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A BILL TO BE ENTITLED
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AN ACT
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relating to the extension of deed restrictions in certain |
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residential real estate subdivisions. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Chapter 210, Property Code, is |
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amended to read as follows: |
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CHAPTER 210. EXTENSION OR MODIFICATION OF RESIDENTIAL RESTRICTIVE |
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COVENANTS BY PETITION IN CERTAIN SUBDIVISIONS |
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SECTION 2. Title 11, Property Code, is amended by adding |
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Chapter 212 to read as follows: |
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CHAPTER 212. EXTENSION OF RESTRICTIONS BY MAJORITY VOTE IN CERTAIN |
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SUBDIVISIONS |
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Sec. 212.001. DEFINITIONS. In this chapter, "lienholder," |
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"owner," "restrictions," and "residential real estate subdivision" |
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or "subdivision" have the meanings assigned by Section 201.003. |
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Sec. 212.002. APPLICABILITY OF CHAPTER. This chapter |
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applies only to a residential real estate subdivision that: |
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(1) is located wholly or partly in a municipality with |
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a population of more than two million located in a county with a |
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population of 3.3 million or more; and |
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(2) is subject to restrictions the terms of which: |
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(A) provide that the restrictions expire; |
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(B) permit the restrictions to be extended after |
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the initial restriction period expires if a majority of the owners |
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of lots in the subdivision, by a written instrument that is |
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acknowledged and filed for record, signify consent to the extension |
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of the restrictions for a further period the maximum length of which |
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is specified by the restrictions; and |
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(C) do not expressly provide for or expressly |
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prohibit successive extensions of the restrictions after the |
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expiration of the initial extension period. |
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Sec. 212.003. PROCEDURE FOR SUCCESSIVE EXTENSIONS. (a) |
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Restrictions may be extended under this chapter by the written |
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consent of the owners of a majority of the lots in the subdivision, |
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without respect to the number of lots owned by a particular owner. |
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(b) Consent for the purposes of this section may be |
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reflected by an owner's signature on a petition or written ballot. |
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(c) Petitions, written ballots, or both may be distributed |
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to the owners of lots in the subdivision by any method, including |
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one or both of the following methods: |
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(1) by door-to-door circulation; or |
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(2) at a meeting of the owners of lots in the |
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subdivision called for the purpose of voting on the proposed |
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extension. |
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(d) The required signatures must be obtained during the same |
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extension period. The petitions, written ballots, or both, as |
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applicable, must be filed for record in the county in which the |
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subdivision is located before the earlier of: |
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(1) the first anniversary of the date on which the |
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first signature is obtained; or |
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(2) the expiration of the extension period during |
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which the signatures are collected. |
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(e) Restrictions may be extended under this chapter only |
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once during each unexpired extension period. |
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Sec. 212.004. EFFECT OF OWNER SIGNATURE. (a) The vote of |
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multiple owners of a lot may be reflected by the signature of one of |
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the owners. |
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(b) After an owner signs a petition or ballot under Section |
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212.003 or 212.007, the owner's subsequent conveyance of the |
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owner's interest in a lot or unplatted real property in the |
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subdivision does not affect the validity of the signature for the |
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purposes of that section. |
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Sec. 212.005. PROPERTY OWNERS' ASSOCIATION NOT REQUIRED. |
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Restrictions may be extended under this chapter without the |
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creation of or action by a property owners' association, homeowners |
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association, community association, civic club, or similar |
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organization. |
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Sec. 212.006. EFFECTIVE DATE OF EXTENSION; LENGTH OF |
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EXTENSION PERIOD. (a) An extension of restrictions under this |
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chapter takes effect on the date the petitions, written ballots, or |
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both, as applicable, sufficient to reflect the consent required by |
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Section 212.003 are filed and recorded in the real property records |
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of the county in which the subdivision is located. |
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(b) Subject to Section 212.007, an extension of |
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restrictions under this chapter is for a period equal to the |
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original term of the restrictions or a shorter period agreed to by |
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the owners of a majority of the lots in the subdivision in the |
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petitions, written ballots, or both, as applicable, signed under |
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Section 212.003. |
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Sec. 212.007. TERMINATION OF RESTRICTIONS. (a) |
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Restrictions extended under this chapter may be terminated before |
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their expiration date if: |
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(1) the consent of the owners of a majority of the lots |
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in the subdivision to the termination of the restrictions on a |
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specified date is obtained in the same manner as consent to the |
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extension of restrictions is obtained under this chapter; and |
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(2) the petitions, written ballots, or both, as |
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applicable, sufficient to reflect the required consent to |
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termination are filed for record in the real property records of the |
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county in which the subdivision is located before the earlier of: |
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(A) the first anniversary of the date on which |
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the first signature consenting to termination is obtained; or |
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(B) a date specified under Subsection (b)(2). |
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(b) Petitions, written ballots, or both, as applicable, |
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used to extend restrictions under this section may provide that: |
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(1) the restrictions may be terminated only on one or |
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more termination dates specified in the petitions, written ballots, |
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or both, as applicable, used to extend the restrictions; or |
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(2) the petitions, written ballots, or both, as |
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applicable, sufficient to reflect the required consent to |
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termination must be filed for record before a time specified in the |
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petitions, written ballots, or both, as applicable. |
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Sec. 212.008. APPLICABILITY OF EXTENDED RESTRICTIONS. (a) |
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An extension of restrictions under this chapter is binding on all |
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lots and all unplatted real property in the subdivision, without |
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regard to whether the owner or owners of any individual lot or |
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unplatted real property signify consent to extend the restrictions. |
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Any statute authorizing a property owner to opt out of the |
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applicability of restrictions to the owner's property does not |
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apply to restrictions extended under this chapter. |
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(b) An extension of restrictions under this chapter is |
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binding on a lienholder or a person who acquires title to property |
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at a foreclosure sale or by deed from a foreclosing lienholder. |
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Sec. 212.009. UNCONSTITUTIONAL RESTRICTIONS NOT EXTENDED. |
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If a provision in restrictions extended under this chapter is void |
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and unenforceable under the United States Constitution, the |
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restrictions are considered as if the void and unenforceable |
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provision was never contained in the restrictions. |
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Sec. 212.010. USE OF ORIGINAL EXTENSION PROCEDURE; |
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PROCEDURES CUMULATIVE. (a) In addition to the procedure provided |
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by this chapter for the extension of restrictions, the procedure |
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provided by the original restrictions for the initial extension of |
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the restrictions, including the requirement that a specified |
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percentage of a specified class approve the extension, may be used |
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for successive extensions of the original restrictions, provided |
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that the approval obtained includes the approval of the owners of |
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not less than a majority of the lots in the subdivision. |
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(b) An extension of the restrictions as described by |
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Subsection (a) is for a period equal to the original term of the |
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restrictions or a shorter period agreed to by the owners of a |
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majority of the lots in the subdivision. |
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(c) The procedure provided by this chapter for the extension |
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or termination of restrictions is cumulative of and not in lieu of |
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any other method by which restrictions of a subdivision to which |
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this chapter applies may be added to, modified, created, extended, |
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or terminated. |
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Sec. 212.011. CONSTRUCTION OF CHAPTER AND EXTENDED |
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RESTRICTIONS. (a) This chapter and any petition or ballot made or |
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action taken in connection with an attempt to comply with this |
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chapter shall be liberally construed to effectuate the intent of |
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this chapter and the petition, ballot, or action. |
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(b) A deed restriction that is extended under this chapter |
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shall be liberally construed to give effect to the restriction's |
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purposes and intent. |
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SECTION 3. 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, 2011. |