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A BILL TO BE ENTITLED
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AN ACT
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relating to the operation of property owners' associations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 5.006(a), Property Code, is amended to |
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read as follows: |
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(a) In an action based on breach of a restrictive covenant |
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or a statute pertaining to real property, the court may [shall] |
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allow to a prevailing party [who asserted the action] reasonable |
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attorney's fees in addition to the party's costs and claim. |
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SECTION 2. Section 5.012, Property Code, is amended by |
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amending Subsection (a) and adding Subsections (f) and (g) to read |
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as follows: |
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(a) A seller of residential real property that is subject to |
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membership in a property owners' association and that comprises not |
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more than one dwelling unit located in this state shall give to the |
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purchaser of the property a written notice that reads substantially |
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similar to the following: |
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NOTICE OF MEMBERSHIP IN PROPERTY OWNERS' ASSOCIATION CONCERNING THE |
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PROPERTY AT (street address) (name of residential community) |
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As a purchaser of property in the residential community in |
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which this property is located, you are obligated to be a member of |
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a property owners' association. Restrictive covenants governing |
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the use and occupancy of the property and all [a] dedicatory |
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instruments [instrument] governing the establishment, maintenance, |
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or [and] operation of this residential community have been or will |
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be recorded in the Real Property Records of the county in which the |
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property is located. Copies of the restrictive covenants and |
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dedicatory instruments [instrument] may be obtained from the county |
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clerk. |
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You are obligated to pay assessments to the property owners' |
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association. The amount of the assessments is subject to change. |
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Your failure to pay the assessments could result in a lien on and |
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the foreclosure of your property. |
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Section 207.003, Property Code, entitles an owner to receive |
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copies of any document that governs the establishment, maintenance, |
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or operation of a subdivision, including, but not limited to, |
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restrictions, bylaws, rules and regulations, and a resale |
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certificate from a property owners' association. A resale |
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certificate contains information including, but not limited to, |
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statements specifying the amount and frequency of regular |
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assessments and the style and cause number of lawsuits to which the |
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property owners' association is a party. These documents must be |
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made available to you by the seller on your request. |
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Date: ____________________________________________ |
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Signature of Purchaser |
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(f) On the purchaser's request for a resale certificate from |
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the seller, the seller shall: |
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(1) promptly deliver a copy of a current resale |
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certificate if one has been issued for the property under Chapter |
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207; or |
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(2) if the seller does not have a current resale |
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certificate: |
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(A) request the property owners' association or |
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its agent to issue a resale certificate under Chapter 207; and |
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(B) promptly deliver a copy of the resale |
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certificate to the purchaser on receipt of the resale certificate |
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from the property owners' association or its agent. |
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(g) The seller or the purchaser, as agreed to by the |
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parties, shall pay the fee to the property owners' association or |
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its agent for issuing the resale certificate under Chapter 207 |
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within ten days of delivery of the resale certificate. |
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SECTION 3. Subsection (b), Section 207.003, Property Code, |
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is amended to read as follows: |
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(b) A resale certificate under Subsection (a) must contain: |
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(1) a statement of any right of first refusal or other |
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restraint contained in the restrictions or restrictive covenants |
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that restricts the owner's right to transfer the owner's property; |
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(2) the frequency and amount of any regular |
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assessments; |
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(3) the amount of any special assessment that is due |
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after the date the resale certificate is prepared; |
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(4) the total of all amounts due and unpaid to the |
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property owners' association that are attributable to the owner's |
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property; |
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(5) capital expenditures, if any, approved by the |
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property owners' association for the property owners' association's |
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current fiscal year; |
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(6) the amount of reserves, if any, for capital |
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expenditures; |
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(7) the property owners' association's current |
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operating budget and balance sheet; |
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(8) the total of any unsatisfied judgments against the |
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property owners' association; |
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(9) the style and cause number of any pending lawsuit |
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in which the property owners' association is a party, other than a |
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lawsuit relating to unpaid property taxes of an individual member |
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of the association [defendant]; |
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(10) a copy of a certificate of insurance showing the |
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property owners' association's property and liability insurance |
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relating to the common areas and common facilities; |
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(11) a description of any conditions on the owner's |
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property that the property owners' association board has actual |
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knowledge are in violation of the restrictions applying to the |
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subdivision or the bylaws or rules of the property owners' |
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association; |
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(12) a summary or copy of notices received by the |
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property owners' association from any governmental authority |
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regarding health or housing code violations existing on the |
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preparation date of the certificate relating to the owner's |
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property or any common areas or common facilities owned or leased by |
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the property owners' association; |
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(13) the amount of any administrative transfer fee |
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charged by the property owners' association for a change of |
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ownership of property in the subdivision; |
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(14) the name, mailing address, and telephone number |
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of the property owners' association's managing agent, if any; [and] |
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(15) a statement indicating whether the restrictions |
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allow foreclosure of a property owners' association's lien on the |
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owner's property for failure to pay assessments; and |
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(16) a statement of all fees associated with the |
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transfer of ownership, including a description of each fee, to whom |
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each fee is paid, and the amount of each fee. |
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SECTION 4. (a) Subsection (a), Section 5.006, Property |
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Code, as amended by this Act, applies only to an action filed on or |
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after the effective date of this Act. An action filed before the |
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effective date of this Act is governed by the law in effect |
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immediately before the effective date of this Act, and that law is |
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continued in effect for that purpose. |
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(b) Section 5.012, Property Code, as amended by this Act, |
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applies only to a sale of property that occurs on or after the |
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effective date of this Act. For the purposes of this section, a |
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sale of property occurs before the effective date of this Act if the |
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executory contract binding the purchaser to purchase the property |
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is executed before that date. A sale of property that occurs before |
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the effective date of this Act is governed by the law in effect |
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immediately before that date, and that law is continued in effect |
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for that purpose. |
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SECTION 5. This Act takes effect January 1, 2010. |