PROPERTY CODE
TXCode
PR
<num value="1">TITLE 1.</num>
<heading>GENERAL PROVISIONS</heading>
<chapter identifier="/us/tx/pr/t1/c1">
<num value="1">CHAPTER 1.</num>
<heading>GENERAL PROVISIONS</heading>
<section identifier="/us/tx/pr/t1/c1/s1.001">
<num value="1.001">Sec. 1.001.</num>
<heading>PURPOSE OF CODE</heading>
<subsection identifier="/us/tx/pr/t1/c1/s1.001/a">
<num value="a">(a)</num>
<content>This code is enacted as a part of the state's continuing statutory revision program begun by the Texas Legislative Council in 1963 as directed by the legislature in Chapter 448, Acts of the 58th Legislature, Regular Session, 1963 (Article 5429b-1, Vernon's Texas Civil Statutes). The program contemplates a topic-by-topic revision of the state's general and permanent statute law without substantive change.</content>
</subsection>
<subsection identifier="/us/tx/pr/t1/c1/s1.001/b">
<num value="b">(b)</num>
<chapeau>Consistent with the objectives of the statutory revision program, the purpose of this code is to make the law encompassed by this code more accessible and understandable by:</chapeau>
<paragraph identifier="/us/tx/pr/t1/c1/s1.001/1">
<num value="1">(1)</num>
<content>rearranging the statutes into a more logical order;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t1/c1/s1.001/2">
<num value="2">(2)</num>
<content>employing a format and numbering system designed to facilitate citation of the law and to accommodate future expansion of the law;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t1/c1/s1.001/3">
<num value="3">(3)</num>
<content>eliminating repealed, duplicative, unconstitutional, expired, executed, and other ineffective provisions; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t1/c1/s1.001/4">
<num value="4">(4)</num>
<content>restating the law in modern American English to the greatest extent possible.</content>
</paragraph>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3478, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t1/c1/s1.002">
<num value="1.002">Sec. 1.002.</num>
<heading>CONSTRUCTION OF CODE</heading>
<content>The Code Construction Act (Chapter 311, Government Code) applies to the construction of each provision in this code, except as otherwise expressly provided by this code.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3478, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1985, 69th Leg., ch. 479, Sec. 70, eff. Sept. 1, 1985.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t1/c1/s1.003">
<num value="1.003">Sec. 1.003.</num>
<heading>INTERNAL REFERENCES</heading>
<chapeau>In this code:</chapeau>
<paragraph identifier="/us/tx/pr/t1/c1/s1.003/1">
<num value="1">(1)</num>
<content>a reference to a title, chapter, or section without further identification is a reference to a title, chapter, or section of this code; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t1/c1/s1.003/2">
<num value="2">(2)</num>
<content>a reference to a subtitle, subchapter, subsection, subdivision, paragraph, or other numbered or lettered unit without further identification is a reference to a unit of the next larger unit of this code in which the reference appears.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3479, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t1/c1/s1.004">
<num value="1.004">Sec. 1.004.</num>
<heading>PREEMPTION</heading>
<subsection identifier="/us/tx/pr/t1/c1/s1.004/a">
<num value="a">(a)</num>
<content>Unless expressly authorized by another statute, a municipality or county may not adopt, enforce, or maintain an ordinance, order, or rule regulating conduct in a field of regulation that is occupied by a provision of this code. An ordinance, order, or rule that violates this section is void, unenforceable, and inconsistent with this code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t1/c1/s1.004/b">
<num value="b">(b)</num>
<content>For purposes of Subsection (a), a field occupied by a provision of this code includes an ordinance, order, or rule regulating evictions or otherwise prohibiting, restricting, or delaying delivery of a notice to vacate or filing a suit to recover possession of the premises under Chapter 24.</content>
</subsection>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 899 (H.B. 2127), Sec. 15, eff. September 1, 2023.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t1/c2">
<num value="2">CHAPTER 2.</num>
<heading>NATURE OF PROPERTY</heading>
<section identifier="/us/tx/pr/t1/c2/s2.001">
<num value="2.001">Sec. 2.001.</num>
<heading>MANUFACTURED HOUSING</heading>
<subsection identifier="/us/tx/pr/t1/c2/s2.001/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (b), a manufactured home is personal property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t1/c2/s2.001/b">
<num value="b">(b)</num>
<chapeau>A manufactured home is real property if:</chapeau>
<paragraph identifier="/us/tx/pr/t1/c2/s2.001/1">
<num value="1">(1)</num>
<content>the statement of ownership and location for the home issued under Section 1201.207, Occupations Code, reflects that the owner has elected to treat the home as real property; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t1/c2/s2.001/2">
<num value="2">(2)</num>
<content>a certified copy of the statement of ownership and location has been filed in the real property records in the county in which the home is located.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t1/c2/s2.001/c">
<num value="c">(c)</num>
<content>In this section, "consumer," "document of title," "first retail sale," "manufactured home," and "mobile home" have the meanings assigned by Chapter 1201, Occupations Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t1/c2/s2.001/d">
<num value="d">(d)</num>
<content>to (h) Repealed by Acts 2003, 78th Leg., ch. 338, Sec. 52(2).</content>
</subsection>
<subsection identifier="/us/tx/pr/t1/c2/s2.001/i">
<num value="i">(i)</num>
<content>This section does not require a retailer or retailer's agent to obtain a license under Chapter 1101, Occupations Code.</content>
</subsection>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 978, Sec. 15, eff. Sept. 1, 1995. Amended by Acts 2001, 77th Leg., ch. 899, Sec. 5, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1055, Sec. 5, eff. Jan. 1, 2002; Acts 2003, 78th Leg., ch. 338, Sec. 41 to 43, 52(2), eff. June 18, 2003; Acts 2003, 78th Leg., ch. 1276, Sec. 14A.802, eff. Sept. 1, 2003.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t1/c2/s2.002">
<num value="2.002">Sec. 2.002.</num>
<heading>DRY FIRE HYDRANTS: AGREEMENT IS PERSONAL</heading>
<subsection identifier="/us/tx/pr/t1/c2/s2.002/a">
<num value="a">(a)</num>
<content>An agreement between an owner, lessee, or occupant of real property and a fire-fighting agency relating to the connection of a dry fire hydrant to a source of water on the property or the installation of a dry fire hydrant on the property may not bind a subsequent owner, lessee, or occupant of the real property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t1/c2/s2.002/b">
<num value="b">(b)</num>
<chapeau>In this section:</chapeau>
<paragraph identifier="/us/tx/pr/t1/c2/s2.002/1">
<num value="1">(1)</num>
<content>"Dry fire hydrant" means a fire hydrant that is connected to a stock tank, pond, or other similar source of water from which water is pumped in case of fire.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t1/c2/s2.002/2">
<num value="2">(2)</num>
<chapeau>"Fire-fighting agency" means any entity that provides fire-fighting services, including:</chapeau>
<subparagraph identifier="/us/tx/pr/t1/c2/s2.002/A">
<num value="A">(A)</num>
<content>a volunteer fire department; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t1/c2/s2.002/B">
<num value="B">(B)</num>
<content>a political subdivision of this state authorized to provide fire-fighting services.</content>
</subparagraph>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 437, Sec. 2, eff. Sept. 1, 1997.</sourceCredit>
</section>
</chapter>
<num value="2">TITLE 2.</num>
<heading>CONVEYANCES</heading>
<chapter identifier="/us/tx/pr/t2/c5">
<num value="5">CHAPTER 5.</num>
<heading>CONVEYANCES</heading>
<subchapter identifier="/us/tx/pr/t2/c5/scA">
<num value="A">SUBCHAPTER A.</num>
<heading>GENERAL PROVISIONS</heading>
<section identifier="/us/tx/pr/t2/c5/scA/s5.001">
<num value="5.001">Sec. 5.001.</num>
<heading>FEE SIMPLE</heading>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.001/a">
<num value="a">(a)</num>
<content>An estate in land that is conveyed or devised is a fee simple unless the estate is limited by express words or unless a lesser estate is conveyed or devised by construction or operation of law. Words previously necessary at common law to transfer a fee simple estate are not necessary.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.001/b">
<num value="b">(b)</num>
<content>This section applies only to a conveyance occurring on or after February 5, 1840.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3480, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scA/s5.002">
<num value="5.002">Sec. 5.002.</num>
<heading>FAILING AS A CONVEYANCE</heading>
<content>An instrument intended as a conveyance of real property or an interest in real property that, because of this chapter, fails as a conveyance in whole or in part is enforceable to the extent permitted by law as a contract to convey the property or interest.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3480, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scA/s5.003">
<num value="5.003">Sec. 5.003.</num>
<heading>PARTIAL CONVEYANCE</heading>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.003/a">
<num value="a">(a)</num>
<content>An alienation of real property that purports to transfer a greater right or estate in the property than the person making the alienation may lawfully transfer alienates only the right or estate that the person may convey.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.003/b">
<num value="b">(b)</num>
<content>Neither the alienation by deed or will of an estate on which a remainder depends nor the union of the estate with an inheritance by purchase or descent affects the remainder.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3480, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scA/s5.004">
<num value="5.004">Sec. 5.004.</num>
<heading>CONVEYANCE BY AUTHORIZED OFFICER</heading>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.004/a">
<num value="a">(a)</num>
<content>A conveyance of real property by an officer legally authorized to sell the property under a judgment of a court within the state passes absolute title to the property to the purchaser.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.004/b">
<num value="b">(b)</num>
<content>This section does not affect the rights of a person who is not or who does not claim under a party to the conveyance or judgment.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3480, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scA/s5.005">
<num value="5.005">Sec. 5.005.</num>
<heading>ALIENS</heading>
<content>Except as provided by Subchapter H, an alien has the same real and personal property rights as a United States citizen.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3481, ch. 576, Sec. 1, eff. Jan. 1, 1984.
Amended by:
Acts 2025, 89th Leg., R.S., Ch. 956 (S.B. 17), Sec. 3, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scA/s5.006">
<num value="5.006">Sec. 5.006.</num>
<heading>ATTORNEY'S FEES IN BREACH OF RESTRICTIVE COVENANT ACTION</heading>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.006/a">
<num value="a">(a)</num>
<content>In an action based on breach of a restrictive covenant pertaining to real property, the court shall allow to a prevailing party who asserted the action reasonable attorney's fees in addition to the party's costs and claim.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.006/b">
<num value="b">(b)</num>
<chapeau>To determine reasonable attorney's fees, the court shall consider:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.006/1">
<num value="1">(1)</num>
<content>the time and labor required;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.006/2">
<num value="2">(2)</num>
<content>the novelty and difficulty of the questions;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.006/3">
<num value="3">(3)</num>
<content>the expertise, reputation, and ability of the attorney; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.006/4">
<num value="4">(4)</num>
<content>any other factor.</content>
</paragraph>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3481, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scA/s5.007">
<num value="5.007">Sec. 5.007.</num>
<heading>VENDOR AND PURCHASER RISK ACT</heading>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.007/a">
<num value="a">(a)</num>
<content>Any contract made in this state for the purchase and sale of real property shall be interpreted as including an agreement that the parties have the rights and duties prescribed by this section, unless the contract expressly provides otherwise.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.007/b">
<num value="b">(b)</num>
<content>If, when neither the legal title nor the possession of the subject matter of the contract has been transferred, all or a material part of the property is destroyed without fault of the purchaser or is taken by eminent domain, the vendor may not enforce the contract, and the purchaser is entitled to recover any portion of the contract price paid.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.007/c">
<num value="c">(c)</num>
<content>If, when either the legal title or the possession of the subject matter of the contract has been transferred, all or any part of the property is destroyed without fault of the vendor or is taken by eminent domain, the purchaser is not relieved from the duty to pay the contract price, nor is the purchaser entitled to recover any portion of the price already paid.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.007/d">
<num value="d">(d)</num>
<content>This section shall be interpreted and construed to accomplish its general purpose to make uniform the law of those states that enact the Uniform Vendor and Purchaser Risk Act.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.007/e">
<num value="e">(e)</num>
<content>This section may be cited as the Uniform Vendor and Purchaser Risk Act.</content>
</subsection>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 1002, Sec. 1, eff. Sept. 1, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scA/s5.008">
<num value="5.008">Sec. 5.008.</num>
<heading>SELLER'S DISCLOSURE OF PROPERTY CONDITION</heading>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.008/a">
<num value="a">(a)</num>
<content>A seller of residential real property comprising not more than one dwelling unit located in this state shall give to the purchaser of the property a written notice as prescribed by this section or a written notice substantially similar to the notice prescribed by this section which contains, at a minimum, all of the items in the notice prescribed by this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.008/b">
<num value="b">(b)</num>
<content>The notice must be executed and must, at a minimum, read substantially similar to the following:</content>
</subsection>
<sourceCredit>SELLER'S DISCLOSURE NOTICE
CONCERNING THE PROPERTY AT ___________________________________
(Street Address and City)
THIS NOTICE IS A DISCLOSURE OF SELLER'S KNOWLEDGE OF THE CONDITION OF THE PROPERTY AS OF THE DATE SIGNED BY SELLER AND IS NOT A SUBSTITUTE FOR ANY INSPECTIONS OR WARRANTIES THE PURCHASER MAY WISH TO OBTAIN. IT IS NOT A WARRANTY OF ANY KIND BY SELLER OR SELLER'S AGENTS.
Seller __ is __ is not occupying the Property.
If unoccupied, how long since Seller has occupied the Property?
________________________________________________________________
1. The Property has the items checked below:
Write Yes (Y), No (N), or Unknown (U).
Roof Type: ________________________________ Age: _____(approx)
Are you (Seller) aware of any of the above items that are not in working condition, that have known defects, or that are in need of repair? __ Yes __ No __ Unknown.
If yes, then describe. (Attach additional sheets if necessary):
________________________________________________________________
________________________________________________________________
2. Does the property have working smoke detectors installed in accordance with the smoke detector requirements of Chapter 766, Health and Safety Code?* __ Yes __ No __ Unknown.
*Chapter 766 of the Health and Safety Code requires one-family or two-family dwellings to have working smoke detectors installed in accordance with the requirements of the building code in effect in the area in which the dwelling is located, including performance, location, and power source requirements. If you do not know the building code requirements in effect in your area, you may check unknown above or contact your local building official for more information. A buyer may require a seller to install smoke detectors for the hearing impaired if: (1) the buyer or a member of the buyer's family who will reside in the dwelling is hearing impaired; (2) the buyer gives the seller written evidence of the hearing impairment from a licensed physician; and (3) within 10 days after the effective date, the buyer makes a written request for the seller to install smoke detectors for the hearing impaired and specifies the locations for installation. The parties may agree who will bear the cost of installing the smoke detectors and which brand of smoke detectors to install.
3. Are you (Seller) aware of any known defects/malfunctions in any of the following?
Write Yes (Y) if you are aware, write No (N) if you are not aware.
__ Other Structural Components (Describe):_______________________
________________________________________________________________
________________________________________________________________
If the answer to any of the above is yes, explain. (Attach additional sheets if necessary):________________________________
________________________________________________________________
________________________________________________________________
4. Are you (Seller) aware of any of the following conditions?
Write Yes (Y) if you are aware, write No (N) if you are not aware.
If the answer to any of the above is yes, explain. (Attach additional sheets if necessary):________________________________
________________________________________________________________
________________________________________________________________
*A single blockable main drain may cause a suction entrapment hazard for an individual.
5. Are you (Seller) aware of any item, equipment, or system in or on the property that is in need of repair? __ Yes (if you are aware) __ No (if you are not aware). If yes, explain (attach additional sheets as necessary). _________________________________
6. Are you (Seller) aware of any of the following conditions?* Write Yes (Y) if you are aware, write No (N) if you are not aware.
__ Present flood insurance coverage
__ Previous flooding due to a failure or breach of a reservoir or a controlled or emergency release of water from a reservoir
__ Previous water penetration into a structure on the property due to a natural flood event
Write Yes (Y) if you are aware and check wholly or partly as applicable, write No (N) if you are not aware.
__ Located ( ) wholly ( ) partly in a 100-year floodplain (Special Flood Hazard Area-Zone A, V, A99, AE, AO, AH, VE, or AR)
__ Located ( ) wholly ( ) partly in a 500-year floodplain (Moderate Flood Hazard Area-Zone X (shaded))
__ Located ( ) wholly ( ) partly in a floodway
__ Located ( ) wholly ( ) partly in a flood pool
__ Located ( ) wholly ( ) partly in a reservoir
* For purposes of this notice:
"100-year floodplain" means any area of land that:
(A) is identified on the flood insurance rate map as a special flood hazard area, which is designated as Zone A, V, A99, AE, AO, AH, VE, or AR on the map;
(B) has a one percent annual chance of flooding, which is considered to be a high risk of flooding; and
(C) may include a regulatory floodway, flood pool, or reservoir.
"500-year floodplain" means any area of land that:
(A) is identified on the flood insurance rate map as a moderate flood hazard area, which is designated on the map as Zone X (shaded); and
(B) has a two-tenths of one percent annual chance of flooding, which is considered to be a moderate risk of flooding.
"Flood pool" means the area adjacent to a reservoir that lies above the normal maximum operating level of the reservoir and that is subject to controlled inundation under the management of the United States Army Corps of Engineers.
"Flood insurance rate map" means the most recent flood hazard map published by the Federal Emergency Management Agency under the National Flood Insurance Act of 1968 (42 U.S.C. Section 4001 et seq.).
"Floodway" means an area that is identified on the flood insurance rate map as a regulatory floodway, which includes the channel of a river or other watercourse and the adjacent land areas that must be reserved for the discharge of a base flood, also referred to as a 100-year flood, without cumulatively increasing the water surface elevation more than a designated height.
"Reservoir" means a water impoundment project operated by the United States Army Corps of Engineers that is intended to retain water or delay the runoff of water in a designated surface area of land.
*Homes in high risk flood zones with mortgages from federally regulated or insured lenders are required to have flood insurance. Even when not required, the Federal Emergency Management Agency (FEMA) encourages homeowners in high risk, moderate risk, and low risk flood zones to purchase flood insurance that covers the structure(s) and the personal property within the structure(s).
9. Are you (Seller) aware of any of the following?
Write Yes (Y) if you are aware, write No (N) if you are not aware.
If the answer to any of the above is yes, explain. (Attach additional sheets if necessary): ______________________________
________________________________________________________________
________________________________________________________________
10. If the property is located in a coastal area that is seaward of the Gulf Intracoastal Waterway or within 1,000 feet of the mean high tide bordering the Gulf of Mexico, the property may be subject to the Open Beaches Act or the Dune Protection Act (Chapter 61 or 63, Natural Resources Code, respectively) and a beachfront construction certificate or dune protection permit may be required for repairs or improvements. Contact the local government with ordinance authority over construction adjacent to public beaches for more information.
11. This property may be located near a military installation and may be affected by high noise or air installation compatible use zones or other operations. Information relating to high noise and compatible use zones is available in the most recent Air Installation Compatible Use Zone Study or Joint Land Use Study prepared for a military installation and may be accessed on the Internet website of the military installation and of the county and any municipality in which the military installation is located.
_______________ ________________________________________
Date Signature of Seller
The undersigned purchaser hereby acknowledges receipt of the foregoing notice.
_______________ ________________________________________
Date Signature of Purchaser
(c) A seller or seller's agent shall have no duty to make a disclosure or release information related to whether a death by natural causes, suicide, or accident unrelated to the condition of the property occurred on the property or whether a previous occupant had, may have had, has, or may have AIDS, HIV related illnesses, or HIV infection.
(d) The notice shall be completed to the best of seller's belief and knowledge as of the date the notice is completed and signed by the seller. If the information required by the notice is unknown to the seller, the seller shall indicate that fact on the notice, and by that act is in compliance with this section.
(e) This section does not apply to a transfer:
(1) pursuant to a court order or foreclosure sale;
(2) by a trustee in bankruptcy;
(3) to a mortgagee by a mortgagor or successor in interest, or to a beneficiary of a deed of trust by a trustor or successor in interest;
(4) by a mortgagee or a beneficiary under a deed of trust who has acquired the real property at a sale conducted pursuant to a power of sale under a deed of trust or a sale pursuant to a court ordered foreclosure or has acquired the real property by a deed in lieu of foreclosure;
(5) by a fiduciary in the course of the administration of a decedent's estate, guardianship, conservatorship, or trust;
(6) from one co-owner to one or more other co-owners;
(7) made to a spouse or to a person or persons in the lineal line of consanguinity of one or more of the transferors;
(8) between spouses resulting from a decree of dissolution of marriage or a decree of legal separation or from a property settlement agreement incidental to such a decree;
(9) to or from any governmental entity;
(10) of a new residence of not more than one dwelling unit which has not previously been occupied for residential purposes; or
(11) of real property where the value of any dwelling does not exceed five percent of the value of the property.
(f) The notice shall be delivered by the seller to the purchaser on or before the effective date of an executory contract binding the purchaser to purchase the property. If a contract is entered without the seller providing the notice required by this section, the purchaser may terminate the contract for any reason within seven days after receiving the notice.
(g) In this section:
(1) "Blockable main drain" means a main drain of any size and shape that a human body can sufficiently block to create a suction entrapment hazard.
(2) "Main drain" means a submerged suction outlet typically located at the bottom of a swimming pool or spa to conduct water to a recirculating pump.
Added by Acts 1993, 73rd Leg., ch. 356, Sec. 1, eff. Jan. 1, 1994.
Amended by:
Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 17.001, eff. September 1, 2005.
Acts 2007, 80th Leg., R.S., Ch. 448 (H.B. 271), Sec. 1, eff. January 1, 2008.
Acts 2007, 80th Leg., R.S., Ch. 1051 (H.B. 2118), Sec. 11, eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 1256 (H.B. 2819), Sec. 22, eff. September 1, 2007.
Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 20.001, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 1178 (H.B. 3502), Sec. 1, eff. January 1, 2010.
Acts 2011, 82nd Leg., R.S., Ch. 578 (H.B. 3389), Sec. 1, eff. September 1, 2011.
Acts 2011, 82nd Leg., R.S., Ch. 621 (S.B. 710), Sec. 1, eff. September 1, 2011.
Acts 2011, 82nd Leg., R.S., Ch. 1311 (H.B. 3391), Sec. 5, eff. September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 695 (H.B. 2781), Sec. 6, eff. September 1, 2013.
Acts 2015, 84th Leg., R.S., Ch. 524 (H.B. 1221), Sec. 1, eff. January 1, 2016.
Acts 2017, 85th Leg., R.S., Ch. 35 (H.B. 890), Sec. 2, eff. September 1, 2017.
Acts 2019, 86th Leg., R.S., Ch. 1307 (H.B. 3815), Sec. 1, eff. September 1, 2019.
Acts 2019, 86th Leg., R.S., Ch. 1337 (S.B. 339), Sec. 1, eff. September 1, 2019.
Acts 2023, 88th Leg., R.S., Ch. 390 (H.B. 697), Sec. 1, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scA/s5.009">
<num value="5.009">Sec. 5.009.</num>
<heading>DUTIES OF LIFE TENANT</heading>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.009/a">
<num value="a">(a)</num>
<content>Subject to Subsection (b), if the life tenant of a legal life estate is given the power to sell and reinvest any life tenancy property, the life tenant is subject, with respect to the sale and investment of the property, to all of the fiduciary duties of a trustee imposed by the Texas Trust Code (Subtitle B, Title 9, Property Code) or the common law of this state.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.009/b">
<num value="b">(b)</num>
<content>A life tenant may retain, as life tenancy property, any real property originally conveyed to the life tenant without being subject to the fiduciary duties of a trustee; however, the life tenant is subject to the common law duties of a life tenant.</content>
</subsection>
<sourceCredit>Acts 1993, 73rd Leg., ch. 846, Sec. 34, eff. Sept. 1, 1993. Renumbered from Property Code Sec. 5.008 by Acts 1995, 74th Leg., ch. 76, Sec. 17.01(42), eff. Sept. 1, 1995.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scA/s5.010">
<num value="5.010">Sec. 5.010.</num>
<heading>NOTICE OF ADDITIONAL TAX LIABILITY</heading>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.010/a">
<num value="a">(a)</num>
<content>A person who is the owner of an interest in vacant land and who contracts for the transfer of that interest shall include in the contract the following bold-faced notice:</content>
</subsection>
<sourceCredit>NOTICE REGARDING POSSIBLE LIABILITY FOR ADDITIONAL TAXES
If for the current ad valorem tax year the taxable value of the land that is the subject of this contract is determined by a special appraisal method that allows for appraisal of the land at less than its market value, the person to whom the land is transferred may not be allowed to qualify the land for that special appraisal in a subsequent tax year and the land may then be appraised at its full market value. In addition, the transfer of the land or a subsequent change in the use of the land may result in the imposition of an additional tax plus interest as a penalty for the transfer or the change in the use of the land. The taxable value of the land and the applicable method of appraisal for the current tax year is public information and may be obtained from the tax appraisal district established for the county in which the land is located.
(b) This section does not apply to a contract for a transfer:
(1) under a court order or foreclosure sale;
(2) by a trustee in bankruptcy;
(3) to a mortgagee by a mortgagor or successor in interest or to a beneficiary of a deed of trust by a trustor or successor in interest;
(4) by a mortgagee or a beneficiary under a deed of trust who has acquired the land at a sale conducted under a power of sale under a deed of trust or a sale under a court-ordered foreclosure or has acquired the land by a deed in lieu of foreclosure;
(5) by a fiduciary in the course of the administration of a decedent's estate, guardianship, conservatorship, or trust;
(6) of only a mineral interest, leasehold interest, or security interest; or
(7) to or from a governmental entity.
(c) The notice described by Subsection (a) is not required to be included in a contract for transfer of an interest in land if every transferee under the contract is:
(1) a person who is a co-owner with an owner described by Subsection (a) of an undivided interest in the land; or
(2) a spouse or a person in the lineal line of consanguinity of an owner described by Subsection (a).
(d) The notice described by Subsection (a) is not required to be given if in a separate paragraph of the contract the contract expressly provides for the payment of any additional ad valorem taxes and interest that become due as a penalty because of:
(1) the transfer of the land; or
(2) a subsequent change in the use of the land.
(e) If the owner fails to include in the contract the notice described by Subsection (a), the person to whom the land is transferred is entitled to recover from that owner an amount equal to the amount of any additional taxes and interest that the person is required to pay as a penalty because of:
(1) the transfer of the land; or
(2) a subsequent change in the use of the land that occurs before the fifth anniversary of the date of the transfer.
Added by Acts 1997, 75th Leg., ch. 174, Sec. 1, eff. Jan. 1, 1998.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scA/s5.011">
<num value="5.011">Sec. 5.011.</num>
<heading>SELLER'S DISCLOSURE REGARDING POTENTIAL ANNEXATION</heading>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.011/a">
<num value="a">(a)</num>
<content>A person who sells an interest in real property in this state shall give to the purchaser of the property a written notice that reads substantially similar to the following:</content>
</subsection>
<sourceCredit>NOTICE REGARDING POSSIBLE ANNEXATION
If the property that is the subject of this contract is located outside the limits of a municipality, the property may now or later be included in the extraterritorial jurisdiction of a municipality and may now or later be subject to annexation by the municipality. Each municipality maintains a map that depicts its boundaries and extraterritorial jurisdiction. To determine if the property is located within a municipality's extraterritorial jurisdiction or is likely to be located within a municipality's extraterritorial jurisdiction, contact all municipalities located in the general proximity of the property for further information.
(b) The seller shall deliver the notice to the purchaser before the date the executory contract binds the purchaser to purchase the property. The notice may be given separately, as part of the contract during negotiations, or as part of any other notice the seller delivers to the purchaser.
(c) This section does not apply to a transfer:
(1) under a court order or foreclosure sale;
(2) by a trustee in bankruptcy;
(3) to a mortgagee by a mortgagor or successor in interest or to a beneficiary of a deed of trust by a trustor or successor in interest;
(4) by a mortgagee or a beneficiary under a deed of trust who has acquired the land at a sale conducted under a power of sale under a deed of trust or a sale under a court-ordered foreclosure or has acquired the land by a deed in lieu of foreclosure;
(5) by a fiduciary in the course of the administration of a decedent's estate, guardianship, conservatorship, or trust;
(6) from one co-owner to another co-owner of an undivided interest in the real property;
(7) to a spouse or a person in the lineal line of consanguinity of the seller;
(8) to or from a governmental entity;
(9) of only a groundwater right, surface water right, mineral interest, leasehold interest, or security interest; or
(10) of real property that is located wholly within a municipality's corporate boundaries.
(d) If the notice is delivered as provided by this section, the seller has no duty to provide additional information regarding the possible annexation of the property by a municipality.
(e) If an executory contract is entered into without the seller providing the notice required by this section, the purchaser may terminate the contract for any reason within the earlier of:
(1) seven days after the date the purchaser receives the notice; or
(2) the date the transfer occurs.
Added by Acts 1999, 76th Leg., ch. 529, Sec. 1, eff. Jan. 1, 2000.
Amended by:
Acts 2025, 89th Leg., R.S., Ch. 162 (S.B. 2550), Sec. 3, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scA/s5.012">
<num value="5.012">Sec. 5.012.</num>
<heading>NOTICE OF OBLIGATIONS RELATED TO MEMBERSHIP IN PROPERTY OWNERS' ASSOCIATION</heading>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.012/a">
<num value="a">(a)</num>
<content>A seller of residential real property that is subject to membership in a property owners' association and that comprises not more than one dwelling unit located in this state shall give to the purchaser of the property a written notice that reads substantially similar to the following:</content>
<continuation>NOTICE OF MEMBERSHIP IN PROPERTY OWNERS' ASSOCIATION CONCERNING THE PROPERTY AT (street address) (name of residential community)</continuation>
<continuation>As a purchaser of property in the residential community in which this property is located, you are obligated to be a member of a property owners' association. Restrictive covenants governing the use and occupancy of the property and all dedicatory instruments governing the establishment, maintenance, or operation of this residential community have been or will be recorded in the Real Property Records of the county in which the property is located. Copies of the restrictive covenants and dedicatory instruments may be obtained from the county clerk.</continuation>
<continuation>You are obligated to pay assessments to the property owners' association. The amount of the assessments is subject to change. Your failure to pay the assessments could result in enforcement of the association's lien on and the foreclosure of your property.</continuation>
<continuation>Section 207.003, Property Code, entitles an owner to receive copies of any document that governs the establishment, maintenance, or operation of a subdivision, including, but not limited to, restrictions, bylaws, rules and regulations, and a resale certificate from a property owners' association. A resale certificate contains information including, but not limited to, statements specifying the amount and frequency of regular assessments and the style and cause number of lawsuits to which the property owners' association is a party, other than lawsuits relating to unpaid ad valorem taxes of an individual member of the association. These documents must be made available to you by the property owners' association or the association's agent on your request.</continuation>
<continuation>Signature of Purchaser</continuation>
<continuation>(a-1) The second paragraph of the notice prescribed by Subsection (a) must be in bold print and underlined.</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.012/b">
<num value="b">(b)</num>
<content>The seller shall deliver the notice to the purchaser before the date the executory contract binds the purchaser to purchase the property. The notice may be given separately, as part of the contract during negotiations, or as part of any other notice the seller delivers to the purchaser. If the notice is included as part of the executory contract or another notice, the title of the notice prescribed by this section, the references to the street address and date in the notice, and the purchaser's signature on the notice may be omitted.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.012/c">
<num value="c">(c)</num>
<chapeau>This section does not apply to a transfer:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.012/1">
<num value="1">(1)</num>
<content>under a court order or foreclosure sale;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.012/2">
<num value="2">(2)</num>
<content>by a trustee in bankruptcy;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.012/3">
<num value="3">(3)</num>
<content>to a mortgagee by a mortgagor or successor in interest or to a beneficiary of a deed of trust by a trustor or successor in interest;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.012/4">
<num value="4">(4)</num>
<content>by a mortgagee or a beneficiary under a deed of trust who has acquired the land at a sale conducted under a power of sale under a deed of trust or a sale under a court-ordered foreclosure or has acquired the land by a deed in lieu of foreclosure;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.012/5">
<num value="5">(5)</num>
<content>by a fiduciary in the course of the administration of a decedent's estate, guardianship, conservatorship, or trust;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.012/6">
<num value="6">(6)</num>
<content>from one co-owner to another co-owner of an undivided interest in the real property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.012/7">
<num value="7">(7)</num>
<content>to a spouse or a person in the lineal line of consanguinity of the seller;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.012/8">
<num value="8">(8)</num>
<content>to or from a governmental entity;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.012/9">
<num value="9">(9)</num>
<content>of only a mineral interest, leasehold interest, or security interest; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.012/10">
<num value="10">(10)</num>
<content>of a real property interest in a condominium.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.012/d">
<num value="d">(d)</num>
<chapeau>If an executory contract is entered into without the seller providing the notice required by this section, the purchaser may terminate the contract for any reason within the earlier of:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.012/1">
<num value="1">(1)</num>
<content>seven days after the date the purchaser receives the notice; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.012/2">
<num value="2">(2)</num>
<content>the date the transfer occurs as provided by the executory contract.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.012/e">
<num value="e">(e)</num>
<content>The purchaser's right to terminate the executory contract under Subsection (d) is the purchaser's exclusive remedy for the seller's failure to provide the notice required by this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.012/f">
<num value="f">(f)</num>
<content>On the purchaser's request for a resale certificate from the property owners' association or the association's agent, the association or its agent shall promptly deliver a copy of the most recent resale certificate issued for the property under Chapter 207 so long as the resale certificate was prepared not earlier than the 60th day before the date the resale certificate is delivered to the purchaser and reflects any special assessments approved before and due after the resale certificate is delivered. If a resale certificate that meets the requirements of this subsection has not been issued for the property, the seller shall request the association or its agent to issue a resale certificate under Chapter 207, and the association or its agent shall promptly prepare and deliver a copy of the resale certificate to the purchaser.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.012/g">
<num value="g">(g)</num>
<content>The purchaser shall pay the fee to the property owners' association or its agent for issuing the resale certificate unless otherwise agreed by the purchaser and seller of the property. The property owners' association may require payment before beginning the process of providing a resale certificate requested under Chapter 207 but may not process a payment for a resale certificate until the certificate is available for delivery. The association may not charge a fee if the certificate is not provided in the time prescribed by Section 207.003(a).</content>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1420, Sec. 1, eff. Jan. 1, 2000.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1142 (H.B. 1821), Sec. 1, eff. January 1, 2012.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scA/s5.013">
<num value="5.013">Sec. 5.013.</num>
<heading>SELLER'S DISCLOSURE OF LOCATION OF CONDITIONS UNDER SURFACE OF UNIMPROVED REAL PROPERTY</heading>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.013/a">
<num value="a">(a)</num>
<content>A seller of unimproved real property to be used for residential purposes shall provide to the purchaser of the property a written notice disclosing the location of a transportation pipeline, including a pipeline for the transportation of natural gas, natural gas liquids, synthetic gas, liquefied petroleum gas, petroleum or a petroleum product, or a hazardous substance.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.013/b">
<num value="b">(b)</num>
<content>The notice must state the information to the best of the seller's belief and knowledge as of the date the notice is completed and signed by the seller. If the information required to be disclosed is not known to the seller, the seller shall indicate that fact in the notice.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.013/c">
<num value="c">(c)</num>
<content>The notice must be delivered by the seller on or before the effective date of an executory contract binding the purchaser to purchase the property. If a contract is entered without the seller providing the notice as required by this section, the purchaser may terminate the contract for any reason not later than the seventh day after the effective date of the contract.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.013/d">
<num value="d">(d)</num>
<content>This section applies to any seller of unimproved real property, including a seller who is the developer of the property and who sells the property to others for resale.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.013/e">
<num value="e">(e)</num>
<content>In this section, "hazardous substance" and "hazardous waste" have the meanings assigned by Section 361.003, Health and Safety Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.013/f">
<num value="f">(f)</num>
<chapeau>A seller is not required to give the notice if:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.013/1">
<num value="1">(1)</num>
<content>the seller is obligated under an earnest money contract to furnish a title insurance commitment to the buyer prior to closing; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.013/2">
<num value="2">(2)</num>
<content>the buyer is entitled to terminate the contract if the buyer's objections to title as permitted by the contract are not cured by the seller prior to closing.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1239, Sec. 1, eff. Sept. 1, 1997. Renumbered from Property Code Sec. 5.010 by Acts 2001, 77th Leg., ch. 1420, Sec. 21.001(95), eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scA/s5.014">
<num value="5.014">Sec. 5.014.</num>
<heading>NOTICE OF OBLIGATIONS RELATED TO PUBLIC IMPROVEMENT DISTRICT</heading>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.014/a">
<num value="a">(a)</num>
<content>A person who proposes to sell or otherwise convey real property that is located in a public improvement district established under Subchapter A, Chapter 372, Local Government Code, or Chapter 382, Local Government Code, shall first give to the purchaser of the property the written notice prescribed by Subsection (a-1) or (a-2), as applicable.</content>
<continuation>(a-1) Except for the notice prescribed by Subsection (a-2), the notice required by Subsection (a) shall be executed by the seller and must, except as provided by Subsection (b), read as follows:</continuation>
</subsection>
<sourceCredit>NOTICE OF OBLIGATION TO PAY IMPROVEMENT DISTRICT ASSESSMENT TO (insert name of municipality or county levying assessment), TEXAS
CONCERNING THE FOLLOWING PROPERTY
(insert property address)
As the purchaser of the real property described above, you are obligated to pay assessments to (insert name of municipality or county, as applicable), Texas, for the costs of a portion of a public improvement or services project (the "Authorized Improvements") undertaken for the benefit of the property within (insert name of public improvement district) (the "District") created under (insert Subchapter A, Chapter 372, Local Government Code, or Chapter 382, Local Government Code, as applicable).
AN ASSESSMENT HAS BEEN LEVIED AGAINST YOUR PROPERTY FOR THE AUTHORIZED IMPROVEMENTS, WHICH MAY BE PAID IN FULL AT ANY TIME. IF THE ASSESSMENT IS NOT PAID IN FULL, IT WILL BE DUE AND PAYABLE IN ANNUAL INSTALLMENTS THAT WILL VARY FROM YEAR TO YEAR DEPENDING ON THE AMOUNT OF INTEREST PAID, COLLECTION COSTS, ADMINISTRATIVE COSTS, AND DELINQUENCY COSTS.
The exact amount of the assessment may be obtained from (insert name of municipality or county, as applicable). The exact amount of each annual installment will be approved each year by (insert name of city council or county commissioners court, as applicable) in the annual service plan update for the district. More information about the assessments, including the amounts and due dates, may be obtained from (insert name of municipality or county, as applicable).
Your failure to pay any assessment or any annual installment may result in penalties and interest being added to what you owe or in a lien on and the foreclosure of your property.
The undersigned purchaser acknowledges receipt of this notice before the effective date of a binding contract for the purchase of the real property at the address described above.
Date: __________________ ________________________________
Signature of Purchaser
(a-2) For a district described by Section 372.0035, Local Government Code, the notice required by Subsection (a) shall be executed by the seller and must, except as provided by Subsection (b), read as follows:
NOTICE OF OBLIGATION TO PAY IMPROVEMENT DISTRICT ASSESSMENT TO (insert name of municipality levying assessment), TEXAS
CONCERNING THE FOLLOWING HOTEL PROPERTY
(insert property address)
As the purchaser of the real property described above, you are obligated to pay assessments to (insert name of municipality), Texas, for the costs of a portion of a public improvement or services project (the "Authorized Services") undertaken for the benefit of the property within (insert name of public improvement district) (the "District") created under Subchapter A, Chapter 372, Local Government Code.
AN ASSESSMENT HAS BEEN LEVIED AGAINST YOUR PROPERTY FOR THE AUTHORIZED SERVICES, WHICH MUST BE PAID IN FULL WITH EVERY PAYMENT BY THE HOTEL OF LOCAL HOTEL OCCUPANCY TAX REMITTANCES TO THE MUNICIPALITY. YOUR FAILURE TO PAY THE ASSESSMENT MAY RESULT IN PENALTIES AND INTEREST BEING ADDED TO WHAT YOU OWE, AND MAY INCLUDE THE PURSUIT OF ANY OTHER REMEDY THAT IS AUTHORIZED UNDER SECTION 372.0035(d), LOCAL GOVERNMENT CODE.
Information about the calculation of the assessment may be obtained from (insert name of the municipality). The exact assessment rate will be approved each year by (insert name of city council) in the annual service plan update for the district. More information about the assessments, including the assessment rate and due dates, may be obtained from (insert name of municipality).
The undersigned purchaser acknowledges receipt of this notice before the effective date of a binding contract for the purchase of the real property at the address described above.
Date: __________________ ________________________________
Signature of Purchaser
(b) The seller or the municipality or county that created the public improvement district may provide additional information regarding the district in the notice prescribed by Subsection (a-1) or (a-2), including whether an assessment has been levied, the amount of the assessment, and the payment schedule for assessments.
(c) This section does not apply to a transfer:
(1) under a court order or foreclosure sale;
(2) by a trustee in bankruptcy;
(3) to a mortgagee by a mortgagor or successor in interest or to a beneficiary of a deed of trust by a trustor or successor in interest;
(4) by a mortgagee or a beneficiary under a deed of trust who has acquired the land at a sale conducted under a power of sale under a deed of trust or a sale under a court-ordered foreclosure or has acquired the land by a deed in lieu of foreclosure;
(5) by a fiduciary in the course of the administration of a decedent's estate, guardianship, conservatorship, or trust;
(6) from one co-owner to another co-owner of an undivided interest in the real property;
(7) to a spouse or a person in the lineal line of consanguinity of the seller;
(8) to or from a governmental entity; or
(9) of only a groundwater right, surface water right, mineral interest, leasehold interest, or security interest.
(d) For the purposes of this section, a contract for the purchase and sale of real property having a performance period of less than six months is considered a sale requiring notice.
Added by Acts 2005, 79th Leg., Ch. 1085 (H.B. 1919), Sec. 1, eff. January 1, 2006.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 20.002, eff. September 1, 2009.
Acts 2021, 87th Leg., R.S., Ch. 253 (H.B. 1543), Sec. 3, eff. September 1, 2021.
Acts 2025, 89th Leg., R.S., Ch. 162 (S.B. 2550), Sec. 4, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scA/s5.0141">
<num value="5.0141">Sec. 5.0141.</num>
<heading>NOTICE REQUIRED BEFORE CONTRACT EXECUTION</heading>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.0141/a">
<num value="a">(a)</num>
<content>The notice required by Section 5.014 shall be given to the prospective purchaser before the execution of a binding contract of purchase and sale, either separately or as an addendum or paragraph of a purchase contract.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.0141/b">
<num value="b">(b)</num>
<content>In the event a contract of purchase and sale is entered into without the seller providing the notice, the purchaser is entitled to terminate the contract for any reason, not later than the seventh day after the date the purchaser receives the notice. A purchaser may terminate the contract under this subsection only if the municipality or county filed a copy of the service plan with the county clerk in accordance with Section 372.013, Local Government Code, before the date the contract was entered into.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.0141/c">
<num value="c">(c)</num>
<content>If, however, the seller furnishes the notice at or before closing the purchase and sale contract and the purchaser elects to close even though the notice was not timely furnished before execution of the contract, it shall be conclusively presumed that the purchaser has waived all rights to terminate the contract under Subsection (b) or recover damages or other remedies or rights under Section 5.0145.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.0141/d">
<num value="d">(d)</num>
<chapeau>Notwithstanding any provision of this section, Section 5.014, 5.0142, 5.0143, 5.0144, or 5.0145, all sellers, title companies, real estate brokers, and examining attorneys, and any agent, representative, or person acting on their behalf, are not liable for damages under Section 5.0145, or for any other damages to any person, for:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.0141/1">
<num value="1">(1)</num>
<content>failing to provide the notice to a purchaser before execution of a binding contract of purchase and sale or at or before the closing of the purchase and sale contract when the municipality or county has not filed the service plan as required by Section 372.013, Local Government Code; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.0141/2">
<num value="2">(2)</num>
<content>unintentionally providing a notice that is not the correct notice under the circumstances before execution of a binding contract of purchase and sale, or at or before the closing of the purchase and sale contract.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 253 (H.B. 1543), Sec. 4, eff. September 1, 2021.
Amended by:
Acts 2025, 89th Leg., R.S., Ch. 408 (H.B. 2468), Sec. 1, eff. June 20, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scA/s5.0142">
<num value="5.0142">Sec. 5.0142.</num>
<heading>PURCHASER SIGNATURE REQUIRED</heading>
<content>The purchaser shall sign the notice required by Section 5.014 or the purchase contract including the notice to evidence the receipt of notice.</content>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 253 (H.B. 1543), Sec. 4, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scA/s5.0143">
<num value="5.0143">Sec. 5.0143.</num>
<heading>RECORDING OF NOTICE AT CLOSING</heading>
<content>At the closing of purchase and sale, a separate copy of the notice required by Section 5.014 with current information shall be executed by the seller and purchaser, acknowledged, and recorded in the deed records of the county in which the property is located.</content>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 253 (H.B. 1543), Sec. 4, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scA/s5.0144">
<num value="5.0144">Sec. 5.0144.</num>
<heading>RELIANCE ON FILED SERVICE PLAN</heading>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.0144/a">
<num value="a">(a)</num>
<content>For the purposes of the notice required by Section 5.014, all sellers, title companies, real estate brokers, and examining attorneys, and any agent, representative, or person acting on their behalf, are entitled to rely on the accuracy of the service plan as last filed by each municipality or county under Section 372.013, Local Government Code, in completing the notice form to be executed by the seller and purchaser at the closing of purchase and sale.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.0144/b">
<num value="b">(b)</num>
<content>Any information taken from the service plan as last filed by the municipality or county and the information contained in or shown on the notice form contained in the service plan under Section 372.013, Local Government Code, not including information provided as to the assessments or annual installment amounts as authorized by Section 5.014(b), shall be, for purposes of the notice required by Section 5.014, conclusively presumed as a matter of law to be correct.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.0144/c">
<num value="c">(c)</num>
<content>All subsequent sellers, purchasers, title insurance companies, real estate brokers, examining attorneys, and lienholders are entitled to rely on the service plan filed by the municipality or county, including the notice form contained in the service plan, under Section 372.013, Local Government Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.0144/d">
<num value="d">(d)</num>
<chapeau>If the notice required by Section 5.014 is given at closing as provided by Section 5.0141(c), a purchaser, or the purchaser's heirs, successors, or assigns, are not entitled to maintain an action for damages against a seller, title insurance company, real estate broker, or lienholder, or any agent, representative, or person acting on their behalf, because the seller:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.0144/1">
<num value="1">(1)</num>
<content>used the notice form included in the service plan filed by the municipality or county under Section 372.013, Local Government Code; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.0144/2">
<num value="2">(2)</num>
<content>relied on the filed legal description of the public improvement district in determining whether the property is located in the district.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.0144/e">
<num value="e">(e)</num>
<content>No action may be maintained against any title company for failure to disclose the inclusion of the property in a public improvement district when the municipality or county has not filed the service plan under Section 372.013, Local Government Code, with the clerk of each county in which the district is located.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.0144/f">
<num value="f">(f)</num>
<chapeau>All sellers, title insurance companies, examining attorneys, vendors of property and tax information, real estate brokers, and lienholders, and any agent, representative, or person acting on their behalf, are entitled to rely on the accuracy of:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.0144/1">
<num value="1">(1)</num>
<content>the service plan last filed by the municipality or county or the information in the notice form filed by the district under Section 372.013, Local Government Code; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.0144/2">
<num value="2">(2)</num>
<content>for the purposes of the notice required by Section 5.014, the information in the service plan filed by the municipality or county in effect as of January 1 of each year for the period January 1 through December 31 of such calendar year.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 253 (H.B. 1543), Sec. 4, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scA/s5.0145">
<num value="5.0145">Sec. 5.0145.</num>
<heading>SUITS FOR DAMAGES</heading>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.0145/a">
<num value="a">(a)</num>
<content>If any sale or conveyance of real property within a public improvement district is not made in compliance with Section 5.014, 5.0141, 5.0142, or 5.0143, the purchaser may institute a suit for damages under the provisions of Subsection (b) or (e).</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.0145/b">
<num value="b">(b)</num>
<content>A purchaser of real property whose sale or conveyance is subject to the notice requirement under Section 5.014, if the sale or conveyance of the property is not made in compliance with that section or Section 5.0141, 5.0142, or 5.0143, may institute a suit for damages in the amount of all costs relative to the purchase of the property at the time of purchase, plus interest and reasonable attorney's fees.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.0145/c">
<num value="c">(c)</num>
<content>The suit for damages under Subsection (b) may be instituted jointly or severally against the person, firm, corporation, partnership, organization, business trust, estate, trust, association, or other legal entity that sold or conveyed the property to the purchaser.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.0145/d">
<num value="d">(d)</num>
<content>Following the recovery of damages under Subsection (b), the amount of the damages shall first be paid to satisfy all unpaid obligations on each outstanding lien on the property and the remainder of the damage amount shall be paid to the purchaser. On payment of all damages respectively to the lienholders and purchaser, the purchaser shall reconvey the property to the seller.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.0145/e">
<num value="e">(e)</num>
<content>A purchaser of real property whose sale or conveyance is subject to the notice requirement under Section 5.014, if the sale or conveyance of the property is not made in compliance with that section or Section 5.0141, 5.0142, or 5.0143, may institute a suit for damages in an amount not to exceed $5,000, plus reasonable attorney's fees.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.0145/f">
<num value="f">(f)</num>
<content>A purchaser is not entitled to recover damages under both Subsections (b) and (e), and entry of a final decision awarding damages to the purchaser under either Subsection (b) or (e) shall preclude the purchaser from recovering damages under the other subsection.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.0145/g">
<num value="g">(g)</num>
<content>The relief provided under Subsections (b) and (e) shall be the exclusive remedies for a purchaser aggrieved by the seller's failure to comply with the provisions of Section 5.014, 5.0141, 5.0142, or 5.0143.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.0145/h">
<num value="h">(h)</num>
<content>An action for damages does not apply to, affect, alter, or impair the validity of any existing vendor's lien, mechanic's lien, or deed of trust lien on the property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.0145/i">
<num value="i">(i)</num>
<chapeau>A suit for damages under this section must be brought not later than the earlier of:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.0145/1">
<num value="1">(1)</num>
<content>the 90th day after the date the purchaser receives the first public improvement district annual assessment installment or tax notice; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.0145/2">
<num value="2">(2)</num>
<content>the fourth anniversary of the date the property is sold or conveyed to the purchaser.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.0145/j">
<num value="j">(j)</num>
<chapeau>Notwithstanding a provision of this section, a purchaser may not recover damages under this section if the purchaser:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.0145/1">
<num value="1">(1)</num>
<content>purchases an equity in real property and in conjunction with the purchase assumes any liens, whether purchase money or otherwise; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.0145/2">
<num value="2">(2)</num>
<content>does not require proof of title by abstract, title policy, or any other proof of title.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.0145/k">
<num value="k">(k)</num>
<content>A purchaser who purchases real property in a public improvement district and who then sells or conveys the property shall on closing of the subsequent sale or conveyance be conclusively considered to have waived any prior right to damages under this section.</content>
</subsection>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 253 (H.B. 1543), Sec. 4, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scA/s5.015">
<num value="5.015">Sec. 5.015.</num>
<heading>PROHIBITED FEES</heading>
<content>A person who has a right of first refusal in real property that is a condominium subject to Chapter 81 or Chapter 82 may not charge a fee for declining to exercise that right, such as a fee for providing written evidence of the declination.</content>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 825 (S.B. 810), Sec. 14, eff. September 1, 2005.
Renumbered from Property Code, Section 5.014 by Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 17.001(63), eff. September 1, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scA/s5.016">
<num value="5.016">Sec. 5.016.</num>
<heading>CONVEYANCE OF RESIDENTIAL PROPERTY ENCUMBERED BY LIEN</heading>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.016/a">
<num value="a">(a)</num>
<chapeau>A person may not convey an interest in or enter into a contract to convey an interest in residential real property that will be encumbered by a recorded lien at the time the interest is conveyed unless, on or before the seventh day before the earlier of the effective date of the conveyance or the execution of an executory contract binding the purchaser to purchase the property, an option contract, or other contract, the person provides the purchaser and each lienholder a separate written disclosure statement in at least 12-point type that:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.016/1">
<num value="1">(1)</num>
<content>identifies the property and includes the name, address, and phone number of each lienholder;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.016/2">
<num value="2">(2)</num>
<content>states the amount of the debt that is secured by each lien;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.016/3">
<num value="3">(3)</num>
<chapeau>specifies the terms of any contract or law under which the debt that is secured by the lien was incurred, including, as applicable:</chapeau>
<subparagraph identifier="/us/tx/pr/t2/c5/scA/s5.016/A">
<num value="A">(A)</num>
<content>the rate of interest;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scA/s5.016/B">
<num value="B">(B)</num>
<content>the periodic installments required to be paid; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scA/s5.016/C">
<num value="C">(C)</num>
<content>the account number;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.016/4">
<num value="4">(4)</num>
<content>indicates whether the lienholder has consented to the transfer of the property to the purchaser;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.016/5">
<num value="5">(5)</num>
<chapeau>specifies the details of any insurance policy relating to the property, including:</chapeau>
<subparagraph identifier="/us/tx/pr/t2/c5/scA/s5.016/A">
<num value="A">(A)</num>
<content>the name of the insurer and insured;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scA/s5.016/B">
<num value="B">(B)</num>
<content>the amount for which the property is insured; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scA/s5.016/C">
<num value="C">(C)</num>
<content>the property that is insured;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.016/6">
<num value="6">(6)</num>
<content>states the amount of any property taxes that are due on the property; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.016/7">
<num value="7">(7)</num>
<content>includes a statement at the top of the disclosure in a form substantially similar to the following:</content>
</paragraph>
</subsection>
<sourceCredit>WARNING: ONE OR MORE RECORDED LIENS HAVE BEEN FILED THAT MAKE A CLAIM AGAINST THIS PROPERTY AS LISTED BELOW. IF A LIEN IS NOT RELEASED AND THE PROPERTY IS CONVEYED WITHOUT THE CONSENT OF THE LIENHOLDER, IT IS POSSIBLE THE LIENHOLDER COULD DEMAND FULL PAYMENT OF THE OUTSTANDING BALANCE OF THE LIEN IMMEDIATELY. YOU MAY WISH TO CONTACT EACH LIENHOLDER FOR FURTHER INFORMATION AND DISCUSS THIS MATTER WITH AN ATTORNEY.
(b) A violation of this section does not invalidate a conveyance. Except as provided by Subsections (c) and (d), if a contract is entered into without the seller providing the notice required by this section, the purchaser may terminate the contract for any reason on or before the seventh day after the date the purchaser receives the notice in addition to other remedies provided by this section or other law.
(c) This section does not apply to a transfer:
(1) under a court order or foreclosure sale;
(2) by a trustee in bankruptcy;
(3) to a mortgagee by a mortgagor or successor in interest or to a beneficiary of a deed of trust by a trustor or successor in interest;
(4) by a mortgagee or a beneficiary under a deed of trust who has acquired the real property at a sale conducted under a power of sale under a deed of trust or a sale under a court-ordered foreclosure or has acquired the real property by a deed in lieu of foreclosure;
(5) by a fiduciary in the course of the administration of a decedent's estate, guardianship, conservatorship, or trust;
(6) from one co-owner to one or more other co-owners;
(7) to a spouse or to a person or persons in the lineal line of consanguinity of one or more of the transferors;
(8) between spouses resulting from a decree of dissolution of marriage or a decree of legal separation or from a property settlement agreement incidental to one of those decrees;
(9) to or from a governmental entity;
(10) where the purchaser obtains a title insurance policy insuring the transfer of title to the real property; or
(11) to a person who has purchased, conveyed, or entered into contracts to purchase or convey an interest in real property four or more times in the preceding 12 months.
(d) A violation of this section is not actionable if the person required to give notice reasonably believes and takes any necessary action to ensure that each lien for which notice was not provided will be released on or before the 30th day after the date on which title to the property is transferred.
Added by Acts 2007, 80th Leg., R.S., Ch. 1056 (H.B. 2207), Sec. 1, eff. January 1, 2008.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scA/s5.019">
<num value="5.019">Sec. 5.019.</num>
<heading>NOTICE OF WATER LEVEL FLUCTUATIONS</heading>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.019/a">
<num value="a">(a)</num>
<content>This section applies only to the sale of residential or commercial real property adjoining an impoundment of water, including a reservoir or lake, constructed and maintained under Chapter 11, Water Code, that has a storage capacity of at least 5,000 acre-feet at the impoundment's normal operating level.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.019/b">
<num value="b">(b)</num>
<content>A seller of real property shall give to the purchaser of the property a written notice in substantially the following form:</content>
</subsection>
<sourceCredit>NOTICE OF WATER LEVEL FLUCTUATIONS
The water level of the impoundment of water adjoining the property at ______________ (street address and city) or described as ______________ (legal description) fluctuates for various reasons, including as a result of:
(1) an entity lawfully exercising its right to use the water stored in the impoundment; or
(2) drought or flood conditions.
(c) The notice described by Subsection (b) shall be delivered by the seller to the purchaser on or before the effective date of an executory contract binding the purchaser to purchase the property.
(d) If a contract is entered into without the seller providing the notice within the period required by Subsection (c), the purchaser may terminate the contract for any reason within seven days after the date the purchaser receives:
(1) the notice described by Subsection (b) from the seller; or
(2) information described by the notice under Subsection (b) from any other person.
(e) After the date of the conveyance, the purchaser may bring an action for misrepresentation against the seller if the seller:
(1) failed to provide the notice before the date of the conveyance; and
(2) had actual knowledge that the water level described by Subsection (b) fluctuates for various reasons, including the reasons stated in Subsection (b).
Added by Acts 2015, 84th Leg., R.S., Ch. 926 (H.B. 1665), Sec. 1, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scA/s5.020">
<num value="5.020">Sec. 5.020.</num>
<heading>EASEMENTS RESTRICTING POSSESSION OF FIREARMS OR ALCOHOLIC BEVERAGES PROHIBITED</heading>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.020/a">
<num value="a">(a)</num>
<chapeau>In this section:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.020/1">
<num value="1">(1)</num>
<content>"Alcoholic beverage" has the meaning assigned by Section 1.04, Alcoholic Beverage Code.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.020/2">
<num value="2">(2)</num>
<content>"Firearm" has the meaning assigned by Section 46.01, Penal Code. The term includes any firearm parts, firearm accessories, and firearm ammunition.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.020/b">
<num value="b">(b)</num>
<content>This section does not apply to a right-of-way easement for a pipeline, electric transmission line, or other utility.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.020/c">
<num value="c">(c)</num>
<content>An instrument granting an access easement may not restrict or prohibit an easement holder or an easement holder's guest from possessing, carrying, or transporting a firearm or an alcoholic beverage over the servient estate while using the easement for the easement's purpose.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.020/d">
<num value="d">(d)</num>
<content>The owner of a servient estate may not enforce a restrictive covenant in an instrument granting an access easement over the servient estate that restricts or prohibits the easement holder or the easement holder's guest from possessing, carrying, or transporting a firearm or an alcoholic beverage over the servient estate while using the easement for the easement's purpose.</content>
</subsection>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 907 (H.B. 4346), Sec. 1, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scA/s5.0205">
<num value="5.0205">Sec. 5.0205.</num>
<heading>EQUITABLE INTEREST DISCLOSURE</heading>
<chapeau>Before entering into a contract to sell an option or assign an interest in a contract to purchase real property, a person must disclose in writing to:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.0205/1">
<num value="1">(1)</num>
<content>any potential buyer that the person is selling only an option or assigning an interest in a contract and that the person does not have legal title to the real property; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.0205/2">
<num value="2">(2)</num>
<content>the owner of the real property that the person intends to sell an option or assign an interest in a contract.</content>
</paragraph>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 974 (S.B. 2212), Sec. 4, eff. September 1, 2017.
Transferred, redesignated and amended from Property Code, Section 5.086 by Acts 2023, 88th Leg., R.S., Ch. 94 (S.B. 1577), Sec. 27, eff. January 1, 2024.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scA/s5.0206">
<num value="5.0206">Sec. 5.0206.</num>
<heading>OWNER'S AFFIDAVIT REGARDING PURPORTED CONVEYANCE OF TITLE OR INTEREST</heading>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.0206/a">
<num value="a">(a)</num>
<chapeau>An owner of real property may file for recording in the real property records of the county in which a document or instrument purporting to convey title to or an interest in the real property was recorded:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.0206/1">
<num value="1">(1)</num>
<content>an affidavit that substantially complies with Subsection (e); and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.0206/2">
<num value="2">(2)</num>
<content>a certificate of mailing that substantially complies with Subsection (f).</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.0206/b">
<num value="b">(b)</num>
<content>A property owner who files an affidavit under Subsection (a) shall send a copy of the filed affidavit and a letter notifying the grantor and grantee of the purported conveyance of the filing of the affidavit by registered or certified mail, return receipt requested, to the grantor and grantee's last known addresses.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.0206/c">
<num value="c">(c)</num>
<content>If an affidavit and certificate of mailing are filed and recorded under Subsection (a) and a controverting affidavit is not filed for recording in the time provided by Subsection (d), the property owner that filed the affidavit may file a petition for a district court ruling under Section 51.9035, Government Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.0206/d">
<num value="d">(d)</num>
<chapeau>Not later than the 120th day after the date a certificate of mailing was filed under Subsection (a), the grantor or grantee of the purported conveyance may file for recording a controverting affidavit in the real property records of the county in which the real property is located asserting that:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.0206/1">
<num value="1">(1)</num>
<content>the affidavit or certificate of mailing filed by the property owner under Subsection (a) is untrue; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scA/s5.0206/2">
<num value="2">(2)</num>
<content>another reason exists as to why the conveyance is valid.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scA/s5.0206/e">
<num value="e">(e)</num>
<content>An affidavit filed under Subsection (a) must be in substantially the following form:</content>
</subsection>
<sourceCredit>OWNER'S AFFIDAVIT REGARDING PURPORTED CONVEYANCE
Before me, the undersigned authority, on this day personally appeared ("Affiant(s)") (insert name of one or more affiants) who, being first duly sworn, upon oath states:
(1) My/our name is/are (insert name of Affiant(s)). I/we own the following described real property ("Property"):
(describe the real property)
(2) This affidavit is made for the purpose of establishing a presumption under Section 51.901(c)(4), Government Code, that the document or instrument purporting to convey title to or an interest in the Property recorded in __________ (refer to recording information of the conveyance) ("Purported Conveyance") is fraudulent and obtaining a district court's finding of fact and conclusion of law under Section 51.9035, Government Code, that the document or instrument does not convey title to or an interest in the Property.
(3) Affiant(s) have not conveyed title to or an interest in the Property to any grantee other than (list any interests granted).
Signed on this _____ day of __________, _____.
____________________
____________________
(Signature of Affiant(s))
State of __________
County of __________
SWORN TO AND SUBSCRIBED before me on the _________ day of __________, 20___.
My commission expires:
______________________
____________________________
Notary Public, State of Texas
Notary's printed name:
____________________________
(f) A certificate of mailing filed under Subsection (a) must be in substantially the following form:
CERTIFICATE OF MAILING OF OWNER'S AFFIDAVIT REGARDING PURPORTED CONVEYANCE
Before me, the undersigned authority, on this day personally appeared ("Affiant(s)") (insert name(s) of Affiant(s)) who, being first duly sworn, upon oath state(s):
(1) My name is/Our names are (insert name(s) of Affiant(s)).
(2) On the ____ day of __________, 20__, Affiant(s) caused an Owner's Affidavit Regarding Purported Conveyance to be recorded in (refer to affidavit recording information) ("Affidavit").
(3) On the ____ day of __________, 20__, Affiant(s) sent a letter and a copy of the Affidavit, notifying the grantor and grantee of the purported conveyance of the Affiant's ownership claim and the filing of the Affidavit, by registered or certified mail, return receipt requested, to the grantor and grantee's last known address.
(4) Attached to this certificate are:
(A) a true and correct copy of the letter described by Subdivision (3) of this certificate; and
(B) proof of mailing of the letter described by Subdivision (3) of this certificate.
Signed on the day of _________, 20 _____.
____________________
____________________
(Signature of Affiant(s))
State of __________
County of __________
SWORN TO AND SUBSCRIBED before me on the _________ day of __________, 20___.
My commission expires:
______________________
____________________________
Notary Public, State of Texas
Notary's printed name:
____________________________
Added by Acts 2025, 89th Leg., R.S., Ch. 321 (S.B. 1734), Sec. 3, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scA/s5.0207">
<num value="5.0207">Sec. 5.0207.</num>
<heading>EFFECT OF CERTAIN COURT FINDINGS ON PURPORTED CONVEYANCE OF TITLE OR INTEREST</heading>
<content>A bona fide purchaser or a mortgagee for value or a successor or assign of a bona fide purchaser or mortgagee for value may rely conclusively on a determination in a district court's finding of fact and conclusion of law recorded under Section 51.9035, Government Code, that a document or instrument does not convey title to or an interest in the real property described in the document or instrument.</content>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 321 (S.B. 1734), Sec. 3, eff. September 1, 2025.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t2/c5/scB">
<num value="B">SUBCHAPTER B.</num>
<heading>FORM AND CONSTRUCTION OF INSTRUMENTS</heading>
<section identifier="/us/tx/pr/t2/c5/scB/s5.021">
<num value="5.021">Sec. 5.021.</num>
<heading>INSTRUMENT OF CONVEYANCE</heading>
<content>A conveyance of an estate of inheritance, a freehold, or an estate for more than one year, in land and tenements, must be in writing and must be subscribed and delivered by the conveyor or by the conveyor's agent authorized in writing.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3481, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scB/s5.022">
<num value="5.022">Sec. 5.022.</num>
<heading>FORM</heading>
<subsection identifier="/us/tx/pr/t2/c5/scB/s5.022/a">
<num value="a">(a)</num>
<content>The following form or a form that is the same in substance conveys a fee simple estate in real property with a covenant of general warranty:</content>
</subsection>
<sourceCredit>"The State of Texas,
"County of ____________________.
"Know all men by these presents, That I, __________________, of the __________________ (give name of city, town, or county), in the state aforesaid, for and in consideration of __________________ dollars, to me in hand paid by __________________, have granted, sold, and conveyed, and by these presents do grant, sell, and convey unto the said __________________, of the __________________ (give name of city, town, or county), in the state of __________________, all that certain __________________ (describe the premises). To have and to hold the above described premises, together with all and singular the rights and appurtenances thereto in any wise belonging, unto the said __________________, his heirs or assigns forever. And I do hereby bind myself, my heirs, executors, and administrators to warrant and forever defend all and singular the said premises unto the said __________________, his heirs, and assigns, against every person whomsoever, lawfully claiming or to claim the same, or any part thereof.
"Witness my hand, this __________________ day of __________________, A.D. 19___.
"Signed and delivered in the presence of ____________________"
(b) A covenant of warranty is not required in a conveyance.
(c) The parties to a conveyance may insert any clause or use any form not in contravention of law.
Acts 1983, 68th Leg., p. 3481, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scB/s5.023">
<num value="5.023">Sec. 5.023.</num>
<heading>IMPLIED COVENANTS</heading>
<subsection identifier="/us/tx/pr/t2/c5/scB/s5.023/a">
<num value="a">(a)</num>
<chapeau>Unless the conveyance expressly provides otherwise, the use of "grant" or "convey" in a conveyance of an estate of inheritance or fee simple implies only that the grantor and the grantor's heirs covenant to the grantee and the grantee's heirs or assigns:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scB/s5.023/1">
<num value="1">(1)</num>
<content>that prior to the execution of the conveyance the grantor has not conveyed the estate or any interest in the estate to a person other than the grantee; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scB/s5.023/2">
<num value="2">(2)</num>
<content>that at the time of the execution of the conveyance the estate is free from encumbrances.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scB/s5.023/b">
<num value="b">(b)</num>
<content>An implied covenant under this section may be the basis for a lawsuit as if it had been expressed in the conveyance.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3482, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scB/s5.024">
<num value="5.024">Sec. 5.024.</num>
<heading>ENCUMBRANCES</heading>
<content>"Encumbrance" includes a tax, an assessment, and a lien on real property.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3482, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scB/s5.025">
<num value="5.025">Sec. 5.025.</num>
<heading>WOOD SHINGLE ROOF</heading>
<content>To the extent that a deed restriction applicable to a structure on residential property requires the use of a wood shingle roof, the restriction is void.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3482, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scB/s5.026">
<num value="5.026">Sec. 5.026.</num>
<heading>DISCRIMINATORY PROVISIONS</heading>
<subsection identifier="/us/tx/pr/t2/c5/scB/s5.026/a">
<num value="a">(a)</num>
<content>If a restriction that affects real property, or a provision in a deed that conveys real property or an interest in real property, whether express or incorporated by reference, prohibits the use by or the sale, lease, or transfer to a person because of race, color, religion, or national origin, the provision or restriction is void.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scB/s5.026/b">
<num value="b">(b)</num>
<content>A court shall dismiss a suit or part of a suit to enforce a provision that is void under this section.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3483, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scB/s5.0261">
<num value="5.0261">Sec. 5.0261.</num>
<heading>REMOVAL OF DISCRIMINATORY PROVISION FROM RECORDED CONVEYANCE INSTRUMENT</heading>
<subsection identifier="/us/tx/pr/t2/c5/scB/s5.0261/a">
<num value="a">(a)</num>
<content>In this section, "discriminatory provision" means a restriction or provision that is void under Section 5.026(a).</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scB/s5.0261/b">
<num value="b">(b)</num>
<content>A person who owns real property or an interest in real property the chain of title for which includes a recorded conveyance instrument containing a discriminatory provision, or another person with the permission of the owner, may request the removal of the discriminatory provision from the instrument by completing and filing, with the clerk of a district court in the county in whose real property records the instrument is recorded or of another court having jurisdiction over real property matters in the county, a motion, verified by affidavit by a completed form for ordinary certificate of acknowledgment of the same type described by Section 121.007, Civil Practice and Remedies Code, that contains, at a minimum, the information in the following suggested form:</content>
</subsection>
<sourceCredit>MISC. DOCKET NO. ______
Provision County, Texas
Motion for Judicial Review of Conveyance Instrument Alleged to Contain a Discriminatory Provision as Defined by Section 5.0261(a), Texas Property Code
Now Comes (name) and files this motion requesting a judicial determination of the status of a conveyance instrument that contains a discriminatory provision as defined by Section 5.0261(a), Texas Property Code, filed in the office of the Clerk of (county name) County, Texas, and in support of the motion would show the court as follows:
I.
(Name), movant herein, is the person who owns the real property or the interest in real property described in the conveyance instrument or has been given permission by that person to file this motion.
II.
On (date), in the exercise of the county clerk's official duties as County Clerk of (county name) County, Texas, the county clerk received and filed and recorded the conveyance instrument attached hereto and containing (number) pages. The instrument is recorded at _______ in the real property records of _______ County. The conveyance instrument contains a discriminatory provision as defined by Section 5.0261(a), Texas Property Code.
III.
Movant alleges that the conveyance instrument attached hereto contains a discriminatory provision as defined by Section 5.0261(a), Texas Property Code, and that the discriminatory provision should be removed.
IV.
Movant attests that assertions herein are true and correct.
V.
PRAYER
Movant requests the court to review the attached conveyance instrument and enter an order removing the discriminatory provision as defined by Section 5.0261(a), Texas Property Code, together with such other orders as the court deems appropriate.
