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A BILL TO BE ENTITLED
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AN ACT
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relating to the delivery of subdivision information by a property |
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owners' association to purchasers. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Section 207.003, Property Code, |
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is amended to read as follows: |
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Sec. 207.003. DELIVERY OF SUBDIVISION INFORMATION TO OWNER |
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OR PURCHASER. |
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SECTION 2. Section 207.003, Property Code, is amended by |
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amending Subsections (a), (b), and (f) and adding Subsections (a-1) |
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and (c-1) to read as follows: |
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(a) Not later than the 10th business day after the date a |
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written request for subdivision information is received from an |
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owner or the[,] owner's agent, a purchaser of property in a |
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subdivision or the purchaser's agent, or a title insurance company |
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or its agent acting on behalf of the owner or purchaser, payment for |
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the requested information is received, and the evidence of the |
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requestor's authority to order a resale certificate under |
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Subsection (a-1) is received and verified, the property owners' |
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association shall deliver to the owner or the[,] owner's agent, the |
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purchaser or the purchaser's agent, or the title insurance company |
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or its agent: |
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(1) a current copy of the restrictions applying to the |
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subdivision; |
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(2) a current copy of the bylaws and rules of the |
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property owners' association; and |
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(3) a resale certificate that complies with Subsection |
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(b). |
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(a-1) For a request from a purchaser of property in a |
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subdivision or the purchaser's agent, the property owners' |
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association may require the purchaser or purchaser's agent to |
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provide to the association, before the association begins the |
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process of preparing or delivers the items listed in Subsection |
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(a), reasonable evidence that the purchaser has a contractual or |
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other right to acquire property in the subdivision. |
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(b) A resale certificate under Subsection (a) must contain: |
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(1) a statement of any right of first refusal, other |
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than a right of first refusal that is prohibited by statute, and any |
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[or] other restraint contained in the restrictions or restrictive |
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covenants that restricts the owner's right to transfer the owner's |
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property; |
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(2) the frequency and amount of any regular |
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assessments; |
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(3) the amount of any special assessment that has been |
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approved as of [is due after] the date the resale certificate is |
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prepared; |
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(4) the total of all amounts due and unpaid to the |
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property owners' association that are attributable to the owner's |
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property; |
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(5) capital expenditures, if any, approved by the |
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property owners' association for the property owners' association's |
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current fiscal year; |
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(6) the amount of reserves, if any, for capital |
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expenditures; |
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(7) the property owners' association's current |
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operating budget and balance sheet; |
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(8) the total of any unsatisfied judgments against the |
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property owners' association; |
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(9) the style and cause number of any pending lawsuit |
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in which the property owners' association is a defendant, other |
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than a lawsuit relating to unpaid property taxes of an individual |
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member of the association; |
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(10) a copy of a certificate of insurance showing the |
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property owners' association's property and liability insurance |
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relating to the common areas and common facilities; |
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(11) a description of any conditions on the owner's |
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property that the property owners' association board has actual |
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knowledge are in violation of the restrictions applying to the |
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subdivision or the bylaws or rules of the property owners' |
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association; |
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(12) a summary or copy of notices received by the |
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property owners' association from any governmental authority |
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regarding health or housing code violations existing on the |
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preparation date of the certificate relating to the owner's |
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property or any common areas or common facilities owned or leased by |
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the property owners' association; |
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(13) the amount of any administrative transfer fee |
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charged by the property owners' association for a change of |
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ownership of property in the subdivision; |
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(14) the name, mailing address, and telephone number |
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of the property owners' association's managing agent, if any; [and] |
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(15) a statement indicating whether the restrictions |
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allow foreclosure of a property owners' association's lien on the |
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owner's property for failure to pay assessments; and |
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(16) a statement of all fees associated with the |
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transfer of ownership, including a description of each fee, to whom |
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each fee is paid, and the amount of each fee. |
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(c-1) A purchaser of the property shall pay the fee to the |
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property owners' association or its agent for issuing the resale |
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certificate unless otherwise agreed by the purchaser and seller of |
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the property. The property owners' association may require payment |
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before beginning the process of providing a resale certificate but |
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may not process a payment for a resale certificate until the |
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certificate is available for delivery. The association may not |
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charge a fee if the certificate is not provided in the time |
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prescribed by Subsection (a). |
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(f) Not later than the seventh business day after the date a |
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written request for an update of [to] a resale certificate |
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delivered under Subsection (a) is received from an owner, owner's |
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agent, or title insurance company or its agent acting on behalf of |
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the owner, the property owners' association shall deliver to the |
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owner, owner's agent, or title insurance company or its agent an |
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updated resale certificate that contains the following |
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information: |
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(1) if a right of first refusal or other restraint on |
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sale is contained in the restrictions, a statement of whether the |
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property owners' association waives the restraint on sale; |
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(2) the status of any unpaid special assessments, |
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dues, or other payments attributable to the owner's property; and |
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(3) any changes to the information provided in the |
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resale certificate issued under Subsection (a). |
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SECTION 3. The change in law made by this Act applies only |
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to a written request for subdivision information submitted on or |
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after the effective date of this Act. A written request for |
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subdivision information submitted before the effective date of this |
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Act is governed by the law in effect immediately before that date, |
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and that law is continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2011. |