81R21869 PMO-F

By: Darby, Deshotel H.B. No. 4219

Substitute the following for H.B. No. 4219:

By: Turner of Harris C.S.H.B. No. 4219

A BILL TO BE ENTITLED

AN ACT

relating to the prohibition of a fee associated with the transfer of real property.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 5.017(b), Property Code, is amended to read as follows:

(b) A deed restriction or other covenant running with the land applicable to the conveyance of [residential] real property that requires a transferor or a transferee of residential real property or the transferee's heirs, successors, or assigns to pay a declarant or other person imposing the deed restriction or covenant on the property or a third party designated by a transferor of the property a fee in connection with any [a future] transfer of the property is prohibited. A deed restriction or other covenant running with the land that violates this section or a lien purporting to encumber the land to secure a right under a deed restriction or other covenant running with the land that violates this section is void and unenforceable. For purposes of this section, a conveyance of real property includes a conveyance or other transfer of an interest or estate in residential real property.

SECTION 2. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2009.