82R13675 NC-D
By: Solomons, et al. H.B. No. 565
Substitute the following for H.B. No. 565:
By: Orr C.S.H.B. No. 565
A BILL TO BE ENTITLED
AN ACT
relating to the procedures required for the foreclosure of a
property owners' association's assessment lien.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 209, Property Code, is amended by adding
Section 209.0091 to read as follows:
Sec. 209.0091. JUDICIAL FORECLOSURE REQUIRED. (a) Except
as provided by Subsection (d), a property owners' association may
not foreclose a property owners' association assessment lien unless
the association first obtains a court order in an application for
expedited foreclosure under the rules adopted by the supreme court
under Subsection (b).
(b) The supreme court, as an exercise of the court's
authority under Section 74.024, Government Code, shall adopt rules
establishing expedited foreclosure proceedings for use by a
property owners' association in foreclosing an assessment lien of
the association. Except as provided by this section, the rules
adopted under this subsection must be substantially similar to the
rules adopted by the supreme court under Section 50(r), Article
XVI, Texas Constitution.
(c) Rules adopted under Subsection (b) must require service
on the record owners of the property of a copy of the notice and
application for foreclosure of the lien by the same methods of
service prescribed for service of citation under Rules 106 through
119, Texas Rules of Civil Procedure.
(d) Expedited foreclosure is not required under this
section if the owner of the property that is subject to foreclosure
agrees in writing at the time the foreclosure is sought to waive
expedited foreclosure under this section. A waiver under this
subsection may not be required as a condition of the transfer of
title to real property.
SECTION 2. (a) Section 209.0091, Property Code, as added
by this Act, applies only to a foreclosure sale that occurs after
January 1, 2012. A foreclosure sale that occurs on or before
January 1, 2012, 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) Not later than January 1, 2012, the Supreme Court of
Texas shall adopt rules of civil procedure under Section 209.0091,
Property Code, as added by this Act.
SECTION 3. This Act takes effect September 1, 2011.