer recorded in each county in which any portion of the
15-37 condominium is located. The instrument is not effective unless
15-38 executed by the transferee.
15-39 (b) On transfer of any special declarant right, a transferor
15-40 is not relieved of an obligation or liability arising before the
15-41 transfer. A transferor is not liable for an act or omission or a
15-42 breach of an obligation arising from the exercise of a special
15-43 declarant right by a successor declarant who is not an affiliate of
15-44 the transferor.
15-45 (c) Unless otherwise provided by a mortgage instrument or
15-46 deed of trust, in case of foreclosure of a mortgage, tax sale,
15-47 judicial sale, sale by a trustee under a deed of trust, or sale
15-48 under Bankruptcy Code or receivership proceedings, of a unit owned
15-49 by a declarant or of real property in a condominium subject to
15-50 development rights, a person acquiring title to all the real
15-51 property being foreclosed or sold may request to succeed to all
15-52 special declarant rights or only to rights reserved by the
15-53 declaration to maintain models, offices, and signs. The judgment
15-54 or instrument conveying title may provide for transfer of only the
15-55 special declarant rights requested.
15-56 (d) On foreclosure, tax sale, judicial sale, sale by a
15-57 trustee under a deed of trust, or sale under Bankruptcy Code or
15-58 receivership proceedings of all units and other real property in a
15-59 condominium owned by a declarant:
15-60 (1) the declarant ceases to have any special declarant
15-61 rights; and
15-62 (2) the period of declarant control terminates unless
15-63 the judgment or instrument conveying title provides for transfer of
15-64 all special declarant rights held by that declarant to a successor
15-65 declarant.
15-66 (e) The liabilities and obligations of a person who succeeds
15-67 to special declarant rights are as follows:
15-68 (1) a successor to a special declarant right who is an
15-69 affiliate of a declarant is subject to all obligations and
15-70 liabilities imposed on the transferor by this chapter or by the
16-1 declaration;
16-2 (2) a successor to a special declarant right, other
16-3 than a successor described by Subdivision (3) or (4), who is not an
16-4 affiliate of a declarant, is subject to all obligations and
16-5 liabilities imposed on the transferor by this chapter or by the
16-6 declaration;
16-7 (3) a successor to only a right reserved by the
16-8 declaration to maintain models, offices, and signs, who is not an
16-9 affiliate of a declarant, may not exercise any other special
16-10 declarant right, and is not subject to any liability or obligation
16-11 as a declarant, except the obligation to provide a condominium
16-12 information statement and any liability arising as a result; and
16-13 (4) a successor to all special declarant rights held
16-14 by the successor's transferor who is not an affiliate of that
16-15 declarant and who succeeded to those rights pursuant to a deed in
16-16 lieu of foreclosure or a judgment or instrument conveying title to
16-17 units under Subsection (c) may declare the person's intention in a
16-18 recorded instrument to hold those rights solely for transfer to
16-19 another person; thereafter, until all special declarant rights are
16-20 transferred to a person acquiring title to any unit owned by the
16-21 successor, or until an instrument permitting exercise of all those
16-22 rights is recorded, the successor may not exercise any of those
16-23 rights other than any right held by the successor's transferor to
16-24 control the board as provided by Section 82.103(c) for the duration
16-25 of the period of declarant control, and an attempt to exercise
16-26 those rights is void; so long as a successor declarant may not
16-27 exercise special declarant rights under this subdivision, the
16-28 successor is not subject to any liability or obligation as a
16-29 declarant other than liability for acts and omissions under Section
16-30 82.103(a).
16-31 (f) This section does not subject a successor to a special
16-32 declarant right to any claims against or other obligations of a
16-33 transferor declarant, other than claims and obligations arising
16-34 under this chapter or the declaration.
16-35 Sec. 82.105. TERMINATION OF CONTRACTS AND LEASES OF
16-36 DECLARANT. An association in a residential or recreational
16-37 condominium may terminate, without penalty, contracts or leases
16-38 between the association and a declarant or an affiliate of a
16-39 declarant if:
16-40 (1) the contract is entered into by the association
16-41 while controlled by the declarant;
16-42 (2) the association terminates the contract or lease
16-43 before the first anniversary of the date a board elected by the
16-44 unit owners takes office; and
16-45 (3) the association gives at least 90 days' notice of
16-46 its intent to terminate the contract or lease to the other party.
16-47 Sec. 82.106. BYLAWS. (a) The administration and operation
16-48 of the condominium are governed by the bylaws, which must provide
16-49 for:
16-50 (1) the number of members on the board and the titles
16-51 of the officers of the association;
16-52 (2) election by the board of a president, treasurer,
16-53 secretary, and any other officers the bylaws specify;
16-54 (3) the qualifications, powers and duties, terms of
16-55 office, and the manner of electing and removing a board member or
16-56 officer and filling vacancies;
16-57 (4) the powers, if any, that the board or an officer
16-58 may delegate to other persons or to a managing agent;
16-59 (5) the designation of officers who are authorized to
16-60 prepare, execute, certify, and record amendments to the declaration
16-61 on behalf of the association;
16-62 (6) the method of amending the bylaws; and
16-63 (7) the manner of notice of meetings of the
16-64 association.
16-65 (b) Subject to the declaration, the bylaws may provide for
16-66 other matters the association considers desirable, necessary, or
16-67 appropriate.
16-68 Sec. 82.107. UPKEEP OF CONDOMINIUM. (a) Except as provided
16-69 by the declaration or Subsections (b) and (c), the association is
16-70 responsible for maintenance, repair, and replacement of the common
17-1 elements, and each unit owner is responsible for maintenance,
17-2 repair, and replacement of the owner's unit. Each unit owner shall
17-3 afford to the association and the other unit owners, and to their
17-4 agents or employees, access through the owner's unit reasonably
17-5 necessary for those purposes. If damage is inflicted on the common
17-6 elements or on any unit through which access is taken, the unit
17-7 owner responsible for the damage, or the association if it is
17-8 responsible, is liable for the prompt repair of the damage.
