By: Anderson of Dallas H.B. No. 1821

A BILL TO BE ENTITLED

AN ACT

relating to the delivery of subdivision information by a property owners' association to purchasers.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. The heading to Section 207.003, Property Code, is amended to read as follows:

Sec. 207.003. DELIVERY OF SUBDIVISION INFORMATION TO OWNER OR PURCHASER

SECTION 2. Subsections (a)-(f), Section 207.003, Property Code, are amended to read as follows:

(a) Not later than the 10th business day after the date a written request for subdivision information an association disclosure statement is received from an owner, owner's agent, purchaser of property in a subdivision, such purchaser's agent, or title insurance company or its agent acting on behalf of the owner or purchaser, the property owners' association shall deliver to the owner, owner's agent, purchaser, purchaser's agent, or title insurance company or its agent, the items listed below in this Subsection (a). In the case of a request by a purchaser of property in a subdivision or such purchaser's agent, prior to delivering the items listed below, the property owners' association shall be entitled to require that such purchaser or purchaser's agent provide to the property owners' association reasonable evidence that such purchaser has a contractual or other right to acquire property in the subdivision.

(1) a current copy of the restrictions applying to the subdivision;

(2) a current copy of the bylaws and rules of the property owners' association; and

(3) an resale certificate association disclosure statement that complies with Subsection (b).

(b) An resale certificate association disclosure statement under Subsection (a) must contain:

(1) a statement of any right of first refusal, other than a right of first refusal that is prohibited by statute, and any [or] other restraint contained in the restrictions or restrictive covenants that restricts the owner's right to transfer the owner's property;

(2) the frequency and amount of any regular assessments;

(3) the amount of any special assessment that has been approved as of is due after the date the resale certificate association disclosure statement is prepared;

(4) the total of all amounts due and unpaid to the property owners' association that are attributable to the owner's property;

(5) capital expenditures, if any, approved by the property owners' association for the property owners' association's current fiscal year;

(6) the amount of reserves, if any, for capital expenditures;

(7) the property owners' association's current operating budget and balance sheet;

(8) the total of any unsatisfied judgments against the property owners' association;

(9) the style and cause number of any pending lawsuit in which the property owners' association is a defendant, other than a lawsuit relating to unpaid property taxes of an individual member of the association;

(10) a copy of a certificate of insurance showing the property owners' association's property and liability insurance relating to the common areas and common facilities;

(11) a description of any conditions on the owner's property that the property owners' association board has actual knowledge are in violation of the restrictions applying to the subdivision or the bylaws or rules of the property owners' association;

(12) a summary or copy of notices received by the property owners' association from any governmental authority regarding health or housing code violations existing on the preparation date of the certificate relating to the owner's property or any common areas or common facilities owned or leased by the property owners' association;

(13) the amount of any administrative transfer fee charged by the property owners' association for a change of ownership of property in the subdivision;

(14) the name, mailing address, and telephone number of the property owners' association's managing agent, if any; [and]

(15) a statement indicating whether the restrictions allow foreclosure of a property owners' association's lien on the owner's property for failure to pay assessments; and

(16) a statement of all fees associated with the transfer of ownership, including a description of each fee, to whom each fee is paid, and the amount of each fee.

(c) A property owners' association may charge a reasonable fee to assemble, copy, and deliver the information required by this section and may charge a reasonable fee to prepare and deliver an update of an resale certificate association disclosure statement under Subsection (f). The party requesting an association disclosure statement described in Subsection (a) shall be responsible for payment of any fee charged for such an association disclosure statement.

(d) The property owners' association shall deliver the information required by Subsection (a) or (f) to the person specified in the written request. A written request that does not specify the name and location to which the information is to be sent is not effective. The property owners' association may deliver the information required by Subsection (a) and any update to the resale certificate association disclosure statement required by Subsection (f) by mail, hand delivery, or alternative delivery means specified in the written request.

(e) Unless required by a dedicatory instrument, neither a property owners' association or its agent is required to inspect a property before issuing an resale certificate association disclosure statement or an update to an resale certificate association disclosure statement.

(f) Not later than the seventh business day after the date a written request for an update to an resale certificate association disclosure statement delivered under Subsection (a) is received from an owner, owner's agent, or title insurance company or its agent acting on behalf of the owner, the property owners' association shall deliver to the owner, owner's agent, or title insurance company or its agent an updated resale certificate association disclosure statement that contains the following information:

(1) if a right of first refusal or other restraint on sale is contained in the restrictions, a statement of whether the property owners' association waives the restraint on sale;

(2) the status of any unpaid special assessments, dues, or other payments attributable to the owner's property; and

(3) any changes to the information provided in the resale certificate association disclosure statement issued under Subsection (a).

SECTION 3. The change in law made by this Act applies only to a written request for subdivision information submitted on or after the effective date of this Act. A written request for subdivision information submitted before the affective date of this Act is governed by the law in effect immediately before that date, and that law is continued in effect for that purpose.

SECTION 4. This Act takes effect September 1, 2011.