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A BILL TO BE ENTITLED
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AN ACT
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relating to the recovery of attorney's fees in foreclosure actions |
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by property owners' associations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 209.008, Property Code, is amended by |
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amending Subsection (a) and adding Subsection (h) to read as |
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follows: |
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(a) Except as provided by this section, a [A] property |
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owners' association may collect reimbursement of reasonable |
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attorney's fees and other reasonable costs incurred by the |
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association relating to collecting amounts, including damages, due |
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the association for enforcing restrictions or the bylaws or rules |
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of the association only if the owner is provided a written notice |
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that attorney's fees and costs will be charged to the owner if the |
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delinquency or violation continues after a date certain. |
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(h) Notwithstanding Subsection (f), an owner is not liable |
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for attorney's fees incurred by the property owners' association in |
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judicially or nonjudicially foreclosing the association's |
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assessment lien on the owner's property. |
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SECTION 2. (a) Except as provided by this section, the |
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change in law made by this Act applies only to a judicial |
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foreclosure in which an action is commenced or a nonjudicial |
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foreclosure in which a notice of default under Section 51.002, |
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Property Code, is given on or after the effective date of this Act. |
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A foreclosure in which an action is commenced or a notice of default |
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is given before the effective date of this Act is governed by the |
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law in effect immediately before the effective date of this Act, and |
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that law is continued in effect for that purpose. |
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(b) The change in law made by this Act does not apply to |
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liability for attorney's fees incurred before the effective date of |
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this Act. Liability for attorney's fees incurred 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 3. This Act takes effect September 1, 2011. |