82R1873 AJA-F
By: S. Davis of Harris H.B. No. 1071
A BILL TO BE ENTITLED
AN ACT
relating to the extension of deed restrictions in certain
residential real estate subdivisions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Chapter 210, Property Code, is
amended to read as follows:
CHAPTER 210. EXTENSION OR MODIFICATION OF RESIDENTIAL RESTRICTIVE
COVENANTS BY PETITION IN CERTAIN SUBDIVISIONS
SECTION 2. Title 11, Property Code, is amended by adding
Chapter 212 to read as follows:
CHAPTER 212. EXTENSION OF RESTRICTIONS BY MAJORITY VOTE IN CERTAIN
SUBDIVISIONS
Sec. 212.001. DEFINITIONS. In this chapter, "lienholder,"
"owner," "restrictions," and "residential real estate subdivision"
or "subdivision" have the meanings assigned by Section 201.003.
Sec. 212.002. APPLICABILITY OF CHAPTER. This chapter
applies only to a residential real estate subdivision that:
(1) is located wholly or partly in a municipality with
a population of more than two million located in a county with a
population of 3.3 million or more; and
(2) is subject to restrictions the terms of which:
(A) provide that the restrictions expire;
(B) permit the restrictions to be extended after
the initial restriction period expires if a majority of the owners
of lots in the subdivision, by a written instrument that is
acknowledged and filed for record, signify consent to the extension
of the restrictions for a further period the maximum length of which
is specified by the restrictions; and
(C) do not expressly provide for or expressly
prohibit successive extensions of the restrictions after the
expiration of the initial extension period.
Sec. 212.003. PROCEDURE FOR SUCCESSIVE EXTENSIONS. (a)
Restrictions may be extended under this chapter by the written
consent of the owners of a majority of the lots in the subdivision,
without respect to the number of lots owned by a particular owner.
(b) Consent for the purposes of this section may be
reflected by an owner's signature on a petition or written ballot.
(c) Petitions, written ballots, or both may be distributed
to the owners of lots in the subdivision by any method, including
one or both of the following methods:
(1) by door-to-door circulation; or
(2) at a meeting of the owners of lots in the
subdivision called for the purpose of voting on the proposed
extension.
(d) The required signatures must be obtained during the same
extension period. The petitions, written ballots, or both, as
applicable, must be filed for record in the county in which the
subdivision is located before the earlier of:
(1) the first anniversary of the date on which the
first signature is obtained; or
(2) the expiration of the extension period during
which the signatures are collected.
(e) Restrictions may be extended under this chapter only
once during each unexpired extension period.
Sec. 212.004. EFFECT OF OWNER SIGNATURE. (a) The vote of
multiple owners of a lot may be reflected by the signature of one of
the owners.
(b) After an owner signs a petition or ballot under Section
212.003 or 212.007, the owner's subsequent conveyance of the
owner's interest in a lot or unplatted real property in the
subdivision does not affect the validity of the signature for the
purposes of that section.
Sec. 212.005. PROPERTY OWNERS' ASSOCIATION NOT REQUIRED.
Restrictions may be extended under this chapter without the
creation of or action by a property owners' association, homeowners
association, community association, civic club, or similar
organization.
Sec. 212.006. EFFECTIVE DATE OF EXTENSION; LENGTH OF
EXTENSION PERIOD. (a) An extension of restrictions under this
chapter takes effect on the date the petitions, written ballots, or
both, as applicable, sufficient to reflect the consent required by
Section 212.003 are filed and recorded in the real property records
of the county in which the subdivision is located.
(b) Subject to Section 212.007, an extension of
restrictions under this chapter is for a period equal to the
original term of the restrictions or a shorter period agreed to by
the owners of a majority of the lots in the subdivision in the
petitions, written ballots, or both, as applicable, signed under
Section 212.003.
Sec. 212.007. TERMINATION OF RESTRICTIONS. (a)
Restrictions extended under this chapter may be terminated before
their expiration date if:
(1) the consent of the owners of a majority of the lots
in the subdivision to the termination of the restrictions on a
specified date is obtained in the same manner as consent to the
extension of restrictions is obtained under this chapter; and
(2) the petitions, written ballots, or both, as
applicable, sufficient to reflect the required consent to
termination are filed for record in the real property records of the
county in which the subdivision is located before the earlier of:
(A) the first anniversary of the date on which
the first signature consenting to termination is obtained; or
(B) a date specified under Subsection (b)(2).
(b) Petitions, written ballots, or both, as applicable,
used to extend restrictions under this section may provide that:
(1) the restrictions may be terminated only on one or
more termination dates specified in the petitions, written ballots,
or both, as applicable, used to extend the restrictions; or
(2) the petitions, written ballots, or both, as
applicable, sufficient to reflect the required consent to
termination must be filed for record before a time specified in the
petitions, written ballots, or both, as applicable.
Sec. 212.008. APPLICABILITY OF EXTENDED RESTRICTIONS. (a)
An extension of restrictions under this chapter is binding on all
lots and all unplatted real property in the subdivision, without
regard to whether the owner or owners of any individual lot or
unplatted real property signify consent to extend the restrictions.
Any statute authorizing a property owner to opt out of the
applicability of restrictions to the owner's property does not
apply to restrictions extended under this chapter.
(b) An extension of restrictions under this chapter is
binding on a lienholder or a person who acquires title to property
at a foreclosure sale or by deed from a foreclosing lienholder.
Sec. 212.009. UNCONSTITUTIONAL RESTRICTIONS NOT EXTENDED.
If a provision in restrictions extended under this chapter is void
and unenforceable under the United States Constitution, the
restrictions are considered as if the void and unenforceable
provision was never contained in the restrictions.
Sec. 212.010. USE OF ORIGINAL EXTENSION PROCEDURE;
PROCEDURES CUMULATIVE. (a) In addition to the procedure provided
by this chapter for the extension of restrictions, the procedure
provided by the original restrictions for the initial extension of
the restrictions, including the requirement that a specified
percentage of a specified class approve the extension, may be used
for successive extensions of the original restrictions, provided
that the approval obtained includes the approval of the owners of
not less than a majority of the lots in the subdivision.
(b) An extension of the restrictions as described by
Subsection (a) is for a period equal to the original term of the
restrictions or a shorter period agreed to by the owners of a
majority of the lots in the subdivision.
(c) The procedure provided by this chapter for the extension
or termination of restrictions is cumulative of and not in lieu of
any other method by which restrictions of a subdivision to which
this chapter applies may be added to, modified, created, extended,
or terminated.
Sec. 212.011. CONSTRUCTION OF CHAPTER AND EXTENDED
RESTRICTIONS. (a) This chapter and any petition or ballot made or
action taken in connection with an attempt to comply with this
chapter shall be liberally construed to effectuate the intent of
this chapter and the petition, ballot, or action.
(b) A deed restriction that is extended under this chapter
shall be liberally construed to give effect to the restriction's
purposes and intent.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2011.