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A BILL TO BE ENTITLED
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AN ACT
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relating to procedures required for the foreclosure of a property |
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owners' association's assessment lien. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 209, Property Code, is amended by adding |
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Section 209.0091 to read as follows: |
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Sec. 209.0091. JUDICIAL FORECLOSURE REQUIRED. (a) Except as |
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provided by Subsection (c), a property owners' association may not |
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foreclose a property owners' association assessment lien unless |
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the association first obtains a court order in an application for |
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expedited foreclosure under the rules adopted by the supreme court |
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under Subsection (b). A property owners association may utilize |
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the procedure described in this section in order to foreclose any |
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lien described in a dedicatory instrument. |
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(b) The supreme court, as an exercise of the court's |
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authority under Section 74.024, Government Code, shall adopt rules |
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establishing expedited foreclosure proceedings for use by a |
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property owners' association in foreclosing an assessment lien of |
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the association. The rules adopted under this subsection must be |
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substantially similar to the rules adopted by the supreme court |
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under Section 50(r), Article XVI, Texas Constitution. |
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(c) Expedited foreclosure is not required under this |
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section if the owner of the property that is subject to foreclosure |
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agrees in writing at the time the foreclosure is sought to waive |
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expedited foreclosure under this section. A waiver under this |
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subsection may not be required as a condition of the transfer of |
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title to real property. |
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SECTION 2. Subsection (a), Section 209.010, Property Code, |
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is amended to read as follows: |
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(a) A property owners' association that conducts a |
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foreclosure sale of an owner's lot must send to the lot owner not |
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later than the 30th day after the date of the foreclosure sale: |
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(1) a written notice stating the date and time the sale |
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occurred and informing the lot owner of the owner's right to redeem |
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the property under Section 209.011; and |
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(2) a copy of Section 209.011. |
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SECTION 3. (a) Section 209.0091, Property Code, as added by |
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this Act, applies only to a foreclosure sale that occurs after |
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January 1, 2010. A foreclosure sale that occurs on or before January |
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1, 2010, is governed by the law in effect immediately before the |
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effective date of this Act, and that law is continued in effect for |
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that purpose. |
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(b) Section 209.010(a), Property Code, as amended by this |
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Act, applies only to a foreclosure sale conducted on or after the |
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effective date of this Act. A foreclosure sale conducted 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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SECTION 4. Not later than January 1, 2010, the Supreme Court |
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of Texas shall adopt rules of civil procedure under Section |
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209.0091, Property Code, as added by this Act. |
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SECTION 5. This Act takes effect January 1, 2010. |