By Lindsay S.B. No. 1835
77R15055 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) In this section, "property owners' association"
2-7 has the meaning assigned by Section 202.001.
2-8 (b) An obligation to pay property owners' association fees
2-9 for maintenance and ownership of common facilities and services is
2-10 a debt for which an encumbrance may be properly fixed on homestead
2-11 property.
2-12 (c) Homestead property is exempt from seizure for the claims
2-13 of creditors for an encumbrance described by Subsection (b). A
2-14 property owners' association may collect on an encumbrance
2-15 described by Subsection (b) properly fixed on homestead property at
2-16 the time the homestead property is transferred. Section 41.001(c)
2-17 does not apply to a claim of a property owners' association under
2-18 this section.
2-19 SECTION 3. This Act takes effect January 1, 2002, but only
2-20 if the constitutional amendment proposed by the 77th Legislature,
2-21 Regular Session, 2001, 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.