17-9 (b) Except as provided by the declaration, each unit owner
17-10 is responsible for the cost of maintenance, repair, and replacement
17-11 of any utility installation or equipment serving only the owner's
17-12 unit, without regard to whether the installation or equipment is
17-13 located wholly or partially outside the designated boundaries of
17-14 the unit. For purposes of this subsection, utility installations
17-15 and equipment include electricity, water, sewage, gas, water
17-16 heaters, heating and air conditioning equipment, and television
17-17 antennas.
17-18 (c) Except as provided by the declaration, each unit owner
17-19 is responsible for the cost of maintenance, repair, and replacement
17-20 of windows and doors serving only the owner's unit.
17-21 (d) Unless otherwise provided by the declaration, the
17-22 association may enter a unit, after giving notice to the owner and
17-23 occupant of the unit, to:
17-24 (1) prevent or terminate waste of water purchased by
17-25 the association as a common expense; or
17-26 (2) perform maintenance and repairs of the condominium
17-27 that, if not performed, may result in increased damage by water to
17-28 components of the condominium that the association maintains.
17-29 Sec. 82.108. MEETINGS. (a) Meetings of the association
17-30 must be held at least once each year. Unless the declaration
17-31 provides otherwise, special meetings of the association may be
17-32 called by the president, a majority of the board, or unit owners
17-33 having at least 20 percent of the votes in the association. Notice
17-34 of a meeting shall be given in accordance with the bylaws.
17-35 (b) Meetings of the association and board must be open to
17-36 unit owners, subject to the right of the board to adjourn a meeting
17-37 of the board and reconvene in closed executive session to consider
17-38 actions involving personnel, pending litigation, contract
17-39 negotiations, enforcement actions, matters involving the invasion
17-40 of privacy of individual unit owners, or matters that are to remain
17-41 confidential by request of the affected parties and agreement of
17-42 the board. The general nature of any business to be considered in
17-43 executive session must first be announced at the open meeting.
17-44 (c) Unless the declaration, bylaws, or articles of
17-45 incorporation of the association provide otherwise:
17-46 (1) a meeting of the board may be held by any method
17-47 of communication, including electronic and telephonic, by which
17-48 each director may hear and be heard by every other director; and
17-49 (2) in lieu of a meeting, the board may act by
17-50 unanimous written consents of directors, to be filed with the
17-51 minutes of board meetings.
17-52 Sec. 82.109. QUORUMS. (a) Unless the bylaws provide
17-53 otherwise, a quorum is present throughout any meeting of the
17-54 association if persons entitled to cast at least 20 percent of the
17-55 votes that may be cast for election of the board are present in
17-56 person or by proxy at the beginning of the meeting. The bylaws may
17-57 not reduce the standard for a quorum to less than 10 percent.
17-58 (b) Unless the bylaws specify a larger percentage, a quorum
17-59 is present throughout a meeting of the board if persons entitled to
17-60 cast at least 50 percent of the votes on the board are present at
17-61 the beginning of the meeting.
17-62 Sec. 82.110. VOTING AND PROXIES. (a) If only one of the
17-63 multiple owners of a unit is present at a meeting of the
17-64 association, that person may cast the vote or votes allocated to
17-65 that unit. If more than one of the multiple owners is present, the
17-66 vote or votes allocated to that unit may be cast only in accordance
17-67 with the owners' unanimous agreement unless the declaration
17-68 provides otherwise. Multiple owners are in unanimous agreement if
17-69 one of the multiple owners casts the votes allocated to a unit and
17-70 none of the other owners makes prompt protest to the person
18-1 presiding over the meeting.
18-2 (b) Votes allocated to a unit may be cast under a written
18-3 proxy duly executed by a unit owner. If a unit is owned by more
18-4 than one person, each owner of the unit may vote or register
18-5 protest to the casting of votes by the other owners of the unit
18-6 through a proxy duly executed by the unit owner. A unit owner may
18-7 not revoke a proxy given under this section except by giving actual
18-8 notice of revocation to the person presiding over a meeting of the
18-9 association. A proxy is void if it is not dated or if it purports
18-10 to be revocable without notice. A proxy terminates one year after
18-11 its date unless it specifies a shorter or longer time.
18-12 (c) Cumulative voting is not allowed.
18-13 Sec. 82.111. INSURANCE. (a) Beginning not later than the
18-14 time of the first conveyance of a unit to a person other than a
18-15 declarant, the association shall maintain, to the extent reasonably
18-16 available:
18-17 (1) property insurance on the insurable common
18-18 elements insuring against all risks of direct physical loss
18-19 commonly insured against, including fire and extended coverage, in
18-20 a total amount of at least 80 percent of the replacement cost or
18-21 actual cash value of the insured property as of the effective date
18-22 and at each renewal date of the policy; and
18-23 (2) commercial general liability insurance, including
18-24 medical payments insurance, in an amount determined by the board
18-25 but not less than any amount specified by the declaration covering
18-26 all occurrences commonly insured against for death, bodily injury,
18-27 and property damage arising out of or in connection with the use,
18-28 ownership, or maintenance of the common elements.
18-29 (b) If a building contains units having horizontal
18-30 boundaries described in the declaration, the insurance maintained
18-31 under Subsection (a)(1), to the extent reasonably available, must
18-32 include the units, but need not include improvements and
18-33 betterments installed by unit owners.
18-34 (c) If the insurance described by Subsections (a) and (b) is
18-35 not reasonably available, the association shall cause notice of
18-36 that fact to be delivered or mailed to all unit owners and
18-37 lienholders. The declaration may require the association to carry
18-38 any other insurance, and the association in any event may carry any
18-39 other insurance the board considers appropriate to protect the
18-40 condominium, the association, or the unit owners. This section
18-41 does not affect the right of a holder of a mortgage on a unit to
18-42 require a unit owner to acquire insurance in addition to that
18-43 provided by the association.
