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A BILL TO BE ENTITLED
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AN ACT
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relating to prohibiting fees for future transfers of real property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 5, Property Code, is |
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amended by adding Section 5.016 to read as follows: |
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Sec. 5.016. FEE FOR FUTURE TRANSFERS OF REAL PROPERTY |
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PROHIBITED. (a) A deed restriction or other covenant running with |
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the land applicable to the transfer of real property that requires a |
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transferee of real property or the transferee's heirs, successors, |
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or assigns to pay a declarant or other person imposing the deed |
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restriction or covenant on the property or a third party designated |
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by a transferor of the property, other than a properly created |
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property owners' association or its agent, a fee in connection with |
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a future transfer of the property is prohibited. A deed restriction |
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or other covenant running with the land that violates this section |
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or a lien purporting to secure a right under a deed restriction or |
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other covenant running with the land that violates this section is |
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void and unenforceable. For purposes of this section, a transfer of |
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real property includes a conveyance or other transfer of an |
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interest or estate in real property. |
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(b) This section does not apply to a fee associated with the |
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transfer of property in a subdivision that is managed or regulated |
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by a property owners' association and that contains more than one |
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platted lot. |
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SECTION 2. The change in law made by this Act applies only |
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to a transfer of property that occurs on or after the effective date |
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of this Act. A transfer of property that occurs before the |
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effective date of this Act is covered by the law in effect |
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immediately before that date, and that law remains in effect for |
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that purpose. For the purposes of this section, a transfer of |
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property occurs before the effective date of this Act if an |
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executory contract binding a purchaser to purchase the property is |
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executed before that date. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |