82R6642 TJS-D
By: Dutton H.B. No. 1639
A BILL TO BE ENTITLED
AN ACT
relating to the recovery of attorney's fees in foreclosure actions
by property owners' associations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 209.008, Property Code, is amended by
amending Subsection (a) and adding Subsection (h) to read as
follows:
(a) Except as provided by this section, a [A] property
owners' association may collect reimbursement of reasonable
attorney's fees and other reasonable costs incurred by the
association relating to collecting amounts, including damages, due
the association for enforcing restrictions or the bylaws or rules
of the association only if the owner is provided a written notice
that attorney's fees and costs will be charged to the owner if the
delinquency or violation continues after a date certain.
(h) Notwithstanding Subsection (f), an owner is not liable
for attorney's fees incurred by the property owners' association in
judicially or nonjudicially foreclosing the association's
assessment lien on the owner's property.
SECTION 2. (a) Except as provided by this section, the
change in law made by this Act applies only to a judicial
foreclosure in which an action is commenced or a nonjudicial
foreclosure in which a notice of default under Section 51.002,
Property Code, is given on or after the effective date of this Act.
A foreclosure in which an action is commenced or a notice of default
is given 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.
(b) The change in law made by this Act does not apply to
liability for attorney's fees incurred before the effective date of
this Act. Liability for attorney's fees incurred 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 3. This Act takes effect September 1, 2011.