18-44 (d) Insurance policies carried under Subsection (a) must
18-45 provide that:
18-46 (1) each unit owner is an insured person under the
18-47 policy with respect to liability arising out of the person's
18-48 ownership of an undivided interest in the common elements or
18-49 membership in the association;
18-50 (2) the insurer waives its right to subrogation under
18-51 the policy against a unit owner;
18-52 (3) no action or omission of a unit owner, unless
18-53 within the scope of the unit owner's authority on behalf of the
18-54 association, will void the policy or be a condition to recovery
18-55 under the policy; and
18-56 (4) if, at the time of a loss under the policy, there
18-57 is other insurance in the name of a unit owner covering the same
18-58 property covered by the policy, the association's policy provides
18-59 primary insurance.
18-60 (e) A claim for any loss covered by the policy under
18-61 Subsection (a)(1) must be submitted by and adjusted with the
18-62 association. The insurance proceeds for that loss shall be payable
18-63 to an insurance trustee designated by the association for that
18-64 purpose, if the designation of an insurance trustee is considered
18-65 by the board to be necessary or desirable, or otherwise to the
18-66 association, and not to any unit owner or lienholder.
18-67 (f) The insurance trustee or the association shall hold
18-68 insurance proceeds in trust for unit owners and lienholders as
18-69 their interests may appear. Subject to Subsection (i), the
18-70 proceeds paid under a policy must be disbursed first for the repair
19-1 or restoration of the damaged common elements and units, and unit
19-2 owners and lienholders are not entitled to receive payment of any
19-3 portion of the proceeds unless there is a surplus of proceeds after
19-4 the property has been completely repaired or restored, or the
19-5 condominium is terminated.
19-6 (g) An insurance policy issued to the association does not
19-7 prevent a unit owner from obtaining insurance for the owner's own
19-8 benefit.
19-9 (h) The insurer issuing the policy may not cancel or refuse
19-10 to renew it less than 30 days after written notice of the proposed
19-11 cancellation or nonrenewal has been mailed to the association.
19-12 (i) Any portion of the condominium for which insurance is
19-13 required that is damaged or destroyed shall be promptly repaired or
19-14 replaced by the association unless the condominium is terminated,
19-15 repair or replacement would be illegal under any state or local
19-16 health or safety statute or ordinance, or at least 80 percent of
19-17 the unit owners, including each owner of a unit or assigned limited
19-18 common element that will not be rebuilt or repaired, vote to not
19-19 rebuild. A vote to not rebuild does not increase an insurer's
19-20 liability to loss payment obligation under a policy, and the vote
19-21 does not cause a presumption of total loss. The cost of repair or
19-22 replacement in excess of the insurance proceeds and reserves is a
19-23 common expense. If the entire condominium is not repaired or
19-24 replaced, any insurance proceeds attributable to the damaged common
19-25 elements shall be used to restore the damaged area to a condition
19-26 compatible with the remainder of the condominium, the insurance
19-27 proceeds attributable to units and limited common elements that are
19-28 not rebuilt shall be distributed to the owners of those units and
19-29 the owners of the units to which those limited common elements were
19-30 assigned, or to their mortgagees, as their interests may appear,
19-31 and the remainder of the proceeds shall be distributed to all the
19-32 unit owners as their interests may appear. If the unit owners vote
19-33 to not rebuild any unit, that unit's allocated interests shall be
19-34 automatically reallocated on the vote as if the unit had been
19-35 condemned, and the association shall prepare, execute, and record
19-36 an amendment to the declaration reflecting the reallocation.
19-37 Section 82.068 governs the distribution of insurance proceeds if
19-38 the condominium is terminated.
19-39 (j) The provisions of this section may be varied or waived
19-40 if all the units in a condominium are restricted to nonresidential
19-41 use.
19-42 Sec. 82.112. ASSESSMENTS FOR COMMON EXPENSES. (a) Until an
19-43 association makes a common expense assessment, a declarant shall
19-44 pay all the expenses of the condominium as the expenses accrue.
19-45 After an initial assessment by an association, assessments must be
19-46 made at least annually and must be based on a budget adopted at
19-47 least annually by the association. The association's reserves and
19-48 the unit owners' working capital contributions may not be used to
19-49 pay operational expenses until the declarant control terminates.
19-50 (b) From the date of the initial assessment until declarant
19-51 control terminates, or three years from a declarant's first
19-52 conveyance of a unit, whichever is earlier, the declarant shall
19-53 periodically pay to the association:
19-54 (1) an amount equal to all operational expenses of the
19-55 association, less the operational expense portion of the
19-56 assessments paid by unit owners other than declarant; or
19-57 (2) the common expense liability allocated to each
19-58 unit owned by the declarant.
19-59 (c) Common expenses shall be assessed against all units
19-60 conveyed, rented, or used as models or offices by the declarant and
19-61 against all units owned by a declarant after termination of a
19-62 declarant's control or three years from a declarant's first
19-63 conveyance of a unit, whichever is earlier, in accordance with the
19-64 common expense liability allocated to each unit. A past due
19-65 assessment or installment of an assessment may bear interest at a
19-66 lawful rate established by the association.
19-67 (d) Except as provided by the declaration and Section
19-68 82.107, a common expense for the maintenance, repair, or
19-69 replacement of a limited common element shall be assessed against
19-70 all the units as if it were for a general common element.
20-1 (e) If common expense liabilities are reallocated, common
20-2 expense assessments and an assessment installment not yet due shall
20-3 be recomputed in accordance with the reallocated common expense
20-4 liabilities.
20-5 (f) A declaration may allow the accumulation of reserve
20-6 funds for an unspecified period to provide for any anticipated
20-7 expense of the condominium.
20-8 (g) This section does not prevent a declarant from
20-9 collecting from a purchaser at closing the prorated amount of any
20-10 expenses, such as insurance or taxes, that the declarant has
20-11 prepaid to the association or directly to others on behalf of the
20-12 unit that is being purchased.
20-13 Sec. 82.113. ASSOCIATION'S LIEN FOR ASSESSMENTS. (a) An
20-14 assessment levied by the association against a unit or unit owner
20-15 is a personal obligation of the unit owner and is secured by a
20-16 continuing lien on the unit and on rents and insurance proceeds
20-17 received by the unit owner and relating to the owner's unit. In
20-18 this section, "assessments" means regular and special assessments,
20-19 dues, fees, charges, interest, late fees, fines, collection costs,
20-20 attorney's fees, and any other amount due to the association by the
20-21 unit owner or levied against the unit by the association, all of
20-22 which are enforceable as assessments under this section unless the
20-23 declaration provides otherwise.
