By:  Carona                                           S.B. No. 1160
         99S0716/1                           
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the Texas Uniform Condominium Act.
 1-2           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-3           SECTION 1.  Section 82.001, Property Code, is amended to read
 1-4     as follows:
 1-5           Sec. 82.001.  SHORT TITLE.  This chapter may be cited as the
 1-6     Texas Uniform Condominium Act.
 1-7           SECTION 2.  Subsection (c), Section 82.002, Property Code, is
 1-8     amended to read as follows:
 1-9           (c)  This section and the following sections apply to a
1-10     condominium in this state for which the declaration was recorded
1-11     before January 1, 1994:  Sections 82.005, 82.006, 82.007, 82.008,
1-12     82.053, 82.054, 82.058, 82.067, 82.102(a)(1)-(7) and (12)-(22),
1-13     82.107, 82.108, 82.111, 82.113, 82.114, 82.116, 82.117, 82.151(b),
1-14     82.156(a), (c), and (d), 82.157, and 82.161.  The definitions
1-15     prescribed by Section 82.003 apply to a condominium in this state
1-16     for which the declaration was recorded before January 1, 1994, to
1-17     the extent the definitions do not conflict with the declaration.
1-18     The sections listed in this subsection apply only with respect to
1-19     events and circumstances occurring on or after January 1, 1994, and
1-20     do not invalidate existing provisions of the declaration, bylaws,
1-21     or plats or plans of a condominium for which the declaration was
1-22     recorded before January 1, 1994. If a conflict exists between
1-23     Chapter 81 and a provision of this chapter applicable to a
1-24     condominium for which the declaration was recorded before January
 2-1     1, 1994, this chapter prevails.
 2-2           SECTION 3.  Subdivisions (5), (10), (11), (12), (13), and
 2-3     (18) through (24), Subsection (a), Section 82.003, Property Code,
 2-4     are amended to read as follows:
 2-5                 (5)  "Common elements" means all portions of a
 2-6     condominium other than the units and includes both general and
 2-7     limited common elements and any other interest in real estate for
 2-8     the benefit of unit owners who are subject to the declaration.
 2-9                 (10)  "Conveyance" means a voluntary transfer to a
2-10     purchaser of a legal or equitable interest in a unit.  The term
2-11     does not include a transfer or release of a security interest.
2-12                 (11)  "Declarant" means a person, or group of persons
2-13     acting in concert, who:
2-14                       (A)  as part of a common promotional plan, offers
2-15     to dispose of the person's interest in a unit not previously
2-16     disposed of; or
2-17                       (B)  reserves or succeeds to any special
2-18     declarant right.
2-19                 (12) [(11)]  "Declaration" means a recorded instrument,
2-20     however denominated, that creates a condominium, and any recorded
2-21     amendment to that instrument.
2-22                 (13) [(12)]  "Development rights" means a right or
2-23     combination of rights reserved by a declarant in the declaration
2-24     to:
2-25                       (A)  add real property to a condominium;
2-26                       (B)  create units, common elements, or limited
 3-1     common elements within a condominium;
 3-2                       (C)  subdivide units or convert units into common
 3-3     elements; or
 3-4                       (D)  withdraw real property from a condominium.
 3-5                 [(13)  "Disposition" means a voluntary transfer to a
 3-6     purchaser of any legal or equitable interest in a unit but does not
 3-7     include the transfer or release of a security interest.]
 3-8                 (18)  "Mortgagee" or "secured lender" means the holder
 3-9     of a recorded vendor's lien or deed of trust on a unit.
3-10                 (19)  "Plan" means a dimensional drawing that is
3-11     recordable in the real property records or the condominium plat
3-12     records and that horizontally and vertically identifies or
3-13     describes units and common elements that are contained in
3-14     buildings.
3-15                 (20) [(19)]  "Plat" means a survey recordable in the
3-16     real property records or the condominium plat records and
3-17     containing the information required by Section 82.059.  As used in
3-18     this chapter, "plat" does not have the same meaning as "plat" in
3-19     Chapter 212 or 232, Local Government Code, or other statutes
3-20     dealing with municipal or county regulation of property
3-21     development.
3-22                 (21) [(20)]  "Purchaser" means a person, other than a
3-23     declarant, who by means of a voluntary transfer acquires a legal or
3-24     equitable interest in a unit other than a leasehold interest or as
3-25     security for an obligation.
3-26                 (22) [(21)]  "Residential purposes" means recreational
 4-1     or dwelling purposes, or both.
 4-2                 (23) [(22)]  "Special declarant rights" means rights
 4-3     reserved for the benefit of a declarant to:
 4-4                       (A)  complete improvements indicated on plats and
 4-5     plans [filed with the declaration];
 4-6                       (B)  exercise any development right;
 4-7                       (C)  make the condominium part of a larger
 4-8     condominium or a planned community;
 4-9                       (D)  maintain sales, management, and leasing
4-10     offices, signs advertising the condominium, and models;
4-11                       (E)  use easements through the common elements
4-12     for the purpose of making improvements within the condominium or
4-13     within real property that may be added to the condominium; or
4-14                       (F)  appoint or remove any officer or board
4-15     member of the association during any period of declarant control.
4-16                 (24) [(23)]  "Unit" means a physical portion of the
4-17     condominium designated for separate ownership or occupancy, the
4-18     boundaries of which are described by the declaration.
