Texas House Bill HB4219

Texas 2009 - 81st Regular

• Out of House Committee: 4/24/09

Caption

Relating to the prohibition of a fee associated with the transfer of real property.

Impact

The implementation of HB 4219 would significantly impact state laws by clarifying the limitations on fees tied to property transfers. It aims to bolster protections for home buyers and prevent potential exploitation through hidden fees. By enforcing strict conditions for fee collection, the bill would ensure that buyers are informed of any obligations prior to finalizing their purchase. Furthermore, the legislation requires approval from property owners via an election for entities to impose fees, enhancing communal control over fee structures associated with property transactions.

Summary

House Bill 4219 aims to prohibit certain fees associated with the transfer of real property in Texas, specifically targeting fees imposed through deed restrictions or covenants. The bill amends Section 5.017 of the Property Code to state that any transfer of residential real property that requires payment of a fee to a third party is invalid. This change seeks to protect buyers from unexpected financial burdens linked to property transfers, ensuring more transparency in real estate transactions. The bill emphasizes that any such fees cannot be enforced unless they adhere to specific conditions laid out in the legislation.

Contention

Despite its intent to simplify and protect property transactions, HB 4219 may face contention from property owners' associations and other entities that benefit from fee collections as part of property management. Critics might argue that the restrictions could hinder the ability of these organizations to manage community resources effectively, thereby impacting services and amenities dependent on such fees. Balancing buyer protection with the operational needs of associations could be a pivotal point of discussion among lawmakers and stakeholders involved in real estate and community management.