20-24 (b) The association's lien for assessments has priority over
20-25 any other lien except:
20-26 (1) a lien for real property taxes and other
20-27 governmental assessments or charges against the unit unless
20-28 otherwise provided by Section 32.05, Tax Code;
20-29 (2) a lien or encumbrance recorded before the
20-30 declaration is recorded;
20-31 (3) a first vendor's lien or first deed of trust lien
20-32 recorded before the date on which the assessment sought to be
20-33 enforced becomes delinquent under the declaration, bylaws, or
20-34 rules; and
20-35 (4) unless the declaration provides otherwise, a lien
20-36 for construction of improvements to the unit or an assignment of
20-37 the right to insurance proceeds on the unit if the lien or
20-38 assignment is recorded or duly perfected before the date on which
20-39 the assessment sought to be enforced becomes delinquent under the
20-40 declaration, bylaws, or rules.
20-41 (c) The association's lien for assessments is created by
20-42 recordation of the declaration, which constitutes record notice and
20-43 perfection of the lien. Unless the declaration provides otherwise,
20-44 no other recordation of a lien or notice of lien is required.
20-45 (d) By acquiring a unit, a unit owner grants to the
20-46 association a power of sale in connection with the association's
20-47 lien. By written resolution, a board may appoint, from time to
20-48 time, an officer, agent, trustee, or attorney of the association to
20-49 exercise the power of sale on behalf of the association. Except as
20-50 provided by the declaration, an association shall exercise its
20-51 power of sale pursuant to Section 51.002.
20-52 (e) The association has the right to foreclose its lien
20-53 judicially or by nonjudicial foreclosure pursuant to the power of
20-54 sale created by this chapter or the declaration, except that the
20-55 association may not foreclose a lien for assessments consisting
20-56 solely of fines. Costs of foreclosure may be added to the amount
20-57 owed by the unit owner to the association. A unit owner may not
20-58 petition a court to set aside a sale solely because the purchase
20-59 price at the foreclosure sale was insufficient to fully satisfy the
20-60 owner's debt.
20-61 (f) The association may bid for and purchase the unit at
20-62 foreclosure sale as a common expense. The association may own,
20-63 lease, encumber, exchange, sell, or convey a unit.
20-64 (g) The owner of a unit used for residential purposes and
20-65 purchased by an association at a foreclosure sale of the
20-66 association's lien for assessments may redeem the unit not later
20-67 than the 90th day after the date of the foreclosure sale. To
20-68 redeem the unit, the owner must pay to the association all amounts
20-69 due the association at the time of the foreclosure sale, interest
20-70 from the date of foreclosure sale to the date of redemption at the
21-1 rate provided by the declaration for delinquent assessments,
21-2 reasonable attorney's fees and costs incurred by the association in
21-3 foreclosing the lien, any assessment levied against the unit by the
21-4 association after the foreclosure sale, and any reasonable cost
21-5 incurred by the association as owner of the unit, including costs
21-6 of maintenance and leasing. On redemption, the association shall
21-7 execute a deed to the redeeming unit owner. The exercise of the
21-8 right of redemption is not effective against a subsequent purchaser
21-9 or lender for value without notice of the redemption after the
21-10 redemption period expires unless the redeeming unit owner records
21-11 the deed from the association or an affidavit stating that the
21-12 owner has exercised the right of redemption. A unit that has been
21-13 redeemed remains subject to all liens and encumbrances on the unit
21-14 before foreclosure. All rents and other income collected from the
21-15 unit by the association from the date of foreclosure sale to the
21-16 date of redemption belong to the association, but the rents and
21-17 income shall be credited against the redemption amount. An
21-18 association purchasing a unit at a sale foreclosing its lien may
21-19 not transfer ownership of the unit during the redemption period to
21-20 a person other than a redeeming owner.
21-21 (h) If a unit owner defaults in the owner's monetary
21-22 obligations to the association, the association may notify other
21-23 lien holders of the default and the association's intent to
21-24 foreclose its lien. The association shall notify any holder of a
21-25 recorded lien or duly perfected mechanic's lien against a unit who
21-26 has given the association a written request for notification of the
21-27 unit owner's monetary default or the association's intent to
21-28 foreclose its lien.
21-29 (i) This section does not prohibit the association from
21-30 taking a deed in lieu of foreclosure or from filing suit to recover
21-31 a money judgment for sums that may be secured by the lien.
21-32 (j) At any time before a nonjudicial foreclosure sale, a
21-33 unit owner may avoid foreclosure by paying all amounts due the
21-34 association.
21-35 (k) If, on January 1, 1994, a unit is the homestead of the
21-36 unit owner and is subject to a declaration that does not contain a
21-37 valid assessment lien against the unit, the lien provided by this
21-38 section does not attach against the unit until the unit ceases to
21-39 be the homestead of the person owning it on January 1, 1994.
21-40 (l) Foreclosure of a tax lien attaching against a unit under
21-41 Chapter 32, Tax Code, does not discharge the association's lien for
21-42 assessments under this section or under a declaration for amounts
21-43 becoming due to the association after the date of foreclosure of
21-44 the tax lien.
21-45 (m) If a unit owner is delinquent in payment of assessments
21-46 to an association, at the request of the association a holder of a
21-47 recorded lien against the unit may provide the association with
21-48 information about the unit owner's debt secured by the holder's
21-49 lien against the unit and other relevant information. At the
21-50 request of a lien holder, the association may furnish the lien
21-51 holder with information about the condominium and the unit owner's
21-52 obligations to the association.
21-53 Sec. 82.114. ASSOCIATION RECORDS. (a) The association
21-54 shall keep:
21-55 (1) detailed financial records that comply with
21-56 generally accepted accounting principles and that are sufficiently
21-57 detailed to enable the association to prepare a resale certificate
21-58 under Section 82.157;
21-59 (2) the plans and specifications used to construct the
21-60 condominium except for buildings originally constructed before
21-61 January 1, 1994;
21-62 (3) the condominium information statement prepared
21-63 under Section 82.152 and any amendments;
21-64 (4) the name and mailing address of each unit owner;
21-65 (5) voting records, proxies, and correspondence
21-66 relating to amendments to the declaration; and
21-67 (6) minutes of meetings of the association and board.
