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A BILL TO BE ENTITLED
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AN ACT
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relating to the requirements for recording a property owners' |
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association management certificate. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 209.004, Property Code, is amended by |
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amending Subsections (a) and (c) and adding Subsections (d), (e), |
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and (f) to read as follows: |
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(a) A property owners' association shall record in each |
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county in which any portion of the residential subdivision is |
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located a management certificate, signed and acknowledged by an |
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officer or the managing agent of the association, stating: |
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(1) the name of the subdivision; |
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(2) the name of the association; |
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(3) the recording data for the subdivision; |
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(4) the recording data for the declaration; |
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(5) the name and mailing address of the association; |
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(6) [or] the name and mailing address of the person |
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managing the association or the association's designated |
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representative; and |
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(7) [(6)] other information the association considers |
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appropriate. |
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(c) Except as provided under Subsections (d) and (e), the |
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[The] property owners' association and its officers, directors, |
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employees, and agents are not subject to liability to any person for |
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a delay in recording or failure to record a management certificate, |
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unless the delay or failure is wilful or caused by gross negligence. |
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(d) If a property owners' association fails to record a |
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management certificate or an amended management certificate under |
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this section, the purchaser, lender, or title insurance company or |
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its agent in a transaction involving property in the property |
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owners' association is not liable to the property owners' |
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association for: |
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(1) any amount due to the association on the date of a |
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transfer to a bona fide purchaser; and |
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(2) any debt to or claim of the association that |
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accrued before the date of a transfer to a bona fide purchaser. |
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(e) A lien of a property owners' association that fails to |
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file a management certificate or an amended management certificate |
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under this section to secure an amount due on the effective date of |
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a transfer to a bona fide purchaser is enforceable only for an |
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amount incurred after the effective date of sale. |
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(f) For purposes of this section, "bona fide purchaser" |
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means: |
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(1) a person who pays valuable consideration without |
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notice of outstanding rights of others and acts in good faith; or |
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(2) a third-party lender who acquires a security |
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interest in the property under a deed of trust. |
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SECTION 2. The change in law made by this Act applies only |
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to a transfer of an interest to a bona fide purchaser on or after the |
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effective date of this Act. A transfer of an interest to a bona fide |
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purchaser before the effective date of this Act is covered by the |
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law in effect when the transaction occurred, and the former law is |
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continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2009. |