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A BILL TO BE ENTITLED
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AN ACT
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relating to the procedures required for the foreclosure of a |
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property 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 |
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as provided by Subsection (d), a property owners' association may |
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not 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). |
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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. Except as provided by this section, the rules |
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adopted under this subsection must be substantially similar to the |
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rules adopted by the supreme court under Section 50(r), Article |
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XVI, Texas Constitution. |
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(c) Rules adopted under Subsection (b) must require |
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personal service on the record owners of the property of a copy of |
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the notice and application for foreclosure of the lien. |
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(d) 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. (a) Section 209.0091, Property Code, as added |
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by this Act, applies only to a foreclosure sale that occurs after |
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January 1, 2012. A foreclosure sale that occurs on or before |
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January 1, 2012, is governed by the law in effect immediately before |
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the effective date of this Act, and that law is continued in effect |
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for that purpose. |
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(b) Not later than January 1, 2012, the Supreme Court of |
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Texas shall adopt rules of civil procedure under Section 209.0091, |
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Property Code, as added by this Act. |
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SECTION 3. This Act takes effect September 1, 2011. |