21-68 (b) All financial and other records of the association shall
21-69 be reasonably available at its registered office or its principal
21-70 office in this state for examination by a unit owner and the
22-1 owner's agents. An attorney's files and records relating to the
22-2 association are not records of the association and are not subject
22-3 to inspection by unit owners or production in a legal proceeding.
22-4 (c) The association shall, as a common expense, annually
22-5 obtain an independent audit of the records. Copies of the audit
22-6 must be made available to the unit owners. An audit required by
22-7 this subsection shall be performed by a certified public accountant
22-8 if required by the bylaws or a vote of the board of directors or a
22-9 majority vote of the members of the association voting at a meeting
22-10 of the association.
22-11 (d) A declarant shall furnish copies to the association of
22-12 the information required by Subsection (a) on the date the first
22-13 unit is sold.
22-14 (e) Not later than the 30th day after the date of acquiring
22-15 an interest in a unit, the unit owner shall provide the association
22-16 with:
22-17 (1) the unit owner's mailing address, telephone
22-18 number, and driver's license number, if any;
22-19 (2) the name and address of the holder of any lien
22-20 against the unit, and any loan number;
22-21 (3) the name and telephone number of any person
22-22 occupying the unit other than the unit owner; and
22-23 (4) the name, address, and telephone number of any
22-24 person managing the unit as agent of the unit owner.
22-25 (f) A unit owner shall notify the association not later than
22-26 the 30th day after the date the owner has notice of a change in any
22-27 information required by Subsection (e), and shall provide the
22-28 information on request by the association from time to time.
22-29 Sec. 82.115. ASSOCIATION AS TRUSTEE. A third person dealing
22-30 with an association in the association's capacity as a trustee may
22-31 assume without inquiry the existence of trust powers and their
22-32 proper exercise by the association. A third person who lacks
22-33 actual knowledge that an association is exceeding or improperly
22-34 exercising its powers is fully protected in dealing with the
22-35 association as if the association possessed and properly exercised
22-36 the powers it purports to exercise. A third person is not bound to
22-37 ensure the proper application of trust assets paid or delivered to
22-38 an association in its capacity as trustee.
22-39 Sec. 82.116. MANAGEMENT CERTIFICATE. (a) An association
22-40 shall record in each county in which any portion of the condominium
22-41 is located a certificate, signed and acknowledged by an officer of
22-42 the association, stating:
22-43 (1) the name of the condominium;
22-44 (2) the name of the association;
22-45 (3) the location of the condominium;
22-46 (4) the recording data for the declaration;
22-47 (5) the mailing address of the association, or the
22-48 name and mailing address of the person or entity managing the
22-49 association; and
22-50 (6) other information the association considers
22-51 appropriate.
22-52 (b) The association shall record a management certificate
22-53 not later than the 30th day after the date the association has
22-54 notice of a change in any information in a recorded certificate
22-55 required by Subdivisions (a)(1)-(5).
22-56 (c) The association and its officers, directors, employees,
22-57 and agents are not subject to liability to any person for delay or
22-58 failure to record a management certificate, unless the delay or
22-59 failure is wilful or caused by gross negligence.
22-60 Sec. 82.117. OBLIGATIONS OF UNIT OWNERS. Without limiting
22-61 the obligations of the unit owners and except as provided by the
22-62 declaration, bylaws, rules of the association, or this chapter, the
22-63 unit owner:
22-64 (1) shall pay assessments, interest, and other charges
22-65 properly levied by the association against the owner or the owner's
22-66 unit, and shall pay regular periodic assessments without demand by
22-67 the association;
22-68 (2) shall comply with the declaration, bylaws, and
22-69 rules of the association, including any amendments;
22-70 (3) shall pay for damage to the condominium caused by
23-1 the negligence or wilful misconduct of the owner, an occupant of
23-2 the owner's unit, or the owner or occupant's family, guests,
23-3 employees, contractors, agents, or invitees; and
23-4 (4) is liable to the association for violations of the
23-5 declaration, bylaws, or rules of the association, including any
23-6 amendments, by the owner, an occupant of the owner's unit, or the
23-7 owner or occupant's family, guests, employees, agents, or invitees,
23-8 and for costs incurred by the association to obtain compliance,
23-9 including attorney's fees whether or not suit is filed.
23-10 (Sections 82.118 to 82.150 reserved for expansion
23-11 SUBCHAPTER D. PROTECTION OF PURCHASERS
23-12 Sec. 82.151. APPLICABILITY. (a) This subchapter applies to
23-13 each unit subject to this chapter, except as provided by Subsection
23-14 (b) or as modified or waived by the agreement of a purchaser of a
23-15 unit in a condominium in which all units are restricted to
23-16 nonresidential use.
23-17 (b) A condominium information statement or resale
23-18 certificate need not be prepared or delivered in the case of:
23-19 (1) a gratuitous disposition of a unit;
23-20 (2) a disposition pursuant to court order;
23-21 (3) a disposition by a government or governmental
23-22 agency;
23-23 (4) a disposition by foreclosure or deed in lieu of
23-24 foreclosure; or
23-25 (5) a disposition that may be canceled at any time,
23-26 for any reason, and without penalty.
23-27 Sec. 82.152. LIABILITY FOR CONDOMINIUM INFORMATION
23-28 STATEMENT. (a) Except as provided by Subsection (b), a declarant
23-29 shall prepare a condominium information statement before offering
23-30 to the public any interest in a unit.
23-31 (b) A declarant may transfer responsibility for preparation
23-32 of all or a part of the condominium information statement to a
23-33 successor declarant or to a person in the business of selling real
23-34 property who intends to offer units in the condominium for the
23-35 person's own account. On such transfer, the transferor shall
23-36 provide the transferee with any information necessary to enable the
23-37 transferee to prepare a condominium information statement.
