By: West S.B. No. 235
A BILL TO BE ENTITLED
AN ACT
relating to prohibiting a restrictive covenant granting a right of
first refusal to a property owners' association in certain
circumstances.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 202, Property Code, is amended by adding
Section 202.008 to read as follows:
Sec. 202.008. RIGHT OF FIRST REFUSAL PROHIBITED. (a) In
this section, "development period" means a period stated in a
declaration during which a declarant reserves:
(1) a right to facilitate the development,
construction, and marketing of the subdivision;
(2) a right to direct the size, shape, and composition
of the subdivision; or
(3) any other right customarily reserved by a
declarant for the benefit of developers and builders.
(b) To the extent a restrictive covenant provides a right of
first refusal for the sale or lease of a residential unit or
residential lot in favor of the property owners' association or the
association's members, the covenant is void.
(c) This section does not apply to a restrictive covenant
that provides a right of first refusal in favor of a developer or
builder during the development period.
SECTION 2. Section 202.008, Property Code, as added by this
Act, applies to a deed restriction enacted before, on, or after the
effective date of this Act.
SECTION 3. This Act takes effect January 1, 2010.