4-19                 (25) [(24)]  "Unit owner" means a declarant or other
4-20     person who owns a unit, or a lessee of a unit in a leasehold
4-21     condominium whose lease expires simultaneously with any lease the
4-22     expiration or termination of which will remove the unit from the
4-23     condominium, but does not include a person having an interest in a
4-24     unit solely as security for an obligation.
4-25           SECTION 4.  Section 82.007, Property Code, is amended by
4-26     amending Subsections (a) and (c) and adding Subsection (e) to read
 5-1     as follows:
 5-2           (a)  If a unit is acquired by condemnation, or if part of a
 5-3     unit is acquired by condemnation leaving the unit owner with a
 5-4     remnant that may not practically or lawfully be used for any
 5-5     purpose permitted by the declaration, the condemnation award must
 5-6     compensate the unit owner for the unit and its common element
 5-7     interest, whether or not any common element interest is acquired.
 5-8     On acquisition, unless the decree provides otherwise, the condemned
 5-9     unit's entire allocated interests are automatically reallocated to
5-10     the remaining units in proportion to the respective allocated
5-11     interests of those units before the taking[, and the association
5-12     shall promptly prepare, execute, and record an amendment to the
5-13     declaration reflecting the reallocations].  A remnant of a unit
5-14     remaining after part of a unit is taken under this subsection is a
5-15     common element.
5-16           (c)  If [part of the] common elements are [is] acquired by
5-17     condemnation, the award must be paid to the association, as trustee
5-18     for the unit owners, and to persons holding liens on the condemned
5-19     property, as their interests may appear.  The association shall
5-20     divide any portion of the award not used for replacement of the
5-21     common elements or for any restoration or repair of the remaining
5-22     common elements among the unit owners in proportion to their
5-23     respective common element interests before the taking.  To the
5-24     extent an award for limited common elements is not used for
5-25     replacement of the limited common element, [but] the portion of the
5-26     award attributable to the acquisition of a limited common element
 6-1     must be equally divided among the owners of the units to which that
 6-2     limited common element was allocated at the time of acquisition, or
 6-3     in any manner the declaration provides.
 6-4           (e)  On acquisition by condemnation of a unit or common
 6-5     element, the association shall promptly prepare, execute, and
 6-6     record an amendment to:
 6-7                 (1)  the plat, showing the changes in location,
 6-8     dimensions, distances, boundaries, and descriptions of units and
 6-9     common elements; and
6-10                 (2)  the declaration, reflecting the reallocations of a
6-11     condemned unit's allocated interests.
6-12           SECTION 5.  Section 82.054, Property Code, is amended to read
6-13     as follows:
6-14           Sec. 82.054.  DESCRIPTION OF UNITS.  A description of a unit
6-15     is a sufficient legal description of the unit and all rights,
6-16     obligations, and interests appurtenant to the unit that were
6-17     created by the declaration or bylaws if the description contains:
6-18                 (1)  the name of the condominium;
6-19                 (2)  the recording data for the declaration[, including
6-20     any amendments, plats, and plans];
6-21                 (3)  the county in which the condominium is located;
6-22     and
6-23                 (4)  the identifying number of the unit.
6-24           SECTION 6.  Subsection (b), Section 82.058, Property Code, is
6-25     amended to read as follows:
6-26           (b)  Unless prohibited [Except as otherwise provided] by the
 7-1     declaration, a limited common element may be reallocated by an
 7-2     amendment to the declaration, executed by the unit owners between
 7-3     or among whose units the reallocation is made.  The persons
 7-4     executing the amendment shall deliver it to the association, which
 7-5     shall record it at the expense of the reallocating unit owners.
 7-6           SECTION 7.  Subsection (b), Section 82.059, Property Code, is
 7-7     amended to read as follows:
 7-8           (b)  Each plat must show:
 7-9                 (1)  the name and a survey or general schematic map of
7-10     the entire condominium;
7-11                 (2)  the location and dimensions of all real property
7-12     not subject to development rights, or subject only to the
7-13     development right to withdraw, and the location and dimensions of
7-14     all existing improvements within that real property;
7-15                 (3)  a legally sufficient description of any real
7-16     property subject to development rights, labeled to identify the
7-17     rights applicable to each parcel;
7-18                 (4)  the extent of any encroachments by or on any
7-19     portion of the condominium;
7-20                 (5)  to the extent feasible, a legally sufficient
7-21     description of all easements serving or burdening any portion of
7-22     the condominium, and the location of any underground utility line
7-23     that is actually known by the declarant at the time of filing the
7-24     declaration to have been constructed outside a recorded easement;
7-25                 (6)  the location and dimensions of any vertical unit
7-26     boundaries not shown or projected on recorded plans and the unit's
 8-1     identifying number;
 8-2                 (7)  the location, with reference to established data,
 8-3     of any horizontal unit boundaries not shown or projected on
 8-4     recorded plans and the unit's identifying number;
 8-5                 (8)  a legally sufficient description of any real
 8-6     property in which the unit owners will own only an estate for
 8-7     years, labeled as "leasehold real property";
 8-8                 (9)  the distance between noncontiguous parcels of real
 8-9     property constituting the condominium;
8-10                 (10)  the location and dimensions of limited common
8-11     elements, other than those described by Sections 82.052(2) and (4);
8-12                 (11)  in the case of real property not subject to
8-13     development rights, all other matters required by law on land
8-14     surveys; and
8-15                 (12)  the distance and bearings locating each building
8-16     from adjacent [all other] buildings and from at least one boundary
8-17     line of the real property constituting the condominium.
