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A BILL TO BE ENTITLED
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AN ACT
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relating to an exception to prohibition of fees for future transfer |
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of real property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 5, Property Code, is |
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amended by adding Section (4a) to Section 5.017 (c) as follows: |
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Sec. 5.017. FEE FOR FUTURE CONVEYANCE OF RESIDENTIAL REAL |
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PROPERTY AND RELATED LIEN PROHIBITED. (a) In this section, |
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"property owners' association" has the meaning assigned by Section |
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209.002. |
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(b) A deed restriction or other covenant running with the |
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land applicable to the conveyance of residential real property that |
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requires a transferee of residential real property or the |
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transferee's heirs, successors, or assigns to pay a declarant of |
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other person imposing the deed restriction or covenant on the |
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property or a third party designated by a transferor of the property |
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a fee in connection with a future transfer of the property is |
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prohibited. A deed restriction or other covenant running with the |
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land that violates this section or a lien purporting to encumber the |
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land to secure a right under a deed restriction or other covenant |
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running with the land that violates this section is void and |
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unenforceable. For purposes of this section, a conveyance of real |
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property includes a conveyance or other transfer of an interest or |
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estate in residential real property. |
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(c) This section does not apply to a deed restriction or |
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other covenant running with the land that requires a fee associated |
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with the conveyance of property in a subdivision that is payable to: |
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(1) a property owners' association that manages or |
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regulates the subdivision or the association's managing agent if |
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the subdivision contains more than one platted lot; |
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(2) an entity organized under Section 501(c)(3), |
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Internal Revenue Code of 1986; or
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(3) a governmental entity, or |
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(4) An entity other than a property owners association |
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that operates a golf course and country club in or adjacent to one |
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or more subdivisions where the owners of real property in such |
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subdivisions are required by deed restriction to obtain and |
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maintain a membership in such club. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |