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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. Subsections (a)-(f), Section 207.003, Property |
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Code, are amended 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 an association |
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disclosure statement is received from an owner, owner's agent, |
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purchaser of property in a subdivision, such purchaser's agent, or |
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title insurance company or its agent acting on behalf of the owner |
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or purchaser, the property owners' association shall deliver to the |
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owner, owner's agent, purchaser, purchaser's agent, or title |
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insurance company or its agent, the items listed below in this |
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Subsection (a). In the case of a request by a purchaser of property |
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in a subdivision or such purchaser's agent, prior to delivering the |
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items listed below, the property owners' association shall be |
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entitled to require that such purchaser or purchaser's agent |
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provide to the property owners' association reasonable evidence |
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that such purchaser has a contractual or other right to acquire |
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property in the subdivision. |
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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) an resale certificate association disclosure |
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statement that complies with Subsection (b). |
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(b) An resale certificate association disclosure statement |
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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 |
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association disclosure statement is 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) A property owners' association may charge a reasonable |
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fee to assemble, copy, and deliver the information required by this |
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section and may charge a reasonable fee to prepare and deliver an |
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update of an resale certificate association disclosure statement |
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under Subsection (f). The party requesting an association |
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disclosure statement described in Subsection (a) shall be |
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responsible for payment of any fee charged for such an association |
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disclosure statement. |
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(d) The property owners' association shall deliver the |
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information required by Subsection (a) or (f) to the person |
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specified in the written request. A written request that does not |
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specify the name and location to which the information is to be sent |
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is not effective. The property owners' association may deliver the |
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information required by Subsection (a) and any update to the resale
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certificate association disclosure statement required by |
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Subsection (f) by mail, hand delivery, or alternative delivery |
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means specified in the written request. |
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(e) Unless required by a dedicatory instrument, neither a |
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property owners' association or its agent is required to inspect a |
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property before issuing an resale certificate association |
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disclosure statement or an update to an resale certificate |
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association disclosure statement. |
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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 to an resale certificate association |
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disclosure statement delivered under Subsection (a) is received |
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from an owner, owner's agent, or title insurance company or its |
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agent acting on behalf of the owner, the property owners' |
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association shall deliver to the owner, owner's agent, or title |
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insurance company or its agent an updated resale certificate |
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association disclosure statement 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 association disclosure statement issued under |
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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. |