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. Subsections (a)-(f), Section 207.003, Property
Code, are amended to read as follows:
(a) Not later than the 10th business day after the date a
written request for subdivision information an association
disclosure statement is received from an owner, owner's agent,
purchaser of property in a subdivision, such purchaser's agent, or
title insurance company or its agent acting on behalf of the owner
or purchaser, the property owners' association shall deliver to the
owner, owner's agent, purchaser, purchaser's agent, or title
insurance company or its agent, the items listed below in this
Subsection (a). In the case of a request by a purchaser of property
in a subdivision or such purchaser's agent, prior to delivering the
items listed below, the property owners' association shall be
entitled to require that such purchaser or purchaser's agent
provide to the property owners' association reasonable evidence
that such purchaser has a contractual or other right to acquire
property in the subdivision.
(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) an resale certificate association disclosure
statement that complies with Subsection (b).
(b) An resale certificate association disclosure statement
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
association disclosure statement 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) A property owners' association may charge a reasonable
fee to assemble, copy, and deliver the information required by this
section and may charge a reasonable fee to prepare and deliver an
update of an resale certificate association disclosure statement
under Subsection (f). The party requesting an association
disclosure statement described in Subsection (a) shall be
responsible for payment of any fee charged for such an association
disclosure statement.
(d) The property owners' association shall deliver the
information required by Subsection (a) or (f) to the person
specified in the written request. A written request that does not
specify the name and location to which the information is to be sent
is not effective. The property owners' association may deliver the
information required by Subsection (a) and any update to the resale
certificate association disclosure statement required by
Subsection (f) by mail, hand delivery, or alternative delivery
means specified in the written request.
(e) Unless required by a dedicatory instrument, neither a
property owners' association or its agent is required to inspect a
property before issuing an resale certificate association
disclosure statement or an update to an resale certificate
association disclosure statement.
(f) Not later than the seventh business day after the date a
written request for an update to an resale certificate association
disclosure statement 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
association disclosure statement 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 association disclosure statement 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.