Texas 2009 - 81st Regular

Texas House Bill HB3479 Compare Versions

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1	1	H.B. No. 3479
2	2
3	3
4	4	AN ACT
5	5	relating to filing of instruments conveying real property in
6	6	certain counties and redemption of property after the foreclosure
7	7	of certain assessment liens.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Chapter 11, Property Code, is amended by adding
10	10	Section 11.0041 to read as follows:
11	11	Sec. 11.0041. REVIEW OF CERTAIN INSTRUMENTS IN CERTAIN
12	12	COUNTIES. (a) This section applies only to the county clerk of a
13	13	county:
14	14	(1) that:
15	15	(A) is located on the international border; and
16	16	(B) has a population of less than 15,000;
17	17	(2) in which a colonia self-help center established
18	18	under Section 2306.582, Government Code, is located; or
19	19	(3) that is served by a colonia self-help center
20	20	described by Subdivision (2) in another county.
21	21	(b) Before accepting an instrument conveying real property
22	22	for filing, the county clerk may send the instrument to the county
23	23	attorney for review under this section. Not later than five
24	24	business days after the date the county attorney receives an
25	25	instrument under this subsection, the county attorney shall:
26	26	(1) review the instrument to determine whether the
27	27	platting requirements prescribed by Sections 232.023, 232.025, and
28	28	232.031, Local Government Code, have been satisfied; and
29	29	(2) return the instrument to the county clerk with a
30	30	statement of the county attorney's determination under Subdivision
31	31	(1).
32	32	(c) Notwithstanding Section 11.004(a), the county clerk
33	33	shall immediately notify the party that presented the instrument
34	34	for recording that:
35	35	(1) the clerk is referring the instrument to the
36	36	county attorney for review;
37	37	(2) the instrument will not be immediately recorded;
38	38	and
39	39	(3) the clerk is not required to file an instrument the
40	40	county attorney determines the clerk is not required to file.
41	41	SECTION 2. Section 209.010, Property Code, is amended by
42	42	amending Subsections (a) and (b) and adding Subsections (b-1) and
43	43	(b-2) to read as follows:
44	44	(a) A property owners' association that conducts a
45	45	foreclosure sale of an owner's lot must send to the lot owner and to
46	46	each lienholder of record, not later than the 30th day after the
47	47	date of the foreclosure sale, a written notice stating the date and
48	48	time the sale occurred and informing the lot owner and each
49	49	lienholder of record of the [owner's] right of the lot owner and
50	50	lienholder to redeem the property under Section 209.011.
51	51	(b) The notice must be sent by certified mail, return
52	52	receipt requested, to:
53	53	(1) the lot owner's last known mailing address, as
54	54	reflected in the records of the property owners' association;
55	55	(2) the address of each holder of a lien on the
56	56	property subject to foreclosure evidenced by the most recent deed
57	57	of trust filed of record in the real property records of the county
58	58	in which the property is located; and
59	59	(3) the address of each transferee or assignee of a
60	60	deed of trust described by Subdivision (2) who has provided notice
61	61	to a property owners' association of such assignment or transfer.
62	62	Notice provided by a transferee or assignee to a property owners'
63	63	association shall be in writing, shall contain the mailing address
64	64	of the transferee or assignee, and shall be mailed by certified
65	65	mail, return receipt requested, or United States mail with
66	66	signature confirmation to the property owners' association
67	67	according to the mailing address of the property owners'
68	68	association pursuant to the most recent management certificate
69	69	filed of record pursuant to Section 209.004.
70	70	(b-1) If a recorded instrument does not include an address
71	71	for the lienholder, the association does not have a duty to notify
72	72	the lienholder as provided by this section.
73	73	(b-2) For purposes of this section, the lot owner is deemed
74	74	to have given approval for the association to notify the
75	75	lienholder.
76	76	SECTION 3. Subsections (b), (d), (e), (f), (g), (h), (j),
77	77	(k), (m), (n), and (p), Section 209.011, Property Code, are amended
78	78	to read as follows:
79	79	(b) The owner of property in a residential subdivision or a
80	80	lienholder of record may redeem the property from any purchaser at a
81	81	sale foreclosing a property owners' association's assessment lien
82	82	not later than the 180th day after the date the association mails
83	83	written notice of the sale to the owner and the lienholder under
84	84	Section 209.010. A lienholder of record may not redeem the property
85	85	as provided herein before 90 days after the date the association
86	86	mails written notice of the sale to the lot owner and the lienholder
87	87	under Section 209.010, and only if the lot owner has not previously
88	88	redeemed.
