Texas 2009 - 81st Regular

Texas House Bill HB2394 Compare Versions

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1	1	81R6857 PMO-F
2	2	By: England H.B. No. 2394
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the requirements for recording a property owners'
8	8	association management certificate.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 209.004, Property Code, is amended by
11	11	amending Subsections (a) and (c) and adding Subsections (d), (e),
12	12	and (f) to read as follows:
13	13	(a) A property owners' association shall record in each
14	14	county in which any portion of the residential subdivision is
15	15	located a management certificate, signed and acknowledged by an
16	16	officer or the managing agent of the association, stating:
17	17	(1) the name of the subdivision;
18	18	(2) the name of the association;
19	19	(3) the recording data for the subdivision;
20	20	(4) the recording data for the declaration;
21	21	(5) the name and mailing address of the association;
22	22	(6) [or] the name and mailing address of the person
23	23	managing the association or the association's designated
24	24	representative; and
25	25	(7) [(6)] other information the association considers
26	26	appropriate.
27	27	(c) Except as provided under Subsections (d) and (e), the
28	28	[The] property owners' association and its officers, directors,
29	29	employees, and agents are not subject to liability to any person for
30	30	a delay in recording or failure to record a management certificate,
31	31	unless the delay or failure is wilful or caused by gross negligence.
32	32	(d) If a property owners' association fails to record a
33	33	management certificate or an amended management certificate under
34	34	this section, the purchaser, lender, or title insurance company or
35	35	its agent in a transaction involving property in the property
36	36	owners' association is not liable to the property owners'
37	37	association for:
38	38	(1) any amount due to the association on the date of a
39	39	transfer to a bona fide purchaser; and
40	40	(2) any debt to or claim of the association that
41	41	accrued before the date of a transfer to a bona fide purchaser.
42	42	(e) A lien of a property owners' association that fails to
43	43	file a management certificate or an amended management certificate
44	44	under this section to secure an amount due on the effective date of
45	45	a transfer to a bona fide purchaser is enforceable only for an
46	46	amount incurred after the effective date of sale.
47	47	(f) For purposes of this section, "bona fide purchaser"
48	48	means:
49	49	(1) a person who pays valuable consideration without
50	50	notice of outstanding rights of others and acts in good faith; or
51	51	(2) a third-party lender who acquires a security
52	52	interest in the property under a deed of trust.
53	53	SECTION 2. The change in law made by this Act applies only
54	54	to a transfer of an interest to a bona fide purchaser on or after the
55	55	effective date of this Act. A transfer of an interest to a bona fide
56	56	purchaser before the effective date of this Act is covered by the
57	57	law in effect when the transaction occurred, and the former law is
58	58	continued in effect for that purpose.
59	59	SECTION 3. This Act takes effect September 1, 2009.