8-18           SECTION 8.  Subsections (a) and (e), Section 82.067, Property
8-19     Code, are amended to read as follows:
8-20           (a)  Except as provided by Subsection (b), a declaration,
8-21     including the plats and plans, may be amended only by vote or
8-22     agreement of unit owners to which at least 67 percent of the votes
8-23     in the association are allocated, or any larger majority the
8-24     declaration specifies.  A declaration may specify a smaller number
8-25     only if all of the units are restricted exclusively to
8-26     nonresidential use.  An amendment to a declaration may be adopted:
 9-1                 (1)  by written ballot that states the exact wording or
 9-2     substance of the amendment and that specifies the date by which a
 9-3     ballot must be received to be counted;
 9-4                 (2)  at a meeting of the members of the association
 9-5     after written notice of the meeting has been delivered to an owner
 9-6     of each unit stating that a purpose of the meeting is to consider
 9-7     an amendment to the declaration; [or]
 9-8                 (3)  by any method permitted by the declaration; or
 9-9                 (4)  by a combination of the methods permitted by this
9-10     subsection.
9-11           (e)  Except as permitted or required by this chapter, an
9-12     amendment may not create or increase special declarant rights,
9-13     increase the number of units, change the boundaries of a unit,
9-14     alter or destroy a unit or limited common element, change a unit's
9-15     allocated interest, or change the use restrictions on a unit unless
9-16     the amendment is approved by 100 percent of the votes in the
9-17     association.  For purposes of this subsection, an amendment to the
9-18     declaration changing the permitted use of a unit from residential
9-19     to commercial use or from single-family to multifamily use is
9-20     considered a change in the use restrictions on a unit.  Except as
9-21     agreed to by the declarant, an amendment may not increase or
9-22     otherwise modify the obligations imposed by a declaration on a
9-23     declarant, or reduce or otherwise modify the rights granted by a
9-24     declaration to a declarant, including special declarant rights.
9-25     This subsection does not prohibit the adoption of an amendment to
9-26     the declaration consistent with the intended use of the property
 10-1    under the declaration.
 10-2          SECTION 9.  Section 82.069, Property Code, is amended to read
 10-3    as follows:
 10-4          Sec. 82.069.  RIGHTS OF SECURED LENDERS.  (a)  The
 10-5    declaration may require that all or a specified number or
 10-6    percentage of the mortgagees or beneficiaries of deeds of trust
 10-7    encumbering the units approve specified actions of the unit owners
 10-8    or the association as a condition to the effectiveness of those
 10-9    actions, but a requirement for approval may not operate to:
10-10                (1)  deny or delegate control over the general
10-11    administrative affairs of the association by the unit owners or the
10-12    board; or
10-13                (2)  prevent the association or the board from:
10-14                      (A)  commencing, intervening in, or settling any
10-15    litigation or proceeding; or
10-16                      (B)  receiving and distributing insurance
10-17    proceeds under Section 82.111.
10-18          (b)  A proposed declaration amendment or other association
10-19    action is considered approved by a mortgagee of a unit if:
10-20                (1)  the amendment or other action does not adversely
10-21    affect the mortgagee's security interest in the unit;
10-22                (2)  the association mails notice of the proposed
10-23    amendment or other action to the mortgagee by certified mail,
10-24    return receipt requested;
10-25                (3)  the notice informs the mortgagee that the proposed
10-26    amendment or other action will be considered approved by the
 11-1    mortgagee unless the mortgagee responds in writing not later than:
 11-2                      (A)  the 60th day after the date the association
 11-3    mails the notice; or
 11-4                      (B)  an earlier date provided by the declaration;
 11-5    and
 11-6                (4)  the mortgagee fails to respond in writing to the
 11-7    association on or before the date required under Subdivision (3).
 11-8          SECTION 10.  Section 82.102, Property Code, is amended to
 11-9    read as follows:
11-10          Sec. 82.102.  POWERS OF UNIT OWNERS' ASSOCIATION.
