By Dutton H.B. No. 763
76R810 PAM-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to encumbrances that may be fixed on homestead property.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Sections 41.001(a) and (b), Property Code, are
1-5 amended to read as follows:
1-6 (a) A homestead and one or more lots used for a place of
1-7 burial of the dead are exempt from seizure for the claims of
1-8 creditors except for encumbrances described by Subsection (b)
1-9 [properly fixed on homestead property].
1-10 (b) A homestead is not exempt from seizure as provided by
1-11 Subsection (a) for encumbrances that are [Encumbrances may be]
1-12 properly fixed on homestead property for:
1-13 (1) purchase money;
1-14 (2) taxes on the property;
1-15 (3) work and material used in constructing
1-16 improvements on the property if contracted for in writing as
1-17 provided by Sections 53.254(a), (b), and (c);
1-18 (4) an owelty of partition imposed against the
1-19 entirety of the property by a court order or by a written agreement
1-20 of the parties to the partition, including a debt of one spouse in
1-21 favor of the other spouse resulting from a division or an award of
1-22 a family homestead in a divorce proceeding; or
1-23 (5) the refinance of a lien against a homestead,
1-24 including a federal tax lien resulting from the tax debt of both
2-1 spouses, if the homestead is a family homestead, or from the tax
2-2 debt of the owner.
2-3 SECTION 2. Subchapter A, Chapter 41, Property Code, is
2-4 amended by adding Section 41.0011 to read as follows:
2-5 Sec. 41.0011. CERTAIN ENCUMBRANCES FIXED ON HOMESTEAD EXEMPT
2-6 FROM SEIZURE. (a) An obligation to pay property owners'
2-7 association fees for maintenance and ownership of common facilities
2-8 and services is a debt for which an encumbrance may be properly
2-9 fixed on homestead property.
2-10 (b) Homestead property is exempt from seizure for the claims
2-11 of creditors for an encumbrance described by Subsection (a). A
2-12 property owners' association may collect on an encumbrance
2-13 described by Subsection (a) properly fixed on homestead property at
2-14 the time the homestead property is transferred. Section 41.001(c)
2-15 does not apply to a claim of a property owners' association under
2-16 this section.
2-17 (c) In this section, "property owners' association" has the
2-18 meaning assigned by Section 202.001.
2-19 SECTION 3. This Act takes effect January 1, 2000, but only
2-20 if the constitutional amendment proposed by the 76th Legislature,
2-21 Regular Session, 1999, permitting an encumbrance to be fixed on
2-22 homestead property for an obligation to pay certain property
2-23 owners' association fees without permitting the forced sale of the
2-24 homestead, takes effect. If that amendment is not approved by the
2-25 voters, this Act has no effect.
2-26 SECTION 4. The importance of this legislation and the
2-27 crowded condition of the calendars in both houses create an
3-1 emergency and an imperative public necessity that the
3-2 constitutional rule requiring bills to be read on three several
3-3 days in each house be suspended, and this rule is hereby suspended.