Texas 2009 - 81st Regular

Texas Senate Bill SB2481

Filed
 
Out of Senate Committee
4/20/09  
Voted on by Senate
4/24/09  
Governor Action
 
Bill Becomes Law
 

Caption

Relating to certain fees for future transfer of real property.

Impact

The bill has significant implications for property law in Texas. By establishing that any deed restriction or covenant that imposes fees for future transfers is void and unenforceable, it removes a common practice that could act as a financial burden on property owners. The exceptions noted in the bill allow for fees to be maintained in specific contexts, such as those payable to property owners' associations or certain nonprofit entities. These stipulations suggest a careful balance between protecting homeowners and allowing for legitimate community regulations.

Summary

SB2481 addresses the issue of fees associated with the future transfer of residential real property by prohibiting certain types of fees that typically accompany conveyances of such properties. The legislation aims to protect homeowners from being bound by deed restrictions or covenants that require them or their successors to pay fees to third parties upon the future resale of their properties. This measure is intended to enhance the rights of property owners and simplify the transfer process of residential real estate.

Contention

Discussion around SB2481 has highlighted important points of contention—supporters argue that it enhances consumer protection by preventing unjust financial obligations, while opponents may voice concerns about the ability of property owners' associations to fund necessary community services. Furthermore, there is debate on whether this prohibition could weaken the authority of such associations which play roles in governance and maintenance of residential communities. As property owners' associations often serve as a means of enforcing community standards, the potential ramifications of this bill could affect how these entities operate in the future.

Companion Bills

No companion bills found.

Similar Bills

No similar bills found.