Respectfully submitted,
_________________________
(Signature and typed name and address)
(c) The completed form for ordinary certificate of acknowledgment, of the same type described by Section 121.007, Civil Practice and Remedies Code, must be as follows:
AFFIDAVIT
THE STATE OF TEXAS
COUNTY OF ______________
BEFORE ME, the undersigned authority, personally appeared _____________, who, being by me duly sworn, deposed as follows:
"My name is _________________. I am over 21 years of age, of sound mind, with personal knowledge of the following facts, and fully competent to testify.
I further attest that the assertions contained in the accompanying motion are true and correct."
Further affiant sayeth not.
_____________________________
SUBSCRIBED and SWORN TO before
me, this _____ day of ________,
_____.
_____________________________
NOTARY PUBLIC, State of Texas
Notary's printed name:
_____________________________
My commission expires:
_____________________________
_____________________________
(d) A motion under this section may be ruled on by a court having jurisdiction over real property matters in the county where the subject conveyance instrument was filed. The court's finding may be made solely on a review of the conveyance instrument attached to the motion and without hearing any testimonial evidence. The court's review may be made ex parte without delay or notice of any kind. If the court does not rule on the motion on or before the 15th day after the date the motion is filed, the motion is deemed granted. An appellate court shall expedite review of a court's finding under this section.
(e) A court clerk may not collect a filing fee for filing a motion under this section.
(f) After reviewing the conveyance instrument attached to a motion filed under this section, the court shall enter an appropriate finding of fact and conclusion of law.
(g) The court's finding of fact and conclusion of law must be:
(1) transferred by the court clerk to the county clerk for recording and indexing not later than the 10th day after the date the finding of fact and conclusion of law is entered by the court or deemed granted under Subsection (d); and
(2) filed and indexed by the county clerk in the same class of records in which the subject conveyance instrument is filed.
(h) The county clerk may not collect a fee for filing a court's finding of fact and conclusion of law under this section.
(i) A suggested form of order appropriate to comply with Subsection (f) is as follows:
MISC. DOCKET NO. ______
with Discriminatory In and For ___________________
Provision County, Texas
Judicial Finding of Fact and Conclusion of Law Regarding Conveyance Instrument Alleged to Contain a Discriminatory Provision as Defined by Section 5.0261(a), Texas Property Code
On the (number) day of (month), (year), in the above entitled and numbered cause, this court reviewed a motion, verified by affidavit, of (name) and the conveyance instrument attached thereto. No testimony was taken from any party, nor was there any notice of the court's review, the court having made the determination that a decision could be made solely on review of the conveyance instrument under the authority vested in the court under Section 5.0261, Texas Property Code.
The court finds as follows (only an item checked and initialed is a valid court ruling):
_______ The conveyance instrument recorded at ______ in the real property records of ______ County CONTAINS a discriminatory provision as defined by Section 5.0261(a), Texas Property Code. The discriminatory provision as defined by Section 5.0261(a), Texas Property Code, is void and removed from the conveyance instrument identified herein.
_______ The conveyance instrument recorded at ______ in the real property records of ______ County and attached to the motion herein DOES NOT CONTAIN a discriminatory provision as defined by Section 5.0261(a), Texas Property Code.
This court expressly limits its finding of fact and conclusion of law to the review of a ministerial act. The county clerk shall file this finding of fact and conclusion of law in the same class of records in which the subject conveyance instrument is filed, and the court directs the county clerk to index it using the same names used to index the subject conveyance instrument.
SIGNED ON THIS THE ________ DAY OF ____________________.
_______________________________
JUDGE
________ (Court)
_____________ COUNTY, TEXAS
Added by Acts 2021, 87th Leg., R.S., Ch. 532 (S.B. 30), Sec. 2, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scB/s5.027">
<num value="5.027">Sec. 5.027.</num>
<heading>CORRECTION INSTRUMENTS: GENERALLY</heading>
<subsection identifier="/us/tx/pr/t2/c5/scB/s5.027/a">
<num value="a">(a)</num>
<content>A correction instrument that complies with Section 5.028 or 5.029 may correct an ambiguity or error in a recorded original instrument of conveyance to transfer real property or an interest in real property, including an ambiguity or error that relates to the description of or extent of the interest conveyed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scB/s5.027/b">
<num value="b">(b)</num>
<content>A correction instrument may not correct an ambiguity or error in a recorded original instrument of conveyance to transfer real property or an interest in real property not originally conveyed in the instrument of conveyance for purposes of a sale of real property under a power of sale under Chapter 51 unless the conveyance otherwise complies with all requirements of Chapter 51.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scB/s5.027/c">
<num value="c">(c)</num>
<content>A correction instrument is subject to Section 13.001.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 194 (S.B. 1496), Sec. 1, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scB/s5.028">
<num value="5.028">Sec. 5.028.</num>
<heading>CORRECTION INSTRUMENTS: NONMATERIAL CORRECTIONS</heading>
<subsection identifier="/us/tx/pr/t2/c5/scB/s5.028/a">
<num value="a">(a)</num>
<chapeau>A person who has personal knowledge of facts relevant to the correction of a recorded original instrument of conveyance may prepare or execute a correction instrument to make a nonmaterial change that results from a clerical error, including:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scB/s5.028/1">
<num value="1">(1)</num>
<content>a correction of an inaccurate or incorrect element in a legal description, such as a distance, angle, direction, bearing or chord, a reference to a plat or other plat information, a lot or block number, a unit, building designation, or section number, an appurtenant easement, a township name or number, a municipality, county, or state name, a range number or meridian, a certified survey map number, or a subdivision or condominium name; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scB/s5.028/2">
<num value="2">(2)</num>
<chapeau>an addition, correction, or clarification of:</chapeau>
<subparagraph identifier="/us/tx/pr/t2/c5/scB/s5.028/A">
<num value="A">(A)</num>
<content>a party's name, including the spelling of a name, a first or middle name or initial, a suffix, an alternate name by which a party is known, the identity of the trustee of a trust named as party, or a description of an entity as a corporation, company, or other type of organization;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scB/s5.028/B">
<num value="B">(B)</num>
<content>a party's marital status;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scB/s5.028/C">
<num value="C">(C)</num>
<content>the date on which the conveyance was executed;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scB/s5.028/D">
<num value="D">(D)</num>
<content>the recording data for an instrument referenced in the correction instrument; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scB/s5.028/E">
<num value="E">(E)</num>
<content>a fact relating to the acknowledgment or authentication.</content>
<continuation>(a-1) A person who has personal knowledge of facts relevant to the correction of a recorded original instrument of conveyance may prepare or execute a correction instrument to make a nonmaterial change that results from an inadvertent error, including the addition, correction, or clarification of:</continuation>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scB/s5.028/1">
<num value="1">(1)</num>
<content>a legal description prepared in connection with the preparation of the original instrument but inadvertently omitted from the original instrument; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scB/s5.028/2">
<num value="2">(2)</num>
<content>an omitted call in a metes and bounds legal description in the original instrument that completes the description of the property.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scB/s5.028/b">
<num value="b">(b)</num>
<content>A person who executes a correction instrument under this section may execute a correction instrument that provides an acknowledgment or authentication that is required and was not included in the recorded original instrument of conveyance.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scB/s5.028/c">
<num value="c">(c)</num>
<content>A person who executes a correction instrument under this section shall disclose in the instrument the basis for the person's personal knowledge of the facts relevant to the correction of the recorded original instrument of conveyance.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scB/s5.028/d">
<num value="d">(d)</num>
<chapeau>A person who executes a correction instrument under this section shall:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scB/s5.028/1">
<num value="1">(1)</num>
<content>record the instrument and evidence of notice as provided by Subdivision (2), if applicable, in each county in which the original instrument of conveyance being corrected is recorded; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scB/s5.028/2">
<num value="2">(2)</num>
<content>if the correction instrument is not signed by each party to the recorded original instrument, send a copy of the correction instrument and notice by first class mail, e-mail, or other reasonable means to each party to the original instrument of conveyance and, if applicable, a party's heirs, successors, or assigns.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 194 (S.B. 1496), Sec. 1, eff. September 1, 2011.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 158 (S.B. 887), Sec. 1, eff. September 1, 2013.
Acts 2023, 88th Leg., R.S., Ch. 345 (S.B. 801), Sec. 2, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scB/s5.029">
<num value="5.029">Sec. 5.029.</num>
<heading>CORRECTION INSTRUMENTS: MATERIAL CORRECTIONS</heading>
<subsection identifier="/us/tx/pr/t2/c5/scB/s5.029/a">
<num value="a">(a)</num>
<chapeau>In addition to nonmaterial corrections, including the corrections described by Section 5.028, the parties to the original transaction or the parties' heirs, successors, or assigns, as applicable may execute a correction instrument to make a material correction to the recorded original instrument of conveyance, including a correction to:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scB/s5.029/1">
<num value="1">(1)</num>
<chapeau>add:</chapeau>
<subparagraph identifier="/us/tx/pr/t2/c5/scB/s5.029/A">
<num value="A">(A)</num>
<content>a buyer's disclaimer of an interest in the real property that is the subject of the original instrument of conveyance;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scB/s5.029/B">
<num value="B">(B)</num>
<content>a mortgagee's consent or subordination to a recorded document executed by the mortgagee or an heir, successor, or assign of the mortgagee; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scB/s5.029/C">
<num value="C">(C)</num>
<content>land to a conveyance that correctly conveys other land;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scB/s5.029/2">
<num value="2">(2)</num>
<content>remove land from a conveyance that correctly conveys other land; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scB/s5.029/3">
<num value="3">(3)</num>
<content>accurately identify a lot or unit number or letter of property owned by the grantor that was inaccurately identified as another lot or unit number or letter of property owned by the grantor in the recorded original instrument of conveyance.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scB/s5.029/b">
<num value="b">(b)</num>
<chapeau>A correction instrument under this section must be:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scB/s5.029/1">
<num value="1">(1)</num>
<content>executed by each party to the recorded original instrument of conveyance the correction instrument is executed to correct or, if applicable, a party's heirs, successors, or assigns; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scB/s5.029/2">
<num value="2">(2)</num>
<content>recorded in each county in which the original instrument of conveyance that is being corrected is recorded.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 194 (S.B. 1496), Sec. 1, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scB/s5.030">
<num value="5.030">Sec. 5.030.</num>
<heading>CORRECTION INSTRUMENT: EFFECT</heading>
<subsection identifier="/us/tx/pr/t2/c5/scB/s5.030/a">
<num value="a">(a)</num>
<chapeau>A correction instrument that complies with Section 5.028 or 5.029 is:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scB/s5.030/1">
<num value="1">(1)</num>
<content>effective as of the effective date of the recorded original instrument of conveyance;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scB/s5.030/2">
<num value="2">(2)</num>
<content>prima facie evidence of the facts stated in the correction instrument;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scB/s5.030/3">
<num value="3">(3)</num>
<content>presumed to be true;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scB/s5.030/4">
<num value="4">(4)</num>
<content>subject to rebuttal; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scB/s5.030/5">
<num value="5">(5)</num>
<content>notice to a subsequent buyer of the facts stated in the correction instrument.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scB/s5.030/b">
<num value="b">(b)</num>
<content>A correction instrument replaces and is a substitute for the original instrument. Except as provided by Subsection (c), a bona fide purchaser of property that is subject to a correction instrument may rely on the instrument against any person making an adverse or inconsistent claim.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scB/s5.030/c">
<num value="c">(c)</num>
<content>A correction instrument is subject to the property interest of a creditor or a subsequent purchaser for valuable consideration without notice acquired on or after the date the original instrument was acknowledged, sworn to, or proved and filed for record as required by law and before the correction instrument has been acknowledged, sworn to, or proved and filed for record as required by law.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 194 (S.B. 1496), Sec. 1, eff. September 1, 2011.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 158 (S.B. 887), Sec. 2, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scB/s5.031">
<num value="5.031">Sec. 5.031.</num>
<heading>CORRECTION INSTRUMENTS RECORDED BEFORE SEPTEMBER 1, 2011</heading>
<content>A correction instrument recorded before September 1, 2011, that substantially complies with Section 5.028 or 5.029 and that purports to correct a recorded original instrument of conveyance is effective to the same extent as provided by Section 5.030 unless a court of competent jurisdiction renders a final judgment determining that the correction instrument does not substantially comply with Section 5.028 or 5.029.</content>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 194 (S.B. 1496), Sec. 1, eff. September 1, 2011.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t2/c5/scC">
<num value="C">SUBCHAPTER C.</num>
<heading>FUTURE ESTATES</heading>
<section identifier="/us/tx/pr/t2/c5/scC/s5.041">
<num value="5.041">Sec. 5.041.</num>
<heading>FUTURE ESTATES</heading>
<content>A person may make an inter vivos conveyance of an estate of freehold or inheritance that commences in the future, in the same manner as by a will.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3483, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scC/s5.042">
<num value="5.042">Sec. 5.042.</num>
<heading>ABOLITION OF COMMON-LAW RULES</heading>
<subsection identifier="/us/tx/pr/t2/c5/scC/s5.042/a">
<num value="a">(a)</num>
<content>The common-law rules known as the rule in Shelley's case, the rule forbidding a remainder to the grantor's heirs, the doctrine of worthier title, and the doctrine or rule prohibiting an existing lien upon part of a homestead from extending to another part of the homestead not charged with the debts secured by the existing lien upon part of the homestead do not apply in this state.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scC/s5.042/b">
<num value="b">(b)</num>
<content>A deed, will, or other conveyance of property in this state that limits an interest in the property to a particular person or to a class such as the heirs, heirs of the body, issue, or next of kin of the conveyor or of a person to whom a particular interest in the same property is limited is effective according to the intent of the conveyor.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scC/s5.042/c">
<num value="c">(c)</num>
<content>Status as an heir or next of kin of a conveyor or the failure of a conveyor to describe a person in a conveyance other than as a member of a class does not affect a person's right to take or share in an interest as a conveyee.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scC/s5.042/d">
<num value="d">(d)</num>
<content>Subject to the intention of a conveyor, which controls unless limited by law, the membership of a class described in this section and the participation of a member in a property interest conveyed to the class are determined under this state's laws of descent and distribution.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scC/s5.042/e">
<num value="e">(e)</num>
<content>This section does not apply to a conveyance taking effect before January 1, 1964.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3483, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1999, 76th Leg., ch. 1510, Sec. 5, eff. Sept. 1, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scC/s5.043">
<num value="5.043">Sec. 5.043.</num>
<heading>REFORMATION OF INTERESTS VIOLATING RULE AGAINST PERPETUITIES</heading>
<subsection identifier="/us/tx/pr/t2/c5/scC/s5.043/a">
<num value="a">(a)</num>
<content>Within the limits of the rule against perpetuities, a court shall reform or construe an interest in real or personal property that violates the rule to effect the ascertainable general intent of the creator of the interest. A court shall liberally construe and apply this provision to validate an interest to the fullest extent consistent with the creator's intent.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scC/s5.043/b">
<num value="b">(b)</num>
<content>The court may reform or construe an interest under Subsection (a) of this section according to the doctrine of cy pres by giving effect to the general intent and specific directives of the creator within the limits of the rule against perpetuities.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scC/s5.043/c">
<num value="c">(c)</num>
<content>If an instrument that violates the rule against perpetuities may be reformed or construed under this section, a court shall enforce the provisions of the instrument that do not violate the rule and shall reform or construe under this section a provision that violates or might violate the rule.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scC/s5.043/d">
<num value="d">(d)</num>
<content>This section applies to legal and equitable interests, including noncharitable gifts and trusts, conveyed by an inter vivos instrument or a will that takes effect on or after September 1, 1969, and this section applies to an appointment made on or after that date regardless of when the power was created.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3484, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1991, 72nd Leg., ch. 895, Sec. 16, eff. Sept. 1, 1991.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t2/c5/scD">
<num value="D">SUBCHAPTER D.</num>
<heading>EXECUTORY CONTRACT FOR CONVEYANCE</heading>
<section identifier="/us/tx/pr/t2/c5/scD/s5.061">
<num value="5.061">Sec. 5.061.</num>
<heading>DEFINITION</heading>
<chapeau>In this subchapter, "default" means the failure to:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.061/1">
<num value="1">(1)</num>
<content>make a timely payment; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.061/2">
<num value="2">(2)</num>
<content>comply with a term of an executory contract.</content>
</paragraph>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 994, Sec. 2, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 5.065 and amended by Act 2001, 77th Leg., ch. 693, Sec. 1, Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scD/s5.062">
<num value="5.062">Sec. 5.062.</num>
<heading>APPLICABILITY</heading>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.062/a">
<num value="a">(a)</num>
<chapeau>This subchapter applies only to a transaction involving an executory contract for conveyance of real property used or to be used as the purchaser's residence or as the residence of a person related to the purchaser within the second degree by consanguinity or affinity, as determined under Chapter 573, Government Code. For purposes of this subchapter, and only for the purposes of this subchapter:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.062/1">
<num value="1">(1)</num>
<content>a lot measuring one acre or less is presumed to be residential property; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.062/2">
<num value="2">(2)</num>
<content>an option to purchase real property that includes or is combined or executed concurrently with a residential lease agreement, together with the lease, is considered an executory contract for conveyance of real property.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.062/b">
<num value="b">(b)</num>
<chapeau>This subchapter does not apply to the following transactions under an executory contract:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.062/1">
<num value="1">(1)</num>
<content>the sale of state land; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.062/2">
<num value="2">(2)</num>
<chapeau>a sale of land by:</chapeau>
<subparagraph identifier="/us/tx/pr/t2/c5/scD/s5.062/A">
<num value="A">(A)</num>
<content>the Veterans' Land Board;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scD/s5.062/B">
<num value="B">(B)</num>
<content>this state or a political subdivision of this state; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scD/s5.062/C">
<num value="C">(C)</num>
<content>an instrumentality, public corporation, or other entity created to act on behalf of this state or a political subdivision of this state, including an entity created under Chapter 303, 392, or 394, Local Government Code.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.062/c">
<num value="c">(c)</num>
<content>This subchapter does not apply to an executory contract that provides for the delivery of a deed from the seller to the purchaser within 180 days of the date of the final execution of the executory contract.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.062/d">
<num value="d">(d)</num>
<chapeau>Section 5.066 and Sections 5.068-5.080 do not apply to a transaction involving an executory contract for conveyance if the purchaser of the property:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.062/1">
<num value="1">(1)</num>
<content>is related to the seller of the property within the second degree by consanguinity or affinity, as determined under Chapter 573, Government Code; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.062/2">
<num value="2">(2)</num>
<content>has waived the applicability of those sections in a written agreement.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.062/e">
<num value="e">(e)</num>
<content>Sections 5.066, 5.067, 5.071, 5.075, 5.079, 5.081, and 5.082 do not apply to an executory contract described by Subsection (a)(2).</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.062/f">
<num value="f">(f)</num>
<chapeau>Notwithstanding any other provision of this subchapter, only the following sections apply to an executory contract described by Subsection (a)(2) if the term of the contract is three years or less and the purchaser and seller, or the purchaser's or seller's assignee, agent, or affiliate, have not been parties to an executory contract to purchase the property covered by the executory contract for longer than three years:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.062/1">
<num value="1">(1)</num>
<content>Sections 5.063-5.065;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.062/2">
<num value="2">(2)</num>
<content>Section 5.073, except for Section 5.073(a)(2); and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.062/3">
<num value="3">(3)</num>
<content>Sections 5.083 and 5.085.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.062/g">
<num value="g">(g)</num>
<content>Except as provided by Subsection (b), if Subsection (f) conflicts with another provision of this subchapter, Subsection (f) prevails.</content>
</subsection>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 994, Sec. 3, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 5.091 and amended by Acts 2001, 77th Leg., ch. 693, Sec. 1, eff. Sept. 1, 2001.
Amended by:
Acts 2005, 79th Leg., Ch. 978 (H.B. 1823), Sec. 2, eff. September 1, 2005.
Acts 2015, 84th Leg., R.S., Ch. 996 (H.B. 311), Sec. 1, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scD/s5.0621">
<num value="5.0621">Sec. 5.0621.</num>
<heading>CONSTRUCTION WITH OTHER LAW</heading>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.0621/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (b), the provisions of this subchapter and Chapter 92 apply to the portion of an executory contract described by Section 5.062(a)(2) that is a residential lease agreement.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.0621/b">
<num value="b">(b)</num>
<content>After a tenant exercises an option to purchase leased property under a residential lease described by Subsection (a), Chapter 92 no longer applies to the lease.</content>
</subsection>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 978 (H.B. 1823), Sec. 3, eff. September 1, 2005.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scD/s5.0622">
<num value="5.0622">Sec. 5.0622.</num>
<heading>ADDITIONAL APPLICABILITY: CERTAIN COUNTIES</heading>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.0622/a">
<num value="a">(a)</num>
<chapeau>This section applies only to a county with a population of less than 100,000 that is located in a metropolitan statistical area as defined by the federal Office of Management and Budget:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.0622/1">
<num value="1">(1)</num>
<content>with a population of more than 1.5 million; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.0622/2">
<num value="2">(2)</num>
<content>adjacent to a different metropolitan statistical area as defined by the federal Office of Management and Budget with a population of more than 2.5 million.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.0622/b">
<num value="b">(b)</num>
<content>The commissioners court of a county may adopt an order requiring an executory contract for the conveyance of land used or to be used as a residence located in the county to be subject to this subchapter. The order must specify a method for determining whether the land is used or to be used as a residence.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.0622/c">
<num value="c">(c)</num>
<chapeau>The order may not include an executory contract for the conveyance of land:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.0622/1">
<num value="1">(1)</num>
<content>described by Section 5.062(b), (c), or (d); or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.0622/2">
<num value="2">(2)</num>
<content>that is to be used primarily for agricultural use, as defined by Section 1-d, Article VIII, Texas Constitution, or for farm, ranch, wildlife management, or timber production use within the meaning of Section 1-d-1, Article VIII, Texas Constitution, and for which no part of the land is to be used as a residence.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.0622/d">
<num value="d">(d)</num>
<content>If a tract described by Subsection (c)(2) ceases to be used primarily for agricultural use or for farm, ranch, wildlife management, or timber production use, or any part of the land is used as a residence, the executory contract for the conveyance of the land may be included in an order authorized by this section.</content>
</subsection>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 911 (H.B. 4374), Sec. 1, eff. September 1, 2021.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 644 (H.B. 4559), Sec. 209, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scD/s5.063">
<num value="5.063">Sec. 5.063.</num>
<heading>NOTICE</heading>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.063/a">
<num value="a">(a)</num>
<content>Notice under Section 5.064 must be in writing and must be delivered by registered or certified mail, return receipt requested. The notice must be conspicuous and printed in 14-point boldface type or 14-point uppercase typewritten letters, and must include on a separate page the statement:</content>
</subsection>
<sourceCredit>NOTICE
YOU ARE NOT COMPLYING WITH THE TERMS OF THE CONTRACT TO BUY YOUR PROPERTY. UNLESS YOU TAKE THE ACTION SPECIFIED IN THIS NOTICE BY (date) THE SELLER HAS THE RIGHT TO TAKE POSSESSION OF YOUR PROPERTY.
(b) The notice must also:
(1) identify and explain the remedy the seller intends to enforce;
(2) if the purchaser has failed to make a timely payment, specify:
(A) the delinquent amount, itemized into principal and interest;
(B) any additional charges claimed, such as late charges or attorney's fees; and
(C) the period to which the delinquency and additional charges relate; and
(3) if the purchaser has failed to comply with a term of the contract, identify the term violated and the action required to cure the violation.
(c) Notice by mail is given when it is mailed to the purchaser's residence or place of business. The affidavit of a person knowledgeable of the facts to the effect that notice was given is prima facie evidence of notice in an action involving a subsequent bona fide purchaser for value if the purchaser is not in possession of the real property and if the stated time to avoid the forfeiture has expired. A bona fide subsequent purchaser for value who relies upon the affidavit under this subsection shall take title free and clear of the contract.
Acts 1983, 68th Leg., p. 3485, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1993, 73rd Leg., ch. 444, Sec. 1, eff. Sept. 1, 1993; Acts 1995, 74th Leg., ch. 994, Sec. 2, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 5.062 and amended by Acts 2001, 77th Leg., ch. 693, Sec. 1, eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scD/s5.064">
<num value="5.064">Sec. 5.064.</num>
<heading>SELLER'S REMEDIES ON DEFAULT</heading>
<chapeau>A seller may enforce the remedy of rescission or of forfeiture and acceleration against a purchaser in default under an executory contract for conveyance of real property only if:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.064/1">
<num value="1">(1)</num>
<chapeau>the seller notifies the purchaser of:</chapeau>
<subparagraph identifier="/us/tx/pr/t2/c5/scD/s5.064/A">
<num value="A">(A)</num>
<content>the seller's intent to enforce a remedy under this section; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scD/s5.064/B">
<num value="B">(B)</num>
<content>the purchaser's right to cure the default within the 30-day period described by Section 5.065;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.064/2">
<num value="2">(2)</num>
<content>the purchaser fails to cure the default within the 30-day period described by Section 5.065;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.064/3">
<num value="3">(3)</num>
<content>Section 5.066 does not apply; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.064/4">
<num value="4">(4)</num>
<content>the contract has not been recorded in the county in which the property is located.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3484, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1995, 74th Leg., ch. 994, Sec. 2, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 5.061 and amended by Acts 2001, 77th Leg., ch. 693, Sec. 1, eff. Sept. 1, 2001. Amended by Acts 2003, 78th Leg., ch. 959, Sec. 1, eff. Sept. 1, 2003.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 996 (H.B. 311), Sec. 2, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scD/s5.065">
<num value="5.065">Sec. 5.065.</num>
<heading>RIGHT TO CURE DEFAULT</heading>
<content>Notwithstanding an agreement to the contrary, a purchaser in default under an executory contract for the conveyance of real property may avoid the enforcement of a remedy described by Section 5.064 by complying with the terms of the contract on or before the 30th day after the date notice is given under that section.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3485, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1995, 74th Leg., ch. 994, Sec. 2, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 5.063 and amended by Acts 2001, 77th Leg., ch. 693, Sec. 1, eff. Sept. 1, 2001. Amended by Acts 2003, 78th Leg., ch. 959, Sec. 2, eff. Sept. 1, 2003.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scD/s5.066">
<num value="5.066">Sec. 5.066.</num>
<heading>EQUITY PROTECTION; SALE OF PROPERTY</heading>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.066/a">
<num value="a">(a)</num>
<content>If a purchaser defaults after the purchaser has paid 40 percent or more of the amount due or the equivalent of 48 monthly payments under the executory contract or, regardless of the amount the purchaser has paid, the executory contract has been recorded, the seller is granted the power to sell, through a trustee designated by the seller, the purchaser's interest in the property as provided by this section. The seller may not enforce the remedy of rescission or of forfeiture and acceleration after the contract has been recorded.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.066/b">
<num value="b">(b)</num>
<content>The seller shall notify a purchaser of a default under the contract and allow the purchaser at least 60 days after the date notice is given to cure the default. The notice must be provided as prescribed by Section 5.063 except that the notice must substitute the following statement:</content>
</subsection>
<sourceCredit>NOTICE
YOU ARE NOT COMPLYING WITH THE TERMS OF THE CONTRACT TO BUY YOUR PROPERTY. UNLESS YOU TAKE THE ACTION SPECIFIED IN THIS NOTICE BY (date) A TRUSTEE DESIGNATED BY THE SELLER HAS THE RIGHT TO SELL YOUR PROPERTY AT A PUBLIC AUCTION.
(c) The trustee or a substitute trustee designated by the seller must post, file, and serve a notice of sale and the county clerk shall record and maintain the notice of sale as prescribed by Section 51.002. A notice of sale is not valid unless it is given after the period to cure has expired.
(d) The trustee or a substitute trustee designated by the seller must conduct the sale as prescribed by Section 51.002. The seller must:
(1) convey to a purchaser at a sale conducted under this section fee simple title to the real property; and
(2) warrant that the property is free from any encumbrance.
(e) The remaining balance of the amount due under the executory contract is the debt for purposes of a sale under this section. If the proceeds of the sale exceed the debt amount, the seller shall disburse the excess funds to the purchaser under the executory contract. If the proceeds of the sale are insufficient to extinguish the debt amount, the seller's right to recover the resulting deficiency is subject to Sections 51.003, 51.004, and 51.005 unless a provision of the executory contract releases the purchaser under the contract from liability.
(f) The affidavit of a person knowledgeable of the facts that states that the notice was given and the sale was conducted as provided by this section is prima facie evidence of those facts. A purchaser for value who relies on an affidavit under this subsection acquires title to the property free and clear of the executory contract.
(g) If a purchaser defaults before the purchaser has paid 40 percent of the amount due or the equivalent of 48 monthly payments under the executory contract, the seller may enforce the remedy of rescission or of forfeiture and acceleration of the indebtedness if the seller complies with the notice requirements of Sections 5.063 and 5.064.
Added by Acts 1995, 74th Leg., ch. 994, Sec. 3, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 5.101 and amended by Acts 2001, 77th Leg., ch. 693, Sec. 1, eff. Sept. 1, 2001.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 996 (H.B. 311), Sec. 3, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scD/s5.067">
<num value="5.067">Sec. 5.067.</num>
<heading>PLACEMENT OF LIEN FOR UTILITY SERVICE</heading>
<content>Notwithstanding any terms of a contract to the contrary, the placement of a lien for the reasonable value of improvements to residential real estate for purposes of providing utility service to the property shall not constitute a default under the terms of an executory contract for the purchase of the real property.</content>
<sourceCredit>Added by Acts 1991, 72nd Leg., ch. 743, Sec. 1, eff. Sept. 1, 1991. Amended by Acts 1995, 74th Leg., ch. 994, Sec. 2, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 5.064 and amended by Acts 2001, 77th Leg., ch. 693, Sec. 1, eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scD/s5.068">
<num value="5.068">Sec. 5.068.</num>
<heading>FOREIGN LANGUAGE REQUIREMENT</heading>
<content>If the negotiations that precede the execution of an executory contract are conducted primarily in a language other than English, the seller shall provide a copy in that language of all written documents relating to the transaction, including the contract, disclosure notices, annual accounting statements, and a notice of default required by this subchapter.</content>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 994, Sec. 3, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 5.093 and amended by Acts 2001, 77th Leg., ch. 693, Sec. 1, eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scD/s5.069">
<num value="5.069">Sec. 5.069.</num>
<heading>SELLER'S DISCLOSURE OF PROPERTY CONDITION</heading>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.069/a">
<num value="a">(a)</num>
<chapeau>Before an executory contract is signed by the purchaser, the seller shall provide the purchaser with:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.069/1">
<num value="1">(1)</num>
<content>a survey, which was completed within the past year, or plat of a current survey of the real property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.069/2">
<num value="2">(2)</num>
<content>a legible copy of any document that describes an encumbrance or other claim, including a restrictive covenant or easement, that affects title to the real property; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.069/3">
<num value="3">(3)</num>
<content>a written notice, which must be attached to the contract, informing the purchaser of the condition of the property that must, at a minimum, be executed by the seller and purchaser and read substantially similar to the following:</content>
</paragraph>
</subsection>
<sourceCredit>WARNING
IF ANY OF THE ITEMS BELOW HAVE NOT BEEN CHECKED, YOU MAY NOT BE ABLE TO LIVE ON THE PROPERTY.
SELLER'S DISCLOSURE NOTICE
CONCERNING THE PROPERTY AT (street address or legal description and city)
THIS DOCUMENT STATES CERTAIN APPLICABLE FACTS ABOUT THE PROPERTY YOU ARE CONSIDERING PURCHASING.
CHECK ALL THE ITEMS THAT ARE APPLICABLE OR TRUE:
_____ The property is in a recorded subdivision.
_____ The property has water service that provides potable water.
_____ The property has sewer service.
_____ The property has been approved by the appropriate municipal, county, or state agency for installation of a septic system.
_____ The property has electric service.
_____ The property is not in a floodplain.
_____ The roads to the boundaries of the property are paved and maintained by:
_____ the seller;
_____ the owner of the property on which the road exists;
_____ the municipality;
_____ the county; or
_____ the state.
_____ No individual or entity other than the seller:
(1) owns the property;
(2) has a claim of ownership to the property; or
(3) has an interest in the property.
_____ No individual or entity has a lien filed against the property.
_____ There are no restrictive covenants, easements, or other title exceptions or encumbrances that prohibit construction of a house on the property.
NOTICE: SELLER ADVISES PURCHASER TO:
(1) OBTAIN A TITLE ABSTRACT OR TITLE COMMITMENT COVERING
THE PROPERTY AND HAVE THE ABSTRACT OR COMMITMENT REVIEWED
BY AN ATTORNEY BEFORE SIGNING A CONTRACT OF THIS TYPE; AND
(2) PURCHASE AN OWNER'S POLICY OF TITLE INSURANCE
COVERING THE PROPERTY.
(b) If the property is not located in a recorded subdivision, the seller shall provide the purchaser with a separate disclosure form stating that utilities may not be available to the property until the subdivision is recorded as required by law.
(c) If the seller advertises property for sale under an executory contract, the advertisement must disclose information regarding the availability of water, sewer, and electric service.
(d) The seller's failure to provide information required by this section:
(1) is a false, misleading, or deceptive act or practice within the meaning of Section 17.46, Business & Commerce Code, and is actionable in a public or private suit brought under Subchapter E, Chapter 17, Business & Commerce Code; and
(2) entitles the purchaser to cancel and rescind the executory contract and receive a full refund of all payments made to the seller.
(e) Subsection (d) does not limit the purchaser's remedy against the seller for other false, misleading, or deceptive acts or practices actionable in a suit brought under Subchapter E, Chapter 17, Business & Commerce Code.
Added by Acts 1995, 74th Leg., ch. 994, Sec. 3, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 5.094 and amended by Acts 2001, 77th Leg., ch. 693, Sec. 1, eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scD/s5.070">
<num value="5.070">Sec. 5.070.</num>
<heading>SELLER'S DISCLOSURE OF TAX PAYMENTS AND INSURANCE COVERAGE</heading>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.070/a">
<num value="a">(a)</num>
<chapeau>Before an executory contract is signed by the purchaser, the seller shall provide the purchaser with:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.070/1">
<num value="1">(1)</num>
<content>a tax certificate from the collector for each taxing unit that collects taxes due on the property as provided by Section 31.08, Tax Code; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.070/2">
<num value="2">(2)</num>
<chapeau>a legible copy of any insurance policy, binder, or other evidence relating to the property that indicates:</chapeau>
<subparagraph identifier="/us/tx/pr/t2/c5/scD/s5.070/A">
<num value="A">(A)</num>
<content>the name of the insurer and the insured;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scD/s5.070/B">
<num value="B">(B)</num>
<content>a description of the property insured; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scD/s5.070/C">
<num value="C">(C)</num>
<content>the amount for which the property is insured.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.070/b">
<num value="b">(b)</num>
<chapeau>The seller's failure to provide information required by this section:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.070/1">
<num value="1">(1)</num>
<content>is a false, misleading, or deceptive act or practice within the meaning of Section 17.46, Business & Commerce Code, and is actionable in a public or private suit brought under Subchapter E, Chapter 17, Business & Commerce Code; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.070/2">
<num value="2">(2)</num>
<content>entitles the purchaser to cancel and rescind the executory contract and receive a full refund of all payments made to the seller.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.070/c">
<num value="c">(c)</num>
<content>Subsection (b) does not limit the purchaser's remedy against the seller for other false, misleading, or deceptive acts or practices actionable in a suit brought under Subchapter E, Chapter 17, Business & Commerce Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.070/d">
<num value="d">(d)</num>
<content>If the executory contract is recorded, the seller is not required to continue insuring the property.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 693, Sec. 1, eff. Sept. 1, 2001.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 996 (H.B. 311), Sec. 4, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scD/s5.071">
<num value="5.071">Sec. 5.071.</num>
<heading>SELLER'S DISCLOSURE OF FINANCING TERMS</heading>
<chapeau>Before an executory contract is signed by the purchaser, the seller shall provide to the purchaser a written statement that specifies:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.071/1">
<num value="1">(1)</num>
<content>the purchase price of the property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.071/2">
<num value="2">(2)</num>
<content>the interest rate charged under the contract;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.071/3">
<num value="3">(3)</num>
<content>the dollar amount, or an estimate of the dollar amount if the interest rate is variable, of the interest charged for the term of the contract;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.071/4">
<num value="4">(4)</num>
<content>the total amount of principal and interest to be paid under the contract;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.071/5">
<num value="5">(5)</num>
<content>the late charge, if any, that may be assessed under the contract; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.071/6">
<num value="6">(6)</num>
<content>the fact that the seller may not charge a prepayment penalty or any similar fee if the purchaser elects to pay the entire amount due under the contract before the scheduled payment date under the contract.</content>
</paragraph>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 994, Sec. 3, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 5.095 and amended by Acts 2001, 77th Leg., ch. 693, Sec. 1, eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scD/s5.072">
<num value="5.072">Sec. 5.072.</num>
<heading>ORAL AGREEMENTS PROHIBITED</heading>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.072/a">
<num value="a">(a)</num>
<content>An executory contract is not enforceable unless the contract is in writing and signed by the party to be bound or by that party's authorized representative.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.072/b">
<num value="b">(b)</num>
<content>The rights and obligations of the parties to a contract are determined solely from the written contract, and any prior oral agreements between the parties are superseded by and merged into the contract.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.072/c">
<num value="c">(c)</num>
<content>An executory contract may not be varied by any oral agreements or discussions that occur before or contemporaneously with the execution of the contract.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.072/d">
<num value="d">(d)</num>
<content>The seller shall include in a separate document or in a provision of the contract a statement printed in 14-point boldfaced type or 14-point uppercase typewritten letters that reads substantially similar to the following:</content>
<continuation>THIS EXECUTORY CONTRACT REPRESENTS THE FINAL AGREEMENT BETWEEN THE SELLER AND PURCHASER AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.072/e">
<num value="e">(e)</num>
<chapeau>The seller's failure to provide the notice required by this section:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.072/1">
<num value="1">(1)</num>
<content>is a false, misleading, or deceptive act or practice within the meaning of Section 17.46, Business & Commerce Code, and is actionable in a public or private suit brought under Subchapter E, Chapter 17, Business & Commerce Code; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.072/2">
<num value="2">(2)</num>
<content>entitles the purchaser to cancel and rescind the executory contract and receive a full refund of all payments made to the seller.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.072/f">
<num value="f">(f)</num>
<content>Subsection (e) does not limit the purchaser's remedy against the seller for other false, misleading, or deceptive acts or practices actionable in a suit brought under Subchapter E, Chapter 17, Business & Commerce Code.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 693, Sec. 1, eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scD/s5.073">
<num value="5.073">Sec. 5.073.</num>
<heading>CONTRACT TERMS, CERTAIN WAIVERS PROHIBITED</heading>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.073/a">
<num value="a">(a)</num>
<chapeau>A seller may not include as a term of the executory contract a provision that:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.073/1">
<num value="1">(1)</num>
<chapeau>imposes an additional late-payment fee that exceeds the lesser of:</chapeau>
<subparagraph identifier="/us/tx/pr/t2/c5/scD/s5.073/A">
<num value="A">(A)</num>
<content>eight percent of the monthly payment under the contract; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scD/s5.073/B">
<num value="B">(B)</num>
<content>the actual administrative cost of processing the late payment;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.073/2">
<num value="2">(2)</num>
<content>prohibits the purchaser from pledging the purchaser's interest in the property as security to obtain a loan to place improvements, including utility improvements or fire protection improvements, on the property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.073/3">
<num value="3">(3)</num>
<content>imposes a prepayment penalty or any similar fee if the purchaser elects to pay the entire amount due under the contract before the scheduled payment date under the contract;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.073/4">
<num value="4">(4)</num>
<content>forfeits an option fee or other option payment paid under the contract for a late payment; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.073/5">
<num value="5">(5)</num>
<content>increases the purchase price, imposes a fee or charge of any type, or otherwise penalizes a purchaser leasing property with an option to buy the property for requesting repairs or exercising any other right under Chapter 92.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.073/b">
<num value="b">(b)</num>
<content>A provision of the executory contract that purports to waive a right or exempt a party from a liability or duty under this subchapter is void.</content>
</subsection>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 994, Sec. 3, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 5.096 and amended by Acts 2001, 77th Leg., ch. 693, Sec. 1, eff. Sept. 1, 2001.
Amended by:
Acts 2005, 79th Leg., Ch. 978 (H.B. 1823), Sec. 4, eff. September 1, 2005.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scD/s5.074">
<num value="5.074">Sec. 5.074.</num>
<heading>PURCHASER'S RIGHT TO CANCEL CONTRACT WITHOUT CAUSE</heading>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.074/a">
<num value="a">(a)</num>
<content>In addition to other rights or remedies provided by law, the purchaser may cancel and rescind an executory contract for any reason by sending by telegram or certified or registered mail, return receipt requested, or by delivering in person a signed, written notice of cancellation to the seller not later than the 14th day after the date of the contract.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.074/b">
<num value="b">(b)</num>
<chapeau>If the purchaser cancels the contract as provided by Subsection (a), the seller shall, not later than the 10th day after the date the seller receives the purchaser's notice of cancellation:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.074/1">
<num value="1">(1)</num>
<content>return to the purchaser the executed contract and any property exchanged or payments made by the purchaser under the contract; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.074/2">
<num value="2">(2)</num>
<content>cancel any security interest arising out of the contract.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.074/c">
<num value="c">(c)</num>
<content>The seller shall include in immediate proximity to the space reserved in the executory contract for the purchaser's signature a statement printed in 14-point boldface type or 14-point uppercase typewritten letters that reads substantially similar to the following:</content>
<continuation>YOU, THE PURCHASER, MAY CANCEL THIS CONTRACT AT ANY TIME DURING THE NEXT TWO WEEKS. THE DEADLINE FOR CANCELING THE CONTRACT IS (date). THE ATTACHED NOTICE OF CANCELLATION EXPLAINS THIS RIGHT.</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.074/d">
<num value="d">(d)</num>
<content>The seller shall provide a notice of cancellation form to the purchaser at the time the purchaser signs the executory contract that is printed in 14-point boldface type or 14-point uppercase typewritten letters and that reads substantially similar to the following:</content>
<continuation>(date of contract)</continuation>
</subsection>
<sourceCredit>NOTICE OF CANCELLATION
YOU MAY CANCEL THE EXECUTORY CONTRACT FOR ANY REASON WITHOUT ANY PENALTY OR OBLIGATION BY (date).
(1) YOU MUST SEND BY TELEGRAM OR CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, OR DELIVER IN PERSON A SIGNED AND DATED COPY OF THIS CANCELLATION NOTICE OR ANY OTHER WRITTEN NOTICE TO (Name of Seller) AT (Seller's Address) BY (date).
(2) THE SELLER SHALL, NOT LATER THAN THE 10TH DAY AFTER THE DATE THE SELLER RECEIVES YOUR CANCELLATION NOTICE:
(A) RETURN THE EXECUTED CONTRACT AND ANY PROPERTY EXCHANGED OR PAYMENTS MADE BY YOU UNDER THE CONTRACT; AND
(B) CANCEL ANY SECURITY INTEREST ARISING OUT OF THE CONTRACT.
I ACKNOWLEDGE RECEIPT OF THIS NOTICE OF CANCELLATION FORM.
(Date) (Purchaser's Signature)
I HEREBY CANCEL THIS CONTRACT.
(Date) (Purchaser's Signature)
(e) The seller may not request the purchaser to sign a waiver of receipt of the notice of cancellation form required by this section.
Added by Acts 1995, 74th Leg., ch. 994, Sec. 3, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 5.097 by Acts 2001, 77th Leg., ch. 693, Sec. 1, eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scD/s5.075">
<num value="5.075">Sec. 5.075.</num>
<heading>PURCHASER'S RIGHT TO PLEDGE INTEREST IN PROPERTY ON CONTRACTS ENTERED INTO BEFORE SEPTEMBER 1, 2001</heading>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.075/a">
<num value="a">(a)</num>
<content>On an executory contract entered into before September 1, 2001 , a purchaser may pledge the interest in the property, which accrues pursuant to Section 5.066, only to obtain a loan for improving the safety of the property or any improvements on the property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.075/b">
<num value="b">(b)</num>
<chapeau>Loans that improve the safety of the property and improvements on the property include loans for:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.075/1">
<num value="1">(1)</num>
<content>improving or connecting a residence to water service;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.075/2">
<num value="2">(2)</num>
<content>improving or connecting a residence to a wastewater system;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.075/3">
<num value="3">(3)</num>
<content>building or improving a septic system;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.075/4">
<num value="4">(4)</num>
<content>structural improvements in the residence; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.075/5">
<num value="5">(5)</num>
<content>improved fire protection.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 994, Sec. 3, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 5.098 and amended by Acts 2001, 77th Leg., ch. 693, Sec. 1, eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scD/s5.076">
<num value="5.076">Sec. 5.076.</num>
<heading>RECORDING REQUIREMENTS</heading>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.076/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (b), the seller shall record the executory contract, including the attached disclosure statement required by Section 5.069, as prescribed by Title 3 on or before the 30th day after the date the contract is executed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.076/b">
<num value="b">(b)</num>
<content>Section 12.002(c) does not apply to an executory contract filed for record under this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.076/c">
<num value="c">(c)</num>
<content>If the executory contract is terminated for any reason, the seller shall record the instrument that terminates the contract.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.076/d">
<num value="d">(d)</num>
<content>The county clerk shall collect the filing fee prescribed by Section 118.011, Local Government Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.076/e">
<num value="e">(e)</num>
<content>A seller who violates this section is liable to the purchaser in the same manner and for the same amount as a seller who violates Section 5.079 is liable to a purchaser, except the damages may not exceed $500 for each calendar year of noncompliance. This subsection does not limit or affect any other rights or remedies a purchaser has under other law.</content>
</subsection>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 994, Sec. 3, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 5.099 and amended Acts 2001, 77th Leg., ch. 693, Sec. 1, eff. Sept. 1, 2001.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 996 (H.B. 311), Sec. 5, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scD/s5.077">
<num value="5.077">Sec. 5.077.</num>
<heading>ANNUAL ACCOUNTING STATEMENT</heading>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.077/a">
<num value="a">(a)</num>
<content>The seller shall provide the purchaser with an annual statement in January of each year for the term of the executory contract. If the seller mails the statement to the purchaser, the statement must be postmarked not later than January 31.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.077/b">
<num value="b">(b)</num>
<chapeau>The statement must include the following information:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.077/1">
<num value="1">(1)</num>
<content>the amount paid under the contract;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.077/2">
<num value="2">(2)</num>
<content>the remaining amount owed under the contract;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.077/3">
<num value="3">(3)</num>
<content>the number of payments remaining under the contract;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.077/4">
<num value="4">(4)</num>
<content>the amounts paid to taxing authorities on the purchaser's behalf if collected by the seller;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.077/5">
<num value="5">(5)</num>
<content>the amounts paid to insure the property on the purchaser's behalf if collected by the seller;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.077/6">
<num value="6">(6)</num>
<content>if the property has been damaged and the seller has received insurance proceeds, an accounting of the proceeds applied to the property; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.077/7">
<num value="7">(7)</num>
<content>if the seller has changed insurance coverage, a legible copy of the current policy, binder, or other evidence that satisfies the requirements of Section 5.070(a)(2).</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.077/c">
<num value="c">(c)</num>
<chapeau>A seller who conducts less than two transactions in a 12-month period under this section who fails to comply with Subsection (a) is liable to the purchaser for:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.077/1">
<num value="1">(1)</num>
<content>liquidated damages in the amount of $100 for each annual statement the seller fails to provide to the purchaser within the time required by Subsection (a); and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.077/2">
<num value="2">(2)</num>
<content>reasonable attorney's fees.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.077/d">
<num value="d">(d)</num>
<chapeau>A seller who conducts two or more transactions in a 12-month period under this section who fails to comply with Subsection (a) is liable to the purchaser for:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.077/1">
<num value="1">(1)</num>
<content>liquidated damages in the amount of $250 a day for each day after January 31 that the seller fails to provide the purchaser with the statement, but not to exceed the fair market value of the property; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.077/2">
<num value="2">(2)</num>
<content>reasonable attorney's fees.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.077/e">
<num value="e">(e)</num>
<content>The requirements of this section continue to apply after a purchaser obtains title to the property by conversion or any other process.</content>
</subsection>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 994, Sec. 3, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 5.100 and amended by Acts 2001, 77th Leg., ch. 693, Sec. 1, eff. Sept. 1, 2001.
Amended by:
Acts 2005, 79th Leg., Ch. 978 (H.B. 1823), Sec. 5, eff. September 1, 2005.
Acts 2015, 84th Leg., R.S., Ch. 996 (H.B. 311), Sec. 6, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scD/s5.078">
<num value="5.078">Sec. 5.078.</num>
<heading>DISPOSITION OF INSURANCE PROCEEDS</heading>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.078/a">
<num value="a">(a)</num>
<chapeau>The named insured under an insurance policy, binder, or other coverage relating to property subject to an executory contract for the conveyance of real property shall inform the insurer, not later than the 10th day after the date the coverage is obtained or the contract executed, whichever is later, of:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.078/1">
<num value="1">(1)</num>
<content>the executory contract for conveyance and the term of the contract; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.078/2">
<num value="2">(2)</num>
<content>the name and address of the other party to the contract.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.078/b">
<num value="b">(b)</num>
<content>An insurer who disburses proceeds under an insurance policy, binder, or other coverage relating to property that has been damaged shall issue the proceeds jointly to the purchaser and the seller designated in the contract.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.078/c">
<num value="c">(c)</num>
<content>If proceeds under an insurance policy, binder, or other coverage are disbursed, the purchaser and seller shall ensure that the proceeds are used to repair, remedy, or improve the condition on the property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.078/d">
<num value="d">(d)</num>
<content>The failure of a seller or purchaser to comply with Subsection (c) is a false, misleading, or deceptive act or practice within the meaning of Section 17.46, Business & Commerce Code, and is actionable in a public or private suit brought under Subchapter E, Chapter 17, Business & Commerce Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.078/e">
<num value="e">(e)</num>
<content>Subsection (d) does not limit either party's remedy for other false, misleading, or deceptive acts or practices actionable in a suit brought under Subchapter E, Chapter 17, Business & Commerce Code.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 693, Sec. 1, eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scD/s5.079">
<num value="5.079">Sec. 5.079.</num>
<heading>TITLE TRANSFER</heading>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.079/a">
<num value="a">(a)</num>
<content>A recorded executory contract shall be the same as a deed with a vendor's lien. The vendor's lien is for the amount of the unpaid contract price, less any lawful deductions, and may be enforced by foreclosure sale under Section 5.066 or by judicial foreclosure. A general warranty is implied unless otherwise limited by the recorded executory contract. If an executory contract has not been recorded or converted under Section 5.081, the seller shall transfer recorded, legal title of the property covered by the executory contract to the purchaser not later than the 30th day after the date the seller receives the purchaser's final payment due under the contract.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.079/b">
<num value="b">(b)</num>
<chapeau>A seller who violates Subsection (a) is liable to the purchaser for:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.079/1">
<num value="1">(1)</num>
<chapeau>liquidated damages in the amount of:</chapeau>
<subparagraph identifier="/us/tx/pr/t2/c5/scD/s5.079/A">
<num value="A">(A)</num>
<content>$250 a day for each day the seller fails to transfer the title to the purchaser during the period that begins the 31st day and ends the 90th day after the date the seller receives the purchaser's final payment due under the contract; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scD/s5.079/B">
<num value="B">(B)</num>
<content>$500 a day for each day the seller fails to transfer title to the purchaser after the 90th day after the date the seller receives the purchaser's final payment due under the contract; and</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.079/2">
<num value="2">(2)</num>
<content>reasonable attorney's fees.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.079/c">
<num value="c">(c)</num>
<content>If a person to whom a seller's property interest passes by will or intestate succession is required to obtain a court order to clarify the person's status as an heir or to clarify the status of the seller or the property before the person may convey good and indefeasible title to the property, the court in which the action is pending may waive payment of the liquidated damages and attorney's fees under Subsection (b) if the court finds that the person is pursuing the action to establish good and indefeasible title with reasonable diligence.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.079/d">
<num value="d">(d)</num>
<content>In this section, "seller" includes a successor, assignee, personal representative, executor, or administrator of the seller.</content>
</subsection>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 994, Sec. 3, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 5.102 and amended by Acts 2001, 77th Leg., ch. 693, Sec. 1, eff. Sept. 1, 2001.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 996 (H.B. 311), Sec. 7, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scD/s5.080">
<num value="5.080">Sec. 5.080.</num>
<heading>LIABILITY FOR DISCLOSURES</heading>
<content>For purposes of this subchapter, a disclosure required by this subchapter that is made by a seller's agent is a disclosure made by the seller.</content>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 994, Sec. 3, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 5.103 and amended by Acts 2001, 77th Leg., ch. 693, Sec. 1, eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scD/s5.081">
<num value="5.081">Sec. 5.081.</num>
<heading>RIGHT TO CONVERT CONTRACT</heading>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.081/a">
<num value="a">(a)</num>
<content>A purchaser, at any time and without paying penalties or charges of any kind, is entitled to convert the purchaser's interest in property under an executory contract into recorded, legal title in accordance with this section, regardless of whether the seller has recorded the executory contract.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.081/b">
<num value="b">(b)</num>
<content>If the purchaser tenders to the seller an amount of money equal to the balance of the total amount owed by the purchaser to the seller under the executory contract, the seller shall transfer to the purchaser recorded, legal title of the property covered by the contract.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.081/c">
<num value="c">(c)</num>
<chapeau>Subject to Subsection (d), if the purchaser delivers to the seller of property covered by an executory contract a promissory note that is equal in amount to the balance of the total amount owed by the purchaser to the seller under the contract and that contains the same interest rate, due dates, and late fees as the contract:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.081/1">
<num value="1">(1)</num>
<content>the seller shall execute a deed containing any warranties required by the contract and conveying to the purchaser recorded, legal title of the property; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.081/2">
<num value="2">(2)</num>
<chapeau>the purchaser shall simultaneously execute a deed of trust that:</chapeau>
<subparagraph identifier="/us/tx/pr/t2/c5/scD/s5.081/A">
<num value="A">(A)</num>
<content>contains the same terms as the contract regarding the purchaser's and seller's duties concerning the property;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scD/s5.081/B">
<num value="B">(B)</num>
<content>secures the purchaser's payment and performance under the promissory note and deed of trust; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scD/s5.081/C">
<num value="C">(C)</num>
<content>conveys the property to the trustee, in trust, and confers on the trustee the power to sell the property if the purchaser defaults on the promissory note or the terms of the deed of trust.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.081/d">
<num value="d">(d)</num>
<chapeau>On or before the 10th day after the date the seller receives a promissory note under Subsection (c) that substantially complies with that subsection, the seller shall:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.081/1">
<num value="1">(1)</num>
<content>deliver to the purchaser a written explanation that legally justifies why the seller refuses to convert the purchaser's interest into recorded, legal title under Subsection (c); or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.081/2">
<num value="2">(2)</num>
<content>communicate with the purchaser to schedule a mutually agreeable day and time to execute the deed and deed of trust under Subsection (c).</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.081/e">
<num value="e">(e)</num>
<content>A seller who violates this section is liable to the purchaser in the same manner and amount as a seller who violates Section 5.079 is liable to a purchaser. This subsection does not limit or affect any other rights or remedies a purchaser has under other law.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.081/f">
<num value="f">(f)</num>
<chapeau>On the last date that all of the conveyances described by Subsections (b) and (c) are executed, the executory contract:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.081/1">
<num value="1">(1)</num>
<content>is considered completed; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.081/2">
<num value="2">(2)</num>
<content>has no further effect.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.081/g">
<num value="g">(g)</num>
<content>The appropriate use of forms published by the Texas Real Estate Commission for transactions described by this section constitutes compliance with this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.081/h">
<num value="h">(h)</num>
<content>This section may not be construed to limit the purchaser's interest in the property established by other law, if any, or any other rights of the purchaser under this subchapter.</content>
</subsection>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 978 (H.B. 1823), Sec. 6, eff. September 1, 2005.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 996 (H.B. 311), Sec. 8, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scD/s5.082">
<num value="5.082">Sec. 5.082.</num>
<heading>REQUEST FOR BALANCE AND TRUSTEE</heading>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.082/a">
<num value="a">(a)</num>
<chapeau>A purchaser under an executory contract, on written request, is entitled to receive the following information from the seller:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.082/1">
<num value="1">(1)</num>
<content>as of the date of the request or another date specified by the purchaser, the amount owed by the purchaser under the contract; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.082/2">
<num value="2">(2)</num>
<content>if applicable, the name and address of the seller's desired trustee for a deed of trust to be executed under Section 5.081.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.082/b">
<num value="b">(b)</num>
<content>On or before the 10th day after the date the seller receives from the purchaser a written request for information described by Subsection (a), the seller shall provide to the purchaser a written statement of the requested information.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.082/c">
<num value="c">(c)</num>
<chapeau>If the seller does not timely respond to a request made under this section, the purchaser may:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.082/1">
<num value="1">(1)</num>
<content>determine or pay the amount owed under the contract, including determining the amount necessary for a promissory note under Section 5.081; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.082/2">
<num value="2">(2)</num>
<content>if applicable, select a trustee for a deed of trust under Section 5.081.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.082/d">
<num value="d">(d)</num>
<content>For purposes of Subsection (c)(2), a purchaser must select a trustee that lives or has a place of business in the same county where the property covered by the executory contract is located.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.082/e">
<num value="e">(e)</num>
<chapeau>Not later than the 20th day after the date a seller receives notice of an amount determined by a purchaser under Subsection (c)(1), the seller may contest that amount by sending a written objection to the purchaser. An objection under this subsection must:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.082/1">
<num value="1">(1)</num>
<content>be sent to the purchaser by regular and certified mail;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.082/2">
<num value="2">(2)</num>
<content>include the amount the seller claims is the amount owed under the contract; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.082/3">
<num value="3">(3)</num>
<content>be based on written records kept by the seller or the seller's agent that were maintained and regularly updated for the entire term of the executory contract.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 978 (H.B. 1823), Sec. 6, eff. September 1, 2005.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scD/s5.083">
<num value="5.083">Sec. 5.083.</num>
<heading>RIGHT TO CANCEL CONTRACT FOR IMPROPER PLATTING</heading>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.083/a">
<num value="a">(a)</num>
<chapeau>Except as provided by Subsection (c), in addition to other rights or remedies provided by law, the purchaser may cancel and rescind an executory contract at any time if the purchaser learns that the seller has not properly subdivided or platted the property that is covered by the contract in accordance with state and local law. A purchaser canceling and rescinding a contract under this subsection must:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.083/1">
<num value="1">(1)</num>
<content>deliver a signed, written notice of the cancellation and rescission to the seller in person; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.083/2">
<num value="2">(2)</num>
<content>send a signed, written notice of the cancellation and rescission to the seller by telegram or certified or registered mail, return receipt requested.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.083/b">
<num value="b">(b)</num>
<chapeau>If the purchaser cancels the contract as provided under Subsection (a), the seller, not later than the 10th day after the date the seller receives the notice of cancellation and rescission, shall:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.083/1">
<num value="1">(1)</num>
<content>deliver in person or send by telegram or certified or registered mail, return receipt requested, to the purchaser a signed, written notice that the seller intends to subdivide or plat the property properly; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.083/2">
<num value="2">(2)</num>
<chapeau>return to the purchaser all payments of any kind made to the seller under the contract and reimburse the purchaser for:</chapeau>
<subparagraph identifier="/us/tx/pr/t2/c5/scD/s5.083/A">
<num value="A">(A)</num>
<content>any payments the purchaser made to a taxing authority for the property; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scD/s5.083/B">
<num value="B">(B)</num>
<content>the value of any improvements made to the property by the purchaser.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.083/c">
<num value="c">(c)</num>
<chapeau>A purchaser may not exercise the purchaser's right to cancel and rescind an executory contract under this section if, on or before the 90th day after the date the purchaser receives the seller's notice under Subsection (b)(1), the seller:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.083/1">
<num value="1">(1)</num>
<content>properly subdivides or plats the property; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.083/2">
<num value="2">(2)</num>
<content>delivers in person or sends by telegram or certified or registered mail, return receipt requested, to the purchaser a signed, written notice evidencing that the property has been subdivided or platted in accordance with state and local law.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.083/d">
<num value="d">(d)</num>
<content>The seller may not terminate the purchaser's possession of the property covered by the contract being canceled and rescinded before the seller pays the purchaser any money to which the purchaser is entitled under Subsection (b).</content>
</subsection>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 978 (H.B. 1823), Sec. 6, eff. September 1, 2005.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scD/s5.084">
<num value="5.084">Sec. 5.084.</num>
<heading>RIGHT TO DEDUCT</heading>
<content>If a seller is liable to a purchaser under this subchapter, the purchaser, without taking judicial action, may deduct the amount owed to the purchaser by the seller from any amounts owed to the seller by the purchaser under the terms of an executory contract.</content>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 978 (H.B. 1823), Sec. 6, eff. September 1, 2005.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scD/s5.085">
<num value="5.085">Sec. 5.085.</num>
<heading>FEE SIMPLE TITLE REQUIRED; MAINTENANCE OF FEE SIMPLE TITLE</heading>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.085/a">
<num value="a">(a)</num>
<content>A potential seller may not execute an executory contract with a potential purchaser if the seller does not own the property in fee simple free from any liens or other encumbrances.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.085/b">
<num value="b">(b)</num>
<chapeau>Except as provided by this subsection, a seller, or the seller's heirs or assigns, must maintain fee simple title free from any liens or other encumbrances to property covered by an executory contract for the entire duration of the contract. This subsection does not apply to a lien or encumbrance placed on the property that is:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.085/1">
<num value="1">(1)</num>
<content>placed on the property because of the conduct of the purchaser;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.085/2">
<num value="2">(2)</num>
<content>agreed to by the purchaser as a condition of a loan obtained to place improvements on the property, including utility or fire protection improvements; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.085/3">
<num value="3">(3)</num>
<chapeau>placed on the property by the seller prior to the execution of the contract in exchange for a loan used only to purchase the property if:</chapeau>
<subparagraph identifier="/us/tx/pr/t2/c5/scD/s5.085/A">
<num value="A">(A)</num>
<content>the seller, not later than the third day before the date the contract is executed, notifies the purchaser in a separate written disclosure:</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.085/i">
<num value="i">(i)</num>
<chapeau>of the name, address, and phone number of the lienholder or, if applicable, servicer of the loan;</chapeau>
<clause identifier="/us/tx/pr/t2/c5/scD/s5.085/ii">
<num value="ii">(ii)</num>
<content>of the loan number and outstanding balance of the loan;</content>
</clause>
<clause identifier="/us/tx/pr/t2/c5/scD/s5.085/iii">
<num value="iii">(iii)</num>
<content>of the monthly payments due on the loan and the due date of those payments; and</content>
</clause>
<clause identifier="/us/tx/pr/t2/c5/scD/s5.085/iv">
<num value="iv">(iv)</num>
<content>in 14-point type that, if the seller fails to make timely payments to the lienholder, the lienholder may attempt to collect the debt by foreclosing on the lien and selling the property at a foreclosure sale;</content>
</clause>
<subparagraph identifier="/us/tx/pr/t2/c5/scD/s5.085/B">
<num value="B">(B)</num>
<content>the lien:</content>
</subparagraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.085/i">
<num value="i">(i)</num>
<chapeau>is attached only to the property sold to the purchaser under the contract; and</chapeau>
<clause identifier="/us/tx/pr/t2/c5/scD/s5.085/ii">
<num value="ii">(ii)</num>
<content>secures indebtedness that, at no time, is or will be greater in amount than the amount of the total outstanding balance owed by the purchaser under the executory contract;</content>
</clause>
<subparagraph identifier="/us/tx/pr/t2/c5/scD/s5.085/C">
<num value="C">(C)</num>
<content>the lienholder:</content>
</subparagraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.085/i">
<num value="i">(i)</num>
<chapeau>does not prohibit the property from being encumbered by an executory contract; and</chapeau>
<clause identifier="/us/tx/pr/t2/c5/scD/s5.085/ii">
<num value="ii">(ii)</num>
<content>consents to verify the status of the loan on request of the purchaser and to accept payments directly from the purchaser if the seller defaults on the loan; and</content>
</clause>
<subparagraph identifier="/us/tx/pr/t2/c5/scD/s5.085/D">
<num value="D">(D)</num>
<content>the following covenants are placed in the executory contract:</content>
</subparagraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.085/i">
<num value="i">(i)</num>
<chapeau>a covenant that obligates the seller to make timely payments on the loan and to give monthly statements to the purchaser reflecting the amount paid to the lienholder, the date the lienholder receives the payment, and the information described by Paragraph (A);</chapeau>
<clause identifier="/us/tx/pr/t2/c5/scD/s5.085/ii">
<num value="ii">(ii)</num>
<content>a covenant that obligates the seller, not later than the third day the seller receives or has actual knowledge of a document or an event described by this subparagraph, to notify the purchaser in writing in 14-point type that the seller has been sent a notice of default, notice of acceleration, or notice of foreclosure or has been sued in connection with a lien on the property and to attach a copy of all related documents received to the written notice; and</content>
</clause>
<clause identifier="/us/tx/pr/t2/c5/scD/s5.085/iii">
<num value="iii">(iii)</num>
<content>a covenant that warrants that if the seller does not make timely payments on the loan or any other indebtedness secured by the property, the purchaser may, without notice, cure any deficiency with a lienholder directly and deduct from the total outstanding balance owed by the purchaser under the executory contract, without the necessity of judicial action, 150 percent of any amount paid to the lienholder.</content>
</clause>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.085/c">
<num value="c">(c)</num>
<chapeau>A violation of this section:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.085/1">
<num value="1">(1)</num>
<content>is a false, misleading, or deceptive act or practice within the meaning of Section 17.46, Business & Commerce Code, and is actionable in a public or private suit brought under Subchapter E, Chapter 17, Business & Commerce Code; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.085/2">
<num value="2">(2)</num>
<chapeau>in addition to other rights or remedies provided by law, entitles the purchaser to cancel and rescind the executory contract and receive from the seller:</chapeau>
<subparagraph identifier="/us/tx/pr/t2/c5/scD/s5.085/A">
<num value="A">(A)</num>
<content>the return of all payments of any kind made to the seller under the contract; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scD/s5.085/B">
<num value="B">(B)</num>
<content>reimbursement for:</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.085/i">
<num value="i">(i)</num>
<chapeau>any payments the purchaser made to a taxing authority for the property; and</chapeau>
<clause identifier="/us/tx/pr/t2/c5/scD/s5.085/ii">
<num value="ii">(ii)</num>
<content>the value of any improvements made to the property by the purchaser.</content>
</clause>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.085/d">
<num value="d">(d)</num>
<chapeau>A seller is not liable under this section if:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.085/1">
<num value="1">(1)</num>
<content>a lien is placed on the property by a person other than the seller; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scD/s5.085/2">
<num value="2">(2)</num>
<content>not later than the 30th day after the date the seller receives notice of the lien, the seller takes all steps necessary to remove the lien and has the lien removed from the property.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 978 (H.B. 1823), Sec. 6, eff. September 1, 2005.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scD/s5.087">
<num value="5.087">Sec. 5.087.</num>
<heading>ADDITIONAL PROVISIONS: CERTAIN COUNTIES</heading>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.087/a">
<num value="a">(a)</num>
<content>This section applies only to a county adopting an order under Section 5.0622.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scD/s5.087/b">
<num value="b">(b)</num>
<content>The commissioners court may not modify the provisions of this subchapter except the commissioners court may provide in the order that an executory contract to which the order applies may not be used to purchase land for residential purposes unless the conversion authorized by Section 5.081 is required to occur not later than three years after the date the executory contract is entered into.</content>
</subsection>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 911 (H.B. 4374), Sec. 2, eff. September 1, 2021.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t2/c5/scF">
<num value="F">SUBCHAPTER F.</num>
<heading>REQUIREMENTS FOR CONVEYANCES OF MINERAL OR ROYALTY INTERESTS</heading>
<section identifier="/us/tx/pr/t2/c5/scF/s5.151">
<num value="5.151">Sec. 5.151.</num>
<heading>DISCLOSURE IN OFFER TO PURCHASE MINERAL INTEREST</heading>
<subsection identifier="/us/tx/pr/t2/c5/scF/s5.151/a">
<num value="a">(a)</num>
<content>A person who mails to the owner of a mineral or royalty interest an offer to purchase only the mineral or royalty interest, it being understood that for the purpose of this section the taking of an oil, gas, or mineral lease shall not be deemed a purchase of a mineral or royalty interest, and encloses an instrument of conveyance of only the mineral or royalty interest and a draft or other instrument, as defined in Section 3.104, Business & Commerce Code, providing for payment for that interest shall include in the offer a conspicuous statement printed in a type style that is approximately the same size as 14-point type style or larger and is in substantially the following form:</content>
<continuation>BY EXECUTING AND DELIVERING THIS INSTRUMENT YOU ARE SELLING ALL OR A PORTION OF YOUR MINERAL OR ROYALTY INTEREST IN (DESCRIPTION OF PROPERTY BEING CONVEYED).</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scF/s5.151/b">
<num value="b">(b)</num>
<chapeau>A person who conveys a mineral or royalty interest as provided by Subsection (a) may bring suit against the purchaser of the interest if:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scF/s5.151/1">
<num value="1">(1)</num>
<content>the purchaser did not give the notice required by Subsection (a); and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scF/s5.151/2">
<num value="2">(2)</num>
<content>the person has given 30 days' written notice to the purchaser that a suit will be filed unless the matter is otherwise resolved.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scF/s5.151/c">
<num value="c">(c)</num>
<chapeau>A plaintiff who prevails in a suit under Subsection (b) may recover from the initial purchaser of the mineral or royalty interest the greater of:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scF/s5.151/1">
<num value="1">(1)</num>
<content>$100; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scF/s5.151/2">
<num value="2">(2)</num>
<content>an amount up to the difference between the amount paid by the purchaser for the mineral or royalty interest and the fair market value of the mineral or royalty interest at the time of the sale.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scF/s5.151/d">
<num value="d">(d)</num>
<chapeau>The prevailing party in a suit under Subsection (b) may recover:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scF/s5.151/1">
<num value="1">(1)</num>
<content>court costs; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scF/s5.151/2">
<num value="2">(2)</num>
<content>reasonable attorney's fees.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scF/s5.151/e">
<num value="e">(e)</num>
<content>A person must bring a suit under Subsection (b) not later than the second anniversary of the date the person executed the conveyance.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scF/s5.151/f">
<num value="f">(f)</num>
<content>The remedy provided under this section shall be in addition to any other remedies existing under law, excluding rescission or other remedies that would make the conveyance of the mineral or royalty interest void or of no force and effect.</content>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1200, Sec. 1, eff. Sept. 1, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scF/s5.152">
<num value="5.152">Sec. 5.152.</num>
<heading>CERTAIN PURCHASES OF MINERAL OR ROYALTY INTERESTS VOID</heading>
<subsection identifier="/us/tx/pr/t2/c5/scF/s5.152/a">
<num value="a">(a)</num>
<chapeau>This section applies only to the conveyance of a mineral or royalty interest by an instrument that:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scF/s5.152/1">
<num value="1">(1)</num>
<content>is presented to the owner of the interest by the person acquiring the interest;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scF/s5.152/2">
<num value="2">(2)</num>
<content>is titled an oil and gas lease or an oil and gas royalty lease or has other words in the caption or other prominently displayed label that indicate that the transaction is a lease of a mineral or royalty interest; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scF/s5.152/3">
<num value="3">(3)</num>
<chapeau>has the effect of conveying, permanently or for a term, all or a portion of the owner's:</chapeau>
<subparagraph identifier="/us/tx/pr/t2/c5/scF/s5.152/A">
<num value="A">(A)</num>
<content>mineral interest in lands covered by an existing oil, gas, or mineral lease; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scF/s5.152/B">
<num value="B">(B)</num>
<content>royalty interest in production from an existing oil, gas, or mineral lease.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scF/s5.152/b">
<num value="b">(b)</num>
<chapeau>This section does not apply to a conveyance of a mineral or royalty interest by an instrument that:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scF/s5.152/1">
<num value="1">(1)</num>
<content>is an oil, gas, or mineral lease;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scF/s5.152/2">
<num value="2">(2)</num>
<content>conveys a mineral or royalty interest for a term; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scF/s5.152/3">
<num value="3">(3)</num>
<content>provides that the interest conveyed vests in possession after the expiration or termination of all or a portion of the interest conveyed by an existing oil, gas, or mineral lease in effect at the time of the execution of the instrument, commonly referred to as a top lease.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scF/s5.152/c">
<num value="c">(c)</num>
<chapeau>A conveyance instrument described by Subsection (a) must include:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scF/s5.152/1">
<num value="1">(1)</num>
<content>a conspicuous statement printed at the top of the first page of the instrument below the caption, if any, in an approximate type size of at least 14 points and in substantially the following form:</content>
</paragraph>
</subsection>
<sourceCredit>THIS IS NOT AN OIL AND GAS LEASE. YOU ARE SELLING ALL OR A PORTION OF YOUR MINERAL OR ROYALTY INTERESTS IN (DESCRIPTION OF PROPERTY BEING CONVEYED).
