By: West S.B. No. 241
Substitute the following for S.B. No. 241:
By: Quintanilla C.S.S.B. No. 241
A BILL TO BE ENTITLED
AN ACT
relating to procedures required for the foreclosure of a property
owners' association's assessment lien.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 209, Property Code, is amended by adding
Section 209.0091 to read as follows:
Sec. 209.0091. JUDICIAL FORECLOSURE REQUIRED. (a) Except as
provided by Subsection (c), a property owners' association may not
foreclose a property owners' association assessment lien unless
the association first obtains a court order in an application for
expedited foreclosure under the rules adopted by the supreme court
under Subsection (b). A property owners association may utilize
the procedure described in this section in order to foreclose any
lien described in a dedicatory instrument.
(b) The supreme court, as an exercise of the court's
authority under Section 74.024, Government Code, shall adopt rules
establishing expedited foreclosure proceedings for use by a
property owners' association in foreclosing an assessment lien of
the association. The rules adopted under this subsection must be
substantially similar to the rules adopted by the supreme court
under Section 50(r), Article XVI, Texas Constitution.
(c) Expedited foreclosure is not required under this
section if the owner of the property that is subject to foreclosure
agrees in writing at the time the foreclosure is sought to waive
expedited foreclosure under this section. A waiver under this
subsection may not be required as a condition of the transfer of
title to real property.
SECTION 2. Subsection (a), Section 209.010, Property Code,
is amended to read as follows:
(a) A property owners' association that conducts a
foreclosure sale of an owner's lot must send to the lot owner not
later than the 30th day after the date of the foreclosure sale:
(1) a written notice stating the date and time the sale
occurred and informing the lot owner of the owner's right to redeem
the property under Section 209.011; and
(2) a copy of Section 209.011.
SECTION 3. (a) Section 209.0091, Property Code, as added by
this Act, applies only to a foreclosure sale that occurs after
January 1, 2010. A foreclosure sale that occurs on or before January
1, 2010, is governed by the law in effect immediately before the
effective date of this Act, and that law is continued in effect for
that purpose.
(b) Section 209.010(a), Property Code, as amended by this
Act, applies only to a foreclosure sale conducted on or after the
effective date of this Act. A foreclosure sale conducted before the
effective date of this Act is governed by the law in effect
immediately before the effective date of this Act, and that law is
continued in effect for that purpose.
SECTION 4. Not later than January 1, 2010, the Supreme Court
of Texas shall adopt rules of civil procedure under Section
209.0091, Property Code, as added by this Act.
SECTION 5. This Act takes effect January 1, 2010.