By: Darby H.B. No. 4219
A BILL TO BE ENTITLED
AN ACT
relating to the prohibition or disclosure of a fee associated with
the transfer of real property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 5.017, Property Code, is amended by
amended subsections (b) and (c) and adding a new subsection (d) to
read as follows:
(b) A deed restriction or other covenant running with the
land applicable to the conveyance of [residential] real property
that requires a transferor or a transferee of residential real
property or the transferee's heirs, successors, or assigns to pay a
declarant or other person imposing the deed restriction or covenant
on the property or a third party designated by a transferor of the
property a fee in connection with any [a future] transfer of the
property is prohibited. A deed restriction or other covenant
running with the land that violates this section or a lien
purporting to encumber the land to secure a right under a deed
restriction or other covenant running with the land that violates
this section is void and unenforceable. For purposes of this
section, a conveyance of real property includes a conveyance or
other transfer of an interest or estate in residential real
property.
(c) Except as provided by Subsection (d), this [This]
section does not apply to a deed restriction or other covenant
running with the land that requires a fee associated with the
conveyance of property in a subdivision that is payable to:
(1) a property owners' association that manages or
regulates the subdivision or the association's managing agent if
the subdivision contains more than one platted lot;
(2) an entity organized under Section 501(c)(3),
Internal Revenue Code of 1986; or
(3) a governmental entity.; or
(4) an entity that operates a golf and country club in
or adjacent to one or more subdivisions where the owners of real
property in such subdivisions are required deed restriction to
obtain and maintain a membership in such club.
(d) An exemption provided by subsection (c) becomes null and
void unless:
(1) the fee imposed by an entity has been approved by
property owners at an election on the issue of authorizing the
entity to impose the fee; and
(2) the seller of an interest in real property located
in this state gives to the purchaser of the property a written
statement of all fees associated with any transfer of ownership of
the property, including:
(i) a description of each fee;
(ii) to whom each fee is paid;
(iii) the amount of each fee; and
(iv) when payment of each fee is due.
(e) Any property owner who is the owner of record of fee
simple title to a parcel of land subject to a deed restriction or
other covenant running with the land applicable to the conveyance
of the property at the time an election is held is entitled to vote
in an election on the issue of authorizing an entity to impose a fee
under subsection (c).
(f) A violation of subsection (d) does not invalidate a
conveyance.
(g) If a contract is entered into without the seller
providing the statement provided by subsection (d)(2), a purchaser
is not required to pay any fees associated with any transfer of the
property at any time.
(h) A seller of real property is not liable for any fee
associated with the transfer of property if the entity receiving
the fee under subsection (c) does not timely provide the seller with
the information required to be given to a purchaser under
subsection (d).
(i) An exemption provided by subsection (c) does not create
any additional authority on any entity to receive a fee associated
with the transfer of real property.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.