23-38 (c) A declarant or other person in the business of selling
23-39 real property who offers a unit for the person's own account to a
23-40 purchaser shall provide a purchaser of a unit with a copy of the
23-41 condominium information statement, as amended, before conveyance of
23-42 the unit or the date of a contract of sale, whichever is earlier.
23-43 (d) The person preparing all or part of the condominium
23-44 information statement is liable for any false or misleading
23-45 statement or for any omission of material fact in the portion of
23-46 the condominium information statement that the person prepared. If
23-47 a declarant did not prepare any part of a condominium information
23-48 statement that the declarant delivers, the declarant is not liable
23-49 for any false or misleading statement or any omission of material
23-50 fact unless the declarant actually knew or should have known of the
23-51 statement or omission.
23-52 Sec. 82.153. CONDOMINIUM INFORMATION STATEMENTS IN GENERAL.
23-53 (a) A condominium information statement must contain or accurately
23-54 disclose:
23-55 (1) the name and principal address of the declarant
23-56 and of the condominium;
23-57 (2) a general description of the condominium that
23-58 includes the types of units and the maximum number of units;
23-59 (3) the minimum and maximum number of additional
23-60 units, if any, that may be included in the condominium;
23-61 (4) a brief narrative description of any development
23-62 rights reserved by a declarant and of any conditions relating to or
23-63 limitations upon the exercise of development rights;
23-64 (5) copies of the declaration, articles of
23-65 incorporation of the association, the bylaws, any rules of the
23-66 association, and amendments to any of them, and copies of leases
23-67 and contracts, other than loan documents, that are required by the
23-68 declarant to be signed by purchasers at closing;
23-69 (6) a projected or pro forma budget for the
23-70 association that complies with Subsection (b) for the first fiscal
24-1 year of the association following the date of the first conveyance
24-2 to a purchaser, identification of the person who prepared the
24-3 budget, and a statement of the budget's assumptions concerning
24-4 occupancy and inflation factors;
24-5 (7) a general description of each lien, lease, or
24-6 encumbrance on or affecting the title to the condominium after
24-7 conveyance by the declarant;
24-8 (8) a copy of each written warranty provided by the
24-9 declarant;
24-10 (9) a description of any unsatisfied judgments against
24-11 the association and any pending suits to which the association is a
24-12 party or which are material to the land title and construction of
24-13 the condominium of which a declarant has actual knowledge;
24-14 (10) a general description of the insurance coverage
24-15 provided for the benefit of unit owners; and
24-16 (11) current or expected fees or charges to be paid by
24-17 unit owners for the use of the common elements and other facilities
24-18 related to the condominium.
24-19 (b) A budget under Subsection (a)(6) must be prepared in
24-20 accordance with generally accepted accounting principles and a
24-21 consideration of the physical condition of the condominium and be
24-22 based on assumptions that, to the best of the declarant's knowledge
24-23 and belief, are reasonable. The budget must include:
24-24 (1) a statement of the amount included, or a statement
24-25 that no amount is included, in the budget as a reserve; and
24-26 (2) the projected monthly common expense assessment
24-27 for each type of unit.
24-28 (c) A declarant shall promptly amend the condominium
24-29 information statement to reflect a material and substantial change
24-30 in its contents. If the change may adversely affect a prospective
24-31 purchaser who has received a condominium information statement, the
24-32 declarant shall furnish a copy of the amendment to the prospective
24-33 purchaser before closing.
24-34 Sec. 82.154. CONDOMINIUMS WITH CONVERSION BUILDINGS. If a
24-35 building contains units that may be occupied for residential use,
24-36 the condominium information statement of a condominium containing
24-37 any conversion building must additionally contain:
24-38 (1) a dated statement by the declarant, based on a
24-39 report by an independent architect or engineer, describing the
24-40 present condition of all structural components and mechanical and
24-41 electrical installations material to the use and enjoyment of the
24-42 building;
24-43 (2) a dated statement by the declarant of the expected
24-44 useful life of each item reported in Subdivision (1) or a statement
24-45 that no representations are made in that regard; and
24-46 (3) a list of violations of building code or other
24-47 governmental regulations of which the declarant has received notice
24-48 and that have not been cured, together with the estimated cost of
24-49 curing those violations.
24-50 Sec. 82.155. CONDOMINIUM SECURITIES. A declarant satisfies
24-51 all requirements relating to preparation of a condominium
24-52 information statement if an interest in the condominium is
24-53 currently registered with the Securities and Exchange Commission of
24-54 the United States and if the declarant delivers to the purchaser a
24-55 copy of the public offering statement filed with the commission.
24-56 Sec. 82.156. PURCHASER'S RIGHT TO CANCEL. (a) If a
24-57 purchaser of a unit from a unit owner other than a declarant has
24-58 not received from the seller the declaration, bylaws, and
24-59 association rules required by Section 82.157 before the purchaser
24-60 executes a contract of sale or if the contract does not contain an
24-61 underlined or bold-print provision acknowledging the purchaser's
24-62 receipt of those documents and recommending that the purchaser read
24-63 those documents before executing the contract, the purchaser may
24-64 cancel the contract before the sixth day after the date the
24-65 purchaser receives those documents. If a purchaser has not
24-66 received a resale certificate before executing a contract of sale,
24-67 the purchaser may cancel the contract before the sixth day after
24-68 the date the purchaser receives the resale certificate or executes
24-69 a waiver under Section 82.157, whichever occurs first.
24-70 (b) If a purchaser from a declarant has not received the
25-1 condominium information statement before the purchaser executes a
25-2 contract of sale or if a contract does not contain an underlined or
25-3 bold-print provision acknowledging the purchaser's receipt of the
25-4 condominium information statement and recommending that the
25-5 purchaser read the condominium information statement before
25-6 executing the contract, the purchaser may cancel the contract
25-7 before the sixth day after the date the purchaser receives the
25-8 condominium information statement.
25-9 (c) If a purchaser elects to cancel a contract under
25-10 Subsection (a) or (b), the cancellation must be by hand-delivering
25-11 written notice of cancellation to the declarant or selling unit
25-12 owner or by mailing notice of cancellation by certified United
25-13 States mail, return receipt requested, to the offeror or the
25-14 offeror's agent for service of process within the five-day
25-15 cancellation period. Cancellation is without penalty, and all
25-16 payments made by the purchaser before cancellation must be
25-17 refunded.