11-11    (a)  Unless otherwise provided by the declaration, the association,
11-12    acting through its board, may:
11-13                (1)  adopt and amend bylaws;
11-14                (2)  adopt and amend budgets for revenues,
11-15    expenditures, and reserves, and collect assessments for common
11-16    expenses from unit owners;
11-17                (3)  hire and terminate managing agents and other
11-18    employees, agents, and independent contractors;
11-19                (4)  institute, defend, intervene in, settle, or
11-20    compromise litigation or administrative proceedings in its own name
11-21    on behalf of itself or two or more unit owners on matters affecting
11-22    the condominium;
11-23                (5)  make contracts and incur liabilities relating to
11-24    the operation of the condominium;
11-25                (6)  regulate the use, maintenance, repair,
11-26    replacement, modification, and appearance of the condominium;
 12-1                (7)  adopt and amend rules regulating the use,
 12-2    occupancy, leasing or sale, maintenance, repair, modification, and
 12-3    appearance of units and common elements, to the extent the
 12-4    regulated actions affect common elements or other units;
 12-5                (8)  cause additional improvements to be made as a part
 12-6    of the common elements;
 12-7                (9)  acquire, hold, encumber, and convey in its own
 12-8    name any right, title, or interest to real or personal property,
 12-9    except common elements of the condominium;
12-10                (10)  grant easements, leases, licenses, and
12-11    concessions through or over the common elements;
12-12                (11)  impose and receive payments, fees, or charges for
12-13    the use, rental, or operation of the common elements and for
12-14    services provided to unit owners;
12-15                (12)  impose interest and late charges for delinquent
12-16    amounts owed to the association [late payments of assessments],
12-17    returned check charges, and, if notice and an opportunity to be
12-18    heard are given, reasonable fines for violations of the
12-19    declaration, bylaws, and rules of the association;
12-20                (13)  adopt and amend rules regulating the collection
12-21    of delinquent amounts owed to the association [assessments] and the
12-22    application of payments;
12-23                (14)  adopt and amend rules regulating the termination
12-24    of utility service to a unit, the owner of which is delinquent in
12-25    the payment of an amount owed to the association [assessment] that
12-26    is used, in whole or in part, to pay the cost of that utility;
 13-1                (15)  impose reasonable charges for preparing,
 13-2    recording, or copying the declaration, declaration amendments,
 13-3    resale certificates, [or] statements of delinquent amounts owed to
 13-4    the association, releases, or other association records [unpaid
 13-5    assessments];
 13-6                (16)  enter a unit for bona fide emergency purposes
 13-7    when conditions present an imminent risk of harm or damage to the
 13-8    common elements, another unit, or the occupants;
 13-9                (17)  assign its right to future income, including the
13-10    right to receive common expense assessments, if after notice of the
13-11    proposed assignment is mailed to all association members, at least
13-12    two-thirds of the association members voting in person or by proxy
13-13    at an association meeting vote in favor of the assignment[, but
13-14    only to the extent the declaration so provides];
13-15                (18)  suspend the voting privileges of or the use of
13-16    certain general common elements by an owner delinquent for more
13-17    than 30 days in the payment of amounts owed to the association
13-18    [assessments];
13-19                (19)  purchase insurance and fidelity bonds, including
13-20    liability insurance for directors and officers, that  it considers
13-21    appropriate or necessary;
13-22                (20)  subject to the Texas Non-Profit Corporation Act
13-23    (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes) and by
13-24    majority vote of the board, indemnify an association director,
13-25    officer, or committee member named a defendant or respondent in a
13-26    proceeding on the basis of the person's service as director,
 14-1    officer, or committee member;
 14-2                (21)  implement and modify architectural control
 14-3    guidelines, regardless of whether the guidelines are to be recorded
 14-4    in the real property records of the county in which the condominium
 14-5    is located;
 14-6                (22)  exercise any other powers conferred by the
 14-7    declaration or bylaws;
 14-8                (23) [(21)]  exercise any other powers that may be
 14-9    exercised in this state by a corporation of the same type as the
14-10    association; and
14-11                (24) [(22)]  exercise any other powers necessary and
14-12    proper for the [government and] operation of the association.
14-13          (b)  If a declaration contains a maximum regular assessment
14-14    and allows for an increase in the assessment without a vote of the
14-15    membership, the association may:
14-16                (1)  assess the amount of the increase annually; or
14-17                (2)  accumulate the amount of increases and impose the
14-18    accumulated amount after a number of years.
14-19          (c)  The declaration may not impose limitations on the power
14-20    of the association to deal with the declarant that are more
14-21    restrictive than the limitations imposed on the power of the
14-22    association to deal with other persons.
14-23          (d) [(c)]  To be enforceable, a bylaw or rule of the
14-24    association must not be arbitrary or capricious.
14-25          (e) [(d)]  Before an association may charge the unit owner
14-26    for property damage for which the unit owner is liable or levy a
 15-1    fine for violation of the declaration, bylaws, or rules, the
 15-2    association shall give to the unit owner a written notice that:
 15-3                (1)  describes the violation or property damage and
 15-4    states the amount of the proposed fine or damage charge;
 15-5                (2)  states that not later than the 30th day after the
 15-6    date of the notice, the unit owner may request a hearing before the
 15-7    board to contest the fine or damage charge; and
 15-8                (3)  allows the unit owner a reasonable time, by a
 15-9    specified date, to cure the violation and avoid the fine unless the
15-10    unit owner was given notice and a reasonable opportunity to cure a
15-11    similar violation within the preceding 12 months.
15-12          (f) [(e)]  The association may give a copy of the notice
15-13    required by Subsection (e) or (g) [(d)] to an occupant of the unit.
15-14    The association must give notice of a levied fine or damage charge
15-15    to the unit owner not later than the 30th day after the date of
15-16    levy.
15-17          (g)  An association may collect reimbursement for reasonable
15-18    attorney's fees or other reasonable enforcement costs relating to
15-19    the collection of money owed to the association or to a violation
15-20    of the association's declaration, bylaws, or rules only if the
15-21    association, before incurring the costs, provides the unit owner
15-22    with written notice that the association will charge the costs to
15-23    the unit owner if the delinquency or violation, as applicable,
15-24    continues after a date specified in the notice.
15-25          SECTION 11.  Subsection (a), Section 82.103, Property Code,
15-26    is amended to read as follows:
 16-1          (a)  Except as provided by the declaration or[,] bylaws[, or
 16-2    this chapter], the board shall manage the affairs of the
 16-3    association in good faith, with ordinary care, in the manner the
 16-4    board reasonably believes to be in the best interest of the
 16-5    association.  A board member who complies with this section is not
 16-6    liable to the association, any member of the association, or any
 16-7    other person for the board member's action or failure to act [in
 16-8    all instances on behalf of the association if in the good-faith
 16-9    judgment of the board the action is reasonable.  Each officer or
16-10    member of the board is liable as a fiduciary of the unit owners for
16-11    the officer's or member's acts or omissions.  All acts of the
16-12    association must be by and through the board unless otherwise
16-13    provided by the declaration or bylaws or by law].
