By Solomons H.B. No. 2224
76R6815 PAM-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to requiring disclosure notices for the sale of real
1-3 property governed by a property owners' association and requiring
1-4 the filing of dedicatory instruments governing property owners'
1-5 associations.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. Subchapter A, Chapter 5, Property Code, is
1-8 amended by adding Section 5.012 to read as follows:
1-9 Sec. 5.012. NOTICE OF OBLIGATIONS RELATED TO MEMBERSHIP IN
1-10 PROPERTY OWNERS' ASSOCIATION. (a) A seller of residential real
1-11 property that is subject to membership in a property owners'
1-12 association and that comprises not more than one dwelling unit
1-13 located in this state shall give to the purchaser of the property
1-14 before the transfer of the property a written notice as prescribed
1-15 by this section.
1-16 (b) The notice must be conspicuous and printed in 14-point
1-17 bold-faced type and read substantially similar to the following:
1-18 NOTICE OF MEMBERSHIP IN PROPERTY OWNERS' ASSOCIATION
1-19 CONCERNING THE PROPERTY AT (street address)
1-20 (name of residential community)
1-21 As a purchaser of property in this residential community, you
1-22 are obligated to be a member of (name of property owners'
1-23 association).
1-24 Restrictive covenants governing the use and occupancy of
2-1 property located in this residential community and a dedicatory
2-2 instrument governing the establishment, maintenance, and operation
2-3 of this residential community have been or will be recorded in the
2-4 Real Property Records of (name of county). Copies of the
2-5 restrictive covenants and dedicatory instrument may be obtained
2-6 from the county clerk.
2-7 You are obligated to pay assessments to the property owners'
2-8 association. The amount of the assessments is subject to change.
2-9 Your failure to pay the assessments could result in a lien on and
2-10 the foreclosure of your property.
2-11 THE STATEMENTS CONTAINED IN THIS NOTICE ARE SUMMARY IN
2-12 NATURE. AS A PROSPECTIVE PURCHASER, YOU SHOULD REFER TO THE
2-13 RESTRICTIVE COVENANTS AND THE DEDICATORY INSTRUMENT FOR FURTHER
2-14 DETAIL.
2-15 I UNDERSTAND MY OBLIGATIONS RELATING TO MEMBERSHIP IN THE
2-16 PROPERTY OWNERS' ASSOCIATION AS STATED ABOVE.
2-17 Date:__________ _____________________________________________
2-18 Signature of Purchaser
2-19 Print Name:__________________________________
2-20 Property Address:____________________________
2-21 (c) The seller's failure to provide the notice required by
2-22 this section entitles the purchaser to cancel and rescind the
2-23 purchase contract and receive a full refund of any purchase payment
2-24 made to the seller.
2-25 SECTION 2. Chapter 202, Property Code, is amended by adding
2-26 Section 202.006 to read as follows:
2-27 Sec. 202.006. PUBLIC RECORDS. (a) Each county clerk shall
3-1 maintain suitable records called "Property Owners' Association
3-2 Records" in which the clerk shall record dedicatory instruments
3-3 governing property owners' associations.
3-4 (b) A property owners' association shall file the dedicatory
3-5 instrument in the real property records of each county in which the
3-6 property to which the dedicatory instrument relates is located.
3-7 SECTION 3. (a) Except as provided by Subsection (b) of this
3-8 section, this Act takes effect September 1, 1999.
3-9 (b) Section 5.012, Property Code, as added by this Act,
3-10 takes effect January 1, 2000, and applies only to a real property
3-11 transaction described by that section in which the transfer of the
3-12 property occurs on or after January 1, 2000.
3-13 SECTION 4. (a) On or before December 1, 1999, the county
3-14 clerk of each county shall establish the "Property Owners'
3-15 Association Records" for the county as prescribed by Section
3-16 202.006, Property Code, as added by this Act.
3-17 (b) Not later than January 1, 2000, each property owners'
3-18 association shall present for recording with the county clerk as
3-19 prescribed by Section 202.006, Property Code, as added by this Act,
3-20 each dedicatory instrument governing the association that has not
3-21 been previously recorded in the real property records of the
3-22 county.
3-23 SECTION 5. The importance of this legislation and the
3-24 crowded condition of the calendars in both houses create an
3-25 emergency and an imperative public necessity that the
3-26 constitutional rule requiring bills to be read on three several
3-27 days in each house be suspended, and this rule is hereby suspended.