Relating to prohibiting a fee for the conveyance of residential real property, maintaining exemptions.
Impact
The new law would amend Section 5.017 of the Texas Property Code, effectively barring certain types of financial obligations that could be attached to real estate transfers. This change is anticipated to simplify the process of transferring residential property, making it more straightforward for homeowners and potential buyers. By eliminating obligatory fees associated with property transfers, the bill seeks to enhance transparency and affordability in the housing market.
Summary
SB1937 aims to prohibit any fees associated with the conveyance of residential real property that could be imposed through deed restrictions or covenants. This legislation is focused on protecting property buyers and owners from additional financial burdens during property transactions. If enacted, any deed restriction that mandates a buyer or their heirs to pay a fee to a declarant or any person as a condition of transferring residential properties would be declared void and unenforceable.
Contention
While the bill appears beneficial for consumers by eliminating unwarranted fees, it may raise concerns among developers and owners of properties with existing deed restrictions that rely on these fees to support maintenance and community services. Discussions around this legislation could reflect a broader debate on the balance between homeowner rights and the financial needs of property management entities. Stakeholders may also express differing views on the potential impact on property values and neighborhood associations.
Relating to verification of identity and employment authorization in connection with certain contracts for or concerning the conveyance of residential real property and residential leases.