; and
(2) a conspicuous statement printed at the top of each subsequent page of the instrument and immediately above the signature of the person conveying the interest in an approximate type size of at least 14 points and in substantially the following form:
THIS IS NOT AN OIL AND GAS LEASE. YOU ARE SELLING ALL OR A PORTION OF YOUR MINERAL OR ROYALTY INTERESTS.
(d) If the conveyance instrument does not include the statements required by Subsection (c), the conveyance is void.
(e) A person who has conveyed a royalty or mineral interest in a conveyance that is void under this section may bring suit against the purchaser of the interest to remove the conveyance as a cloud on title and may recover from the purchaser:
(1) all royalties and bonuses paid to the purchaser and any successor or assign of the purchaser;
(2) court costs; and
(3) reasonable attorney's fees.
(f) The remedies under this section are in addition to any other rights or remedies a person may have at law or pursuant to contract.
Added by Acts 2019, 86th Leg., R.S., Ch. 914 (H.B. 3838), Sec. 1, eff. September 1, 2019.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t2/c5/scG">
<num value="G">SUBCHAPTER G.</num>
<heading>CERTAIN PRIVATE TRANSFER FEES PROHIBITED; PRESERVATION OF PRIVATE REAL PROPERTY RIGHTS</heading>
<section identifier="/us/tx/pr/t2/c5/scG/s5.201">
<num value="5.201">Sec. 5.201.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this subchapter:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.201/1">
<num value="1">(1)</num>
<content>"Encumbered property" means all property, including the property of a subsequent purchaser, subject to the same private transfer fee obligation.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.201/2">
<num value="2">(2)</num>
<content>"Lender" means a lending institution, including a bank, trust company, banking association, savings and loan association, mortgage company, investment bank, credit union, life insurance company, and governmental agency, that customarily provides financing or an affiliate of a lending institution.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.201/3">
<num value="3">(3)</num>
<content>"Payee" means a person who claims the right to receive or collect a private transfer fee payable under a private transfer fee obligation and who may or may not have a pecuniary interest in the obligation.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.201/4">
<num value="4">(4)</num>
<content>"Private transfer fee" means an amount of money, regardless of the method of determining the amount, that is payable on the transfer of an interest in real property or payable for a right to make or accept a transfer.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.201/5">
<num value="5">(5)</num>
<chapeau>"Private transfer fee obligation" means an obligation to pay a private transfer fee created under:</chapeau>
<subparagraph identifier="/us/tx/pr/t2/c5/scG/s5.201/A">
<num value="A">(A)</num>
<content>a declaration or other covenant recorded in the real property records in the county in which the property subject to the private transfer fee obligation is located;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scG/s5.201/B">
<num value="B">(B)</num>
<content>a contractual agreement or promise; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scG/s5.201/C">
<num value="C">(C)</num>
<content>an unrecorded contractual agreement or promise.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.201/6">
<num value="6">(6)</num>
<content>"Subsequent owner" means a person who acquires real property by transfer from a person other than the person who is the seller of the property on the date the private transfer fee obligation is created.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.201/7">
<num value="7">(7)</num>
<content>"Subsequent purchaser" means a person who purchases real property from a person other than the person who is the seller on the date the private transfer fee obligation is created. The term includes a lender who provides a mortgage loan to a subsequent purchaser to purchase the property.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.201/8">
<num value="8">(8)</num>
<content>"Transfer" means the sale, gift, conveyance, assignment, inheritance, or other transfer of an ownership interest in real property.</content>
</paragraph>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 211 (H.B. 8), Sec. 1, eff. June 17, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scG/s5.202">
<num value="5.202">Sec. 5.202.</num>
<heading>CERTAIN PRIVATE TRANSFER FEE OBLIGATIONS VOID</heading>
<subsection identifier="/us/tx/pr/t2/c5/scG/s5.202/a">
<num value="a">(a)</num>
<content>Except as provided by this subchapter, a private transfer fee obligation created on or after the effective date of this subchapter is not binding or enforceable against a subsequent owner or subsequent purchaser of an interest in real property and is void.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scG/s5.202/b">
<num value="b">(b)</num>
<chapeau>For purposes of this subchapter, the following payments are not considered private transfer fee obligations:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.202/1">
<num value="1">(1)</num>
<content>consideration paid by a purchaser to a seller for an interest in real property transferred, including, as applicable, a mineral interest transferred, including additional consideration paid to a seller for the property's appreciation, development, or sale after the interest in the property has been transferred to the purchaser, if the additional consideration is paid only once and that payment does not bind successors in interest to the property to any private transfer fee obligation;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.202/2">
<num value="2">(2)</num>
<content>a commission paid to a licensed real estate broker under a written agreement between a seller or purchaser and the broker, including an additional commission for the property's appreciation, development, or sale after the interest in property is transferred to the purchaser;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.202/3">
<num value="3">(3)</num>
<chapeau>interest, a fee, a charge, or another type of payment to a lender under a loan secured by a mortgage on the property, including:</chapeau>
<subparagraph identifier="/us/tx/pr/t2/c5/scG/s5.202/A">
<num value="A">(A)</num>
<content>a fee payable for the lender's consent to an assumption of the loan or transfer of the property subject to the mortgage;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scG/s5.202/B">
<num value="B">(B)</num>
<content>a fee or charge payable for an estoppel letter or certificate;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scG/s5.202/C">
<num value="C">(C)</num>
<content>a shared appreciation interest or profit participation; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scG/s5.202/D">
<num value="D">(D)</num>
<content>other consideration payable in connection with the loan;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.202/4">
<num value="4">(4)</num>
<content>rent, reimbursement, a fee, a charge, or another type of payment to a lessor under a lease, including a fee for consent to an assignment, sublease, encumbrance, or transfer of a lease;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.202/5">
<num value="5">(5)</num>
<content>consideration paid to the holder of an option to purchase an interest in property, or to the holder of a right of first refusal or first offer to purchase an interest in property, for waiving, releasing, or not exercising the option or right when the property is transferred to another person;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.202/6">
<num value="6">(6)</num>
<content>a fee payable to or imposed by a governmental entity in connection with recording the transfer of the property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.202/7">
<num value="7">(7)</num>
<chapeau>dues, a fee, a charge, an assessment, a fine, a contribution, or another type of payment under a declaration or other covenant or under law, including a fee or charge payable for a change of ownership entered in the records of an association to which this subdivision applies or an estoppel letter or resale certificate issued under Section 207.003 by an association to which this subdivision applies or the person identified under Section 209.004(a)(6), provided that no portion of the fee or charge is required to be passed through to a third party designated or identifiable in the declaration or other covenant or law or in a document referenced in the declaration or other covenant or law, unless paid to:</chapeau>
<subparagraph identifier="/us/tx/pr/t2/c5/scG/s5.202/A">
<num value="A">(A)</num>
<content>an association as defined by Section 82.003 or 221.002 or the person or entity managing the association as provided by Section 82.116(a)(5) or 221.032(b)(11), as applicable;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scG/s5.202/B">
<num value="B">(B)</num>
<content>a property owners' association as defined by Section 202.001 or 209.002 or the person or entity described by Section 209.004(a)(6); or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scG/s5.202/C">
<num value="C">(C)</num>
<content>a property owners' association as defined by Section 202.001 that does not require an owner of property governed by the association to be a member of the association or the person or entity described by Section 209.004(a)(6);</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.202/8">
<num value="8">(8)</num>
<content>dues, a fee, a charge, an assessment, a fine, a contribution, or another type of payment for the transfer of a club membership related to the property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.202/9">
<num value="9">(9)</num>
<chapeau>dues, a fee, a charge, an assessment, a fine, a contribution, or another type of payment paid to an organization exempt from federal taxation under Section 501(c)(3) or 501(c)(4), Internal Revenue Code of 1986, only if the organization uses the payments to directly benefit the encumbered property by:</chapeau>
<subparagraph identifier="/us/tx/pr/t2/c5/scG/s5.202/A">
<num value="A">(A)</num>
<content>supporting or maintaining only the encumbered property;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scG/s5.202/B">
<num value="B">(B)</num>
<content>constructing or repairing improvements only to the encumbered property; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scG/s5.202/C">
<num value="C">(C)</num>
<content>providing activities or infrastructure to support quality of life, including cultural, educational, charitable, recreational, environmental, and conservation activities and infrastructure, that directly benefit the encumbered property; or</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.202/10">
<num value="10">(10)</num>
<content>a fee payable to or imposed by the Veterans' Land Board for consent to an assumption or transfer of a contract of sale and purchase.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scG/s5.202/c">
<num value="c">(c)</num>
<chapeau>The benefit described by Subsection (b)(9)(C) may collaterally benefit:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.202/1">
<num value="1">(1)</num>
<chapeau>a community composed of:</chapeau>
<subparagraph identifier="/us/tx/pr/t2/c5/scG/s5.202/A">
<num value="A">(A)</num>
<content>property that is adjacent to the encumbered property; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scG/s5.202/B">
<num value="B">(B)</num>
<content>property a boundary of which is not more than 1,000 yards from a boundary of the encumbered property; or</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.202/2">
<num value="2">(2)</num>
<chapeau>with respect to a payment to a school for educational activities, property not described by Subdivision (1) if the encumbered property is located within:</chapeau>
<subparagraph identifier="/us/tx/pr/t2/c5/scG/s5.202/A">
<num value="A">(A)</num>
<content>the school's assigned attendance zone; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scG/s5.202/B">
<num value="B">(B)</num>
<content>a county with a population of more than 650,000 that is adjacent to two counties, each of which has a population of more than 1.8 million.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scG/s5.202/d">
<num value="d">(d)</num>
<chapeau>Notwithstanding Subsection (c), an organization may provide a direct benefit under Subsection (b)(9) if:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.202/1">
<num value="1">(1)</num>
<content>the organization provides to the general public activities or infrastructure described by Subsection (b)(9)(C);</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.202/2">
<num value="2">(2)</num>
<content>the provision of activities or infrastructure substantially benefits the encumbered property; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.202/3">
<num value="3">(3)</num>
<chapeau>the governing body of the organization:</chapeau>
<subparagraph identifier="/us/tx/pr/t2/c5/scG/s5.202/A">
<num value="A">(A)</num>
<content>is controlled by owners of the encumbered property; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scG/s5.202/B">
<num value="B">(B)</num>
<content>approves payments for activities or infrastructure at least annually.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scG/s5.202/e">
<num value="e">(e)</num>
<content>An organization may provide activities and infrastructure described by Subsection (b)(9)(C) to another organization exempt from federal taxation under Section 501(c)(3) or 501(c)(4), Internal Revenue Code of 1986, at no charge for de minimis usage without violating the requirements of this section.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 211 (H.B. 8), Sec. 1, eff. June 17, 2011.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 812 (H.B. 755), Sec. 1, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scG/s5.203">
<num value="5.203">Sec. 5.203.</num>
<heading>NOTICE REQUIREMENTS FOR CONTINUATION OF EXISTING PRIVATE TRANSFER FEE OBLIGATIONS</heading>
<subsection identifier="/us/tx/pr/t2/c5/scG/s5.203/a">
<num value="a">(a)</num>
<content>A person who receives a private transfer fee under a private transfer fee obligation created before the effective date of this subchapter must, on or before January 31, 2012, file for record a "Notice of Private Transfer Fee Obligation" as provided by this section in the real property records of each county in which the property is located.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scG/s5.203/b">
<num value="b">(b)</num>
<content>Multiple payees of a single private transfer fee under a private transfer fee obligation must designate one payee as the payee of record for the fee.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scG/s5.203/c">
<num value="c">(c)</num>
<chapeau>A notice under Subsection (a) must:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.203/1">
<num value="1">(1)</num>
<content>be printed in at least 14-point boldface type;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.203/2">
<num value="2">(2)</num>
<content>state the amount of the private transfer fee and the method of determination, if applicable;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.203/3">
<num value="3">(3)</num>
<content>state the date or any circumstance under which the private transfer fee obligation expires, if any;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.203/4">
<num value="4">(4)</num>
<content>state the purpose for which the money from the private transfer fee obligation will be used;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.203/5">
<num value="5">(5)</num>
<content>notwithstanding Subsection (b), state the name of each payee and each payee's contact information;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.203/6">
<num value="6">(6)</num>
<content>state the name and address of the payee of record to whom the payment of the fee must be sent;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.203/7">
<num value="7">(7)</num>
<content>include the acknowledged signature of each payee or authorized representative of each payee; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.203/8">
<num value="8">(8)</num>
<content>state the legal description of the property subject to the private transfer fee obligation.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scG/s5.203/d">
<num value="d">(d)</num>
<chapeau>A person required to file a notice under this section shall:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.203/1">
<num value="1">(1)</num>
<content>refile the notice described by this section not earlier than the 30th day before the third anniversary of the original filing date described by Subsection (a) and within a similar 30-day period every third year thereafter; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.203/2">
<num value="2">(2)</num>
<content>amend the notice to reflect any change in the name or address of any payee included in the notice not later than the 30th day after the date the change occurs.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scG/s5.203/e">
<num value="e">(e)</num>
<chapeau>A person who amends a notice under Subsection (d)(2) must include:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.203/1">
<num value="1">(1)</num>
<content>the recording information of the original notice filed as required by this section; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.203/2">
<num value="2">(2)</num>
<content>the legal description of the property subject to the private transfer fee obligation.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scG/s5.203/f">
<num value="f">(f)</num>
<chapeau>If a person required to file a notice under this section fails to comply with this section:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.203/1">
<num value="1">(1)</num>
<content>payment of the private transfer fee may not be a requirement for the conveyance of an interest in the property to a purchaser;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.203/2">
<num value="2">(2)</num>
<content>the property is not subject to further obligation under the private transfer fee obligation; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.203/3">
<num value="3">(3)</num>
<content>the private transfer fee obligation is void.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 211 (H.B. 8), Sec. 1, eff. June 17, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scG/s5.204">
<num value="5.204">Sec. 5.204.</num>
<heading>ADDITIONAL COMPLIANCE REQUIREMENT: TIMELY ACCEPTANCE OF FEES PAID UNDER EXISTING PRIVATE TRANSFER FEE OBLIGATIONS</heading>
<subsection identifier="/us/tx/pr/t2/c5/scG/s5.204/a">
<num value="a">(a)</num>
<content>The payee of record on the date a private transfer fee is paid under a private transfer fee obligation subject to Section 5.203 must accept the payment on or before the 30th day after the date the payment is tendered to the payee.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scG/s5.204/b">
<num value="b">(b)</num>
<chapeau>If the payee of record fails to comply with Subsection (a):</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.204/1">
<num value="1">(1)</num>
<content>the payment must be returned to the remitter;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.204/2">
<num value="2">(2)</num>
<content>payment of the private transfer fee may not be a requirement for the conveyance of an interest in the property to a purchaser; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scG/s5.204/3">
<num value="3">(3)</num>
<content>the property is not subject to further obligation under the private transfer fee obligation.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 211 (H.B. 8), Sec. 1, eff. June 17, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scG/s5.205">
<num value="5.205">Sec. 5.205.</num>
<heading>DISCLOSURE OF EXISTING TRANSFER FEE OBLIGATION REQUIRED IN CONTRACT FOR SALE</heading>
<content>A seller of real property that may be subject to a private transfer fee obligation shall provide written notice to a potential purchaser stating that the obligation may be governed by this subchapter.</content>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 211 (H.B. 8), Sec. 1, eff. June 17, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scG/s5.206">
<num value="5.206">Sec. 5.206.</num>
<heading>WAIVER VOID</heading>
<content>A provision that purports to waive a purchaser's rights under this subchapter is void.</content>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 211 (H.B. 8), Sec. 1, eff. June 17, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scG/s5.207">
<num value="5.207">Sec. 5.207.</num>
<heading>INJUNCTIVE OR DECLARATORY RELIEF; PROVIDING PENALTIES</heading>
<subsection identifier="/us/tx/pr/t2/c5/scG/s5.207/a">
<num value="a">(a)</num>
<content>The attorney general may institute an action for injunctive or declaratory relief to restrain a violation of this subchapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scG/s5.207/b">
<num value="b">(b)</num>
<content>In addition to instituting an action for injunctive or declaratory relief under Subsection (a), the attorney general may institute an action for civil penalties against a payee for a violation of this chapter. Except as provided by Subsection (c), a civil penalty assessed under this section may not exceed an amount equal to two times the amount of the private transfer fee charged or collected by the payee in violation of this subchapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scG/s5.207/c">
<num value="c">(c)</num>
<content>If the court in which an action under Subsection (b) is pending finds that a payee violated this subchapter with a frequency that constitutes a pattern or practice, the court may assess a civil penalty not to exceed $250,000.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scG/s5.207/d">
<num value="d">(d)</num>
<content>The comptroller shall deposit to the credit of the general revenue fund all money collected under this section.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 211 (H.B. 8), Sec. 1, eff. June 17, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scG/s5.208">
<num value="5.208">Sec. 5.208.</num>
<heading>VENUE</heading>
<content>Notwithstanding any other law, an action brought under this subchapter, other than an action brought by the attorney general, must be brought in the county in which the real property is located.</content>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 1094 (H.B. 4170), Sec. 1, eff. September 1, 2025.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t2/c5/scH">
<num value="H">SUBCHAPTER H.</num>
<heading>PURCHASE OR ACQUISITION OF REAL PROPERTY BY CERTAIN FOREIGN INDIVIDUALS OR ENTITIES</heading>
<section identifier="/us/tx/pr/t2/c5/scH/s5.251">
<num value="5.251">Sec. 5.251.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this subchapter:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scH/s5.251/1">
<num value="1">(1)</num>
<chapeau>"Agricultural land" means land that is located in this state and that is suitable for:</chapeau>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.251/A">
<num value="A">(A)</num>
<content>use in production of plants and fruits grown for human or animal consumption, or plants grown for the production of fibers, floriculture, silviculture, viticulture, horticulture, or planting seed; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.251/B">
<num value="B">(B)</num>
<content>domestic or native farm or ranch animals kept for use or profit.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scH/s5.251/2">
<num value="2">(2)</num>
<content>"Company" means a sole proprietorship, organization, association, corporation, partnership, joint venture, limited partnership, limited liability partnership, or limited liability company, including a wholly owned subsidiary, majority-owned subsidiary, parent company, or affiliate of those entities or business associations, that exists to make a profit.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scH/s5.251/3">
<num value="3">(3)</num>
<chapeau>"Designated country" means:</chapeau>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.251/A">
<num value="A">(A)</num>
<content>a country identified by the United States Director of National Intelligence as a country that poses a risk to the national security of the United States in at least one of the three most recent Annual Threat Assessments of the U.S. Intelligence Community issued pursuant to Section 108B, National Security Act of 1947 (50 U.S.C. Section 3043b); or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.251/B">
<num value="B">(B)</num>
<content>a country designated by the governor under Section 5.254.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scH/s5.251/4">
<num value="4">(4)</num>
<content>"Domiciled" means having established a place as an individual's true, fixed, and permanent home and principal residence to which the individual intends to return whenever absent.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scH/s5.251/5">
<num value="5">(5)</num>
<content>"Organization" has the meaning assigned by Section 1.002, Business Organizations Code.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scH/s5.251/6">
<num value="6">(6)</num>
<chapeau>"Real property" includes:</chapeau>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.251/A">
<num value="A">(A)</num>
<content>agricultural land;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.251/B">
<num value="B">(B)</num>
<content>an improvement located on agricultural land;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.251/C">
<num value="C">(C)</num>
<content>commercial property;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.251/D">
<num value="D">(D)</num>
<content>industrial property;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.251/E">
<num value="E">(E)</num>
<content>groundwater;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.251/F">
<num value="F">(F)</num>
<content>residential property;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.251/G">
<num value="G">(G)</num>
<content>a mine or quarry;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.251/H">
<num value="H">(H)</num>
<content>a mineral in place;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.251/I">
<num value="I">(I)</num>
<content>standing timber; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.251/J">
<num value="J">(J)</num>
<content>water rights.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scH/s5.251/7">
<num value="7">(7)</num>
<chapeau>"Transnational criminal organization" means two or more persons:</chapeau>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.251/A">
<num value="A">(A)</num>
<content>who are citizens of or domiciled in a designated country;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.251/B">
<num value="B">(B)</num>
<content>with an identifiable leadership who operate internationally; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.251/C">
<num value="C">(C)</num>
<content>who continuously or regularly associate to engage in corruption, violence, or the commission of other criminal activities.</content>
</subparagraph>
</paragraph>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 956 (S.B. 17), Sec. 4, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scH/s5.252">
<num value="5.252">Sec. 5.252.</num>
<heading>EXCEPTIONS: UNITED STATES CITIZENS AND LAWFUL RESIDENTS; CERTAIN ENTITIES OWNED OR CONTROLLED BY UNITED STATES CITIZENS OR LAWFUL RESIDENTS; LEASEHOLD</heading>
<chapeau>This subchapter does not apply to:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scH/s5.252/1">
<num value="1">(1)</num>
<content>an individual who is a citizen or lawful permanent resident of the United States;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scH/s5.252/2">
<num value="2">(2)</num>
<chapeau>a company or organization that is owned by or under the control of:</chapeau>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.252/A">
<num value="A">(A)</num>
<content>one or more individuals described by Subdivision (1); and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.252/B">
<num value="B">(B)</num>
<content>no individual described by Section 5.253; or</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scH/s5.252/3">
<num value="3">(3)</num>
<content>a leasehold interest in land or improvements constructed on a leasehold if the duration of the interest is less than one year.</content>
</paragraph>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 956 (S.B. 17), Sec. 4, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scH/s5.253">
<num value="5.253">Sec. 5.253.</num>
<heading>PROHIBITION ON PURCHASE OR ACQUISITION OF REAL PROPERTY</heading>
<chapeau>Notwithstanding any other law, the following may not purchase or otherwise acquire an interest in real property in this state:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scH/s5.253/1">
<num value="1">(1)</num>
<content>a governmental entity of a designated country;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scH/s5.253/2">
<num value="2">(2)</num>
<chapeau>a company or organization that is:</chapeau>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.253/A">
<num value="A">(A)</num>
<content>headquartered in a designated country;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.253/B">
<num value="B">(B)</num>
<content>directly or indirectly held or controlled by the government of a designated country;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.253/C">
<num value="C">(C)</num>
<content>owned by or the majority of stock or other ownership interest of which is held or controlled by individuals described by Subdivision (4); or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.253/D">
<num value="D">(D)</num>
<content>designated by the governor under Section 5.254;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scH/s5.253/3">
<num value="3">(3)</num>
<content>a company or organization that is owned by or the majority of stock or other ownership interest of which is held or controlled by a company or organization described by Subdivision (2); or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scH/s5.253/4">
<num value="4">(4)</num>
<chapeau>an individual who:</chapeau>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.253/A">
<num value="A">(A)</num>
<content>is domiciled in a designated country, except that an individual who is lawfully present and residing in the United States at the time the individual purchases or acquires the interest may purchase or acquire an interest in a residential property that is intended for use as an individual's residence homestead, as defined by Section 11.13(j), Tax Code;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.253/B">
<num value="B">(B)</num>
<content>is a citizen of a designated country who is domiciled outside of the United States in a country:</content>
</subparagraph>
</paragraph>
<subsection identifier="/us/tx/pr/t2/c5/scH/s5.253/i">
<num value="i">(i)</num>
<chapeau>other than a designated country; and</chapeau>
<clause identifier="/us/tx/pr/t2/c5/scH/s5.253/ii">
<num value="ii">(ii)</num>
<content>for which the individual has not completed the naturalization process for becoming a citizen of that country;</content>
</clause>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.253/C">
<num value="C">(C)</num>
<content>is a citizen of a designated country who is unlawfully present in the United States;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.253/D">
<num value="D">(D)</num>
<content>is:</content>
</subparagraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scH/s5.253/i">
<num value="i">(i)</num>
<chapeau>a citizen of a country other than the United States; and</chapeau>
<clause identifier="/us/tx/pr/t2/c5/scH/s5.253/ii">
<num value="ii">(ii)</num>
<content>acting as an agent or on behalf of a designated country; or</content>
</clause>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.253/E">
<num value="E">(E)</num>
<content>is a member of the ruling political party or any subdivision of the ruling political party in a designated country.</content>
</subparagraph>
</subsection>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 956 (S.B. 17), Sec. 4, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scH/s5.254">
<num value="5.254">Sec. 5.254.</num>
<heading>DESIGNATION OF COUNTRY OR ENTITY AS SUBJECT TO PROHIBITION ON PURCHASE OR ACQUISITION OF REAL PROPERTY</heading>
<subsection identifier="/us/tx/pr/t2/c5/scH/s5.254/a">
<num value="a">(a)</num>
<chapeau>The governor, after consultation with the public safety director of the Department of Public Safety, may, for purposes of Section 5.253:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scH/s5.254/1">
<num value="1">(1)</num>
<content>determine whether the purchase or acquisition of an interest in real property in this state by an individual or entity poses a risk to the national security of the public; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scH/s5.254/2">
<num value="2">(2)</num>
<chapeau>based on a determination made under Subdivision (1):</chapeau>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.254/A">
<num value="A">(A)</num>
<content>designate a country or a transnational criminal organization or other entity as subject to this subchapter; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.254/B">
<num value="B">(B)</num>
<content>remove a designation made under Paragraph (A).</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scH/s5.254/b">
<num value="b">(b)</num>
<content>The governor shall consult the Homeland Security Council established under Subchapter B, Chapter 421, Government Code, for purposes of making or removing a designation under this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scH/s5.254/c">
<num value="c">(c)</num>
<content>The designation or removal of the designation of a country or entity under this section applies only to the purchase or acquisition of an interest in real property that occurs on or after the date the governor designates or removes the designation of the country or entity.</content>
</subsection>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 956 (S.B. 17), Sec. 4, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scH/s5.255">
<num value="5.255">Sec. 5.255.</num>
<heading>INVESTIGATION AND ENFORCEMENT BY ATTORNEY GENERAL; LAW ENFORCEMENT REFERRAL</heading>
<subsection identifier="/us/tx/pr/t2/c5/scH/s5.255/a">
<num value="a">(a)</num>
<content>The attorney general shall establish procedures to examine a purchase or acquisition of an interest in real property and determine whether an investigation of a possible violation of this subchapter is warranted.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scH/s5.255/b">
<num value="b">(b)</num>
<content>If the attorney general determines that an investigation of a purchase or acquisition of an interest in real property is warranted under this section, the attorney general shall investigate the purchase or acquisition of an interest in real property and determine whether a violation of this subchapter occurred.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scH/s5.255/c">
<num value="c">(c)</num>
<chapeau>If the attorney general determines that a violation of this subchapter occurred, the attorney general:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scH/s5.255/1">
<num value="1">(1)</num>
<content>may bring an in rem action against real property to enforce this subchapter in a district court in the county where all or part of the real property that is the subject of the violation is located; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scH/s5.255/2">
<num value="2">(2)</num>
<content>may refer the matter to the appropriate local, state, or federal law enforcement agency.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scH/s5.255/d">
<num value="d">(d)</num>
<content>The attorney general shall record notice of an action brought under Subsection (c) in the real property records of each county where any part of the real property subject to the action is located.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scH/s5.255/e">
<num value="e">(e)</num>
<content>Except for an acquisition of a leasehold interest, a purchase or acquisition of an interest in real property in violation of Section 5.253 is not void because of the violation, and the validity or enforceability by any person of a purchase contract for or the conveyance of an interest in the real property is not otherwise affected by the violation.</content>
</subsection>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 956 (S.B. 17), Sec. 4, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scH/s5.256">
<num value="5.256">Sec. 5.256.</num>
<heading>ATTORNEY GENERAL INVESTIGATION AND DISCOVERY; SECRETARY OF STATE INTERROGATORIES AND RECORDS</heading>
<subsection identifier="/us/tx/pr/t2/c5/scH/s5.256/a">
<num value="a">(a)</num>
<chapeau>The attorney general may conduct discovery to investigate a potential action under Section 5.255 or in an action brought under Section 5.255, including by:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scH/s5.256/1">
<num value="1">(1)</num>
<content>petitioning for an order authorizing the taking of a deposition under Rule 202, Texas Rules of Civil Procedure; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scH/s5.256/2">
<num value="2">(2)</num>
<chapeau>if the attorney general has reason to believe that a person may be in possession, custody, or control of any documentary material or other evidence or may have any information relevant to an investigation of a suspected violation of Section 5.253, issuing in writing and serving on the person a civil investigative demand requiring the person to:</chapeau>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.256/A">
<num value="A">(A)</num>
<content>produce any of the documentary material for inspection and copying;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.256/B">
<num value="B">(B)</num>
<content>answer in writing any written interrogatories;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.256/C">
<num value="C">(C)</num>
<content>give oral testimony; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.256/D">
<num value="D">(D)</num>
<content>provide any combination of civil investigative demands under Paragraph (A), (B), or (C).</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scH/s5.256/b">
<num value="b">(b)</num>
<chapeau>The secretary of state shall on request by the attorney general:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scH/s5.256/1">
<num value="1">(1)</num>
<content>serve interrogatories on an individual or entity as necessary to determine the ownership or control of an organization that is the subject of an action by the attorney general under Section 5.255; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scH/s5.256/2">
<num value="2">(2)</num>
<content>provide to the attorney general all records held by the secretary relating to the ownership or control of an organization that is the subject of an action by the attorney general under Section 5.255.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 956 (S.B. 17), Sec. 4, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scH/s5.257">
<num value="5.257">Sec. 5.257.</num>
<heading>DIVESTITURE; APPOINTMENT OF RECEIVER; DISTRIBUTION OF SALE PROCEEDS</heading>
<subsection identifier="/us/tx/pr/t2/c5/scH/s5.257/a">
<num value="a">(a)</num>
<chapeau>If the district court finds that the real property subject to an action brought under Section 5.255 was purchased or an interest in the real property was otherwise acquired in violation of Section 5.253, the court shall:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scH/s5.257/1">
<num value="1">(1)</num>
<chapeau>enter an order that:</chapeau>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.257/A">
<num value="A">(A)</num>
<content>states the court's finding;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.257/B">
<num value="B">(B)</num>
<content>orders the divestment of the individual's or entity's interest in the real property; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t2/c5/scH/s5.257/C">
<num value="C">(C)</num>
<content>appoints a receiver to:</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scH/s5.257/i">
<num value="i">(i)</num>
<chapeau>divest the individual's or entity's interest in the real property through sale, termination of a leasehold, or other disposition of the interest; and</chapeau>
<clause identifier="/us/tx/pr/t2/c5/scH/s5.257/ii">
<num value="ii">(ii)</num>
<content>manage and control the real property pending the sale or other disposition of the interest in the real property; and</content>
</clause>
<paragraph identifier="/us/tx/pr/t2/c5/scH/s5.257/2">
<num value="2">(2)</num>
<content>refer the matter to the appropriate prosecuting attorney for criminal prosecution of any appropriate criminal offense in connection with the transaction.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scH/s5.257/b">
<num value="b">(b)</num>
<content>On appointment and qualification, a receiver appointed under this section has the powers and duties of a receiver under Chapter 64, Civil Practice and Remedies Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scH/s5.257/c">
<num value="c">(c)</num>
<content>Proceeds from the sale or other disposition of an interest in real property under an order described by Subsection (a) shall be applied first to satisfy any existing liens on the property and then to pay the reasonable costs incurred by the state in enforcing this subchapter. The remaining proceeds shall be remitted to the individual or entity that purchased or otherwise acquired the interest in violation of this subchapter.</content>
</subsection>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 956 (S.B. 17), Sec. 4, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scH/s5.258">
<num value="5.258">Sec. 5.258.</num>
<heading>OFFENSE; PENALTY</heading>
<subsection identifier="/us/tx/pr/t2/c5/scH/s5.258/a">
<num value="a">(a)</num>
<chapeau>A person commits an offense if the person:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scH/s5.258/1">
<num value="1">(1)</num>
<content>is an individual described by Section 5.253(4); and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scH/s5.258/2">
<num value="2">(2)</num>
<content>intentionally or knowingly purchases or otherwise acquires an interest in real property in this state in violation of this subchapter.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scH/s5.258/b">
<num value="b">(b)</num>
<content>An offense under Subsection (a) is a state jail felony.</content>
</subsection>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 956 (S.B. 17), Sec. 4, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t2/c5/scH/s5.259">
<num value="5.259">Sec. 5.259.</num>
<heading>CIVIL PENALTY</heading>
<subsection identifier="/us/tx/pr/t2/c5/scH/s5.259/a">
<num value="a">(a)</num>
<content>The attorney general may bring an action in the name of the state against a company or entity that violates this subchapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t2/c5/scH/s5.259/b">
<num value="b">(b)</num>
<chapeau>A company or entity that a court determines in an action brought under this section to have violated this subchapter is liable to the state for a civil penalty equal to the greater of:</chapeau>
<paragraph identifier="/us/tx/pr/t2/c5/scH/s5.259/1">
<num value="1">(1)</num>
<content>$250,000; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t2/c5/scH/s5.259/2">
<num value="2">(2)</num>
<content>50 percent of the market value of the interest in real property that is the subject of the violation.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 956 (S.B. 17), Sec. 4, eff. September 1, 2025.</sourceCredit>
</section>
</subchapter>
</chapter>
<num value="3">TITLE 3.</num>
<heading>PUBLIC RECORDS</heading>
<chapter identifier="/us/tx/pr/t3/c11">
<num value="11">CHAPTER 11.</num>
<heading>PROVISIONS GENERALLY APPLICABLE TO PUBLIC RECORDS</heading>
<section identifier="/us/tx/pr/t3/c11/s11.001">
<num value="11.001">Sec. 11.001.</num>
<heading>PLACE OF RECORDING</heading>
<subsection identifier="/us/tx/pr/t3/c11/s11.001/a">
<num value="a">(a)</num>
<content>To be effectively recorded, an instrument relating to real property must be eligible for recording and must be recorded in the county in which a part of the property is located. However, if such an instrument grants a security interest by a utility as defined in Section 261.001, Business & Commerce Code, the instrument may be recorded as required by Sections 261.004 and 261.006 of that code, and if such instrument is so recorded, the lien and the secured interest created by such instrument shall be deemed perfected for all purposes.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c11/s11.001/b">
<num value="b">(b)</num>
<chapeau>If an instrument has been recorded in a proper county, the subsequent creation of a new county containing property conveyed or encumbered by the instrument does not affect the recording's validity or effect as notice. The county court of the new county shall at its own expense:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c11/s11.001/1">
<num value="1">(1)</num>
<content>obtain a certified transcript of the record of all instruments conveying or encumbering property in the new county;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c11/s11.001/2">
<num value="2">(2)</num>
<content>deposit the transcript for public inspection in the recorder's office of the new county; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c11/s11.001/3">
<num value="3">(3)</num>
<content>make an index of the transcript.</content>
</paragraph>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3486, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 999, Sec. 1, eff. Aug. 28, 1989.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.32, eff. April 1, 2009.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c11/s11.002">
<num value="11.002">Sec. 11.002.</num>
<heading>ENGLISH LANGUAGE</heading>
<subsection identifier="/us/tx/pr/t3/c11/s11.002/a">
<num value="a">(a)</num>
<content>An instrument relating to real or personal property may not be recorded unless it is in English or complies with this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c11/s11.002/b">
<num value="b">(b)</num>
<chapeau>An authenticated instrument not in English that was executed before August 22, 1897, may be recorded and operate as constructive notice from the date of filing if:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c11/s11.002/1">
<num value="1">(1)</num>
<content>a correct English translation is recorded with the original instrument; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c11/s11.002/2">
<num value="2">(2)</num>
<content>the accuracy of the translation is sworn to before an officer authorized to administer oaths.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c11/s11.002/c">
<num value="c">(c)</num>
<chapeau>An instrument acknowledged outside the United States or its territories in accordance with Section 121.001(c)(3), Civil Practice and Remedies Code, that contains a certificate, stamp, or seal of a notary public or other official before whom the acknowledgment was taken or an apostille relating to the acknowledgment, any portion of which is not in English, may be recorded and operate as constructive notice from the date of filing if:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c11/s11.002/1">
<num value="1">(1)</num>
<content>a correct English translation of any non-English portion of the certificate, stamp, seal, or apostille is recorded with the original instrument;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c11/s11.002/2">
<num value="2">(2)</num>
<content>the accuracy of the translation is sworn to before an officer authorized to administer oaths; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c11/s11.002/3">
<num value="3">(3)</num>
<content>any apostille relating to the acknowledgment complies with the Hague Convention dated October 5, 1961, titled Convention Abolishing the Requirement of Legalisation for Foreign Public Documents.</content>
</paragraph>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3486, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1987, 70th Leg., ch. 891, Sec. 2, eff. Sept. 1, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c11/s11.003">
<num value="11.003">Sec. 11.003.</num>
<heading>GRANTEE'S ADDRESS</heading>
<subsection identifier="/us/tx/pr/t3/c11/s11.003/a">
<num value="a">(a)</num>
<chapeau>An instrument executed after December 31, 1981, conveying an interest in real property may not be recorded unless:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c11/s11.003/1">
<num value="1">(1)</num>
<content>a mailing address of each grantee appears in the instrument or in a separate writing signed by the grantor or grantee and attached to the instrument; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c11/s11.003/2">
<num value="2">(2)</num>
<content>a penalty filing fee equal to the greater of $25 or twice the statutory recording fee for the instrument is paid.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c11/s11.003/b">
<num value="b">(b)</num>
<content>The validity of a conveyance as between the parties is not affected by a failure to include an address of each grantee in the instrument or an attached writing.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c11/s11.003/c">
<num value="c">(c)</num>
<content>Payment of a filing fee and acceptance of the instrument by the county clerk for recording creates a conclusive presumption that the requirements of this section have been met.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3487, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c11/s11.004">
<num value="11.004">Sec. 11.004.</num>
<heading>DUTY OF RECORDER</heading>
<subsection identifier="/us/tx/pr/t3/c11/s11.004/a">
<num value="a">(a)</num>
<chapeau>A county clerk shall:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c11/s11.004/1">
<num value="1">(1)</num>
<content>correctly record, as required by law, within a reasonable time after delivery, any instrument authorized or required to be recorded in that clerk's office that is proved, acknowledged, or sworn to according to law;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c11/s11.004/2">
<num value="2">(2)</num>
<content>give a receipt, as required by law, for an instrument delivered for recording;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c11/s11.004/3">
<num value="3">(3)</num>
<content>record instruments relating to the same property in the order the instruments are filed; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c11/s11.004/4">
<num value="4">(4)</num>
<content>provide and keep in the clerk's office the indexes required by law.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c11/s11.004/b">
<num value="b">(b)</num>
<content>A county clerk who violates a provision of this section and the sureties on the clerk's bond are liable for damages and, on motion in district court and after three days' notice to the clerk, for a civil penalty of not more than $500, half of which is payable to the county and half to the person who files the motion.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3487, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 162, Sec. 1, eff. Sept. 1, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c11/s11.0041">
<num value="11.0041">Sec. 11.0041.</num>
<heading>REVIEW OF CERTAIN INSTRUMENTS IN CERTAIN COUNTIES</heading>
<subsection identifier="/us/tx/pr/t3/c11/s11.0041/a">
<num value="a">(a)</num>
<chapeau>This section applies only to the county clerk of a county:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c11/s11.0041/1">
<num value="1">(1)</num>
<chapeau>that:</chapeau>
<subparagraph identifier="/us/tx/pr/t3/c11/s11.0041/A">
<num value="A">(A)</num>
<content>is located on the international border; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t3/c11/s11.0041/B">
<num value="B">(B)</num>
<content>has a population of less than 15,000;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c11/s11.0041/2">
<num value="2">(2)</num>
<content>in which a colonia self-help center established under Section 2306.582, Government Code, is located; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c11/s11.0041/3">
<num value="3">(3)</num>
<content>that is served by a colonia self-help center described by Subdivision (2) in another county.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c11/s11.0041/b">
<num value="b">(b)</num>
<chapeau>Before accepting an instrument conveying real property for filing, the county clerk may send the instrument to the county attorney for review under this section. Not later than five business days after the date the county attorney receives an instrument under this subsection, the county attorney shall:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c11/s11.0041/1">
<num value="1">(1)</num>
<content>review the instrument to determine whether the platting requirements prescribed by Sections 232.023, 232.025, and 232.031, Local Government Code, have been satisfied; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c11/s11.0041/2">
<num value="2">(2)</num>
<content>return the instrument to the county clerk with a statement of the county attorney's determination under Subdivision (1).</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c11/s11.0041/c">
<num value="c">(c)</num>
<chapeau>Notwithstanding Section 11.004(a), the county clerk shall immediately notify the party that presented the instrument for recording that:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c11/s11.0041/1">
<num value="1">(1)</num>
<content>the clerk is referring the instrument to the county attorney for review;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c11/s11.0041/2">
<num value="2">(2)</num>
<content>the instrument will not be immediately recorded; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c11/s11.0041/3">
<num value="3">(3)</num>
<content>the clerk is not required to file an instrument the county attorney determines the clerk is not required to file.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2009, 81st Leg., R.S., Ch. 1176 (H.B. 3479), Sec. 1, eff. September 1, 2009.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c11/s11.005">
<num value="11.005">Sec. 11.005.</num>
<heading>JUDGMENT PROVING AN INSTRUMENT OR CORRECTING A CERTIFICATE</heading>
<subsection identifier="/us/tx/pr/t3/c11/s11.005/a">
<num value="a">(a)</num>
<content>A person interested under an instrument that may be proved for record may bring an action in district court for a judgment proving the instrument.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c11/s11.005/b">
<num value="b">(b)</num>
<content>A person interested under a defectively certified instrument for which acknowledgement or proof of execution has been properly made may bring an action in district court for a judgment correcting the certificate.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c11/s11.005/c">
<num value="c">(c)</num>
<content>If a certified copy of a judgment in a suit under this section that shows proof of an instrument is attached to the instrument, the instrument may be recorded with the same effect as if it were acknowledged.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3488, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c11/s11.006">
<num value="11.006">Sec. 11.006.</num>
<heading>INSTRUMENT AFFECTING TITLE TO LAND IN ARCHER COUNTY</heading>
<content>An instrument that in any manner affects title to land in Archer County, Texas, but was recorded in Jack County on or after August 10, 1866, but no later than August 10, 1870, and was made under the hand and seal of the county clerk of Shackelford County, is admissible in evidence in any suit in which secondary evidence is admissible.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3488, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c11/s11.007">
<num value="11.007">Sec. 11.007.</num>
<heading>EFFECT OF CITATION TO REAL PROPERTY RECORDS</heading>
<content>A reference in an instrument to the volume and page number, film code number, or county clerk file number of the "real property records" (or other words of similar import) for a particular county is equivalent to a reference to the deed records, deed of trust records, or other specific records, for the purpose of providing effective notice to all persons of the existence of the referenced instrument.</content>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 161, Sec. 1, eff. May 25, 1989. Amended by Acts 1991, 72nd Leg., ch. 205, Sec. 1, eff. Aug. 26, 1991.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c11/s11.008">
<num value="11.008">Sec. 11.008.</num>
<heading>PERSONAL INFORMATION IN REAL PROPERTY RECORDS</heading>
<subsection identifier="/us/tx/pr/t3/c11/s11.008/a">
<num value="a">(a)</num>
<content>In this section, "instrument" means a deed, deed of trust, or any other record recorded by a county clerk related to real property, including a mineral lease, a mechanic's lien, and the release of a mechanic's lien.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c11/s11.008/b">
<num value="b">(b)</num>
<content>An instrument submitted for recording is not required to contain an individual's social security number, and the social security number of an individual is not obtained or maintained by the clerk under this section. The preparer of a document may not include an individual's social security number in a document that is presented for recording in the office of the county clerk.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c11/s11.008/c">
<num value="c">(c)</num>
<content>Notwithstanding Section 191.007(c), Local Government Code, an instrument transferring an interest in real property to or from an individual must include a notice that appears on the top of the first page of the instrument in 12-point boldfaced type or 12-point uppercase letters and reads substantially as follows:</content>
<continuation>NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER.</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t3/c11/s11.008/d">
<num value="d">(d)</num>
<content>The validity of an instrument as between the parties to the instrument and the notice provided by the instrument are not affected by a party's failure to include the notice required under Subsection (c).</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c11/s11.008/e">
<num value="e">(e)</num>
<content>The county clerk may not under any circumstance reject an instrument presented for recording solely because the instrument fails to comply with this section. Other than the duty to redact an individual's social security number as required by Section 552.147, Government Code, the county clerk has no duty to ensure that an instrument presented for recording does not contain an individual's social security number.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c11/s11.008/f">
<num value="f">(f)</num>
<chapeau>The county clerk shall post a notice in the county clerk's office stating that instruments recorded in the real property or official public records or the equivalent of the real property or official public records of the county:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c11/s11.008/1">
<num value="1">(1)</num>
<content>are not required to contain a social security number or driver's license number; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c11/s11.008/2">
<num value="2">(2)</num>
<content>are public records available for review by the public.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c11/s11.008/g">
<num value="g">(g)</num>
<content>All instruments described by this section are subject to inspection by the public. The county clerk is not criminally or civilly liable for disclosing an instrument or information in an instrument in compliance with the public information law (Chapter 552, Government Code) or another law.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c11/s11.008/h">
<num value="h">(h)</num>
<content>Unless this section is cited in a law enacted after September 1, 2003, this section is the exclusive law governing the confidentiality of personal information contained in the real property or official public records or the equivalent of the real property or official public records of a county.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c11/s11.008/i">
<num value="i">(i)</num>
<content>To the extent that federal law conflicts with this section, an instrument must contain the information required by and must be filed in a manner that complies with federal law.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c11/s11.008/j">
<num value="j">(j)</num>
<content>On receipt of a written request from a peace officer as described by Article 2A.001, Code of Criminal Procedure, a person having power or authority under Article 2A.002, Code of Criminal Procedure, a federal judge, including a federal bankruptcy judge, a marshal of the United States Marshals Service, a United States attorney, a state judge as defined by Section 572.002, Government Code, or a family member as defined by Section 31.006, Finance Code, of a federal judge, marshal, attorney, or state judge, the county clerk shall omit or redact from an instrument described by this section that is available in an online database made public by the county clerk, or by a provider with which the county commissioners court contracts to provide the online database, social security number, driver's license number, and residence address of the peace officer, person having power or authority under Article 2A.002, Code of Criminal Procedure, federal judge, marshal, attorney, state judge, or family member of the federal judge, marshal, attorney, or state judge.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c11/s11.008/k">
<num value="k">(k)</num>
<chapeau>A county clerk or provider with which the county commissioners court contracts who omits or redacts information from an instrument in accordance with Subsection (j) shall display on the Internet website of the online database in which the instrument is available to the public a clear and conspicuous statement that:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c11/s11.008/1">
<num value="1">(1)</num>
<content>in accordance with state law, information has been redacted from certain instruments in the database; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c11/s11.008/2">
<num value="2">(2)</num>
<content>the online database does not constitute the official repository of real property records and may not reflect the complete or unaltered contents of those records as maintained in the official real property records.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 715, Sec. 1, eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 960, Sec. 1, eff. Sept. 1, 2003.
Amended by:
Acts 2005, 79th Leg., Ch. 45 (S.B. 461), Sec. 1, eff. May 13, 2005.
Acts 2007, 80th Leg., R.S., Ch. 3 (H.B. 2061), Sec. 2, eff. March 28, 2007.
Acts 2017, 85th Leg., R.S., Ch. 190 (S.B. 42), Sec. 25, eff. September 1, 2017.
Acts 2019, 86th Leg., R.S., Ch. 415 (S.B. 73), Sec. 1, eff. September 1, 2019.
Acts 2019, 86th Leg., R.S., Ch. 518 (S.B. 489), Sec. 5, eff. September 1, 2019.
Acts 2021, 87th Leg., R.S., Ch. 383 (S.B. 1134), Sec. 13, eff. September 1, 2021.
Acts 2025, 89th Leg., R.S., Ch. 1100 (H.B. 4350), Sec. 1, eff. June 20, 2025.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t3/c12">
<num value="12">CHAPTER 12.</num>
<heading>RECORDING OF INSTRUMENTS</heading>
<section identifier="/us/tx/pr/t3/c12/s12.001">
<num value="12.001">Sec. 12.001.</num>
<heading>INSTRUMENTS CONCERNING PROPERTY</heading>
<subsection identifier="/us/tx/pr/t3/c12/s12.001/a">
<num value="a">(a)</num>
<content>An instrument concerning real or personal property may be recorded if it has been acknowledged, sworn to with a proper jurat, or proved according to law.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.001/b">
<num value="b">(b)</num>
<chapeau>An instrument conveying real property may not be recorded unless:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.001/1">
<num value="1">(1)</num>
<content>it is signed and acknowledged or sworn to by the grantor in the presence of two or more credible subscribing witnesses or acknowledged or sworn to before and certified by an officer authorized to take acknowledgements or oaths, as applicable; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.001/2">
<num value="2">(2)</num>
<content>any individual presenting the instrument in person for recording presents a photo identification to the county clerk as required by Section 191.010, Local Government Code.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.001/c">
<num value="c">(c)</num>
<content>This section does not require the acknowledgement or swearing or prohibit the recording of a financing statement, a security agreement filed as a financing statement, or a continuation statement filed for record under the Business & Commerce Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.001/d">
<num value="d">(d)</num>
<content>The failure of a notary public to attach an official seal to an acknowledgment, a jurat, or other proof taken outside this state but inside the United States or its territories renders the acknowledgment, jurat, or other proof invalid only if the jurisdiction in which the acknowledgment, jurat, or other proof is taken requires the notary public to attach the seal.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3489, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 162, Sec. 2, eff. Sept. 1, 1989; Acts 1995, 74th Leg., ch. 603, Sec. 2, eff. June 14, 1995.
Amended by:
Acts 2025, 89th Leg., 2nd C.S., Ch. 16 (S.B. 16), Sec. 11, eff. December 4, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c12/s12.0011">
<num value="12.0011">Sec. 12.0011.</num>
<heading>INSTRUMENTS CONCERNING PROPERTY: ORIGINAL SIGNATURE REQUIRED FOR CERTAIN INSTRUMENTS</heading>
<subsection identifier="/us/tx/pr/t3/c12/s12.0011/a">
<num value="a">(a)</num>
<content>For the purposes of this section, "paper document" means a document received by a county clerk in a form that is not electronic.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.0011/b">
<num value="b">(b)</num>
<chapeau>A paper document concerning real or personal property may not be recorded or serve as notice of the paper document unless:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.0011/1">
<num value="1">(1)</num>
<content>the paper document contains an original signature or signatures that are acknowledged, sworn to with a jurat, or proved according to law;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.0011/2">
<num value="2">(2)</num>
<content>the paper document is attached as an exhibit to a paper affidavit or other document that has an original signature or signatures that are acknowledged, sworn to with a jurat, or proved according to law; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.0011/3">
<num value="3">(3)</num>
<content>the paper document is a tangible copy of an electronic record that has been declared to be a true and correct copy of the electronic record as provided by Section 12.0013 by a notary public or other officer who may take an acknowledgment or proof of a written instrument under Section 121.001, Civil Practice and Remedies Code.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.0011/c">
<num value="c">(c)</num>
<content>An original signature may not be required for an electronic instrument or other document that complies with the requirements of Chapter 15 of this code, Chapter 195, Local Government Code, Chapter 322, Business & Commerce Code, or other applicable law.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.0011/d">
<num value="d">(d)</num>
<content>This section does not apply to a child support lien notice or release of child support lien issued by the Title IV-D agency under Chapter 157, Family Code. For purposes of this subsection, "Title IV-D agency" has the meaning assigned by Section 101.033, Family Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.0011/e">
<num value="e">(e)</num>
<content>This section does not apply to a notice of sale under Section 51.065, Natural Resources Code, or a land award under Section 51.066, Natural Resources Code.</content>
</subsection>
<sourceCredit>Added by Acts 2007, 80th Leg., R.S., Ch. 213 (H.B. 732), Sec. 1, eff. September 1, 2007.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 20.003, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 767 (S.B. 865), Sec. 33, eff. June 19, 2009.
Acts 2017, 85th Leg., R.S., Ch. 370 (H.B. 3423), Sec. 4, eff. September 1, 2017.
Acts 2019, 86th Leg., R.S., Ch. 678 (S.B. 2128), Sec. 2, eff. September 1, 2019.
Acts 2023, 88th Leg., R.S., Ch. 152 (S.B. 870), Sec. 23, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c12/s12.0012">
<num value="12.0012">Sec. 12.0012.</num>
<heading>INSTRUMENTS CONCERNING REAL PROPERTY SUBJECT TO A FORECLOSURE SALE</heading>
<subsection identifier="/us/tx/pr/t3/c12/s12.0012/a">
<num value="a">(a)</num>
<chapeau>Notwithstanding Section 12.0011(b), the following documents received by the county clerk in the manner provided by Subsection (b) shall be recorded by the clerk and serve as notice of the matter document:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.0012/1">
<num value="1">(1)</num>
<content>an instrument appointing or authorizing a trustee or substitute trustee to exercise the power of sale in a security instrument;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.0012/2">
<num value="2">(2)</num>
<content>a notice of sale pursuant to which the sale under a power of sale occurred;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.0012/3">
<num value="3">(3)</num>
<content>a notice of default on which the sale evidenced by a deed conveying title from a trustee or substitute trustee to a purchaser occurred;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.0012/4">
<num value="4">(4)</num>
<content>documentation from the United States Department of Defense indicating that a debtor was not on active duty military service on the date of a foreclosure sale;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.0012/5">
<num value="5">(5)</num>
<content>a statement of facts regarding a foreclosure sale prepared by an attorney representing the trustee, substitute trustee, or mortgage servicer; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.0012/6">
<num value="6">(6)</num>
<content>proof of service of the mailing of any notice related to a foreclosure sale.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.0012/b">
<num value="b">(b)</num>
<chapeau>A document described by Subsection (a) shall be accepted for recording pursuant to Subsection (a) if it is attached as an exhibit to:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.0012/1">
<num value="1">(1)</num>
<content>a deed that conveys title from a trustee or substitute trustee to a purchaser at a foreclosure sale and that meets the requirements for recording under Section 12.0011(b); or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.0012/2">
<num value="2">(2)</num>
<content>an affidavit of a trustee or substitute trustee that meets the requirements for recording under Section 12.0011(b) and relates to a foreclosure sale.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.0012/c">
<num value="c">(c)</num>
<content>This section does not prevent the recording of documents in any other manner allowed by law.</content>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 653 (H.B. 2063), Sec. 1, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c12/s12.0013">
<num value="12.0013">Sec. 12.0013.</num>
<heading>RECORDATION OF PAPER OR TANGIBLE COPY OF ELECTRONIC RECORD</heading>
<subsection identifier="/us/tx/pr/t3/c12/s12.0013/a">
<num value="a">(a)</num>
<chapeau>In this section:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.0013/1">
<num value="1">(1)</num>
<content>"Document" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.0013/2">
<num value="2">(2)</num>
<content>"Electronic," "electronic record," and "electronic signature" have the meanings assigned by Section 322.002, Business & Commerce Code.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.0013/b">
<num value="b">(b)</num>
<chapeau>A county clerk shall record a paper or tangible copy of an electronic record that is otherwise eligible under state law to be recorded in the real property records if the paper or tangible copy of the electronic record:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.0013/1">
<num value="1">(1)</num>
<content>contains an image of an electronic signature or signatures that are acknowledged, sworn to with a jurat, or proved according to law; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.0013/2">
<num value="2">(2)</num>
<content>has been declared by a notary public or other officer who may take an acknowledgment or proof under Section 121.001, Civil Practice and Remedies Code, to be a true and correct copy of the electronic record as provided by Subsection (d).</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.0013/c">
<num value="c">(c)</num>
<chapeau>A document that is a paper or tangible copy of an electronic record and is printed and declared to be a true and correct copy as provided by Subsection (d) satisfies any requirement of law that, as a condition for recording, the document:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.0013/1">
<num value="1">(1)</num>
<content>be an original or be in writing;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.0013/2">
<num value="2">(2)</num>
<content>be signed or contain an original signature, if the document contains an image of an electronic signature of the person required to sign the document; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.0013/3">
<num value="3">(3)</num>
<content>be notarized, acknowledged, verified, witnessed, made under oath, sworn to with a jurat, or proved according to law, if the document contains an image of an electronic signature of the person authorized to perform that act and all other information required to be included.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.0013/d">
<num value="d">(d)</num>
<chapeau>A notary public or other officer who may take an acknowledgment or proof under Section 121.001, Civil Practice and Remedies Code, may declare that a paper or tangible copy of an electronic record is a true and correct copy of an electronic record by:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.0013/1">
<num value="1">(1)</num>
<content>executing and attaching an official seal to a tangible paper declaration under penalty of perjury; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.0013/2">
<num value="2">(2)</num>
<content>affixing or attaching the declaration to the printed paper or tangible copy of an electronic record.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.0013/e">
<num value="e">(e)</num>
<content>The form of declaration required under Subsection (d) must be substantially as follows:</content>
</subsection>
<sourceCredit>DECLARATION OF AUTHENTICITY
State of ________________
County of _______________
The attached document, ________________(insert title), dated ____________ and containing __ pages, is a true and correct copy of an electronic record printed by me or under my supervision. At the time of printing, no security features present on the electronic record indicated any changes or errors in an electronic signature or other information in the electronic record after the electronic record's creation or execution. This declaration is made under penalty of perjury.
Signed this ____ day of ________, ____.
________________(signature of notary public or other officer)
(seal of office)
________________(printed name of notary public or other officer)
My commission expires: ______________
Added by Acts 2019, 86th Leg., R.S., Ch. 678 (S.B. 2128), Sec. 3, eff. September 1, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c12/s12.002">
<num value="12.002">Sec. 12.002.</num>
<heading>SUBDIVISION PLAT; PENALTY</heading>
<subsection identifier="/us/tx/pr/t3/c12/s12.002/a">
<num value="a">(a)</num>
<content>The county clerk or a deputy of the clerk with whom a plat or replat of a subdivision of real property is filed for recording shall determine whether the plat or replat is required by law to be approved by a county or municipal authority or both. The clerk or deputy may not record a plat or replat unless it is approved as provided by law by the appropriate authority and unless the plat or replat has attached to it the documents required by Subsection (e) or by Section 212.0105 or 232.023, Local Government Code, if applicable. If a plat or replat does not indicate whether land covered by the plat or replat is in the extraterritorial jurisdiction of the municipality, the county clerk may require the person filing the plat or replat for recording to file with the clerk an affidavit stating that information.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.002/b">
<num value="b">(b)</num>
<content>A person may not file for record or have recorded in the county clerk's office a plat or replat of a subdivision of real property unless it is approved as provided by law by the appropriate authority and unless the plat or replat has attached to it the documents required by Section 212.0105 or 232.023, Local Government Code, if applicable.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.002/c">
<num value="c">(c)</num>
<content>Except as provided by Subsection (d), a person who subdivides real property may not use the subdivision's description in a deed of conveyance, a contract for a deed, or a contract of sale or other executory contract to convey that is delivered to a purchaser unless the plat or replat of the subdivision is approved and is filed for record with the county clerk of the county in which the property is located and unless the plat or replat has attached to it the documents required by Subsection (e) or by Section 212.0105 or 232.023, Local Government Code, if applicable.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.002/d">
<num value="d">(d)</num>
<chapeau>Except in the case of a subdivision located in a county to which Subchapter B or G, Chapter 232, Local Government Code, applies, Subsection (c) does not apply to using a subdivision's description in a contract to convey real property before the plat or replat of the subdivision is approved and is filed for record with the county clerk if:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.002/1">
<num value="1">(1)</num>
<content>the conveyance is expressly contingent on approval and recording of the final plat; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.002/2">
<num value="2">(2)</num>
<content>the purchaser is not given use or occupancy of the real property conveyed before the recording of the final plat.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.002/e">
<num value="e">(e)</num>
<chapeau>A person may not file for record or have recorded in the county clerk's office a plat, replat, or amended plat or replat of a subdivision of real property unless the plat, replat, or amended plat or replat has attached to it an original tax certificate from each taxing unit with jurisdiction of the real property indicating that no delinquent ad valorem taxes are owed on the real property. If the tax certificate for a taxing unit does not cover the preceding year, the plat, replat, or amended plat or replat must also have attached to it a tax receipt issued by the collector for the taxing unit indicating that the taxes imposed by the taxing unit for the preceding year have been paid. This subsection does not apply if:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.002/1">
<num value="1">(1)</num>
<content>more than one person acquired the real property from a decedent under a will or by inheritance and those persons owning an undivided interest in the property obtained approval to subdivide the property to provide each person with a divided interest and a separate title to the property; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.002/2">
<num value="2">(2)</num>
<content>a taxing unit acquired the real property for public use through eminent domain proceedings or voluntary sale.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.002/f">
<num value="f">(f)</num>
<content>A person commits an offense if the person violates Subsection (b), (c), or (e). An offense under this subsection is a misdemeanor punishable by a fine of not less than $10 or more than $1,000, by confinement in the county jail for a term not to exceed 90 days, or by both the fine and confinement. Each violation constitutes a separate offense and also constitutes prima facie evidence of an attempt to defraud.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.002/g">
<num value="g">(g)</num>
<content>This section does not apply to a partition by a court.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3489, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1987, 70th Leg., ch. 149, Sec. 22, eff. Sept. 1, 1987; Acts 1989, 71st Leg., ch. 624, Sec. 3.09, eff. Sept. 1, 1989; Acts 1991, 72nd Leg., ch. 570, Sec. 1, eff. June 15, 1991; Acts 1997, 75th Leg., ch. 583, Sec. 1, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 404, Sec. 27, eff. Sept. 1, 1999; Acts 1999, 76th Leg., ch. 812, Sec. 1, eff. Sept. 1, 1999; Acts 1999, 76th Leg., ch. 1382, Sec. 8, eff. June 19, 1999.
Amended by:
Acts 2005, 79th Leg., Ch. 1126 (H.B. 2491), Sec. 26, eff. September 1, 2005.
Acts 2005, 79th Leg., Ch. 1154 (H.B. 3101), Sec. 1, eff. September 1, 2005.
Acts 2007, 80th Leg., R.S., Ch. 289 (H.B. 989), Sec. 1, eff. September 1, 2007.
Acts 2025, 89th Leg., R.S., Ch. 526 (H.B. 3680), Sec. 8, eff. September 1, 2025.
