| 1 | 1 | | 81R340 AJA-D |
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| 2 | 2 | | By: West S.B. No. 241 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to procedures required for the foreclosure of a property |
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| 8 | 8 | | owners' association's assessment lien. |
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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 209, Property Code, is amended by adding |
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| 11 | 11 | | Section 209.0091 to read as follows: |
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| 12 | 12 | | Sec. 209.0091. JUDICIAL FORECLOSURE REQUIRED. (a) Except |
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| 13 | 13 | | as provided by Subsection (b), a property owners' association may |
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| 14 | 14 | | not foreclose a property owners' association's assessment lien |
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| 15 | 15 | | unless the association first obtains a court judgment foreclosing |
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| 16 | 16 | | the lien and providing for issuance of an order of sale. |
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| 17 | 17 | | (b) Judicial foreclosure is not required under this section |
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| 18 | 18 | | if the owner of the property that is subject to foreclosure agrees |
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| 19 | 19 | | in writing to waive judicial foreclosure under this section. |
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| 20 | 20 | | SECTION 2. Subsection (a), Section 209.010, Property Code, |
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| 21 | 21 | | is amended to read as follows: |
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| 22 | 22 | | (a) A property owners' association that conducts a |
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| 23 | 23 | | foreclosure sale of an owner's lot must send to the lot owner not |
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| 24 | 24 | | later than the 30th day after the date of the foreclosure sale: |
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| 25 | 25 | | (1) a written notice stating the date and time the sale |
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| 26 | 26 | | occurred and informing the lot owner of the owner's right to redeem |
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| 27 | 27 | | the property under Section 209.011; and |
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| 28 | 28 | | (2) a copy of Section 209.011. |
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| 29 | 29 | | SECTION 3. (a) Section 209.0091, Property Code, as added by |
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| 30 | 30 | | this Act, applies only to foreclosure of a lien that attaches on or |
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| 31 | 31 | | after the effective date of this Act. Foreclosure of a lien that |
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| 32 | 32 | | attaches before the effective date of this Act is governed by the |
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| 33 | 33 | | law in effect immediately before that date, and that law is |
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| 34 | 34 | | continued in effect for that purpose. |
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| 35 | 35 | | (b) Subsection (a), Section 209.010, Property Code, as |
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| 36 | 36 | | amended by this Act, applies only to a foreclosure sale conducted on |
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| 37 | 37 | | or after the effective date of this Act. A foreclosure sale |
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| 38 | 38 | | conducted before the effective date of this Act is governed by the |
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| 39 | 39 | | law in effect immediately before the effective date of this Act, and |
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| 40 | 40 | | that law is continued in effect for that purpose. |
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| 41 | 41 | | SECTION 4. This Act takes effect January 1, 2010. |
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