81R9252 AJA-D
By: Solomons H.B. No. 1977
A BILL TO BE ENTITLED
AN ACT
relating to encumbrances that may be fixed on homestead property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 41.001(a) and (b), Property Code, are
amended to read as follows:
(a) A homestead and one or more lots used for a place of
burial of the dead are exempt from seizure for the claims of
creditors except for encumbrances described by Subsection (b)
[properly fixed on homestead property].
(b) A homestead is not exempt from seizure as provided by
Subsection (a) for encumbrances that are [Encumbrances may be]
properly fixed on homestead property for:
(1) purchase money;
(2) taxes on the property;
(3) work and material used in constructing
improvements on the property if contracted for in writing as
provided by Sections 53.254(a), (b), and (c);
(4) an owelty of partition imposed against the
entirety of the property by a court order or by a written agreement
of the parties to the partition, including a debt of one spouse in
favor of the other spouse resulting from a division or an award of a
family homestead in a divorce proceeding;
(5) the refinance of a lien against a homestead,
including a federal tax lien resulting from the tax debt of both
spouses, if the homestead is a family homestead, or from the tax
debt of the owner;
(6) an extension of credit that meets the requirements
of Section 50(a)(6), Article XVI, Texas Constitution; or
(7) a reverse mortgage that meets the requirements of
Sections 50(k)-(p), Article XVI, Texas Constitution.
SECTION 2. Subchapter A, Chapter 41, Property Code, is
amended by adding Section 41.0011 to read as follows:
Sec. 41.0011. HOMESTEAD EXEMPT FROM SEIZURE FOR CERTAIN
ENCUMBRANCES. (a) In this section, "property owners'
association" has the meaning assigned by Section 202.001.
(b) An obligation to pay property owners' association fees
for maintenance and ownership of common facilities and services or
to pay other fees or fines imposed by a property owners' association
is a debt for which an encumbrance may be properly fixed on
homestead property.
(c) Homestead property is exempt from seizure for the claims
of creditors for an encumbrance described by Subsection (b). A
property owners' association may collect on an encumbrance
described by Subsection (b) properly fixed on homestead property at
the time the homestead property is transferred. Section 41.001(c)
does not apply to a claim of a property owners' association under
this section.
SECTION 3. Section 209.009, Property Code, is repealed.
SECTION 4. This Act takes effect January 1, 2010, but only
if the constitutional amendment proposed by the 81st Legislature,
Regular Session, 2009, permitting an encumbrance to be fixed on
homestead property for an obligation to pay certain property
owners' association fees and fines without permitting the forced
sale of the homestead takes effect. If that amendment is not
approved by the voters, this Act has no effect.