16-14          SECTION 12.  Subsection (a), Section 82.106, Property Code,
16-15    is amended to read as follows:
16-16          (a)  The administration and operation of the association
16-17    [condominium] are governed by the bylaws, which must provide for:
16-18                (1)  the number of members on the board and the titles
16-19    of the officers of the association;
16-20                (2)  election by the board of a president, treasurer,
16-21    secretary, and any other officers the bylaws specify;
16-22                (3)  the qualifications, powers and duties, terms of
16-23    office, and the manner of electing and removing a board member or
16-24    officer and filling vacancies;
16-25                (4)  the powers, if any, that the board or an officer
16-26    may delegate to other persons or to a managing agent;
 17-1                (5)  the designation of officers who are authorized to
 17-2    prepare, execute, certify, and record amendments to the declaration
 17-3    on behalf of the association;
 17-4                (6)  the method of amending the bylaws; and
 17-5                (7)  the manner of notice of meetings of the
 17-6    association.
 17-7          SECTION 13.  Section 82.107, Property Code, is amended by
 17-8    amending Subsection (d) and adding Subsection (e) to read as
 17-9    follows:
17-10          (d)  Unless prohibited or limited [otherwise provided] by the
17-11    declaration, the association may enter a unit, after giving notice
17-12    to the owner and occupant of the unit, to:
17-13                (1)  prevent or terminate waste of water purchased by
17-14    the association as a common expense; or
17-15                (2)  perform maintenance and repairs of the condominium
17-16    that, if not performed, may result in increased damage by water to
17-17    components of the condominium that the association maintains.
17-18          (e)  A unit owner is not exempted from the unit owner's
17-19    obligations under this section by waiving the use of the common
17-20    elements or abandoning the unit.
17-21          SECTION 14.  Subsection (a), Section 82.108, Property Code,
17-22    is amended to read as follows:
17-23          (a)  Meetings of the association must be held at least once
17-24    each year.  Unless the declaration, bylaws, or articles of
17-25    incorporation provide for less restrictive requirements [provides
17-26    otherwise], special meetings of the association may be called by
 18-1    the president, a majority of the board, or unit owners having at
 18-2    least 10 [20] percent of the votes in the association.
 18-3          SECTION 15.  Section 82.109, Property Code, is amended to
 18-4    read as follows:
 18-5          Sec. 82.109.  QUORUMS.  (a)  Unless the declaration, bylaws,
 18-6    or articles of incorporation provide otherwise, a quorum is present
 18-7    throughout any meeting of the association if persons entitled to
 18-8    cast at least 20 percent of the votes that may be cast for election
 18-9    of the board are present in person or by proxy at the beginning of
18-10    the meeting.  The bylaws may not reduce the standard for a quorum
18-11    to less than 10 percent.
18-12          (b)  Unless the declaration, bylaws, or articles of
18-13    incorporation specify a larger percentage, a quorum is present
18-14    throughout a meeting of the board if persons entitled to cast at
18-15    least 50 percent of the votes on the board are present at the
18-16    beginning of the meeting.
18-17          SECTION 16.  Subsections (a) and (b), Section 82.110,
18-18    Property Code, are amended to read as follows:
18-19          (a)  Only one unit owner of a unit owned by multiple persons
18-20    may vote in person or by proxy [If only one of the multiple owners
18-21    of a unit is present at a meeting of the association, that person
18-22    may cast the vote or votes allocated to that unit].  If more than
18-23    one of the multiple owners is present at a meeting of the
18-24    association, the vote or votes allocated to that unit may be cast
18-25    only in accordance with the owners' unanimous agreement unless the
18-26    declaration, bylaws, or articles of incorporation provide
 19-1    [provides] otherwise.  Multiple owners are considered to be in
 19-2    unanimous agreement if one of the multiple owners casts the votes
 19-3    allocated to a unit and none of the other owners makes prompt
 19-4    protest to the person presiding over the meeting. If multiple
 19-5    owners of a unit attempt to vote in person or by proxy on behalf of
 19-6    all of the owners of the unit, the first owner listed on the deed
 19-7    under which the owners acquired title to the unit is the only owner
 19-8    entitled to cast the vote for the unit.  Any one of the multiple
 19-9    owners may register a protest, in person or by proxy, concerning
19-10    the validity of another owner's right to vote for all unit owners.
19-11          (b)  Votes allocated to a unit may be cast under a written
19-12    proxy duly executed by a unit owner.  If a unit is owned by more
19-13    than one person, each owner of the unit may vote or register
19-14    protest to the casting of votes by the other owners of the unit
19-15    through a proxy duly executed by the unit owner.  A unit owner may
19-16    not revoke a proxy given under this section except by giving actual
19-17    notice of revocation to the person presiding over a meeting of the
19-18    association.  A proxy is void if it is not dated or if it purports
19-19    to be revocable without notice.  A proxy terminates on the 11-month
19-20    anniversary of [one year after] its date unless it specifies a
19-21    shorter or longer time.