89	89	(d) To redeem property purchased by the property owners'
90	90	association at the foreclosure sale, the lot owner or lienholder
91	91	must pay to the association:
92	92	(1) all amounts due the association at the time of the
93	93	foreclosure sale;
94	94	(2) interest from the date of the foreclosure sale to
95	95	the date of redemption on all amounts owed the association at the
96	96	rate stated in the dedicatory instruments for delinquent
97	97	assessments or, if no rate is stated, at an annual interest rate of
98	98	10 percent;
99	99	(3) costs incurred by the association in foreclosing
100	100	the lien and conveying the property to the [redeeming] lot owner,
101	101	including reasonable attorney's fees;
102	102	(4) any assessment levied against the property by the
103	103	association after the date of the foreclosure sale;
104	104	(5) any reasonable cost incurred by the association,
105	105	including mortgage payments and costs of repair, maintenance, and
106	106	leasing of the property; and
107	107	(6) the purchase price paid by the association at the
108	108	foreclosure sale less any amounts due the association under
109	109	Subdivision (1) that were satisfied out of foreclosure sale
110	110	proceeds.
111	111	(e) To redeem property purchased at the foreclosure sale by
112	112	a person other than the property owners' association, the lot owner
113	113	or lienholder:
114	114	(1) must pay to the association:
115	115	(A) all amounts due the association at the time
116	116	of the foreclosure sale less the foreclosure sales price received
117	117	by the association from the purchaser;
118	118	(B) interest from the date of the foreclosure
119	119	sale through the date of redemption on all amounts owed the
120	120	association at the rate stated in the dedicatory instruments for
121	121	delinquent assessments or, if no rate is stated, at an annual
122	122	interest rate of 10 percent;
123	123	(C) costs incurred by the association in
124	124	foreclosing the lien and conveying the property to the redeeming
125	125	lot owner, including reasonable attorney's fees;
126	126	(D) any unpaid assessments levied against the
127	127	property by the association after the date of the foreclosure sale;
128	128	and
129	129	(E) taxable costs incurred in a proceeding
130	130	brought under Subsection (a); and
131	131	(2) must pay to the person who purchased the property
132	132	at the foreclosure sale:
133	133	(A) any assessments levied against the property
134	134	by the association after the date of the foreclosure sale and paid
135	135	by the purchaser;
136	136	(B) the purchase price paid by the purchaser at
137	137	the foreclosure sale;
138	138	(C) the amount of the deed recording fee;
139	139	(D) the amount paid by the purchaser as ad
140	140	valorem taxes, penalties, and interest on the property after the
141	141	date of the foreclosure sale; and
142	142	(E) taxable costs incurred in a proceeding
143	143	brought under Subsection (a).
144	144	(f) If a lot owner or lienholder redeems the property under
145	145	this section, the purchaser of the property at foreclosure shall
146	146	immediately execute and deliver to the redeeming party [owner] a
147	147	deed transferring the property to the [redeeming] lot owner. If a
148	148	purchaser fails to comply with this section, the lot owner or
149	149	lienholder may file an [a cause of] action against the purchaser and
150	150	may recover reasonable attorney's fees from the purchaser if the
151	151	lot owner or the lienholder is the prevailing party in the action.
152	152	(g) If, before the expiration of the redemption period, the
153	153	redeeming lot owner or lienholder fails to record the deed from the
154	154	foreclosing purchaser or fails to record an affidavit stating that
155	155	the lot owner or lienholder has redeemed the property, the lot
156	156	owner's or lienholder's right of redemption as against a bona fide
157	157	purchaser or lender for value expires after the redemption period.
158	158	(h) The purchaser of the property at the foreclosure sale or
159	159	a person to whom the person who purchased the property at the
160	160	foreclosure sale transferred the property may presume conclusively
161	161	that the lot owner or a lienholder did not redeem the property
162	162	unless the lot owner or a lienholder files in the real property
163	163	records of the county in which the property is located:
164	164	(1) a deed from the purchaser of the property at the
165	165	foreclosure sale; or
166	166	(2) an affidavit that:
167	167	(A) states that the property [lot owner] has been
168	168	redeemed [the property]; [and]
169	169	(B) contains a legal description of the property;
170	170	and
171	171	(C) includes the name and mailing address of the
172	172	person who redeemed the property.
