Texas 2009 - 81st Regular

Texas Senate Bill SB1919 Compare Versions

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Old	New	Differences
1	1	S.B. No. 1919
2	2
3	3
4	4	AN ACT
5	5	relating to the requirements for recording a property owners'
6	6	association management certificate.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Section 209.004, Property Code, is amended by
9	9	amending Subsections (a) and (c) and adding Subsections (d), (e),
10	10	and (f) to read as follows:
11	11	(a) A property owners' association shall record in each
12	12	county in which any portion of the residential subdivision is
13	13	located a management certificate, signed and acknowledged by an
14	14	officer or the managing agent of the association, stating:
15	15	(1) the name of the subdivision;
16	16	(2) the name of the association;
17	17	(3) the recording data for the subdivision;
18	18	(4) the recording data for the declaration;
19	19	(5) the name and mailing address of the association;
20	20	(6) [or] the name and mailing address of the person
21	21	managing the association or the association's designated
22	22	representative; and
23	23	(7) [(6)] other information the association considers
24	24	appropriate.
25	25	(c) Except as provided under Subsections (d) and (e), the
26	26	[The] property owners' association and its officers, directors,
27	27	employees, and agents are not subject to liability to any person for
28	28	a delay in recording or failure to record a management certificate,
29	29	unless the delay or failure is wilful or caused by gross negligence.
30	30	(d) If a property owners' association fails to record a
31	31	management certificate or an amended management certificate under
32	32	this section, the purchaser, lender, or title insurance company or
33	33	its agent in a transaction involving property in the property
34	34	owners' association is not liable to the property owners'
35	35	association for:
36	36	(1) any amount due to the association on the date of a
37	37	transfer to a bona fide purchaser; and
38	38	(2) any debt to or claim of the association that
39	39	accrued before the date of a transfer to a bona fide purchaser.
40	40	(e) A lien of a property owners' association that fails to
41	41	file a management certificate or an amended management certificate
42	42	under this section to secure an amount due on the effective date of
43	43	a transfer to a bona fide purchaser is enforceable only for an
44	44	amount incurred after the effective date of sale.
45	45	(f) For purposes of this section, "bona fide purchaser"
46	46	means:
47	47	(1) a person who pays valuable consideration without
48	48	notice of outstanding rights of others and acts in good faith; or
49	49	(2) a third-party lender who acquires a security
50	50	interest in the property under a deed of trust.
51	51	SECTION 2. The change in law made by this Act applies only
52	52	to a transfer of an interest to a bona fide purchaser on or after the
53	53	effective date of this Act. A transfer of an interest to a bona fide
54	54	purchaser before the effective date of this Act is covered by the
55	55	law in effect when the transaction occurred, and the former law is
56	56	continued in effect for that purpose.
57	57	SECTION 3. A property owners' association that exists on
58	58	September 1, 2009, shall file the information required by the
59	59	changes in law made by this Act not later than May 1, 2010.
60	60	SECTION 4. This Act takes effect September 1, 2009.
61	61	______________________________ ______________________________
62	62	President of the Senate Speaker of the House
63	63	I hereby certify that S.B. No. 1919 passed the Senate on
64	64	April 30, 2009, by the following vote: Yeas 31, Nays 0.
65	65	______________________________
66	66	Secretary of the Senate
67	67	I hereby certify that S.B. No. 1919 passed the House on
68	68	May 12, 2009, by the following vote: Yeas 143, Nays 0, one
69	69	present not voting.
70	70	______________________________
71	71	Chief Clerk of the House
72	72	Approved:
73	73	______________________________
74	74	Date
75	75	______________________________
76	76	Governor