By Brown S.B. No. 434 76R4900 PAM-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the disclosure of certain information by a property 1-3 owners' association. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Title 11, Property Code, is amended by adding 1-6 Chapter 207 to read as follows: 1-7 CHAPTER 207. DISCLOSURE OF INFORMATION BY PROPERTY OWNERS' 1-8 ASSOCIATIONS 1-9 Sec. 207.001. DEFINITIONS. In this chapter: 1-10 (1) "Restrictions," "subdivision," and "owner" have 1-11 the meanings assigned by Section 201.003. 1-12 (2) "Dedicatory instrument," "property owners' 1-13 association," and "restrictive covenant" have the meanings assigned 1-14 by Section 202.001. 1-15 (3) "Regular assessment" and "special assessment" have 1-16 the meanings assigned by Section 204.001. 1-17 (4) "Resale certificate" means a written statement 1-18 issued, signed, and dated by an officer or authorized agent of a 1-19 property owners' association that contains the information 1-20 specified by Section 207.003(b). 1-21 Sec. 207.002. APPLICABILITY. This chapter applies to a 1-22 subdivision whose property owners' association is entitled to levy 1-23 regular or special assessments that are secured by a continuing 1-24 lien on property in the subdivision. 2-1 Sec. 207.003. DELIVERY OF SUBDIVISION INFORMATION TO OWNER. 2-2 (a) Not later than the 10th day after the date a written request 2-3 for subdivision information is received from an owner, the property 2-4 owners' association shall furnish to the owner: 2-5 (1) a current copy of the restrictive covenants 2-6 applying to the subdivision; 2-7 (2) a current copy of the bylaws and rules of the 2-8 property owners' association; and 2-9 (3) a resale certificate that complies with Subsection 2-10 (b). 2-11 (b) A resale certificate under Subsection (a) must contain 2-12 the current operating budget of the property owners' association 2-13 and must state: 2-14 (1) any right of first refusal or other restraint in 2-15 the restrictive covenants that restricts the owner's right to 2-16 transfer the owner's property; 2-17 (2) the frequency and amount of any regular 2-18 assessment; 2-19 (3) the amount of any unpaid regular or special 2-20 assessment or any other unpaid fees currently due and payable by 2-21 the owner; 2-22 (4) any capital expenditures approved by the property 2-23 owners' association for the next 12 months; 2-24 (5) the amount of any reserves for capital 2-25 expenditures and any portions of those reserves designated by the 2-26 property owners' association for a specified project; 2-27 (6) any unsatisfied judgments against the property 3-1 owners' association; 3-2 (7) the nature of any pending suits against the 3-3 property owners' association; 3-4 (8) any insurance coverage provided for the benefit of 3-5 property owners; 3-6 (9) whether the property owners' association has 3-7 knowledge that any alterations or improvements to the owner's 3-8 property violate the restrictive covenants applying to the 3-9 subdivision or the bylaws or rules of the property owners' 3-10 association; 3-11 (10) whether the property owners' association has 3-12 received notice from a governmental authority concerning violations 3-13 of health or building codes with respect to the owner's property or 3-14 any common areas owned by the association; 3-15 (11) whether the subdivision is built on leased land; 3-16 and 3-17 (12) the name, mailing address, and telephone number 3-18 of the association's managing agent, if any. 3-19 Sec. 207.004. OWNER'S REMEDIES. (a) If a property owners' 3-20 association does not timely furnish information in accordance with 3-21 Section 207.003, the owner may seek: 3-22 (1) a court order directing the property owners' 3-23 association to furnish the required information; 3-24 (2) a judgment against the property owners' 3-25 association for not more than $1,000; 3-26 (3) a judgment against the property owners' 3-27 association for court costs and attorney's fees; or 4-1 (4) a judgment authorizing the owner or the owner's 4-2 assignee to deduct the amount awarded under Subdivision (2) or (3) 4-3 from any future regular or special assessments payable to the 4-4 property owners' association. 4-5 (b) The property owners' association is not liable to an 4-6 owner selling property in the subdivision for delay or failure to 4-7 furnish a resale certificate, and an officer or agent of the 4-8 association is not liable for a delay or failure to furnish a 4-9 certificate. 4-10 (c) A property owners' association may not deny the validity 4-11 of any statement in the certificate. 4-12 (d) A resale certificate does not affect: 4-13 (1) the right of a property owners' association to 4-14 recover debts or claims that arise or become due after the date the 4-15 resale certificate is prepared; or 4-16 (2) a lien on a property securing payment of future 4-17 assessments held by the association. 4-18 (e) A purchaser, lender, or title insurer who relies on a 4-19 resale certificate is not liable for any debt or claim that is not 4-20 disclosed in the certificate. 4-21 SECTION 2. This Act takes effect September 1, 1999. 4-22 SECTION 3. The importance of this legislation and the 4-23 crowded condition of the calendars in both houses create an 4-24 emergency and an imperative public necessity that the 4-25 constitutional rule requiring bills to be read on three several 4-26 days in each house be suspended, and this rule is hereby suspended.