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A BILL TO BE ENTITLED
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AN ACT
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relating to encumbrances that may be fixed on homestead property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 41.001(a) and (b), Property Code, are |
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amended to read as follows: |
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(a) A homestead and one or more lots used for a place of |
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burial of the dead are exempt from seizure for the claims of |
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creditors except for encumbrances described by Subsection (b) |
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[properly fixed on homestead property]. |
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(b) A homestead is not exempt from seizure as provided by |
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Subsection (a) for encumbrances that are [Encumbrances may be] |
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properly fixed on homestead property for: |
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(1) purchase money; |
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(2) taxes on the property; |
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(3) work and material used in constructing |
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improvements on the property if contracted for in writing as |
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provided by Sections 53.254(a), (b), and (c); |
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(4) an owelty of partition imposed against the |
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entirety of the property by a court order or by a written agreement |
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of the parties to the partition, including a debt of one spouse in |
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favor of the other spouse resulting from a division or an award of a |
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family homestead in a divorce proceeding; |
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(5) the refinance of a lien against a homestead, |
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including a federal tax lien resulting from the tax debt of both |
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spouses, if the homestead is a family homestead, or from the tax |
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debt of the owner; |
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(6) an extension of credit that meets the requirements |
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of Section 50(a)(6), Article XVI, Texas Constitution; or |
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(7) a reverse mortgage that meets the requirements of |
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Sections 50(k)-(p), Article XVI, Texas Constitution. |
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SECTION 2. Subchapter A, Chapter 41, Property Code, is |
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amended by adding Section 41.0011 to read as follows: |
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Sec. 41.0011. HOMESTEAD EXEMPT FROM SEIZURE FOR CERTAIN |
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ENCUMBRANCES. (a) In this section, "property owners' |
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association" has the meaning assigned by Section 202.001. |
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(b) An obligation to pay property owners' association fees |
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for maintenance and ownership of common facilities and services or |
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to pay other fees or fines imposed by a property owners' association |
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is a debt for which an encumbrance may be properly fixed on |
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homestead property. |
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(c) Homestead property is exempt from seizure for the claims |
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of creditors for an encumbrance described by Subsection (b). A |
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property owners' association may collect on an encumbrance |
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described by Subsection (b) properly fixed on homestead property at |
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the time the homestead property is transferred. Section 41.001(c) |
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does not apply to a claim of a property owners' association under |
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this section. |
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SECTION 3. This Act takes effect January 1, 2012, but only |
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if the constitutional amendment proposed by the 82nd Legislature, |
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Regular Session, 2011, permitting an encumbrance to be fixed on |
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homestead property for an obligation to pay certain property |
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owners' association fees and fines without permitting the forced |
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sale of the homestead takes effect. If that amendment is not |
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approved by the voters, this Act has no effect. |