By: Watson S.B. No. 1937
A BILL TO BE ENTITLED
AN ACT
relating to prohibiting a fee for the conveyance of residential
real property, maintaining exemptions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 5.017(b), Property Code, is amended 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 transfer 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.
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.