1-1 By: Lindsay S.B. No. 1835
1-2 (In the Senate - Filed May 3, 2001; May 3, 2001, read first
1-3 time and referred to Committee on Intergovernmental Relations;
1-4 May 7, 2001, reported favorably by the following vote: Yeas 6,
1-5 Nays 0; May 7, 2001, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to encumbrances that may be fixed on homestead property.
1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10 SECTION 1. Subsections (a) and (b), Section 41.001, Property
1-11 Code, are amended to read as follows:
1-12 (a) A homestead and one or more lots used for a place of
1-13 burial of the dead are exempt from seizure for the claims of
1-14 creditors except for encumbrances described by Subsection (b)
1-15 [properly fixed on homestead property].
1-16 (b) A homestead is not exempt from seizure as provided by
1-17 Subsection (a) for encumbrances that are [Encumbrances may be]
1-18 properly fixed on homestead property for:
1-19 (1) purchase money;
1-20 (2) taxes on the property;
1-21 (3) work and material used in constructing
1-22 improvements on the property if contracted for in writing as
1-23 provided by Sections 53.254(a), (b), and (c);
1-24 (4) an owelty of partition imposed against the
1-25 entirety of the property by a court order or by a written agreement
1-26 of the parties to the partition, including a debt of one spouse in
1-27 favor of the other spouse resulting from a division or an award of
1-28 a family homestead in a divorce proceeding; or
1-29 (5) the refinance of a lien against a homestead,
1-30 including a federal tax lien resulting from the tax debt of both
1-31 spouses, if the homestead is a family homestead, or from the tax
1-32 debt of the owner.
1-33 SECTION 2. Subchapter A, Chapter 41, Property Code, is
1-34 amended by adding Section 41.0011 to read as follows:
1-35 Sec. 41.0011. CERTAIN ENCUMBRANCES FIXED ON HOMESTEAD EXEMPT
1-36 FROM SEIZURE. (a) In this section, "property owners' association"
1-37 has the meaning assigned by Section 202.001.
1-38 (b) An obligation to pay property owners' association fees
1-39 for maintenance and ownership of common facilities and services is
1-40 a debt for which an encumbrance may be properly fixed on homestead
1-41 property.
1-42 (c) Homestead property is exempt from seizure for the claims
1-43 of creditors for an encumbrance described by Subsection (b). A
1-44 property owners' association may collect on an encumbrance
1-45 described by Subsection (b) properly fixed on homestead property at
1-46 the time the homestead property is transferred. Section 41.001(c)
1-47 does not apply to a claim of a property owners' association under
1-48 this section.
1-49 SECTION 3. This Act takes effect January 1, 2002, but only
1-50 if the constitutional amendment proposed by the 77th Legislature,
1-51 Regular Session, 2001, permitting an encumbrance to be fixed on
1-52 homestead property for an obligation to pay certain property
1-53 owners' association fees without permitting the forced sale of the
1-54 homestead takes effect. If that amendment is not approved by the
1-55 voters, this Act has no effect.
1-56 * * * * *