| 1 | 1 | | By: Watson S.B. No. 1937 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to prohibiting a fee for the conveyance of residential |
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| 7 | 7 | | real property, maintaining exemptions. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 5.017(b), Property Code, is amended to |
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| 10 | 10 | | read as follows: |
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| 11 | 11 | | (b) A deed restriction or other covenant running with the |
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| 12 | 12 | | land applicable to the conveyance of [residential] real property |
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| 13 | 13 | | that requires a transfer or a transferee of residential real |
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| 14 | 14 | | property or the transferee's heirs, successors, or assigns to pay a |
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| 15 | 15 | | declarant or other person imposing the deed restriction or covenant |
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| 16 | 16 | | on the property or a third party designated by a transferor of the |
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| 17 | 17 | | property a fee in connection with any [a future] transfer of the |
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| 18 | 18 | | property is prohibited. A deed restriction or other covenant |
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| 19 | 19 | | running with the land that violates this section or a lien |
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| 20 | 20 | | purporting to encumber the land to secure a right under a deed |
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| 21 | 21 | | restriction or other covenant running with the land that violates |
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| 22 | 22 | | this section is void and unenforceable. For purposes of this |
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| 23 | 23 | | section, a conveyance of real property includes a conveyance or |
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| 24 | 24 | | other transfer of an interest or estate in residential real |
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| 25 | 25 | | property. |
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| 26 | 26 | | SECTION 2. This Act takes effect immediately if it receives |
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| 27 | 27 | | a vote of two-thirds of all the members elected to each house, as |
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| 28 | 28 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 29 | 29 | | Act does not receive the vote necessary for immediate effect, this |
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| 30 | 30 | | Act takes effect September 1, 2009. |
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