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A BILL TO BE ENTITLED
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AN ACT
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relating to certain residential property interests controlled by |
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certain entities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 12, Property Code, is amended by adding |
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Chapter 223 to read as follows: |
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CHAPTER 223. BUSINESS ENTITY-OWNED RESIDENTIAL ARRANGEMENTS |
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Sec. 223.001. DEFINITIONS. In this chapter: |
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(1) "Business entity" means a partnership, |
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corporation, joint venture, limited liability company, or other |
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business organization or business association, however organized. |
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(2) "Managing entity" means a business entity that |
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owns residential property used in a residential arrangement. |
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(3) "Residential arrangement" means an arrangement in |
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which the purchaser of an interest in a business entity is entitled |
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to exclusive possession of residential property owned by the entity |
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as long as the purchaser holds the interest in the business entity. |
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(4) "Residential property" means the real property and |
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improvements for a single-family house, duplex, triplex, or |
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quadruplex. |
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Sec. 223.002. APPLICABILITY. This chapter does not apply |
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to a timeshare plan, as defined by Section 221.002. |
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Sec. 223.003. AGREEMENTS AND RULES. (a) An agreement for |
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the purchase of an interest in a managing entity must disclose to |
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the purchaser that the agreement is for the purchase of an interest |
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in the entity and not in any residential property itself. |
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(b) The purchase agreement and any other agreement or rules |
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governing the residential arrangement or the ownership interest in |
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the entity may not require that a dispute concerning the |
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arrangement or interest be brought before a tribunal other than a |
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court established under the laws of this state or the United States. |
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Sec. 223.004. DISCRIMINATION PROHIBITED. A managing entity |
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may not take an action with respect to an interest in the entity in a |
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manner that would be a violation of Chapter 301 if the interest in |
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the entity were an interest in real property, including: |
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(1) restricting the transfer of the interest; |
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(2) imposing requirements to maintain the interest; or |
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(3) refusing to grant an interest to an otherwise |
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qualified person. |
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Sec. 223.005. TRANSFER OF INTEREST. Notwithstanding any |
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provision in an agreement between the owner and a managing entity, |
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an owner of an interest in a managing entity may transfer the |
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interest without approval from the managing entity. |
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Sec. 223.006. CERTAIN CHARGES PROHIBITED. A managing |
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entity may not charge a fee for or share in the proceeds of the |
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transfer of an interest in the managing entity from an owner to a |
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subsequent purchaser. |
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Sec. 223.007. DECEPTIVE TRADE PRACTICE. A violation of |
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this chapter is a deceptive trade practice under Subchapter E, |
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Chapter 17, Business & Commerce Code. |
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SECTION 2. Section 301.042, Property Code, is amended by |
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adding Subsection (a-1) to read as follows: |
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(a-1) Subsection (a) does not apply to the sale, rental, or |
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occupancy of a dwelling that is a single-family house, duplex, |
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triplex, or quadruplex located on a subdivided lot in a parcel of |
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land 25 acres or greater owned by a religious organization, |
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association, or society or a nonprofit institution or organization |
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operated, supervised, or controlled by or in conjunction with a |
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religious organization, association, or society. |
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SECTION 3. This Act takes effect September 1, 2025. |