By: Anderson of Dallas H.B. No. 1821
A BILL TO BE ENTITLED
AN ACT
relating to the delivery of subdivision information by a property
owners' association to purchasers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Section 207.003, Property Code,
is amended to read as follows:
Sec. 207.003. DELIVERY OF SUBDIVISION INFORMATION TO OWNER
OR PURCHASER.
SECTION 2. Section 207.003, Property Code, is amended by
amending Subsections (a), (b), and (f) and adding Subsections (a-1)
and (c-1) to read as follows:
(a) Not later than the 10th business day after the date a
written request for subdivision information is received from an
owner or the[,] owner's agent, a purchaser of property in a
subdivision or the purchaser's agent, or a title insurance company
or its agent acting on behalf of the owner or purchaser, payment for
the requested information is received, and the evidence of the
requestor's authority to order a resale certificate under
Subsection (a-1) is received and verified, the property owners'
association shall deliver to the owner or the[,] owner's agent, the
purchaser or the purchaser's agent, or the title insurance company
or its agent:
(1) a current copy of the restrictions applying to the
subdivision;
(2) a current copy of the bylaws and rules of the
property owners' association; and
(3) a resale certificate that complies with Subsection
(b).
(a-1) For a request from a purchaser of property in a
subdivision or the purchaser's agent, the property owners'
association may require the purchaser or purchaser's agent to
provide to the association, before the association begins the
process of preparing or delivers the items listed in Subsection
(a), reasonable evidence that the purchaser has a contractual or
other right to acquire property in the subdivision.
(b) A resale certificate under Subsection (a) must contain:
(1) a statement of any right of first refusal, other
than a right of first refusal that is prohibited by statute, and any
[or] other restraint contained in the restrictions or restrictive
covenants that restricts the owner's right to transfer the owner's
property;
(2) the frequency and amount of any regular
assessments;
(3) the amount of any special assessment that has been
approved as of [is due after] the date the resale certificate is
prepared;
(4) the total of all amounts due and unpaid to the
property owners' association that are attributable to the owner's
property;
(5) capital expenditures, if any, approved by the
property owners' association for the property owners' association's
current fiscal year;
(6) the amount of reserves, if any, for capital
expenditures;
(7) the property owners' association's current
operating budget and balance sheet;
(8) the total of any unsatisfied judgments against the
property owners' association;
(9) the style and cause number of any pending lawsuit
in which the property owners' association is a defendant, other
than a lawsuit relating to unpaid property taxes of an individual
member of the association;
(10) a copy of a certificate of insurance showing the
property owners' association's property and liability insurance
relating to the common areas and common facilities;
(11) a description of any conditions on the owner's
property that the property owners' association board has actual
knowledge are in violation of the restrictions applying to the
subdivision or the bylaws or rules of the property owners'
association;
(12) a summary or copy of notices received by the
property owners' association from any governmental authority
regarding health or housing code violations existing on the
preparation date of the certificate relating to the owner's
property or any common areas or common facilities owned or leased by
the property owners' association;
(13) the amount of any administrative transfer fee
charged by the property owners' association for a change of
ownership of property in the subdivision;
(14) the name, mailing address, and telephone number
of the property owners' association's managing agent, if any; [and]
(15) a statement indicating whether the restrictions
allow foreclosure of a property owners' association's lien on the
owner's property for failure to pay assessments; and
(16) a statement of all fees associated with the
transfer of ownership, including a description of each fee, to whom
each fee is paid, and the amount of each fee.
(c-1) A purchaser of the property shall pay the fee to the
property owners' association or its agent for issuing the resale
certificate unless otherwise agreed by the purchaser and seller of
the property. The property owners' association may require payment
before beginning the process of providing a resale certificate but
may not process a payment for a resale certificate until the
certificate is available for delivery. The association may not
charge a fee if the certificate is not provided in the time
prescribed by Subsection (a).
(f) Not later than the seventh business day after the date a
written request for an update of [to] a resale certificate
delivered under Subsection (a) is received from an owner, owner's
agent, or title insurance company or its agent acting on behalf of
the owner, the property owners' association shall deliver to the
owner, owner's agent, or title insurance company or its agent an
updated resale certificate that contains the following
information:
(1) if a right of first refusal or other restraint on
sale is contained in the restrictions, a statement of whether the
property owners' association waives the restraint on sale;
(2) the status of any unpaid special assessments,
dues, or other payments attributable to the owner's property; and
(3) any changes to the information provided in the
resale certificate issued under Subsection (a).
SECTION 3. The change in law made by this Act applies only
to a written request for subdivision information submitted on or
after the effective date of this Act. A written request for
subdivision information submitted before the effective date of this
Act is governed by the law in effect immediately before that date,
and that law is continued in effect for that purpose.
SECTION 4. This Act takes effect September 1, 2011.