Acts 2025, 89th Leg., R.S., Ch. 574 (H.B. 2025), Sec. 1, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c12/s12.003">
<num value="12.003">Sec. 12.003.</num>
<heading>INSTRUMENT IN GENERAL LAND OFFICE OR ARCHIVES</heading>
<subsection identifier="/us/tx/pr/t3/c12/s12.003/a">
<num value="a">(a)</num>
<chapeau>If written evidence of title to land has been filed according to law in the General Land Office or is in the public archives, a copy of the written evidence may be recorded if:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.003/1">
<num value="1">(1)</num>
<content>the original was properly executed under the law in effect at the time of execution; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.003/2">
<num value="2">(2)</num>
<content>the copy is certified by the officer having custody of the original and attested with the seal of the General Land Office.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.003/b">
<num value="b">(b)</num>
<chapeau>A court may not admit a title to land that was filed in the General Land Office as evidence of superior title against a location or survey of the same land that was made under a valid land warrant or certificate prior to the filing of the title in the General Land Office unless prior to the location or survey:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.003/1">
<num value="1">(1)</num>
<content>the older title had been recorded with the county clerk of the county in which the land is located; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.003/2">
<num value="2">(2)</num>
<content>the person who had the location or survey made had actual notice of the older title.</content>
</paragraph>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3490, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c12/s12.004">
<num value="12.004">Sec. 12.004.</num>
<heading>FOREIGN DEED</heading>
<chapeau>If written evidence of title to land has been filed outside the county in which the land is located or outside the state, a copy of the written evidence may be recorded in the county in which the land is located if:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.004/1">
<num value="1">(1)</num>
<content>the original was properly executed and recorded under the law governing the recording; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.004/2">
<num value="2">(2)</num>
<content>the copy is certified by the officer having legal custody of the original.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3490, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c12/s12.005">
<num value="12.005">Sec. 12.005.</num>
<heading>PARTITION</heading>
<subsection identifier="/us/tx/pr/t3/c12/s12.005/a">
<num value="a">(a)</num>
<content>A court order partitioning or allowing recovery of title to land must be recorded with the county clerk of the county in which the land is located in order to be admitted as evidence to support a right claimed under the order.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.005/b">
<num value="b">(b)</num>
<chapeau>A record of an order is sufficient under this section if it consists of a brief statement by the clerk of the court that made the order, signed and sealed by the clerk, that includes:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.005/1">
<num value="1">(1)</num>
<content>the identity of the case in which the partition or judgment was made;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.005/2">
<num value="2">(2)</num>
<content>the date of the case;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.005/3">
<num value="3">(3)</num>
<content>the names of the parties to the case;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.005/4">
<num value="4">(4)</num>
<content>a description of the land involved that is located in the county of the recording; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.005/5">
<num value="5">(5)</num>
<content>the name of the party to whom the land is decreed.</content>
</paragraph>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3490, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c12/s12.006">
<num value="12.006">Sec. 12.006.</num>
<heading>GRANT FROM GOVERNMENT</heading>
<content>A grant from this state or the United States that is executed and authenticated under the law in effect at the time the grant is made may be recorded without further acknowledgement or proof.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3491, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c12/s12.007">
<num value="12.007">Sec. 12.007.</num>
<heading>LIS PENDENS</heading>
<subsection identifier="/us/tx/pr/t3/c12/s12.007/a">
<num value="a">(a)</num>
<content>After the plaintiff's statement in an eminent domain proceeding is filed or during the pendency of an action involving title to real property, the establishment of an interest in real property, or the enforcement of an encumbrance against real property, a party to the action who is seeking affirmative relief may file for record with the county clerk of each county where a part of the property is located a notice that the action is pending.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.007/b">
<num value="b">(b)</num>
<chapeau>The party filing a lis pendens or the party's agent or attorney shall sign the lis pendens, which must state:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.007/1">
<num value="1">(1)</num>
<content>the style and number, if any, of the proceeding;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.007/2">
<num value="2">(2)</num>
<content>the court in which the proceeding is pending;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.007/3">
<num value="3">(3)</num>
<content>the names of the parties;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.007/4">
<num value="4">(4)</num>
<content>the kind of proceeding; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.007/5">
<num value="5">(5)</num>
<content>a description of the property affected.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.007/c">
<num value="c">(c)</num>
<content>The county clerk shall record the notice in a lis pendens record. The clerk shall index the record in a direct and reverse index under the name of each party to the proceeding.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.007/d">
<num value="d">(d)</num>
<content>Not later than the third day after the date a person files a notice for record under this section, the person must serve a copy of the notice on each party to the action who has an interest in the real property affected by the notice.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3491, ch. 576, Sec. 1, eff. Jan. 1, 1984.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 297 (H.B. 396), Sec. 1, eff. September 1, 2009.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c12/s12.0071">
<num value="12.0071">Sec. 12.0071.</num>
<heading>MOTION TO EXPUNGE LIS PENDENS</heading>
<subsection identifier="/us/tx/pr/t3/c12/s12.0071/a">
<num value="a">(a)</num>
<chapeau>A party to an action in connection with which a notice of lis pendens has been filed may:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.0071/1">
<num value="1">(1)</num>
<content>apply to the court to expunge the notice; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.0071/2">
<num value="2">(2)</num>
<content>file evidence, including declarations, with the motion to expunge the notice.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.0071/b">
<num value="b">(b)</num>
<chapeau>The court may:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.0071/1">
<num value="1">(1)</num>
<content>permit evidence on the motion to be received in the form of oral testimony; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.0071/2">
<num value="2">(2)</num>
<content>make any orders the court considers just to provide for discovery by a party affected by the motion.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.0071/c">
<num value="c">(c)</num>
<chapeau>The court shall order the notice of lis pendens expunged if the court determines that:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.0071/1">
<num value="1">(1)</num>
<content>the pleading on which the notice is based does not contain a real property claim;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.0071/2">
<num value="2">(2)</num>
<content>the claimant fails to establish by a preponderance of the evidence the probable validity of the real property claim; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.0071/3">
<num value="3">(3)</num>
<content>the person who filed the notice for record did not serve a copy of the notice on each party entitled to a copy under Section 12.007(d).</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.0071/d">
<num value="d">(d)</num>
<content>Notice of a motion to expunge under Subsection (a) must be served on each affected party on or before the 20th day before the date of the hearing on the motion.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.0071/e">
<num value="e">(e)</num>
<content>The court shall rule on the motion for expunction based on the affidavits and counteraffidavits on file and on any other proof the court allows.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.0071/f">
<num value="f">(f)</num>
<chapeau>After a certified copy of an order expunging a notice of lis pendens has been recorded:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.0071/1">
<num value="1">(1)</num>
<chapeau>the notice of lis pendens and any information derived or that could be derived from the notice:</chapeau>
<subparagraph identifier="/us/tx/pr/t3/c12/s12.0071/A">
<num value="A">(A)</num>
<content>does not:</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.0071/i">
<num value="i">(i)</num>
<chapeau>constitute constructive or actual notice of any matter contained in the notice or of any matter relating to the action in connection with which the notice was filed;</chapeau>
<clause identifier="/us/tx/pr/t3/c12/s12.0071/ii">
<num value="ii">(ii)</num>
<content>create any duty of inquiry in a person with respect to the property described in the notice; or</content>
</clause>
<clause identifier="/us/tx/pr/t3/c12/s12.0071/iii">
<num value="iii">(iii)</num>
<content>affect the validity of a conveyance to a purchaser for value or of a mortgage to a lender for value; and</content>
</clause>
<subparagraph identifier="/us/tx/pr/t3/c12/s12.0071/B">
<num value="B">(B)</num>
<content>is not enforceable against a purchaser or lender described by Paragraph (A)(iii), regardless of whether the purchaser or lender knew of the lis pendens action; and</content>
</subparagraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.0071/2">
<num value="2">(2)</num>
<content>an interest in the real property may be transferred or encumbered free of all matters asserted or disclosed in the notice and all claims or other matters asserted or disclosed in the action in connection with which the notice was filed.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.0071/g">
<num value="g">(g)</num>
<content>The court in its discretion may require that the party prevailing in the expunction hearing submit an undertaking to the court in an amount determined by the court.</content>
</subsection>
<sourceCredit>Added by Acts 2009, 81st Leg., R.S., Ch. 297 (H.B. 396), Sec. 2, eff. September 1, 2009.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 47 (S.B. 1955), Sec. 1, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c12/s12.008">
<num value="12.008">Sec. 12.008.</num>
<heading>CANCELLATION OF LIS PENDENS</heading>
<subsection identifier="/us/tx/pr/t3/c12/s12.008/a">
<num value="a">(a)</num>
<content>On the motion of a party or other person interested in the result of or in property affected by a proceeding in which a lis pendens has been recorded and after notice to each affected party, the court hearing the action may cancel the lis pendens at any time during the proceeding, whether in term time or vacation, if the court determines that the party seeking affirmative relief can be adequately protected by the deposit of money into court or by the giving of an undertaking.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.008/b">
<num value="b">(b)</num>
<chapeau>If the cancellation of a lis pendens is conditioned on the payment of money, the court may order the cancellation when the party seeking the cancellation pays into the court an amount equal to the total of:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.008/1">
<num value="1">(1)</num>
<content>the judgment sought;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.008/2">
<num value="2">(2)</num>
<content>the interest the court considers likely to accrue during the proceeding; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.008/3">
<num value="3">(3)</num>
<content>costs.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.008/c">
<num value="c">(c)</num>
<content>If the cancellation of a lis pendens is conditioned on the giving of an undertaking, the court may order the cancellation when the party seeking the cancellation gives a guarantee of payment of a judgment, plus interest and costs, in favor of the party who recorded the lis pendens. The guarantee must equal twice the amount of the judgment sought and have two sufficient sureties approved by the court. Not less than two days before the day the guarantee is submitted to the court for approval, the party seeking the cancellation shall serve the attorney for the party who recorded the lis pendens a copy of the guarantee and notice of its submission to the court.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3491, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c12/s12.009">
<num value="12.009">Sec. 12.009.</num>
<heading>MORTGAGE OR DEED OF TRUST MASTER FORM</heading>
<subsection identifier="/us/tx/pr/t3/c12/s12.009/a">
<num value="a">(a)</num>
<content>A master form of a mortgage or deed of trust may be recorded in any county without acknowledgement or proof. The master form must contain on its face the designation: "Master form recorded by (name of person causing the recording)."</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.009/b">
<num value="b">(b)</num>
<content>The county clerk shall index a master form under the name of the person causing the recording and indicate in the index and records that the document is a master mortgage.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.009/c">
<num value="c">(c)</num>
<chapeau>The parties to an instrument may incorporate by reference a provision of a recorded master form with the same effect as if the provision were set out in full in the instrument. The reference must state:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.009/1">
<num value="1">(1)</num>
<content>that the master form is recorded in the county in which the instrument is offered for record;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.009/2">
<num value="2">(2)</num>
<content>the numbers of the book or volume and first page of the records in which the master form is recorded; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.009/3">
<num value="3">(3)</num>
<content>a definite identification of each provision being incorporated.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.009/d">
<num value="d">(d)</num>
<content>If a mortgage or deed of trust incorporates by reference a provision of a master form, the mortgagee shall give the mortgagor a copy of the master form at the time the instrument is executed. A statement in the mortgage or deed of trust or in a separate instrument signed by the mortgagor that the mortgagor received a copy of the master form is conclusive evidence of its receipt. On written request the mortgagee shall give a copy of the master form without charge to the mortgagor, the mortgagor's successors in interest, or the mortgagor's or a successor's agent.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.009/e">
<num value="e">(e)</num>
<content>The provisions of the Uniform Commercial Code prevail over this section.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3492, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c12/s12.011">
<num value="12.011">Sec. 12.011.</num>
<heading>CERTIFICATE OF REDEMPTION</heading>
<content>An instrument issued by the United States that redeems or evidences redemption of real property from a judicial sale or from a nonjudicial sale under foreclosure of a lien, mortgage, or deed of trust may be recorded in records of conveyances in each county in which the property is located if the instrument has been issued according to the laws of the United States.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3493, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c12/s12.012">
<num value="12.012">Sec. 12.012.</num>
<heading>ATTACHMENT</heading>
<subsection identifier="/us/tx/pr/t3/c12/s12.012/a">
<num value="a">(a)</num>
<content>If an officer files a writ of attachment on real property with a county clerk, the clerk shall record the name of each plaintiff and defendant in attachment, the amount of the debt, and the officer's return in full.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.012/b">
<num value="b">(b)</num>
<content>A county clerk who receives a certified copy of an order quashing or vacating a writ of attachment shall record the order and the name of each plaintiff and defendant.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3494, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c12/s12.013">
<num value="12.013">Sec. 12.013.</num>
<heading>JUDGMENT</heading>
<chapeau>A judgment of a court may be recorded if:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.013/1">
<num value="1">(1)</num>
<chapeau>the judgment is of a court:</chapeau>
<subparagraph identifier="/us/tx/pr/t3/c12/s12.013/A">
<num value="A">(A)</num>
<content>expressly created or established under the constitution or laws of this state or of the United States;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t3/c12/s12.013/B">
<num value="B">(B)</num>
<content>that is a court of a foreign country and that is recognized by an Act of congress or a treaty or other international convention to which the United States is a party; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t3/c12/s12.013/C">
<num value="C">(C)</num>
<content>of any other jurisdiction, territory, or protectorate entitled to full faith and credit in this state under the Constitution of the United States; and</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.013/2">
<num value="2">(2)</num>
<content>the judgment is attested under the signature and seal of the clerk of the court that rendered the judgment.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3494, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1997, 75th Leg., ch. 189, Sec. 15, eff. May 21, 1997; Acts 2001, 77th Leg., ch. 668, Sec. 1, eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c12/s12.014">
<num value="12.014">Sec. 12.014.</num>
<heading>TRANSFER OF JUDGMENT OR CAUSE OF ACTION</heading>
<subsection identifier="/us/tx/pr/t3/c12/s12.014/a">
<num value="a">(a)</num>
<content>A judgment or part of a judgment of a court of record or an interest in a cause of action on which suit has been filed may be sold, regardless of whether the judgment or cause of action is assignable in law or equity, if the transfer is in writing.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.014/b">
<num value="b">(b)</num>
<content>A transfer under this section may be filed with the papers of the suit if the transfer is acknowledged or sworn to in the form and manner required by law for acknowledgement or swearing of deeds.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.014/c">
<num value="c">(c)</num>
<content>If a transfer of a judgment is filed, the clerk shall record the transfer appropriately. If a transfer of a cause of action in which a judgment has not been rendered is filed, the clerk shall note and briefly state the substance of the transfer on the court docket at the place where the suit is entered.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.014/d">
<num value="d">(d)</num>
<content>A transfer filed under this section is notice to and is binding on a person subsequently dealing with the judgment or cause of action.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3494, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 162, Sec. 3, eff. Sept. 1, 1989.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 628 (H.B. 587), Sec. 4, eff. September 1, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c12/s12.015">
<num value="12.015">Sec. 12.015.</num>
<heading>JUDGMENT IN JUSTICE COURT</heading>
<subsection identifier="/us/tx/pr/t3/c12/s12.015/a">
<num value="a">(a)</num>
<content>On the application of a party interested in land that has been sold under an execution issued by a justice court, the justice of the peace having custody of the execution and the judgment under which it was issued shall make a certified transcript of the judgment, the execution, and the levy and return of the executing officer.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.015/b">
<num value="b">(b)</num>
<content>A certified transcript under this section may be recorded in the same manner as a deed.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3495, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c12/s12.016">
<num value="12.016">Sec. 12.016.</num>
<heading>POWER OF ATTORNEY</heading>
<content>A power of attorney may be recorded.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3495, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c12/s12.017">
<num value="12.017">Sec. 12.017.</num>
<heading>TITLE INSURANCE COMPANY AFFIDAVIT AS RELEASE OF LIEN; CIVIL PENALTY</heading>
<subsection identifier="/us/tx/pr/t3/c12/s12.017/a">
<num value="a">(a)</num>
<chapeau>In this section:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.017/1">
<num value="1">(1)</num>
<content>"Mortgage" means a deed of trust or other contract lien on an interest in real property.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.017/2">
<num value="2">(2)</num>
<chapeau>"Mortgagee" means:</chapeau>
<subparagraph identifier="/us/tx/pr/t3/c12/s12.017/A">
<num value="A">(A)</num>
<content>the grantee of a mortgage;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t3/c12/s12.017/B">
<num value="B">(B)</num>
<content>if a mortgage has been assigned of record, the last person to whom the mortgage has been assigned of record; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t3/c12/s12.017/C">
<num value="C">(C)</num>
<content>if a mortgage is serviced by a mortgage servicer, the mortgage servicer.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.017/3">
<num value="3">(3)</num>
<content>"Mortgage servicer" means the last person to whom a mortgagor has been instructed by a mortgagee to send payments for the loan secured by a mortgage. A person transmitting a payoff statement is considered the mortgage servicer for the mortgage described in the payoff statement.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.017/4">
<num value="4">(4)</num>
<content>"Mortgagor" means the grantor of a mortgage.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.017/5">
<num value="5">(5)</num>
<chapeau>"Payoff statement" means a statement of the amount of:</chapeau>
<subparagraph identifier="/us/tx/pr/t3/c12/s12.017/A">
<num value="A">(A)</num>
<content>the unpaid balance of a loan secured by a mortgage, including principal, interest, and other charges properly assessed under the loan documentation of the mortgage; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t3/c12/s12.017/B">
<num value="B">(B)</num>
<content>interest on a per diem basis for the unpaid balance.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.017/6">
<num value="6">(6)</num>
<content>"Title insurance company" means a corporation or other business entity authorized to engage in the business of insuring titles to interests in real property in this state.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.017/7">
<num value="7">(7)</num>
<content>"Authorized title insurance agent," with respect to an Affidavit as Release of Lien under this section, means a person licensed as a title insurance agent under Chapter 2651, Insurance Code, and authorized in writing by a title insurance company by instrument recorded in the real property records in the county in which the property to which the affidavit relates is located to execute one or more Affidavits as Release of Lien in compliance with this section, subject to any terms, limitations, and conditions that are set forth in the instrument executed by the title insurance company.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.017/b">
<num value="b">(b)</num>
<chapeau>This section applies only to a mortgage on:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.017/1">
<num value="1">(1)</num>
<content>property consisting exclusively of a one-to-four-family residence, including a residential unit in a condominium regime; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.017/2">
<num value="2">(2)</num>
<content>property other than property described by Subdivision (1), if the original face amount of the indebtedness secured by the mortgage on the property is less than $1.5 million.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.017/c">
<num value="c">(c)</num>
<content>An authorized officer of a title insurance company or an authorized title insurance agent may, on behalf of the mortgagor or a transferee of the mortgagor who acquired title to the property described in the mortgage, execute an affidavit that complies with the requirements of this section and record the affidavit in the real property records of each county in which the mortgage was recorded.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.017/d">
<num value="d">(d)</num>
<content>An affidavit executed under Subsection (c) must be in substantially the following form:</content>
</subsection>
<sourceCredit>AFFIDAVIT AS RELEASE OF LIEN
Before me, the undersigned authority, on this day personally appeared (insert name of affiant) ("Affiant") who, being first duly sworn, upon his/her oath states:
1. My name is (insert name of Affiant), and I am an authorized officer of (insert name of title insurance company or authorized title insurance agent) ("Title Company").
2. This affidavit is made on behalf of the mortgagor or a transferee of the mortgagor who acquired title to the property described in the following mortgage:
(describe mortgage, the name of the mortgagor, and the property described in the mortgage)
3. (Insert name of Mortgagee) ("Mortgagee") provided a payoff statement with respect to the loan secured by the mortgage.
4. Affiant has ascertained that Title Company delivered to Mortgagee payment of the loan secured by the mortgage in the amount and time and to the location required by the payoff statement.
5. The mortgage relates to:
(A) property consisting exclusively of a one-to-four-family residence, which may include a residential unit in a condominium regime; or
(B) property, other than property described by Paragraph (A) above, for which the original face amount of the indebtedness secured by the mortgage on the property is less than $1.5 million.
6. Pursuant to Section 12.017, Texas Property Code, this affidavit constitutes a full and final release of the mortgage from the property.
Signed this___ day of ___________, ____.
__________________________________________ (signature of affiant)
State of ______________
County of _____________
Sworn to and subscribed to before me on __________ (date) by ____________ (insert name of affiant).
_________________________________ (signature of notarial officer)
(Seal, if any, of notary) __________
___________________________________________________ (printed name)
My commission expires:
______________________
(e) An affidavit filed under Subsection (c) or (f) must include the names of the mortgagor and the mortgagee, the date of the mortgage, and the volume and page or clerk's file number of the real property records where the mortgage is recorded, together with similar information for a recorded assignment of the mortgage.
(f) On or after the date of the payment to which the affidavit relates, the title insurance company or authorized title insurance agent must notify the mortgagee at the location to which the payment is sent that the title insurance company or authorized title insurance agent may file for record at any time the affidavit as a release of lien. If notice required by this section is not provided to the mortgagee, the title insurance company or authorized title insurance agent may not file for record the affidavit as a release of lien. The mortgagee may file a separate affidavit describing the mortgage and property and controverting the affidavit by the title insurance company or authorized title insurance agent as a release of lien on or before the 45th day after the date the mortgagee receives the notice if the mortgagee mails a copy of the mortgagee's affidavit to the title insurance company or authorized title insurance agent within that 45-day period.
(g) An affidavit under Subsection (c) operates as a release of the mortgage described in the affidavit if the affidavit, as provided by this section:
(1) is executed;
(2) is recorded; and
(3) is not controverted by a separate affidavit by the mortgagee in accordance with the requirements of Subsection (f).
(h) The county clerk shall index an affidavit filed under this section in the names of the original mortgagee and the last assignee of the mortgage appearing of record as the grantors and in the name of the mortgagor as grantee.
(i) A person who knowingly causes an affidavit with false information to be executed and recorded under this section is liable for the penalties for filing a false affidavit, including the penalties for commission of offenses under Section 37.02 of the Penal Code. The attorney general may sue to collect the penalty. A person who negligently causes an affidavit with false information to be executed and recorded under this section is liable to a party injured by the affidavit for actual damages. If the attorney general or an injured party bringing suit substantially prevails in an action under this subsection, the court may award reasonable attorney's fees and court costs to the prevailing party.
(j) A title insurance company or authorized title insurance agent that, at any time after payment of the mortgage, files for record an affidavit executed under Subsection (c) may use any recording fee collected for the recording of a release of the mortgage for the purpose of filing the affidavit.
(k) This section does not affect any agreement or obligation of a mortgagee to execute and deliver a release of mortgage.
Added by Acts 1993, 73rd Leg., ch. 1003, Sec. 1, eff. Aug. 30, 1993.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 997 (H.B. 3945), Sec. 1, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 997 (H.B. 3945), Sec. 2, eff. September 1, 2009.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c12/s12.018">
<num value="12.018">Sec. 12.018.</num>
<heading>TRANSFER BY RECEIVER OR CONSERVATOR OF FAILED DEPOSITORY INSTITUTION</heading>
<content>If a bank, savings and loan association, savings bank, or other depository institution is placed in receivership or conservatorship by a state or federal agency, instrumentality, or institution, including the Banking Department of Texas, Department of Savings and Mortgage Lending of Texas, Office of the Comptroller of the Currency, Resolution Trust Corporation, Federal Deposit Insurance Corporation, Federal Savings and Loan Insurance Corporation, or their successors, a person at any time may record an affidavit or memorandum of a sale, transfer, purchase, or acquisition agreement between the receiver or conservator of the failed depository institution and another depository institution. If the sale, transfer, purchase, or acquisition agreement transfers or sells an interest in land or in a mortgage or other lien vested according to the real property records in the failed depository institution, a recorded affidavit or memorandum under this section is constructive notice of the transfer or sale. The failure of the affidavit or memorandum to be executed by the record owner or of the affidavit, memorandum, or agreement to contain language of conveyance does not create a defect in title to the land or the lien.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 1004, Sec. 1, eff. Aug. 30, 1993. Renumbered from Property Code Sec. 12.017 by Acts 1995, 74th Leg., ch. 76, Sec. 17.01(43), eff. Sept. 1, 1995.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 6.064, eff. September 1, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c12/s12.019">
<num value="12.019">Sec. 12.019.</num>
<heading>AFFIDAVIT OF AUTHORITY TO TRANSFER</heading>
<subsection identifier="/us/tx/pr/t3/c12/s12.019/a">
<num value="a">(a)</num>
<chapeau>In this section:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.019/1">
<num value="1">(1)</num>
<content>"Domestic entity," "foreign entity," "jurisdiction of formation," and "nonprofit entity" have the meanings assigned by Section 1.002, Business Organizations Code.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.019/2">
<num value="2">(2)</num>
<content>"Transfer" means a transaction to sell, exchange, convey with or without covenants, quitclaim, release, surrender, mortgage, encumber, partition or consent to partitioning, subdivide, apply for zoning, rezoning, or other governmental permits, plat or consent to platting, develop, grant options concerning, lease or sublet, or otherwise dispose of an estate or interest in real property or a right incident to real property.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.019/b">
<num value="b">(b)</num>
<chapeau>This section does not apply to:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.019/1">
<num value="1">(1)</num>
<chapeau>a domestic nonprofit entity or a foreign entity that is:</chapeau>
<subparagraph identifier="/us/tx/pr/t3/c12/s12.019/A">
<num value="A">(A)</num>
<content>exempt from federal taxation under Section 501(a), Internal Revenue Code of 1986, by being listed as an exempt entity under Section 501(c)(3) of that code; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t3/c12/s12.019/B">
<num value="B">(B)</num>
<content>described by Section 170(c)(1) or (2), Internal Revenue Code of 1986; or</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.019/2">
<num value="2">(2)</num>
<content>a transaction involving the transfer of an estate or interest in real property in an amount that exceeds $1 million.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.019/c">
<num value="c">(c)</num>
<chapeau>A domestic entity or foreign entity may execute and record an affidavit identifying one or more individuals with authority to transfer on behalf of the entity an estate or interest in real property in the name of the entity if the entity is:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.019/1">
<num value="1">(1)</num>
<content>a limited liability company, a limited partnership, or a professional entity as defined by Section 301.003, Business Organizations Code; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.019/2">
<num value="2">(2)</num>
<content>active or in good standing under the laws of the entity's jurisdiction of formation.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.019/d">
<num value="d">(d)</num>
<content>An estate or interest in real property in the name of a domestic entity or foreign entity may be transferred on behalf of the entity by one or more individuals identified as authorized to do so in an affidavit described by Subsection (c).</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.019/e">
<num value="e">(e)</num>
<chapeau>Subject to Subsection (f), an affidavit described by Subsection (c) must:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.019/1">
<num value="1">(1)</num>
<chapeau>be executed under penalty of perjury by an individual who swears that the individual:</chapeau>
<subparagraph identifier="/us/tx/pr/t3/c12/s12.019/A">
<num value="A">(A)</num>
<content>is at least 18 years of age;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t3/c12/s12.019/B">
<num value="B">(B)</num>
<content>is authorized to execute and deliver the affidavit on behalf of the entity;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t3/c12/s12.019/C">
<num value="C">(C)</num>
<content>is fully competent to execute the affidavit; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t3/c12/s12.019/D">
<num value="D">(D)</num>
<content>understands that:</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.019/i">
<num value="i">(i)</num>
<chapeau>third parties will rely on the truthfulness of the statements made in the affidavit; and</chapeau>
<clause identifier="/us/tx/pr/t3/c12/s12.019/ii">
<num value="ii">(ii)</num>
<content>the affidavit is made under penalty of perjury; and</content>
</clause>
<paragraph identifier="/us/tx/pr/t3/c12/s12.019/2">
<num value="2">(2)</num>
<chapeau>state:</chapeau>
<subparagraph identifier="/us/tx/pr/t3/c12/s12.019/A">
<num value="A">(A)</num>
<content>the name of the domestic entity or foreign entity that holds title to the real property and that the entity is active or in good standing under the laws of the entity's jurisdiction of formation;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t3/c12/s12.019/B">
<num value="B">(B)</num>
<content>the address, including street address, of the domestic entity's or foreign entity's principal place of business in this state or, if the entity does not have a principal place of business in this state, the address of the entity's principal place of business in the state or country that is the entity's jurisdiction of formation;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t3/c12/s12.019/C">
<num value="C">(C)</num>
<content>the legal description of the real property an estate or interest in which is to be transferred and specify the nature of the transfer authorized; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t3/c12/s12.019/D">
<num value="D">(D)</num>
<content>the name and title of one or more individuals authorized to transfer on the entity's behalf an estate or interest in the real property described in the affidavit.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.019/f">
<num value="f">(f)</num>
<chapeau>An individual is authorized to execute an affidavit described by Subsection (c) on behalf of a domestic entity that files a franchise tax public information report under Section 171.203, Tax Code, if, on the date the affidavit is executed, the individual:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.019/1">
<num value="1">(1)</num>
<content>in the case of a limited liability company, is a manager or member of the limited liability company;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.019/2">
<num value="2">(2)</num>
<content>in the case of a limited partnership, is a general partner of the limited partnership; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.019/3">
<num value="3">(3)</num>
<content>in the case of a professional entity, is a director or officer of the applicable professional entity.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.019/g">
<num value="g">(g)</num>
<content>Except as provided by Subsection (h), the individual executing an affidavit described by Subsection (c) may not be the individual identified in the affidavit as authorized to transfer an estate or interest in the real property described in the affidavit.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.019/h">
<num value="h">(h)</num>
<chapeau>The individual executing the affidavit described by Subsection (c) may be the individual identified in the affidavit as authorized to transfer an estate or interest in the real property described in the affidavit if:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.019/1">
<num value="1">(1)</num>
<content>the entity is a limited liability company and the affidavit includes a representation by the affiant that the affiant is the sole member and manager of the limited liability company;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.019/2">
<num value="2">(2)</num>
<content>the entity is a limited partnership and the affidavit includes a representation by the affiant that the affiant is the sole general partner of the limited partnership;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.019/3">
<num value="3">(3)</num>
<content>the entity is a professional entity and the affidavit includes a representation by the affiant that the affiant is the sole director and officer of the applicable professional entity; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.019/4">
<num value="4">(4)</num>
<content>the most recent franchise tax public information report of the entity under Section 171.203, Tax Code, available on the date the affidavit is executed identifies only the affiant and no other person as an officer, director, member, manager, or general partner of the entity.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.019/i">
<num value="i">(i)</num>
<content>The affidavit must be recorded with the county clerk in the county in which the real property is located. The county clerk may collect a fee for recording an affidavit under this section in the amount authorized for recording a transfer of real property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.019/j">
<num value="j">(j)</num>
<content>A person who in good faith acts in reliance on an affidavit that complies with this section and that contains transfer authority that has not been terminated under Subsection (n) or has not expired under Subsection (o) is not liable to any person for that act and may assume without inquiry the existence of the facts contained in the affidavit if the person does not have actual knowledge that any material representations contained in the affidavit are incorrect.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.019/k">
<num value="k">(k)</num>
<chapeau>A person who in good faith enters into a transaction involving the transfer of an estate or interest in real property described in an affidavit that is described by Subsection (c) and who relies on the affidavit, without actual knowledge that any material representations contained in the affidavit are incorrect, may enforce the transaction against the entity and the real property described in the affidavit as if the representations contained in the affidavit are correct if:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.019/1">
<num value="1">(1)</num>
<content>the affidavit complies with this section; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.019/2">
<num value="2">(2)</num>
<content>the transfer authority specified in the affidavit has not been terminated under Subsection (n) or has not expired under Subsection (o).</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.019/l">
<num value="l">(l)</num>
<content>With respect to an affidavit described by Subsection (c), this section does not limit the rights of an owner of an interest in the entity against the affiant, the entity, or any individual identified in the affidavit with authority to transfer on behalf of the entity an estate or interest in real property in the name of the entity.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.019/m">
<num value="m">(m)</num>
<chapeau>Nothing in this section:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.019/1">
<num value="1">(1)</num>
<content>requires an individual to rely on an affidavit described by Subsection (c);</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.019/2">
<num value="2">(2)</num>
<content>requires an entity to deliver an affidavit that complies with this section in order for a transfer of an estate or interest in real property on behalf of the entity to take effect;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.019/3">
<num value="3">(3)</num>
<content>prohibits an entity from authorizing an individual to transfer an estate or interest in real property on behalf of the entity by a means other than an affidavit described by Subsection (c); or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.019/4">
<num value="4">(4)</num>
<content>shall be construed to validate a transfer of an estate or interest in real property that is void by other law.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.019/n">
<num value="n">(n)</num>
<chapeau>An entity that executes and records an affidavit described by Subsection (c) may terminate the transfer authority specified in the affidavit at any time by recording a written termination of the authority specified in the affidavit with the county clerk in the county in which the real property is located. The written termination must be in the form of an affidavit that:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.019/1">
<num value="1">(1)</num>
<content>satisfies the requirements of Subsection (e) other than Subsection (e)(2)(D);</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.019/2">
<num value="2">(2)</num>
<content>provides the recording information for the affidavit that specifies the transfer authority being terminated; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.019/3">
<num value="3">(3)</num>
<content>states that the authority to transfer an estate or interest in real property as contained in the previously recorded affidavit is terminated.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.019/o">
<num value="o">(o)</num>
<content>The transfer authority contained in an affidavit that complies with this section and that has not been terminated as provided by Subsection (n) expires on the first anniversary of the date on which the affidavit was recorded under Subsection (i).</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.019/p">
<num value="p">(p)</num>
<content>The transfer authority or the termination of the transfer authority specified in an affidavit that is recorded under Subsection (i) or (n) is effective on the date the county clerk indexes the affidavit.</content>
</subsection>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 1081 (H.B. 1833), Sec. 1, eff. September 1, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c12/s12.020">
<num value="12.020">Sec. 12.020.</num>
<heading>FILING AND RELEASE OF UNILATERAL MEMORANDUM OF CONTRACT CONCERNING RESIDENTIAL PROPERTY</heading>
<subsection identifier="/us/tx/pr/t3/c12/s12.020/a">
<num value="a">(a)</num>
<chapeau>In this section:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.020/1">
<num value="1">(1)</num>
<content>"Residential property" means the real property and existing improvements for a single-family house, duplex, triplex, or quadruplex or a unit in a multiunit structure used for residential purposes in which title to the individual units is transferred to the owners under a condominium system.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.020/2">
<num value="2">(2)</num>
<content>"Unilateral memorandum of contract" means a written document that is signed only by a person who is not an owner of the residential property and asserts that the person has entered into a contract with an owner of residential property for the purchase of an interest in the property, for an option to purchase an interest in the property, for a right of first refusal or first offer to purchase an interest in the property, or for a right to match any offer to purchase an interest in the property. The term does not include a deed or a document granting a right of first refusal pursuant to a condominium declaration.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.020/b">
<num value="b">(b)</num>
<chapeau>A person who files for recording a unilateral memorandum of contract concerning residential property shall:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.020/1">
<num value="1">(1)</num>
<content>provide to the county clerk the person's mailing address and a certificate of mailing that substantially complies with Subsection (h) for recording with the unilateral memorandum of contract; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.020/2">
<num value="2">(2)</num>
<chapeau>not later than the date the person files the memorandum with the county clerk, send a copy of the filed memorandum and a letter notifying the owner of the property of the filing of the memorandum by registered or certified mail, return receipt requested, to:</chapeau>
<subparagraph identifier="/us/tx/pr/t3/c12/s12.020/A">
<num value="A">(A)</num>
<content>the address of the property; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t3/c12/s12.020/B">
<num value="B">(B)</num>
<content>any mailing address shown for the owner on the filed memorandum, in the real property records for the property, or in the records of the relevant appraisal district with respect to the property.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.020/c">
<num value="c">(c)</num>
<chapeau>An owner of residential property who receives a letter described by Subsection (b) or otherwise has notice of a recorded unilateral memorandum of contract concerning the property may file for recording in the real property records of the county in which the property is located:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.020/1">
<num value="1">(1)</num>
<content>an affidavit that substantially complies with Subsection (i); and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.020/2">
<num value="2">(2)</num>
<content>a certificate of mailing that substantially complies with Subsection (j).</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.020/d">
<num value="d">(d)</num>
<chapeau>An owner of residential property who files an affidavit under Subsection (c) shall send a copy of the filed affidavit and a letter notifying the person who filed the unilateral memorandum of contract of the filing of the affidavit. The letter and the copy of the affidavit must be sent by registered or certified mail, return receipt requested, to:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.020/1">
<num value="1">(1)</num>
<content>the address provided to the county clerk by the person who filed the memorandum; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.020/2">
<num value="2">(2)</num>
<content>the address of any other person referenced in the memorandum other than the property owner.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.020/e">
<num value="e">(e)</num>
<chapeau>Subject to Subsection (f) and except as provided by Subsection (g):</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.020/1">
<num value="1">(1)</num>
<content>an affidavit filed under Subsection (c) serves as a release of record of a contract, option, or right asserted to exist by the unilateral memorandum of contract referenced in the affidavit; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.020/2">
<num value="2">(2)</num>
<chapeau>after the affidavit is recorded:</chapeau>
<subparagraph identifier="/us/tx/pr/t3/c12/s12.020/A">
<num value="A">(A)</num>
<content>the memorandum and any information derived or that could be derived from the memorandum does not:</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.020/i">
<num value="i">(i)</num>
<chapeau>constitute constructive or actual notice of any contract, option, or right concerning the residential property that is asserted to exist by the memorandum;</chapeau>
<clause identifier="/us/tx/pr/t3/c12/s12.020/ii">
<num value="ii">(ii)</num>
<content>create any duty of inquiry in a person with respect to the residential property described in the memorandum; or</content>
</clause>
<clause identifier="/us/tx/pr/t3/c12/s12.020/iii">
<num value="iii">(iii)</num>
<content>affect the validity of a conveyance to a purchaser for value or of a mortgage to a lender for value;</content>
</clause>
<subparagraph identifier="/us/tx/pr/t3/c12/s12.020/B">
<num value="B">(B)</num>
<content>a contract, option, or right asserted to exist by the memorandum is not enforceable against a purchaser or lender described by Paragraph (A)(iii), regardless of whether the purchaser or lender knew of the memorandum; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t3/c12/s12.020/C">
<num value="C">(C)</num>
<content>an interest in the residential property may be transferred or encumbered free of all interests asserted in the memorandum.</content>
</subparagraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.020/f">
<num value="f">(f)</num>
<chapeau>If an owner of residential property has filed an affidavit and certificate of mailing under Subsection (c) and a contradicting affidavit is not filed under Subsection (g):</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.020/1">
<num value="1">(1)</num>
<content>a bona fide purchaser or a mortgagee for value or a successor or assign of a bona fide purchaser or mortgagee for value may rely conclusively on the affidavit filed by the owner under Subsection (c) on and after the 45th day after the date the certificate of mailing was recorded; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.020/2">
<num value="2">(2)</num>
<content>the sole remedy available in an action brought to enforce a person's rights asserted under the unilateral memorandum of contract referenced in the affidavit is money damages.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.020/g">
<num value="g">(g)</num>
<chapeau>An affidavit filed under Subsection (c) does not serve as a release of record of a contract, option, or right asserted to exist by a unilateral memorandum of contract filed for recording under this section with respect to a purchaser or mortgagee of the residential property that acquires the purchaser's or mortgagee's interest from the owner if, not later than the 45th day after the date a certificate of mailing was recorded under Subsection (c), the person who filed the memorandum files for recording in the real property records of the county in which the residential property is located a contradicting affidavit asserting that:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c12/s12.020/1">
<num value="1">(1)</num>
<content>the affidavit or certificate of mailing filed by the owner under Subsection (c) is untrue; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c12/s12.020/2">
<num value="2">(2)</num>
<content>another reason exists as to why the memorandum serves as a valid notice of record of a contract for the purchase of an interest in residential property, for an option to purchase an interest in the property, for a right of first refusal or first offer to purchase an interest in the property, or for a right to match any offer to purchase an interest in the property.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c12/s12.020/h">
<num value="h">(h)</num>
<content>A certificate of mailing filed under Subsection (b) must be in substantially the following form:</content>
</subsection>
<sourceCredit>CERTIFICATE OF MAILING OF NOTICE OF FILED UNILATERAL MEMORANDUM OF CONTRACT
Before me, the undersigned authority, on this day personally appeared __________ ("Affiant(s)") (insert name(s) of Affiant(s)) who, being first duly sworn, upon oath state(s):
(1) My name is/Our names are __________ (insert name(s) of Affiant(s)).
(2) On the ____ day of __________, 20__, Affiant(s) caused a Unilateral Memorandum of Contract asserting the existence of a contract for the purchase of an interest in residential property, for an option to purchase an interest in residential property, for a right of first refusal or first offer to purchase an interest in residential property, or for a right to match any offer for the purchase of an interest in residential property ("Property") to be recorded in __________ (refer to affidavit recording information) ("Memorandum").
(3) On the ____ day of __________, 20__, Affiant(s) sent a copy of the Memorandum and a letter notifying the owner of the residential property referenced in the Memorandum ("Property") of the filing of the Memorandum, by registered or certified mail, return receipt requested, to:
(A) the address of the Property; and
(B) any mailing address shown for the owner of the Property on the Memorandum, in the real property records for the Property, or in the records of the relevant appraisal district with respect to the Property.
(4) Attached to this certificate are:
(A) a true and correct copy of the letter described by Subdivision (3) of this certificate; and
(B) proof of mailing of the letter as described by Subdivision (3) of this certificate.
Signed on the _____ day of __________, 20_____.
____________________
____________________
(Signature of Affiant(s))
State of __________
County of __________
SWORN TO AND SUBSCRIBED before me on the _________ day of __________, 20___.
My commission expires:
______________________
______________________________
Notary Public, State of Texas
Notary's printed name:
_____________________________
(i) An affidavit filed under Subsection (c) must be in substantially the following form:
AFFIDAVIT FOR RELEASE OF UNILATERAL MEMORANDUM OF CONTRACT
Before me, the undersigned authority, on this day personally appeared __________ ("Affiant(s)") (insert name(s) of Affiant(s)) who, being first duly sworn, upon oath state(s):
(1) My name is/Our names are __________ (insert name(s) of Affiant(s)). I/We own the following described residential property ("Property"):
(describe the residential property)
(2) This affidavit is made for the purpose of effecting a release of a contract for the purchase of an interest in the Property, an option to purchase an interest in the Property, a right of first refusal or first offer to purchase an interest in the Property, or a right to match any offer to purchase an interest in the Property under a contract asserted to exist by that unilateral memorandum of contract recorded in __________ (refer to recording information of unilateral memorandum of contract) ("Unilateral Memorandum of Contract").
(3) The factual basis for this affidavit is:
(describe the relevant facts)
(4) This affidavit serves as a release of any contract for the purchase of an interest in the Property, option to purchase an interest in the Property, right of first refusal or first offer to purchase an interest in the Property, or right to match any offer to purchase an interest in the Property under the contract asserted to exist by the Unilateral Memorandum of Contract in accordance with Section 12.020, Property Code.
Signed on this _____ day of __________, _____.
____________________
____________________
(Signature of Affiant(s))
State of __________
County of __________
SWORN TO AND SUBSCRIBED before me on the _________ day of __________, 20___.
My commission expires:
______________________
_______________________________
Notary Public, State of Texas
Notary's printed name:
________________________________
(j) A certificate of mailing filed under Subsection (c) must be in substantially the following form:
CERTIFICATE OF MAILING OF AFFIDAVIT FOR RELEASE OF UNILATERAL MEMORANDUM OF CONTRACT
Before me, the undersigned authority, on this day personally appeared __________ ("Affiant(s)") (insert name(s) of Affiant(s)) who, being first duly sworn, upon oath state(s):
(1) My name is/Our names are __________ (insert name(s) of Affiant(s)).
(2) On the ____ day of __________, 20__, Affiant(s) caused an Affidavit for Release of UNILATERAL MEMORANDUM OF CONTRACT to be recorded in __________ (refer to affidavit recording information) ("Affidavit").
(3) On the ____ day of __________, 20__, Affiant(s) sent a copy of the Affidavit and a letter notifying the person who filed the Unilateral Memorandum of Contract referenced in the Affidavit ("Memorandum") of the Affiant's/Affiants' claim for the filing and release of the Affidavit, by registered or certified mail, return receipt requested, to:
(A) the address of the person who filed the Memorandum, as provided to the county clerk; and
(B) the address of any other person referenced in the Memorandum.
(4) Attached to this certificate are:
(A) a true and correct copy of the letter described by Subdivision (3) of this certificate; and
(B) proof of mailing of the letter as described by Subdivision (3) of this certificate.
Signed on the _____ day of __________, 20_____.
____________________
____________________
(Signature of Affiant(s))
State of __________
County of __________
SWORN TO AND SUBSCRIBED before me on the _________ day of __________, 20___.
My commission expires:
____________________
_______________________________
Notary Public, State of Texas
Notary's printed name:
_______________________________
(k) If a unilateral memorandum of contract filed for recording on or after September 1, 2025, does not comply with Subsection (b):
(1) the memorandum and any information derived or that could be derived from the memorandum does not:
(A) constitute constructive or actual notice of any contract, option, or right concerning the residential property that is asserted to exist by the memorandum;
(B) create any duty of inquiry in a person with respect to the residential property described in the memorandum; or
(C) affect the validity of a conveyance to a purchaser for value or of a mortgage to a lender for value;
(2) a contract, option, or right asserted to exist by the memorandum is not enforceable against a purchaser or lender described by Subdivision (1)(C), regardless of whether the purchaser or lender knew of the memorandum;
(3) an interest in the residential property may be transferred or encumbered free of all interests asserted in the memorandum; and
(4) the sole remedy available in an action brought to enforce a person's rights asserted under the unilateral memorandum of contract referenced in the affidavit is money damages.
Added by Acts 2025, 89th Leg., R.S., Ch. 647 (H.B. 4063), Sec. 1, eff. September 1, 2025.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t3/c13">
<num value="13">CHAPTER 13.</num>
<heading>EFFECTS OF RECORDING</heading>
<section identifier="/us/tx/pr/t3/c13/s13.001">
<num value="13.001">Sec. 13.001.</num>
<heading>VALIDITY OF UNRECORDED INSTRUMENT</heading>
<subsection identifier="/us/tx/pr/t3/c13/s13.001/a">
<num value="a">(a)</num>
<content>A conveyance of real property or an interest in real property or a mortgage or deed of trust is void as to a creditor or to a subsequent purchaser for a valuable consideration without notice unless the instrument has been acknowledged, sworn to, or proved and filed for record as required by law.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c13/s13.001/b">
<num value="b">(b)</num>
<content>The unrecorded instrument is binding on a party to the instrument, on the party's heirs, and on a subsequent purchaser who does not pay a valuable consideration or who has notice of the instrument.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c13/s13.001/c">
<num value="c">(c)</num>
<content>This section does not apply to a financing statement, a security agreement filed as a financing statement, or a continuation statement filed for record under the Business & Commerce Code.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3495, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 162, Sec. 4, eff. Sept. 1, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c13/s13.002">
<num value="13.002">Sec. 13.002.</num>
<heading>EFFECT OF RECORDED INSTRUMENT</heading>
<chapeau>An instrument that is properly recorded in the proper county is:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c13/s13.002/1">
<num value="1">(1)</num>
<content>notice to all persons of the existence of the instrument; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c13/s13.002/2">
<num value="2">(2)</num>
<content>subject to inspection by the public.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3495, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 2003, 78th Leg., ch. 715, Sec. 2, eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 960, Sec. 2, eff. Sept. 1, 2003.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c13/s13.003">
<num value="13.003">Sec. 13.003.</num>
<heading>INSTRUMENTS PREVIOUSLY RECORDED IN OTHER COUNTIES</heading>
<content>The original or a certified copy of a conveyance, covenant, agreement, deed of trust, or mortgage, relating to land, that has been recorded in a county of this state other than the county where the land to which the instrument relates is located, is valid as to a creditor or a subsequent purchaser who has paid a valuable consideration and who does not have notice of the instrument only after it is recorded in the county in which the land is located. Recording a previously recorded instrument in the proper county does not validate an invalid instrument.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3496, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c13/s13.004">
<num value="13.004">Sec. 13.004.</num>
<heading>EFFECT OF RECORDING LIS PENDENS</heading>
<subsection identifier="/us/tx/pr/t3/c13/s13.004/a">
<num value="a">(a)</num>
<content>A recorded lis pendens is notice to the world of its contents. The notice is effective from the time it is filed for record and indexed as provided by Section 12.007(c), regardless of whether service has been made on the parties to the proceeding.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c13/s13.004/b">
<num value="b">(b)</num>
<content>A transfer or encumbrance of real property involved in a proceeding by a party to the proceeding to a third party who has paid a valuable consideration and who does not have actual or constructive notice of the proceeding is effective, even though the judgment is against the party transferring or encumbering the property, unless a notice of the pendency of the proceeding has been recorded and indexed under that party's name as provided by Section 12.007(c) in each county in which the property is located.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3496, ch. 576, Sec. 1, eff. Jan. 1, 1984.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 437 (S.B. 1187), Sec. 1, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c13/s13.005">
<num value="13.005">Sec. 13.005.</num>
<heading>EFFECT OF RECORDING JUDGMENT OF JUSTICE COURT</heading>
<content>A certified transcript of a justice court judgment recorded under Section 12.015 of this code has the same effect as a recorded deed. A court shall admit as evidence the transcript or a copy of the transcript, if the copy is certified with the signature and seal of the clerk of the county in which the transcript is recorded, in the same manner and with the same effect as the original judgment and execution.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3496, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c13/s13.006">
<num value="13.006">Sec. 13.006.</num>
<heading>EFFECT OF RECORDING QUITCLAIM DEED</heading>
<chapeau>After the fourth anniversary of the date a quitclaim deed for real property is recorded in the deed records of the county in which the real property is located, the quitclaim deed:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c13/s13.006/1">
<num value="1">(1)</num>
<content>does not affect the question of the good faith of a subsequent purchaser or creditor; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c13/s13.006/2">
<num value="2">(2)</num>
<content>is not notice to a subsequent purchaser or creditor of any unrecorded conveyance of, transfer of, or encumbrance on the real property.</content>
</paragraph>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 94 (S.B. 885), Sec. 2, eff. September 1, 2021.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t3/c14">
<num value="14">CHAPTER 14.</num>
<heading>UNIFORM FEDERAL LIEN REGISTRATION ACT</heading>
<section identifier="/us/tx/pr/t3/c14/s14.001">
<num value="14.001">Sec. 14.001.</num>
<heading>SCOPE</heading>
<content>This chapter applies only to federal tax liens and to other federal liens notices of which under any Act of Congress or any regulation adopted pursuant thereto are required or permitted to be filed in the same manner as notices of federal tax liens.</content>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 945, Sec. 1, eff. Sept. 1, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c14/s14.002">
<num value="14.002">Sec. 14.002.</num>
<heading>PLACE OF FILING</heading>
<subsection identifier="/us/tx/pr/t3/c14/s14.002/a">
<num value="a">(a)</num>
<content>Notices of liens, certificates, and other notices affecting federal tax liens or other federal liens must be filed in accordance with this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c14/s14.002/b">
<num value="b">(b)</num>
<content>Notices of liens upon real property for obligations payable to the United States and certificates and notices affecting the liens shall be filed in the office of the county clerk in the county in which the real property subject to the liens is situated.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c14/s14.002/c">
<num value="c">(c)</num>
<chapeau>Notices of federal liens upon personal property, whether tangible or intangible, for obligations payable to the United States and certificates and notices affecting the liens shall be filed as follows:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c14/s14.002/1">
<num value="1">(1)</num>
<content>if the person against whose interest the lien applies is a corporation or a partnership whose principal executive office is in this state, as these entities are defined in the internal revenue laws of the United States, in the office of the secretary of state;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c14/s14.002/2">
<num value="2">(2)</num>
<content>in all other cases, in the office of the county clerk in the county where the person against whose interest the lien applies resides at the time of filing of the notice of lien.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 945, Sec. 1, eff. Sept. 1, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c14/s14.003">
<num value="14.003">Sec. 14.003.</num>
<heading>EXECUTION OF NOTICES AND CERTIFICATES</heading>
<content>Certification of notices of liens, certificates, or other notices affecting federal liens by the secretary of the treasury of the United States or his delegate, or by any official or entity of the United States responsible for filing or certifying of notice of any other lien, entitles them to be filed and no other attestation, certification, or acknowledgment is necessary.</content>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 945, Sec. 1, eff. Sept. 1, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c14/s14.004">
<num value="14.004">Sec. 14.004.</num>
<heading>DUTIES OF FILING OFFICER</heading>
<subsection identifier="/us/tx/pr/t3/c14/s14.004/a">
<num value="a">(a)</num>
<chapeau>If a notice of federal lien, a refiling of a notice of federal lien, or a notice of revocation of any certificate described in Subsection (b) is presented to a filing officer who is:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c14/s14.004/1">
<num value="1">(1)</num>
<content>the secretary of state, he shall cause the notice to be marked, held or placed on microtext, and indexed in accordance with the provisions of Section 9.519, Business & Commerce Code, as if the notice were a financing statement within the meaning of that code; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c14/s14.004/2">
<num value="2">(2)</num>
<content>any other officer described in Section 14.002, he shall endorse thereon his identification and the date and time of receipt and forthwith file it alphabetically in the real property records and if requested by the party submitting the document, in the personal property files or enter it in an alphabetical index for real or personal property, as appropriate, showing the name and address of the person named in the notice, the date and time of receipt, the title and address of the official or entity certifying the lien, and the total amount appearing on the notice of lien.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c14/s14.004/b">
<num value="b">(b)</num>
<chapeau>If a certificate of release, nonattachment, discharge, or subordination of any lien is presented to the secretary of state for filing he shall:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c14/s14.004/1">
<num value="1">(1)</num>
<content>cause a certificate of release or nonattachment to be marked, held, and indexed as if the certificate were a termination statement within the meaning of the Uniform Commercial Code, but the notice of lien to which the certificate relates may not be removed from the files; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c14/s14.004/2">
<num value="2">(2)</num>
<content>cause a certificate of discharge or subordination to be marked, held, and indexed as if the certificate were a release of collateral within the meaning of the Uniform Commercial Code.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c14/s14.004/c">
<num value="c">(c)</num>
<content>If a refiled notice of federal lien referred to in Subsection (a) or any of the certificates or notices referred to in Subsection (b) is presented for filing to any other filing officer specified in Section 14.002, he shall permanently attach the refiled notice or the certificate to the original notice of lien unless the document is on microtext and therefore not in the files of the filing officer and enter the refiled notice or the certificate with the date of filing in any alphabetical lien index on the line where the original notice of lien is entered.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c14/s14.004/d">
<num value="d">(d)</num>
<content>Upon request of any person, the filing officer shall issue his certificate showing whether there is on file, on a date and time specified by the filing office, but not a date earlier than three business days before the date the filing office receives the request, any notice of lien or certificate or notice affecting any lien filed under this chapter or filed under the Uniform Federal Tax Lien Registration Act (Subchapter C, Chapter 113, Tax Code) on or after January 1, 1972, naming a particular person, and if a notice or certificate is on file, giving the date and hour of filing of each notice or certificate. The amount of the fee for a certificate is the same as the amount of the fee provided by Section 9.525(d), Business & Commerce Code. Upon request, the filing officer shall furnish a copy of any notice of federal lien. The fee for a copy furnished under this section is in the amount provided by Section 405.031, Government Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c14/s14.004/e">
<num value="e">(e)</num>
<content>Section 9.523, Business & Commerce Code, applies to a federal lien filed under this chapter.</content>
</subsection>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 945, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1999, 76th Leg., ch. 414, Sec. 2.34, eff. July 1, 2001.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 547 (S.B. 1699), Sec. 10, eff. September 1, 2009.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c14/s14.005">
<num value="14.005">Sec. 14.005.</num>
<heading>FEE</heading>
<content>The fee for filing and indexing each notice of lien or certificate or notice affecting the lien is $10. The filing of the same notice of lien or certificate or notice affecting a lien in both real property records and personal property files is two filings.</content>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 945, Sec. 1, eff. Sept. 1, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c14/s14.006">
<num value="14.006">Sec. 14.006.</num>
<heading>UNIFORMITY OF APPLICATION AND CONSTRUCTION</heading>
<content>This chapter shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of this chapter among states enacting it.</content>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 945, Sec. 1, eff. Sept. 1, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c14/s14.007">
<num value="14.007">Sec. 14.007.</num>
<heading>SHORT TITLE</heading>
<content>This chapter may be cited as the Uniform Federal Lien Registration Act.</content>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 945, Sec. 1, eff. Sept. 1, 1989.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t3/c15">
<num value="15">CHAPTER 15.</num>
<heading>UNIFORM REAL PROPERTY ELECTRONIC RECORDING ACT</heading>
<section identifier="/us/tx/pr/t3/c15/s15.001">
<num value="15.001">Sec. 15.001.</num>
<heading>SHORT TITLE</heading>
<content>This chapter may be cited as the Uniform Real Property Electronic Recording Act.</content>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 699 (S.B. 335), Sec. 1, eff. September 1, 2005.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c15/s15.002">
<num value="15.002">Sec. 15.002.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c15/s15.002/1">
<num value="1">(1)</num>
<chapeau>"Document" means information that is:</chapeau>
<subparagraph identifier="/us/tx/pr/t3/c15/s15.002/A">
<num value="A">(A)</num>
<content>inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t3/c15/s15.002/B">
<num value="B">(B)</num>
<content>eligible to be recorded in the real property records maintained by a county clerk.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c15/s15.002/2">
<num value="2">(2)</num>
<content>"Electronic" means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c15/s15.002/3">
<num value="3">(3)</num>
<content>"Electronic document" means a document that is received by a county clerk in an electronic form.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c15/s15.002/4">
<num value="4">(4)</num>
<content>"Electronic signature" means an electronic sound, symbol, or process attached to or logically associated with a document and executed or adopted by a person with the intent to sign the document.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c15/s15.002/5">
<num value="5">(5)</num>
<content>"Paper document" means a document that is received by a county clerk in a form that is not electronic.</content>
</paragraph>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 699 (S.B. 335), Sec. 1, eff. September 1, 2005.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c15/s15.003">
<num value="15.003">Sec. 15.003.</num>
<heading>UNIFORMITY OF APPLICATION AND CONSTRUCTION</heading>
<content>In applying and construing this chapter, consideration must be given to the need to promote uniformity of the law with respect to the subject matter of this chapter among states that enact a law substantially similar to this chapter.</content>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 699 (S.B. 335), Sec. 1, eff. September 1, 2005.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c15/s15.004">
<num value="15.004">Sec. 15.004.</num>
<heading>VALIDITY OF ELECTRONIC DOCUMENTS</heading>
<subsection identifier="/us/tx/pr/t3/c15/s15.004/a">
<num value="a">(a)</num>
<content>If a law requires, as a condition for recording, that a document be an original, be on paper or another tangible medium, or be in writing, the requirement is satisfied by an electronic document that complies with the requirements of this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c15/s15.004/b">
<num value="b">(b)</num>
<content>If a law requires, as a condition for recording, that a document be signed, the requirement is satisfied by an electronic signature.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c15/s15.004/c">
<num value="c">(c)</num>
<content>A requirement that a document or a signature associated with a document be notarized, acknowledged, verified, witnessed, or made under oath is satisfied if the electronic signature of the person authorized to perform that act, and all other information required to be included, is attached to or logically associated with the document or signature. A physical or electronic image of a stamp, impression, or seal need not accompany an electronic signature.</content>
</subsection>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 699 (S.B. 335), Sec. 1, eff. September 1, 2005.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c15/s15.005">
<num value="15.005">Sec. 15.005.</num>
<heading>RECORDING OF DOCUMENTS</heading>
<subsection identifier="/us/tx/pr/t3/c15/s15.005/a">
<num value="a">(a)</num>
<content>A county clerk who implements any of the functions described by this section shall act in compliance with rules adopted by the Texas State Library and Archives Commission under Chapter 195, Local Government Code, and standards established by the Texas State Library and Archives Commission under Section 15.006.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c15/s15.005/b">
<num value="b">(b)</num>
<chapeau>A county clerk may:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c15/s15.005/1">
<num value="1">(1)</num>
<content>receive, index, store, archive, and transmit electronic documents;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c15/s15.005/2">
<num value="2">(2)</num>
<content>provide for access to, and for search and retrieval of, documents and information by electronic means;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c15/s15.005/3">
<num value="3">(3)</num>
<content>convert paper documents accepted for recording into electronic form;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c15/s15.005/4">
<num value="4">(4)</num>
<content>convert into electronic form information recorded before the county clerk began to record electronic documents;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c15/s15.005/5">
<num value="5">(5)</num>
<content>accept electronically any fee or tax that the county clerk is authorized to collect; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c15/s15.005/6">
<num value="6">(6)</num>
<content>agree with other officials of a state, a political subdivision of a state, or the United States on procedures or processes to facilitate the electronic satisfaction of prior approvals and conditions precedent to recording and the electronic payment of fees and taxes.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t3/c15/s15.005/c">
<num value="c">(c)</num>
<chapeau>A county clerk who accepts electronic documents for recording shall:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c15/s15.005/1">
<num value="1">(1)</num>
<content>continue to accept paper documents; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c15/s15.005/2">
<num value="2">(2)</num>
<content>place entries for paper documents and electronic documents in the same index.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 699 (S.B. 335), Sec. 1, eff. September 1, 2005.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c15/s15.006">
<num value="15.006">Sec. 15.006.</num>
<heading>UNIFORM STANDARDS</heading>
<subsection identifier="/us/tx/pr/t3/c15/s15.006/a">
<num value="a">(a)</num>
<content>The Texas State Library and Archives Commission by rule shall adopt standards to implement this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t3/c15/s15.006/b">
<num value="b">(b)</num>
<chapeau>To keep the standards and practices of county clerks in this state in harmony with the standards and practices of recording offices in other jurisdictions that enact a law that is substantially similar to this chapter and to keep the technology used by county clerks in this state compatible with technology used by recording offices in other jurisdictions that enact a law that is substantially similar to this chapter, the Texas State Library and Archives Commission, so far as is consistent with the purposes, policies, and provisions of this chapter, in adopting, amending, and repealing standards shall consider:</chapeau>
<paragraph identifier="/us/tx/pr/t3/c15/s15.006/1">
<num value="1">(1)</num>
<content>standards and practices of other jurisdictions;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c15/s15.006/2">
<num value="2">(2)</num>
<content>the most recent standards promulgated by national standard-setting bodies, such as the Property Records Industry Association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c15/s15.006/3">
<num value="3">(3)</num>
<content>the views of interested persons and governmental officials and entities; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t3/c15/s15.006/4">
<num value="4">(4)</num>
<content>the needs of counties of varying size, population, and resources.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 699 (S.B. 335), Sec. 1, eff. September 1, 2005.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c15/s15.007">
<num value="15.007">Sec. 15.007.</num>
<heading>RELATION TO ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE ACT</heading>
<content>This chapter modifies, limits, and supersedes the federal Electronic Signatures in Global and National Commerce Act (15 U.S.C. Section 7001 et seq.) but does not modify, limit, or supersede Section 101(c) of that Act (15 U.S.C. Section 7001(c)) or authorize electronic delivery of any of the notices described in Section 103(b) of that Act (15 U.S.C. Section 7003(b)).</content>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 699 (S.B. 335), Sec. 1, eff. September 1, 2005.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t3/c15/s15.008">
<num value="15.008">Sec. 15.008.</num>
<heading>CONSTRUCTION WITH OTHER LAW</heading>
<content>Except as otherwise provided by this chapter, Chapter 195, Local Government Code, and the rules adopted by the Texas State Library and Archives Commission under that chapter apply to electronic documents filed in accordance with this chapter.</content>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 699 (S.B. 335), Sec. 1, eff. September 1, 2005.</sourceCredit>
</section>
</chapter>
<num value="4">TITLE 4.</num>
<heading>ACTIONS AND REMEDIES</heading>
<chapter identifier="/us/tx/pr/t4/c21">
<num value="21">CHAPTER 21.</num>
<heading>EMINENT DOMAIN</heading>
<subchapter identifier="/us/tx/pr/t4/c21/scA">
<num value="A">SUBCHAPTER A.</num>
<heading>JURISDICTION</heading>
<section identifier="/us/tx/pr/t4/c21/scA/s21.001">
<num value="21.001">Sec. 21.001.</num>
<heading>CONCURRENT JURISDICTION</heading>
<content>District courts and county courts at law have concurrent jurisdiction in eminent domain cases. A county court has no jurisdiction in eminent domain cases.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3498, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scA/s21.002">
<num value="21.002">Sec. 21.002.</num>
<heading>TRANSFER OF CASES</heading>
<content>If an eminent domain case is pending in a county court at law and the court determines that the case involves an issue of title or any other matter that cannot be fully adjudicated in that court, the judge shall transfer the case to a district court.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3498, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scA/s21.003">
<num value="21.003">Sec. 21.003.</num>
<heading>DISTRICT COURT AUTHORITY</heading>
<chapeau>A district court may determine all issues, including the authority to condemn property and the assessment of damages, in any suit:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c21/scA/s21.003/1">
<num value="1">(1)</num>
<content>in which this state, a political subdivision of this state, a person, an association of persons, or a corporation is a party; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scA/s21.003/2">
<num value="2">(2)</num>
<content>that involves a claim for property or for damages to property occupied by the party under the party's eminent domain authority or for an injunction to prevent the party from entering or using the property under the party's eminent domain authority.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3498, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t4/c21/scB">
<num value="B">SUBCHAPTER B.</num>
<heading>PROCEDURE</heading>
<section identifier="/us/tx/pr/t4/c21/scB/s21.0101">
<num value="21.0101">Sec. 21.0101.</num>
<heading>EFFECT OF CHAPTER ON SURVEY ACCESS RIGHTS</heading>
<content>Nothing in this chapter prevents an entity from seeking survey access rights as provided by law.</content>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 826 (H.B. 2730), Sec. 5, eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scB/s21.011">
<num value="21.011">Sec. 21.011.</num>
<heading>STANDARD PROCEDURE</heading>
<content>Exercise of the eminent domain authority in all cases is governed by Sections 21.012 through 21.016 of this code.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3498, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scB/s21.0111">
<num value="21.0111">Sec. 21.0111.</num>
<heading>DISCLOSURE OF CERTAIN INFORMATION REQUIRED; INITIAL OFFER</heading>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.0111/a">
<num value="a">(a)</num>
<content>An entity with eminent domain authority that wants to acquire real property for a public use shall, by certified mail, return receipt requested, disclose to the property owner at the time an offer to purchase or lease the property is made any and all appraisal reports produced or acquired by the entity relating specifically to the owner's property and prepared in the 10 years preceding the date of the offer.</content>
<continuation>(a-1) An entity seeking to acquire real property through the use of eminent domain shall, not later than the third business day before the date of a special commissioner's hearing, disclose to the property owner any and all current and existing appraisal reports produced or acquired by the entity relating specifically to the owner's property and used in determining the entity's opinion of value, if an appraisal report is to be used at the hearing.</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.0111/b">
<num value="b">(b)</num>
<chapeau>A property owner shall disclose to the entity seeking to acquire the property any and all current and existing appraisal reports produced or acquired by the property owner relating specifically to the owner's property and used in determining the owner's opinion of value. Such disclosure shall take place not later than the earlier of:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.0111/1">
<num value="1">(1)</num>
<content>the 10th day after the date of receipt of an appraisal report; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.0111/2">
<num value="2">(2)</num>
<content>the third business day before the date of a special commissioner's hearing if an appraisal report is to be used at the hearing.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.0111/c">
<num value="c">(c)</num>
<chapeau>An entity seeking to acquire property that the entity is authorized to obtain through the use of eminent domain may not include a confidentiality provision in an offer or agreement to acquire the property. The entity shall inform the owner of the property that the owner has the right to:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.0111/1">
<num value="1">(1)</num>
<content>discuss any offer or agreement regarding the entity's acquisition of the property with others; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.0111/2">
<num value="2">(2)</num>
<content>keep the offer or agreement confidential, unless the offer or agreement is subject to Chapter 552, Government Code.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.0111/d">
<num value="d">(d)</num>
<content>A subsequent bona fide purchaser for value from the acquiring entity may conclusively presume that the requirement of this section has been met. This section does not apply to acquisitions of real property for which an entity does not have eminent domain authority.</content>
</subsection>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 566, Sec. 1, eff. Aug. 28, 1995.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 81 (S.B. 18), Sec. 7, eff. September 1, 2011.
Acts 2021, 87th Leg., R.S., Ch. 54 (S.B. 721), Sec. 1, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scB/s21.0112">
<num value="21.0112">Sec. 21.0112.</num>
<heading>PROVISION OF LANDOWNER'S BILL OF RIGHTS STATEMENT REQUIRED</heading>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.0112/a">
<num value="a">(a)</num>
<content>Not later than the seventh day before the date a governmental or private entity with eminent domain authority makes a final offer to a property owner to acquire real property, the entity must send by first-class mail or otherwise provide a landowner's bill of rights statement provided by Section 402.031, Government Code, to the last known address of the person in whose name the property is listed on the most recent tax roll of any appropriate taxing unit authorized by law to levy property taxes against the property. In addition to the other requirements of this subsection, an entity with eminent domain authority shall provide a copy of the landowner's bill of rights statement to a landowner before or at the same time as the entity first represents in any manner to the landowner that the entity possesses eminent domain authority.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.0112/b">
<num value="b">(b)</num>
<chapeau>The statement must be:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.0112/1">
<num value="1">(1)</num>
<content>printed in an easily readable font and type size; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.0112/2">
<num value="2">(2)</num>
<content>if the entity is a governmental entity, made available on the Internet website of the entity if technologically feasible.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2007, 80th Leg., R.S., Ch. 1201 (H.B. 1495), Sec. 3, eff. February 1, 2008.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1145 (H.B. 2685), Sec. 1, eff. January 15, 2010.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scB/s21.0113">
<num value="21.0113">Sec. 21.0113.</num>
<heading>BONA FIDE OFFER REQUIRED</heading>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.0113/a">
<num value="a">(a)</num>
<content>An entity with eminent domain authority that wants to acquire real property for a public use must make a bona fide offer to acquire the property from the property owner voluntarily.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.0113/b">
<num value="b">(b)</num>
<chapeau>An entity with eminent domain authority has made a bona fide offer if:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.0113/1">
<num value="1">(1)</num>
<chapeau>an initial offer is made in writing to a property owner that includes:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0113/A">
<num value="A">(A)</num>
<content>a copy of the landowner's bill of rights statement prescribed by Section 402.031, Government Code, including the addendum prescribed by Section 402.031(c-1), Government Code, if applicable;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0113/B">
<num value="B">(B)</num>
<content>a statement, in bold print and a larger font than the other portions of the offer, indicating whether the compensation being offered includes:</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.0113/i">
<num value="i">(i)</num>
<chapeau>damages to the remainder, if any, of the property owner's remaining property; or</chapeau>
<clause identifier="/us/tx/pr/t4/c21/scB/s21.0113/ii">
<num value="ii">(ii)</num>
<content>an appraisal of the property, including damages to the remainder, if any, prepared by a certified appraiser certified to practice as a certified general appraiser under Chapter 1103, Occupations Code;</content>
</clause>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0113/C">
<num value="C">(C)</num>
<content>an instrument of conveyance, provided that if the entity is a private entity as defined by Section 21.0114(a), the instrument must comply with Section 21.0114, as applicable, unless:</content>
</subparagraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.0113/i">
<num value="i">(i)</num>
<chapeau>the entity has previously provided an instrument complying with Section 21.0114;</chapeau>
<clause identifier="/us/tx/pr/t4/c21/scB/s21.0113/ii">
<num value="ii">(ii)</num>
<content>the property owner desires to use an instrument different than one complying with Section 21.0114 and consents in writing to use a different instrument; or</content>
</clause>
<clause identifier="/us/tx/pr/t4/c21/scB/s21.0113/iii">
<num value="iii">(iii)</num>
<content>the property owner provided the entity with the instrument prior to the issuance of the initial offer; and</content>
</clause>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0113/D">
<num value="D">(D)</num>
<content>the name and telephone number of a representative of the entity who is:</content>
</subparagraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.0113/i">
<num value="i">(i)</num>
<chapeau>an employee of the entity;</chapeau>
<clause identifier="/us/tx/pr/t4/c21/scB/s21.0113/ii">
<num value="ii">(ii)</num>
<content>an employee of an affiliate providing services on behalf of the entity;</content>
</clause>
<clause identifier="/us/tx/pr/t4/c21/scB/s21.0113/iii">
<num value="iii">(iii)</num>
<content>a legal representative of the entity; or</content>
</clause>
<clause identifier="/us/tx/pr/t4/c21/scB/s21.0113/iv">
<num value="iv">(iv)</num>
<content>if the entity does not have employees, an individual designated to represent the day-to-day operations of the entity;</content>
</clause>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.0113/2">
<num value="2">(2)</num>
<content>a final offer is made in writing to the property owner;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.0113/3">
<num value="3">(3)</num>
<content>the final offer is made on or after the 30th day after the date on which the entity makes a written initial offer to the property owner;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.0113/4">
<num value="4">(4)</num>
<content>before making a final offer, the entity obtains a written appraisal from a certified appraiser of the value of the property being acquired and the damages, if any, to any of the property owner's remaining property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.0113/5">
<num value="5">(5)</num>
<content>the final offer is equal to or greater than the amount of the written appraisal obtained by the entity;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.0113/6">
<num value="6">(6)</num>
<chapeau>the following items are included with the final offer or have been previously provided to the owner by the entity:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0113/A">
<num value="A">(A)</num>
<content>a copy of the written appraisal;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0113/B">
<num value="B">(B)</num>
<content>a copy of the deed, easement, or other instrument conveying the property sought to be acquired; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0113/C">
<num value="C">(C)</num>
<content>the landowner's bill of rights statement prescribed by Section 21.0112; and</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.0113/7">
<num value="7">(7)</num>
<content>the entity provides the property owner with at least 14 days to respond to the final offer and the property owner does not agree to the terms of the final offer within that period.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 81 (S.B. 18), Sec. 8, eff. September 1, 2011.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 826 (H.B. 2730), Sec. 6, eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scB/s21.0114">
<num value="21.0114">Sec. 21.0114.</num>
<heading>REQUIRED TERMS FOR INSTRUMENTS OF CONVEYANCE OF CERTAIN EASEMENTS</heading>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.0114/a">
<num value="a">(a)</num>
<chapeau>In this section, "private entity":</chapeau>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/1">
<num value="1">(1)</num>
<chapeau>means:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/A">
<num value="A">(A)</num>
<content>a for-profit entity, as defined by Section 1.002, Business Organizations Code, however organized, including an affiliate or subsidiary, authorized to exercise the power of eminent domain to acquire private property for public use; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/B">
<num value="B">(B)</num>
<content>a corporation organized under Chapter 67, Water Code, that has a for-profit entity, however organized, as the sole or majority member; and</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/2">
<num value="2">(2)</num>
<content>does not include an entity governed by the Natural Gas Act (15 U.S.C. Section 717 et seq.), unless the entity seeks to acquire property under this chapter.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.0114/b">
<num value="b">(b)</num>
<chapeau>This section:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/1">
<num value="1">(1)</num>
<content>applies only to a deed, agreement, or other instrument of conveyance for a pipeline right-of-way easement or an electric transmission line right-of-way easement that is included with an offer made under this chapter to acquire a property interest for a public use; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/2">
<num value="2">(2)</num>
<chapeau>does not apply in relation to:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/A">
<num value="A">(A)</num>
<content>a pipeline or appurtenance that is:</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.0114/i">
<num value="i">(i)</num>
<chapeau>downstream of the point where natural gas is measured and custody is transferred from a transmission pipeline to a gas local distribution company for distribution to end-use customers; or</chapeau>
<clause identifier="/us/tx/pr/t4/c21/scB/s21.0114/ii">
<num value="ii">(ii)</num>
<content>at a location where a gas utility taps a transmission pipeline to a city gate, provided that the pipeline does not exceed 100 feet; or</content>
</clause>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/B">
<num value="B">(B)</num>
<content>an electric power line that operates below 60 kilovolts.</content>
</subparagraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.0114/c">
<num value="c">(c)</num>
<chapeau>Except as provided by Subsections (d), (e), and (f), a deed, agreement, or other instrument of conveyance provided to a property owner by a private entity with eminent domain authority to acquire the property interest to be conveyed must address the following general terms, as applicable:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/1">
<num value="1">(1)</num>
<chapeau>if the instrument conveys a pipeline right-of-way easement or an easement related to pipeline appurtenances:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/A">
<num value="A">(A)</num>
<content>the maximum number of pipelines that may be installed under the instrument for a pipeline right-of-way;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/B">
<num value="B">(B)</num>
<content>a description of the types of pipeline appurtenances that are authorized to be installed under the instrument for pipeline-related appurtenances, such as pipes, valves, compressors, pumps, meters, pigging stations, dehydration facilities, electric facilities, communication facilities, and any other appurtenances that may be necessary or desirable in connection with a pipeline;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/C">
<num value="C">(C)</num>
<content>the maximum diameter, excluding any protective coating or wrapping, of each pipeline to be initially installed under the instrument for a pipeline right-of-way;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/D">
<num value="D">(D)</num>
<content>the type or category of substances permitted to be transported through each pipeline to be installed under the instrument;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/E">
<num value="E">(E)</num>
<content>a general description of any aboveground equipment or facility the private entity intends to install, maintain, or operate under the instrument for a pipeline easement on the surface of the easement;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/F">
<num value="F">(F)</num>
<content>a description or illustration of the location of the easement, including a metes and bounds or centerline description, plat, or aerial or other map-based depiction of the location of the easement on the property;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/G">
<num value="G">(G)</num>
<content>the maximum width of the easement under the instrument;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/H">
<num value="H">(H)</num>
<content>the minimum depth at which each pipeline to be installed under the instrument for a pipeline right-of-way will initially be installed;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/I">
<num value="I">(I)</num>
<content>a provision identifying whether the private entity intends to double-ditch areas of the pipeline easement that are not installed by boring or horizontal directional drilling;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/J">
<num value="J">(J)</num>
<content>a provision requiring the private entity to provide written notice to the property owner at the last known address of the person in whose name the property is listed on the most recent tax roll of any taxing unit authorized to levy property taxes against the property if and when the private entity assigns the interest under the instrument to another entity, provided that the provision does not require notice by the private entity for assignment to an affiliate or to a successor through merger, consolidation, or other sale or transfer of all or substantially all of its assets and businesses;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/K">
<num value="K">(K)</num>
<content>a provision describing whether the easement rights are exclusive or nonexclusive;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/L">
<num value="L">(L)</num>
<content>a provision limiting the private entity's right to grant to a third party access to the easement area for a purpose that is not related to the construction, safety, repair, maintenance, inspection, replacement, operation, or removal of each pipeline to be installed under the instrument and of pipeline appurtenances to be installed under the instrument;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/M">
<num value="M">(M)</num>
<content>a provision regarding the property owner's right to recover actual monetary damages arising from the construction and installation of each pipeline to be installed under the instrument, or a statement that the consideration for the instrument includes any monetary damages arising from the construction and installation of each pipeline to be installed under the instrument;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/N">
<num value="N">(N)</num>
<content>a provision regarding the property owner's right after initial construction and installation of each pipeline to be installed under the instrument to actual monetary damages arising from the repair, maintenance, inspection, replacement, operation, or removal of each pipeline to be installed under the instrument, or a statement that consideration for the instrument includes any monetary damages arising from the repair, maintenance, inspection, replacement, operation, or removal of each pipeline to be installed under the instrument;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/O">
<num value="O">(O)</num>
<content>a provision:</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.0114/i">
<num value="i">(i)</num>
<chapeau>regarding the removal, cutting, use, repair, and replacement of gates and fences that cross the easement or that will be used by the private entity under the instrument; or</chapeau>
<clause identifier="/us/tx/pr/t4/c21/scB/s21.0114/ii">
<num value="ii">(ii)</num>
<content>providing for the payment for any damage caused by the private entity to gates and fences described by Subparagraph (i), if any, to the extent that the gates or fences are not restored or paid for as part of the consideration paid for the instrument;</content>
</clause>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/P">
<num value="P">(P)</num>
<content>a provision:</content>
</subparagraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.0114/i">
<num value="i">(i)</num>
<chapeau>regarding the private entity's obligation to restore the pipeline easement area and the property owner's remaining property, if any, used by the private entity to as near to original condition as is reasonably practicable and to maintain the easement in a manner consistent with the purposes for which the easement will be used by the private entity under the instrument; or</chapeau>
<clause identifier="/us/tx/pr/t4/c21/scB/s21.0114/ii">
<num value="ii">(ii)</num>
<content>providing for the private entity to reimburse the property owner for actual monetary damages incurred by the property owner that arise from damage to the pipeline easement area or the property owner's remaining property, if any, to the extent caused by the private entity and not restored or paid for as part of the consideration for the instrument; and</content>
</clause>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/Q">
<num value="Q">(Q)</num>
<content>a provision describing the private entity's rights of ingress, egress, entry, and access on, to, over, and across the property owner's property under the instrument;</content>
</subparagraph>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/2">
<num value="2">(2)</num>
<chapeau>if the instrument conveys an electric transmission line right-of-way easement:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/A">
<num value="A">(A)</num>
<content>a general description of the uses of the surface of the property to be encumbered by the easement the entity intends to acquire;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/B">
<num value="B">(B)</num>
<content>a description or illustration of the location of the easement, including a metes and bounds or centerline description, plat, or aerial or other map-based depiction of the location of the easement on the property;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/C">
<num value="C">(C)</num>
<content>the maximum width of the easement under the instrument;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/D">
<num value="D">(D)</num>
<content>the manner in which the entity will access the easement under the instrument;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/E">
<num value="E">(E)</num>
<content>a provision limiting the private entity's right to grant to a third party access to the easement area for a purpose that is not related to the construction, safety, repair, maintenance, inspection, replacement, operation, or removal of the electric and appurtenant facilities installed under the instrument;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/F">
<num value="F">(F)</num>
<content>a provision regarding the property owner's right to recover actual monetary damages arising from the construction, operation, repair, maintenance, inspection, replacement, and future removal of lines and support facilities after initial construction in the easement, if any, or a statement that the initial consideration for the easement instrument includes such damages;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/G">
<num value="G">(G)</num>
<content>a provision:</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.0114/i">
<num value="i">(i)</num>
<chapeau>regarding the removal, cutting, use, repair, and replacement of gates and fences that cross the easement or that will be used by the private entity under the instrument; or</chapeau>
<clause identifier="/us/tx/pr/t4/c21/scB/s21.0114/ii">
<num value="ii">(ii)</num>
<content>providing for the payment for any damage caused by the private entity to gates and fences described by Subparagraph (i), if any, to the extent that the gates or fences are not restored or paid for as part of the consideration for the instrument;</content>
</clause>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/H">
<num value="H">(H)</num>
<content>a provision regarding the private entity's obligation to restore the easement area and the property owner's remaining property to the easement area's and the remaining property's original contours and grades, to the extent reasonably practicable, unless the safety or operational needs of the private entity and the electric facilities would be impaired, and:</content>
</subparagraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.0114/i">
<num value="i">(i)</num>
<chapeau>a provision regarding the entity's obligation to restore the easement area and the property owner's remaining property following any future damages directly attributed to the use of the easement by the private entity, to the extent reasonably practicable, unless the safety or operational needs of the private entity and the electric facilities would be impaired; or</chapeau>
<clause identifier="/us/tx/pr/t4/c21/scB/s21.0114/ii">
<num value="ii">(ii)</num>
<content>a provision that the consideration for the easement instrument includes damages as described by Subparagraph (i) to the easement area and the property owner's remaining property;</content>
</clause>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/I">
<num value="I">(I)</num>
<content>a provision describing whether the easement rights are exclusive, nonexclusive, or otherwise limited under the terms of the instrument; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/J">
<num value="J">(J)</num>
<content>a prohibition against the assignment of the entity's interest in the property to an assignee that will not operate as a utility subject to the jurisdiction of the Public Utility Commission of Texas or the Federal Energy Regulatory Commission without written notice to the property owner at the last known address of the person in whose name the property is listed on the most recent tax roll of any taxing unit authorized to levy property taxes against the property;</content>
</subparagraph>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/3">
<num value="3">(3)</num>
<content>a prohibition against any use by the private entity of the property rights being conveyed by the instrument, other than a use stated in the instrument, without the express written consent of the property owner; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/4">
<num value="4">(4)</num>
<content>a provision that the terms of the instrument will bind the successors and assigns of the property owner and private entity.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.0114/d">
<num value="d">(d)</num>
<chapeau>A private entity shall notify the property owner that the property owner may negotiate for the following general terms to be included in a deed, agreement, or other instrument of conveyance described by Subsection (c):</chapeau>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/1">
<num value="1">(1)</num>
<chapeau>a provision regarding the property owner's right to negotiate to recover damages, or a statement that the consideration for the instrument includes damages, for:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/A">
<num value="A">(A)</num>
<content>damage to certain vegetation; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/B">
<num value="B">(B)</num>
<content>the income loss from disruption of existing agricultural production or existing leases based on verifiable loss or lease payments; and</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/2">
<num value="2">(2)</num>
<chapeau>a provision:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/A">
<num value="A">(A)</num>
<content>requiring the private entity to maintain at all times while the private entity uses the easement, including during construction and operations on the easement, commercial liability insurance or self-insurance:</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.0114/i">
<num value="i">(i)</num>
<chapeau>issued by an insurer authorized to issue liability insurance in this state, if maintaining commercial liability insurance; and</chapeau>
<clause identifier="/us/tx/pr/t4/c21/scB/s21.0114/ii">
<num value="ii">(ii)</num>
<content>insuring the property owner against liability for personal injuries and property damage sustained by any person to the extent caused by the negligence of the private entity or the private entity's agents or contractors and to the extent allowed by law; or</content>
</clause>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/B">
<num value="B">(B)</num>
<content>if the private entity is subject to the electric transmission cost-of-service rate jurisdiction of the Public Utility Commission of Texas or has a net worth of at least $25 million, requiring the private entity to maintain self-insurance or commercial liability insurance at levels approved by the Public Utility Commission of Texas in the entity's most recent transmission cost-of-service base rate proceeding.</content>
</subparagraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.0114/e">
<num value="e">(e)</num>
<chapeau>A private entity or the property owner may, after the entity provides an instrument in compliance with Section 21.0113(b)(1)(C):</chapeau>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/1">
<num value="1">(1)</num>
<content>negotiate for and agree to terms and conditions not required by Subsection (c), including terms and conditions that differ from or are not included in a subsequent condemnation petition; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.0114/2">
<num value="2">(2)</num>
<content>negotiate for and agree to a deed, agreement, or other instrument of conveyance that does not include or includes terms that differ from the terms required by Subsection (c).</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.0114/f">
<num value="f">(f)</num>
<content>Except as provided by this subsection, this section does not prohibit a private entity or the property owner from negotiating for or agreeing to amend, alter, or omit the terms required by Subsection (c) at any time after the private entity first provides a deed, agreement, or other instrument containing the required general terms to the property owner, whether before or at the same time that the entity makes an initial offer to the property owner. A private entity that changes the terms required by Subsection (c) must provide a copy of the amended deed, agreement, or other instrument of conveyance to the property owner not later than the seventh day before the date the private entity files a condemnation petition relating to the property unless the parties agree in writing to waive the notice.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.0114/g">
<num value="g">(g)</num>
<content>A private entity that changes or amends a deed, agreement, or other instrument has satisfied the requirements of Section 21.0113 if the requirements were previously satisfied as part of the initial offer made in accordance with Section 21.0113(b)(1)(C).</content>
</subsection>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 826 (H.B. 2730), Sec. 7, eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scB/s21.012">
<num value="21.012">Sec. 21.012.</num>
<heading>CONDEMNATION PETITION</heading>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.012/a">
<num value="a">(a)</num>
<content>If an entity with eminent domain authority wants to acquire real property for public use but is unable to agree with the owner of the property on the amount of damages, the entity may begin a condemnation proceeding by filing a petition in the proper court.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.012/b">
<num value="b">(b)</num>
<chapeau>The petition must:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.012/1">
<num value="1">(1)</num>
<content>describe the property to be condemned;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.012/2">
<num value="2">(2)</num>
<content>state with specificity the public use for which the entity intends to acquire the property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.012/3">
<num value="3">(3)</num>
<content>state the name of the owner of the property if the owner is known;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.012/4">
<num value="4">(4)</num>
<content>state that the entity and the property owner are unable to agree on the damages;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.012/5">
<num value="5">(5)</num>
<content>if applicable, state that the entity provided the property owner with the landowner's bill of rights statement in accordance with Section 21.0112; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.012/6">
<num value="6">(6)</num>
<content>state that the entity made a bona fide offer to acquire the property from the property owner voluntarily as provided by Section 21.0113.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.012/c">
<num value="c">(c)</num>
<content>An entity that files a petition under this section must concurrently provide a copy of the petition to the property owner by certified mail, return receipt requested, and first class mail. If the entity has received written notice that the property owner is represented by counsel, the entity must also concurrently provide a copy of the petition to the property owner's attorney by first class mail, commercial delivery service, fax, or e-mail.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3498, ch. 576, Sec. 1, eff. Jan. 1, 1984.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 1201 (H.B. 1495), Sec. 4, eff. February 1, 2008.
