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A BILL TO BE ENTITLED
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AN ACT
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relating to the extension or amendment of deed restrictions in |
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certain older subdivisions. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 11, Property Code, is amended by adding |
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Chapter 216 to read as follows: |
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CHAPTER 216. EXTENSION OR AMENDMENT OF RESTRICTIONS IN CERTAIN |
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OLDER SUBDIVISIONS |
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Sec. 216.001. DEFINITIONS. In this chapter: |
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(1) "Dedicatory instrument" has the meaning assigned |
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by Section 202.001. |
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(2) "Lienholder" and "owner" have the meanings |
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assigned by Section 201.003. |
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(3) "Older subdivision" means a subdivision described |
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by a recorded map or plat filed before 1947 in the real property |
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records of the county in which the subdivision is located. |
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(4) "Petition" has the meaning assigned by Section |
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202.001. |
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(5) "Property owners' association" means an |
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incorporated or unincorporated homeowners' association, community |
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association, civic club, or similar entity that: |
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(A) has a membership primarily consisting of the |
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owners of real property in a subdivision; and |
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(B) supports the enforcement of or promotes the |
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observance of the deed restrictions applicable to all or part of the |
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property located in the subdivision. |
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(6) "Restrictions" has the meaning assigned by Section |
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209.002. |
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(7) "Subdivision" means land that: |
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(A) consists of multiple sections that have each |
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been divided into two or more parts on a map or plat that has been |
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recorded in the real property records of a county; and |
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(B) is or was subject to restrictions that: |
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(i) limit a majority of the land, excluding |
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streets and public areas, to residential use; and |
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(ii) were recorded in the real property |
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records of the county. |
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Sec. 216.002. FINDINGS AND PURPOSE. (a) The legislature |
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finds that: |
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(1) the inability of owners to extend or amend |
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property restrictions in older subdivisions in which no zoning |
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regulations apply creates uncertainty in living conditions and |
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discourages investments in those subdivisions; |
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(2) owners in affected older subdivisions are |
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reluctant or unable to provide proper maintenance, upkeep, and |
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repairs of structures because of the inability to amend the |
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restrictions in response to changing circumstances; |
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(3) these conditions will cause dilapidation of |
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housing and other structures and cause unhealthful and unsanitary |
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conditions in affected older subdivisions, contrary to the health, |
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safety, and welfare of the public; and |
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(4) the existence of race-related covenants in |
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restrictions, regardless of their unenforceability, is offensive, |
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repugnant, and harmful to members of racial or ethnic minority |
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groups and public policy requires that those covenants be removed. |
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(b) The purpose of this chapter is to provide a procedure |
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for extending or amending restrictions for certain older |
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subdivisions, including the removal of any restriction relating to |
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race, religion, or national origin that is void and unenforceable |
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under the United States Constitution or Section 5.026. |
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Sec. 216.003. APPLICABILITY OF CHAPTER. (a) This chapter |
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applies only to an older subdivision that: |
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(1) is wholly or partly located in a municipality with |
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a population of two million or more; |
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(2) had original restrictions that: |
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(A) did not have an express procedure that |
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provides for successive extensions of the restrictions; |
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(B) did not have an express procedure for |
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amending the restrictions; |
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(C) could not be amended without the unanimous |
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consent of: |
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(i) all owners in the subdivision; or |
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(ii) all owners in any section of the |
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subdivision; or |
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(D) may no longer be valid due to an inability to |
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extend or amend the restrictions; and |
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(3) has a single property owners' association in which |
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all owners in the subdivision are eligible for membership but in |
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which membership is not mandatory. |
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(b) This chapter applies to a restriction regardless of the |
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date on which the restriction was created. |
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(c) This chapter supersedes any contrary requirement for |
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the extension or amendment of a restriction in a dedicatory |
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instrument of a subdivision to which this chapter applies. |
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(d) This chapter does not apply to: |
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(1) a residential subdivision described by Section |
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209.0041(b); or |
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(2) a condominium, as defined by Section 81.002 or |
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82.003. |
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Sec. 216.004. AMENDMENT OF RESTRICTIONS. (a) For purposes |
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of this chapter, the amendment of restrictions includes the |
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adoption of new restrictions or the modification or removal of |
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existing restrictions. |
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(b) An amendment of restrictions under this chapter may not |
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create a property owners' association with mandatory membership. |
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An amendment of restrictions under this chapter that creates a |
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property owners' association with mandatory membership is void. |
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Sec. 216.005. PROPERTY OWNERS' ASSOCIATION ACTION NOT |
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REQUIRED. Except as provided by Section 216.008, restrictions may |
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be extended or amended under this chapter without action by the |
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property owners' association. |
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Sec. 216.006. EXTENSION OF RESTRICTIONS. (a) Restrictions |
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may be extended as provided by Section 216.007 or, if a dedicatory |
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instrument provides a procedure for an initial extension of the |
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original restrictions, that procedure may be used for successive |
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extensions of the original restrictions unless the dedicatory |
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instrument expressly prohibits the procedure from being used for |
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successive extensions. If the dedicatory instrument prohibits the |
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procedure from being used to provide for automatic extension of |
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restrictions, the procedure may not be used under this subsection |
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to provide for automatic extension of the restrictions. |
