Texas Senate Bill SB235

Texas 2009 - 81st Regular

• Filed: 11/10/08
• Out of Senate Committee: 3/9/09
• Voted on by Senate: 3/19/09
• Out of House Committee: 5/5/09

Caption

Relating to prohibiting a restrictive covenant granting a right of first refusal to a property owners' association in certain circumstances.

Impact

The implications of SB235 are substantial for the real estate landscape in Texas. By invalidating such restrictive covenants, the bill aims to enhance the rights of individual homeowners against potential overreach by property owners' associations. At the same time, the bill includes specific exemptions for developers or builders during the designated development period, which allows them to retain certain rights essential for managing and marketing subdivisions. This provision suggests a balanced approach to protect individual property rights while still allowing for some flexibility for developers.

Summary

SB235 aims to prohibit a specific type of restrictive covenant that grants a right of first refusal to property owners' associations under certain conditions. The bill introduces a new section to the Property Code, clearly stating that any covenant providing a right of first refusal for the sale or lease of residential properties in favor of property owners' associations or their members is rendered void. This change is significant as it directly affects how property owners and associations can negotiate terms of sale and leasing in residential developments.

Contention

Discussions surrounding SB235 may have highlighted potential conflicts between homeowners' rights and the governance of property owners' associations. Advocates argue that the bill strengthens individual homeowner rights and prevents associations from having excessive control over property transactions, while critics may contend that this restriction could disrupt the established processes for managing community developments. It’s crucial to consider the broader context of homeowner association regulations and how this bill fits into ongoing debates about property rights and community governance in Texas.