SRC-DPW S.B. 434 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 434
76R4900 PAM-FBy: Brown
State Affairs
2/12/1999
As Filed


DIGEST 

Currently, the Texas Real Estate Commission provides that addendum and
resale certificates may be used in transactions involving the sale of
property subject to mandatory assessment in a property owners' association.
The information contained in the certificate may be pertinent to the buyer.
Some owners' associations refuse to provide a resale certificate or
information about the association to a prospective buyer.  This bill would
authorize a property owner to request and receive information, including a
resale certificate, from the property owners' association. 

PURPOSE

As proposed, S.B. 434 establishes requirements for the disclosure of
certain information by a property owners' association, and provisions  for
failure to comply. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Title 11, Property Code, by adding Chapter 207, as
follows: 

CHAPTER 207. DISCLOSURE OF INFORMATION BY PROPERTY OWNERS' ASSOCIATIONS

Sec. 207.001. DEFINITIONS.  Defines "restrictions," "subdivision," "owner,"
"dedicatory instrument," "property owners' association," "restrictive
covenant," "regular assessment," "special assessment," and "resale
certificate." 

Sec. 207.002. APPLICABILITY.  Provides that this chapter is applicable to
subdivisions whose property owners' association is entitled to levy regular
or special assessments. 

Sec. 207.003. DELIVERY OF SUBDIVISION INFORMATION TO OWNER.  Requires the
property owners' association to furnish the owner current copies of
restrictive covenants applying to the subdivision, bylaws and rules of the
association, and a resale certificate, within 10 days after receiving a
written request from an owner.  Requires a resale certificate to contain
the current operating budget of the association and sets forth required
information to be included. 

Sec. 207.004. OWNER'S REMEDIES.  Authorizes the owner to seek certain court
orders or judgments if an association does not timely furnish information.
Provides that the association and its agent are not liable for a delay or
failure to furnish a resale certificate.  Prohibits the association from
denying the validity of any statement in the certificate.  Provides that a
resale certificate does not affect the right of the association to collect
debts or liens on the property for assessment purposes.  Provides that a
purchaser, lender, or insurer who relies on a resale certificate is not
liable for debts not disclosed in the certificate. 

SECTION 2. Effective date: September 1, 1999.

SECTION 3. Emergency clause.