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A BILL TO BE ENTITLED
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AN ACT
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relating to prohibiting a restrictive covenant granting a right of |
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first refusal to a property owners' association in certain |
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circumstances. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 202, Property Code, is amended by adding |
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Section 202.008 to read as follows: |
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Sec. 202.008. RIGHT OF FIRST REFUSAL PROHIBITED. (a) In |
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this section, "development period" means a period stated in a |
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declaration during which a declarant reserves: |
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(1) a right to facilitate the development, |
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construction, and marketing of the subdivision; |
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(2) a right to direct the size, shape, and composition |
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of the subdivision; or |
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(3) any other right customarily reserved by a |
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declarant for the benefit of developers and builders. |
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(b) To the extent a restrictive covenant provides a right of |
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first refusal for the sale or lease of a residential unit or |
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residential lot in favor of the property owners' association or the |
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association's members, the covenant is void. |
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(c) This section does not apply to a restrictive covenant |
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that provides a right of first refusal in favor of a developer or |
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builder during the development period. |
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SECTION 2. Section 202.008, Property Code, as added by this |
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Act, applies to a deed restriction enacted before, on, or after the |
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effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2010. |