By: West  S.B. No. 235
         (In the Senate - Filed November 10, 2008; February 11, 2009,
  read first time and referred to Committee on Intergovernmental
  Relations; March 9, 2009, reported favorably by the following
  vote:  Yeas 4, Nays 0; March 9, 2009, sent to printer.)
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to prohibiting a restrictive covenant granting a right of
  first refusal to a property owners' association in certain
  circumstances.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 202, Property Code, is amended by adding
  Section 202.008 to read as follows:
         Sec. 202.008.  RIGHT OF FIRST REFUSAL PROHIBITED. (a)  In
  this section, "development period" means a period stated in a
  declaration during which a declarant reserves:
               (1)  a right to facilitate the development,
  construction, and marketing of the subdivision;
               (2)  a right to direct the size, shape, and composition
  of the subdivision; or
               (3)  any other right customarily reserved by a
  declarant for the benefit of developers and builders.
         (b)  To the extent a restrictive covenant provides a right of
  first refusal for the sale or lease of a residential unit or
  residential lot in favor of the property owners' association or the
  association's members, the covenant is void.
         (c)  This section does not apply to a restrictive covenant
  that provides a right of first refusal in favor of a developer or
  builder during the development period.
         SECTION 2.  Section 202.008, Property Code, as added by this
  Act, applies to a deed restriction enacted before, on, or after the
  effective date of this Act.
         SECTION 3.  This Act takes effect January 1, 2010.
 
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