Acts 2011, 82nd Leg., R.S., Ch. 81 (S.B. 18), Sec. 9, eff. September 1, 2011.
Acts 2021, 87th Leg., R.S., Ch. 826 (H.B. 2730), Sec. 8, eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scB/s21.0121">
<num value="21.0121">Sec. 21.0121.</num>
<heading>CONDEMNATION TO ACQUIRE WATER RIGHTS</heading>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.0121/a">
<num value="a">(a)</num>
<chapeau>In addition to the contents prescribed by Section 21.012(b), a condemnation petition filed by a political subdivision of this state for the purpose of acquiring rights to groundwater or surface water must state that the facts to be proven are that the political subdivision has:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.0121/1">
<num value="1">(1)</num>
<content>prepared a drought contingency plan;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.0121/2">
<num value="2">(2)</num>
<content>developed and implemented a water conservation plan that will result in the highest practicable levels of water conservation and efficiency achievable in the political subdivision's jurisdiction;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.0121/3">
<num value="3">(3)</num>
<content>made a bona fide good faith effort to obtain practicable alternative water supplies to the water rights the political subdivision proposes to condemn;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.0121/4">
<num value="4">(4)</num>
<content>made a bona fide good faith effort to acquire the rights to the water the political subdivision proposes to condemn by voluntary purchase or lease; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.0121/5">
<num value="5">(5)</num>
<content>made a showing that the political subdivision needs the water rights to provide for the domestic needs of the political subdivision within the next 10-year period.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.0121/b">
<num value="b">(b)</num>
<content>A court shall deny the right to condemn unless the political subdivision proves to the court that the political subdivision has met the requirements of Subsection (a).</content>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 1032, Sec. 1, eff. Sept. 1, 2003.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scB/s21.013">
<num value="21.013">Sec. 21.013.</num>
<heading>VENUE; FEES AND PROCESSING FOR SUIT FILED IN DISTRICT COURT</heading>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.013/a">
<num value="a">(a)</num>
<content>The venue of a condemnation proceeding is the county in which the owner of the property being condemned resides if the owner resides in a county in which part of the property is located. Otherwise, the venue of a condemnation proceeding is any county in which at least part of the property is located.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.013/b">
<num value="b">(b)</num>
<content>Except where otherwise provided by law, a party initiating a condemnation proceeding in a county in which there is one or more county courts at law with jurisdiction shall file the petition with any clerk authorized to handle such filings for that court or courts.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.013/c">
<num value="c">(c)</num>
<content>A party initiating a condemnation proceeding in a county in which there is not a county court at law must file the condemnation petition with the district clerk. The filing fee shall be due at the time of filing.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.013/d">
<num value="d">(d)</num>
<content>District and county clerks shall assign an equal number of eminent domain cases in rotation to each court with jurisdiction that the clerk serves.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3499, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1993, 73rd Leg., ch. 760, Sec. 1, eff. Sept. 1, 1993; Acts 1999, 76th Leg., ch. 756, Sec. 1, eff. June 18, 1999.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 472 (S.B. 41), Sec. 4.09, eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scB/s21.014">
<num value="21.014">Sec. 21.014.</num>
<heading>SPECIAL COMMISSIONERS</heading>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.014/a">
<num value="a">(a)</num>
<content>The judge of a court in which a condemnation petition is filed or to which an eminent domain case is assigned shall, not later than the 30th calendar day after the petition is filed, appoint three disinterested real property owners who reside in the county as special commissioners to assess the damages of the owner of the property being condemned and appoint two disinterested real property owners who reside in the county as alternate special commissioners. The judge appointing the special commissioners shall give preference to persons agreed on by the parties, if any, before the court appoints the special commissioners. The judge shall provide the names and contact information of the special commissioners and alternate special commissioners to the parties. Each party shall have until the later of 10 calendar days after the date of the order appointing the special commissioners or 20 days after the date the petition was filed to strike one of the three special commissioners. Any strike of a special commissioner must be filed electronically with electronic service provided concurrently to any represented party and first class mail service provided concurrently to any other party. If a person fails to serve as a special commissioner or is struck by a party to the suit in accordance with this subsection, an alternate special commissioner shall serve as a replacement for the special commissioner based on the order that the alternate special commissioners are listed in the initial order of appointment. If a party exercises a strike, the other party may, by the later of the third day after the date of filing of the initial strike or the date of the initial strike deadline, strike a special commissioner from the resulting panel, provided the other party has not earlier exercised a strike.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.014/b">
<num value="b">(b)</num>
<content>The special commissioners shall swear to assess damages fairly, impartially, and according to the law.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.014/c">
<num value="c">(c)</num>
<content>Special commissioners may compel the attendance of witnesses and the production of testimony, administer oaths, and punish for contempt in the same manner as a county judge.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.014/d">
<num value="d">(d)</num>
<content>Each party in an eminent domain proceeding is entitled to a copy of the court's order appointing special commissioners under Subsection (a). The court must promptly provide the signed order to the party initiating the condemnation proceeding and that party must provide a copy of the signed order to the property owner and each other party by certified mail, return receipt requested. If the entity has received written notice that the property owner is represented by counsel, the party initiating the condemnation proceeding must concurrently provide a copy of the signed order to the property owner's attorney by first class mail, commercial delivery service, fax, or e-mail.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3499, ch. 576, Sec. 1, eff. Jan. 1, 1984.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 81 (S.B. 18), Sec. 10, eff. September 1, 2011.
Acts 2021, 87th Leg., R.S., Ch. 826 (H.B. 2730), Sec. 9, eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scB/s21.015">
<num value="21.015">Sec. 21.015.</num>
<heading>HEARING</heading>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.015/a">
<num value="a">(a)</num>
<content>The special commissioners in an eminent domain proceeding shall promptly schedule a hearing for the parties at the earliest practical time but may not schedule a hearing to assess damages before the 20th day after the date the special commissioners were appointed. The special commissioners shall schedule a hearing for the parties at a place that is as near as practical to the property being condemned or at the county seat of the county in which the proceeding is being held.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.015/b">
<num value="b">(b)</num>
<content>After notice of the hearing has been served, the special commissioners shall hear the parties at the scheduled time and place or at any other time or place to which they may adjourn the hearing.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3500, ch. 576, Sec. 1, eff. Jan. 1, 1984.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 81 (S.B. 18), Sec. 11, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scB/s21.016">
<num value="21.016">Sec. 21.016.</num>
<heading>NOTICE</heading>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.016/a">
<num value="a">(a)</num>
<content>Each party in an eminent domain proceeding is entitled to written notice issued by the special commissioners informing the party of the time and place of the hearing.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.016/b">
<num value="b">(b)</num>
<content>Notice of the hearing must be served on a party not later than the 20th day before the day set for the hearing. A person competent to testify may serve the notice.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.016/c">
<num value="c">(c)</num>
<content>A person who serves a notice shall return the original notice to the special commissioners on or before the day set for hearing. The person shall write a return of service on the notice that states how and when it was served.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.016/d">
<num value="d">(d)</num>
<chapeau>Notice may be served:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.016/1">
<num value="1">(1)</num>
<content>by delivering a copy of the notice to the party or to the party's agent or attorney;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.016/2">
<num value="2">(2)</num>
<content>if the property being condemned belongs to a deceased's estate or to a minor or other legally disabled person and the person or estate has a legal representative, by delivering a copy of the notice to the legal representative; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.016/3">
<num value="3">(3)</num>
<content>if the property being condemned belongs to a nonresident of this state and there has been no personal service on the owner, if the identity or the residence of the property owner is unknown, or if the property owner avoids service of notice by hiding, by publication in the same manner as service of citation by publication in other civil cases in the district courts or county courts at law.</content>
</paragraph>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3500, ch. 576, Sec. 1, eff. Jan. 1, 1984.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 81 (S.B. 18), Sec. 12, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scB/s21.017">
<num value="21.017">Sec. 21.017.</num>
<heading>ALTERNATIVE PLEADINGS</heading>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.017/a">
<num value="a">(a)</num>
<content>This state, a political subdivision of this state, a person, an association of persons, or a corporation that is a party to a suit covered by Section 21.003 of this code by petition, cross-bill, or plea of intervention may assert a claim to the property or, alternatively, seek to condemn the property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.017/b">
<num value="b">(b)</num>
<content>A plea under this section is not an admission of an adverse party's title to the property in controversy.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3501, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scB/s21.018">
<num value="21.018">Sec. 21.018.</num>
<heading>APPEAL FROM COMMISSIONERS' FINDINGS</heading>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.018/a">
<num value="a">(a)</num>
<content>A party to a condemnation proceeding may object to the findings of the special commissioners by filing a written statement of the objections and their grounds with the court that has jurisdiction of the proceeding. The statement must be filed on or before the first Monday following the 20th day after the day the commissioners file their findings with the court.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.018/b">
<num value="b">(b)</num>
<content>If a party files an objection to the findings of the special commissioners, the court shall cite the adverse party and try the case in the same manner as other civil causes.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3501 ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scB/s21.019">
<num value="21.019">Sec. 21.019.</num>
<heading>DISMISSAL OF CONDEMNATION PROCEEDINGS</heading>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.019/a">
<num value="a">(a)</num>
<content>A party that files a condemnation petition may move to dismiss the proceedings, and the court shall conduct a hearing on the motion. However, after the special commissioners have made an award, in an effort to obtain a lower award a condemnor may not dismiss the condemnation proceedings merely to institute new proceedings that involve substantially the same condemnation against the same property owner.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.019/b">
<num value="b">(b)</num>
<content>A court that hears and grants a motion to dismiss a condemnation proceeding made by a condemnor under Subsection (a) shall make an allowance to the property owner for reasonable and necessary fees for attorneys, appraisers, and photographers and for the other expenses incurred by the property owner to the date of the hearing.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.019/c">
<num value="c">(c)</num>
<content>A court that hears and grants a motion to dismiss a condemnation proceeding made by a property owner seeking a judicial denial of the right to condemn or that otherwise renders a judgment denying the right to condemn may make an allowance to the property owner for reasonable and necessary fees for attorneys, appraisers, and photographers and for the other expenses incurred by the property owner to the date of the hearing or judgment.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3501, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1987, 70th Leg., ch. 483, Sec. 1, eff. Aug. 31, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scB/s21.0195">
<num value="21.0195">Sec. 21.0195.</num>
<heading>DISMISSAL OF CERTAIN CONDEMNATION PROCEEDINGS; TEXAS DEPARTMENT OF TRANSPORTATION</heading>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.0195/a">
<num value="a">(a)</num>
<content>This section applies only to the dismissal of a condemnation proceeding that involves the Texas Department of Transportation.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.0195/b">
<num value="b">(b)</num>
<content>The department may move to dismiss a proceeding it files, and the court shall conduct a hearing on the motion. The court may grant the motion only if the court determines that the property owner's interest will not be materially affected by the dismissal. The department may not dismiss the condemnation proceedings merely to institute new proceedings that involve substantially the same condemnation against the same property owner solely to obtain a lower condemnation award.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.0195/c">
<num value="c">(c)</num>
<content>If a court dismisses a condemnation proceeding on the motion of the department or as a result of the failure of the department to bring the proceeding properly, the court shall make an allowance to the property owner for the value of the department's use of the property while in possession of the property, any damage that the condemnation has caused to the property owner, and any expenses the property owner has incurred in connection with the condemnation, including reasonable and necessary fees for attorneys.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1171, Sec. 1.46(a), eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scB/s21.020">
<num value="21.020">Sec. 21.020.</num>
<heading>REINSTATEMENT OF CONDEMNATION PROCEEDINGS</heading>
<content>If a condemnor moves to dismiss a condemnation proceeding and subsequently files a petition to condemn substantially the same property interest from the same property owner, the court may not appoint new special commissioners but shall enter the award of the special commissioners in the first proceeding as the award in the second. The court shall award the property owner triple the amount of the expenses that were allowed the property owner prior to the dismissal of the first proceeding.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3502, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scB/s21.021">
<num value="21.021">Sec. 21.021.</num>
<heading>POSSESSION PENDING LITIGATION</heading>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.021/a">
<num value="a">(a)</num>
<chapeau>After the special commissioners have made an award in a condemnation proceeding, except as provided by Subsection (c) of this section, the condemnor may take possession of the condemned property pending the results of further litigation if the condemnor:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.021/1">
<num value="1">(1)</num>
<content>pays to the property owner the amount of damages and costs awarded by the special commissioners or deposits that amount of money with the court subject to the order of the property owner;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.021/2">
<num value="2">(2)</num>
<content>deposits with the court either the amount of money awarded by the special commissioners as damages or a surety bond in the same amount issued by a surety company qualified to do business in this state, conditioned to secure the payment of an award of damages by the court in excess of the award of the special commissioners; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.021/3">
<num value="3">(3)</num>
<content>executes a bond that has two or more good and solvent sureties approved by the judge of the court in which the proceeding is pending and conditioned to secure the payment of additional costs that may be awarded to the property owner by the trial court or on appeal.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.021/b">
<num value="b">(b)</num>
<content>A court shall hold money or a bond deposited under Subdivision (1) or (2) of Subsection (a) to secure the payment of the damages that have been or that may be awarded against the condemnor.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.021/c">
<num value="c">(c)</num>
<content>This state, a county, or a municipal corporation or an irrigation, water improvement, or water power control district created under legal authority is not required to deposit a bond or the amount equal to the award of damages under Subdivisions (2) and (3) of Subsection (a).</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.021/d">
<num value="d">(d)</num>
<content>If a condemnor deposits money with a court under Subdivision (2) of Subsection (a), the condemnor may instruct the court to deposit or invest the money in any account with or certificate or security issued by a state or national bank in this state. The court shall pay the interest that accrues from the deposit or investment to the condemnor.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3502, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 18, Sec. 1(b), eff. Oct. 2, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scB/s21.0211">
<num value="21.0211">Sec. 21.0211.</num>
<heading>PAYMENT OF AD VALOREM TAXES</heading>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.0211/a">
<num value="a">(a)</num>
<chapeau>A court may not authorize withdrawal of any money deposited under Section 21.021 unless the petitioner for the money files with the court:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.0211/1">
<num value="1">(1)</num>
<content>a tax certificate issued under Section 31.08, Tax Code, by the tax collector for each taxing unit that imposes ad valorem taxes on the condemned property showing that there are no delinquent taxes, penalties, interest, or costs owing on the condemned property or on any larger tract of which the condemned property forms a part; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.0211/2">
<num value="2">(2)</num>
<content>in the case of a whole taking that occurs after the date the ad valorem tax bill for taxes imposed by a taxing unit on the property is sent, a tax receipt issued under Section 31.075, Tax Code, by the tax collector of the taxing unit that imposes ad valorem taxes showing that the taxes on the condemned property for the current tax year, prorated under Section 26.11, Tax Code, have been paid.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.0211/b">
<num value="b">(b)</num>
<content>For purposes of Subsection (a)(2), a "case of a whole taking" means a case in which the location, size, and boundaries of the property assessed for ad valorem taxes are identical to that of the condemned property.</content>
</subsection>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 1126 (H.B. 2491), Sec. 27, eff. September 1, 2005.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scB/s21.022">
<num value="21.022">Sec. 21.022.</num>
<heading>AUTHORITY OF COURTS</heading>
<content>Laws that formerly governed the performance of functions by county clerks and judges in eminent domain proceedings are applicable to the clerks and judges of district courts and county courts at law.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3503, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scB/s21.023">
<num value="21.023">Sec. 21.023.</num>
<heading>DISCLOSURE OF INFORMATION REQUIRED AT TIME OF ACQUISITION</heading>
<chapeau>An entity with eminent domain authority shall disclose in writing to the property owner, at the time of acquisition of the property through eminent domain, that:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.023/1">
<num value="1">(1)</num>
<chapeau>the owner or the owner's heirs, successors, or assigns may be entitled to:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.023/A">
<num value="A">(A)</num>
<content>repurchase the property under Subchapter E; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.023/B">
<num value="B">(B)</num>
<content>request from the entity certain information relating to the use of the property and any actual progress made toward that use; and</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.023/2">
<num value="2">(2)</num>
<content>the repurchase price is the price paid to the owner by the entity at the time the entity acquired the property through eminent domain.</content>
</paragraph>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 1307, Sec. 1, eff. Jan. 1, 2004.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 81 (S.B. 18), Sec. 13, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scB/s21.025">
<num value="21.025">Sec. 21.025.</num>
<heading>PRODUCTION OF INFORMATION BY CERTAIN ENTITIES</heading>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.025/a">
<num value="a">(a)</num>
<chapeau>Notwithstanding any other law, an entity that is not subject to Chapter 552, Government Code, and is authorized by law to acquire private property through the use of eminent domain is required to produce information as provided by this section if the information is:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.025/1">
<num value="1">(1)</num>
<content>requested by a person who owns property that is the subject of a proposed or existing eminent domain proceeding; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.025/2">
<num value="2">(2)</num>
<content>related to the taking of the person's private property by the entity through the use of eminent domain.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.025/b">
<num value="b">(b)</num>
<content>An entity described by Subsection (a) is required under this section only to produce information relating to the condemnation of the specific property owned by the requestor as described in the request. A request under this section must contain sufficient details to allow the entity to identify the specific tract of land in relation to which the information is sought.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.025/c">
<num value="c">(c)</num>
<content>The entity shall respond to a request in accordance with the Texas Rules of Civil Procedure as if the request was made in a matter pending before a state district court.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.025/d">
<num value="d">(d)</num>
<content>Exceptions to disclosure provided by this chapter and the Texas Rules of Civil Procedure apply to the disclosure of information under this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.025/e">
<num value="e">(e)</num>
<chapeau>Jurisdiction to enforce the provisions of this section resides in:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.025/1">
<num value="1">(1)</num>
<content>the court in which the condemnation was initiated; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scB/s21.025/2">
<num value="2">(2)</num>
<chapeau>if the condemnation proceeding has not been initiated:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.025/A">
<num value="A">(A)</num>
<content>a court that would have jurisdiction over a proceeding to condemn the requestor's property; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scB/s21.025/B">
<num value="B">(B)</num>
<content>a court with eminent domain jurisdiction in the county in which the entity has its principal place of business.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scB/s21.025/f">
<num value="f">(f)</num>
<content>If the entity refuses to produce information requested in accordance with this section and the court determines that the refusal violates this section, the court may award the requestor's reasonable attorney's fees incurred to compel the production of the information.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 81 (S.B. 18), Sec. 14, eff. September 1, 2011.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t4/c21/scC">
<num value="C">SUBCHAPTER C.</num>
<heading>DAMAGES AND COSTS</heading>
<section identifier="/us/tx/pr/t4/c21/scC/s21.041">
<num value="21.041">Sec. 21.041.</num>
<heading>EVIDENCE</heading>
<chapeau>As the basis for assessing actual damages to a property owner from a condemnation, the special commissioners shall admit evidence on:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c21/scC/s21.041/1">
<num value="1">(1)</num>
<content>the value of the property being condemned;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scC/s21.041/2">
<num value="2">(2)</num>
<content>the injury to the property owner;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scC/s21.041/3">
<num value="3">(3)</num>
<content>the benefit to the property owner's remaining property; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scC/s21.041/4">
<num value="4">(4)</num>
<content>the use of the property for the purpose of the condemnation.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3504, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scC/s21.042">
<num value="21.042">Sec. 21.042.</num>
<heading>ASSESSMENT OF DAMAGES</heading>
<subsection identifier="/us/tx/pr/t4/c21/scC/s21.042/a">
<num value="a">(a)</num>
<content>The special commissioners shall assess damages in a condemnation proceeding according to the evidence presented at the hearing.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scC/s21.042/b">
<num value="b">(b)</num>
<content>If an entire tract or parcel of real property is condemned, the damage to the property owner is the local market value of the property at the time of the special commissioners' hearing.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scC/s21.042/c">
<num value="c">(c)</num>
<content>If a portion of a tract or parcel of real property is condemned, the special commissioners shall determine the damage to the property owner after estimating the extent of the injury and benefit to the property owner, including the effect of the condemnation on the value of the property owner's remaining property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scC/s21.042/d">
<num value="d">(d)</num>
<content>In estimating injury or benefit under Subsection (c), the special commissioners shall consider an injury or benefit that is peculiar to the property owner and that relates to the property owner's ownership, use, or enjoyment of the particular parcel of real property, including a material impairment of direct access on or off the remaining property that affects the market value of the remaining property, but they may not consider an injury or benefit that the property owner experiences in common with the general community, including circuity of travel and diversion of traffic. In this subsection, "direct access" means ingress and egress on or off a public road, street, or highway at a location where the remaining property adjoins that road, street, or highway.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scC/s21.042/e">
<num value="e">(e)</num>
<content>If a portion of a tract or parcel of real property is condemned for the use, construction, operation, or maintenance of the state highway system or of a county toll project described by Chapter 284, Transportation Code, that is eligible for designation as part of the state highway system, or for the use, construction, development, operation, or maintenance of an improvement or project by a metropolitan rapid transit authority created before January 1, 1980, with a principal municipality having a population of less than 1.9 million and established under Chapter 451, Transportation Code, the special commissioners shall determine the damage to the property owner regardless of whether the property owner makes a claim for damages to the remaining property. In awarding compensation or assessing the damages, the special commissioners shall consider any special and direct benefits that arise from the highway improvement or the transit authority improvement or project that are peculiar to the property owner and that relate to the property owner's ownership, use, or enjoyment of the particular parcel of remaining real property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scC/s21.042/f">
<num value="f">(f)</num>
<content>In awarding compensation or assessing damages for a condemnation by an institution of higher education, as defined by Section 61.003, Education Code, the special commissioners may not include in the compensation or damages any amount that compensates for, or is based on the present value of, an exemption from ad valorem taxation applicable to the property before its condemnation.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scC/s21.042/g">
<num value="g">(g)</num>
<content>Notwithstanding Subsection (d), if a portion of a tract or parcel of real property that, for the then current tax year was appraised for ad valorem tax purposes under a law enacted under Section 1-d or 1-d-1, Article VIII, Texas Constitution, and is outside the municipal limits or the extraterritorial jurisdiction of a municipality with a population of 5,000 or more is condemned for state highway purposes, the special commissioners shall consider the loss of reasonable access to or from the remaining property in determining the damage to the property owner.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3504, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 29, Sec. 1, eff. Oct. 2, 1984; Acts 1989, 71st Leg., ch. 734, Sec. 5, eff. June 15, 1989; Acts 1997, 75th Leg., ch. 165, Sec. 30.244, eff. Sept. 1, 1997; Acts 2001, 77th Leg., ch. 669, Sec. 117, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 1266, Sec. 1.15, eff. June 20, 2003.
Amended by:
Acts 2005, 79th Leg., Ch. 281 (H.B. 2702), Sec. 2.94, eff. June 14, 2005.
Acts 2011, 82nd Leg., R.S., Ch. 81 (S.B. 18), Sec. 15, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scC/s21.0421">
<num value="21.0421">Sec. 21.0421.</num>
<heading>ASSESSMENT OF DAMAGES: GROUNDWATER RIGHTS</heading>
<subsection identifier="/us/tx/pr/t4/c21/scC/s21.0421/a">
<num value="a">(a)</num>
<chapeau>In a condemnation proceeding initiated by a political subdivision under this chapter, the special commissioners or court shall admit evidence relating to the market value of groundwater rights as property apart from the land in addition to the local market value of the real property if:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c21/scC/s21.0421/1">
<num value="1">(1)</num>
<content>the political subdivision proposes to condemn the fee title of real property; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scC/s21.0421/2">
<num value="2">(2)</num>
<content>the special commissioners or court finds, based on evidence submitted at the hearing, that the real property may be used by the political subdivision to develop or use the rights to groundwater for a public purpose.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scC/s21.0421/b">
<num value="b">(b)</num>
<content>The evidence submitted under Subsection (a) on the market value of the groundwater rights as property apart from the land shall be based on generally accepted appraisal methods and techniques, including the methods of appraisal under Subchapter A, Chapter 23, Tax Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scC/s21.0421/c">
<num value="c">(c)</num>
<chapeau>If the special commissioners or court finds that the real property may be used by the political subdivision to develop or use the rights to groundwater for a public purpose, the special commissioners or court may assess damages to the property owner based on:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c21/scC/s21.0421/1">
<num value="1">(1)</num>
<content>the local market value of the real property, excluding the value of the groundwater in place, at the time of the hearing; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scC/s21.0421/2">
<num value="2">(2)</num>
<content>the market value of the groundwater rights as property apart from the land at the time of the hearing.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scC/s21.0421/d">
<num value="d">(d)</num>
<chapeau>In assessing damages based on the market value of groundwater rights under Subsection (c)(2), the special commissioners or court shall consider:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c21/scC/s21.0421/1">
<num value="1">(1)</num>
<content>the amount of groundwater the political subdivision can reasonably be expected to produce from the property on an annual basis;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scC/s21.0421/2">
<num value="2">(2)</num>
<content>the number of years the political subdivision can reasonably be expected to produce groundwater from the property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scC/s21.0421/3">
<num value="3">(3)</num>
<content>the quality of the groundwater;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scC/s21.0421/4">
<num value="4">(4)</num>
<content>the location of the real property in relation to the political subdivision for conveyance purposes;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scC/s21.0421/5">
<num value="5">(5)</num>
<content>any potential environmental impact of producing groundwater from the real property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scC/s21.0421/6">
<num value="6">(6)</num>
<content>whether or not the real property is located within the boundaries of a political subdivision that can regulate the production of groundwater from the real property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scC/s21.0421/7">
<num value="7">(7)</num>
<content>the cost of alternative water supplies to the political subdivision; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scC/s21.0421/8">
<num value="8">(8)</num>
<content>any other reasonable factor that affects the market value of a groundwater right.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scC/s21.0421/e">
<num value="e">(e)</num>
<chapeau>This section does not:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c21/scC/s21.0421/1">
<num value="1">(1)</num>
<content>authorize groundwater rights appraised separately from the real property under this section to be appraised separately from real property for property tax appraisal purposes; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scC/s21.0421/2">
<num value="2">(2)</num>
<content>subject real property condemned for the purpose described by Subsection (a) to an additional tax as provided by Section 23.46 or 23.55, Tax Code.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 1032, Sec. 2, eff. Sept. 1, 2003.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scC/s21.043">
<num value="21.043">Sec. 21.043.</num>
<heading>DISPLACEMENT FROM DWELLING OR PLACE OF BUSINESS</heading>
<subsection identifier="/us/tx/pr/t4/c21/scC/s21.043/a">
<num value="a">(a)</num>
<content>A property owner who is permanently physically displaced from the property owner's dwelling or place of business and who is not entitled to reimbursement for moving expenses under another law may recover, in addition to the property owner's other damages, the reasonable expenses of moving the property owner's personal property from the dwelling or place of business.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scC/s21.043/b">
<num value="b">(b)</num>
<content>A recovery under this section may not exceed the market value of the property being moved. The maximum distance of movement to be considered is 50 miles.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3504, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scC/s21.044">
<num value="21.044">Sec. 21.044.</num>
<heading>DAMAGES FROM TEMPORARY POSSESSION</heading>
<subsection identifier="/us/tx/pr/t4/c21/scC/s21.044/a">
<num value="a">(a)</num>
<content>If a court finally determines that a condemnor who has taken possession of property pending litigation did not have the right to condemn the property, the court may award to the property owner the damages that resulted from the temporary possession.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scC/s21.044/b">
<num value="b">(b)</num>
<content>The court may order the payment of damages awarded under this section from the award or other money deposited with the court. However, if the award paid to or appropriated by the property owner exceeds the court's final determination of the value of the property, the court shall order the property owner to return the excess to the condemnor.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3505, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scC/s21.045">
<num value="21.045">Sec. 21.045.</num>
<heading>TITLE ACQUIRED</heading>
<content>Except where otherwise expressly provided by law, the interest acquired by a condemnor under this chapter does not include the fee simple title to real property, either public or private. An interest acquired by a condemnor is not lost by the forfeiture or expiration of the condemnor's charter and is subject to an extension of the charter or the grant of a new charter without a new condemnation.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3505, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scC/s21.046">
<num value="21.046">Sec. 21.046.</num>
<heading>RELOCATION ASSISTANCE PROGRAM</heading>
<subsection identifier="/us/tx/pr/t4/c21/scC/s21.046/a">
<num value="a">(a)</num>
<content>A department, agency, instrumentality, or political subdivision of this state shall provide a relocation advisory service for an individual, a family, a business concern, a farming or ranching operation, or a nonprofit organization that is compatible with the Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, 42 U.S.C.A. 4601, et seq.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scC/s21.046/b">
<num value="b">(b)</num>
<content>This state or a political subdivision of this state shall, as a cost of acquiring real property, pay moving expenses and rental supplements, make relocation payments, provide financial assistance to acquire replacement housing, and compensate for expenses incidental to the transfer of the property if an individual, a family, the personal property of a business, a farming or ranching operation, or a nonprofit organization is displaced in connection with the acquisition.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scC/s21.046/c">
<num value="c">(c)</num>
<content>A department, agency, instrumentality, or political subdivision of this state that initiates a program under Subsection (b) shall adopt rules relating to the administration of the program.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scC/s21.046/d">
<num value="d">(d)</num>
<content>Neither this state nor a political subdivision of this state may authorize expenditures under Subsection (b) that exceed payments authorized under the Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, 42 U.S.C.A. 4601, et seq.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scC/s21.046/e">
<num value="e">(e)</num>
<content>If a person moves or discontinues the person's business, moves personal property, or moves from the person's dwelling as a direct result of code enforcement, rehabilitation, or a demolition program, the person is considered to be displaced because of the acquisition of real property.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3505, ch. 576, Sec. 1, eff. Jan. 1, 1984.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 81 (S.B. 18), Sec. 16, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scC/s21.047">
<num value="21.047">Sec. 21.047.</num>
<heading>ASSESSMENT OF COSTS AND FEES</heading>
<subsection identifier="/us/tx/pr/t4/c21/scC/s21.047/a">
<num value="a">(a)</num>
<content>Special commissioners may adjudge the costs of an eminent domain proceeding against any party. If the commissioners award greater damages than the condemnor offered to pay before the proceedings began or if the decision of the commissioners is appealed and a court awards greater damages than the commissioners awarded, the condemnor shall pay all costs. If the commissioners' award or the court's determination of the damages is less than or equal to the amount the condemnor offered before proceedings began, the property owner shall pay the costs.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scC/s21.047/b">
<num value="b">(b)</num>
<content>A condemnor shall pay the initial cost of serving a property owner with notice of a condemnation proceeding. If the property owner is ordered to pay the costs of the proceeding, the condemnor may recover the expense of notice from the property owner as part of the costs.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scC/s21.047/c">
<num value="c">(c)</num>
<content>Repealed by Acts 2021, 87th Leg., R.S., Ch. 472 (S.B. 41), Sec. 5.01(i), eff. January 1, 2022.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scC/s21.047/d">
<num value="d">(d)</num>
<chapeau>If a court hearing a suit under this chapter determines that a condemnor did not make a bona fide offer to acquire the property from the property owner voluntarily as required by Section 21.0113, the court shall abate the suit, order the condemnor to make a bona fide offer, and order the condemnor to pay:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c21/scC/s21.047/1">
<num value="1">(1)</num>
<content>all costs as provided by Subsection (a); and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scC/s21.047/2">
<num value="2">(2)</num>
<content>any reasonable attorney's fees and other professional fees incurred by the property owner that are directly related to the violation.</content>
</paragraph>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3506, ch. 576, Sec. 1, eff. Jan. 1, 1984.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 81 (S.B. 18), Sec. 17, eff. September 1, 2011.
Acts 2011, 82nd Leg., R.S., Ch. 81 (S.B. 18), Sec. 18, eff. September 1, 2011.
Acts 2021, 87th Leg., R.S., Ch. 472 (S.B. 41), Sec. 5.01(i), eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scC/s21.048">
<num value="21.048">Sec. 21.048.</num>
<heading>STATEMENT OF DAMAGES AND COSTS</heading>
<chapeau>After the special commissioners in an eminent domain proceeding have assessed the damages, they shall:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c21/scC/s21.048/1">
<num value="1">(1)</num>
<content>make a written statement of their decision stating the damages, date it, sign it, and file it and all other papers connected with the proceeding with the court on the day the decision is made or on the next working day after the day the decision is made; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scC/s21.048/2">
<num value="2">(2)</num>
<content>make and sign a written statement of the accrued costs of the proceeding, naming the party against whom the costs are adjudged, and file the statement with the court.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3507, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 18, Sec. 1(c), eff. Oct. 2, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scC/s21.049">
<num value="21.049">Sec. 21.049.</num>
<heading>NOTICE OF DECISION OF SPECIAL COMMISSIONERS</heading>
<content>The judge of a court hearing a proceeding under this chapter shall inform the clerk of the court as to a decision by the special commissioners on the day the decision is filed or on the next working day after the day the decision is filed. Not later than the next working day after the day the decision is filed, the clerk shall send notice of the decision by a delivery method described under Rule 21a, Texas Rules of Civil Procedure, to the parties in the proceeding, or to their attorneys of record, at their addresses of record.</content>
<sourceCredit>Added by Acts 1984, 68th Leg., 2nd C.S., ch. 18, Sec. 1(d), eff. Oct. 2, 1984.
Amended by:
Acts 2025, 89th Leg., 2nd C.S., Ch. 7 (H.B. 16), Sec. 9.17, eff. December 4, 2025.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t4/c21/scD">
<num value="D">SUBCHAPTER D.</num>
<heading>JUDGMENT</heading>
<section identifier="/us/tx/pr/t4/c21/scD/s21.061">
<num value="21.061">Sec. 21.061.</num>
<heading>JUDGMENT ON COMMISSIONERS' FINDINGS</heading>
<content>If no party in a condemnation proceeding files timely objections to the findings of the special commissioners, the judge of the court that has jurisdiction of the proceeding shall adopt the commissioners' findings as the judgment of the court, record the judgment in the minutes of the court, and issue the process necessary to enforce the judgment.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3507, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scD/s21.062">
<num value="21.062">Sec. 21.062.</num>
<heading>WRIT OF POSSESSION</heading>
<content>If a condemnor in a condemnation proceeding has taken possession of property pending litigation and the court finally decides that the condemnor does not have the right to condemn the property, the court shall order the condemnor to surrender possession of the property and issue a writ of possession to the property owner.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3507, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scD/s21.063">
<num value="21.063">Sec. 21.063.</num>
<heading>APPEAL</heading>
<subsection identifier="/us/tx/pr/t4/c21/scD/s21.063/a">
<num value="a">(a)</num>
<content>The appeal of a judgment in a condemnation proceeding is as in other civil cases.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scD/s21.063/b">
<num value="b">(b)</num>
<content>A court hearing an appeal from the decision of a trial court in a condemnation proceeding may not suspend the judgment of the trial court pending the appeal.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3507, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scD/s21.064">
<num value="21.064">Sec. 21.064.</num>
<heading>INJUNCTIVE RELIEF</heading>
<subsection identifier="/us/tx/pr/t4/c21/scD/s21.064/a">
<num value="a">(a)</num>
<content>A court hearing a suit covered by Section 21.003 of this code may grant injunctive relief under the rules of equity.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scD/s21.064/b">
<num value="b">(b)</num>
<content>Instead of granting an injunction under this section, a court may require a condemnor to provide security adequate to compensate the property owner for damages that might result from the condemnation.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3508, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scD/s21.065">
<num value="21.065">Sec. 21.065.</num>
<heading>VESTED INTEREST</heading>
<content>A judgment of a court under this chapter vests a right granted to a condemnor.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3508, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t4/c21/scE">
<num value="E">SUBCHAPTER E.</num>
<heading>REPURCHASE OF REAL PROPERTY FROM CONDEMNING ENTITY</heading>
<section identifier="/us/tx/pr/t4/c21/scE/s21.101">
<num value="21.101">Sec. 21.101.</num>
<heading>RIGHT OF REPURCHASE</heading>
<subsection identifier="/us/tx/pr/t4/c21/scE/s21.101/a">
<num value="a">(a)</num>
<chapeau>A person from whom a real property interest is acquired by an entity through eminent domain for a public use, or that person's heirs, successors, or assigns, is entitled to repurchase the property as provided by this subchapter if:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c21/scE/s21.101/1">
<num value="1">(1)</num>
<content>the public use for which the property was acquired through eminent domain is canceled before the property is used for that public use;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scE/s21.101/2">
<num value="2">(2)</num>
<content>no actual progress is made toward the public use for which the property was acquired between the date of acquisition and the 10th anniversary of that date;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scE/s21.101/3">
<num value="3">(3)</num>
<content>the property becomes unnecessary for the public use for which the property was acquired, or a substantially similar public use, before the 10th anniversary of the date of acquisition;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scE/s21.101/4">
<num value="4">(4)</num>
<chapeau>the entity that acquired the property through eminent domain:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c21/scE/s21.101/A">
<num value="A">(A)</num>
<content>has an obligation to pay ad valorem taxes on the acquired property;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scE/s21.101/B">
<num value="B">(B)</num>
<content>has received a tax bill from the taxing authority for the ad valorem taxes on the acquired property; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scE/s21.101/C">
<num value="C">(C)</num>
<content>has failed to pay any ad valorem taxes on the acquired property before the third anniversary of the date on which the unpaid taxes became due; or</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scE/s21.101/5">
<num value="5">(5)</num>
<chapeau>the entity:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c21/scE/s21.101/A">
<num value="A">(A)</num>
<content>acquired through eminent domain a fee simple interest in the property;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scE/s21.101/B">
<num value="B">(B)</num>
<content>has an obligation to pay ad valorem taxes on the acquired property;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scE/s21.101/C">
<num value="C">(C)</num>
<content>has received a tax bill from the taxing authority for the ad valorem taxes on the acquired property; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scE/s21.101/D">
<num value="D">(D)</num>
<content>has failed to pay any ad valorem taxes on the acquired property before the third anniversary of the date on which the unpaid taxes became due.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scE/s21.101/b">
<num value="b">(b)</num>
<chapeau>In this section, "actual progress" means the completion of three or more of the following actions:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c21/scE/s21.101/1">
<num value="1">(1)</num>
<content>the performance of a significant amount of labor to develop the property or other property acquired for the same public use project for which the property owner's property was acquired;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scE/s21.101/2">
<num value="2">(2)</num>
<content>the provision of a significant amount of materials to develop the property or other property acquired for the same public use project for which the property owner's property was acquired;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scE/s21.101/3">
<num value="3">(3)</num>
<content>the hiring of or contracting with and the performance of a significant amount of work by an architect, engineer, or surveyor to prepare a plan, plat, or easement that includes the property or other property acquired for the same public use project for which the property owner's property was acquired;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scE/s21.101/4">
<num value="4">(4)</num>
<content>application for state or federal funds to develop the property or other property acquired for the same public use project for which the property owner's property was acquired; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scE/s21.101/5">
<num value="5">(5)</num>
<content>application for a state or federal permit or certificate to develop the property or other property acquired for the same public use project for which the property owner's property was acquired.</content>
<continuation>(b-1) Notwithstanding Subsection (b), a navigation district or port authority, or a water district implementing a project included in the state water plan adopted by the Texas Water Development Board, may establish actual progress for purposes of this section by:</continuation>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scE/s21.101/1">
<num value="1">(1)</num>
<content>the completion of one action described by Subsection (b); and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scE/s21.101/2">
<num value="2">(2)</num>
<content>the adoption by a majority of the entity's governing body at a public hearing of a development plan for a public use project that indicates that the entity will not complete more than one action described by Subsection (b) before the 10th anniversary of the date of acquisition of the property.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scE/s21.101/c">
<num value="c">(c)</num>
<content>A district court may determine all issues in any suit regarding the repurchase of a real property interest acquired through eminent domain by the former property owner or the owner's heirs, successors, or assigns.</content>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 1307, Sec. 2, eff. Jan. 1, 2004.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 81 (S.B. 18), Sec. 19, eff. September 1, 2011.
Acts 2021, 87th Leg., R.S., Ch. 86 (S.B. 726), Sec. 1, eff. September 1, 2021.
Acts 2025, 89th Leg., R.S., Ch. 938 (H.B. 2011), Sec. 1, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scE/s21.102">
<num value="21.102">Sec. 21.102.</num>
<heading>NOTICE TO PREVIOUS PROPERTY OWNER REQUIRED</heading>
<chapeau>Not later than the 180th day after the date an entity that acquired a real property interest through eminent domain determines that the former property owner is entitled to repurchase the property under Section 21.101, the entity shall send by certified mail, return receipt requested, to the property owner or the owner's heirs, successors, or assigns a notice containing:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c21/scE/s21.102/1">
<num value="1">(1)</num>
<content>an identification, which is not required to be a legal description, of the property that was acquired;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scE/s21.102/2">
<num value="2">(2)</num>
<chapeau>an identification of the public use for which the property had been acquired and a statement that:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c21/scE/s21.102/A">
<num value="A">(A)</num>
<content>the public use was canceled before the property was used for the public use;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scE/s21.102/B">
<num value="B">(B)</num>
<content>no actual progress was made toward the public use;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scE/s21.102/C">
<num value="C">(C)</num>
<content>the property became unnecessary for the public use, or a substantially similar public use, before the 10th anniversary of the date of acquisition; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scE/s21.102/D">
<num value="D">(D)</num>
<content>ad valorem taxes due on the property have not been paid by the entity before the third anniversary of the date on which the taxes became due; and</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scE/s21.102/3">
<num value="3">(3)</num>
<content>a description of the person's right under this subchapter to repurchase the property.</content>
</paragraph>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 1307, Sec. 2, eff. Jan. 1, 2004.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 81 (S.B. 18), Sec. 19, eff. September 1, 2011.
Acts 2025, 89th Leg., R.S., Ch. 938 (H.B. 2011), Sec. 2, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scE/s21.1021">
<num value="21.1021">Sec. 21.1021.</num>
<heading>REQUESTS FOR INFORMATION REGARDING CONDEMNED PROPERTY</heading>
<subsection identifier="/us/tx/pr/t4/c21/scE/s21.1021/a">
<num value="a">(a)</num>
<chapeau>On or after the 10th anniversary of the date on which real property was acquired by an entity through eminent domain, a property owner or the owner's heirs, successors, or assigns may request that the condemning entity make a determination and provide a statement and other relevant information regarding:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c21/scE/s21.1021/1">
<num value="1">(1)</num>
<content>whether the public use for which the property was acquired was canceled before the property was used for the public use;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scE/s21.1021/2">
<num value="2">(2)</num>
<content>whether any actual progress was made toward the public use between the date of acquisition and the 10th anniversary of that date, including an itemized description of the progress made, if applicable; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scE/s21.1021/3">
<num value="3">(3)</num>
<content>whether the property became unnecessary for the public use, or a substantially similar public use, before the 10th anniversary of the date of acquisition.</content>
<continuation>(a-1) If a property owner's real property was acquired by an entity that is responsible for paying ad valorem taxes on the acquired property, the property owner from whom the property was acquired or the owner's heirs, successors, or assigns may request at any time after the 18-month anniversary of the acquisition, but not more than once annually, that the condemning entity make a determination and provide a statement and other relevant information regarding:</continuation>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scE/s21.1021/1">
<num value="1">(1)</num>
<content>whether all ad valorem taxes on the acquired property have been paid; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scE/s21.1021/2">
<num value="2">(2)</num>
<chapeau>if any ad valorem taxes on the acquired property have not been paid:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c21/scE/s21.1021/A">
<num value="A">(A)</num>
<content>the amount of the unpaid ad valorem taxes;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scE/s21.1021/B">
<num value="B">(B)</num>
<content>each due date of any unpaid ad valorem taxes; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scE/s21.1021/C">
<num value="C">(C)</num>
<content>whether the entity has a good faith intention to pay the unpaid ad valorem taxes.</content>
<continuation>(a-2) If a fee simple interest in a property owner's real property was acquired by an entity that is responsible for paying ad valorem taxes on the acquired property and the acquired property is undeveloped, the property owner from whom the property was acquired or the owner's heirs, successors, or assigns may request at any time after the 18-month anniversary of the acquisition and before the 10th anniversary of the acquisition, but not more than once annually, that the condemning entity make a determination and provide a statement and other relevant information regarding:</continuation>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scE/s21.1021/1">
<num value="1">(1)</num>
<content>whether all ad valorem taxes on the acquired property have been paid; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scE/s21.1021/2">
<num value="2">(2)</num>
<chapeau>if any ad valorem taxes on the acquired property have not been paid:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c21/scE/s21.1021/A">
<num value="A">(A)</num>
<content>the amount of the unpaid ad valorem taxes;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scE/s21.1021/B">
<num value="B">(B)</num>
<content>each due date of any unpaid ad valorem taxes; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c21/scE/s21.1021/C">
<num value="C">(C)</num>
<content>whether the entity has a good faith intention to pay the unpaid ad valorem taxes.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scE/s21.1021/b">
<num value="b">(b)</num>
<content>A request under this section must contain sufficient detail to allow the entity to identify the specific tract of land in relation to which the information is sought.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scE/s21.1021/c">
<num value="c">(c)</num>
<content>Not later than the 90th day following the date of receipt of the request for information, the entity shall send a written response by certified mail, return receipt requested, to the requestor.</content>
</subsection>
<sourceCredit>Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 81 (S.B. 18), Sec. 19, eff. September 1, 2011.
Acts 2025, 89th Leg., R.S., Ch. 938 (H.B. 2011), Sec. 3, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scE/s21.1022">
<num value="21.1022">Sec. 21.1022.</num>
<heading>LIMITATIONS PERIOD FOR REPURCHASE RIGHT</heading>
<chapeau>Notwithstanding Section 21.103, the right to repurchase provided by this subchapter is extinguished on the first anniversary of the expiration of the period for an entity to provide notice under Section 21.102 if the entity:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c21/scE/s21.1022/1">
<num value="1">(1)</num>
<content>is required to provide notice under Section 21.102;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scE/s21.1022/2">
<num value="2">(2)</num>
<content>makes a good faith effort to locate and provide notice to each person entitled to notice before the expiration of the deadline for providing notice under that section; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c21/scE/s21.1022/3">
<num value="3">(3)</num>
<content>does not receive a response to any notice provided under that section in the period for response prescribed by Section 21.103.</content>
</paragraph>
<sourceCredit>Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 81 (S.B. 18), Sec. 19, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c21/scE/s21.103">
<num value="21.103">Sec. 21.103.</num>
<heading>RESALE OF PROPERTY; PRICE</heading>
<subsection identifier="/us/tx/pr/t4/c21/scE/s21.103/a">
<num value="a">(a)</num>
<content>Not later than the 180th day after the date of the postmark on a notice sent under Section 21.102 or a response to a request made under Section 21.1021 that indicates that the property owner, or the owner's heirs, successors, or assigns, is entitled to repurchase the property interest in accordance with Section 21.101, the property owner or the owner's heirs, successors, or assigns must notify the entity of the person's intent to repurchase the property interest under this subchapter.</content>
<continuation>(a-1) Notwithstanding Subsection (a), a person entitled to repurchase real property under Section 21.101(a)(4) or (5) may inform the entity that acquired the property of the person's intent to repurchase the property before notice or information is required or provided under Section 21.102 or 21.1021.</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t4/c21/scE/s21.103/b">
<num value="b">(b)</num>
<content>As soon as practicable after receipt of a notice of intent to repurchase under this section, the entity shall offer to sell the property interest to the person for the price paid to the owner by the entity at the time the entity acquired the property through eminent domain. The person's right to repurchase the property expires on the 90th day after the date on which the entity makes the offer.</content>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 1307, Sec. 2, eff. Jan. 1, 2004.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 81 (S.B. 18), Sec. 19, eff. September 1, 2011.
