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A BILL TO BE ENTITLED
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AN ACT
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relating to foreclosure of a property owners' association |
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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. PREREQUISITES TO FORECLOSURE: NOTICE AND |
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OPPORTUNITY TO CURE FOR CERTAIN OTHER LIENHOLDERS. (a) A property |
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owners' association may not foreclose a property owners' |
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association assessment lien on real property by giving notice of |
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sale under Section 51.002 or commencing a judicial foreclosure |
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action unless the association has: |
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(1) provided written notice of the total amount of the |
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delinquency giving rise to the foreclosure to any other holder of a |
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lien of record on the property whose lien: |
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(A) is first in priority; or |
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(B) if the assessment lien is first in priority, |
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is next in priority to the assessment lien; and |
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(2) provided the recipient of the notice an |
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opportunity to cure the delinquency before the 61st day after the |
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date the recipient receives the notice. |
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(b) Notice under this section must be sent by certified |
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mail, return receipt requested, to the address for the lienholder |
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shown in the deed records relating to the property that is subject |
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to the property owners' association assessment lien. |
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SECTION 2. The change in law made by this Act applies only |
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to a notice of sale given under Section 51.002, Property Code, on or |
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after the effective date of this Act or a judicial foreclosure |
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action commenced on or after the effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2011. |