25-18 (d) A selling unit owner may not require a purchaser to
25-19 close until the purchaser is given the declaration, bylaws, and any
25-20 association rules. A declarant may not require a purchaser to
25-21 close until a condominium information statement has been furnished
25-22 to the purchaser.
25-23 Sec. 82.157. RESALE OF UNIT. (a) Except as provided by
25-24 Subsection (c), if a unit owner other than a declarant intends to
25-25 sell a unit, before executing a contract or conveying the unit, the
25-26 unit owner must furnish to the purchaser a current copy of the
25-27 declaration, bylaws, any association rules, and a resale
25-28 certificate that must have been prepared not earlier than three
25-29 months before the date it is delivered to the purchaser. The
25-30 resale certificate must be issued by the association and must
25-31 contain the current operating budget of the association and
25-32 statements of:
25-33 (1) any right of first refusal or other restraint
25-34 contained in the declaration that restricts the right to transfer a
25-35 unit;
25-36 (2) the amount of the periodic common expense
25-37 assessment and the unpaid common expenses or special assessments
25-38 currently due and payable from the selling unit owner;
25-39 (3) other unpaid fees or amounts payable to the
25-40 association by the selling unit owner;
25-41 (4) capital expenditures, if any, approved by the
25-42 association for the next 12 months;
25-43 (5) the amount of reserves, if any, for capital
25-44 expenditures and of portions of those reserves designated by the
25-45 association for a specified project;
25-46 (6) any unsatisfied judgments against the association;
25-47 (7) the nature of any pending suits against the
25-48 association;
25-49 (8) insurance coverage provided for the benefit of
25-50 unit owners;
25-51 (9) whether the board has knowledge that any
25-52 alterations or improvements to the unit or to the limited common
25-53 elements assigned to that unit violate the declaration, bylaws, or
25-54 association rules;
25-55 (10) whether the board has received notice from a
25-56 governmental authority concerning violations of health or building
25-57 codes with respect to the unit, the limited common elements
25-58 assigned to that unit, or any other portion of the condominium;
25-59 (11) the remaining term of any leasehold estate that
25-60 affects the condominium and the provisions governing an extension
25-61 or renewal of the lease; and
25-62 (12) the name, mailing address, and telephone number
25-63 of the association's managing agent, if any.
25-64 (b) Not later than the 10th day after the date of receiving
25-65 a written request by a unit owner, an association shall furnish to
25-66 the selling unit owner or the owner's agent a resale certificate
25-67 signed and dated by an officer or authorized agent of the
25-68 association containing the information required by Subsection (a).
25-69 A selling unit owner or the owner's agent is not liable to the
25-70 purchaser for erroneous information provided by the association in
26-1 the certificate. If an association does not furnish a resale
26-2 certificate or any information required in the certificate within
26-3 the 10-day period, the unit owner may provide the purchaser with a
26-4 sworn affidavit signed by the unit owner in lieu of the
26-5 certificate. An affidavit must state that the unit owner requested
26-6 information from the association concerning its financial
26-7 condition, as required by this section, and that the association
26-8 did not timely provide a resale certificate or the information
26-9 required in the certificate. If a unit owner has furnished an
26-10 affidavit to a purchaser, the unit owner and the purchaser may
26-11 agree in writing to waive the requirement to furnish a resale
26-12 certificate. The association is not liable to a selling unit owner
26-13 for delay or failure to furnish a resale certificate, and an
26-14 officer or agent of the association is not liable for a delay or
26-15 failure to furnish a certificate unless the officer or agent
26-16 wilfully refuses to furnish the certificate or is grossly negligent
26-17 in not furnishing the resale certificate. Failure to provide a
26-18 resale certificate does not void a deed to a purchaser.
26-19 (c) If a properly executed resale certificate incorrectly
26-20 states the total of delinquent sums owed by the selling unit owner
26-21 to the association, the purchaser is not liable for payment of
26-22 additional delinquencies that are unpaid on the date the
26-23 certificate is prepared and that exceed the total sum stated in the
26-24 certificate. A unit owner or the owner's agent is not liable to a
26-25 purchaser for the failure or delay of the association to provide
26-26 the certificate in a timely manner.
26-27 (d) A resale certificate does not affect:
26-28 (1) an association's right to recover debts or claims
26-29 that arise or become due after the date the certificate is
26-30 prepared; or
26-31 (2) an association's lien on a unit securing payment
26-32 of future assessments.
26-33 (e) A purchaser, lender, or title insurer who relies on a
26-34 resale certificate is not liable for any debt or claim that is not
26-35 disclosed in the certificate. An association may not deny the
26-36 validity of any statement in the certificate.
26-37 Sec. 82.158. ESCROW OF DEPOSITS. A deposit made in
26-38 connection with the purchase or reservation of a unit from a
26-39 declarant shall be placed in escrow and held in this state in an
26-40 account designated for that purpose by a real estate broker, an
26-41 attorney, a title insurance company licensed in this state, an
26-42 independent bonded escrow company, or an institution whose accounts
26-43 are insured by a governmental agency or instrumentality until
26-44 delivered to the declarant at closing, delivered to the declarant
26-45 because of the purchaser's default under a contract to purchase the
26-46 unit, or refunded to the purchaser. Escrow deposits may be placed
26-47 in interest-bearing accounts, and the interest is payable as may be
26-48 agreed in writing between the declarant and the purchaser.
26-49 Sec. 82.159. RELEASE OF LIENS. Before conveying real
26-50 property to an association, a declarant shall have that real
26-51 property released from all liens the foreclosure of which would
26-52 deprive unit owners of any right of access to or easement of
26-53 support of the owners' units, and all other liens on that real
26-54 property unless the condominium information statement describes
26-55 certain real property that may be conveyed subject to liens in
26-56 specified amounts.