Acts 2025, 89th Leg., R.S., Ch. 938 (H.B. 2011), Sec. 4, eff. September 1, 2025.</sourceCredit>
</section>
</subchapter>
</chapter>
<chapter identifier="/us/tx/pr/t4/c22">
<num value="22">CHAPTER 22.</num>
<heading>TRESPASS TO TRY TITLE</heading>
<subchapter identifier="/us/tx/pr/t4/c22/scA">
<num value="A">SUBCHAPTER A.</num>
<heading>GENERAL PROVISIONS</heading>
<section identifier="/us/tx/pr/t4/c22/scA/s22.001">
<num value="22.001">Sec. 22.001.</num>
<heading>TRESPASS TO TRY TITLE</heading>
<subsection identifier="/us/tx/pr/t4/c22/scA/s22.001/a">
<num value="a">(a)</num>
<content>A trespass to try title action is the method of determining title to lands, tenements, or other real property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c22/scA/s22.001/b">
<num value="b">(b)</num>
<content>The action of ejectment is not available in this state.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3509, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c22/scA/s22.002">
<num value="22.002">Sec. 22.002.</num>
<heading>TITLE SUFFICIENT TO MAINTAIN ACTION</heading>
<content>A headright certificate, land scrip, bounty warrant, or other evidence of legal right to located and surveyed land is sufficient title to maintain a trespass to try title action.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3509, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c22/scA/s22.003">
<num value="22.003">Sec. 22.003.</num>
<heading>FINAL JUDGMENT CONCLUSIVE</heading>
<content>A final judgment that establishes title or right to possession in an action to recover real property is conclusive against the party from whom the property is recovered and against a person claiming the property through that party by a title that arises after the action is initiated.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3509, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c22/scA/s22.004">
<num value="22.004">Sec. 22.004.</num>
<heading>EFFECT OF FORMER LAW</heading>
<content>This chapter does not affect rights that existed before the introduction of the common law in this state. Those rights are defined by the principles of the law in effect at the time the rights accrued.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3509, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t4/c22/scB">
<num value="B">SUBCHAPTER B.</num>
<heading>JUDGMENT AND DAMAGES</heading>
<section identifier="/us/tx/pr/t4/c22/scB/s22.021">
<num value="22.021">Sec. 22.021.</num>
<heading>CLAIM FOR IMPROVEMENTS</heading>
<subsection identifier="/us/tx/pr/t4/c22/scB/s22.021/a">
<num value="a">(a)</num>
<chapeau>A defendant in a trespass to try title action who is not the rightful owner of the property, but who has possessed the property in good faith and made permanent and valuable improvements to it, is either:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c22/scB/s22.021/1">
<num value="1">(1)</num>
<content>entitled to recover the amount by which the estimated value of the defendant's improvements exceeds the estimated value of the defendant's use and occupation of and waste or other injury to the property; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c22/scB/s22.021/2">
<num value="2">(2)</num>
<content>liable for the amount by which the value of the use and occupation of and waste and other injury to the property exceeds the value of the improvements and for costs.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c22/scB/s22.021/b">
<num value="b">(b)</num>
<chapeau>In estimating values of improvements or of use and occupation:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c22/scB/s22.021/1">
<num value="1">(1)</num>
<content>improvements are valued at the time of trial, but only to the extent that the improvements increased the value of the property; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c22/scB/s22.021/2">
<num value="2">(2)</num>
<content>use and occupation is valued for the time before the date the action was filed that the defendant was in possession of the property, but excluding the value resulting from the improvements made by the defendant or those under whom the defendant claims.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c22/scB/s22.021/c">
<num value="c">(c)</num>
<chapeau>The defendant who makes a claim for improvements must plead:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c22/scB/s22.021/1">
<num value="1">(1)</num>
<content>that the defendant and those under whom the defendant claims have had good faith adverse possession of the property in controversy for at least one year before the date the action began;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c22/scB/s22.021/2">
<num value="2">(2)</num>
<content>that they or the defendant made permanent and valuable improvements to the property while in possession;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c22/scB/s22.021/3">
<num value="3">(3)</num>
<content>the grounds for the claim;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c22/scB/s22.021/4">
<num value="4">(4)</num>
<content>the identity of the improvements; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c22/scB/s22.021/5">
<num value="5">(5)</num>
<content>the value of each improvement.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c22/scB/s22.021/d">
<num value="d">(d)</num>
<content>The defendant is not liable for damages under this section for injuries or for the value of the use and occupation more than two years before the date the action was filed, and the defendant is not liable for damages or for the value of the use and occupation in excess of the value of the improvements.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3509, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c22/scB/s22.022">
<num value="22.022">Sec. 22.022.</num>
<heading>WRIT OF POSSESSION</heading>
<content>If in a trespass to try title action the plaintiff obtains a judgment for the contested property, but the defendant obtains a judgment for the value of the defendant's improvements in excess of the defendant's liability for use, occupation, and damages, the court may not issue a writ of possession until the first anniversary of the judgment unless the plaintiff pays to the clerk of the court for the benefit of the defendant the amount of the judgment in favor of the defendant plus interest.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3510, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c22/scB/s22.023">
<num value="22.023">Sec. 22.023.</num>
<heading>FAILURE TO PAY</heading>
<subsection identifier="/us/tx/pr/t4/c22/scB/s22.023/a">
<num value="a">(a)</num>
<content>If after a trespass to try title action a plaintiff does not pay a judgment awarded to a defendant, plus accrued interest, before the first anniversary of the judgment and if the defendant, before the sixth month after the first anniversary of the judgment, pays the value of the property, less the value of the defendant's improvements, to the clerk of the court for the benefit of the plaintiff, the plaintiff may not obtain a writ of possession or maintain any proceeding against the defendant or the defendant's heirs or assigns for the property awarded to the plaintiff in the trespass to try title action.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c22/scB/s22.023/b">
<num value="b">(b)</num>
<content>If an eligible defendant does not exercise the option under this section, a plaintiff may apply for a writ of possession as in other cases.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3511, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c22/scB/s22.024">
<num value="22.024">Sec. 22.024.</num>
<heading>PAYMENTS INTO COURT</heading>
<content>If a party in a trespass to try title action makes a payment to the clerk of a court under this subchapter, the clerk shall enter a dated memorandum of the payment on the page of the record on which the judgment was entered. The clerk shall pay the money on demand to the person entitled to the payment, who shall indicate receipt of the payment by dating and signing the record on the same page on which the judgment was entered.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3511, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t4/c22/scC">
<num value="C">SUBCHAPTER C.</num>
<heading>REMOVAL OF IMPROVEMENTS</heading>
<section identifier="/us/tx/pr/t4/c22/scC/s22.041">
<num value="22.041">Sec. 22.041.</num>
<heading>PLEA FOR REMOVAL OF IMPROVEMENTS</heading>
<subsection identifier="/us/tx/pr/t4/c22/scC/s22.041/a">
<num value="a">(a)</num>
<chapeau>A defendant in a trespass to try title action who is not the rightful owner of the property in controversy may remove improvements made to the property if:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c22/scC/s22.041/1">
<num value="1">(1)</num>
<content>the defendant, and those under whom the defendant claims, possessed the property, and made permanent and valuable improvements to it, without intent to defraud; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c22/scC/s22.041/2">
<num value="2">(2)</num>
<content>the improvements can be removed without substantial and permanent damage to the property.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c22/scC/s22.041/b">
<num value="b">(b)</num>
<chapeau>The pleadings of a defendant who seeks to remove improvements must contain:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c22/scC/s22.041/1">
<num value="1">(1)</num>
<content>a statement that the defendant, and those under whom the defendant claims, adversely possessed the property, and made permanent and valuable improvements to it, without intent to defraud;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c22/scC/s22.041/2">
<num value="2">(2)</num>
<content>a statement identifying the improvements; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c22/scC/s22.041/3">
<num value="3">(3)</num>
<content>an offer to provide a surety bond in an amount and conditioned as required by this section.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c22/scC/s22.041/c">
<num value="c">(c)</num>
<content>Before removing the improvements, the defendant must post a surety bond in an amount determined by the court, conditioned on the removal of the improvements in a manner that substantially restores the property to the condition it was in before the improvements were made.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3511, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c22/scC/s22.042">
<num value="22.042">Sec. 22.042.</num>
<heading>REFEREE</heading>
<content>A court that authorizes a defendant in a trespass to try title action to remove improvements shall appoint a referee to supervise the removal. The court may require the referee to make reports to the court concerning the removal.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3512, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c22/scC/s22.043">
<num value="22.043">Sec. 22.043.</num>
<heading>RETAINED JURISDICTION</heading>
<content>A court that authorizes a defendant in a trespass to try title action to remove improvements retains jurisdiction of the action until the court makes a final disposition of the case and a final determination of the rights, duties, and liabilities of the parties and sureties.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3512, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c22/scC/s22.044">
<num value="22.044">Sec. 22.044.</num>
<heading>CONDITION FOR REMOVAL</heading>
<content>Before a court in a trespass to try title action authorizes a defendant to remove improvements, the court may require the defendant to satisfy a money judgment in favor of the plaintiff that arises out of a claim of the plaintiff in the action.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3512, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c22/scC/s22.045">
<num value="22.045">Sec. 22.045.</num>
<heading>CUMULATIVE REMEDIES</heading>
<content>The remedy of removing improvements may be pleaded as an alternative to all other remedies at law or in equity.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3513, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
</subchapter>
</chapter>
<chapter identifier="/us/tx/pr/t4/c23">
<num value="23">CHAPTER 23.</num>
<heading>PARTITION</heading>
<section identifier="/us/tx/pr/t4/c23/s23.001">
<num value="23.001">Sec. 23.001.</num>
<heading>PARTITION</heading>
<content>A joint owner or claimant of real property or an interest in real property or a joint owner of personal property may compel a partition of the interest or the property among the joint owners or claimants under this chapter and the Texas Rules of Civil Procedure.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3513, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c23/s23.002">
<num value="23.002">Sec. 23.002.</num>
<heading>VENUE AND JURISDICTION</heading>
<subsection identifier="/us/tx/pr/t4/c23/s23.002/a">
<num value="a">(a)</num>
<content>A joint owner or a claimant of real property or an interest in real property may bring an action to partition the property or interest in a district court of a county in which any part of the property is located.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c23/s23.002/b">
<num value="b">(b)</num>
<content>A joint owner of personal property must bring an action to partition the property in a court that has jurisdiction over the value of the property.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3513, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c23/s23.003">
<num value="23.003">Sec. 23.003.</num>
<heading>EFFECT ON FUTURE INTERESTS</heading>
<content>A partition of real property involving an owner of a life estate or an estate for years and other owners of equal or greater estate does not prejudice the rights of an owner of a reversion or remainder interest.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3513, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c23/s23.004">
<num value="23.004">Sec. 23.004.</num>
<heading>EFFECT OF PARTITION</heading>
<subsection identifier="/us/tx/pr/t4/c23/s23.004/a">
<num value="a">(a)</num>
<content>A person allotted a share of or an interest in real property in a partition action holds the property or interest in severalty under the conditions and covenants that applied to the property prior to the partition.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c23/s23.004/b">
<num value="b">(b)</num>
<content>A court decree confirming a report of commissioners in partition of real property gives a recipient of an interest in the property a title equivalent to a conveyance of the interest by a warranty deed from the other parties in the action.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c23/s23.004/c">
<num value="c">(c)</num>
<content>Except as provided by this chapter, a partition of real property does not affect a right in the property.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3513, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c23/s23.005">
<num value="23.005">Sec. 23.005.</num>
<heading>FEES</heading>
<content>The judge of a court that hears an action to partition real property shall examine the report of the commissioners appointed to partition the property and shall determine from the report and from evidence submitted by the parties the complexity and difficulty of making the partition. The court shall then award the commissioners, and any surveyor appointed by the court or retained by the commissioners, a reasonable fee for the services rendered. The fees awarded shall be taxed and collected as costs of court in the same manner as the other costs in the action.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3514, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1991, 72nd Leg., ch. 443, Sec. 1, eff. Sept. 1, 1991.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c23/s23.006">
<num value="23.006">Sec. 23.006.</num>
<heading>ACCESS EASEMENT FOR PARTITIONED PROPERTY</heading>
<subsection identifier="/us/tx/pr/t4/c23/s23.006/a">
<num value="a">(a)</num>
<content>Unless waived by the parties in an action to partition property under this chapter, the commissioners appointed to partition property shall grant a nonexclusive access easement on a tract of partitioned property for the purpose of providing reasonable ingress to and egress from an adjoining partitioned tract that does not have a means of access through a public road or an existing easement appurtenant to the tract. The order granting the access easement shall contain a legal description of the easement.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c23/s23.006/b">
<num value="b">(b)</num>
<content>Unless waived by the parties in writing in a private partition agreement, the property owner of a partitioned tract that has a means of access through a public road or an existing easement appurtenant to the tract shall grant in the private partition agreement a nonexclusive access easement on the owner's partitioned tract for the purpose of providing reasonable ingress to and egress from an adjoining partitioned tract that does not have a means of access through a public road or an existing easement appurtenant to the tract.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c23/s23.006/c">
<num value="c">(c)</num>
<chapeau>The access easement may not be a width greater than a width prescribed by a municipality or county for a right-of-way on a street or road. The access easement route must be the shortest route to the adjoining tract that:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c23/s23.006/1">
<num value="1">(1)</num>
<content>causes the least amount of damage to the tract subject to the easement; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c23/s23.006/2">
<num value="2">(2)</num>
<content>is located the greatest reasonable distance from the primary residence and related improvements located on the tract subject to the easement.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c23/s23.006/d">
<num value="d">(d)</num>
<content>The adjoining tract owner who is granted an access easement under this section shall maintain the easement and keep the easement open for public use.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 647, Sec. 1, eff. Sept. 1, 2001.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t4/c23A">
<num value="23A">CHAPTER 23A.</num>
<heading>UNIFORM PARTITION OF HEIRS' PROPERTY ACT</heading>
<section identifier="/us/tx/pr/t4/c23A/s23A.001">
<num value="23A.001">Sec. 23A.001.</num>
<heading>SHORT TITLE</heading>
<content>This chapter may be cited as the Uniform Partition of Heirs' Property Act.</content>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 297 (S.B. 499), Sec. 1, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c23A/s23A.002">
<num value="23A.002">Sec. 23A.002.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.002/1">
<num value="1">(1)</num>
<content>"Ascendant" means an individual who precedes another individual in lineage, in the direct line of ascent from the other individual.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.002/2">
<num value="2">(2)</num>
<content>"Collateral" means an individual who is related to another individual under the law of intestate succession of this state but who is not the other individual's ascendant or descendant.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.002/3">
<num value="3">(3)</num>
<content>"Descendant" means an individual who follows another individual in lineage, in the direct line of descent from the other individual.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.002/4">
<num value="4">(4)</num>
<content>"Determination of value" means a court order determining the fair market value of heirs' property under Section 23A.006 or 23A.010 or adopting the valuation of the property agreed to by all cotenants.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.002/5">
<num value="5">(5)</num>
<chapeau>"Heirs' property" means real property held in tenancy in common that satisfies all of the following requirements as of the filing of a partition action:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c23A/s23A.002/A">
<num value="A">(A)</num>
<content>there is no agreement in a record binding all the cotenants that governs the partition of the property;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c23A/s23A.002/B">
<num value="B">(B)</num>
<content>one or more of the cotenants acquired title from a relative, whether living or deceased; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c23A/s23A.002/C">
<num value="C">(C)</num>
<content>any of the following applies:</content>
</subparagraph>
</paragraph>
<subsection identifier="/us/tx/pr/t4/c23A/s23A.002/i">
<num value="i">(i)</num>
<chapeau>20 percent or more of the interests are held by cotenants who are relatives;</chapeau>
<clause identifier="/us/tx/pr/t4/c23A/s23A.002/ii">
<num value="ii">(ii)</num>
<content>20 percent or more of the interests are held by an individual who acquired title from a relative, whether living or deceased; or</content>
</clause>
<clause identifier="/us/tx/pr/t4/c23A/s23A.002/iii">
<num value="iii">(iii)</num>
<content>20 percent or more of the cotenants are relatives.</content>
</clause>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.002/6">
<num value="6">(6)</num>
<content>"Partition by sale" means a court-ordered sale of the entire heirs' property, whether by open-market sale, sealed bids, or auction conducted under Section 23A.010.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.002/7">
<num value="7">(7)</num>
<content>"Partition in kind" means the division of heirs' property into physically distinct and separately titled parcels.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.002/8">
<num value="8">(8)</num>
<content>"Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.002/9">
<num value="9">(9)</num>
<content>"Relative" means an ascendant, descendant, or collateral or an individual otherwise related to another individual by blood, marriage, adoption, or law of this state other than this chapter.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 297 (S.B. 499), Sec. 1, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c23A/s23A.003">
<num value="23A.003">Sec. 23A.003.</num>
<heading>APPLICABILITY; RELATION TO OTHER LAW</heading>
<subsection identifier="/us/tx/pr/t4/c23A/s23A.003/a">
<num value="a">(a)</num>
<content>In an action to partition real property under Chapter 23, the court shall determine whether the property is heirs' property. If the court determines that the property is heirs' property, the property must be partitioned under this chapter unless all of the cotenants otherwise agree in a record.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c23A/s23A.003/b">
<num value="b">(b)</num>
<content>This chapter supplements Chapter 23 and the Texas Rules of Civil Procedure governing partition of real property. If an action is governed by this chapter, this chapter supersedes provisions of Chapter 23 and the Texas Rules of Civil Procedure governing partition of real property that are inconsistent with this chapter.</content>
</subsection>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 297 (S.B. 499), Sec. 1, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c23A/s23A.004">
<num value="23A.004">Sec. 23A.004.</num>
<heading>SERVICE; NOTICE BY POSTING</heading>
<subsection identifier="/us/tx/pr/t4/c23A/s23A.004/a">
<num value="a">(a)</num>
<content>This chapter does not limit or affect the method by which service of a petition in a partition action may be made.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c23A/s23A.004/b">
<num value="b">(b)</num>
<content>If the plaintiff in a partition action seeks citation by publication and the court determines that the property may be heirs' property, the plaintiff, not later than the 10th day after the date the determination is made, shall post, and maintain while the action is pending, a conspicuous sign on the property that is the subject of the action. The sign must state that the action has commenced and identify the name and address of the court and the common designation by which the property is known. The court may require the plaintiff to publish on the sign the name of the plaintiff and the known defendants.</content>
</subsection>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 297 (S.B. 499), Sec. 1, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c23A/s23A.005">
<num value="23A.005">Sec. 23A.005.</num>
<heading>COMMISSIONERS</heading>
<content>If the court appoints commissioners under Rule 761, Texas Rules of Civil Procedure, each commissioner, in addition to the requirements and disqualifications applicable to commissioners under that rule, must be impartial and may not be a party to or a participant in the action.</content>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 297 (S.B. 499), Sec. 1, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c23A/s23A.006">
<num value="23A.006">Sec. 23A.006.</num>
<heading>DETERMINATION OF VALUE</heading>
<subsection identifier="/us/tx/pr/t4/c23A/s23A.006/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (b) or (c), if the court determines that the property that is the subject of a partition action is heirs' property, the court shall determine the fair market value of the property by ordering an appraisal under Subsection (d).</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c23A/s23A.006/b">
<num value="b">(b)</num>
<content>If all cotenants have agreed to the value of the property or to another method of valuation, the court shall adopt that value or the value produced by the agreed method of valuation.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c23A/s23A.006/c">
<num value="c">(c)</num>
<content>If the court determines that the evidentiary value of an appraisal is outweighed by the cost of the appraisal, the court, after an evidentiary hearing, shall determine the fair market value of the property and send notice to the parties of the value.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c23A/s23A.006/d">
<num value="d">(d)</num>
<content>If the court orders an appraisal, the court shall appoint a disinterested real estate appraiser to determine the fair market value of the property assuming sole ownership of the fee simple estate. On completion of the appraisal, the appraiser shall file a sworn or verified appraisal with the court.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c23A/s23A.006/e">
<num value="e">(e)</num>
<chapeau>If an appraisal is conducted under Subsection (d), not later than the 10th day after the date the appraisal is filed, the court shall send notice to each party with a known address, stating:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.006/1">
<num value="1">(1)</num>
<content>the appraised fair market value of the property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.006/2">
<num value="2">(2)</num>
<content>that the appraisal is available at the clerk's office; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.006/3">
<num value="3">(3)</num>
<content>that a party may file with the court an objection to the appraisal not later than the 30th day after the date notice is sent, stating the grounds for the objection.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c23A/s23A.006/f">
<num value="f">(f)</num>
<content>If an appraisal is filed with the court under Subsection (d), the court shall conduct a hearing to determine the fair market value of the property not earlier than the 30th day after the date a copy of the notice of the appraisal is sent to each party under Subsection (e), whether or not an objection to the appraisal is filed under Subsection (e)(3). In addition to the court-ordered appraisal, the court may consider any other evidence of value offered by a party.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c23A/s23A.006/g">
<num value="g">(g)</num>
<content>After a hearing under Subsection (f), but before considering the merits of the partition action, the court shall determine the fair market value of the property and send notice to the parties of the value.</content>
</subsection>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 297 (S.B. 499), Sec. 1, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c23A/s23A.007">
<num value="23A.007">Sec. 23A.007.</num>
<heading>COTENANT BUYOUT</heading>
<subsection identifier="/us/tx/pr/t4/c23A/s23A.007/a">
<num value="a">(a)</num>
<content>If any cotenant requested partition by sale, after the determination of value under Section 23A.006, the court shall send notice to the parties that any cotenant except a cotenant that requested partition by sale may buy all the interests of the cotenants that requested partition by sale.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c23A/s23A.007/b">
<num value="b">(b)</num>
<content>Not later than the 45th day after the date notice is sent under Subsection (a), any cotenant except a cotenant that requested partition by sale may give notice to the court that the cotenant elects to buy all the interests of the cotenants that requested partition by sale.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c23A/s23A.007/c">
<num value="c">(c)</num>
<content>The purchase price for each of the interests of a cotenant that requested partition by sale is the value of the entire parcel determined under Section 23A.006 multiplied by the cotenant's fractional ownership of the entire parcel.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c23A/s23A.007/d">
<num value="d">(d)</num>
<chapeau>After the period provided by Subsection (b) expires:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.007/1">
<num value="1">(1)</num>
<content>if only one cotenant elects to buy all the interests of the cotenants that requested partition by sale, the court shall notify all the parties of that fact;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.007/2">
<num value="2">(2)</num>
<chapeau>if more than one cotenant elects to buy all the interests of the cotenants that requested partition by sale, the court shall:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c23A/s23A.007/A">
<num value="A">(A)</num>
<content>allocate the right to buy those interests among the electing cotenants based on each electing cotenant's existing fractional ownership of the entire parcel divided by the total existing fractional ownership of all cotenants electing to buy; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c23A/s23A.007/B">
<num value="B">(B)</num>
<content>send notice to all the parties of that fact and of the price to be paid by each electing cotenant; or</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.007/3">
<num value="3">(3)</num>
<chapeau>if no cotenant elects to buy all the interests of the cotenants that requested partition by sale, the court shall:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c23A/s23A.007/A">
<num value="A">(A)</num>
<content>send notice to all the parties of that fact; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c23A/s23A.007/B">
<num value="B">(B)</num>
<content>resolve the partition action under Section 23A.008(a) or (b).</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c23A/s23A.007/e">
<num value="e">(e)</num>
<chapeau>If the court sends notice to the parties under Subsection (d)(1) or (2), the court shall set a date, not earlier than the 60th day after the date notice was sent, by which an electing cotenant must pay the cotenant's apportioned price into the court. After that date:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.007/1">
<num value="1">(1)</num>
<chapeau>if all electing cotenants timely pay their apportioned price into court, the court shall:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c23A/s23A.007/A">
<num value="A">(A)</num>
<content>issue an order reallocating all the interests of the cotenants; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c23A/s23A.007/B">
<num value="B">(B)</num>
<content>disburse the amounts held by the court to the persons entitled to them;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.007/2">
<num value="2">(2)</num>
<content>if no electing cotenant timely pays its apportioned price, the court shall resolve the partition action under Section 23A.008(a) or (b) as if the interests of the cotenants that requested partition by sale were not purchased; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.007/3">
<num value="3">(3)</num>
<content>if one or more but not all of the electing cotenants fail to pay their apportioned price on time, the court shall give notice to the electing cotenants that paid their apportioned price of the interest remaining and the price for all that interest.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c23A/s23A.007/f">
<num value="f">(f)</num>
<chapeau>Not later than the 20th day after the date the court gives notice under Subsection (e)(3), any cotenant that paid may elect to purchase all of the remaining interest by paying the entire price into the court. After that period expires:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.007/1">
<num value="1">(1)</num>
<chapeau>if only one cotenant pays the entire price for the remaining interest, the court shall:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c23A/s23A.007/A">
<num value="A">(A)</num>
<content>issue an order reallocating the remaining interest to that cotenant;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c23A/s23A.007/B">
<num value="B">(B)</num>
<content>promptly issue an order reallocating the interests of all of the cotenants; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c23A/s23A.007/C">
<num value="C">(C)</num>
<content>disburse the amounts held by the court to the persons entitled to the amounts;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.007/2">
<num value="2">(2)</num>
<content>if no cotenant pays the entire price for the remaining interest, the court shall resolve the partition action under Section 23A.008(a) or (b) as if the interests of the cotenants that requested partition by sale were not purchased; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.007/3">
<num value="3">(3)</num>
<chapeau>if more than one cotenant pays the entire price for the remaining interest, the court shall:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c23A/s23A.007/A">
<num value="A">(A)</num>
<content>reapportion the remaining interest among those paying cotenants, based on each paying cotenant's original fractional ownership of the entire parcel divided by the total original fractional ownership of all cotenants that paid the entire price for the remaining interest;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c23A/s23A.007/B">
<num value="B">(B)</num>
<content>promptly issue an order reallocating all of the cotenants' interests;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c23A/s23A.007/C">
<num value="C">(C)</num>
<content>disburse the amounts held by the court to the persons entitled to the amounts; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c23A/s23A.007/D">
<num value="D">(D)</num>
<content>promptly refund any excess payment held by the court.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c23A/s23A.007/g">
<num value="g">(g)</num>
<content>Not later than the 45th day after the date the court sends notice to the parties under Subsection (a), any cotenant entitled to buy an interest under this section may request the court to authorize the sale as part of the pending action of the interests of cotenants named as defendants and served with the complaint but that did not appear in the action.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c23A/s23A.007/h">
<num value="h">(h)</num>
<chapeau>If the court receives a timely request under Subsection (g), the court, after hearing, may deny the request or authorize the requested additional sale on such terms as the court determines are fair and reasonable, subject to the following limitations:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.007/1">
<num value="1">(1)</num>
<content>a sale authorized under this subsection may occur only after the purchase prices for all interests subject to sale under Subsections (a) through (f) have been paid into court and those interests have been reallocated among the cotenants as provided in those subsections; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.007/2">
<num value="2">(2)</num>
<content>the purchase price for the interest of a nonappearing cotenant is based on the court's determination of value under Section 23A.006.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 297 (S.B. 499), Sec. 1, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c23A/s23A.008">
<num value="23A.008">Sec. 23A.008.</num>
<heading>PARTITION ALTERNATIVES</heading>
<subsection identifier="/us/tx/pr/t4/c23A/s23A.008/a">
<num value="a">(a)</num>
<content>If all the interests of all cotenants that requested partition by sale are not purchased by other cotenants under Section 23A.007, or if after conclusion of the buyout under Section 23A.007 a cotenant remains that has requested partition in kind, the court shall order partition in kind unless the court, after consideration of the factors listed in Section 23A.009, finds that partition in kind will result in substantial prejudice to the cotenants as a group. In considering whether to order partition in kind, the court shall approve a request by two or more parties to have the requesting parties' individual interests aggregated.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c23A/s23A.008/b">
<num value="b">(b)</num>
<content>If the court does not order partition in kind under Subsection (a), the court shall order partition by sale under Section 23A.010 or, if no cotenant requested partition by sale, the court shall dismiss the action.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c23A/s23A.008/c">
<num value="c">(c)</num>
<content>If the court orders partition in kind under Subsection (a), the court may require that one or more cotenants pay one or more other cotenants amounts so that the payments, taken together with the value of the in-kind distributions to the cotenants, will make the partition in kind just and proportionate in value to the fractional interests held.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c23A/s23A.008/d">
<num value="d">(d)</num>
<content>If the court orders partition in kind, the court shall allocate to the cotenants that are unknown, unlocatable, or the subject of a default judgment, if those cotenants' interests were not bought out under Section 23A.007, a part of the property representing the combined interests of those cotenants as determined by the court, and that part of the property shall remain undivided.</content>
</subsection>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 297 (S.B. 499), Sec. 1, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c23A/s23A.009">
<num value="23A.009">Sec. 23A.009.</num>
<heading>CONSIDERATIONS FOR PARTITION IN KIND</heading>
<subsection identifier="/us/tx/pr/t4/c23A/s23A.009/a">
<num value="a">(a)</num>
<chapeau>In determining under Section 23A.008(a) whether partition in kind would result in substantial prejudice to the cotenants as a group, the court shall consider the following:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.009/1">
<num value="1">(1)</num>
<content>whether the heirs' property practicably can be divided among the cotenants;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.009/2">
<num value="2">(2)</num>
<content>whether partition in kind would apportion the property in such a way that the aggregate fair market value of the parcels resulting from the division would be materially less than the value of the property if the property were sold as a whole, taking into account the condition under which a court-ordered sale likely would occur;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.009/3">
<num value="3">(3)</num>
<content>evidence of the collective duration of ownership or possession of the property by a cotenant and one or more predecessors in title or predecessors in possession to the cotenant who are or were relatives of the cotenant or each other;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.009/4">
<num value="4">(4)</num>
<content>a cotenant's sentimental attachment to the property, including any attachment arising because the property has ancestral or other unique or special value to the cotenant;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.009/5">
<num value="5">(5)</num>
<content>the lawful use being made of the property by a cotenant and the degree to which the cotenant would be harmed if the cotenant could not continue the same use of the property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.009/6">
<num value="6">(6)</num>
<content>the degree to which the cotenants have contributed the cotenants' pro rata share of the property taxes, insurance, and other expenses associated with maintaining ownership of the property or have contributed to the physical improvement, maintenance, or upkeep of the property; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.009/7">
<num value="7">(7)</num>
<content>any other relevant factor.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c23A/s23A.009/b">
<num value="b">(b)</num>
<content>The court may not consider any one factor under Subsection (a) to be dispositive without weighing the totality of all relevant factors and circumstances.</content>
</subsection>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 297 (S.B. 499), Sec. 1, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c23A/s23A.010">
<num value="23A.010">Sec. 23A.010.</num>
<heading>OPEN-MARKET SALE, SEALED BIDS, OR AUCTION</heading>
<subsection identifier="/us/tx/pr/t4/c23A/s23A.010/a">
<num value="a">(a)</num>
<content>If the court orders a sale of heirs' property, the sale must be an open-market sale unless the court finds that a sale by sealed bids or at an auction would be more economically advantageous and in the best interest of the cotenants as a group.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c23A/s23A.010/b">
<num value="b">(b)</num>
<content>If the court orders an open-market sale and the parties, not later than the 10th day after the date the order is entered, agree on a real estate broker to offer the property for sale, the court shall appoint the broker and establish a reasonable commission. If the parties do not agree on a broker, the court shall appoint a disinterested real estate broker to offer the property for sale and shall establish a reasonable commission. The broker shall offer the property for sale in a commercially reasonable manner at a price no lower than the determination of value and on the terms and conditions established by the court.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c23A/s23A.010/c">
<num value="c">(c)</num>
<chapeau>If the broker appointed under Subsection (b) obtains within a reasonable time an offer to purchase the property for at least the determination of value:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.010/1">
<num value="1">(1)</num>
<content>the broker shall comply with the reporting requirements of Section 23A.011; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.010/2">
<num value="2">(2)</num>
<content>the sale may be completed in accordance with state law other than this chapter.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c23A/s23A.010/d">
<num value="d">(d)</num>
<chapeau>If the broker appointed under Subsection (b) does not obtain within a reasonable time an offer to purchase the property for at least the determination of value, the court, after hearing, may:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.010/1">
<num value="1">(1)</num>
<content>approve the highest outstanding offer, if any;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.010/2">
<num value="2">(2)</num>
<content>redetermine the value of the property and order that the property continue to be offered for an additional time; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.010/3">
<num value="3">(3)</num>
<content>order that the property be sold by sealed bids or at an auction.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c23A/s23A.010/e">
<num value="e">(e)</num>
<content>If the court orders a sale by sealed bids or at an auction, the court shall set terms and conditions of the sale. If the court orders an auction, the auction must be conducted in the manner provided by law for a sale made under execution.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c23A/s23A.010/f">
<num value="f">(f)</num>
<content>If a purchaser is entitled to a share of the proceeds of the sale, the purchaser is entitled to a credit against the price in an amount equal to the purchaser's share of the proceeds.</content>
</subsection>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 297 (S.B. 499), Sec. 1, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c23A/s23A.011">
<num value="23A.011">Sec. 23A.011.</num>
<heading>REPORT OF OPEN-MARKET SALE</heading>
<subsection identifier="/us/tx/pr/t4/c23A/s23A.011/a">
<num value="a">(a)</num>
<content>Unless required to do so earlier by other law governing the partition of real property, a broker appointed under Section 23A.010(b) to offer heirs' property for open-market sale shall file a report with the court not later than the seventh day after the date an offer is received to purchase the property for at least the value determined under Section 23A.006 or 23A.010.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c23A/s23A.011/b">
<num value="b">(b)</num>
<chapeau>The report required by Subsection (a) must contain the following information:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.011/1">
<num value="1">(1)</num>
<content>a description of the property to be sold to each buyer;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.011/2">
<num value="2">(2)</num>
<content>the name of each buyer;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.011/3">
<num value="3">(3)</num>
<content>the proposed purchase price;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.011/4">
<num value="4">(4)</num>
<content>the terms and conditions of the proposed sale, including the terms of any owner financing;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.011/5">
<num value="5">(5)</num>
<content>the amounts to be paid to lienholders;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.011/6">
<num value="6">(6)</num>
<content>a statement of contractual or other arrangements or conditions of the broker's commission; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c23A/s23A.011/7">
<num value="7">(7)</num>
<content>other material facts relevant to the sale.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 297 (S.B. 499), Sec. 1, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c23A/s23A.012">
<num value="23A.012">Sec. 23A.012.</num>
<heading>UNIFORMITY OF APPLICATION AND CONSTRUCTION</heading>
<content>In applying and construing this chapter, consideration must be given to the need to promote uniformity of the law with respect to the subject matter of this chapter among states that enact a law based on the uniform act on which this chapter is based.</content>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 297 (S.B. 499), Sec. 1, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c23A/s23A.013">
<num value="23A.013">Sec. 23A.013.</num>
<heading>RELATION TO ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE ACT</heading>
<content>This chapter modifies, limits, and supersedes the Electronic Signatures in Global and National Commerce Act (15 U.S.C. Section 7001 et seq.) but does not modify, limit, or supersede Section 101(c) of that act (15 U.S.C. Section 7001(c)) or authorize electronic delivery of any of the notices described in Section 103(b) of that act (15 U.S.C. Section 7003(b)).</content>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 297 (S.B. 499), Sec. 1, eff. September 1, 2017.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t4/c24">
<num value="24">CHAPTER 24.</num>
<heading>FORCIBLE ENTRY AND DETAINER</heading>
<section identifier="/us/tx/pr/t4/c24/s24.001">
<num value="24.001">Sec. 24.001.</num>
<heading>FORCIBLE ENTRY AND DETAINER</heading>
<subsection identifier="/us/tx/pr/t4/c24/s24.001/a">
<num value="a">(a)</num>
<content>A person commits a forcible entry and detainer if the person enters the real property of another without legal authority or by force and refuses to surrender possession on demand.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.001/b">
<num value="b">(b)</num>
<chapeau>For the purposes of this chapter, a forcible entry is:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c24/s24.001/1">
<num value="1">(1)</num>
<content>an entry without the consent of the person in actual possession of the property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.001/2">
<num value="2">(2)</num>
<content>an entry without the consent of a tenant at will or by sufferance; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.001/3">
<num value="3">(3)</num>
<content>an entry without the consent of a person who acquired possession by forcible entry.</content>
</paragraph>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3514, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 688, Sec. 1, eff. Sept. 1, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c24/s24.002">
<num value="24.002">Sec. 24.002.</num>
<heading>FORCIBLE DETAINER</heading>
<subsection identifier="/us/tx/pr/t4/c24/s24.002/a">
<num value="a">(a)</num>
<chapeau>A person who refuses to surrender possession of real property on demand commits a forcible detainer if the person:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c24/s24.002/1">
<num value="1">(1)</num>
<content>is a tenant or a subtenant wilfully and without force holding over after the termination of the tenant's right of possession;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.002/2">
<num value="2">(2)</num>
<content>is a tenant at will or by sufferance, including an occupant at the time of foreclosure of a lien superior to the tenant's lease; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.002/3">
<num value="3">(3)</num>
<content>is a tenant of a person who acquired possession by forcible entry.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.002/b">
<num value="b">(b)</num>
<content>The demand for possession must be made in writing by a person entitled to possession of the property and must comply with the requirements for notice to vacate under Section 24.005.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3514, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1985, 69th Leg., ch. 200, Sec. 1, eff. Aug. 26, 1985; Acts 1989, 71st Leg., ch. 688, Sec. 2, eff. Sept. 1, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c24/s24.003">
<num value="24.003">Sec. 24.003.</num>
<heading>SUBSTITUTION OF PARTIES</heading>
<content>If a tenancy for a term expires while the tenant's suit for forcible entry is pending, the landlord may prosecute the suit in the tenant's name for the landlord's benefit and at the landlord's expense. It is immaterial whether the tenant received possession from the landlord or became a tenant after obtaining possession of the property.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3515, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1985, 69th Leg., ch. 891, Sec. 1, eff. Aug. 26, 1985.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c24/s24.004">
<num value="24.004">Sec. 24.004.</num>
<heading>JURISDICTION; DISMISSAL</heading>
<subsection identifier="/us/tx/pr/t4/c24/s24.004/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (b), a justice court in the precinct in which the real property is located has jurisdiction in an eviction suit. Eviction suits include forcible entry and detainer and forcible detainer suits. A justice court has jurisdiction to issue a writ of possession under this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.004/b">
<num value="b">(b)</num>
<content>A justice court does not have jurisdiction in a forcible entry and detainer or forcible detainer suit and shall dismiss the suit if the defendant files a sworn statement alleging the suit is based on a deed executed in violation of Chapter 21A, Business & Commerce Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.004/c">
<num value="c">(c)</num>
<content>A justice court in which a petition is filed under Section 24.00505 must adjudicate the right to actual possession of the premises. The justice court may not adjudicate title to the premises. Counterclaims and the joinder of suits against third parties are not permitted in eviction suits. This subsection does not preclude a claim that may not be asserted under this subsection from being brought in a separate suit in a court of proper jurisdiction.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3515, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1985, 69th Leg., ch. 891, Sec. 1, eff. Aug. 26, 1985; Acts 1997, 75th Leg., ch. 1205, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 958 (H.B. 1111), Sec. 1, eff. January 1, 2012.
Acts 2011, 82nd Leg., R.S., Ch. 1242 (S.B. 1320), Sec. 3, eff. September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 161 (S.B. 1093), Sec. 22.002(28), eff. September 1, 2013.
Acts 2025, 89th Leg., R.S., Ch. 960 (S.B. 38), Sec. 1, eff. January 1, 2026.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c24/s24.0041">
<num value="24.0041">Sec. 24.0041.</num>
<heading>VENUE</heading>
<content>An eviction suit must be brought in the justice precinct in which the real property is located.</content>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 960 (S.B. 38), Sec. 2, eff. January 1, 2026.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c24/s24.0042">
<num value="24.0042">Sec. 24.0042.</num>
<heading>COMPUTATION OF TIME</heading>
<chapeau>A period of time prescribed by this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0042/1">
<num value="1">(1)</num>
<content>does not include the day of the event that begins the period;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0042/2">
<num value="2">(2)</num>
<content>includes Saturdays, Sundays, and state or federal holidays;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0042/3">
<num value="3">(3)</num>
<content>includes the last day of the period; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0042/4">
<num value="4">(4)</num>
<content>if the last day of the period is a Saturday, Sunday, or state or federal holiday, is extended so that the last day of the period is the next day that is not a Saturday, Sunday, or state or federal holiday.</content>
</paragraph>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 960 (S.B. 38), Sec. 2, eff. January 1, 2026.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c24/s24.0043">
<num value="24.0043">Sec. 24.0043.</num>
<heading>AUTHORITY TO MODIFY OR SUSPEND EVICTION PROCEDURES</heading>
<subsection identifier="/us/tx/pr/t4/c24/s24.0043/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (b) but notwithstanding any other law, only the legislature may modify or suspend procedures prescribed by this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.0043/b">
<num value="b">(b)</num>
<chapeau>This section does not affect the authority of the supreme court to modify or suspend certain provisions for the conduct of any court proceedings affected by a disaster under Section 22.0035(b), Government Code, but such a modification or suspension may be applied to an eviction suit only if:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0043/1">
<num value="1">(1)</num>
<content>the modification or suspension is applicable to all courts similarly affected by the disaster without regard to the subject matter of an action; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0043/2">
<num value="2">(2)</num>
<content>any request for the modification or suspension is made in writing and available to the public.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 960 (S.B. 38), Sec. 2, eff. January 1, 2026.
Amended by:
Acts 2025, 89th Leg., 2nd C.S., Ch. 7 (H.B. 16), Sec. 12.09, eff. January 1, 2026.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c24/s24.005">
<num value="24.005">Sec. 24.005.</num>
<heading>NOTICE REQUIRED BEFORE FILING CERTAIN EVICTION SUITS</heading>
<subsection identifier="/us/tx/pr/t4/c24/s24.005/a">
<num value="a">(a)</num>
<content>If the occupant is a tenant under a written lease or oral rental agreement, the landlord must give a tenant who defaults or holds over beyond the end of the rental term or renewal period at least three days' written notice to vacate the premises before the landlord files a forcible detainer suit, unless the parties have contracted for a shorter or longer notice period in a written lease or agreement. In a forcible detainer suit against a tenant whose right of possession is terminated based solely on nonpayment of rent and who was not late or delinquent in paying rent to the landlord before the month in which the notice is given, written notice under this section shall be given in the form of a notice to pay rent or vacate. In a forcible detainer suit against a tenant whose right of possession is terminated based on nonpayment of rent and who was late or delinquent in paying rent to the landlord before the month in which the notice is given, written notice under this section may be given in the form of either a notice to pay rent or vacate or a notice to vacate. A landlord who files a forcible detainer suit on grounds that the tenant is holding over beyond the end of the rental term or renewal period must also comply with the tenancy termination requirements of Section 91.001.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.005/b">
<num value="b">(b)</num>
<content>If the occupant is a tenant at will or by sufferance, the landlord must give the tenant at least three days' written notice to vacate before the landlord files a forcible detainer suit unless the parties have contracted for a shorter or longer notice period in a written lease or agreement. If a building is purchased at a tax foreclosure sale or a trustee's foreclosure sale under a lien superior to the tenant's lease and the tenant timely pays rent and is not otherwise in default under the tenant's lease after foreclosure, the purchaser must give a residential tenant of the building at least 30 days' written notice to vacate if the purchaser chooses not to continue the lease. The tenant is considered to timely pay the rent under this subsection if, during the month of the foreclosure sale, the tenant pays the rent for that month to the landlord before receiving any notice that a foreclosure sale is scheduled during the month or pays the rent for that month to the foreclosing lienholder or the purchaser at foreclosure not later than the fifth day after the date of receipt of a written notice of the name and address of the purchaser that requests payment. Before a foreclosure sale, a foreclosing lienholder may give written notice to a tenant stating that a foreclosure notice has been given to the landlord or owner of the property and specifying the date of the foreclosure.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.005/c">
<num value="c">(c)</num>
<content>If the occupant is a tenant of a person who acquired possession by forcible entry, the landlord must give the person at least three days' written notice to vacate before the landlord files a forcible detainer suit.</content>
<continuation>(c-1) If a federal law or rule requires a landlord to give notice to a tenant before the landlord requires the tenant to vacate the premises:</continuation>
<paragraph identifier="/us/tx/pr/t4/c24/s24.005/1">
<num value="1">(1)</num>
<content>a landlord that satisfies the notice requirements of this section is not required to delay the filing of an eviction suit based on the federal requirement;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.005/2">
<num value="2">(2)</num>
<content>the federal requirement is not a basis for a court to delay or abate the conduct of the eviction suit; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.005/3">
<num value="3">(3)</num>
<content>a writ of possession may not be served on the tenant until the period between the delivery of the notice under this section and the service of the writ equals or exceeds the period prescribed by the federal requirement.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.005/d">
<num value="d">(d)</num>
<content>In all situations in which the entry by the occupant was a forcible entry under Section 24.001, the person entitled to possession must give the occupant oral or written notice to vacate before the landlord files a forcible entry and detainer suit. The notice to vacate under this subsection may be to vacate immediately or by a specified deadline.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.005/e">
<num value="e">(e)</num>
<chapeau>If the lease or applicable state or federal law or rule requires a landlord to give a tenant an opportunity to respond to a notice of proposed eviction before filing an eviction suit:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c24/s24.005/1">
<num value="1">(1)</num>
<content>the notice period in a notice to pay rent or vacate or notice to vacate under Subsection (a) may, at the landlord's discretion, run concurrently with the period provided for the tenant to respond to the notice of proposed eviction; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.005/2">
<num value="2">(2)</num>
<content>the notice to pay rent or vacate or notice to vacate may include the required opportunity to respond to the notice of proposed eviction.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.005/f">
<num value="f">(f)</num>
<content>Repealed by Acts 2025, 89th Leg., R.S., Ch. 960 (S.B. 38), Sec. 15(1), eff. January 1, 2026.</content>
<continuation>(f-1) Repealed by Acts 2025, 89th Leg., R.S., Ch. 960 (S.B. 38), Sec. 15(1), eff. January 1, 2026.</continuation>
<continuation>(f-2) Repealed by Acts 2025, 89th Leg., R.S., Ch. 960 (S.B. 38), Sec. 15(1), eff. January 1, 2026.</continuation>
<continuation>(f-3) A notice required by this section must be delivered using at least one of the following methods:</continuation>
<paragraph identifier="/us/tx/pr/t4/c24/s24.005/1">
<num value="1">(1)</num>
<content>mail, including first class mail, registered mail, certified mail, or a delivery service;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.005/2">
<num value="2">(2)</num>
<content>delivery to the inside of the premises, in a conspicuous place;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.005/3">
<num value="3">(3)</num>
<content>hand delivery to any tenant of the premises who is 16 years of age or older; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.005/4">
<num value="4">(4)</num>
<content>if the parties have agreed in writing, electronic communication, including e-mail or other electronic means.</content>
<continuation>(f-4) Subsection (f-3) does not apply if the tenant actually receives the notice.</continuation>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.005/g">
<num value="g">(g)</num>
<content>Repealed by Acts 2025, 89th Leg., R.S., Ch. 960 (S.B. 38), Sec. 15(1), eff. January 1, 2026.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.005/h">
<num value="h">(h)</num>
<content>Repealed by Acts 2025, 89th Leg., R.S., Ch. 960 (S.B. 38), Sec. 15(1), eff. January 1, 2026.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.005/i">
<num value="i">(i)</num>
<content>Repealed by Acts 2025, 89th Leg., R.S., Ch. 960 (S.B. 38), Sec. 15(1), eff. January 1, 2026.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3515, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1985, 69th Leg., ch. 891, Sec. 1, eff. Sept. 1, 1985; Acts 1989, 71st Leg., ch. 688, Sec. 3, eff. Sept. 1, 1989; Acts 1997, 75th Leg., ch. 1205, Sec. 2, eff. Sept. 1, 1997.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1198 (S.B. 1367), Sec. 1, eff. January 1, 2016.
Acts 2025, 89th Leg., R.S., Ch. 960 (S.B. 38), Sec. 3, eff. January 1, 2026.
Acts 2025, 89th Leg., R.S., Ch. 960 (S.B. 38), Sec. 4, eff. January 1, 2026.
Acts 2025, 89th Leg., R.S., Ch. 960 (S.B. 38), Sec. 15(1), eff. January 1, 2026.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c24/s24.00505">
<num value="24.00505">Sec. 24.00505.</num>
<heading>PETITION</heading>
<content>To initiate an eviction suit, a sworn petition must be filed with the court. The petition must include the contents required by the Texas Rules of Civil Procedure.</content>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 960 (S.B. 38), Sec. 5, eff. January 1, 2026.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c24/s24.00506">
<num value="24.00506">Sec. 24.00506.</num>
<heading>RULES OF COURT</heading>
<subsection identifier="/us/tx/pr/t4/c24/s24.00506/a">
<num value="a">(a)</num>
<content>A court may adopt local rules, forms, or standing orders for eviction suits in accordance with the Texas Rules of Civil Procedure.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.00506/b">
<num value="b">(b)</num>
<chapeau>A court may not adopt local rules, forms, or standing orders for eviction suits that:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c24/s24.00506/1">
<num value="1">(1)</num>
<content>require content in or with the petition other than the content required by the Texas Rules of Civil Procedure;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.00506/2">
<num value="2">(2)</num>
<content>require any mediation, pretrial conference, or other proceeding before trial; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.00506/3">
<num value="3">(3)</num>
<chapeau>authorize the dismissal of an eviction suit on the basis that the petition is improper if the petition:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c24/s24.00506/A">
<num value="A">(A)</num>
<content>meets the requirements of the Texas Rules of Civil Procedure; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c24/s24.00506/B">
<num value="B">(B)</num>
<content>can be amended to meet the requirements of the Texas Rules of Civil Procedure.</content>
</subparagraph>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 960 (S.B. 38), Sec. 5, eff. January 1, 2026.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c24/s24.0051">
<num value="24.0051">Sec. 24.0051.</num>
<heading>PROCEDURES APPLICABLE IN SUIT TO EVICT AND RECOVER UNPAID RENT</heading>
<subsection identifier="/us/tx/pr/t4/c24/s24.0051/a">
<num value="a">(a)</num>
<content>In a suit filed in justice court in which the landlord files a sworn petition seeking judgment against a tenant for possession of the premises and unpaid rent, personal service on the tenant or service on the tenant under the Texas Rules of Civil Procedure is procedurally sufficient to support a default judgment for possession of the premises and unpaid rent.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.0051/b">
<num value="b">(b)</num>
<content>A landlord may recover unpaid rent under this section regardless of whether the tenant vacated the premises after the date the landlord filed the sworn petition and before the date the court renders judgment.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.0051/c">
<num value="c">(c)</num>
<content>In a suit to recover possession of the premises, whether or not unpaid rent is claimed, the citation must include the following notice to the tenant:</content>
</subsection>
<sourceCredit>FAILURE TO APPEAR FOR TRIAL MAY RESULT IN A DEFAULT JUDGMENT BEING ENTERED AGAINST YOU.
(d) In a suit described by Subsection (c), the citation must include the following notice to the tenant on the first page of the citation in English and Spanish and in conspicuous bold print:
SUIT TO EVICT
THIS SUIT TO EVICT INVOLVES IMMEDIATE DEADLINES. A TENANT WHO IS SERVING ON ACTIVE MILITARY DUTY MAY HAVE SPECIAL RIGHTS OR RELIEF RELATED TO THIS SUIT UNDER FEDERAL LAW, INCLUDING THE SERVICEMEMBERS CIVIL RELIEF ACT (50 U.S.C. APP. SECTION 501 ET SEQ.), OR STATE LAW, INCLUDING SECTION 92.017, TEXAS PROPERTY CODE. CALL THE STATE BAR OF TEXAS TOLL-FREE AT 1-877-9TEXBAR IF YOU NEED HELP LOCATING AN ATTORNEY. IF YOU CANNOT AFFORD TO HIRE AN ATTORNEY, YOU MAY BE ELIGIBLE FOR FREE OR LOW-COST LEGAL ASSISTANCE.
(e) If the landlord files a motion for summary disposition under Section 24.005106 with the petition, the citation must include the following notice to the tenant on the first page of the citation in English and Spanish and in conspicuous bold print:
THE PETITION INCLUDES A MOTION FOR SUMMARY DISPOSITION. IF THE MOTION SHOWS THERE ARE NO GENUINELY DISPUTED FACTS THAT WOULD PREVENT A JUDGMENT IN FAVOR OF THE LANDLORD, THE COURT MAY ENTER JUDGMENT IN FAVOR OF THE LANDLORD WITHOUT A TRIAL UNLESS:
(1) NOT LATER THAN THE FOURTH DAY AFTER YOU ARE SERVED WITH THE LANDLORD'S SWORN PETITION, YOU FILE A RESPONSE SETTING OUT SUPPORTING FACTS AND ANY APPLICABLE DOCUMENTS ON WHICH YOUR RESPONSE RELIES; AND
(2) THE JUSTICE COURT DETERMINES THAT SERVICE ON YOU WAS PROPER AND, BASED ON THE LANDLORD'S SWORN PETITION AND YOUR RESPONSE, THERE ARE GENUINELY DISPUTED FACTS THAT WOULD PREVENT A JUDGMENT IN FAVOR OF THE LANDLORD.
(f) A sheriff or constable, including a deputy sheriff or deputy constable, shall make a diligent effort to serve the citation and petition not later than the fifth business day after the date the petition is filed. If the citation and petition are not served on or before the fifth business day after the date the petition is filed, the landlord may, but is not obligated to, provide for the citation and petition to be served by any other law enforcement officer, including an off-duty officer with appropriate identification, that has received appropriate training in the service of process, eviction procedures, and the execution of writs, as determined by the Texas Commission on Law Enforcement.
(g) The court:
(1) shall, subject to this subsection, hold the trial of an eviction suit on a date that is not earlier than the 10th day or later than the 21st day after the date the petition is filed;
(2) may not hold the trial on a date that is earlier than the fourth day after the date the tenant is served with the petition; and
(3) may not postpone the date of a trial for more than seven days unless the parties agree to the postponement in writing.
Added by Acts 1999, 76th Leg., ch. 1464, Sec. 1, eff. Sept. 1, 1999.
Amended by:
Acts 2005, 79th Leg., Ch. 712 (S.B. 439), Sec. 1, eff. September 1, 2005.
Acts 2007, 80th Leg., R.S., Ch. 812 (S.B. 1483), Sec. 1, eff. September 1, 2007.
Acts 2011, 82nd Leg., R.S., Ch. 252 (H.B. 1127), Sec. 1, eff. January 1, 2012.
Acts 2025, 89th Leg., R.S., Ch. 960 (S.B. 38), Sec. 6, eff. January 1, 2026.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c24/s24.005105">
<num value="24.005105">Sec. 24.005105.</num>
<heading>ELECTRONIC PROCEEDINGS</heading>
<content>If the parties agree, a justice court may allow the parties in an eviction suit to appear at a court proceeding in the suit by videoconference, teleconference, or other available electronic means.</content>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 960 (S.B. 38), Sec. 7, eff. January 1, 2026.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c24/s24.005106">
<num value="24.005106">Sec. 24.005106.</num>
<heading>SUMMARY DISPOSITION AND TRIAL</heading>
<subsection identifier="/us/tx/pr/t4/c24/s24.005106/a">
<num value="a">(a)</num>
<chapeau>A landlord that files a sworn petition alleging a forcible entry and detainer under Section 24.00505 may include with the petition a sworn motion for summary disposition without trial. The motion must set out all supporting facts, and documents on which the motion relies must be attached. If the motion shows that there are no genuinely disputed facts that would prevent a judgment in favor of the landlord, the court may enter judgment in favor of the landlord without a trial unless:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c24/s24.005106/1">
<num value="1">(1)</num>
<content>not later than the fourth day after the date the tenant is served with the landlord's sworn petition, the tenant files a response setting out supporting facts, and providing any applicable documents, on which the response relies; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.005106/2">
<num value="2">(2)</num>
<content>the justice court determines that service on the tenant was proper and, based on the landlord's sworn petition and the tenant's response, if any, there are genuinely disputed facts that would prevent a judgment in favor of the landlord.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.005106/b">
<num value="b">(b)</num>
<chapeau>The justice court:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c24/s24.005106/1">
<num value="1">(1)</num>
<content>may enter judgment for the landlord regardless of the tenant's response if the response does not show there is a genuinely disputed fact that would prevent judgment in favor of the landlord; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.005106/2">
<num value="2">(2)</num>
<content>may consider a response filed by the tenant later than the fourth day after the date the tenant was served with the landlord's sworn petition and motion if the response shows there is a genuinely disputed fact that would prevent judgment in favor of the landlord and the tenant has filed the response before judgment has been entered.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.005106/c">
<num value="c">(c)</num>
<content>If the justice court determines that there are genuinely disputed facts that would prevent a judgment in favor of the landlord, the justice court shall set a trial date that is not earlier than the 10th day and not later than the 21st day after the date the petition is filed by the landlord. The justice court may immediately set the case for trial upon the tenant's request for a trial in response to a motion for summary disposition.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.005106/d">
<num value="d">(d)</num>
<content>A judgment on summary disposition under this section has the same effect as any other judgment in an eviction suit.</content>
</subsection>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 960 (S.B. 38), Sec. 7, eff. January 1, 2026.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c24/s24.005107">
<num value="24.005107">Sec. 24.005107.</num>
<heading>APPEAL TO COUNTY COURT</heading>
<subsection identifier="/us/tx/pr/t4/c24/s24.005107/a">
<num value="a">(a)</num>
<content>A party may appeal the judgment of a justice court in an eviction suit by filing a bond, cash deposit, or statement of inability to afford payment of court costs with the justice court not later than the fifth day after the date the judgment is signed. A tenant who files an appeal must affirm, under penalty of perjury, the tenant's good faith belief that the tenant has a meritorious defense and that the appeal is not for the purpose of delay. An appeal is perfected when a bond, cash deposit, or statement of inability to afford payment of court costs is timely filed with the justice court in accordance with this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.005107/b">
<num value="b">(b)</num>
<content>The justice court shall forward the transcript and original papers in an appeal of an eviction case to the county court, by electronic means or otherwise, not earlier than 4 p.m. on the sixth day or later than 4 p.m. on the 10th day after the date the tenant files the appeal, except that, if the court confirms that the tenant has timely paid the initial rent payment into the justice court registry in accordance with Section 24.0053, the court may forward the transcript and original papers immediately.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.005107/c">
<num value="c">(c)</num>
<content>The county court shall hold a trial not later than the 21st day after the date the transcript and original papers are delivered to the county court.</content>
</subsection>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 960 (S.B. 38), Sec. 7, eff. January 1, 2026.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c24/s24.00511">
<num value="24.00511">Sec. 24.00511.</num>
<heading>APPEAL BOND FOR CERTAIN EVICTION SUITS</heading>
<subsection identifier="/us/tx/pr/t4/c24/s24.00511/a">
<num value="a">(a)</num>
<content>In a residential eviction suit, the justice court shall state in the court's judgment the amount of the appeal bond, taking into consideration the money required to be paid into the court registry under Section 24.0053.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.00511/b">
<num value="b">(b)</num>
<content>In addition to meeting all other requirements of law, the bond must require the surety to provide the surety's contact information, including an address, phone number, and e-mail address, if any. If any of the contact information changes, the surety shall inform the court of the surety's new contact information.</content>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 1027 (H.B. 1334), Sec. 1, eff. January 1, 2016.
Amended by:
Acts 2025, 89th Leg., R.S., Ch. 960 (S.B. 38), Sec. 8, eff. January 1, 2026.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c24/s24.00512">
<num value="24.00512">Sec. 24.00512.</num>
<heading>CONTEST OF CERTAIN APPEAL BONDS</heading>
<subsection identifier="/us/tx/pr/t4/c24/s24.00512/a">
<num value="a">(a)</num>
<content>This section does not apply to an appeal bond issued by a corporate surety authorized by the Texas Department of Insurance to engage in business in this state.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.00512/b">
<num value="b">(b)</num>
<content>If a party appeals the judgment of a justice court in a residential eviction suit for nonpayment of rent by filing an appeal bond, the opposing party may contest the bond amount, form of the bond, or financial ability of a surety to pay the bond by filing a written notice with the justice court contesting the appeal bond on or before the fifth day after the date the appeal bond is filed and serving a copy on the other party. After the notice is filed, the justice court shall notify the other party and the surety of the contest.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.00512/c">
<num value="c">(c)</num>
<content>Not later than the fifth day after the date the contest is filed, the justice court shall hold a hearing to hear evidence to determine whether to approve or disapprove the amount or form of the bond or the surety.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.00512/d">
<num value="d">(d)</num>
<content>If a party contests the amount or form of the bond, the contesting party has the burden to prove, by a preponderance of the evidence, that the amount or form of the bond, as applicable, is insufficient. If a party contests the financial ability of a surety to pay the bond, the party filing the bond must prove, by a preponderance of the evidence, that the surety has sufficient nonexempt assets to pay the appeal bond. If the justice court determines that the amount or form of the bond is insufficient or the surety does not have sufficient nonexempt assets to pay the appeal bond, the justice court must disapprove the bond. If the surety fails to appear at the contest hearing, the failure to appear is prima facie evidence that the bond should be disapproved.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.00512/e">
<num value="e">(e)</num>
<content>Not later than the fifth day after the date the justice court disapproves an appeal bond, the party appealing may make a cash deposit, file a sworn statement of inability to pay with the justice court, or appeal the decision disapproving the appeal bond to the county court. If the party appealing fails to make a cash deposit, file a sworn statement of inability to pay, or appeal the decision disapproving the appeal bond, the judgment of the justice court becomes final and a writ of possession and other processes to enforce the judgment must be issued on the payment of the required fee.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.00512/f">
<num value="f">(f)</num>
<content>If an appeal of a decision disapproving the appeal bond is filed, the justice court shall transmit to the county court the contest to the appeal bond and all relevant documents. The county court shall docket the appeal, schedule a hearing to be held not later than the fifth day after the date the appeal is docketed, notify the parties and the surety of the hearing time and date, and hear the contest de novo. The failure of the county court to hold a timely hearing is not grounds for approval or denial of the appeal. A writ of possession may not be issued before the county court issues a final decision on the appeal bond, except as provided by Section 24.0054.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.00512/g">
<num value="g">(g)</num>
<content>After the contest is heard by the county court, the county clerk shall transmit the transcript and records of the case to the justice court. If the county court disapproves the appeal bond, the party may, not later than the fifth day after the date the court disapproves the appeal bond, perfect the appeal of the judgment on the eviction suit by making a cash deposit in the justice court in an amount determined by the county court or by filing a sworn statement of inability to pay with the justice court pursuant to the Texas Rules of Civil Procedure. If the tenant is the appealing party and a cash deposit in the required amount is not timely made or a sworn statement of inability to pay is not timely filed, the judgment of the justice court becomes final and a writ of possession and other processes to enforce the judgment must be issued on the payment of the required fee. If the landlord is the appealing party and a cash deposit is not timely made or a sworn statement of inability to pay is not timely filed, the judgment of the justice court becomes final. If the appeal bond is approved by the county court, the court shall transmit the transcript and other records of the case to the justice court, and the justice court shall proceed as if the appeal bond was originally approved.</content>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 1027 (H.B. 1334), Sec. 1, eff. January 1, 2016.
Amended by:
Acts 2025, 89th Leg., R.S., Ch. 960 (S.B. 38), Sec. 9, eff. January 1, 2026.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c24/s24.0052">
<num value="24.0052">Sec. 24.0052.</num>
<heading>TENANT APPEAL ON STATEMENT OF INABILITY TO AFFORD PAYMENT OF COURT COSTS</heading>
<subsection identifier="/us/tx/pr/t4/c24/s24.0052/a">
<num value="a">(a)</num>
<chapeau>If a tenant in a residential eviction suit is unable to pay the costs of appeal or file an appeal bond as required by the Texas Rules of Civil Procedure, the tenant may appeal the judgment of the justice court by filing with the justice court, not later than the fifth day after the date the judgment is signed, a statement of inability to afford payment of court costs sworn before the clerk of the justice court or a notary public that states that the tenant is unable to pay the costs of appeal or file an appeal bond. The statement must contain the following information:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0052/1">
<num value="1">(1)</num>
<content>the tenant's identity;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0052/2">
<num value="2">(2)</num>
<content>the nature and amount of the tenant's employment income;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0052/3">
<num value="3">(3)</num>
<content>the income of the tenant's spouse, if applicable and available to the tenant;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0052/4">
<num value="4">(4)</num>
<content>the nature and amount of any governmental entitlement income of the tenant;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0052/5">
<num value="5">(5)</num>
<content>all other income of the tenant;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0052/6">
<num value="6">(6)</num>
<content>the amount of available cash and funds available in savings or checking accounts of the tenant;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0052/7">
<num value="7">(7)</num>
<content>real and personal property owned by the tenant, other than household furnishings, clothes, tools of a trade, or personal effects;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0052/8">
<num value="8">(8)</num>
<content>the tenant's debts and monthly expenses; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0052/9">
<num value="9">(9)</num>
<content>the number and age of the tenant's dependents and where those dependents reside.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.0052/b">
<num value="b">(b)</num>
<content>The justice court shall make available a form that a person may use to comply with the requirements of Subsection (a).</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.0052/c">
<num value="c">(c)</num>
<content>The justice court shall promptly notify the landlord if a statement described by Subsection (a) is filed by the tenant.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.0052/d">
<num value="d">(d)</num>
<content>A landlord may contest a statement filed under this section on or before the fifth day after the date the statement is filed. If the landlord contests the statement, the justice court shall notify the parties and hold a hearing to determine whether the tenant is unable to pay the costs of appeal or file an appeal bond. The hearing shall be held not later than the fifth day after the date the landlord notifies the court clerk of the landlord's contest. At the hearing, the tenant has the burden to prove by competent evidence, including documents or credible testimony of the tenant or others, that the tenant is unable to pay the costs of appeal or file an appeal bond.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.0052/e">
<num value="e">(e)</num>
<content>If the justice court approves a statement filed by a tenant under this section, the tenant is not required to pay the county court filing fee or file an additional statement in the county court under Subsection (a).</content>
</subsection>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 1185 (H.B. 62), Sec. 1, eff. September 1, 2005.
Amended by:
Acts 2025, 89th Leg., R.S., Ch. 960 (S.B. 38), Sec. 10, eff. January 1, 2026.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c24/s24.00521">
<num value="24.00521">Sec. 24.00521.</num>
<heading>CONTEST OF CERTAIN APPEAL BONDS IN COUNTY COURT</heading>
<content>A contest under Section 24.00512 does not preclude a party from contesting the appeal bond in the county court after the county court has jurisdiction over the eviction suit. After the county court has jurisdiction over the eviction suit, the county court may modify the amount or form of the bond and determine the sufficiency of the surety.</content>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 1027 (H.B. 1334), Sec. 2, eff. January 1, 2016.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c24/s24.0053">
<num value="24.0053">Sec. 24.0053.</num>
<heading>PAYMENT OF RENT DURING APPEAL OF EVICTION</heading>
<subsection identifier="/us/tx/pr/t4/c24/s24.0053/a">
<num value="a">(a)</num>
<chapeau>If the justice court enters judgment for the landlord in a residential eviction case, the court shall determine the amount of rent to be paid each rental pay period during the pendency of any appeal and shall note that amount in the judgment. If a portion of the rent is payable by a government agency, the court shall determine and note in the judgment the portion of the rent to be paid by the government agency and the portion to be paid by the tenant. The court's determination shall be in accordance with the terms of the rental agreement and applicable laws and regulations. If there is no rental agreement, the court shall determine:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0053/1">
<num value="1">(1)</num>
<content>the rental pay period; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0053/2">
<num value="2">(2)</num>
<chapeau>the amount of rent to be paid by the tenant in each rental pay period, which must be the greater of:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c24/s24.0053/A">
<num value="A">(A)</num>
<content>$250; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c24/s24.0053/B">
<num value="B">(B)</num>
<content>the fair market rent, if determined by the court.</content>
<continuation>(a-1) If a tenant files an appeal of a justice court's judgment in an eviction suit, the justice court shall provide to the tenant a written notice at the time the appeal is filed that contains the following information in bold or conspicuous type:</continuation>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0053/1">
<num value="1">(1)</num>
<content>the amount of rent stated in the judgment that the tenant must pay into the justice court or county court registry, as applicable, during the pendency of the appeal;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0053/2">
<num value="2">(2)</num>
<content>whether the rent must be paid in cash, cashier's check, or money order, and to whom the cashier's check or money order, if applicable, must be made payable;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0053/3">
<num value="3">(3)</num>
<content>the calendar date by which the rent must be paid into the justice court or county court registry, as applicable;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0053/4">
<num value="4">(4)</num>
<content>for a court that closes before 5 p.m. on the date specified by Subdivision (3), the time the court closes; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0053/5">
<num value="5">(5)</num>
<content>a statement that failure to pay the required amount into the justice court or county court registry, as applicable, by the date prescribed by Subdivision (3) may result in the justice court or county court issuing a writ of possession without a hearing.</content>
<continuation>(a-2) The tenant shall:</continuation>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0053/1">
<num value="1">(1)</num>
<content>not later than the fifth day after the date the tenant files the appeal, pay rent for one rental pay period into the justice court registry; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0053/2">
<num value="2">(2)</num>
<content>on or before the beginning of each rental pay period during the pendency of the appeal, pay rent for one rental pay period into the justice court or county court registry, as applicable, according to the court in which the case is pending at the time of payment.</content>
<continuation>(a-3) The justice court or county court, as applicable, shall disburse rent paid into the justice court or county court registry to the landlord on request at any time during or after the pendency of the appeal.</continuation>
<continuation>(a-4) Repealed by Acts 2025, 89th Leg., R.S., Ch. 960 (S.B. 38), Sec. 15(2), eff. January 1, 2026.</continuation>
<continuation>(a-5) A tenant's payment of rent into a court registry under this section relieves the tenant of the obligation to pay rent to the landlord only for the rental pay period for which the payment is made.</continuation>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.0053/b">
<num value="b">(b)</num>
<content>If a government agency is responsible for all or a portion of the rent under an agreement with the landlord, the tenant shall pay only that portion of the rent determined by the justice court under Subsection (a) to be paid by the tenant during appeal, subject to either party's right to contest that determination under Subsection (c).</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.0053/c">
<num value="c">(c)</num>
<content>If the tenant's rent during the rental agreement term has been paid wholly or partly by a government agency, either party may contest the portion of the rent that the justice court determines must be paid into the county court registry by the tenant under this section. The contest must be filed on or before the fifth day after the date the justice signs the judgment. If a contest is filed, not later than the fifth day after the date the contest is filed the justice court shall notify the parties and hold a hearing to determine the amount owed by the tenant in accordance with the terms of the rental agreement and applicable laws and regulations. After hearing the evidence, the justice court shall determine the portion of the rent that must be paid by the tenant under this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.0053/d">
<num value="d">(d)</num>
<content>During the pendency of the appeal, either party may file a motion with the county court to reconsider the amount of the rent that must be paid by the tenant into the registry of the court.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.0053/e">
<num value="e">(e)</num>
<content>If either party files a contest under Subsection (c) and the tenant files a statement of inability to afford payment of court costs that is contested by the landlord under Section 24.0052(d), the justice court shall hold the hearing on both contests at the same time.</content>
</subsection>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 1185 (H.B. 62), Sec. 1, eff. September 1, 2005.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 958 (H.B. 1111), Sec. 2, eff. January 1, 2012.
Acts 2015, 84th Leg., R.S., Ch. 1027 (H.B. 1334), Sec. 3, eff. January 1, 2016.
Acts 2025, 89th Leg., R.S., Ch. 960 (S.B. 38), Sec. 11, eff. January 1, 2026.
Acts 2025, 89th Leg., R.S., Ch. 960 (S.B. 38), Sec. 15(2), eff. January 1, 2026.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c24/s24.0054">
<num value="24.0054">Sec. 24.0054.</num>
<heading>TENANT'S FAILURE TO PAY RENT DURING APPEAL</heading>
<subsection identifier="/us/tx/pr/t4/c24/s24.0054/a">
<num value="a">(a)</num>
<content>During an appeal of an eviction case, the justice court or county court, as applicable, on request shall immediately issue a writ of possession, without hearing, if a tenant fails to pay rent into the appropriate court registry as required by Section 24.0053 and the justice court has provided the written notice required by Section 24.0053(a-1).</content>
<continuation>(a-1) The sheriff, the constable, or another law enforcement officer shall execute a writ of possession under Subsection (a) in accordance with Sections 24.0061(d) through (h). The landlord shall bear the costs of issuing and executing the writ of possession.</continuation>
<continuation>(a-2) If the justice court issues a writ of possession under this section, the justice court shall forward the transcript and original papers in the eviction case to the county court for trial de novo to resolve any remaining issues in the case, such as rent or attorney's fees, notwithstanding the fact that the writ has been issued or executed.</continuation>
<continuation>(a-3) Repealed by Acts 2025, 89th Leg., R.S., Ch. 960 (S.B. 38), Sec. 15(3), eff. January 1, 2026.</continuation>
<continuation>(a-4) Repealed by Acts 2025, 89th Leg., R.S., Ch. 960 (S.B. 38), Sec. 15(3), eff. January 1, 2026.</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.0054/b">
<num value="b">(b)</num>
<content>Repealed by Acts 2025, 89th Leg., R.S., Ch. 960 (S.B. 38), Sec. 15(3), eff. January 1, 2026.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.0054/c">
<num value="c">(c)</num>
<content>Repealed by Acts 2025, 89th Leg., R.S., Ch. 960 (S.B. 38), Sec. 15(3), eff. January 1, 2026.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.0054/d">
<num value="d">(d)</num>
<content>Repealed by Acts 2025, 89th Leg., R.S., Ch. 960 (S.B. 38), Sec. 15(3), eff. January 1, 2026.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.0054/e">
<num value="e">(e)</num>
<content>Repealed by Acts 2025, 89th Leg., R.S., Ch. 960 (S.B. 38), Sec. 15(3), eff. January 1, 2026.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.0054/f">
<num value="f">(f)</num>
<chapeau>During the appeal of an eviction case, if a government agency is responsible for payment of a portion of the rent and does not pay that portion to the landlord or into the justice court or county court registry, the landlord may file a motion with the county court requesting that the tenant be required to pay into the county court registry, as a condition of remaining in possession, the full amount of each rental period's rent, as it becomes due under the rental agreement. After notice and hearing, the court shall grant the motion if the landlord proves by credible evidence that:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0054/1">
<num value="1">(1)</num>
<content>a portion of the rent is owed by a government agency;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0054/2">
<num value="2">(2)</num>
<content>the portion of the rent owed by the government agency is unpaid;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0054/3">
<num value="3">(3)</num>
<content>the landlord did not cause wholly or partly the agency to cease making the payments; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0054/4">
<num value="4">(4)</num>
<content>the landlord did not cause wholly or partly the agency to pay the wrong amount.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 1185 (H.B. 62), Sec. 1, eff. September 1, 2005.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 958 (H.B. 1111), Sec. 3, eff. January 1, 2012.
Acts 2025, 89th Leg., R.S., Ch. 960 (S.B. 38), Sec. 12, eff. January 1, 2026.
Acts 2025, 89th Leg., R.S., Ch. 960 (S.B. 38), Sec. 15(3), eff. January 1, 2026.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c24/s24.006">
<num value="24.006">Sec. 24.006.</num>
<heading>ATTORNEY'S FEES AND COSTS OF SUIT</heading>
<subsection identifier="/us/tx/pr/t4/c24/s24.006/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (b), to be eligible to recover attorney's fees in an eviction suit, a landlord must give a tenant who is unlawfully retaining possession of the landlord's premises a written demand to vacate the premises. The demand must state that if the tenant does not vacate the premises before the 11th day after the date of receipt of the notice and if the landlord files suit, the landlord may recover attorney's fees. The demand must be sent by registered mail or by certified mail, return receipt requested, at least 10 days before the date the suit is filed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.006/b">
<num value="b">(b)</num>
<content>If the landlord provides the tenant notice under Subsection (a) or if a written lease entitles the landlord to recover attorney's fees, a prevailing landlord is entitled to recover reasonable attorney's fees from the tenant.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.006/c">
<num value="c">(c)</num>
<content>If the landlord provides the tenant notice under Subsection (a) or if a written lease entitles the landlord or the tenant to recover attorney's fees, the prevailing tenant is entitled to recover reasonable attorney's fees from the landlord. A prevailing tenant is not required to give notice in order to recover attorney's fees under this subsection.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.006/d">
<num value="d">(d)</num>
<content>The prevailing party is entitled to recover all costs of court.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3516, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1985, 69th Leg., ch. 891, Sec. 1, eff. Sept. 1, 1985; Acts 1989, 71st Leg., ch. 688, Sec. 4, eff. Sept. 1, 1989; Acts 1997, 75th Leg., ch. 1205, Sec. 3, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c24/s24.0061">
<num value="24.0061">Sec. 24.0061.</num>
<heading>WRIT OF POSSESSION</heading>
<subsection identifier="/us/tx/pr/t4/c24/s24.0061/a">
<num value="a">(a)</num>
<chapeau>A landlord who prevails in an eviction suit is entitled to a judgment for possession of the premises and a writ of possession. In this chapter, "premises" means:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0061/1">
<num value="1">(1)</num>
<content>a unit that is occupied or rented; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0061/2">
<num value="2">(2)</num>
<chapeau>any outside area or facility:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c24/s24.0061/A">
<num value="A">(A)</num>
<content>that a tenant is entitled to use under a written lease or oral rental agreement;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c24/s24.0061/B">
<num value="B">(B)</num>
<content>that is held out for the use of tenants generally; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c24/s24.0061/C">
<num value="C">(C)</num>
<content>that is occupied by or in the possession of the person against whom the eviction suit is filed.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.0061/b">
<num value="b">(b)</num>
<content>A writ of possession may not be issued before the sixth day after the date on which the judgment for possession is rendered unless a possession bond has been filed and approved under the Texas Rules of Civil Procedure.</content>
<continuation>(b-1) The issuance of a writ of possession is a ministerial act not subject to review or delay. A sheriff or constable, including a deputy sheriff or deputy constable, shall serve the writ of possession not later than the fifth business day after the date the writ is issued. If the writ of possession is not served on or before the fifth business day after the date the writ is issued, the landlord may, but is not obligated to, have the writ served by any other law enforcement officer, including an off-duty officer with appropriate identification, who has received training as described by Section 24.0051(f).</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.0061/c">
<num value="c">(c)</num>
<content>The court shall notify a tenant in writing of a default judgment for possession or a judgment for possession under Section 24.005106 by sending a copy of the judgment to the premises by first class mail not later than 48 hours after the entry of the judgment.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.0061/d">
<num value="d">(d)</num>
<chapeau>The writ of possession shall order the officer executing the writ to:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0061/1">
<num value="1">(1)</num>
<content>post a written warning of at least 8-1/2 by 11 inches on the exterior of the front door of the rental unit notifying the tenant that the writ has been issued and that the writ will be executed on or after a specific date and time stated in the warning not sooner than 24 hours after the warning is posted; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0061/2">
<num value="2">(2)</num>
<chapeau>when the writ is executed:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c24/s24.0061/A">
<num value="A">(A)</num>
<content>deliver possession of the premises to the landlord;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c24/s24.0061/B">
<num value="B">(B)</num>
<content>instruct the tenant and all persons claiming under the tenant to leave the premises immediately, and, if the persons fail to comply, physically remove them;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c24/s24.0061/C">
<num value="C">(C)</num>
<content>instruct the tenant to remove or to allow the landlord, the landlord's representatives, or other persons acting under the officer's supervision to remove all personal property from the rental unit other than personal property claimed to be owned by the landlord; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c24/s24.0061/D">
<num value="D">(D)</num>
<content>place, or have an authorized person place, the removed personal property outside the rental unit at a nearby location, but not blocking a public sidewalk, passageway, or street and not while it is raining, sleeting, or snowing, except as provided by Subsection (d-1).</content>
<continuation>(d-1) A municipality may provide, without charge to the landlord or to the owner of personal property removed from a rental unit under Subsection (d), a portable, closed container into which the removed personal property shall be placed by the officer executing the writ or by the authorized person. The municipality may remove the container from the location near the rental unit and dispose of the contents by any lawful means if the owner of the removed personal property does not recover the property from the container within a reasonable time after the time the property is placed in the container.</continuation>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.0061/e">
<num value="e">(e)</num>
<content>The writ of possession shall authorize the officer, at the officer's discretion, to engage the services of a bonded or insured warehouseman to remove and store, subject to applicable law, part or all of the property at no cost to the landlord or the officer executing the writ.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.0061/f">
<num value="f">(f)</num>
<content>The officer may not require the landlord to store the property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.0061/g">
<num value="g">(g)</num>
<content>The writ of possession shall contain notice to the officer that under Section 7.003, Civil Practice and Remedies Code, the officer is not liable for damages resulting from the execution of the writ if the officer executes the writ in good faith and with reasonable diligence.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.0061/h">
<num value="h">(h)</num>
<content>An officer may use reasonable force in executing a writ under this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.0061/i">
<num value="i">(i)</num>
<content>A landlord is not liable for damages to the tenant resulting from the enforcement of a judgment in favor of the landlord under this chapter, including the execution of a writ of possession by an officer under this section.</content>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 319, Sec. 1, eff. Sept. 1, 1985. Amended by Acts 1987, 70th Leg., ch. 314, Sec. 1, eff. Sept. 1, 1987; Acts 1987, 70th Leg., ch. 745, Sec. 6, eff. June 20, 1987; Acts 1987, 70th Leg., ch. 1089, Sec. 1, eff. Aug. 31, 1987; Acts 1989, 71st Leg., ch. 2, Sec. 13.01, eff. Aug. 28, 1989; Acts 1989, 71st Leg., ch. 688, Sec. 5, eff. Sept. 1, 1989; Acts 1997, 75th Leg., ch. 1205, Sec. 4, eff. Sept. 1, 1997.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 355 (H.B. 1853), Sec. 1, eff. September 1, 2015.
Acts 2021, 87th Leg., R.S., Ch. 641 (H.B. 900), Sec. 1, eff. September 1, 2021.
