79R3315 PAM-D

By:  Casteel                                                      H.B. No. 1072



A BILL TO BE ENTITLED

AN ACT

relating to the requirements for recording property owners' 
association management certificates in the county records.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 209.004, Property Code, is amended by 
amending Subsections (a) and (c) and adding Subsection (d) to read 
as follows:
	(a)  A property owners' association shall record in each 
county in which any portion of the residential subdivision is 
located a management certificate, signed and acknowledged by an 
officer or the managing agent of the association, stating:
		(1)  the name of the subdivision;                                             
		(2)  the name of the association;                                             
		(3)  the recording data for the subdivision;                                  
		(4)  the recording data for the declaration;                                  
		(5)  the mailing address of the association or the name 
and mailing address of the person and the management firm, if 
applicable, responsible for managing the association; and
		(6)  other information the association considers 
appropriate.               
	(c)  An officer, director, employee, or agent of a [The] 
property owners' association is [and its officers, directors, 
employees, and agents are] not personally liable [subject to 
liability] to any person for a delay in recording or failure to 
record a management certificate, unless the delay or failure is 
wilful or caused by gross negligence.
	(d)  A property owners' association that fails to comply with 
Subsections (a) and (b) may not enforce, through foreclosure or any 
other remedy provided by law, payment of a debt consisting of a fine 
or assessment secured by a lien against property located in the 
residential subdivision against a property owner who is:
		(1)  a bona fide purchaser for value who acquired the 
property before the management certificate or accurate 
documentation was recorded as provided by this section; or
		(2)  an owner who encumbered the property before the 
management certificate or accurate documentation was recorded as 
provided by this section.
	SECTION 2.  The change in law made by this Act applies only 
to a bona fide purchaser for value who acquires property or an owner 
of property who encumbers the property before the management 
certificate of a property owners' association or other accurate 
documentation was recorded as provided by Section 209.004, Property 
Code, as amended by this Act, on or after the effective date of this 
Act.  A bona fide purchaser for value who acquired property or an 
owner of property who encumbered the property before the effective 
date of this Act is governed by the law in effect when the property 
was acquired or encumbered, as applicable, and the former law is 
continued in effect for that purpose.
	SECTION 3.  This Act takes effect September 1, 2005.