| 1 | 1 | | By: West S.B. No. 235 |
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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 restrictive covenant granting a right of |
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| 7 | 7 | | first refusal to a property owners' association in certain |
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| 8 | 8 | | circumstances. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Chapter 202, Property Code, is amended by adding |
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| 11 | 11 | | Section 202.008 to read as follows: |
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| 12 | 12 | | Sec. 202.008. RIGHT OF FIRST REFUSAL PROHIBITED. (a) In |
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| 13 | 13 | | this section, "development period" means a period stated in a |
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| 14 | 14 | | declaration during which a declarant reserves: |
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| 15 | 15 | | (1) a right to facilitate the development, |
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| 16 | 16 | | construction, and marketing of the subdivision; |
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| 17 | 17 | | (2) a right to direct the size, shape, and composition |
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| 18 | 18 | | of the subdivision; or |
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| 19 | 19 | | (3) any other right customarily reserved by a |
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| 20 | 20 | | declarant for the benefit of developers and builders. |
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| 21 | 21 | | (b) To the extent a restrictive covenant provides a right of |
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| 22 | 22 | | first refusal for the sale or lease of a residential unit or |
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| 23 | 23 | | residential lot in favor of the property owners' association or the |
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| 24 | 24 | | association's members, the covenant is void. |
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| 25 | 25 | | (c) This section does not apply to a restrictive covenant |
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| 26 | 26 | | that provides a right of first refusal in favor of a developer or |
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| 27 | 27 | | builder during the development period. |
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| 28 | 28 | | SECTION 2. Section 202.008, Property Code, as added by this |
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| 29 | 29 | | Act, applies to a deed restriction enacted before, on, or after the |
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| 30 | 30 | | effective date of this Act. |
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| 31 | 31 | | SECTION 3. This Act takes effect January 1, 2010. |
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