19-22          SECTION 17.  Subsections (c) and (d), Section 82.113,
19-23    Property Code, are amended to read as follows:
19-24          (c)  [The association's lien for assessments is created by
19-25    recordation of the declaration, which constitutes record notice and
19-26    perfection of the lien.]  Unless the declaration provides
 20-1    otherwise, no [other] recordation of a lien or notice of lien is
 20-2    required to perfect the association's lien for assessments.
 20-3          (d)  By acquiring a unit, a unit owner grants to the
 20-4    association a power of sale in connection with the association's
 20-5    lien.  By written resolution, a board may appoint, from time to
 20-6    time, an officer, agent, trustee, or attorney of the association to
 20-7    exercise the power of sale on behalf of the association.  An
 20-8    [Except as provided by the declaration, an] association shall
 20-9    exercise its power of sale pursuant to Section 51.002 and any
20-10    additional requirements of the declaration.
20-11          SECTION 18.  Subsections (a), (b), (c), (e), and (f), Section
20-12    82.114, Property Code, are amended to read as follows:
20-13          (a)  The association shall keep:
20-14                (1)  [detailed] financial records that are sufficiently
20-15    detailed to enable:
20-16                      (A)  an accountant to prepare financial
20-17    statements that comply with generally accepted accounting
20-18    principles; and
20-19                      (B)  [that are sufficiently detailed to enable]
20-20    the association to prepare a resale certificate under Section
20-21    82.157;
20-22                (2)  the plans and specifications used to construct the
20-23    condominium except for buildings originally constructed before
20-24    January 1, 1994;
20-25                (3)  the condominium information statement prepared
20-26    under Section 82.152 and any amendments;
 21-1                (4)  the name and mailing address of each unit owner;
 21-2                (5)  voting records, proxies, and correspondence
 21-3    relating to amendments to the declaration for at least four years;
 21-4    and
 21-5                (6)  minutes of meetings of the association and board.
 21-6          (b)  At a unit owner's written request stating the purpose of
 21-7    the request and at the unit owner's expense, a unit owner or the
 21-8    unit owner's agent, including the unit owner's accountant or
 21-9    attorney, may, at a reasonable time and for a proper purpose,
21-10    examine and copy the association's books and records relevant to
21-11    that purpose.  At a unit owner's written request and at the unit
21-12    owner's expense, the association shall furnish to the unit owner a
21-13    copy of the declaration, restrictions, bylaws, and any rules of the
21-14    association not later than the 10th day after the date the
21-15    association receives the request [All financial and other records
21-16    of the association shall be reasonably available at its registered
21-17    office or its principal office in this state for examination by a
21-18    unit owner and the owner's agents].  An attorney's files and
21-19    records relating to the association are not records of the
21-20    association and are not subject to inspection by unit owners or
21-21    production in a legal proceeding.
21-22          (c)  The association shall, as a common expense, [annually]
21-23    obtain the accounting services required by this section or by the
21-24    declaration or bylaws [an independent audit of the records].
21-25    Copies of each report required under this subsection [the audit]
21-26    must be made available to the unit owners.  If the condominium
 22-1    contains 50 or more units, the association shall annually obtain a
 22-2    year-end financial report and an audit of the association's
 22-3    financial records [An audit required by this subsection shall be]
 22-4    performed by a public accountant or certified public accountant who
 22-5    is independent of the association.  If the condominium contains
 22-6    fewer than 50 units but more than 15 units, the association shall
 22-7    annually obtain a review or an audit of the association's financial
 22-8    records performed by a public accountant or certified public
 22-9    accountant who is independent of the association.  If the
22-10    condominium contains 15 units or fewer, the association may
22-11    annually waive the audit or review requirement on approval of the
22-12    waiver by at least two-thirds of the members [if required by the
22-13    bylaws or a vote of the board of directors or a majority vote of
22-14    the members of the association] voting at a meeting of the
22-15    association.  The waiver is not effective to waive a requirement of
22-16    the declaration or bylaws.
22-17          (e)  Not later than the 30th day after the date of acquiring
22-18    an interest in a unit, the unit owner shall provide the association
22-19    with:
22-20                (1)  the unit owner's mailing address, telephone
22-21    number, and driver's license number, if any;
22-22                (2)  [the name and address of the holder of any lien
22-23    against the unit, and any loan number;]
22-24                [(3)]  the name and telephone number of any person
22-25    occupying the unit other than the unit owner; and
22-26                (3) [(4)]  the name, address, and telephone number of
 23-1    any person managing the unit as agent of the unit owner.
 23-2          (f)  A unit owner shall notify the association not later than
 23-3    the 30th day after the date the owner has notice of a change in any
 23-4    information required by Subsection (e), and shall provide the
 23-5    information on request by the association from time to time.  The
 23-6    association may charge the unit owner for the actual cost and
 23-7    administrative expense the association incurs in obtaining the
 23-8    information if the unit owner fails to notify the association as
 23-9    prescribed by this subsection.
23-10          SECTION 19.  Subsection (b), Section 82.116, Property Code,
23-11    is amended to read as follows:
23-12          (b)  The association shall record a management certificate
23-13    not later than the 30th day after the date the association has
23-14    notice of a change in any information in a recorded certificate
23-15    required under Subsection (a) [by Subdivisions (a)(1)-(5)].
