| 1 | 1 | | 81R9252 AJA-D |
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| 2 | 2 | | By: Solomons H.B. No. 1977 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to encumbrances that may be fixed on homestead property. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Sections 41.001(a) and (b), Property Code, are |
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| 10 | 10 | | amended to read as follows: |
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| 11 | 11 | | (a) A homestead and one or more lots used for a place of |
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| 12 | 12 | | burial of the dead are exempt from seizure for the claims of |
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| 13 | 13 | | creditors except for encumbrances described by Subsection (b) |
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| 14 | 14 | | [properly fixed on homestead property]. |
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| 15 | 15 | | (b) A homestead is not exempt from seizure as provided by |
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| 16 | 16 | | Subsection (a) for encumbrances that are [Encumbrances may be] |
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| 17 | 17 | | properly fixed on homestead property for: |
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| 18 | 18 | | (1) purchase money; |
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| 19 | 19 | | (2) taxes on the property; |
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| 20 | 20 | | (3) work and material used in constructing |
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| 21 | 21 | | improvements on the property if contracted for in writing as |
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| 22 | 22 | | provided by Sections 53.254(a), (b), and (c); |
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| 23 | 23 | | (4) an owelty of partition imposed against the |
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| 24 | 24 | | entirety of the property by a court order or by a written agreement |
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| 25 | 25 | | of the parties to the partition, including a debt of one spouse in |
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| 26 | 26 | | favor of the other spouse resulting from a division or an award of a |
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| 27 | 27 | | family homestead in a divorce proceeding; |
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| 28 | 28 | | (5) the refinance of a lien against a homestead, |
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| 29 | 29 | | including a federal tax lien resulting from the tax debt of both |
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| 30 | 30 | | spouses, if the homestead is a family homestead, or from the tax |
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| 31 | 31 | | debt of the owner; |
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| 32 | 32 | | (6) an extension of credit that meets the requirements |
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| 33 | 33 | | of Section 50(a)(6), Article XVI, Texas Constitution; or |
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| 34 | 34 | | (7) a reverse mortgage that meets the requirements of |
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| 35 | 35 | | Sections 50(k)-(p), Article XVI, Texas Constitution. |
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| 36 | 36 | | SECTION 2. Subchapter A, Chapter 41, Property Code, is |
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| 37 | 37 | | amended by adding Section 41.0011 to read as follows: |
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| 38 | 38 | | Sec. 41.0011. HOMESTEAD EXEMPT FROM SEIZURE FOR CERTAIN |
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| 39 | 39 | | ENCUMBRANCES. (a) In this section, "property owners' |
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| 40 | 40 | | association" has the meaning assigned by Section 202.001. |
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| 41 | 41 | | (b) An obligation to pay property owners' association fees |
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| 42 | 42 | | for maintenance and ownership of common facilities and services or |
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| 43 | 43 | | to pay other fees or fines imposed by a property owners' association |
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| 44 | 44 | | is a debt for which an encumbrance may be properly fixed on |
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| 45 | 45 | | homestead property. |
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| 46 | 46 | | (c) Homestead property is exempt from seizure for the claims |
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| 47 | 47 | | of creditors for an encumbrance described by Subsection (b). A |
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| 48 | 48 | | property owners' association may collect on an encumbrance |
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| 49 | 49 | | described by Subsection (b) properly fixed on homestead property at |
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| 50 | 50 | | the time the homestead property is transferred. Section 41.001(c) |
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| 51 | 51 | | does not apply to a claim of a property owners' association under |
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| 52 | 52 | | this section. |
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| 53 | 53 | | SECTION 3. Section 209.009, Property Code, is repealed. |
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| 54 | 54 | | SECTION 4. This Act takes effect January 1, 2010, but only |
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| 55 | 55 | | if the constitutional amendment proposed by the 81st Legislature, |
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| 56 | 56 | | Regular Session, 2009, permitting an encumbrance to be fixed on |
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| 57 | 57 | | homestead property for an obligation to pay certain property |
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| 58 | 58 | | owners' association fees and fines without permitting the forced |
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| 59 | 59 | | sale of the homestead takes effect. If that amendment is not |
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| 60 | 60 | | approved by the voters, this Act has no effect. |
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