Acts 2025, 89th Leg., R.S., Ch. 960 (S.B. 38), Sec. 13, eff. January 1, 2026.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c24/s24.0062">
<num value="24.0062">Sec. 24.0062.</num>
<heading>WAREHOUSEMAN'S LIEN</heading>
<subsection identifier="/us/tx/pr/t4/c24/s24.0062/a">
<num value="a">(a)</num>
<content>If personal property is removed from a tenant's premises as the result of an action brought under this chapter and stored in a bonded or insured public warehouse, the warehouseman has a lien on the property to the extent of any reasonable storage and moving charges incurred by the warehouseman. The lien does not attach to any property until the property has been stored by the warehouseman.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.0062/b">
<num value="b">(b)</num>
<chapeau>If property is to be removed and stored in a public warehouse under a writ of possession, the officer executing the writ shall, at the time of execution, deliver in person to the tenant, or by first class mail to the tenant's last known address not later than 72 hours after execution of the writ if the tenant is not present, a written notice stating the complete address and telephone number of the location at which the property may be redeemed and stating that:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0062/1">
<num value="1">(1)</num>
<content>the tenant's property is to be removed and stored by a public warehouseman under Section 24.0062 of the Property Code;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0062/2">
<num value="2">(2)</num>
<content>the tenant may redeem any of the property, without payment of moving or storage charges, on demand during the time the warehouseman is removing the property from the tenant's premises and before the warehouseman permanently leaves the tenant's premises;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0062/3">
<num value="3">(3)</num>
<content>within 30 days from the date of storage, the tenant may redeem any of the property described by Section 24.0062(e), Property Code, on demand by the tenant and on payment of the moving and storage charges reasonably attributable to the items being redeemed;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0062/4">
<num value="4">(4)</num>
<content>after the 30-day period and before sale, the tenant may redeem the property on demand by the tenant and on payment of all moving and storage charges; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0062/5">
<num value="5">(5)</num>
<content>subject to the previously stated conditions, the warehouseman has a lien on the property to secure payment of moving and storage charges and may sell all the property to satisfy reasonable moving and storage charges after 30 days, subject to the requirements of Section 24.0062(j) of the Property Code.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.0062/c">
<num value="c">(c)</num>
<content>The statement required by Subsection (b)(2) must be underlined or in boldfaced print.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.0062/d">
<num value="d">(d)</num>
<content>On demand by the tenant during the time the warehouseman is removing the property from the tenant's premises and before the warehouseman permanently leaves the tenant's premises, the warehouseman shall return to the tenant all property requested by the tenant, without charge.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.0062/e">
<num value="e">(e)</num>
<chapeau>On demand by the tenant within 30 days after the date the property is stored by the warehouseman and on payment by the tenant of the moving and storage charges reasonably attributable to the items being redeemed, the warehouseman shall return to the tenant at the warehouse the following property:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0062/1">
<num value="1">(1)</num>
<content>wearing apparel;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0062/2">
<num value="2">(2)</num>
<content>tools, apparatus, and books of a trade or profession;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0062/3">
<num value="3">(3)</num>
<content>school books;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0062/4">
<num value="4">(4)</num>
<content>a family library;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0062/5">
<num value="5">(5)</num>
<content>family portraits and pictures;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0062/6">
<num value="6">(6)</num>
<content>one couch, two living room chairs, and a dining table and chairs;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0062/7">
<num value="7">(7)</num>
<content>beds and bedding;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0062/8">
<num value="8">(8)</num>
<content>kitchen furniture and utensils;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0062/9">
<num value="9">(9)</num>
<content>food and foodstuffs;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0062/10">
<num value="10">(10)</num>
<content>medicine and medical supplies;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0062/11">
<num value="11">(11)</num>
<content>one automobile and one truck;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0062/12">
<num value="12">(12)</num>
<content>agricultural implements;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0062/13">
<num value="13">(13)</num>
<content>children's toys not commonly used by adults;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0062/14">
<num value="14">(14)</num>
<content>goods that the warehouseman or the warehouseman's agent knows are owned by a person other than the tenant or an occupant of the residence;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0062/15">
<num value="15">(15)</num>
<content>goods that the warehouseman or the warehouseman's agent knows are subject to a recorded chattel mortgage or financing agreement; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24/s24.0062/16">
<num value="16">(16)</num>
<content>cash.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.0062/f">
<num value="f">(f)</num>
<content>During the first 30 days after the date of storage, the warehouseman may not require payment of removal or storage charges for other items as a condition for redeeming the items described by Subsection (e).</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.0062/g">
<num value="g">(g)</num>
<content>On demand by the tenant to the warehouseman after the 30-day period and before sale and on payment by the tenant of all unpaid moving and storage charges on all the property, the warehouseman shall return all the previously unredeemed property to the tenant at the warehouse.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.0062/h">
<num value="h">(h)</num>
<content>A warehouseman may not recover any moving or storage charges if the court determines under Subsection (i) that the warehouseman's moving or storage charges are not reasonable.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.0062/i">
<num value="i">(i)</num>
<content>Before the sale of the property by the warehouseman, the tenant may file suit in the justice court in which the eviction judgment was rendered, or in another court of competent jurisdiction in the county in which the rental premises are located, to recover the property described by Subsection (e) on the ground that the landlord failed to return the property after timely demand and payment by the tenant, as provided by this section. Before sale, the tenant may also file suit to recover all property moved or stored by the warehouseman on the ground that the amount of the warehouseman's moving or storage charges is not reasonable. All proceedings under this subsection have precedence over other matters on the court's docket. The justice court that issued the writ of possession has jurisdiction under this section regardless of the amount in controversy.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.0062/j">
<num value="j">(j)</num>
<content>Any sale of property that is subject to a lien under this section shall be conducted in accordance with Section 7.210 and Subchapters D and F, Chapter 9, Business & Commerce Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.0062/k">
<num value="k">(k)</num>
<content>In a proceeding under this section, the prevailing party is entitled to recover actual damages, reasonable attorney's fees, court costs, and, if appropriate, any property withheld in violation of this section or the value of that property if it has been sold.</content>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 747, Sec. 1, eff. Sept. 1, 1985. Renumbered from Sec. 24.009 and amended by Acts 1987, 70th Leg., ch. 314, Sec. 2, eff. Sept. 1, 1987; Acts 1987, 70th Leg., ch. 745, Sec. 7, eff. June 20, 1987; Acts 1993, 73rd Leg., ch. 48, Sec. 1, eff. Sept. 1, 1993; Acts 1999, 76th Leg., ch. 414, Sec. 2.35, eff. July 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c24/s24.007">
<num value="24.007">Sec. 24.007.</num>
<heading>APPEAL</heading>
<content>A final judgment of a county court in an eviction suit may not be appealed on the issue of possession unless the premises in question are being used for residential purposes only. A judgment of a county court may not under any circumstances be stayed pending appeal unless, within 10 days of the signing of the judgment, the appellant files a supersedeas bond in an amount set by the county court. In setting the supersedeas bond the county court shall provide protection for the appellee to the same extent as in any other appeal, taking into consideration the value of rents likely to accrue during appeal, damages which may occur as a result of the stay during appeal, and other damages or amounts as the court may deem appropriate.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3516, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1985, 69th Leg., ch. 891, Sec. 1, eff. Sept. 1, 1985; Acts 1997, 75th Leg., ch. 1205, Sec. 5, eff. Sept. 1, 1997.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 3 (H.B. 79), Sec. 2.02(a), eff. January 1, 2012.
Acts 2015, 84th Leg., R.S., Ch. 1113 (H.B. 3364), Sec. 1, eff. January 1, 2016.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c24/s24.008">
<num value="24.008">Sec. 24.008.</num>
<heading>EFFECT ON OTHER ACTIONS</heading>
<content>An eviction suit does not bar a suit for trespass, damages, waste, rent, or mesne profits.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3516, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1985, 69th Leg., ch. 891, Sec. 1, eff. Aug. 26, 1985; Acts 1997, 75th Leg., ch. 1205, Sec. 6, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c24/s24.011">
<num value="24.011">Sec. 24.011.</num>
<heading>NONLAWYER REPRESENTATION</heading>
<subsection identifier="/us/tx/pr/t4/c24/s24.011/a">
<num value="a">(a)</num>
<content>In an eviction suit in justice court, the parties may represent themselves or be represented by their authorized agents, who need not be attorneys.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24/s24.011/b">
<num value="b">(b)</num>
<content>In an appeal of an eviction suit for nonpayment of rent in a county or district court, an owner of a multifamily residential property may be represented by the owner's authorized agent, who need not be an attorney.</content>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 891, Sec. 1, eff. Aug. 26, 1985. Renumbered from Sec. 24.009 by Acts 1987, 70th Leg., ch. 167, Sec. 5.01(a)(49), eff. Sept. 1, 1987. Amended by Acts 1997, 75th Leg., ch. 1205, Sec. 7, eff. Sept. 1, 1997.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 904 (H.B. 3879), Sec. 1, eff. September 1, 2017.
Acts 2025, 89th Leg., R.S., Ch. 960 (S.B. 38), Sec. 14, eff. January 1, 2026.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t4/c24A">
<num value="24A">CHAPTER 24A.</num>
<heading>ACCESS TO RESIDENCE OR FORMER RESIDENCE TO RETRIEVE PERSONAL PROPERTY</heading>
<section identifier="/us/tx/pr/t4/c24A/s24A.001">
<num value="24A.001">Sec. 24A.001.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c24A/s24A.001/1">
<num value="1">(1)</num>
<content>"Electronic record" means a record created, generated, sent, communicated, received, or stored by electronic means.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24A/s24A.001/2">
<num value="2">(2)</num>
<content>"Family violence" has the meaning assigned by Section 71.004, Family Code.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24A/s24A.001/3">
<num value="3">(3)</num>
<content>"Peace officer" means a person listed under Article 2.12(1) or (2), Code of Criminal Procedure.</content>
</paragraph>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 1076 (H.B. 2486), Sec. 1, eff. September 1, 2015.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 588 (S.B. 920), Sec. 1, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c24A/s24A.002">
<num value="24A.002">Sec. 24A.002.</num>
<heading>WRIT AUTHORIZING ENTRY AND PROPERTY RETRIEVAL; PEACE OFFICER TO ACCOMPANY</heading>
<subsection identifier="/us/tx/pr/t4/c24A/s24A.002/a">
<num value="a">(a)</num>
<content>If a person is unable to enter the person's residence or former residence to retrieve personal property belonging to the person or the person's dependent because the current occupant is denying the person entry, the person may apply for a writ authorizing the person to enter the residence accompanied by a peace officer to retrieve specific items of personal property.</content>
<continuation>(a-1) A person applying for a writ under this section must apply:</continuation>
<paragraph identifier="/us/tx/pr/t4/c24A/s24A.002/1">
<num value="1">(1)</num>
<content>if the person and the current occupant are parties to a pending suit under Title 1, Family Code, to the court in which the suit is pending;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24A/s24A.002/2">
<num value="2">(2)</num>
<content>if the person's right to possession of the items described in the application is subject to a decree of divorce or annulment to which the person and the current occupant are parties, to the court having jurisdiction of the divorce or annulment action; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24A/s24A.002/3">
<num value="3">(3)</num>
<content>if Subdivision (1) or (2) does not apply, to a justice court.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24A/s24A.002/b">
<num value="b">(b)</num>
<chapeau>An application under Subsection (a) must:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c24A/s24A.002/1">
<num value="1">(1)</num>
<chapeau>certify that the applicant is unable to enter the residence because the current occupant of the residence:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c24A/s24A.002/A">
<num value="A">(A)</num>
<content>has denied the applicant access to the residence; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c24A/s24A.002/B">
<num value="B">(B)</num>
<content>poses a clear and present danger of family violence to the applicant or the applicant's dependent;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24A/s24A.002/2">
<num value="2">(2)</num>
<chapeau>certify that, to the best of the applicant's knowledge, the applicant is not:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c24A/s24A.002/A">
<num value="A">(A)</num>
<content>the subject of an active protective order under Title 4, Family Code, a magistrate's order for emergency protection under Article 17.292, Code of Criminal Procedure, or another court order prohibiting entry to the residence; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c24A/s24A.002/B">
<num value="B">(B)</num>
<content>otherwise prohibited by law from entering the residence;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24A/s24A.002/3">
<num value="3">(3)</num>
<chapeau>certify whether, to the best of the applicant's knowledge:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c24A/s24A.002/A">
<num value="A">(A)</num>
<content>the applicant and the current occupant are parties to a pending suit under Title 1, Family Code; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c24A/s24A.002/B">
<num value="B">(B)</num>
<content>the applicant's right to possession of the items described in the application is subject to a decree of divorce or annulment to which the applicant and the current occupant are parties;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24A/s24A.002/4">
<num value="4">(4)</num>
<chapeau>allege that the applicant or the applicant's dependent requires personal items located in the residence that are only of the following types:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c24A/s24A.002/A">
<num value="A">(A)</num>
<content>medical records;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c24A/s24A.002/B">
<num value="B">(B)</num>
<content>medicine and medical supplies;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c24A/s24A.002/C">
<num value="C">(C)</num>
<content>clothing;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c24A/s24A.002/D">
<num value="D">(D)</num>
<content>child-care items;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c24A/s24A.002/E">
<num value="E">(E)</num>
<content>legal or financial documents;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c24A/s24A.002/F">
<num value="F">(F)</num>
<content>checks or bank or credit cards in the name of the applicant;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c24A/s24A.002/G">
<num value="G">(G)</num>
<content>employment records;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c24A/s24A.002/H">
<num value="H">(H)</num>
<content>personal identification documents;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c24A/s24A.002/I">
<num value="I">(I)</num>
<content>copies of electronic records containing legal or financial documents;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c24A/s24A.002/J">
<num value="J">(J)</num>
<content>assistance animals or service animals, as defined by Section 121.002, Human Resources Code, used by the applicant or the applicant's dependent;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c24A/s24A.002/K">
<num value="K">(K)</num>
<content>wireless communication devices, as defined by Section 545.425(a), Transportation Code, of the applicant or the applicant's dependent; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c24A/s24A.002/L">
<num value="L">(L)</num>
<content>tools, equipment, books, and apparatus used by the applicant in the applicant's trade or profession;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24A/s24A.002/5">
<num value="5">(5)</num>
<content>describe with specificity the items that the applicant intends to retrieve;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24A/s24A.002/6">
<num value="6">(6)</num>
<content>allege that the applicant or the applicant's dependent will suffer personal harm if the items listed in the application are not retrieved promptly; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24A/s24A.002/7">
<num value="7">(7)</num>
<content>include a lease or other documentary evidence that shows the applicant is currently or was formerly authorized to occupy the residence.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24A/s24A.002/c">
<num value="c">(c)</num>
<chapeau>Before the court may issue a writ under this section, the applicant must execute a bond that:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c24A/s24A.002/1">
<num value="1">(1)</num>
<content>has two or more good and sufficient non-corporate sureties or one corporate surety authorized to issue bonds in this state;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24A/s24A.002/2">
<num value="2">(2)</num>
<content>is payable to the occupant of the residence;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24A/s24A.002/3">
<num value="3">(3)</num>
<content>is in an amount required by the court; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24A/s24A.002/4">
<num value="4">(4)</num>
<content>is conditioned on the applicant paying all damages and costs adjudged against the applicant for wrongful property retrieval.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24A/s24A.002/d">
<num value="d">(d)</num>
<content>The applicant shall deliver the bond to the court issuing the writ for the court's approval. The bond shall be filed with the court.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24A/s24A.002/e">
<num value="e">(e)</num>
<chapeau>On sufficient evidence of urgency and potential harm to the health and safety of any person and after sufficient notice to the current occupant and an opportunity to be heard, the court may grant the application under this section and issue a writ authorizing the applicant to enter the residence accompanied by a peace officer and retrieve the property listed in the application if the court finds that:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c24A/s24A.002/1">
<num value="1">(1)</num>
<content>the applicant is unable to enter the residence because the current occupant of the residence has denied the applicant access to the residence to retrieve the applicant's personal property or the personal property of the applicant's dependent;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24A/s24A.002/2">
<num value="2">(2)</num>
<chapeau>the applicant is not:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c24A/s24A.002/A">
<num value="A">(A)</num>
<content>the subject of an active protective order under Title 4, Family Code, a magistrate's order for emergency protection under Article 17.292, Code of Criminal Procedure, or another court order prohibiting entry to the residence; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c24A/s24A.002/B">
<num value="B">(B)</num>
<content>otherwise prohibited by law from entering the residence;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24A/s24A.002/3">
<num value="3">(3)</num>
<content>there is a risk of personal harm to the applicant or the applicant's dependent if the items listed in the application are not retrieved promptly;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24A/s24A.002/4">
<num value="4">(4)</num>
<content>the applicant is currently or was formerly authorized to occupy the residence according to a lease or other documentary evidence; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24A/s24A.002/5">
<num value="5">(5)</num>
<content>the current occupant received notice of the application and was provided an opportunity to appear before the court to contest the application.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 1076 (H.B. 2486), Sec. 1, eff. September 1, 2015.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 588 (S.B. 920), Sec. 1, eff. September 1, 2017.
Acts 2021, 87th Leg., R.S., Ch. 451 (H.B. 1012), Sec. 1, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c24A/s24A.0021">
<num value="24A.0021">Sec. 24A.0021.</num>
<heading>TEMPORARY EX PARTE WRIT AUTHORIZING ENTRY AND PROPERTY RETRIEVAL</heading>
<subsection identifier="/us/tx/pr/t4/c24A/s24A.0021/a">
<num value="a">(a)</num>
<chapeau>A court may issue a writ under Section 24A.002 without providing notice and hearing under Section 24A.002(e)(5) if the court finds at a hearing on the application that:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c24A/s24A.0021/1">
<num value="1">(1)</num>
<content>the conditions of Sections 24A.002(e)(1)-(4) are established;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24A/s24A.0021/2">
<num value="2">(2)</num>
<content>the current occupant poses a clear and present danger of family violence to the applicant or the applicant's dependent; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24A/s24A.0021/3">
<num value="3">(3)</num>
<content>the personal harm to be suffered by the applicant or the applicant's dependent will be immediate and irreparable if the application is not granted.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24A/s24A.0021/b">
<num value="b">(b)</num>
<content>A court issuing a writ under this section may waive the bond requirements under Sections 24A.002(c) and (d).</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24A/s24A.0021/c">
<num value="c">(c)</num>
<content>The court may recess a hearing under Subsection (a) to notify the current occupant by telephone that the current occupant may attend the hearing or bring to the court the personal property listed in the application. The court shall reconvene the hearing before 5 p.m. that day regardless of whether the current occupant attends the hearing or brings the personal property to the court.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24A/s24A.0021/d">
<num value="d">(d)</num>
<content>A temporary ex parte writ issued under Subsection (a) must state the period, not to exceed five days, during which the writ is valid.</content>
</subsection>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 588 (S.B. 920), Sec. 1, eff. September 1, 2017.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 451 (H.B. 1012), Sec. 2, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c24A/s24A.003">
<num value="24A.003">Sec. 24A.003.</num>
<heading>AUTHORIZED ENTRY PROCEDURES; DUTIES OF PEACE OFFICER</heading>
<subsection identifier="/us/tx/pr/t4/c24A/s24A.003/a">
<num value="a">(a)</num>
<content>If the court grants an application under Section 24A.002 or Section 24A.0021, a peace officer shall accompany and assist the applicant in making the authorized entry and retrieving the items of personal property listed in the application.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24A/s24A.003/b">
<num value="b">(b)</num>
<content>If the current occupant of the residence is present at the time of the entry, the peace officer shall provide the occupant with a copy of the writ authorizing the entry and property retrieval.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24A/s24A.003/c">
<num value="c">(c)</num>
<content>Before removing the property listed in the application from the residence, the applicant must submit all property retrieved to the peace officer assisting the applicant under this section to be inventoried. The peace officer shall create an inventory listing the items taken from the residence, provide a copy of the inventory to the applicant, provide a copy of the inventory to the current occupant or, if the current occupant is not present, leave the copy in a conspicuous place in the residence, and return the property to be removed from the residence to the applicant. The officer shall file the original inventory with the court that issued the writ authorizing the entry and property retrieval.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24A/s24A.003/d">
<num value="d">(d)</num>
<content>A peace officer may use reasonable force in providing assistance under this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24A/s24A.003/e">
<num value="e">(e)</num>
<chapeau>A peace officer who provides assistance under this section in good faith and with reasonable diligence is not:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c24A/s24A.003/1">
<num value="1">(1)</num>
<content>civilly liable for an act or omission of the officer that arises in connection with providing the assistance; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24A/s24A.003/2">
<num value="2">(2)</num>
<content>civilly or criminally liable for the wrongful appropriation of any personal property by the person the officer is assisting.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 1076 (H.B. 2486), Sec. 1, eff. September 1, 2015.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 588 (S.B. 920), Sec. 2, eff. September 1, 2017.
Acts 2021, 87th Leg., R.S., Ch. 451 (H.B. 1012), Sec. 3, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c24A/s24A.004">
<num value="24A.004">Sec. 24A.004.</num>
<heading>IMMUNITY FROM LIABILITY</heading>
<content>A landlord or a landlord's agent who permits or facilitates entry into a residence in accordance with a writ issued under this chapter is not civilly or criminally liable for an act or omission that arises in connection with permitting or facilitating the entry.</content>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 1076 (H.B. 2486), Sec. 1, eff. September 1, 2015.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 588 (S.B. 920), Sec. 3, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c24A/s24A.005">
<num value="24A.005">Sec. 24A.005.</num>
<heading>OFFENSE</heading>
<subsection identifier="/us/tx/pr/t4/c24A/s24A.005/a">
<num value="a">(a)</num>
<content>A person commits an offense if the person interferes with a person or peace officer entering a residence and retrieving personal property under the authority of a writ issued under Section 24A.002 or 24A.0021.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24A/s24A.005/b">
<num value="b">(b)</num>
<content>An offense under this section is a Class B misdemeanor.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24A/s24A.005/c">
<num value="c">(c)</num>
<content>It is a defense to prosecution under this section that the actor did not receive a copy of the writ or other notice that the entry or property retrieval was authorized.</content>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 1076 (H.B. 2486), Sec. 1, eff. September 1, 2015.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 588 (S.B. 920), Sec. 4, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c24A/s24A.006">
<num value="24A.006">Sec. 24A.006.</num>
<heading>HEARING; REVIEW</heading>
<subsection identifier="/us/tx/pr/t4/c24A/s24A.006/a">
<num value="a">(a)</num>
<content>The occupant of a residence that is the subject of a writ issued under Section 24A.002 or 24A.0021, not later than the 10th day after the date of the authorized entry, may file a complaint in the court that issued the writ alleging that the applicant has appropriated property belonging to the occupant or the occupant's dependent.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24A/s24A.006/b">
<num value="b">(b)</num>
<content>The court shall promptly hold a hearing on a complaint submitted under this section and rule on the disposition of the disputed property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24A/s24A.006/c">
<num value="c">(c)</num>
<content>This section does not limit the occupant's remedies under any other law for recovery of the property of the occupant or the occupant's dependent.</content>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 1076 (H.B. 2486), Sec. 1, eff. September 1, 2015.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 588 (S.B. 920), Sec. 5, eff. September 1, 2017.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t4/c24B">
<num value="24B">CHAPTER 24B.</num>
<heading>REMOVAL OF CERTAIN UNAUTHORIZED OCCUPANTS OF REAL PROPERTY</heading>
<section identifier="/us/tx/pr/t4/c24B/s24B.001">
<num value="24B.001">Sec. 24B.001.</num>
<heading>RIGHT TO REQUEST REMOVAL OF UNAUTHORIZED OCCUPANT OF DWELLING BY SHERIFF OR CONSTABLE</heading>
<chapeau>Notwithstanding any other law, an owner of residential real property or the owner's agent may request that the sheriff or constable of the county in which the property is located immediately remove a person who unlawfully entered and is occupying a dwelling on the property without the owner's consent if:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c24B/s24B.001/1">
<num value="1">(1)</num>
<chapeau>the property:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c24B/s24B.001/A">
<num value="A">(A)</num>
<content>was not open to the public when the person entered the property; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c24B/s24B.001/B">
<num value="B">(B)</num>
<content>is not the subject of pending litigation between the owner and the person;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24B/s24B.001/2">
<num value="2">(2)</num>
<content>the owner or the owner's agent has directed the person to leave the property and the person has not done so; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24B/s24B.001/3">
<num value="3">(3)</num>
<chapeau>the person is not:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c24B/s24B.001/A">
<num value="A">(A)</num>
<content>a current or former tenant of the owner under an oral or written lease; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c24B/s24B.001/B">
<num value="B">(B)</num>
<content>an immediate family member of the owner.</content>
</subparagraph>
</paragraph>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 817 (S.B. 1333), Sec. 3, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c24B/s24B.002">
<num value="24B.002">Sec. 24B.002.</num>
<heading>COMPLAINT TO REQUEST REMOVAL OF UNAUTHORIZED OCCUPANT</heading>
<subsection identifier="/us/tx/pr/t4/c24B/s24B.002/a">
<num value="a">(a)</num>
<content>A property owner or the owner's agent may request the removal of a person under Section 24B.001 by submitting to the sheriff or constable of the county in which the property is located a complaint in substantially the following form that complies with Subsection (b):</content>
</subsection>
<sourceCredit>COMPLAINT TO REMOVE PERSON OCCUPYING DWELLING
WITHOUT OWNER'S CONSENT
I, _____ (name of complainant), declare under the penalty of perjury that:
(Complete each item as applicable and initial each item.)
___ 1. I am the owner of residential real property located at ______(property address) or the agent of the owner.
___ 2. A person unlawfully entered and occupies a dwelling on the property without the owner's consent.
___ 3. The property was not open to the public when the person entered the property.
___ 4. The property is not the subject of pending litigation between the owner and the person.
___ 5. The owner or the owner's agent has directed the person to leave the property and the person has not done so.
___ 6. The person is not a current or former tenant of the owner under an oral or written lease and any lease produced by the person is fraudulent.
___ 7. The person is not an owner or co-owner of the property and any title to the property that lists the person as an owner or co-owner is fraudulent.
___ 8. The person is not an immediate family member of the owner.
___ 9. I understand that a person removed from the property as a result of this complaint may bring an action against me for any false statement made in the complaint or for wrongfully submitting the complaint.
___ 10. I understand that I may be held liable for actual damages, exemplary damages, court costs, and reasonable attorney's fees in an action described by Item 9.
___ 11. I am requesting that the sheriff or constable immediately remove each person occupying the dwelling without the owner's consent.
___ 12. A copy of my valid government-issued identification is attached and, if I am the owner's agent, a document evidencing my authority to act on the property owner's behalf is attached.
I HAVE READ EACH STATEMENT IN THIS COMPLAINT AND CONFIRM EACH STATEMENT IS TRUE AND CORRECT. I UNDERSTAND THAT A STATEMENT MADE IN THIS COMPLAINT IS MADE UNDER PENALTY OF PERJURY, PUNISHABLE UNDER SECTION 37.02, PENAL CODE.
____________(signature of complainant)
(b) A complaint submitted under this section must be made under oath or made as an unsworn declaration under Section 132.001, Civil Practice and Remedies Code.
Added by Acts 2025, 89th Leg., R.S., Ch. 817 (S.B. 1333), Sec. 3, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c24B/s24B.003">
<num value="24B.003">Sec. 24B.003.</num>
<heading>VERIFICATION OF COMPLAINT; SERVICE OF NOTICE TO IMMEDIATELY VACATE</heading>
<subsection identifier="/us/tx/pr/t4/c24B/s24B.003/a">
<num value="a">(a)</num>
<chapeau>A sheriff or constable who receives a complaint under Section 24B.002 shall verify that the complainant is:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c24B/s24B.003/1">
<num value="1">(1)</num>
<content>the record owner of the property that is the subject of the complaint or the owner's agent; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24B/s24B.003/2">
<num value="2">(2)</num>
<content>otherwise entitled to the relief sought in the complaint.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24B/s24B.003/b">
<num value="b">(b)</num>
<chapeau>On verifying the complaint under Subsection (a), the sheriff or constable shall without delay:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c24B/s24B.003/1">
<num value="1">(1)</num>
<content>serve notice to immediately vacate on the person occupying the dwelling without the owner's consent; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24B/s24B.003/2">
<num value="2">(2)</num>
<content>put the owner in possession of the dwelling.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24B/s24B.003/c">
<num value="c">(c)</num>
<chapeau>Service of notice to immediately vacate may be accomplished by:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c24B/s24B.003/1">
<num value="1">(1)</num>
<content>hand delivery to an occupant of the dwelling; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24B/s24B.003/2">
<num value="2">(2)</num>
<content>affixing the notice to the front door or entrance of the dwelling.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24B/s24B.003/d">
<num value="d">(d)</num>
<content>A sheriff or constable serving notice to immediately vacate under this section shall attempt to verify the identity of each person occupying the dwelling and note each identity on the return of service.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24B/s24B.003/e">
<num value="e">(e)</num>
<content>A sheriff or constable serving notice to immediately vacate under this section may arrest any person found in the dwelling for an outstanding warrant or for trespass or any other offense for which probable cause exists.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24B/s24B.003/f">
<num value="f">(f)</num>
<content>A sheriff or constable who serves a notice to immediately vacate under this section is entitled to receive from the complainant a fee in an amount equal to the amount the sheriff or constable would receive for executing a writ of possession.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24B/s24B.003/g">
<num value="g">(g)</num>
<chapeau>After the service of notice to immediately vacate by the sheriff or constable under Subsection (b), the property owner or owner's agent may request that the sheriff or constable remain on the property to keep the peace while the owner or owner's agent:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c24B/s24B.003/1">
<num value="1">(1)</num>
<content>changes any locks; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24B/s24B.003/2">
<num value="2">(2)</num>
<content>removes any personal property of an occupant from the dwelling and places the personal property at or near the property line of the owner's property.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24B/s24B.003/h">
<num value="h">(h)</num>
<content>If a request described by Subsection (g) is made, the sheriff or constable may charge the person making the request a reasonable hourly rate set by the sheriff or constable for remaining on the property.</content>
</subsection>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 817 (S.B. 1333), Sec. 3, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c24B/s24B.004">
<num value="24B.004">Sec. 24B.004.</num>
<heading>LIABILITY</heading>
<subsection identifier="/us/tx/pr/t4/c24B/s24B.004/a">
<num value="a">(a)</num>
<content>A sheriff or constable is not liable to an unauthorized occupant or any other person for loss or destruction of or damage to property resulting from the removal of a person or property under this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24B/s24B.004/b">
<num value="b">(b)</num>
<content>Subject to Section 24B.005, a property owner or the owner's agent is not liable to any person for loss or destruction of or damage to personal property resulting from the removal of the personal property from the owner's property under this chapter.</content>
</subsection>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 817 (S.B. 1333), Sec. 3, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c24B/s24B.005">
<num value="24B.005">Sec. 24B.005.</num>
<heading>ACTION FOR WRONGFUL REMOVAL</heading>
<subsection identifier="/us/tx/pr/t4/c24B/s24B.005/a">
<num value="a">(a)</num>
<chapeau>A person who is wrongfully removed, or whose personal property is wrongfully removed, from a dwelling or other real property under this chapter may bring an action under this section to:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c24B/s24B.005/1">
<num value="1">(1)</num>
<content>recover possession of the real property; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24B/s24B.005/2">
<num value="2">(2)</num>
<chapeau>recover from the person who requested the wrongful removal:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c24B/s24B.005/A">
<num value="A">(A)</num>
<content>actual damages;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c24B/s24B.005/B">
<num value="B">(B)</num>
<content>exemplary damages equal to three times the fair market rent of the dwelling;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c24B/s24B.005/C">
<num value="C">(C)</num>
<content>court costs; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c24B/s24B.005/D">
<num value="D">(D)</num>
<content>reasonable attorney's fees.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c24B/s24B.005/b">
<num value="b">(b)</num>
<content>The court shall set an action brought under this section for hearing at the earliest practicable date to expedite the action.</content>
</subsection>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 817 (S.B. 1333), Sec. 3, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c24B/s24B.006">
<num value="24B.006">Sec. 24B.006.</num>
<heading>NONEXCLUSIVITY</heading>
<chapeau>This chapter does not limit:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c24B/s24B.006/1">
<num value="1">(1)</num>
<content>the rights of a property owner; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c24B/s24B.006/2">
<num value="2">(2)</num>
<content>the authority of a law enforcement officer to arrest an unauthorized occupant of a dwelling for trespassing, vandalism, theft, or another offense.</content>
</paragraph>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 817 (S.B. 1333), Sec. 3, eff. September 1, 2025.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t4/c25">
<num value="25">CHAPTER 25.</num>
<heading>TRIAL OF RIGHT OF PROPERTY</heading>
<section identifier="/us/tx/pr/t4/c25/s25.001">
<num value="25.001">Sec. 25.001.</num>
<heading>JURISDICTION</heading>
<content>A trial of the right of property is an action that applies only to personal property. A trial of the right of property must be tried in a court with jurisdiction of the amount in controversy.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3516, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c25/s25.002">
<num value="25.002">Sec. 25.002.</num>
<heading>DAMAGES</heading>
<chapeau>If a claimant in a trial of the right of property does not establish a right to the property, the court shall adjudge damages against the obligors in the claimant's bond equal to 10 percent of the lesser of:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c25/s25.002/1">
<num value="1">(1)</num>
<content>the property's value; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c25/s25.002/2">
<num value="2">(2)</num>
<content>the amount claimed under the writ levied against the property.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3517, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t4/c26">
<num value="26">CHAPTER 26.</num>
<heading>USE OF A DECEASED INDIVIDUAL'S NAME, VOICE, SIGNATURE, PHOTOGRAPH, OR LIKENESS</heading>
<section identifier="/us/tx/pr/t4/c26/s26.001">
<num value="26.001">Sec. 26.001.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c26/s26.001/1">
<num value="1">(1)</num>
<content>"Photograph" means a photograph or photographic reproduction, still or moving, videotape, or live television transmission of an individual in a manner that allows a person viewing the photograph with the naked eye to reasonably determine the identity of the individual.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c26/s26.001/2">
<num value="2">(2)</num>
<content>"Property right" means the property right created by this chapter.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c26/s26.001/3">
<num value="3">(3)</num>
<content>"Name" means the actual or assumed name used by an individual which, when used in conjunction with other information, is intended to identify a particular person.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c26/s26.001/4">
<num value="4">(4)</num>
<content>"Media enterprise" means a newspaper, magazine, radio station or network, television station or network, or cable television system.</content>
</paragraph>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 152, Sec. 1, eff. Sept. 1, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c26/s26.002">
<num value="26.002">Sec. 26.002.</num>
<heading>PROPERTY RIGHT ESTABLISHED</heading>
<content>An individual has a property right in the use of the individual's name, voice, signature, photograph, or likeness after the death of the individual.</content>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 152, Sec. 1, eff. Sept. 1, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c26/s26.003">
<num value="26.003">Sec. 26.003.</num>
<heading>APPLICABILITY</heading>
<chapeau>This chapter applies to an individual:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c26/s26.003/1">
<num value="1">(1)</num>
<content>alive on or after September 1, 1987, or who died before September 1, 1987, but on or after January 1, 1937; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c26/s26.003/2">
<num value="2">(2)</num>
<content>whose name, voice, signature, photograph, or likeness has commercial value at the time of his or her death or comes to have commercial value after that time.</content>
</paragraph>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 152, Sec. 1, eff. Sept. 1, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c26/s26.004">
<num value="26.004">Sec. 26.004.</num>
<heading>TRANSFERABILITY</heading>
<subsection identifier="/us/tx/pr/t4/c26/s26.004/a">
<num value="a">(a)</num>
<content>The property right is freely transferable, in whole or in part, by contract or by means of trust or testamentary documents.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c26/s26.004/b">
<num value="b">(b)</num>
<content>The property right may be transferred before or after the death of the individual.</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 152, Sec. 1, eff. Sept. 1, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c26/s26.005">
<num value="26.005">Sec. 26.005.</num>
<heading>OWNERSHIP AFTER DEATH OF INDIVIDUAL</heading>
<subsection identifier="/us/tx/pr/t4/c26/s26.005/a">
<num value="a">(a)</num>
<chapeau>If the ownership of the property right of an individual has not been transferred at or before the death of the individual, the property right vests as follows:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c26/s26.005/1">
<num value="1">(1)</num>
<content>if there is a surviving spouse but there are no surviving children or grandchildren, the entire interest vests in the surviving spouse;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c26/s26.005/2">
<num value="2">(2)</num>
<content>if there is a surviving spouse and surviving children or grandchildren, one-half the interest vests in the surviving spouse and one-half the interest vests in the surviving children or grandchildren;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c26/s26.005/3">
<num value="3">(3)</num>
<content>if there is no surviving spouse, the entire interest vests in the surviving children of the deceased individual and the surviving children of any deceased children of the deceased individual; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c26/s26.005/4">
<num value="4">(4)</num>
<content>if there is no surviving spouse, children, or grandchildren, the entire interest vests in the surviving parents of the deceased individual.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c26/s26.005/b">
<num value="b">(b)</num>
<content>The interests of the deceased individual's children and grandchildren are divided among them and exercisable on a per stirpes basis in the manner provided by Section 201.101, Estates Code, according to the number of the deceased individual's children represented. If there is more than one child of a deceased child of the deceased individual, the share of a child of a deceased child may only be exercised by a majority of the children of the deceased child.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c26/s26.005/c">
<num value="c">(c)</num>
<content>If the property right is split among more than one person, those persons who own more than a one-half interest in the aggregate may exercise the right on behalf of all persons who own the right.</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 152, Sec. 1, eff. Sept. 1, 1987.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 324 (S.B. 1488), Sec. 22.058, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c26/s26.006">
<num value="26.006">Sec. 26.006.</num>
<heading>REGISTRATION OF CLAIM</heading>
<subsection identifier="/us/tx/pr/t4/c26/s26.006/a">
<num value="a">(a)</num>
<content>A person who claims to own a property right may register that claim with the secretary of state.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c26/s26.006/b">
<num value="b">(b)</num>
<chapeau>The secretary of state shall provide a form for registration of a claim under this section. The form must be verified and must include:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c26/s26.006/1">
<num value="1">(1)</num>
<content>the name and date of death of the deceased individual;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c26/s26.006/2">
<num value="2">(2)</num>
<content>the name and address of the claimant;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c26/s26.006/3">
<num value="3">(3)</num>
<content>a statement of the basis of the claim; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c26/s26.006/4">
<num value="4">(4)</num>
<content>a statement of the right claimed.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c26/s26.006/c">
<num value="c">(c)</num>
<content>The secretary of state may microfilm or reproduce by another technique a document filed under this section and destroy the original document.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c26/s26.006/d">
<num value="d">(d)</num>
<content>A document or a reproduction of a document filed under this section is admissible in evidence.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c26/s26.006/e">
<num value="e">(e)</num>
<content>The secretary of state may destroy all documents filed under this section after the 50th anniversary of the date of death of the individual whose property right they concern.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c26/s26.006/f">
<num value="f">(f)</num>
<content>The fee for filing a claim is $25.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c26/s26.006/g">
<num value="g">(g)</num>
<content>A document filed under this section is a public record.</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 152, Sec. 1, eff. Sept. 1, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c26/s26.007">
<num value="26.007">Sec. 26.007.</num>
<heading>EFFECT OF REGISTRATION</heading>
<subsection identifier="/us/tx/pr/t4/c26/s26.007/a">
<num value="a">(a)</num>
<content>Registration of a claim is prima facie evidence of a valid claim to a property right.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c26/s26.007/b">
<num value="b">(b)</num>
<content>A registered claim is superior to a conflicting, unregistered claim unless a court invalidates the registered claim.</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 152, Sec. 1, eff. Sept. 1, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c26/s26.008">
<num value="26.008">Sec. 26.008.</num>
<heading>EXERCISE OF OWNERSHIP FOR FIRST YEAR FOLLOWING DEATH OF INDIVIDUAL</heading>
<subsection identifier="/us/tx/pr/t4/c26/s26.008/a">
<num value="a">(a)</num>
<chapeau>Except as provided by Subsection (b), for the first year following the death of the individual a property right may be exercised, if authorized by law or an appointing court, by the following persons who may be appointed by a court for the benefit of the estate of the deceased individual:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c26/s26.008/1">
<num value="1">(1)</num>
<content>an independent executor;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c26/s26.008/2">
<num value="2">(2)</num>
<content>an executor;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c26/s26.008/3">
<num value="3">(3)</num>
<content>an independent administrator;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c26/s26.008/4">
<num value="4">(4)</num>
<content>a temporary or permanent administrator; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c26/s26.008/5">
<num value="5">(5)</num>
<content>a temporary or permanent guardian.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c26/s26.008/b">
<num value="b">(b)</num>
<content>For the first year following the death of the individual, an owner of a property right may exercise that right only if the owner registers a valid claim as provided by Section 26.006.</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 152, Sec. 1, eff. Sept. 1, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c26/s26.009">
<num value="26.009">Sec. 26.009.</num>
<heading>EXERCISE OF OWNERSHIP AFTER FIRST YEAR FOLLOWING DEATH OF INDIVIDUAL</heading>
<content>After the first year following the death of the individual, an owner of a property right may exercise that right whether or not the owner has registered a claim as provided by Section 26.006.</content>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 152, Sec. 1, eff. Sept. 1, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c26/s26.010">
<num value="26.010">Sec. 26.010.</num>
<heading>TERMINATION</heading>
<chapeau>A property right expires on the first anniversary of the date of death of the individual if:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c26/s26.010/1">
<num value="1">(1)</num>
<content>the individual has not transferred the right; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c26/s26.010/2">
<num value="2">(2)</num>
<content>a surviving person under Section 26.005 does not exist.</content>
</paragraph>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 152, Sec. 1, eff. Sept. 1, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c26/s26.011">
<num value="26.011">Sec. 26.011.</num>
<heading>UNAUTHORIZED USES</heading>
<chapeau>Except as provided by Section 26.012, a person may not use, without the written consent of a person who may exercise the property right, a deceased individual's name, voice, signature, photograph, or likeness in any manner, including:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c26/s26.011/1">
<num value="1">(1)</num>
<content>in connection with products, merchandise, or goods; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c26/s26.011/2">
<num value="2">(2)</num>
<content>for the purpose of advertising, selling, or soliciting the purchase of products, merchandise, goods, or services.</content>
</paragraph>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 152, Sec. 1, eff. Sept. 1, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c26/s26.012">
<num value="26.012">Sec. 26.012.</num>
<heading>PERMITTED USES</heading>
<subsection identifier="/us/tx/pr/t4/c26/s26.012/a">
<num value="a">(a)</num>
<chapeau>A person may use a deceased individual's name, voice, signature, photograph, or likeness in:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c26/s26.012/1">
<num value="1">(1)</num>
<content>a play, book, film, radio program, or television program;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c26/s26.012/2">
<num value="2">(2)</num>
<content>a magazine or newspaper article;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c26/s26.012/3">
<num value="3">(3)</num>
<content>material that is primarily of political or newsworthy value;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c26/s26.012/4">
<num value="4">(4)</num>
<content>single and original works of fine art; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c26/s26.012/5">
<num value="5">(5)</num>
<content>an advertisement or commercial announcement concerning a use under this subsection.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c26/s26.012/b">
<num value="b">(b)</num>
<content>A media enterprise may use a deceased individual's name, voice, signature, photograph, or likeness in connection with the coverage of news, public affairs, a sporting event, or a political campaign without consent. Any use other than the above by a media enterprise of a deceased individual's name, voice, signature, photograph, or likeness shall require consent if the material constituting the use is integrally and directly connected with commercial sponsorship or paid advertising. No consent shall be required for the use of the deceased individual's name, voice, signature, photograph, or likeness by a media enterprise if the broadcast or article is not commercially sponsored or does not contain paid advertising.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c26/s26.012/c">
<num value="c">(c)</num>
<chapeau>A person who is an owner or employee of a media enterprise, including a newspaper, magazine, radio station or network, television station or network, cable television system, billboard, or transit ad, that is used for advertising a deceased individual's name, voice, signature, photograph, or likeness in a manner not authorized by this section is not liable for damages as provided by this section unless the person:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c26/s26.012/1">
<num value="1">(1)</num>
<content>knew that the use was not authorized by this section; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c26/s26.012/2">
<num value="2">(2)</num>
<content>used the deceased individual's name, voice, signature, photograph, or likeness in a manner primarily intended to advertise or promote the media enterprise itself.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c26/s26.012/d">
<num value="d">(d)</num>
<content>A person may use a deceased individual's name, voice, signature, photograph, or likeness in any manner after the 50th anniversary of the date of the individual's death.</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 152, Sec. 1, eff. Sept. 1, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c26/s26.013">
<num value="26.013">Sec. 26.013.</num>
<heading>LIABILITY FOR UNAUTHORIZED USE</heading>
<subsection identifier="/us/tx/pr/t4/c26/s26.013/a">
<num value="a">(a)</num>
<chapeau>A person who uses a deceased individual's name, voice, signature, photograph, or likeness in a manner not authorized by this chapter is liable to the person who owns the property right for:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c26/s26.013/1">
<num value="1">(1)</num>
<content>the amount of any damages sustained, as a result of the unauthorized use, by the person who owns the property right or $2,500, whichever is greater;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c26/s26.013/2">
<num value="2">(2)</num>
<content>the amount of any profits from the unauthorized use that are attributable to that use;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c26/s26.013/3">
<num value="3">(3)</num>
<content>the amount of any exemplary damages that may be awarded; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c26/s26.013/4">
<num value="4">(4)</num>
<content>reasonable attorney's fees and expenses and court costs incurred in recovering the damages and profits established by this section.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c26/s26.013/b">
<num value="b">(b)</num>
<content>The amount of profits under Subsection (a)(2) may be established by a showing of the gross revenue attributable to the unauthorized use minus any expenses that the person who committed the unauthorized use may prove.</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 152, Sec. 1, eff. Sept. 1, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c26/s26.014">
<num value="26.014">Sec. 26.014.</num>
<heading>OTHER RIGHTS NOT AFFECTED</heading>
<content>This chapter does not affect a right an individual may have in the use of the individual's name, voice, signature, photograph, or likeness before the death of the individual.</content>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 152, Sec. 1, eff. Sept. 1, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c26/s26.015">
<num value="26.015">Sec. 26.015.</num>
<heading>DEFENSES TO LIABILITY</heading>
<content>A person shall not be liable for damages under this chapter if he has acted in reliance on the results of a probate proceeding governing the estate of the deceased personality in question.</content>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 152, Sec. 1, eff. Sept. 1, 1987.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t4/c27">
<num value="27">CHAPTER 27.</num>
<heading>RESIDENTIAL CONSTRUCTION LIABILITY</heading>
<section identifier="/us/tx/pr/t4/c27/s27.001">
<num value="27.001">Sec. 27.001.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c27/s27.001/1">
<num value="1">(1)</num>
<content>"Action" means a court or judicial proceeding or an arbitration.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c27/s27.001/2">
<num value="2">(2)</num>
<content>"Appurtenance" means any garage, outbuilding, retaining wall, or other structure or recreational facility that is constructed by a contractor in connection with the construction or alteration of a residence, regardless of whether it is attached to or a part of the dwelling unit.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c27/s27.001/3">
<num value="3">(3)</num>
<content>"Construction defect" means a deficiency in the design, construction, or repair of a new residence, of an alteration of or repair or addition to an existing residence, or of an appurtenance to a residence, on which a person has a complaint against a contractor.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c27/s27.001/4">
<num value="4">(4)</num>
<chapeau>"Contractor":</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c27/s27.001/A">
<num value="A">(A)</num>
<content>means:</content>
</subparagraph>
</paragraph>
<subsection identifier="/us/tx/pr/t4/c27/s27.001/i">
<num value="i">(i)</num>
<chapeau>a builder contracting with an owner for the construction or repair of a new residence, for the repair or alteration of or an addition to an existing residence, or for the construction, sale, alteration, addition, or repair of an appurtenance to a new or existing residence;</chapeau>
<clause identifier="/us/tx/pr/t4/c27/s27.001/ii">
<num value="ii">(ii)</num>
<content>any person contracting for the sale or construction of a new residence constructed by or on behalf of that person; or</content>
</clause>
<clause identifier="/us/tx/pr/t4/c27/s27.001/iii">
<num value="iii">(iii)</num>
<content>a person contracting with an owner or the developer of a condominium or other housing project for the construction or sale of one or more new residences, for an alteration of or an addition to an existing residence, for repair of a new or existing residence, or for the construction, sale, alteration, addition, or repair of an appurtenance to a new or existing residence; and</content>
</clause>
<subparagraph identifier="/us/tx/pr/t4/c27/s27.001/B">
<num value="B">(B)</num>
<content>includes:</content>
</subparagraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c27/s27.001/i">
<num value="i">(i)</num>
<chapeau>an owner, officer, director, shareholder, partner, or employee of the contractor; and</chapeau>
<clause identifier="/us/tx/pr/t4/c27/s27.001/ii">
<num value="ii">(ii)</num>
<content>a risk retention group registered under Chapter 2201, Insurance Code, that insures all or any part of a contractor's liability for the cost to repair a residential construction defect.</content>
</clause>
<paragraph identifier="/us/tx/pr/t4/c27/s27.001/5">
<num value="5">(5)</num>
<content>"Economic damages" means compensatory damages for pecuniary loss proximately caused by a construction defect. The term does not include exemplary damages or damages for bodily or personal injury, physical pain and mental anguish, loss of consortium, disfigurement, physical impairment, or loss of companionship and society.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c27/s27.001/6">
<num value="6">(6)</num>
<content>"Residence" means the real property and improvements for a detached one-family or two-family dwelling, a townhouse not more than three stories above grade plane in height with a separate means of egress, an accessory structure not more than three stories above grade plane in height, or a duplex, triplex, or quadruplex or a unit and the common elements in a multiunit residential structure in which the individual units are sold to the owners under a condominium or cooperative system.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c27/s27.001/7">
<num value="7">(7)</num>
<content>"Structural failure" means actual physical damage to the load-bearing portion of a residence caused by a failure of the load-bearing portion.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c27/s27.001/8">
<num value="8">(8)</num>
<content>"Developer of a condominium" means a declarant, as defined by Section 82.003, of a condominium consisting of one or more residences.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c27/s27.001/9">
<num value="9">(9)</num>
<content>"Townhouse" means a single-family dwelling unit constructed in a group of three or more attached units in which each unit extends from foundation to roof and with a yard or public way on not less than two sides.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 1072, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1993, 73rd Leg., ch. 797, Sec. 1, 2 eff. Aug. 30, 1993; Acts 1999, 76th Leg., ch. 189, Sec. 1, eff. Sept. 1, 1999; Acts 2003, 78th Leg., ch. 458, Sec. 2.01, eff. Sept. 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 750 (H.B. 3147), Sec. 1, eff. September 1, 2007.
Acts 2023, 88th Leg., R.S., Ch. 291 (S.B. 1768), Sec. 1, eff. May 29, 2023.
Acts 2023, 88th Leg., R.S., Ch. 291 (S.B. 1768), Sec. 13(2), eff. May 29, 2023.
Acts 2023, 88th Leg., R.S., Ch. 441 (H.B. 2022), Sec. 1, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c27/s27.002">
<num value="27.002">Sec. 27.002.</num>
<heading>APPLICATION OF CHAPTER</heading>
<subsection identifier="/us/tx/pr/t4/c27/s27.002/a">
<num value="a">(a)</num>
<chapeau>This chapter applies to:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c27/s27.002/1">
<num value="1">(1)</num>
<content>any action to recover damages or other relief arising from a construction defect, except a claim for personal injury, survival, or wrongful death or for damage to goods; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c27/s27.002/2">
<num value="2">(2)</num>
<content>any subsequent purchaser of a residence who files a claim against a contractor.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c27/s27.002/b">
<num value="b">(b)</num>
<content>To the extent of conflict between this chapter and any other law, including the Deceptive Trade Practices-Consumer Protection Act (Subchapter E, Chapter 17, Business & Commerce Code) or a common law cause of action, this chapter prevails.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c27/s27.002/c">
<num value="c">(c)</num>
<chapeau>In this section:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c27/s27.002/1">
<num value="1">(1)</num>
<content>"Goods" does not include a residence.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c27/s27.002/2">
<num value="2">(2)</num>
<content>"Personal injury" does not include mental anguish.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c27/s27.002/d">
<num value="d">(d)</num>
<chapeau>This chapter does not apply to an action to recover damages that arise from:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c27/s27.002/1">
<num value="1">(1)</num>
<content>a violation of Section 27.01, Business & Commerce Code;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c27/s27.002/2">
<num value="2">(2)</num>
<content>a contractor's wrongful abandonment of an improvement project before completion; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c27/s27.002/3">
<num value="3">(3)</num>
<content>a violation of Chapter 162.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 1072, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1993, 73rd Leg., ch. 797, Sec. 3, eff. Aug. 30, 1993; Acts 1999, 76th Leg., ch. 189, Sec. 2, eff. Sept. 1, 1999; Acts 2003, 78th Leg., ch. 458, Sec. 2.02, eff. Sept. 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 843 (H.B. 1038), Sec. 2, eff. September 1, 2007.
Acts 2023, 88th Leg., R.S., Ch. 291 (S.B. 1768), Sec. 2, eff. May 29, 2023.
Acts 2023, 88th Leg., R.S., Ch. 441 (H.B. 2022), Sec. 2, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c27/s27.003">
<num value="27.003">Sec. 27.003.</num>
<heading>LIABILITY</heading>
<subsection identifier="/us/tx/pr/t4/c27/s27.003/a">
<num value="a">(a)</num>
<chapeau>In an action subject to this chapter arising from a construction defect:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c27/s27.003/1">
<num value="1">(1)</num>
<chapeau>a contractor is liable only to the extent a defective condition proximately causes:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c27/s27.003/A">
<num value="A">(A)</num>
<content>actual physical damage to the residence;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c27/s27.003/B">
<num value="B">(B)</num>
<content>an actual failure or lack of capability of a building component to perform its intended function or purpose; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c27/s27.003/C">
<num value="C">(C)</num>
<content>a verifiable danger to the safety of the occupants of the residence;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c27/s27.003/2">
<num value="2">(2)</num>
<chapeau>a contractor is not liable for damages caused by:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c27/s27.003/A">
<num value="A">(A)</num>
<content>negligence of a person other than the contractor or an agent, employee, or subcontractor of the contractor;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c27/s27.003/B">
<num value="B">(B)</num>
<content>failure of a person other than the contractor or an agent, employee, or subcontractor of the contractor to:</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c27/s27.003/i">
<num value="i">(i)</num>
<chapeau>mitigate the damages;</chapeau>
<clause identifier="/us/tx/pr/t4/c27/s27.003/ii">
<num value="ii">(ii)</num>
<content>maintain the residence; or</content>
</clause>
<clause identifier="/us/tx/pr/t4/c27/s27.003/iii">
<num value="iii">(iii)</num>
<content>timely notify a contractor of a construction defect;</content>
</clause>
<subparagraph identifier="/us/tx/pr/t4/c27/s27.003/C">
<num value="C">(C)</num>
<content>normal wear, tear, or deterioration;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c27/s27.003/D">
<num value="D">(D)</num>
<content>normal cracking or shrinkage cracking due to drying or settlement of construction components within the tolerance of building standards; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c27/s27.003/E">
<num value="E">(E)</num>
<content>the contractor's reliance on written information relating to the residence, appurtenance, or real property on which the residence and appurtenance are affixed that was obtained from official government records, if the written information was false, modified, or inaccurate and the contractor did not know and could not reasonably have known of the falsity, modification, or inaccuracy of the information; and</content>
</subparagraph>
<paragraph identifier="/us/tx/pr/t4/c27/s27.003/3">
<num value="3">(3)</num>
<content>if an assignee of the claimant or a person subrogated to the rights of a claimant fails to provide the contractor with the written notice and opportunity to inspect and offer to repair required by Section 27.004 before performing repairs, the contractor is not liable for the cost of any repairs or any percentage of damages caused by repairs made to a construction defect at the request of an assignee of the claimant or a person subrogated to the rights of a claimant by a person other than the contractor or an agent, employee, or subcontractor of the contractor.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c27/s27.003/b">
<num value="b">(b)</num>
<content>Except as provided by this chapter, this chapter does not limit or bar any other defense or defensive matter or other defensive cause of action applicable to an action to recover damages or other relief arising from a construction defect.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c27/s27.003/c">
<num value="c">(c)</num>
<chapeau>To maintain a claim of breach of a warranty of habitability, a claimant must establish that a construction defect:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c27/s27.003/1">
<num value="1">(1)</num>
<content>was latent at the time the residence was completed or title was conveyed to the original purchaser; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c27/s27.003/2">
<num value="2">(2)</num>
<content>has rendered the residence unsuitable for its intended use as a home.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 1072, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1993, 73rd Leg., ch. 797, Sec. 4, eff. Aug. 30, 1993; Acts 1999, 76th Leg., ch. 189, Sec. 3, eff. Sept. 1, 1999; Acts 2003, 78th Leg., ch. 458, Sec. 2.03, eff. Sept. 1, 2003.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 291 (S.B. 1768), Sec. 3, eff. May 29, 2023.
Acts 2023, 88th Leg., R.S., Ch. 441 (H.B. 2022), Sec. 3, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c27/s27.0031">
<num value="27.0031">Sec. 27.0031.</num>
<heading>FRIVOLOUS SUIT; HARASSMENT</heading>
<content>A party who files a suit under this chapter that is groundless and brought in bad faith or for purposes of harassment is liable to the defendant for reasonable and necessary attorney's fees and court costs.</content>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 189, Sec. 4, eff. Sept. 1, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c27/s27.004">
<num value="27.004">Sec. 27.004.</num>
<heading>NOTICE AND OFFER OF SETTLEMENT</heading>
<subsection identifier="/us/tx/pr/t4/c27/s27.004/a">
<num value="a">(a)</num>
<content>Before the 60th day preceding the date a claimant seeking from a contractor damages or other relief arising from a construction defect initiates an action, the claimant shall give written notice by certified mail, return receipt requested, to the contractor, at the contractor's last known address, specifying in reasonable detail the construction defects that are the subject of the complaint. The claimant shall provide to the contractor any evidence that depicts the nature and cause of the defect and the nature and extent of repairs necessary to remedy the defect, including any expert reports, photographs, and video or audio recordings, if that evidence would be discoverable under Rule 192, Texas Rules of Civil Procedure. During the 35-day period after the date the contractor receives the notice, and on the contractor's written request, the contractor shall be given a reasonable opportunity to inspect and have inspected the property that is the subject of the complaint to determine the nature and cause of the defect and the nature and extent of repairs necessary to remedy the defect. To the extent requested, the contractor shall be given the opportunity to conduct up to three inspections during the 35-day period after the date the contractor receives the notice and during any extension of that inspection period provided by law or as otherwise agreed to by the parties. The contractor may take reasonable steps to document the defect.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c27/s27.004/b">
<num value="b">(b)</num>
<chapeau>Not later than the 60th day after the date the contractor receives the notice under this section, the contractor may make a written offer of settlement to the claimant. The offer must be sent to the claimant at the claimant's last known address or to the claimant's attorney by certified mail, return receipt requested. The offer may include either an agreement by the contractor to repair or to have repaired by an independent contractor partially or totally at the contractor's expense or at a reduced rate to the claimant any construction defect described in the notice and shall describe in reasonable detail the kind of repairs which will be made and the time for completion of the repairs if more than 60 days. The repairs shall be made not later than the 60th day after the date the contractor receives written notice of acceptance of the settlement offer, unless completion is delayed by the claimant or by other events beyond the control of the contractor. If a contractor makes a written offer of settlement that the claimant considers to be unreasonable:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c27/s27.004/1">
<num value="1">(1)</num>
<content>on or before the 25th day after the date the claimant receives the offer, the claimant shall advise the contractor in writing and in reasonable detail of the reasons why the claimant considers the offer unreasonable; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c27/s27.004/2">
<num value="2">(2)</num>
<content>not later than the 10th day after the date the contractor receives notice under Subdivision (1), the contractor may make a supplemental written offer of settlement to the claimant by sending the offer to the claimant or the claimant's attorney.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c27/s27.004/c">
<num value="c">(c)</num>
<content>If the giving of the notice under Subsections (a) and (b) within the period prescribed by those subsections is impracticable because of the necessity of initiating an action at an earlier date to prevent expiration of the statute of limitations or if the complaint is asserted as a counterclaim, the notice is not required. However, the action or counterclaim shall specify in reasonable detail each construction defect that is the subject of the complaint. The inspection provided for by Subsection (a) may be made not later than the 75th day after the date of service of the suit, request for arbitration, or counterclaim on the contractor, and the offer provided for by Subsection (b) may be made not later than the 60th day after the date of service. If, while an action subject to this chapter is pending, the statute of limitations for the cause of action would have expired and it is determined that the provisions of Subsection (a) were not properly followed, the action shall be abated to allow compliance with Subsections (a) and (b).</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c27/s27.004/d">
<num value="d">(d)</num>
<chapeau>The court or arbitration tribunal shall abate an action governed by this chapter if Subsection (c) does not apply and the court or tribunal, after a hearing, finds that the contractor is entitled to abatement because the claimant failed to provide the notice or failed to give the contractor a reasonable opportunity to inspect the property as required by Subsection (a) or failed to follow the procedures specified by Subsection (b). An action is automatically abated without the order of the court or tribunal beginning on the 11th day after the date a motion to abate is filed if the motion:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c27/s27.004/1">
<num value="1">(1)</num>
<content>is verified and alleges that the person against whom the action is pending did not receive the written notice required by Subsection (a), the person against whom the action is pending was not given a reasonable opportunity to inspect the property as required by Subsection (a), or the claimant failed to follow the procedures specified by Subsection (b); and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c27/s27.004/2">
<num value="2">(2)</num>
<content>is not controverted by an affidavit filed by the claimant before the 11th day after the date on which the motion to abate is filed.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c27/s27.004/e">
<num value="e">(e)</num>
<chapeau>If a claimant rejects a reasonable offer made under Subsection (b) or does not permit the contractor or independent contractor a reasonable opportunity to inspect or repair the defect pursuant to an accepted offer of settlement, the claimant:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c27/s27.004/1">
<num value="1">(1)</num>
<chapeau>may not recover an amount in excess of:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c27/s27.004/A">
<num value="A">(A)</num>
<content>the fair market value of the contractor's last offer of settlement under Subsection (b); or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c27/s27.004/B">
<num value="B">(B)</num>
<content>the amount of a reasonable monetary settlement or purchase offer made under Subsection (n); and</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c27/s27.004/2">
<num value="2">(2)</num>
<content>may recover only the amount of reasonable and necessary costs and attorney's fees as prescribed by Rule 1.04, Texas Disciplinary Rules of Professional Conduct, incurred before the offer was rejected or considered rejected.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c27/s27.004/f">
<num value="f">(f)</num>
<content>If a contractor fails to make a reasonable offer under Subsection (b), the limitations on damages provided for in Subsection (e) shall not apply.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c27/s27.004/g">
<num value="g">(g)</num>
<chapeau>Except as provided by Subsection (e), in an action subject to this chapter the claimant may recover only the following economic damages proximately caused by a construction defect:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c27/s27.004/1">
<num value="1">(1)</num>
<content>the reasonable cost of repairs necessary to cure any construction defect;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c27/s27.004/2">
<num value="2">(2)</num>
<content>the reasonable and necessary cost for the replacement or repair of any damaged goods in the residence;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c27/s27.004/3">
<num value="3">(3)</num>
<content>reasonable and necessary engineering and consulting fees;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c27/s27.004/4">
<num value="4">(4)</num>
<content>the reasonable expenses of temporary housing reasonably necessary during the repair period;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c27/s27.004/5">
<num value="5">(5)</num>
<content>the reduction in current market value, if any, after the construction defect is repaired if the construction defect is a structural failure;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c27/s27.004/6">
<num value="6">(6)</num>
<content>reasonable and necessary attorney's fees; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c27/s27.004/7">
<num value="7">(7)</num>
<content>reasonable and necessary arbitration filing fees and the claimant's share of arbitrator compensation.</content>
<continuation>(g-1) The court or arbitration tribunal may order that an offer made by the contractor after the time prescribed is considered timely for purposes of Subsection (b) or (c), as applicable, if the contractor is prejudiced in the contractor's opportunity to inspect as provided for by Subsection (a) or (c) or make an offer provided for by Subsection (b) or (c):</continuation>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c27/s27.004/1">
<num value="1">(1)</num>
<chapeau>because the claimant:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c27/s27.004/A">
<num value="A">(A)</num>
<content>failed to provide the contractor evidence available and in the claimant's possession, custody, or control at the time of the original notice depicting the nature and cause of the defect and the nature and extent of repairs necessary to remedy the defect, including reports, photographs, videos, or any other evidence; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c27/s27.004/B">
<num value="B">(B)</num>
<content>amended a claim to add a new alleged defect; or</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c27/s27.004/2">
<num value="2">(2)</num>
<content>due to events beyond the contractor's control.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c27/s27.004/h">
<num value="h">(h)</num>
<content>A homeowner and a contractor may agree in writing to extend any time period described in this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c27/s27.004/i">
<num value="i">(i)</num>
<content>An offer of settlement made under this section that is not accepted before the 25th day after the date the offer is received by the claimant is considered rejected.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c27/s27.004/j">
<num value="j">(j)</num>
<content>An affidavit certifying rejection of a settlement offer under this section may be filed with the court or arbitration tribunal. The trier of fact shall determine the reasonableness of a final offer of settlement made under this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c27/s27.004/k">
<num value="k">(k)</num>
<content>A contractor who makes or provides for repairs under this section is entitled to take reasonable steps to document the repair and to have it inspected.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c27/s27.004/l">
<num value="l">(l)</num>
<content>Repealed by Acts 2023, 88th Leg., R.S., Ch. 291 (S.B. 1768), Sec. 13(3), eff. May 29, 2023, and Ch. 441 (H.B. 2022), Sec. 8(1), eff. September 1, 2023.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c27/s27.004/m">
<num value="m">(m)</num>
<content>Notwithstanding Subsections (a), (b), and (c), a contractor who receives written notice of a construction defect resulting from work performed by the contractor or an agent, employee, or subcontractor of the contractor and creating an imminent threat to the health or safety of the inhabitants of the residence shall take reasonable steps to cure the defect as soon as practicable. If the contractor fails to cure the defect in a reasonable time, the owner of the residence may have the defect cured and may recover from the contractor the reasonable cost of the repairs plus attorney's fees and costs in addition to any other damages recoverable under any law not inconsistent with the provisions of this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c27/s27.004/n">
<num value="n">(n)</num>
<content>This section does not preclude a contractor from making a monetary settlement offer or an offer to purchase the residence.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c27/s27.004/o">
<num value="o">(o)</num>
<content>A notice and response letter prescribed by this chapter must be sent by certified mail, return receipt requested, to the last known address of the recipient. If previously disclosed in writing that the recipient of a notice or response letter is represented by an attorney, the letter shall be sent to the recipient's attorney in accordance with Rule 21a, Texas Rules of Civil Procedure.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c27/s27.004/p">
<num value="p">(p)</num>
<content>If the contractor provides written notice of a claim for damages arising from a construction defect to a subcontractor, the contractor retains all rights of contribution from the subcontractor if the contractor settles the claim with the claimant.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c27/s27.004/q">
<num value="q">(q)</num>
<content>If a contractor refuses to initiate repairs under an accepted offer made under this section, the limitations on damages provided for in this section shall not apply.</content>
</subsection>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 1072, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1993, 73rd Leg., ch. 797, Sec. 5, eff. Aug. 30, 1993; Acts 1995, 74th Leg., ch. 414, Sec. 10, eff. Sept. 1, 1995; Acts 1999, 76th Leg., ch. 189, Sec. 5, eff. Sept. 1, 1999; Acts 2003, 78th Leg., ch. 458, Sec. 2.04, eff. Sept. 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 843 (H.B. 1038), Sec. 3, eff. September 1, 2007.
Acts 2023, 88th Leg., R.S., Ch. 291 (S.B. 1768), Sec. 4, eff. May 29, 2023.
Acts 2023, 88th Leg., R.S., Ch. 291 (S.B. 1768), Sec. 13(3), eff. May 29, 2023.
Acts 2023, 88th Leg., R.S., Ch. 441 (H.B. 2022), Sec. 4, eff. September 1, 2023.
Acts 2023, 88th Leg., R.S., Ch. 441 (H.B. 2022), Sec. 8(1), eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c27/s27.0041">
<num value="27.0041">Sec. 27.0041.</num>
<heading>MEDIATION</heading>
<subsection identifier="/us/tx/pr/t4/c27/s27.0041/a">
<num value="a">(a)</num>
<content>If a claimant files suit seeking from a contractor damages arising from a construction defect in an amount greater than $7,500, the claimant or contractor may file a motion to compel mediation of the dispute. The motion must be filed not later than the 90th day after the date the suit is filed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c27/s27.0041/b">
<num value="b">(b)</num>
<content>Not later than the 30th day after the date a motion is filed under Subsection (a), the court shall order the parties to mediate the dispute. If the parties cannot agree on the appointment of a mediator, the court shall appoint the mediator.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c27/s27.0041/c">
<num value="c">(c)</num>
<content>The court shall order the parties to begin mediation of the dispute not later than the 30th day after the date the court enters its order under Subsection (b) unless the parties agree otherwise or the court determines additional time is required. If the court determines that additional time is required, the court may order the parties to begin mediation of the dispute not later than the 60th day after the date the court enters its order under Subsection (b).</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c27/s27.0041/d">
<num value="d">(d)</num>
<content>Unless each party who has appeared in a suit filed under this chapter agrees otherwise, each party shall participate in the mediation and contribute equally to the cost of the mediation.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c27/s27.0041/e">
<num value="e">(e)</num>
<content>Section 154.023, Civil Practice and Remedies Code, and Subchapters C and D, Chapter 154, Civil Practice and Remedies Code, apply to a mediation under this section to the extent those laws do not conflict with this section.</content>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 189, Sec. 6, eff. Sept. 1, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c27/s27.0042">
<num value="27.0042">Sec. 27.0042.</num>
<heading>CONDITIONAL SALE TO BUILDER</heading>
<subsection identifier="/us/tx/pr/t4/c27/s27.0042/a">
<num value="a">(a)</num>
<content>A written agreement between a contractor and a homeowner may provide that, if the reasonable cost of repairs necessary to repair a construction defect that is the responsibility of the contractor exceeds an agreed percentage of the current fair market value of the residence, as determined without reference to the construction defects, then, in an action subject to this chapter, the contractor may elect as an alternative to the damages specified in Section 27.004(g) that the contractor who sold the residence to the homeowner purchase it.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c27/s27.0042/b">
<num value="b">(b)</num>
<content>Repealed by Acts 2023, 88th Leg., R.S., Ch. 441 (H.B. 2022), Sec. 8(2), eff. September 1, 2023.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c27/s27.0042/c">
<num value="c">(c)</num>
<chapeau>If a contractor elects to purchase the residence under Subsection (a):</chapeau>
<paragraph identifier="/us/tx/pr/t4/c27/s27.0042/1">
<num value="1">(1)</num>
<content>the contractor shall pay the original purchase price of the residence and closing costs incurred by the homeowner and the cost of transferring title to the contractor under the election;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c27/s27.0042/2">
<num value="2">(2)</num>
<chapeau>the homeowner may recover:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c27/s27.0042/A">
<num value="A">(A)</num>
<content>reasonable and necessary attorney's and expert fees as identified in Section 27.004(g);</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c27/s27.0042/B">
<num value="B">(B)</num>
<content>reimbursement for permanent improvements the owner made to the residence after the date the owner purchased the residence from the builder; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c27/s27.0042/C">
<num value="C">(C)</num>
<content>reasonable costs to move from the residence; and</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c27/s27.0042/3">
<num value="3">(3)</num>
<content>conditioned on the payment of the purchase price, the homeowner shall tender a special warranty deed to the contractor, free of all liens and claims to liens as of the date the title is transferred to the contractor, and without damage caused by the homeowner.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c27/s27.0042/d">
<num value="d">(d)</num>
<content>An offer to purchase a claimant's home that complies with this section is considered reasonable absent clear and convincing evidence to the contrary.</content>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 458, Sec. 2.05, eff. Sept. 1, 2003.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 291 (S.B. 1768), Sec. 5, eff. May 29, 2023.
Acts 2023, 88th Leg., R.S., Ch. 441 (H.B. 2022), Sec. 5, eff. September 1, 2023.
Acts 2023, 88th Leg., R.S., Ch. 441 (H.B. 2022), Sec. 8(2), eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c27/s27.005">
<num value="27.005">Sec. 27.005.</num>
<heading>LIMITATIONS ON EFFECT OF CHAPTER</heading>
<content>This chapter does not create a cause of action or derivative liability or extend a limitations period.</content>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 1072, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1999, 76th Leg., ch. 189, Sec. 7, eff. Sept. 1, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c27/s27.006">
<num value="27.006">Sec. 27.006.</num>
<heading>CAUSATION</heading>
<chapeau>In an action to recover damages resulting from a construction defect, the claimant must prove that:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c27/s27.006/1">
<num value="1">(1)</num>
<content>the construction defect existed at the time of completion of the construction, alteration, or repair; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c27/s27.006/2">
<num value="2">(2)</num>
<content>the damages were proximately caused by the construction defect.</content>
</paragraph>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 797, Sec. 6, eff. Aug. 30, 1993.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 441 (H.B. 2022), Sec. 6, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c27/s27.007">
<num value="27.007">Sec. 27.007.</num>
<heading>DISCLOSURE STATEMENT REQUIRED</heading>
<subsection identifier="/us/tx/pr/t4/c27/s27.007/a">
<num value="a">(a)</num>
<content>A written contract subject to this chapter, other than a contract between a developer of a condominium and a contractor for the construction or repair of a residence or appurtenance to a residence in a condominium, must contain in the contract a notice printed or typed in 10-point boldface type or the computer equivalent that reads substantially similar to the following:</content>
<continuation>"This contract is subject to Chapter 27 of the Texas Property Code. The provisions of that chapter may affect your right to recover damages arising from a construction defect. If you have a complaint concerning a construction defect and that defect has not been corrected as may be required by law or by contract, you must provide the notice required by Chapter 27 of the Texas Property Code to the contractor by certified mail, return receipt requested, not later than the 60th day before the date you file suit to recover damages in a court of law or initiate arbitration. The notice must refer to Chapter 27 of the Texas Property Code and must describe the construction defect. If requested by the contractor, you must provide the contractor an opportunity to inspect and cure the defect as provided by Section 27.004 of the Texas Property Code."</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t4/c27/s27.007/b">
<num value="b">(b)</num>
<content>If a contract does not contain the notice required by this section, the claimant may recover from the contractor a civil penalty of $500 in addition to any other remedy provided by this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c27/s27.007/c">
<num value="c">(c)</num>
<content>Repealed by Acts 2023, 88th Leg., R.S., Ch. 291 (S.B. 1768), Sec. 13(4), eff. May 29, 2023, and Ch. 441 (H.B. 2022), Sec. 8(3), eff. September 1, 2023.</content>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 189, Sec. 8, eff. Sept. 1, 2000. Amended by Acts 2003, 78th Leg., ch. 458, Sec. 2.06, eff. Sept. 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 750 (H.B. 3147), Sec. 2, eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 843 (H.B. 1038), Sec. 4, eff. September 1, 2007.