23-16          SECTION 20.  Section 82.117, Property Code, is amended to
23-17    read as follows:
23-18          Sec. 82.117.  OBLIGATIONS OF UNIT OWNERS.  (a)  In addition
23-19    to [Without limiting] the obligations of the unit owners [and
23-20    except] as provided by the declaration, bylaws, rules of the
23-21    association, or other provisions of this chapter, the unit owner:
23-22                (1)  shall pay assessments, interest, and other charges
23-23    properly levied by the association against the owner or the owner's
23-24    unit, and shall pay regular periodic assessments without demand by
23-25    the association;
23-26                (2)  shall comply with the declaration, bylaws, and
 24-1    rules of the association, including any amendments;
 24-2                (3)  shall pay for damage to the condominium caused by
 24-3    the negligence or wilful misconduct of the owner, an occupant of
 24-4    the owner's unit, or the owner or occupant's family, guests,
 24-5    employees, contractors, agents, or invitees; and
 24-6                (4)  is liable to the association for violations of the
 24-7    declaration, bylaws, or rules of the association, including any
 24-8    amendments, by the owner, an occupant of the owner's unit, or the
 24-9    owner or occupant's family, guests, employees, agents, or invitees,
24-10    and for costs incurred by the association to obtain compliance,
24-11    including attorney's fees whether or not suit is filed.
24-12          (b)  The association is entitled to recover attorney's fees
24-13    only if the association provides prior notice in accordance with
24-14    Section 82.102(g).
24-15          SECTION 21.  Subsection (b), Section 82.151, Property  Code,
24-16    is amended to read as follows:
24-17          (b)  A condominium information statement or resale
24-18    certificate need not be prepared or delivered in the case of:
24-19                (1)  a gratuitous conveyance [disposition] of a unit;
24-20                (2)  a conveyance [disposition] pursuant to court
24-21    order;
24-22                (3)  a conveyance [disposition] by a government or
24-23    governmental agency;
24-24                (4)  a conveyance [disposition] by foreclosure or deed
24-25    in lieu of foreclosure; or
24-26                (5)  a contract of sale or conveyance [disposition]
 25-1    that may be canceled  by the purchaser at any time, for any reason,
 25-2    and without penalty.
 25-3          SECTION 22.  Section 82.153, Property Code, is amended to
 25-4    read as follows:
 25-5          Sec. 82.153.  CONDOMINIUM INFORMATION STATEMENTS IN GENERAL.
 25-6    (a)  A condominium information statement must contain or accurately
 25-7    disclose:
 25-8                (1)  the name and principal address of the declarant
 25-9    and of the condominium;
25-10                (2)  a general description of the condominium that
25-11    includes the types of units and the maximum number of units;
25-12                (3)  the minimum and maximum number of additional
25-13    units, if any, that may be included in the condominium;
25-14                (4)  a brief narrative description of any development
25-15    rights reserved by a declarant and of any conditions relating to or
25-16    limitations upon the exercise of development rights;
25-17                (5)  copies of the declaration, articles of
25-18    incorporation of the association, the bylaws, any rules of the
25-19    association, and amendments to any of them, and copies of leases
25-20    and contracts, other than loan documents, that are required by the
25-21    declarant to be signed by purchasers at closing;
25-22                (6)  a projected or pro forma budget for the
25-23    association [that complies with Subsection (b)] for the first
25-24    fiscal year of the association following the date of the first
25-25    conveyance to a purchaser and thereafter the current budget of the
25-26    association, identification of the person who prepared the budget,
 26-1    and a statement of the budget's assumptions concerning occupancy
 26-2    and inflation factors;
 26-3                (7)  a general description of each lien, lease, or
 26-4    encumbrance on or affecting the title to the condominium after
 26-5    conveyance by the declarant;
 26-6                (8)  a copy of each written warranty provided by the
 26-7    declarant;
 26-8                (9)  a description of any unsatisfied judgments against
 26-9    the association and any pending suits to which the association is a
26-10    party or which are material to the land title and construction of
26-11    the condominium of which a declarant has actual knowledge;
26-12                (10)  a general description of the insurance coverage
26-13    provided for the benefit of unit owners; and
26-14                (11)  current or expected fees or charges to be paid by
26-15    unit owners for the use of the common elements and other facilities
26-16    related to the condominium.
26-17          (b)  A budget under Subsection (a)(6) must reflect
26-18    anticipated income, expenses, and reserves [be prepared in
26-19    accordance with generally accepted accounting principles] and a
26-20    consideration of the physical condition of the condominium and must
26-21    be based on assumptions that, to the best of the declarant's
26-22    knowledge and belief, are reasonable.  The budget must include:
26-23                (1)  a statement of the amount included, or a statement
26-24    that no amount is included, in the budget as a reserve; and
26-25                (2)  the projected monthly common expense assessment
26-26    for each type of unit.
 27-1          (c)  A declarant, before closing, shall promptly amend the
 27-2    condominium information statement to reflect a material and
 27-3    substantial change in its contents.  If the change may adversely
 27-4    affect a prospective purchaser who has received a condominium
 27-5    information statement, the declarant shall furnish a copy of the
 27-6    amendment to the prospective purchaser before closing.
 27-7          SECTION 23.  Section 82.156, Property Code, is amended by
 27-8    amending Subsection (d) and adding Subsection (e) to read as
 27-9    follows:
27-10          (d)  A selling unit owner may not require a purchaser to
27-11    close until the purchaser is given the declaration, bylaws, and, if
27-12    any, the association rules.  A declarant may not require a
27-13    purchaser to close until a condominium information statement has
27-14    been furnished to the purchaser.
