| 1 | 1 | | 82R13675 NC-D |
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| 2 | 2 | | By: Solomons, et al. H.B. No. 565 |
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| 3 | 3 | | Substitute the following for H.B. No. 565: |
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| 4 | 4 | | By: Orr C.S.H.B. No. 565 |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the procedures required for the foreclosure of a |
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| 10 | 10 | | property owners' association's assessment lien. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Chapter 209, Property Code, is amended by adding |
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| 13 | 13 | | Section 209.0091 to read as follows: |
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| 14 | 14 | | Sec. 209.0091. JUDICIAL FORECLOSURE REQUIRED. (a) Except |
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| 15 | 15 | | as provided by Subsection (d), a property owners' association may |
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| 16 | 16 | | not foreclose a property owners' association assessment lien unless |
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| 17 | 17 | | the association first obtains a court order in an application for |
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| 18 | 18 | | expedited foreclosure under the rules adopted by the supreme court |
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| 19 | 19 | | under Subsection (b). |
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| 20 | 20 | | (b) The supreme court, as an exercise of the court's |
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| 21 | 21 | | authority under Section 74.024, Government Code, shall adopt rules |
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| 22 | 22 | | establishing expedited foreclosure proceedings for use by a |
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| 23 | 23 | | property owners' association in foreclosing an assessment lien of |
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| 24 | 24 | | the association. Except as provided by this section, the rules |
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| 25 | 25 | | adopted under this subsection must be substantially similar to the |
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| 26 | 26 | | rules adopted by the supreme court under Section 50(r), Article |
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| 27 | 27 | | XVI, Texas Constitution. |
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| 28 | 28 | | (c) Rules adopted under Subsection (b) must require service |
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| 29 | 29 | | on the record owners of the property of a copy of the notice and |
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| 30 | 30 | | application for foreclosure of the lien by the same methods of |
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| 31 | 31 | | service prescribed for service of citation under Rules 106 through |
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| 32 | 32 | | 119, Texas Rules of Civil Procedure. |
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| 33 | 33 | | (d) Expedited foreclosure is not required under this |
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| 34 | 34 | | section if the owner of the property that is subject to foreclosure |
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| 35 | 35 | | agrees in writing at the time the foreclosure is sought to waive |
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| 36 | 36 | | expedited foreclosure under this section. A waiver under this |
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| 37 | 37 | | subsection may not be required as a condition of the transfer of |
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| 38 | 38 | | title to real property. |
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| 39 | 39 | | SECTION 2. (a) Section 209.0091, Property Code, as added |
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| 40 | 40 | | by this Act, applies only to a foreclosure sale that occurs after |
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| 41 | 41 | | January 1, 2012. A foreclosure sale that occurs on or before |
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| 42 | 42 | | January 1, 2012, is governed by the law in effect immediately before |
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| 43 | 43 | | the effective date of this Act, and that law is continued in effect |
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| 44 | 44 | | for that purpose. |
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| 45 | 45 | | (b) Not later than January 1, 2012, the Supreme Court of |
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| 46 | 46 | | Texas shall adopt rules of civil procedure under Section 209.0091, |
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| 47 | 47 | | Property Code, as added by this Act. |
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| 48 | 48 | | SECTION 3. This Act takes effect September 1, 2011. |
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