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(b) A provision in a dedicatory instrument that prohibits |
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the extension of an existing restriction during a certain period |
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does not apply to a successive extension under a procedure for |
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initial extension of original restrictions under Subsection (a). |
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(c) An extension of restrictions under this chapter may: |
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(1) be for a period equal to the original term of the |
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restrictions or a shorter period; and |
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(2) subject to Subsection (a), provide for additional |
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automatic extensions of the term of the restrictions for a period of |
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not more than 10 years for each extension. |
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(d) A dedicatory instrument that provides for the extension |
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of restrictions and does not provide for amendment of restrictions |
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may be amended under this chapter, including by amending the |
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provision providing for the extension of the restrictions. |
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Sec. 216.007. CONSENT REQUIRED FOR EXTENSION OR AMENDMENT |
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OF RESTRICTIONS. (a) A restriction may be extended or amended by a |
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petition or ballots that indicate the written consent of the owners |
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of at least 66.6 percent of the total number of separately owned |
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parcels or tracts in the subdivision, regardless of whether the |
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parcels or tracts contain part or all of one or more platted lots or |
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combination of lots. |
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(b) A restriction that is extended or amended as described |
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by Subsection (a) applies to all sections of the subdivision, |
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including any annex, to the extent that the extended or amended |
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restriction expressly applies to the entire subdivision, |
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regardless of whether: |
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(1) each section has separate restrictions; or |
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(2) each owner is a member of the property owners' |
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association. |
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(c) If the original restrictions for a subdivision contain a |
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lower percentage to extend or amend the restrictions, the |
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percentage in the original restrictions controls. |
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Sec. 216.008. PETITION OR BALLOTS. (a) After receiving |
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written approval of a petition or ballot by the property owners' |
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association, the petition or ballots for the extension or amendment |
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of restrictions must be distributed to the owners in the |
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subdivision by any public method, including: |
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(1) by United States mail; |
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(2) by electronic mail or other method of electronic |
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transmission or publication, including publication on an Internet |
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website; |
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(3) by door-to-door circulation; |
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(4) by publication in a newspaper or similar |
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publication of general circulation in the municipality in which the |
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subdivision is located; or |
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(5) at a meeting of the owners in the subdivision |
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called for the purpose of voting on the proposed extension or |
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amendment. |
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(b) The petition or ballots may be provided to owners in |
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separate documents. The separate documents are considered to be |
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one instrument. |
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(c) If a restriction is amended under this chapter, a |
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petition or ballot for a subsequent amendment of the restrictions |
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may not be distributed under Subsection (a) before the fifth |
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anniversary of the effective date of the amended restriction under |
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Section 216.010. |
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Sec. 216.009. EFFECT OF OWNER'S SIGNATURE. (a) An owner's |
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signature on a petition or ballot conclusively establishes the |
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owner's consent for the purposes of this chapter. |
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(b) The vote of multiple owners of a lot, parcel, or tract |
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may be reflected by the signature of one of the owners. |
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(c) After an owner signs a petition or ballot for an |
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extension or amendment of a restriction, the owner's subsequent |
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conveyance of the owner's interest in real property in the |
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subdivision covered by the extension or amendment does not affect |
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the validity of the signature for the purposes of the petition or |
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ballot. |
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Sec. 216.010. EFFECTIVE DATE OF EXTENSION OR AMENDMENT. An |
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extension or amendment of a restriction under this chapter takes |
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effect on the date the extension or amendment and the petition or |
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ballots that reflect the written consent of the required number of |
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owners in the subdivision for the adoption of the extension or |
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amendment are filed and recorded in the real property records of the |
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county in which the subdivision is located. |
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Sec. 216.011. APPLICABILITY OF EXTENSION OR AMENDMENT. (a) |
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An extension or amendment of a restriction under this chapter is |
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binding on a lot, parcel, or tract in the subdivision as provided by |
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the restriction, regardless of whether the owner or owners of the |
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lot, parcel, or tract consented to the extension or amendment. |
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(b) Notwithstanding any other law, an owner may not opt out |
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of the applicability to the owner's property of a restriction that |
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is extended or amended under this chapter. |
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(c) An extension or amendment of a restriction under this |
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chapter is binding on a lienholder or a person who acquires title to |
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property at a foreclosure sale or by deed from a foreclosing |
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lienholder. |
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Sec. 216.012. UNCONSTITUTIONAL RESTRICTIONS NOT EXTENDED. |
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If a provision in restrictions extended under this chapter is void |
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and unenforceable under the United States Constitution or Section |
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5.026, the restrictions are considered as if the void and |
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unenforceable provision was never contained in the restrictions. |
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Sec. 216.013. PROCEDURES CUMULATIVE. The procedure |
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provided by this chapter for the extension or amendment of |
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restrictions is cumulative of and not in lieu of any other method by |
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which restrictions of a subdivision to which this chapter applies |
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may be extended or amended. |
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Sec. 216.014. CONSTRUCTION OF CHAPTER AND RESTRICTIONS. |
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(a) This chapter and any petition or ballot made or action taken in |
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connection with an attempt to comply with this chapter shall be |
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liberally construed to effectuate the intent of this chapter and |
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the petition, ballot, or action. |
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(b) A restriction that is extended or amended under this |
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chapter shall be liberally construed to give effect to the |
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restriction's purposes and intent. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2021. |
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