Texas 2025 - 89th Regular

Texas House Bill HB4211 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R15784 SCR-D
2	2	By: Noble H.B. No. 4211
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to certain residential property interests controlled by
10	10	certain entities.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Title 12, Property Code, is amended by adding
13	13	Chapter 223 to read as follows:
14	14	CHAPTER 223. BUSINESS ENTITY-OWNED RESIDENTIAL ARRANGEMENTS
15	15	Sec. 223.001. DEFINITIONS. In this chapter:
16	16	(1) "Business entity" means a partnership,
17	17	corporation, joint venture, limited liability company, or other
18	18	business organization or business association, however organized.
19	19	(2) "Managing entity" means a business entity that
20	20	owns residential property used in a residential arrangement.
21	21	(3) "Residential arrangement" means an arrangement in
22	22	which the purchaser of an interest in a business entity is entitled
23	23	to exclusive possession of residential property owned by the entity
24	24	as long as the purchaser holds the interest in the business entity.
25	25	(4) "Residential property" means the real property and
26	26	improvements for a single-family house, duplex, triplex, or
27	27	quadruplex.
28	28	Sec. 223.002. APPLICABILITY. This chapter does not apply
29	29	to a timeshare plan, as defined by Section 221.002.
30	30	Sec. 223.003. AGREEMENTS AND RULES. (a) An agreement for
31	31	the purchase of an interest in a managing entity must disclose to
32	32	the purchaser that the agreement is for the purchase of an interest
33	33	in the entity and not in any residential property itself.
34	34	(b) The purchase agreement and any other agreement or rules
35	35	governing the residential arrangement or the ownership interest in
36	36	the entity may not require that a dispute concerning the
37	37	arrangement or interest be brought before a tribunal other than a
38	38	court established under the laws of this state or the United States.
39	39	Sec. 223.004. DISCRIMINATION PROHIBITED. A managing entity
40	40	may not take an action with respect to an interest in the entity in a
41	41	manner that would be a violation of Chapter 301 if the interest in
42	42	the entity were an interest in real property, including:
43	43	(1) restricting the transfer of the interest;
44	44	(2) imposing requirements to maintain the interest; or
45	45	(3) refusing to grant an interest to an otherwise
46	46	qualified person.
47	47	Sec. 223.005. TRANSFER OF INTEREST. Notwithstanding any
48	48	provision in an agreement between the owner and a managing entity,
49	49	an owner of an interest in a managing entity may transfer the
50	50	interest without approval from the managing entity.
51	51	Sec. 223.006. CERTAIN CHARGES PROHIBITED. A managing
52	52	entity may not charge a fee for or share in the proceeds of the
53	53	transfer of an interest in the managing entity from an owner to a
54	54	subsequent purchaser.
55	55	Sec. 223.007. DECEPTIVE TRADE PRACTICE. A violation of
56	56	this chapter is a deceptive trade practice under Subchapter E,
57	57	Chapter 17, Business & Commerce Code.
58	58	SECTION 2. Section 301.042, Property Code, is amended by
59	59	adding Subsection (a-1) to read as follows:
60	60	(a-1) Subsection (a) does not apply to the sale, rental, or
61	61	occupancy of a dwelling that is a single-family house, duplex,
62	62	triplex, or quadruplex located on a subdivided lot in a parcel of
63	63	land 25 acres or greater owned by a religious organization,
64	64	association, or society or a nonprofit institution or organization
65	65	operated, supervised, or controlled by or in conjunction with a
66	66	religious organization, association, or society.
67	67	SECTION 3. This Act takes effect September 1, 2025.