27-15          (e)  After a sale is completed, the seller's failure to have
27-16    furnished the buyer with a condominium information statement or
27-17    resale certificate is not grounds for rescission of the sale.
27-18          SECTION 24.  Subsections (a), (d), and (e), Section 82.157,
27-19    Property Code, are amended to read as follows:
27-20          (a)  Except as provided by Section 82.151(b) [Subsection
27-21    (c)], if a unit owner other than a declarant intends to sell a
27-22    unit, before executing a contract or conveying the unit, the unit
27-23    owner must furnish to the purchaser a current copy of the
27-24    declaration, bylaws, any association rules, and a resale
27-25    certificate.  The resale certificate [that] must have been prepared
27-26    not earlier than three months before the date it is delivered to
 28-1    the purchaser,[.  The resale certificate must] be issued by the
 28-2    association, and [must] contain [the current operating budget of
 28-3    the association and statements of]:
 28-4                (1)  a statement of any right of first refusal or other
 28-5    restraint contained in the declaration that restricts the right to
 28-6    transfer a unit;
 28-7                (2)  the amount of the regular assessment and how often
 28-8    it becomes due [periodic common expense assessment and the unpaid
 28-9    common expenses or special assessments currently due and payable
28-10    from the selling unit owner];
28-11                (3)  the amount of any special assessment owed for the
28-12    owner's unit after the preparation date of the resale certificate
28-13    and the total of all amounts unpaid and owed to the association by
28-14    the unit owner selling the unit [other unpaid fees or amounts
28-15    payable to the association by the selling unit owner];
28-16                (4)  capital expenditures, if any, approved by the
28-17    association for the next 12 months;
28-18                (5)  the amount of reserves, if any, for capital
28-19    expenditures and [of] portions of those reserves designated by the
28-20    association for a specified project;
28-21                (6)  the total amount of any unsatisfied judgments
28-22    against the association;
28-23                (7)  the style and case number [nature] of any pending
28-24    suits against the association;
28-25                (8)  a summary of the association's property and
28-26    liability insurance coverage relating to the common elements and
 29-1    common facilities [provided for the benefit of unit owners];
 29-2                (9)  whether the board has knowledge that any
 29-3    alterations or improvements to the unit or to the limited common
 29-4    elements assigned to that unit violate the declaration, bylaws, or
 29-5    association rules;
 29-6                (10)  a summary or copy of each notice the association
 29-7    has received [whether the board has received notice] from a
 29-8    governmental authority concerning violations of health or housing
 29-9    [building] codes existing on the date the certificate is prepared
29-10    with respect to the unit, the limited common elements assigned to
29-11    that unit, or the common areas or facilities [any other portion of
29-12    the condominium];
29-13                (11)  the remaining term of any leasehold estate that
29-14    affects the condominium and the provisions governing an extension
29-15    or renewal of the lease; [and]
29-16                (12)  the name, mailing address, and telephone number
29-17    of the association's managing agent, if any;
29-18                (13)  the association's current operating budget and
29-19    balance sheet; and
29-20                (14)  the amount of any administrative transfer fee the
29-21    association charges on change of unit ownership.
29-22          (d)  A resale certificate does not affect:
29-23                (1)  an association's right to recover debts or claims
29-24    that arise or become due after the date the certificate is
29-25    prepared; or
29-26                (2)  an association's lien on a unit securing payment
 30-1    of money owed to the association in the future [assessments].
 30-2          (e)  A purchaser, lender, or title insurer who relies on a
 30-3    resale certificate is not liable for any debt or claim that is not
 30-4    disclosed in the certificate.  An association may not deny the
 30-5    validity of any statement in the certificate.  A unit owner who is
 30-6    selling a unit, or the unit owner's agent, is not liable to the
 30-7    purchaser for erroneous information that the association provides
 30-8    for inclusion in the certificate.
 30-9          SECTION 25.  Subsection (b), Section 82.161, Property Code,
30-10    is amended to read as follows:
30-11          (b)  Subject to Section 82.102(g), the [The] prevailing party
30-12    in litigation [an action] to enforce the declaration, bylaws, or
30-13    rules is entitled to reasonable attorney's fees and costs of
30-14    litigation from the nonprevailing party.
30-15          SECTION 26.  Sections 81.111 and 81.204, Property Code, are
30-16    repealed.
30-17          SECTION 27.  (a)  This Act takes effect January 1, 2000.
30-18          (b)  Chapter 82, Property Code, as amended by this Act,
30-19    applies only with respect to an event or circumstance occurring on
30-20    or after January 1, 2000, and except as provided by Subsection (c)
30-21    of this section, the changes to that chapter by this Act do not
30-22    invalidate existing provisions of a declaration, bylaws, or plats
30-23    or plans of a condominium for which the declaration was recorded
30-24    before January 1, 2000.
30-25          (c)  The changes to Subsection (c), Section 82.002, Property
30-26    Code, by this Act do not invalidate existing provisions of a
 31-1    declaration, bylaws, or plats or plans of a condominium for which
 31-2    the declaration was recorded before January 1, 1994.
 31-3          SECTION 28.  The importance of this legislation and the
 31-4    crowded condition of the calendars in both houses create an
 31-5    emergency and an imperative public necessity that the
 31-6    constitutional rule requiring bills to be read on three several
 31-7    days in each house be suspended, and this rule is hereby suspended.