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By:  Carona                                                       S.B. No. 362
	(In the Senate - Filed February 4, 2005; February 15, 2005, 
read first time and referred to Committee on Intergovernmental 
Relations; April 21, 2005, reported favorably by the following 
vote:  Yeas 5, Nays 0; April 21, 2005, sent to printer.)


A BILL TO BE ENTITLED

AN ACT


relating to certain condominium owners' right to redeem real 
property following certain foreclosure sales.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 82.113, Property Code, is amended by 
amending Subsection (g) and adding Subsections (g-1) through (g-7) 
to read as follows:
	(g)  The owner of a unit used for residential purposes and 
purchased [by an association] at a foreclosure sale of an [the] 
association's lien for assessments may redeem the unit not later 
than the 90th day after the date of the foreclosure sale.
	(g-1)  To redeem a [the] unit purchased by the association, 
the owner must pay to the association all amounts due the 
association at the time of the foreclosure sale, interest from the 
date of foreclosure sale to the date of redemption at the rate 
provided by the declaration for delinquent assessments, reasonable 
attorney's fees and costs incurred by the association in 
foreclosing the lien, any assessment levied against the unit by the 
association after the foreclosure sale, and any reasonable cost 
incurred by the association as owner of the unit, including costs of 
maintenance and leasing.
	(g-2)  To redeem a unit purchased by a person other than the 
association, the owner must pay:
		(1)  to the association:                                               
			(A)  all amounts due the association at the time 
of foreclosure, less the foreclosure sales price received by the 
association from the purchaser;
			(B)  interest from the date of the foreclosure 
sale to the date of redemption at the rate provided by the 
declaration for delinquent assessments;
			(C)  reasonable attorney's fees and costs 
incurred by the association in foreclosing the lien; and
			(D)  any unpaid assessments levied against the 
unit by the association after the date of the foreclosure sale; and
		(2)  to the purchaser:                                                 
			(A)  any assessment levied by the association 
after the date of the foreclosure sale and paid by the purchaser;
			(B)  the purchase price paid by the purchaser at 
the foreclosure sale;
			(C)  the amount of the deed recording fee; and                        
			(D)  the amount paid by the purchaser in ad 
valorem taxes, penalties, and interest on the unit after the date of 
the foreclosure sale.
	(g-3)  On redemption, the association or other purchaser
shall execute a deed to the redeeming unit owner.
	(g-4)  The exercise of the right of redemption is not 
effective against a subsequent purchaser or lender for value 
without notice of the redemption after the redemption period 
expires unless the redeeming unit owner records the deed from the 
association or other purchaser, as applicable, or an affidavit 
stating that the owner has exercised the right of redemption.
	(g-5)  A unit that has been redeemed remains subject to all 
liens and encumbrances on the unit before foreclosure.
	(g-6)  All rents and other income collected from the unit by 
the association or other purchaser from the date of foreclosure 
sale to the date of redemption belong to the association or 
purchaser, as applicable, but the rents and income shall be 
credited against the redemption amount.
	(g-7)  An association or other purchaser purchasing a unit at 
a sale foreclosing the association's [its] lien may not transfer 
ownership of the unit during the redemption period to a person other 
than a redeeming owner.
	SECTION 2.  Subsections (g) and (g-1) through (g-7), Section 
82.113, Property Code, as amended and as added by this Act, apply 
only to the rights of a redeeming owner of a condominium unit 
purchased at a foreclosure sale on or after the effective date of 
this Act.  The rights of a redeeming owner of a condominium unit 
purchased at a foreclosure sale before the effective date of this 
Act are governed by the law in effect on the date of the foreclosure 
sale, and that law is continued in effect for that purpose.
	SECTION 3.  This Act takes effect September 1, 2005.                           



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