Texas House Bill HB1335

Texas 2015 - 84th Regular

Caption

Relating to the collection of attorney fees in property owners' association foreclosures.

Impact

The modifications proposed in HB1335 aim to balance the interests of both property owners and associations. By permitting the recovery of attorney fees only after proper notification, the bill seeks to protect property owners from excessive legal costs incurred without their knowledge. This legislative amendment could influence how homeowners and associations engage in financial disputes, potentially leading to more amicable resolutions and less reliance on costly legal action.

Summary

House Bill 1335 addresses the regulation of attorney fees associated with foreclosures conducted by property owners' associations (POAs). The bill amends Section 209.008 of the Texas Property Code to specify that POAs can only recover reasonable attorney fees and other costs when they provide written notice to property owners. This notice must inform owners that fees will be assessed if their delinquency continues after a given date. The intent is to prevent unexpected financial burdens on property owners by ensuring clear communication about potential legal costs before they accumulate.

Contention

While the bill is broadly aimed at providing clarity and fairness in attorney fee collection, there are points of contention concerning the limits placed on fees. Some stakeholders may argue that the cap of $500 on a portion of attorney fees could inadequately cover the costs associations may incur during foreclosure actions. Conversely, advocates of the bill may assert that such caps are necessary to prevent abuse and protect property owners from excessive financial penalties, ultimately encouraging more transparent practices in property management.