Flores Bill Lets HOA Owners Skip Dues If Filings Lapse

The text as introduced · 695 words

90R3265 RAL-D

By: Flores
S.B. No. 306

A BILL TO BE ENTITLED

AN ACT

relating to information that a property owners' association must

file with the Texas Real Estate Commission.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Sections 209.004(c) and (e), Property Code, are

amended to read as follows:

(c) Except as provided under Subsections (d) and (e), the

property owners' association and its officers, directors,

employees, and agents are not subject to liability to any person for

a delay in recording or failure to record a management certificate

with a county clerk's office [ or electronically file the management

certificate with the Texas Real Estate Commission ], unless the

delay or failure is wilful or caused by gross negligence.

(e) A lien of a property owners' association that fails to

file a management certificate or an amended management certificate

under this section to secure an amount due on the effective date of

a transfer to a bona fide purchaser is enforceable only for an

amount incurred after the effective date of sale. An owner is not

liable for attorney's fees incurred by a property owners'

association relating to the collection of a delinquent assessment

against the owner or interest on the amount of a delinquent

assessment if the attorney's fees are incurred by the association

or the interest accrues during the period a management certificate

is not recorded with a county clerk [ or electronically filed with

the Texas Real Estate Commission ] as required by this section.

SECTION 2. Chapter 209, Property Code, is amended by adding

Section 209.00405 to read as follows:

Sec. 209.00405. INFORMATION TO BE FILED WITH TEXAS REAL

ESTATE COMMISSION. (a) In this section, "commission" means the

Texas Real Estate Commission.

(b) Not later than the seventh day after the date a property

owners' association files a management certificate for recording

under Section 209.004(a) or files an amended management certificate

for recording under Section 209.004(b), the property owners'

association shall electronically file the following information

with the commission:

(1) the management certificate or amended management

certificate;

(2) the property owners' association's dedicatory

instruments; and

(3) the enforcement policy required under Section

209.0061, as applicable.

(c) The commission shall only collect the information

required under Subsection (b) for the purpose of making the data

accessible to the general public through an Internet website.

(d) Except as provided under Subsections (e) and (f), a

property owners' association and its officers, directors,

employees, and agents are not subject to liability to any person for

a delay in electronically filing or failure to electronically file

the information required under Subsection (b) with the commission,

unless the delay or failure is wilful or caused by gross negligence.

(e) If a property owners' association fails to file the

information required under Subsection (b), an owner is not liable

to the property owners' association for any assessments, fines, or

fees levied against the owner by the association during the period

the information is not electronically filed with the commission as

required under Subsection (b).

(f) An owner is not liable for attorney's fees incurred by a

property owners' association relating to the collection of a

delinquent assessment against the owner or interest on the amount

of a delinquent assessment if the attorney's fees are incurred by

the association or the interest accrues during the period a

management certificate is not electronically filed with the

commission as required under Subsection (b)(1).

SECTION 3. Section 209.004(b-1), Property Code, is

repealed.

SECTION 4. (a) Not later than December 1, 2027, the Texas

Real Estate Commission shall establish and make available the

system necessary for the electronic filing of the information

required under Section 209.00405(b), Property Code, as added by

this Act.

(b) Notwithstanding Section 209.00405(b), Property Code, as

added by this Act, a property owners' association that has on or

before December 1, 2027, recorded a management certificate or

amended management certificate with a county clerk under Section

209.004, Property Code, shall electronically file the information

required by Section 209.00405(b), Property Code, with the Texas

Real Estate Commission not later than June 1, 2028.

SECTION 5. This Act takes effect September 1, 2027.