Texas House Bill HB8

Texas 2011 - 82nd Regular

• Introduced: 3/1/11
• Out of House Committee: 4/1/11
• Voted on by House: 5/5/11
• Refer: 3/8/11
• Out of Senate Committee: 5/16/11
• Report Pass: 3/30/11
• Voted on by Senate: 5/19/11
• Engrossed: 5/5/11
• Governor Action: 6/17/11
• Refer: 5/9/11
• Report Pass: 5/16/11
• Enrolled: 5/23/11
• Passed: 6/17/11

Caption

Relating to prohibiting certain private transfer fees and the preservation of private real property rights; providing penalties.

Impact

If enacted, HB8 would modify the Texas Property Code by adding a new subchapter that prevents the enforcement of private transfer fee obligations created after the bill becomes effective. This change aims to protect subsequent property owners from unexpected fees that could inflate the cost of homeownership. The bill mandates a clear framework about when these obligations can exist and emphasizes that any claims related to such fees must comply with new notice requirements, thus increasing transparency in property transactions.

Summary

House Bill 8 focuses on prohibiting certain private transfer fees related to real property and aims to preserve private property rights in Texas. The bill defines a private transfer fee as any required payment that must be made upon the transfer of property ownership. Such fees can be problematic as they may impose ongoing financial obligations on new property owners, hindering property transactions. By rendering certain private transfer fee obligations void, the bill seeks to facilitate a more straightforward process for transferring property and ensuring that new owners are not burdened by previously established obligations.

Contention

There are anticipated debates surrounding HB8, particularly regarding the balance between protecting property owners and the rights of original sellers to establish private transfer fees. Supporters argue that these fees can unfairly encumber future owners and inhibit market activity, while opponents may contend that they have a right to enforce these fees as part of contractual agreements. Furthermore, the bill includes provisions for penalties, allowing the Texas Attorney General to take action against violations—potentially leading to discussions around regulation enforcement and consumer protection.