173	173	(j) If a person other than the property owners' association
174	174	is the purchaser at the foreclosure sale, before executing a deed
175	175	transferring the property to the [redeeming] lot owner, the
176	176	purchaser shall obtain an affidavit from the association or its
177	177	authorized agent stating that all amounts owed the association
178	178	under Subsection (e) have been paid. The association shall provide
179	179	the purchaser with the affidavit not later than the 10th day after
180	180	the date the association receives all amounts owed to the
181	181	association under Subsection (e). Failure of a purchaser to comply
182	182	with this subsection does not affect the validity of a redemption
183	183	[by a redeeming lot owner].
184	184	(k) Property that is redeemed remains subject to all liens
185	185	and encumbrances on the property before foreclosure. Any lease
186	186	entered into by the purchaser of property at a sale foreclosing an
187	187	assessment lien of a property owners' association is subject to the
188	188	right of redemption provided by this section and the lot owner's
189	189	right to reoccupy the property immediately after [the] redemption.
190	190	(m) If a lot owner or lienholder sends by certified mail,
191	191	return receipt requested, a written request to redeem the property
192	192	on or before the last day of the redemption period, the lot owner's
193	193	or lienholder's right of redemption is extended until the 10th day
194	194	after the date the association and any third party foreclosure
195	195	purchaser provides written notice to the redeeming party [lot
196	196	owner] of the amounts that must be paid to redeem the property.
197	197	(n) After the redemption period and any extended redemption
198	198	period provided by Subsection (m) expires without a redemption of
199	199	the property, the association or third party foreclosure purchaser
200	200	shall record an affidavit in the real property records of the county
201	201	in which the property is located stating that the lot owner or a
202	202	lienholder did not redeem the property during the redemption period
203	203	or any extended redemption period.
204	204	(p) The rights of a lot owner and a lienholder under this
205	205	section also apply if the sale of the lot owner's property is
206	206	conducted by a constable or sheriff as provided by a judgment
207	207	obtained by the property owners' association.
208	208	SECTION 4. The change in law made in Section 11.0041,
209	209	Property Code, as added by this Act, applies only to an instrument
210	210	delivered to a county clerk on or after the effective date of this
211	211	Act. An instrument delivered to a county clerk before the effective
212	212	date of this Act is governed by the law in effect immediately before
213	213	the effective date of this Act, and that law is continued in effect
214	214	for that purpose.
215	215	SECTION 5. Sections 209.010 and 209.011, Property Code, as
216	216	amended by this Act, apply only to a foreclosure sale conducted on
217	217	or after the effective date of this Act. A foreclosure sale
218	218	conducted before the effective date of this Act is governed by the
219	219	law in effect immediately before the effective date of this Act, and
220	220	that law is continued in effect for that purpose.
221	221	SECTION 6. This Act takes effect September 1, 2009.
222	222	______________________________ ______________________________
223	223	President of the Senate Speaker of the House
224	224	I certify that H.B. No. 3479 was passed by the House on April
225	225	28, 2009, by the following vote: Yeas 149, Nays 0, 1 present, not
226	226	voting; that the House refused to concur in Senate amendments to
227	227	H.B. No. 3479 on May 29, 2009, and requested the appointment of a
228	228	conference committee to consider the differences between the two
229	229	houses; and that the House adopted the conference committee report
230	230	on H.B. No. 3479 on May 31, 2009, by the following vote: Yeas 143,
231	231	Nays 0, 1 present, not voting.
232	232	______________________________
233	233	Chief Clerk of the House
234	234	I certify that H.B. No. 3479 was passed by the Senate, with
235	235	amendments, on May 27, 2009, by the following vote: Yeas 31, Nays
236	236	0; at the request of the House, the Senate appointed a conference
237	237	committee to consider the differences between the two houses; and
238	238	that the Senate adopted the conference committee report on H.B. No.
239	239	3479 on May 31, 2009, by the following vote: Yeas 31, Nays 0.
240	240	______________________________
241	241	Secretary of the Senate
242	242	APPROVED: __________________
243	243	Date
244	244	__________________
245	245	Governor