26-57 Sec. 82.160. CONVERSION BUILDINGS. (a) A declarant of a
26-58 condominium containing a conversion building shall give each
26-59 residential tenant or subtenant in possession of a portion of a
26-60 conversion building notice of the conversion at least 60 days
26-61 before the date the declarant will require the tenant or subtenant
26-62 in possession to vacate. The notice must state generally the
26-63 rights of tenants and subtenants under this section and shall be
26-64 hand-delivered to the unit or mailed by certified United States
26-65 mail, return receipt requested, to the tenant or subtenant at the
26-66 address of the unit or any other mailing address provided by the
26-67 tenant or subtenant. The declarant may not require a tenant or
26-68 subtenant to vacate on less than 60 days' notice, except for
26-69 nonpayment of rent, waste, or conduct that violates the rental
26-70 agreement or is illegal, and the terms of a tenancy may not be
27-1 altered during that period. Failure of a declarant to give notice
27-2 as required by this section is a defense to an action for
27-3 possession.
27-4 (b) If a notice of conversion specifies a date by which a
27-5 unit or proposed unit must be vacated and otherwise complies with
27-6 Section 24.005, the notice also constitutes legal notice to vacate
27-7 on that date for purposes of Section 24.005. A declarant may not
27-8 terminate a lease in violation of its terms.
27-9 (c) Unless expressly authorized by a rental agreement, a
27-10 declarant may not make substantial alterations to the interior of a
27-11 leased premises for purposes of a condominium conversion.
27-12 Sec. 82.161. EFFECT OF VIOLATIONS ON RIGHTS OF ACTION AND
27-13 ATTORNEY'S FEES. (a) If a declarant or any other person subject
27-14 to this chapter violates this chapter, the declaration, or the
27-15 bylaws, any person or class of persons adversely affected by the
27-16 violation has a claim for appropriate relief.
27-17 (b) The prevailing party in an action to enforce the
27-18 declaration, bylaws, or rules is entitled to reasonable attorney's
27-19 fees and costs of litigation from the nonprevailing party.
27-20 Sec. 82.162. LABELING OF PROMOTIONAL MATERIAL. If any
27-21 improvement contemplated in a condominium is labeled "NEED NOT BE
27-22 BUILT" on a plat or plan or is to be located within a portion of a
27-23 condominium with respect to which the declarant has reserved a
27-24 development right, no promotional material that describes or
27-25 depicts the improvement may be displayed or delivered to
27-26 prospective purchasers unless the description or depiction of the
27-27 improvement is conspicuously labeled or identified as "NEED NOT BE
27-28 BUILT."
27-29 Sec. 82.163. DECLARANT'S OBLIGATION TO COMPLETE AND RESTORE.
27-30 The declarant shall complete all improvements labeled "MUST BE
27-31 BUILT" on plats or plans. The declarant is subject to liability
27-32 for the prompt repair and restoration, to a condition compatible
27-33 with the remainder of the condominium, of any portion of the
27-34 condominium affected by the exercise of rights reserved pursuant to
27-35 or created under this chapter.
27-36 Sec. 82.164. LOANS AS ELIGIBLE INVESTMENTS. (a) A loan on
27-37 a condominium unit and the undivided interest in the common
27-38 elements is an eligible investment for a bank, savings and loan
27-39 association, trust company, life insurance company, or other
27-40 lending institution that is authorized to make real property loans,
27-41 and for an administrator, guardian, executor, trustee, individual,
27-42 partnership, corporation, or other fiduciary that is authorized to
27-43 make real property loans. In determining eligibility, the
27-44 existence of a prior lien for taxes, assessments, or other similar
27-45 charges not yet delinquent may not be considered in determining
27-46 whether a mortgage or deed of trust on the security is a first
27-47 lien. This section does not change any provision of law that would
27-48 otherwise be applicable that limits mortgage investments based on a
27-49 special fraction or percentage of the value of the mortgaged
27-50 property.
27-51 (b) An association's lien for assessments does not make a
27-52 condominium unit ineligible for loans for which the unit would
27-53 otherwise qualify.
27-54 SECTION 2. The heading to Chapter 81, Property Code, is
27-55 amended to read as follows:
27-56 CHAPTER 81. CONDOMINIUMS CREATED
27-57 BEFORE ADOPTION OF UNIFORM CONDOMINIUM ACT
27-58 SECTION 3. Subchapter A, Chapter 81, Property Code, is
27-59 amended by adding Section 81.0011 to read as follows:
27-60 Sec. 81.0011. APPLICABILITY. (a) This chapter applies only
27-61 to a condominium regime created before January 1, 1994. A
27-62 condominium regime created on or after January 1, 1994, is governed
27-63 by Chapter 82.
27-64 (b) A condominium regime created before January 1, 1994, to
27-65 which this chapter applies is also governed by Chapter 82 as
27-66 provided by Section 82.002.
27-67 SECTION 4. This Act takes effect January 1, 1994.
27-68 SECTION 5. The importance of this legislation and the
27-69 crowded condition of the calendars in both houses create an
27-70 emergency and an imperative public necessity that the
28-1 constitutional rule requiring bills to be read on three several
28-2 days in each house be suspended, and this rule is hereby suspended.
28-3 * * * * *
28-4 Austin,
28-5 Texas
28-6 May 4, 1993
28-7 Hon. Bob Bullock
28-8 President of the Senate
28-9 Sir:
28-10 We, your Committee on Economic Development to which was referred
28-11 H.B. No. 156, have had the same under consideration, and I am
28-12 instructed to report it back to the Senate with the recommendation
28-13 that it do pass and be printed.
28-14 Parker,
28-15 Chairman
28-16 * * * * *
28-17 WITNESSES
28-18 FOR AGAINST ON
28-19 ___________________________________________________________________
28-20 Name: Larry Niemann x
28-21 Representing: TX Apt. Assn., TX Bldg Owners
28-22 City: Austin
28-23 -------------------------------------------------------------------
28-24 Name: Karen Neeley x
28-25 Representing: Ind. Bankers Assn. of Texas
28-26 City: Austin
28-27 -------------------------------------------------------------------
28-28 Name: Sharon Reuler x
28-29 Representing: Statewide Volunteers Spokesmn
28-30 City: Dallas
28-31 -------------------------------------------------------------------