81R6857 PMO-F
By: England H.B. No. 2394
A BILL TO BE ENTITLED
AN ACT
relating to the requirements for recording a property owners'
association management certificate.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 209.004, Property Code, is amended by
amending Subsections (a) and (c) and adding Subsections (d), (e),
and (f) to read as follows:
(a) A property owners' association shall record in each
county in which any portion of the residential subdivision is
located a management certificate, signed and acknowledged by an
officer or the managing agent of the association, stating:
(1) the name of the subdivision;
(2) the name of the association;
(3) the recording data for the subdivision;
(4) the recording data for the declaration;
(5) the name and mailing address of the association;
(6) [or] the name and mailing address of the person
managing the association or the association's designated
representative; and
(7) [(6)] other information the association considers
appropriate.
(c) Except as provided under Subsections (d) and (e), the
[The] property owners' association and its officers, directors,
employees, and agents are not subject to liability to any person for
a delay in recording or failure to record a management certificate,
unless the delay or failure is wilful or caused by gross negligence.
(d) If a property owners' association fails to record a
management certificate or an amended management certificate under
this section, the purchaser, lender, or title insurance company or
its agent in a transaction involving property in the property
owners' association is not liable to the property owners'
association for:
(1) any amount due to the association on the date of a
transfer to a bona fide purchaser; and
(2) any debt to or claim of the association that
accrued before the date of a transfer to a bona fide purchaser.
(e) A lien of a property owners' association that fails to
file a management certificate or an amended management certificate
under this section to secure an amount due on the effective date of
a transfer to a bona fide purchaser is enforceable only for an
amount incurred after the effective date of sale.
(f) For purposes of this section, "bona fide purchaser"
means:
(1) a person who pays valuable consideration without
notice of outstanding rights of others and acts in good faith; or
(2) a third-party lender who acquires a security
interest in the property under a deed of trust.
SECTION 2. The change in law made by this Act applies only
to a transfer of an interest to a bona fide purchaser on or after the
effective date of this Act. A transfer of an interest to a bona fide
purchaser before the effective date of this Act is covered by the
law in effect when the transaction occurred, and the former law is
continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2009.