Acts 2023, 88th Leg., R.S., Ch. 291 (S.B. 1768), Sec. 13(4), eff. May 29, 2023.
Acts 2023, 88th Leg., R.S., Ch. 441 (H.B. 2022), Sec. 8(3), eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c27/s27.008">
<num value="27.008">Sec. 27.008.</num>
<heading>EFFECT OF ARBITRATION ON LIMITATIONS PERIOD</heading>
<content>The submission of an action subject to this chapter to arbitration has the same effect on the running of a limitations period as a filing in a court in this state.</content>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 441 (H.B. 2022), Sec. 7, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c27/s27.009">
<num value="27.009">Sec. 27.009.</num>
<heading>NO WAIVER</heading>
<content>An attempted waiver of the provisions of this chapter in a contract subject to this chapter is void.</content>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 441 (H.B. 2022), Sec. 7, eff. September 1, 2023.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t4/c28">
<num value="28">CHAPTER 28.</num>
<heading>PROMPT PAYMENT TO CONTRACTORS AND SUBCONTRACTORS</heading>
<section identifier="/us/tx/pr/t4/c28/s28.001">
<num value="28.001">Sec. 28.001.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c28/s28.001/1">
<num value="1">(1)</num>
<content>"Contractor" means a person who contracts with an owner to improve real property or perform construction services for an owner.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c28/s28.001/2">
<num value="2">(2)</num>
<chapeau>"Improve" means to:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c28/s28.001/A">
<num value="A">(A)</num>
<content>build, construct, effect, erect, alter, repair, or demolish any improvement on, connected with, or beneath the surface of real property;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c28/s28.001/B">
<num value="B">(B)</num>
<content>excavate, clear, grade, fill, or landscape real property;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c28/s28.001/C">
<num value="C">(C)</num>
<content>construct a driveway or roadway;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c28/s28.001/D">
<num value="D">(D)</num>
<content>furnish any material, including trees or shrubbery, for the purpose of taking any action described by Paragraphs (A)-(C) of this subdivision; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c28/s28.001/E">
<num value="E">(E)</num>
<content>perform any labor on or in connection with an improvement.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c28/s28.001/3">
<num value="3">(3)</num>
<chapeau>"Improvement" includes all or any part of:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c28/s28.001/A">
<num value="A">(A)</num>
<content>a building, structure, erection, alteration, demolition, or excavation on, connected with, or beneath the surface of real property; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c28/s28.001/B">
<num value="B">(B)</num>
<content>the act of clearing, grading, filling, or landscaping real property, including constructing a driveway or roadway or furnishing trees or shrubbery.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c28/s28.001/4">
<num value="4">(4)</num>
<content>"Owner" means a person or entity, other than a governmental entity, with an interest in real property that is improved, for whom an improvement is made, and who ordered the improvement to be made.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c28/s28.001/5">
<num value="5">(5)</num>
<content>"Real property" includes lands, leaseholds, tenements, hereditaments, and improvements placed on the real property.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c28/s28.001/6">
<num value="6">(6)</num>
<content>"Subcontractor" means a person who contracts to furnish labor or material to, or has performed labor or supplied materials for, a contractor or another subcontractor in connection with a contract to improve real property.</content>
</paragraph>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 479, Sec. 1, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c28/s28.002">
<num value="28.002">Sec. 28.002.</num>
<heading>PROMPT PAY REQUIRED</heading>
<subsection identifier="/us/tx/pr/t4/c28/s28.002/a">
<num value="a">(a)</num>
<content>If an owner or a person authorized to act on behalf of the owner receives a written payment request from a contractor for an amount that is allowed to the contractor under the contract for properly performed work or suitably stored or specially fabricated materials, the owner shall pay the amount to the contractor, less any amount withheld as authorized by statute, not later than the 35th day after the date the owner receives the request.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c28/s28.002/b">
<num value="b">(b)</num>
<content>A contractor who receives a payment under Subsection (a) or otherwise from an owner in connection with a contract to improve real property shall pay each of its subcontractors the portion of the owner's payment, including interest, if any, that is attributable to work properly performed or materials suitably stored or specially fabricated as provided under the contract by that subcontractor, to the extent of that subcontractor's interest in the owner's payment. The payment required by this subsection must be made not later than the seventh day after the date the contractor receives the owner's payment.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c28/s28.002/c">
<num value="c">(c)</num>
<content>A subcontractor who receives a payment under Subsection (b) or otherwise from a contractor in connection with a contract to improve real property shall pay each of its subcontractors the portion of the payment, including interest, if any, that is attributable to work properly performed or materials suitably stored or specially fabricated as provided under the contract by that subcontractor, to the extent of that subcontractor's interest in the payment. The payment required by this subsection must be made not later than the seventh day after the date the subcontractor receives the contractor's payment.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 479, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1999, 76th Leg., ch. 805, Sec. 1, eff. Sept. 1, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c28/s28.003">
<num value="28.003">Sec. 28.003.</num>
<heading>EXCEPTION FOR GOOD FAITH DISPUTE; WITHHOLDING</heading>
<subsection identifier="/us/tx/pr/t4/c28/s28.003/a">
<num value="a">(a)</num>
<content>If a good faith dispute exists concerning the amount owed for a payment requested or required by this chapter under a contract for construction of or improvements to a detached single-family residence, duplex, triplex, or quadruplex, the owner, contractor, or subcontractor that is disputing its obligation to pay or the amount of payment may withhold from the payment owed not more than 110 percent of the difference between the amount the obligee claims is due and the amount the obligor claims is due. A good faith dispute includes a dispute regarding whether the work was performed in a proper manner.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c28/s28.003/b">
<num value="b">(b)</num>
<content>If a good faith dispute exists concerning the amount owed for a payment requested or required by this chapter under a contract for construction of or improvements to real property, excluding a detached single-family residence, duplex, triplex, or quadruplex, the owner, contractor, or subcontractor that is disputing its obligation to pay or the amount of payment may withhold from the payment owed not more than 100 percent of the difference between the amount the obligee claims is due and the amount the obligor claims is due. A good faith dispute includes a dispute regarding whether the work was performed in a proper manner.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 479, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1999, 76th Leg., ch. 805, Sec. 2, eff. Sept. 1, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c28/s28.004">
<num value="28.004">Sec. 28.004.</num>
<heading>INTEREST ON OVERDUE PAYMENT</heading>
<subsection identifier="/us/tx/pr/t4/c28/s28.004/a">
<num value="a">(a)</num>
<content>An unpaid amount required under this chapter begins to accrue interest on the day after the date on which the payment becomes due.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c28/s28.004/b">
<num value="b">(b)</num>
<content>An unpaid amount bears interest at the rate of 1-1/2 percent each month.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c28/s28.004/c">
<num value="c">(c)</num>
<chapeau>Interest on an unpaid amount stops accruing under this section on the earlier of:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c28/s28.004/1">
<num value="1">(1)</num>
<content>the date of delivery;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c28/s28.004/2">
<num value="2">(2)</num>
<content>the date of mailing, if payment is mailed and delivery occurs within three days; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c28/s28.004/3">
<num value="3">(3)</num>
<content>the date a judgment is entered in an action brought under this chapter.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 479, Sec. 1, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c28/s28.005">
<num value="28.005">Sec. 28.005.</num>
<heading>ACTION TO ENFORCE PAYMENT</heading>
<subsection identifier="/us/tx/pr/t4/c28/s28.005/a">
<num value="a">(a)</num>
<content>A person may bring an action to enforce the person's rights under this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c28/s28.005/b">
<num value="b">(b)</num>
<content>In an action brought under this chapter, the court may award costs and reasonable attorney's fees as the court determines equitable and just.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 479, Sec. 1, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c28/s28.006">
<num value="28.006">Sec. 28.006.</num>
<heading>NO WAIVER</heading>
<subsection identifier="/us/tx/pr/t4/c28/s28.006/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (b), an attempted waiver of a provision of this chapter is void.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c28/s28.006/b">
<num value="b">(b)</num>
<content>A written contract between an owner and a contractor for improvements to or construction of a single-family residence may provide that the payment required under Section 28.002(a) be made not later than a date that occurs before the 61st day after the date the owner receives the payment request. Notwithstanding Section 28.004(b), an unpaid amount under contract subject to this subsection that allows payment later than the date otherwise required under Section 28.002(a) bears interest at the rate of 1-1/2 percent each month.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 479, Sec. 1, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c28/s28.007">
<num value="28.007">Sec. 28.007.</num>
<heading>LEGAL CONSTRUCTION</heading>
<subsection identifier="/us/tx/pr/t4/c28/s28.007/a">
<num value="a">(a)</num>
<content>This chapter may not be interpreted to void a contractor's or subcontractor's entitlement to payment for properly performed work or suitably stored materials.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c28/s28.007/b">
<num value="b">(b)</num>
<content>Nothing in this statute shall be interpreted to change the rights and obligations set forth in Chapter 53, Property Code.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 479, Sec. 1, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c28/s28.008">
<num value="28.008">Sec. 28.008.</num>
<heading>EXCEPTION FOR FAILURE OF LENDER TO DISBURSE FUNDS</heading>
<chapeau>The date of payment required of the owner pursuant to Section 28.002(a) shall change from the 35th day after the date the owner receives the payment request to the fifth day after the date the owner receives loan proceeds, in the event that:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c28/s28.008/1">
<num value="1">(1)</num>
<content>the owner has obtained a loan intended to pay for all or part of a contract to improve real property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c28/s28.008/2">
<num value="2">(2)</num>
<content>the owner has timely and properly requested disbursement of proceeds from that loan; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c28/s28.008/3">
<num value="3">(3)</num>
<content>the lender is legally obligated to disburse such proceeds to the owner, but has failed to do so within 35 days after the date the owner received the contractor's payment request.</content>
</paragraph>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 479, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1999, 76th Leg., ch. 805, Sec. 3, eff. Sept. 1, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c28/s28.009">
<num value="28.009">Sec. 28.009.</num>
<heading>RIGHT TO SUSPEND WORK</heading>
<subsection identifier="/us/tx/pr/t4/c28/s28.009/a">
<num value="a">(a)</num>
<chapeau>If an owner fails to pay the contractor the undisputed amount within the time limits provided by this chapter, the contractor or any subcontractor may suspend contractually required performance the 10th day after the date the contractor or subcontractor gives the owner and the owner's lender written notice:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c28/s28.009/1">
<num value="1">(1)</num>
<content>informing the owner and lender that payment has not been received; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c28/s28.009/2">
<num value="2">(2)</num>
<content>stating the intent of the contractor or subcontractor to suspend performance for nonpayment.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c28/s28.009/b">
<num value="b">(b)</num>
<chapeau>For purposes of Subsection (a), the contractor or subcontractor must give the owner's lender the written notice only if:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c28/s28.009/1">
<num value="1">(1)</num>
<content>the owner has obtained a loan intended to pay for all or part of the construction project;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c28/s28.009/2">
<num value="2">(2)</num>
<content>the lender has remitted funds, including acquisition funds, for construction purposes;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c28/s28.009/3">
<num value="3">(3)</num>
<chapeau>the loan obtained:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c28/s28.009/A">
<num value="A">(A)</num>
<content>is evidenced by a promissory note secured by a deed of trust recorded in the real property records of the county in which the real property that is the subject of the contract is located; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c28/s28.009/B">
<num value="B">(B)</num>
<content>is not only for the acquisition of personal property or secured only by a security instrument;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c28/s28.009/4">
<num value="4">(4)</num>
<chapeau>the owner or lender, at the lender's option:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c28/s28.009/A">
<num value="A">(A)</num>
<content>securely posts not later than the 10th day after the date construction commences a sign on the project site in a prominent place accessible to each contractor, subcontractor, and supplier that states the lender's name, address, and the person to whom any notice should be sent; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c28/s28.009/B">
<num value="B">(B)</num>
<content>maintains the sign during the pendency of the construction project;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c28/s28.009/5">
<num value="5">(5)</num>
<content>not later than the 10th day after the date construction commences, the owner or lender, at the lender's option, provides a written copy of the notice prescribed by Subdivision (4) to the contractor and any subcontractor or supplier identified by the contractor by depositing the notice properly addressed in the United States mail, first class, postage paid; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c28/s28.009/6">
<num value="6">(6)</num>
<content>not later than the 10th day after the date a subcontractor or supplier performs labor or furnishes materials or equipment for the construction project, the owner, contractor, or subcontractor provides a written copy of the notice prescribed by Subdivision (4) to the subcontractor or supplier.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c28/s28.009/c">
<num value="c">(c)</num>
<chapeau>A contractor or subcontractor who suspends performance as provided by this section is not:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c28/s28.009/1">
<num value="1">(1)</num>
<content>required to supply further labor, services, or materials until the person is paid the amount provided by this chapter, plus costs for demobilization and remobilization; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c28/s28.009/2">
<num value="2">(2)</num>
<content>responsible for damages resulting from suspending work if the contractor or subcontractor has not been notified in writing before suspending performance that payment has been made or that a good faith dispute for payment exists.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c28/s28.009/d">
<num value="d">(d)</num>
<chapeau>A notification that a good faith dispute for payment exists provided under Subsection (c) must include a list of specific reasons for nonpayment. If a reason specified includes labor, services, or materials provided by a subcontractor that are not provided in compliance with the contract, the subcontractor is entitled to a reasonable opportunity to:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c28/s28.009/1">
<num value="1">(1)</num>
<content>cure the listed items; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c28/s28.009/2">
<num value="2">(2)</num>
<content>offer a reasonable amount to compensate for listed items that cannot be promptly cured.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c28/s28.009/e">
<num value="e">(e)</num>
<chapeau>This section does not apply to:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c28/s28.009/1">
<num value="1">(1)</num>
<content>a contract for the construction of or improvements to a detached single-family residence, duplex, triplex, or quadruplex; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c28/s28.009/2">
<num value="2">(2)</num>
<content>a contract to improve real property for a governmental entity.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c28/s28.009/f">
<num value="f">(f)</num>
<content>The rights and remedies provided by this section are in addition to rights and remedies provided by this chapter or other law.</content>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 805, Sec. 4, eff. Sept. 1, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c28/s28.0091">
<num value="28.0091">Sec. 28.0091.</num>
<heading>UNSIGNED CHANGE ORDER</heading>
<subsection identifier="/us/tx/pr/t4/c28/s28.0091/a">
<num value="a">(a)</num>
<chapeau>A contractor or subcontractor may elect not to proceed with additional work directed by an owner if:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c28/s28.0091/1">
<num value="1">(1)</num>
<content>the contractor or subcontractor has not received a written, fully executed change order for the owner-directed additional work; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c28/s28.0091/2">
<num value="2">(2)</num>
<content>the aggregate actual or anticipated value of the additional work plus any previous owner-directed additional work for which the contractor or subcontractor has not received a written, fully executed change order exceeds 10 percent of the contractor's or subcontractor's original contract amount.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c28/s28.0091/b">
<num value="b">(b)</num>
<content>A contractor or subcontractor who elects not to proceed with additional work as provided by this section is not responsible for damages associated with the election not to proceed.</content>
</subsection>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 533 (H.B. 3485), Sec. 2, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c28/s28.010">
<num value="28.010">Sec. 28.010.</num>
<heading>EXEMPTION FOR MINERAL DEVELOPMENT AND OILFIELD SERVICES</heading>
<subsection identifier="/us/tx/pr/t4/c28/s28.010/a">
<num value="a">(a)</num>
<chapeau>This chapter does not apply to any agreement:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c28/s28.010/1">
<num value="1">(1)</num>
<content>to explore, produce, or develop oil, natural gas, natural gas liquids, synthetic gas, sulphur, ore, or other mineral substances, including any lease or royalty agreement, joint interest agreement, production or production-related agreement, operating agreement, farmout agreement, area of mutual interest agreement, or other related agreement;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c28/s28.010/2">
<num value="2">(2)</num>
<content>for any well or mine services; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c28/s28.010/3">
<num value="3">(3)</num>
<content>to purchase, sell, gather, store, or transport oil, natural gas, natural gas liquids, synthetic gas, or other hydrocarbon substances by pipeline or by a fixed, associated facility.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c28/s28.010/b">
<num value="b">(b)</num>
<chapeau>In this section:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c28/s28.010/1">
<num value="1">(1)</num>
<chapeau>"Agreement" includes a written or oral agreement or understanding:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c28/s28.010/A">
<num value="A">(A)</num>
<content>to provide work or services, including any construction, operating, repair, or maintenance services; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c28/s28.010/B">
<num value="B">(B)</num>
<content>to perform a part of the services covered by Paragraph (A) or an act collateral to those services, including furnishing or renting equipment, incidental transportation, or other goods and services furnished in connection with those services.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c28/s28.010/2">
<num value="2">(2)</num>
<chapeau>"Well or mine services" includes:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c28/s28.010/A">
<num value="A">(A)</num>
<content>drilling, deepening, reworking, repairing, improving, testing, treating, perforating, acidizing, logging, conditioning, purchasing, gathering, storing, or transporting oil or natural gas, brine water, fresh water, produced water, condensate, petroleum products, or other liquid commodities, or otherwise rendering services in connection with a well drilled to produce or dispose of oil, gas, or other minerals or water; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c28/s28.010/B">
<num value="B">(B)</num>
<content>designing, excavating, constructing, improving, or otherwise rendering services in connection with an oil, gas, or other mineral production platform or facility, mine shaft, drift, or other structure intended directly for use in exploring for or producing a mineral.</content>
</subparagraph>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 805, Sec. 4, eff. Sept. 1, 1999.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t4/c29">
<num value="29">CHAPTER 29.</num>
<heading>FORCED SALE OF OWNER'S INTEREST IN CERTAIN REAL PROPERTY AS REIMBURSEMENT FOR PROPERTY TAXES PAID BY CO-OWNER ON OWNER'S BEHALF</heading>
<section identifier="/us/tx/pr/t4/c29/s29.001">
<num value="29.001">Sec. 29.001.</num>
<heading>APPLICATION OF CHAPTER</heading>
<chapeau>This chapter applies only to real property that is not exempt from forced sale under the constitution or laws of this state and is:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c29/s29.001/1">
<num value="1">(1)</num>
<chapeau>received by a person as a result of the death of another person:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c29/s29.001/A">
<num value="A">(A)</num>
<content>by inheritance;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c29/s29.001/B">
<num value="B">(B)</num>
<content>under a will;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c29/s29.001/C">
<num value="C">(C)</num>
<content>by a joint tenancy with a right of survivorship; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c29/s29.001/D">
<num value="D">(D)</num>
<content>by any other survivorship agreement in which the interest of the decedent passes to a surviving beneficiary other than an agreement between spouses for community property with a right of survivorship; or</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c29/s29.001/2">
<num value="2">(2)</num>
<chapeau>owned in part by a nonprofit organization that is exempt from federal income tax under Section 501(a), Internal Revenue Code of 1986, and its subsequent amendments, by being listed as an exempt organization under Section 501(c)(3), Internal Revenue Code of 1986, and its subsequent amendments, that:</chapeau>
<subparagraph identifier="/us/tx/pr/t4/c29/s29.001/A">
<num value="A">(A)</num>
<content>has been incorporated in this state for at least one year;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c29/s29.001/B">
<num value="B">(B)</num>
<content>has a corporate purpose to develop affordable housing that is stated in the articles of incorporation or charter;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c29/s29.001/C">
<num value="C">(C)</num>
<content>has at least one-fourth of its board of directors residing in the county in which the property is located; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t4/c29/s29.001/D">
<num value="D">(D)</num>
<content>engages primarily in the building, repair, rental, or sale of housing for low-income individuals or families.</content>
</subparagraph>
</paragraph>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 981, Sec. 1, eff. Aug. 28, 1995. Amended by Acts 2001, 77th Leg., ch. 891, Sec. 1, eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c29/s29.002">
<num value="29.002">Sec. 29.002.</num>
<heading>PETITION FOR FORCED SALE</heading>
<subsection identifier="/us/tx/pr/t4/c29/s29.002/a">
<num value="a">(a)</num>
<chapeau>A person, including a nonprofit organization, that owns an undivided interest in real property to which this chapter applies may file in the district court in a county in which the property is located a petition for a court order to require another owner of an undivided interest in that property to sell the other owner's interest in the property to the person if:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c29/s29.002/1">
<num value="1">(1)</num>
<content>the person has paid the other owner's share of ad valorem taxes imposed on the property for any three years in a five-year period or, in the case of a nonprofit organization, has paid the other owner's share of ad valorem taxes imposed on the property for any two years in a three-year period; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c29/s29.002/2">
<num value="2">(2)</num>
<content>the other owner has not reimbursed the person for more than half of the total amount paid by the person for the taxes on the owner's behalf.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c29/s29.002/b">
<num value="b">(b)</num>
<chapeau>The petition must contain:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c29/s29.002/1">
<num value="1">(1)</num>
<content>a description of the property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c29/s29.002/2">
<num value="2">(2)</num>
<content>the name of each known owner of the property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c29/s29.002/3">
<num value="3">(3)</num>
<content>the interest held by each known owner of the property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c29/s29.002/4">
<num value="4">(4)</num>
<content>the total amount paid by the petitioner for the defendant's share of ad valorem taxes imposed on the property; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c29/s29.002/5">
<num value="5">(5)</num>
<content>if applicable, the amount paid by the defendant to the petitioner to reimburse the petitioner for paying the defendant's share of ad valorem taxes imposed on the property.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 981, Sec. 1, eff. Aug. 28, 1995. Amended by Acts 2001, 77th Leg., ch. 891, Sec. 1, eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c29/s29.003">
<num value="29.003">Sec. 29.003.</num>
<heading>HEARING ON PETITION FOR FORCED SALE</heading>
<chapeau>At a hearing on a petition filed under Section 29.002, the petitioner must prove by clear and convincing evidence that:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c29/s29.003/1">
<num value="1">(1)</num>
<content>the petitioner has paid the defendant's share of ad valorem taxes imposed on the property that is the subject of the petition for any three years in a five-year period or, in the case of a nonprofit organization, the petitioner has paid the defendant's share of ad valorem taxes imposed on the property that is the subject of the petition for any two years in a three-year period;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c29/s29.003/2">
<num value="2">(2)</num>
<content>before the date on which the petition was filed the petitioner made a demand that the defendant reimburse the petitioner for the amount of the defendant's share of ad valorem taxes imposed on the property paid by the petitioner; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c29/s29.003/3">
<num value="3">(3)</num>
<content>the defendant has not reimbursed the petitioner more than half of the amount of money the petitioner paid on the defendant's behalf for the defendant's share of ad valorem taxes imposed on the property.</content>
</paragraph>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 981, Sec. 1, eff. Aug. 28, 1995. Amended by Acts 2001, 77th Leg., ch. 891, Sec. 1, eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c29/s29.0035">
<num value="29.0035">Sec. 29.0035.</num>
<heading>DEMAND TO UNKNOWN DEFENDANT</heading>
<chapeau>If the address or identity of the defendant is unknown, the demand of the petitioner for reimbursement from the defendant required by Section 29.003(2) may be met by publication in a newspaper in the county in which the property is located once each week for four consecutive weeks, with the final publication occurring not later than the 30th day before the date on which the petition is filed. The publication must contain the demand for reimbursement and:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c29/s29.0035/1">
<num value="1">(1)</num>
<content>a general description of the property involved;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c29/s29.0035/2">
<num value="2">(2)</num>
<content>the legal description of the property according to the survey of the property, including the number of the lot and block or any other plat description that may be of record if the property is located in a municipality;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c29/s29.0035/3">
<num value="3">(3)</num>
<content>the county in which the property is located;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c29/s29.0035/4">
<num value="4">(4)</num>
<content>the interest of the defendant; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c29/s29.0035/5">
<num value="5">(5)</num>
<content>the name and address of the petitioner.</content>
</paragraph>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 891, Sec. 2, eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c29/s29.004">
<num value="29.004">Sec. 29.004.</num>
<heading>COURT-ORDERED SALE</heading>
<content>On completion of the hearing on a petition filed under Section 29.002, if the court is satisfied that the petitioner has made the requisite proof under Section 29.003, the court shall enter an order that divests the defendant's interest in the real property that is the subject of the petition and that orders the petitioner to pay to the defendant an amount computed by subtracting the outstanding amount of money the defendant owes to the petitioner for payment of the defendant's share of ad valorem taxes imposed on the property from the fair market value of the defendant's interest in the property as determined by an independent appraiser appointed by the court. The court's order may also direct the defendant to execute and deliver to the petitioner a deed that conveys to the petitioner the defendant's interest in the property.</content>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 981, Sec. 1, eff. Aug. 28, 1995.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t4/c30">
<num value="30">CHAPTER 30.</num>
<heading>WRIT OF ASSISTANCE FOR REPOSSESSION OF AIRCRAFT</heading>
<section identifier="/us/tx/pr/t4/c30/s30.01">
<num value="30.01">Sec. 30.01.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c30/s30.01/1">
<num value="1">(1)</num>
<content>"Aircraft" means a self-propelled motor vehicle that can be used to transport a person by flight in the air.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c30/s30.01/2">
<num value="2">(2)</num>
<content>"Repossession" means the recovery of an aircraft that has been sold under a security agreement containing a repossession clause authorizing the lender to recover the aircraft if the borrower defaults under the agreement.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c30/s30.01/3">
<num value="3">(3)</num>
<content>"Repossession agent" means an individual who is authorized to engage in a repossession for a lender.</content>
</paragraph>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 1125 (H.B. 3901), Sec. 1, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c30/s30.02">
<num value="30.02">Sec. 30.02.</num>
<heading>WRIT OF ASSISTANCE FOR REPOSSESSION OF AIRCRAFT</heading>
<subsection identifier="/us/tx/pr/t4/c30/s30.02/a">
<num value="a">(a)</num>
<chapeau>A writ of assistance for the repossession of an aircraft authorizes a peace officer to assist and protect a repossession agent in gaining possession of the aircraft while the agent:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c30/s30.02/1">
<num value="1">(1)</num>
<content>secures the aircraft on site; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c30/s30.02/2">
<num value="2">(2)</num>
<content>prepares the aircraft, which may include a mechanical inspection, for removal from the site by flight or otherwise to another location.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c30/s30.02/b">
<num value="b">(b)</num>
<content>A writ of assistance for the repossession of an aircraft is valid for 30 days.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c30/s30.02/c">
<num value="c">(c)</num>
<content>A justice court may grant unlimited extensions of a writ of assistance issued under this chapter.</content>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 1125 (H.B. 3901), Sec. 1, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c30/s30.03">
<num value="30.03">Sec. 30.03.</num>
<heading>PETITION FOR WRIT OF ASSISTANCE</heading>
<subsection identifier="/us/tx/pr/t4/c30/s30.03/a">
<num value="a">(a)</num>
<content>A repossession agent may file a petition in a justice court for a writ of assistance for the repossession of an aircraft.</content>
</subsection>
<subsection identifier="/us/tx/pr/t4/c30/s30.03/b">
<num value="b">(b)</num>
<chapeau>The repossession agent is entitled to the writ if the repossession agent establishes that:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c30/s30.03/1">
<num value="1">(1)</num>
<content>the aircraft is subject to the proposed repossession; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c30/s30.03/2">
<num value="2">(2)</num>
<content>the repossession agent is authorized to engage in the repossession.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c30/s30.03/c">
<num value="c">(c)</num>
<chapeau>The petition for the writ must include a copy of:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c30/s30.03/1">
<num value="1">(1)</num>
<content>the security agreement relating to the aircraft;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c30/s30.03/2">
<num value="2">(2)</num>
<content>the notice of default under the security agreement sent by the lender to the borrower;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c30/s30.03/3">
<num value="3">(3)</num>
<content>the instrument in which a power of attorney for the repossession is granted to the repossession agent by the lender; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c30/s30.03/4">
<num value="4">(4)</num>
<content>the results of a title search of the Federal Aviation Administration's records for the aircraft.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 1125 (H.B. 3901), Sec. 1, eff. September 1, 2015.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t4/c31">
<num value="31">CHAPTER 31.</num>
<heading>BAD FAITH WASHOUT OF OVERRIDING ROYALTY INTEREST IN OIL AND GAS LEASE</heading>
<section identifier="/us/tx/pr/t4/c31/s31.001">
<num value="31.001">Sec. 31.001.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c31/s31.001/1">
<num value="1">(1)</num>
<content>"Bad faith" means the conscious taking of action for the purpose of washing out all or part of an overriding royalty interest.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c31/s31.001/2">
<num value="2">(2)</num>
<content>"Washout" means the elimination or reduction of an overriding royalty interest in an oil and gas lease by the forfeiture or surrender of the oil and gas lease by a lessee or the lessee's successors or assigns and the subsequent reacquisition of a lease, or all or part of the mineral estate associated with the lease, by the lessee or the lessee's successors, assigns, contractors, or subsidiaries on all or part of the same land, free of the overriding royalty interest.</content>
</paragraph>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 7 (H.B. 450), Sec. 1, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c31/s31.002">
<num value="31.002">Sec. 31.002.</num>
<heading>CAUSE OF ACTION FOR BAD FAITH WASHOUT</heading>
<chapeau>A person may bring a cause of action for a bad faith washout of the person's overriding royalty interest in an oil and gas lease. The person is entitled to a remedy under this chapter if the person proves by a preponderance of the evidence that:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c31/s31.002/1">
<num value="1">(1)</num>
<content>the person owned or had a legal right to the overriding royalty interest;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c31/s31.002/2">
<num value="2">(2)</num>
<content>the defendant had control over the oil and gas lease burdened by the overriding royalty interest;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c31/s31.002/3">
<num value="3">(3)</num>
<content>the defendant caused a washout of the person's overriding royalty interest; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c31/s31.002/4">
<num value="4">(4)</num>
<content>the defendant acted in bad faith by knowingly or intentionally causing the washout.</content>
</paragraph>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 7 (H.B. 450), Sec. 1, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c31/s31.003">
<num value="31.003">Sec. 31.003.</num>
<heading>VENUE</heading>
<content>An owner of an overriding royalty interest in an oil and gas lease may bring an action under this chapter in a district court of a county in which any part of the property subject to the oil and gas lease is located.</content>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 7 (H.B. 450), Sec. 1, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c31/s31.004">
<num value="31.004">Sec. 31.004.</num>
<heading>REMEDIES; COSTS AND FEES</heading>
<subsection identifier="/us/tx/pr/t4/c31/s31.004/a">
<num value="a">(a)</num>
<chapeau>An owner of an overriding royalty interest who prevails in an action under this chapter may recover:</chapeau>
<paragraph identifier="/us/tx/pr/t4/c31/s31.004/1">
<num value="1">(1)</num>
<content>actual damages;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c31/s31.004/2">
<num value="2">(2)</num>
<content>enforcement of a constructive trust on the oil and gas lease or mineral estate acquired to accomplish the washout of the overriding royalty interest; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t4/c31/s31.004/3">
<num value="3">(3)</num>
<content>court costs and attorney's fees.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t4/c31/s31.004/b">
<num value="b">(b)</num>
<content>The remedies provided by this chapter are cumulative of other remedies provided by common law or statute.</content>
</subsection>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 7 (H.B. 450), Sec. 1, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t4/c31/s31.005">
<num value="31.005">Sec. 31.005.</num>
<heading>LIMITATION ON FILING ACTION</heading>
<content>A person must bring an action under this chapter not later than the second anniversary of the date the person obtained actual knowledge that the washout occurred.</content>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 7 (H.B. 450), Sec. 1, eff. September 1, 2023.</sourceCredit>
</section>
</chapter>
<num value="5">TITLE 5.</num>
<heading>EXEMPT PROPERTY AND LIENS</heading>
<chapter identifier="/us/tx/pr/t5/c41">
<num value="41">CHAPTER 41.</num>
<heading>INTERESTS IN LAND</heading>
<subchapter identifier="/us/tx/pr/t5/c41/scA">
<num value="A">SUBCHAPTER A.</num>
<heading>EXEMPTIONS IN LAND DEFINED</heading>
<section identifier="/us/tx/pr/t5/c41/scA/s41.001">
<num value="41.001">Sec. 41.001.</num>
<heading>INTERESTS IN LAND EXEMPT FROM SEIZURE</heading>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.001/a">
<num value="a">(a)</num>
<content>A homestead and one or more lots used for a place of burial of the dead are exempt from seizure for the claims of creditors except for encumbrances properly fixed on homestead property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.001/b">
<num value="b">(b)</num>
<chapeau>Encumbrances may be properly fixed on homestead property for:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.001/1">
<num value="1">(1)</num>
<content>purchase money;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.001/2">
<num value="2">(2)</num>
<content>taxes on the property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.001/3">
<num value="3">(3)</num>
<content>work and material used in constructing improvements on the property if contracted for in writing as provided by Sections 53.254(a), (b), and (c);</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.001/4">
<num value="4">(4)</num>
<content>an owelty of partition imposed against the entirety of the property by a court order or by a written agreement of the parties to the partition, including a debt of one spouse in favor of the other spouse resulting from a division or an award of a family homestead in a divorce proceeding;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.001/5">
<num value="5">(5)</num>
<content>the refinance of a lien against a homestead, including a federal tax lien resulting from the tax debt of both spouses, if the homestead is a family homestead, or from the tax debt of the owner;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.001/6">
<num value="6">(6)</num>
<content>an extension of credit that meets the requirements of Section 50(a)(6), Article XVI, Texas Constitution; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.001/7">
<num value="7">(7)</num>
<content>a reverse mortgage that meets the requirements of Sections 50(k)-(p), Article XVI, Texas Constitution.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.001/c">
<num value="c">(c)</num>
<content>The homestead claimant's proceeds of a sale of a homestead are not subject to seizure for a creditor's claim for six months after the date of sale.</content>
</subsection>
<sourceCredit>Amended by Acts 1985, 69th Leg., ch. 840, Sec. 1, eff. June 15, 1985; Acts 1993, 73rd Leg., ch. 48, Sec. 2, eff. Sept. 1, 1993; Acts 1995, 74th Leg., ch. 121, Sec. 1.01, eff. May 17, 1995; Acts 1995, 74th Leg., ch. 121, Sec. 2.01; Acts 1997, 75th Leg., ch. 526, Sec. 1, eff. Sept. 1, 1997; Acts 2001, 77th Leg., ch. 516, Sec. 1, eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c41/scA/s41.002">
<num value="41.002">Sec. 41.002.</num>
<heading>DEFINITION OF HOMESTEAD</heading>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.002/a">
<num value="a">(a)</num>
<content>If used for the purposes of an urban home or as both an urban home and a place to exercise a calling or business, the homestead of a family or a single, adult person, not otherwise entitled to a homestead, shall consist of not more than 10 acres of land which may be in one or more contiguous lots, together with any improvements thereon.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.002/b">
<num value="b">(b)</num>
<chapeau>If used for the purposes of a rural home, the homestead shall consist of:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.002/1">
<num value="1">(1)</num>
<content>for a family, not more than 200 acres, which may be in one or more parcels, with the improvements thereon; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.002/2">
<num value="2">(2)</num>
<content>for a single, adult person, not otherwise entitled to a homestead, not more than 100 acres, which may be in one or more parcels, with the improvements thereon.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.002/c">
<num value="c">(c)</num>
<chapeau>A homestead is considered to be urban if, at the time the designation is made, the property is:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.002/1">
<num value="1">(1)</num>
<content>located within the limits of a municipality or its extraterritorial jurisdiction or a platted subdivision; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.002/2">
<num value="2">(2)</num>
<chapeau>served by police protection, paid or volunteer fire protection, and at least three of the following services provided by a municipality or under contract to a municipality:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c41/scA/s41.002/A">
<num value="A">(A)</num>
<content>electric;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c41/scA/s41.002/B">
<num value="B">(B)</num>
<content>natural gas;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c41/scA/s41.002/C">
<num value="C">(C)</num>
<content>sewer;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c41/scA/s41.002/D">
<num value="D">(D)</num>
<content>storm sewer; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c41/scA/s41.002/E">
<num value="E">(E)</num>
<content>water.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.002/d">
<num value="d">(d)</num>
<content>The definition of a homestead as provided in this section applies to all homesteads in this state whenever created.</content>
</subsection>
<sourceCredit>Amended by Acts 1985, 69th Leg., ch. 840, Sec. 1, eff. June 15, 1985; Acts 1989, 71st Leg., ch. 391, Sec. 2, eff. Aug. 28, 1989; Acts 1999, 76th Leg., ch. 1510, Sec. 1, eff. Jan. 1, 2000; Acts 1999, 76th Leg., ch. 1510, Sec. 2, eff. Sept. 1, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c41/scA/s41.0021">
<num value="41.0021">Sec. 41.0021.</num>
<heading>HOMESTEAD IN QUALIFYING TRUST</heading>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.0021/a">
<num value="a">(a)</num>
<chapeau>In this section, "qualifying trust" means an express trust:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.0021/1">
<num value="1">(1)</num>
<chapeau>in which the instrument or court order creating the express trust, an instrument transferring property to the trust, or any other agreement that is binding on the trustee provides that a settlor or beneficiary of the trust has the right to:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c41/scA/s41.0021/A">
<num value="A">(A)</num>
<content>revoke the trust without the consent of another person other than a spouse who is also a settlor of the trust;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c41/scA/s41.0021/B">
<num value="B">(B)</num>
<content>exercise an inter vivos general power of appointment over the property that qualifies for the homestead exemption, either alone or when aggregated with property subject to an inter vivos general power of appointment held by a spouse who is also a settlor of the trust; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c41/scA/s41.0021/C">
<num value="C">(C)</num>
<content>use and occupy the residential property as the settlor's or beneficiary's principal residence at no cost, or rent free and without charge, except for taxes and other costs and expenses specified in the instrument or court order:</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.0021/i">
<num value="i">(i)</num>
<chapeau>for the life of the settlor or beneficiary;</chapeau>
<clause identifier="/us/tx/pr/t5/c41/scA/s41.0021/ii">
<num value="ii">(ii)</num>
<content>for the shorter of the life of the settlor or beneficiary or a term of years specified in the instrument or court order; or</content>
</clause>
<clause identifier="/us/tx/pr/t5/c41/scA/s41.0021/iii">
<num value="iii">(iii)</num>
<content>until the date the trust is revoked or terminated by an instrument or court order that describes the property with sufficient certainty to identify the property and that is recorded in the real property records of the county in which the property is located; and</content>
</clause>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.0021/2">
<num value="2">(2)</num>
<chapeau>the trustee of which acquires the property in an instrument of title or under a court order that:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c41/scA/s41.0021/A">
<num value="A">(A)</num>
<content>describes the property with sufficient certainty to identify the property and the interest acquired; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c41/scA/s41.0021/B">
<num value="B">(B)</num>
<content>is recorded in the real property records of the county in which the property is located.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.0021/b">
<num value="b">(b)</num>
<content>Property that a settlor or beneficiary occupies and uses in a manner described by this subchapter and in which the settlor or beneficiary owns a beneficial interest through a qualifying trust is considered the homestead of the settlor or beneficiary under Section 50, Article XVI, Texas Constitution, and Section 41.001.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.0021/c">
<num value="c">(c)</num>
<content>A married person who transfers property to the trustee of a qualifying trust must comply with the requirements relating to the joinder of the person's spouse as provided by Chapter 5, Family Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.0021/d">
<num value="d">(d)</num>
<content>A trustee may sell, convey, or encumber property transferred as described by Subsection (c) without the joinder of either spouse unless expressly prohibited by the instrument or court order creating the trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.0021/e">
<num value="e">(e)</num>
<content>This section does not affect the rights of a surviving spouse or surviving children under Section 52, Article XVI, Texas Constitution, or Chapter 353, Estates Code.</content>
</subsection>
<sourceCredit>Added by Acts 2009, 81st Leg., R.S., Ch. 984 (H.B. 3767), Sec. 1, eff. September 1, 2009.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 846 (H.B. 2780), Sec. 12, eff. September 1, 2019.
Acts 2023, 88th Leg., R.S., Ch. 446 (H.B. 2196), Sec. 1, eff. June 9, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c41/scA/s41.0022">
<num value="41.0022">Sec. 41.0022.</num>
<heading>CERTAIN CONVEYANCES NOT SHAM OR PRETENDED SALES</heading>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.0022/a">
<num value="a">(a)</num>
<chapeau>In this section:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/1">
<num value="1">(1)</num>
<chapeau>"Entity" means a domestic or foreign:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/A">
<num value="A">(A)</num>
<content>corporation, professional corporation, or professional association;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/B">
<num value="B">(B)</num>
<content>limited liability company or professional limited liability company; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/C">
<num value="C">(C)</num>
<content>limited partnership.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/2">
<num value="2">(2)</num>
<content>"Parcel" means one or more parcels.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.0022/b">
<num value="b">(b)</num>
<chapeau>The conveyance of a parcel not meeting the definition of an urban homestead under Section 41.002(a) or (c) by an individual to an entity in which the individual or individual's spouse has a direct or indirect ownership interest is not a sham or pretended sale, including a pretended sale under Section 50(c), Article XVI, Texas Constitution, if:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/1">
<num value="1">(1)</num>
<content>the deed conveying the parcel is recorded at least 30 days before the entity grants a mortgage, trust deed, or other lien on the parcel;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/2">
<num value="2">(2)</num>
<content>the individual does not reside on the parcel at the time of the conveyance;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/3">
<num value="3">(3)</num>
<content>the parcel is not contiguous to the parcel on which the individual resides;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/4">
<num value="4">(4)</num>
<content>the deed conveying the parcel does not contain a condition of defeasance; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/5">
<num value="5">(5)</num>
<content>the individual recorded contemporaneously with the deed an affidavit substantially in the form prescribed by Subsection (d).</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.0022/c">
<num value="c">(c)</num>
<chapeau>An individual executing a deed under Subsection (b) is estopped from claiming that:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/1">
<num value="1">(1)</num>
<content>the conveyance is a sham or pretended sale, including a pretended sale under Section 50(c), Article XVI, Texas Constitution; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/2">
<num value="2">(2)</num>
<content>the individual had not abandoned homestead rights, if any, in the parcel by executing the deed.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.0022/d">
<num value="d">(d)</num>
<chapeau>At the time of recording a deed under Subsection (b), an individual grantor of the deed shall record an affidavit containing the following:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/1">
<num value="1">(1)</num>
<content>a title caption stating "Affidavit Regarding Conveyance To An Entity";</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/2">
<num value="2">(2)</num>
<content>the date of the affidavit;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/3">
<num value="3">(3)</num>
<chapeau>a description of the deed containing:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/A">
<num value="A">(A)</num>
<content>the title of the deed;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/B">
<num value="B">(B)</num>
<content>the date of the deed;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/C">
<num value="C">(C)</num>
<content>the name and address of the individual grantor; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/D">
<num value="D">(D)</num>
<content>the name and address of the entity grantee;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/4">
<num value="4">(4)</num>
<content>a description of the parcel being conveyed to the entity;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/5">
<num value="5">(5)</num>
<content>a description of the parcel upon which the individual currently resides;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/6">
<num value="6">(6)</num>
<content>a statement that the parcel being conveyed is not contiguous to the parcel upon which the individual currently resides;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/7">
<num value="7">(7)</num>
<chapeau>a statement that the parcel upon which the individual currently resides is not:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/A">
<num value="A">(A)</num>
<content>located within the limits of a municipality or its extraterritorial jurisdiction or a platted subdivision; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/B">
<num value="B">(B)</num>
<content>served by police protection, paid or volunteer fire protection, and at least three of the following services provided by a municipality or under contract to a municipality:</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.0022/i">
<num value="i">(i)</num>
<chapeau>electric;</chapeau>
<clause identifier="/us/tx/pr/t5/c41/scA/s41.0022/ii">
<num value="ii">(ii)</num>
<content>natural gas;</content>
</clause>
<clause identifier="/us/tx/pr/t5/c41/scA/s41.0022/iii">
<num value="iii">(iii)</num>
<content>sewer;</content>
</clause>
<clause identifier="/us/tx/pr/t5/c41/scA/s41.0022/iv">
<num value="iv">(iv)</num>
<content>storm sewer; or</content>
</clause>
</subsection>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.0022/v">
<num value="v">(v)</num>
<chapeau>water;</chapeau>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/8">
<num value="8">(8)</num>
<chapeau>a statement that:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/A">
<num value="A">(A)</num>
<content>the individual is unmarried; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/B">
<num value="B">(B)</num>
<content>the individual is married, and including the name of the individual's spouse;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/9">
<num value="9">(9)</num>
<content>a statement that the individual or individual's spouse owns a direct or indirect interest in the entity;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/10">
<num value="10">(10)</num>
<content>a statement that the individual has executed the deed conveying the parcel to the entity;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/11">
<num value="11">(11)</num>
<content>a statement that the individual intends to vest title in the entity;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/12">
<num value="12">(12)</num>
<content>a statement that there are no written or oral agreements regarding a defeasance of the parcel upon the passage of time or occurrence or non-occurrence of any event;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/13">
<num value="13">(13)</num>
<content>a statement that the individual acknowledges that the individual will be estopped from claiming the conveyance to the entity is a sham or pretended sale, including a pretended sale under Section 50(c), Article XVI, Texas Constitution;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/14">
<num value="14">(14)</num>
<content>a statement that the individual acknowledges that the individual will be estopped from claiming the individual had not abandoned homestead rights, if any, in the parcel by executing the deed;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/15">
<num value="15">(15)</num>
<content>a statement that the individual understands that if the parcel is valued for ad valorem tax purposes as qualified open-space land, the entity must reapply in its own name by the applicable filing deadline; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/16">
<num value="16">(16)</num>
<chapeau>a statement that the individual has had an opportunity:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/A">
<num value="A">(A)</num>
<content>to review the affidavit prior to the affidavit's execution; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/B">
<num value="B">(B)</num>
<content>to consult with an attorney before the affidavit's execution, whether or not the opportunity to consult with an attorney was exercised.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.0022/e">
<num value="e">(e)</num>
<chapeau>If the individual conveying a parcel under Subsection (b) is married, the individual's spouse must join in the execution of:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/1">
<num value="1">(1)</num>
<content>the deed; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.0022/2">
<num value="2">(2)</num>
<content>the affidavit described by Subsection (d).</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.0022/f">
<num value="f">(f)</num>
<content>The entity or a lender for value may conclusively rely on an affidavit described by Subsection (d).</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.0022/g">
<num value="g">(g)</num>
<content>Notwithstanding any other provision of this section, a transaction that does not meet the requirements of this section is not invalid if the homestead has been abandoned or disclaimed as provided by other provisions of law.</content>
</subsection>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 384 (H.B. 207), Sec. 1, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c41/scA/s41.003">
<num value="41.003">Sec. 41.003.</num>
<heading>TEMPORARY RENTING OF A HOMESTEAD</heading>
<content>Temporary renting of a homestead does not change its homestead character if the homestead claimant has not acquired another homestead.</content>
<sourceCredit>Amended by Acts 1985, 69th Leg., ch. 840, Sec. 1, eff. June 15, 1985.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c41/scA/s41.004">
<num value="41.004">Sec. 41.004.</num>
<heading>ABANDONMENT OF A HOMESTEAD</heading>
<content>If a homestead claimant is married, a homestead cannot be abandoned without the consent of the claimant's spouse.</content>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 840, Sec. 1, eff. June 15, 1985.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c41/scA/s41.005">
<num value="41.005">Sec. 41.005.</num>
<heading>VOLUNTARY DESIGNATION OF HOMESTEAD</heading>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.005/a">
<num value="a">(a)</num>
<content>If a rural homestead of a family is part of one or more parcels containing a total of more than 200 acres, the head of the family and, if married, that person's spouse may voluntarily designate not more than 200 acres of the property as the homestead. If a rural homestead of a single adult person, not otherwise entitled to a homestead, is part of one or more parcels containing a total of more than 100 acres, the person may voluntarily designate not more than 100 acres of the property as the homestead.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.005/b">
<num value="b">(b)</num>
<content>If an urban homestead of a family, or an urban homestead of a single adult person not otherwise entitled to a homestead, is part of one or more contiguous lots containing a total of more than 10 acres, the head of the family and, if married, that person's spouse or the single adult person, as applicable, may voluntarily designate not more than 10 acres of the property as the homestead.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.005/c">
<num value="c">(c)</num>
<chapeau>Except as provided by Subsection (e) or Subchapter B, to designate property as a homestead, a person or persons, as applicable, must make the designation in an instrument that is signed and acknowledged or proved in the manner required for the recording of other instruments. The person or persons must file the designation with the county clerk of the county in which all or part of the property is located. The clerk shall record the designation in the county deed records. The designation must contain:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.005/1">
<num value="1">(1)</num>
<content>a description sufficient to identify the property designated;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.005/2">
<num value="2">(2)</num>
<content>a statement by the person or persons who executed the instrument that the property is designated as the homestead of the person's family or as the homestead of a single adult person not otherwise entitled to a homestead;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.005/3">
<num value="3">(3)</num>
<content>the name of the current record title holder of the property; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.005/4">
<num value="4">(4)</num>
<content>for a rural homestead, the number of acres designated and, if there is more than one survey, the number of acres in each.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.005/d">
<num value="d">(d)</num>
<content>A person or persons, as applicable, may change the boundaries of a homestead designated under Subsection (c) by executing and recording an instrument in the manner required for a voluntary designation under that subsection. A change under this subsection does not impair rights acquired by a party before the change.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.005/e">
<num value="e">(e)</num>
<content>Except as otherwise provided by this subsection, property on which a person receives an exemption from taxation under Section 11.43, Tax Code, is considered to have been designated as the person's homestead for purposes of this subchapter if the property is listed as the person's residence homestead on the most recent appraisal roll for the appraisal district established for the county in which the property is located. If a person designates property as a homestead under Subsection (c) or Subchapter B and a different property is considered to have been designated as the person's homestead under this subsection, the designation under Subsection (c) or Subchapter B, as applicable, prevails for purposes of this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.005/f">
<num value="f">(f)</num>
<content>If a person or persons, as applicable, have not made a voluntary designation of a homestead under this section as of the time a writ of execution is issued against the person, any designation of the person's or persons' homestead must be made in accordance with Subchapter B.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.005/g">
<num value="g">(g)</num>
<content>An instrument that made a voluntary designation of a homestead in accordance with prior law and that is on file with the county clerk on September 1, 1987, is considered a voluntary designation of a homestead under this section.</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 727, Sec. 1, eff. Aug. 31, 1987. Amended by Acts 1993, 73rd Leg., ch. 48, Sec. 3, eff. Sept. 1, 1993; Acts 1993, 73rd Leg., ch. 297, Sec. 1, eff. Aug. 1, 1993; Acts 1997, 75th Leg., ch. 846, Sec. 1, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 1510, Sec. 3, eff. Jan. 1, 2000.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c41/scA/s41.0051">
<num value="41.0051">Sec. 41.0051.</num>
<heading>DISCLAIMER AND DISCLOSURE REQUIRED</heading>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.0051/a">
<num value="a">(a)</num>
<content>A person may not deliver a written advertisement offering, for a fee, to designate property as a homestead as provided by Section 41.005 unless there is a disclaimer on the advertisement that is conspicuous and printed in 14-point boldface type or 14-point uppercase typewritten letters that makes the following statement or a substantially similar statement:</content>
</subsection>
<sourceCredit>THIS DOCUMENT IS AN ADVERTISEMENT OF SERVICES. IT IS NOT AN OFFICIAL DOCUMENT OF THE STATE OF TEXAS.
(b) A person who solicits solely by mail or by telephone a homeowner to pay a fee for the service of applying for a property tax refund from a tax appraisal district or other governmental body on behalf of the homeowner shall, before accepting money from the homeowner or signing a contract with the homeowner for the person's services, disclose to the homeowner the name of the tax appraisal district or other governmental body that owes the homeowner a refund.
(c) A person's failure to provide a disclaimer on an advertisement as required by Subsection (a) or to provide the disclosure required by Subsection (b) is considered a false, misleading, or deceptive act or practice for purposes of Section 17.46(a), Business & Commerce Code, and is subject to action by the consumer protection division of the attorney general's office as provided by Section 17.46(a), Business & Commerce Code.
Added by Acts 2001, 77th Leg., ch. 341, Sec. 1, eff. Sept. 1, 2001. Amended by Acts 2003, 78th Leg., ch. 1191, Sec. 1, 2, eff. Sept. 1, 2003.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c41/scA/s41.006">
<num value="41.006">Sec. 41.006.</num>
<heading>CERTAIN SALES OF HOMESTEAD</heading>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.006/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (c), any sale or purported sale in whole or in part of a homestead at a fixed purchase price that is less than the appraised fair market value of the property at the time of the sale or purported sale, and in connection with which the buyer of the property executes a lease of the property to the seller at lease payments that exceed the fair rental value of the property, is considered to be a loan with all payments made from the seller to the buyer in excess of the sales price considered to be interest subject to Title 4, Finance Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.006/b">
<num value="b">(b)</num>
<content>The taking of any deed in connection with a transaction described by this section is a deceptive trade practice under Subchapter E, Chapter 17, Business & Commerce Code, and the deed is void and no lien attaches to the homestead property as a result of the purported sale.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.006/c">
<num value="c">(c)</num>
<content>This section does not apply to the sale of a family homestead to a parent, stepparent, grandparent, child, stepchild, brother, half brother, sister, half sister, or grandchild of an adult member of the family.</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 1130, Sec. 1, eff. Sept. 1, 1987. Amended by Acts 1999, 76th Leg., ch. 62, Sec. 7.84, eff. Sept. 1, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c41/scA/s41.007">
<num value="41.007">Sec. 41.007.</num>
<heading>HOME IMPROVEMENT CONTRACT</heading>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.007/a">
<num value="a">(a)</num>
<chapeau>A contract for improvements to an existing residence described by Section 41.001(b)(3) must contain:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.007/1">
<num value="1">(1)</num>
<content>the contractor's certificate of registration number from the Texas Residential Construction Commission if the contractor is required to register as a builder with the commission;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.007/2">
<num value="2">(2)</num>
<content>the address and telephone number at which the owner may file a complaint with the Texas Residential Construction Commission about the conduct of the contractor if the contractor is required to register as a builder with the commission; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c41/scA/s41.007/3">
<num value="3">(3)</num>
<content>the following warning conspicuously printed, stamped, or typed in a size equal to at least 10-point bold type or computer equivalent:</content>
<continuation>"IMPORTANT NOTICE: You and your contractor are responsible for meeting the terms and conditions of this contract. If you sign this contract and you fail to meet the terms and conditions of this contract, you may lose your legal ownership rights in your home. KNOW YOUR RIGHTS AND DUTIES UNDER THE LAW."</continuation>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.007/b">
<num value="b">(b)</num>
<content>A violation of Subsection (a) of this section is a false, misleading, or deceptive act or practice within the meaning of Section 17.46, Business & Commerce Code, and is actionable in a public or private suit brought under the provisions of the Deceptive Trade Practices-Consumer Protection Act (Subchapter E, Chapter 17, Business & Commerce Code).</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.007/c">
<num value="c">(c)</num>
<content>A provision of a contract for improvements to an existing residence described by Section 41.001(b)(3) that requires the parties to submit a dispute arising under the contract to binding arbitration must be conspicuously printed or typed in a size equal to at least 10-point bold type or the computer equivalent.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c41/scA/s41.007/d">
<num value="d">(d)</num>
<content>A provision described by Subsection (c) is not enforceable against the owner unless the requirements of Subsection (c) are met.</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 116, Sec. 1, eff. Sept. 1, 1987. Renumbered from Sec. 41.005 by Acts 1989, 71st Leg., ch. 2, Sec. 16.01(30), eff. Aug. 28, 1989. Amended by Acts 1993, 73rd Leg., ch. 48, Sec. 4, eff. Sept. 1, 1993.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 843 (H.B. 1038), Sec. 5, eff. September 1, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c41/scA/s41.008">
<num value="41.008">Sec. 41.008.</num>
<heading>CONFLICT WITH FEDERAL LAW</heading>
<content>To the extent of any conflict between this subchapter and any federal law that imposes an upper limit on the amount, including the monetary amount or acreage amount, of homestead property a person may exempt from seizure, this subchapter prevails to the extent allowed under federal law.</content>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1510, Sec. 4.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t5/c41/scB">
<num value="B">SUBCHAPTER B.</num>
<heading>DESIGNATION OF A HOMESTEAD IN AID OF ENFORCEMENT OF A JUDGMENT DEBT</heading>
<section identifier="/us/tx/pr/t5/c41/scB/s41.021">
<num value="41.021">Sec. 41.021.</num>
<heading>NOTICE TO DESIGNATE</heading>
<content>If an execution is issued against a holder of an interest in land of which a homestead may be a part and the judgment debtor has not made a voluntary designation of a homestead under Section 41.005, the judgment creditor may give the judgment debtor notice to designate the homestead as defined in Section 41.002. The notice shall state that if the judgment debtor fails to designate the homestead within the time allowed by Section 41.022, the court will appoint a commissioner to make the designation at the expense of the judgment debtor.</content>
<sourceCredit>Amended by Acts 1985, 69th Leg., ch. 840, Sec. 1, eff. June 15, 1985; Acts 1987, 70th Leg., ch. 727, Sec. 2, eff. Aug. 31, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c41/scB/s41.022">
<num value="41.022">Sec. 41.022.</num>
<heading>DESIGNATION BY HOMESTEAD CLAIMANT</heading>
<content>At any time before 10 a.m. on the Monday next after the expiration of 20 days after the date of service of the notice to designate, the judgment debtor may designate the homestead as defined in Section 41.002 by filing a written designation, signed by the judgment debtor, with the justice or clerk of the court from which the writ of execution was issued, together with a plat of the area designated.</content>
<sourceCredit>Amended by Acts 1985, 69th Leg., ch. 840, Sec. 1, eff. June 15, 1985.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c41/scB/s41.023">
<num value="41.023">Sec. 41.023.</num>
<heading>DESIGNATION BY COMMISSIONER</heading>
<subsection identifier="/us/tx/pr/t5/c41/scB/s41.023/a">
<num value="a">(a)</num>
<content>If a judgment debtor who has not made a voluntary designation of a homestead under Section 41.005 does not designate a homestead as provided in Section 41.022, on motion of the judgment creditor, filed within 90 days after the issuance of the writ of execution, the court from which the writ of execution issued shall appoint a commissioner to designate the judgment debtor's homestead. The court may appoint a surveyor and others as may be necessary to assist the commissioner. The commissioner shall file his designation of the judgment debtor's homestead in a written report, together with a plat of the area designated, with the justice or clerk of the court not more than 60 days after the order of appointment is signed or within such time as the court may allow.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c41/scB/s41.023/b">
<num value="b">(b)</num>
<content>Within 10 days after the commissioner's report is filed, the judgment debtor or the judgment creditor may request a hearing on the issue of whether the report should be confirmed, rejected, or modified as may be deemed appropriate in the particular circumstances of the case. The commissioner's report may be contradicted by evidence from either party, when exceptions to it or any item thereof have been filed before the hearing, but not otherwise. After the hearing, or if there is no hearing requested, the court shall designate the homestead as deemed appropriate and order sale of the excess.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c41/scB/s41.023/c">
<num value="c">(c)</num>
<content>The commissioner, a surveyor, and others appointed to assist the commissioner are entitled to such fees and expenses as are deemed reasonable by the court. The court shall tax these fees and expenses against the judgment debtor as part of the costs of execution.</content>
</subsection>
<sourceCredit>Amended by Acts 1985, 69th Leg., ch. 840, Sec. 1, eff. June 15, 1985; Acts 1987, 70th Leg., ch. 727, Sec. 3, eff. Aug. 31, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c41/scB/s41.024">
<num value="41.024">Sec. 41.024.</num>
<heading>SALE OF EXCESS</heading>
<content>An officer holding an execution sale of property of a judgment debtor whose homestead has been designated under this chapter may sell the excess of the judgment debtor's interest in land not included in the homestead.</content>
<sourceCredit>Amended by Acts 1985, 69th Leg., ch. 840, Sec. 1, eff. June 15, 1985; Acts 1987, 70th Leg., ch. 727, Sec. 4, eff. Aug. 31, 1987.</sourceCredit>
</section>
</subchapter>
</chapter>
<chapter identifier="/us/tx/pr/t5/c42">
<num value="42">CHAPTER 42.</num>
<heading>PERSONAL PROPERTY</heading>
<section identifier="/us/tx/pr/t5/c42/s42.001">
<num value="42.001">Sec. 42.001.</num>
<heading>PERSONAL PROPERTY EXEMPTION</heading>
<subsection identifier="/us/tx/pr/t5/c42/s42.001/a">
<num value="a">(a)</num>
<chapeau>Personal property, as described in Section 42.002, is exempt from garnishment, attachment, execution, or other seizure if:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c42/s42.001/1">
<num value="1">(1)</num>
<content>the property is provided for a family and has an aggregate fair market value of not more than $100,000, exclusive of the amount of any liens, security interests, or other charges encumbering the property; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c42/s42.001/2">
<num value="2">(2)</num>
<content>the property is owned by a single adult, who is not a member of a family, and has an aggregate fair market value of not more than $50,000, exclusive of the amount of any liens, security interests, or other charges encumbering the property.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c42/s42.001/b">
<num value="b">(b)</num>
<chapeau>The following personal property is exempt from seizure and is not included in the aggregate limitations prescribed by Subsection (a):</chapeau>
<paragraph identifier="/us/tx/pr/t5/c42/s42.001/1">
<num value="1">(1)</num>
<content>current wages for personal services, except for the enforcement of court-ordered child support payments;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c42/s42.001/2">
<num value="2">(2)</num>
<content>professionally prescribed health aids of a debtor or a dependent of a debtor;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c42/s42.001/3">
<num value="3">(3)</num>
<content>alimony, support, or separate maintenance received or to be received by the debtor for the support of the debtor or a dependent of the debtor; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c42/s42.001/4">
<num value="4">(4)</num>
<content>a religious bible or other book containing sacred writings of a religion that is seized by a creditor other than a lessor of real property who is exercising the lessor's contractual or statutory right to seize personal property after a tenant breaches a lease agreement for or abandons the real property.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c42/s42.001/c">
<num value="c">(c)</num>
<content>Except as provided by Subsection (b)(4), this section does not prevent seizure by a secured creditor with a contractual landlord's lien or other security in the property to be seized.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c42/s42.001/d">
<num value="d">(d)</num>
<content>Unpaid commissions for personal services not to exceed 25 percent of the aggregate limitations prescribed by Subsection (a) are exempt from seizure and are included in the aggregate.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c42/s42.001/e">
<num value="e">(e)</num>
<content>A religious bible or other book described by Subsection (b)(4) that is seized by a lessor of real property in the exercise of the lessor's contractual or statutory right to seize personal property after a tenant breaches a lease agreement for the real property or abandons the real property may not be included in the aggregate limitations prescribed by Subsection (a).</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3522, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1991, 72nd Leg., ch. 175, Sec. 1, eff. May 24, 1991; Acts 1997, 75th Leg., ch. 1046, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 444 (H.B. 167), Sec. 1, eff. September 1, 2007.
Acts 2015, 84th Leg., R.S., Ch. 793 (H.B. 2706), Sec. 1, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c42/s42.002">
<num value="42.002">Sec. 42.002.</num>
<heading>PERSONAL PROPERTY</heading>
<subsection identifier="/us/tx/pr/t5/c42/s42.002/a">
<num value="a">(a)</num>
<chapeau>The following personal property is exempt under Section 42.001(a):</chapeau>
<paragraph identifier="/us/tx/pr/t5/c42/s42.002/1">
<num value="1">(1)</num>
<content>home furnishings, including family heirlooms;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c42/s42.002/2">
<num value="2">(2)</num>
<content>provisions for consumption;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c42/s42.002/3">
<num value="3">(3)</num>
<content>farming or ranching vehicles and implements;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c42/s42.002/4">
<num value="4">(4)</num>
<content>tools, equipment, books, and apparatus, including boats and motor vehicles used in a trade or profession;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c42/s42.002/5">
<num value="5">(5)</num>
<content>wearing apparel;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c42/s42.002/6">
<num value="6">(6)</num>
<content>jewelry not to exceed 25 percent of the aggregate limitations prescribed by Section 42.001(a);</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c42/s42.002/7">
<num value="7">(7)</num>
<content>two firearms;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c42/s42.002/8">
<num value="8">(8)</num>
<content>athletic and sporting equipment, including bicycles;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c42/s42.002/9">
<num value="9">(9)</num>
<content>a two-wheeled, three-wheeled, or four-wheeled motor vehicle for each member of a family or single adult who holds a driver's license or who does not hold a driver's license but who relies on another person to operate the vehicle for the benefit of the nonlicensed person;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c42/s42.002/10">
<num value="10">(10)</num>
<chapeau>the following animals and forage on hand for their consumption:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c42/s42.002/A">
<num value="A">(A)</num>
<content>two horses, mules, or donkeys and a saddle, blanket, and bridle for each;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c42/s42.002/B">
<num value="B">(B)</num>
<content>12 head of cattle;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c42/s42.002/C">
<num value="C">(C)</num>
<content>60 head of other types of livestock; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c42/s42.002/D">
<num value="D">(D)</num>
<content>120 fowl; and</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c42/s42.002/11">
<num value="11">(11)</num>
<content>household pets.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c42/s42.002/b">
<num value="b">(b)</num>
<content>Personal property, unless precluded from being encumbered by other law, may be encumbered by a security interest under Subchapter B, Chapter 9, Business & Commerce Code, or Subchapter F, Chapter 501, Transportation Code, or by a lien fixed by other law, and the security interest or lien may not be avoided on the ground that the property is exempt under this chapter.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3522, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1991, 72nd Leg., ch. 175, Sec. 1, eff. May 24, 1991; Acts 1993, 73rd Leg., ch. 216, Sec. 1, eff. May, 17, 1993; Acts 1997, 75th Leg., ch. 165, Sec. 30.245, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 414, Sec. 2.36, eff. July 1, 2001; Acts 1999, 76th Leg., ch. 846, Sec. 1, eff. Aug. 30, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c42/s42.0021">
<num value="42.0021">Sec. 42.0021.</num>
<heading>ADDITIONAL EXEMPTION FOR CERTAIN SAVINGS PLANS</heading>
<subsection identifier="/us/tx/pr/t5/c42/s42.0021/a">
<num value="a">(a)</num>
<chapeau>In this section, "qualified savings plan" means any stock bonus, pension, annuity, deferred compensation, profit-sharing, health, education, or similar plan or account, to the extent the plan or account is exempt from federal income tax or to the extent federal income tax on a person's interest in the plan or account is deferred until actual payment of benefits to the person. A plan or account that is subject to federal income tax is considered to be exempt from federal income tax for purposes of this section if the plan or account is subject to the tax solely under Sections 511 through 514, Internal Revenue Code of 1986. The term includes:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c42/s42.0021/1">
<num value="1">(1)</num>
<content>a retirement plan sponsored by a private employer, government, or church;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c42/s42.0021/2">
<num value="2">(2)</num>
<content>a retirement plan for self-employed individuals;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c42/s42.0021/3">
<num value="3">(3)</num>
<content>a simplified employee pension plan;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c42/s42.0021/4">
<num value="4">(4)</num>
<content>an individual retirement account or annuity, including an inherited individual retirement account or annuity;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c42/s42.0021/5">
<num value="5">(5)</num>
<content>a Roth IRA, including an inherited Roth IRA;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c42/s42.0021/6">
<num value="6">(6)</num>
<content>a health savings account;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c42/s42.0021/7">
<num value="7">(7)</num>
<content>a Coverdell education savings account;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c42/s42.0021/8">
<num value="8">(8)</num>
<content>a plan or account established under Subchapter F, Chapter 54, Education Code, including a prepaid tuition contract;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c42/s42.0021/9">
<num value="9">(9)</num>
<content>a plan or account established under Subchapter G, Chapter 54, Education Code, including a savings trust account;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c42/s42.0021/10">
<num value="10">(10)</num>
<content>a qualified tuition program of any state that meets the requirements of Section 529, Internal Revenue Code of 1986;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c42/s42.0021/11">
<num value="11">(11)</num>
<content>a qualified ABLE program of any state that meets the requirements of Section 529A, Internal Revenue Code of 1986; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c42/s42.0021/12">
<num value="12">(12)</num>
<content>an annuity or similar contract purchased with assets distributed from a plan or account described by this subsection.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c42/s42.0021/b">
<num value="b">(b)</num>
<content>In addition to the exemption prescribed by Section 42.001 and except as provided by this section, a person's interest in and right to receive payments from a qualified savings plan, whether vested or not, is exempt from attachment, execution, and seizure for the satisfaction of debts.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c42/s42.0021/c">
<num value="c">(c)</num>
<content>An interest or right in a qualified savings plan that was acquired by reason of the death of another person, whether as an owner, participant, beneficiary, survivor, coannuitant, heir, or legatee, is exempt to the same extent that the interest or right of the decedent was exempt on the date of the decedent's death.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c42/s42.0021/d">
<num value="d">(d)</num>
<content>Contributions to a qualified savings plan that are excess contributions under Section 4973, Internal Revenue Code of 1986, and any accrued earnings on such contributions are not exempt under this section unless otherwise exempt by law.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c42/s42.0021/e">
<num value="e">(e)</num>
<content>Amounts distributed from a qualified savings plan are exempt from attachment, execution, and seizure for a creditor's claim for 60 days after the date of distribution. If the amounts qualify as a rollover contribution under the Internal Revenue Code of 1986, whether taxable or nontaxable, the amounts will continue to be exempt thereafter under this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c42/s42.0021/f">
<num value="f">(f)</num>
<content>A person's interest in a retirement plan that is solely an unfunded, unsecured promise by an employer to pay deferred compensation is not exempt under this section unless otherwise exempt by law.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c42/s42.0021/g">
<num value="g">(g)</num>
<content>A person is not prohibited by this section from granting a valid and enforceable security interest in the person's interest in or right to receive payments from a qualified savings plan to the extent permitted by, and in accordance with, the Internal Revenue Code of 1986 and the terms of the qualified savings plan to secure a loan to the person from the qualified savings plan. The person's interest in or right to receive payments from the plan is subject to attachment, execution, and seizure for the satisfaction of the security interest or lien granted by the person to secure the loan.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c42/s42.0021/h">
<num value="h">(h)</num>
<content>If any provision of this section is held invalid or preempted by federal law, in whole or in part or in certain circumstances, the remaining provisions of this section remain in effect, to the maximum extent permitted by law.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c42/s42.0021/i">
<num value="i">(i)</num>
<content>A reference in this section to the Internal Revenue Code of 1986 or a specific provision of the Internal Revenue Code of 1986 includes a subsequent amendment of that code or of the substance of that provision.</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 376, Sec. 1, eff. Sept. 1, 1987. Amended by Acts 1989, 71st Leg., ch. 1122, Sec. 1, eff. Sept. 1, 1989; Acts 1995, 74th Leg., ch. 963, Sec. 1, eff. Aug. 28, 1995; Acts 1999, 76th Leg., ch. 106, Sec. 1, eff. Sept. 1, 1999.
Amended by:
Acts 2005, 79th Leg., Ch. 130 (H.B. 330), Sec. 2, eff. May 24, 2005.
Acts 2011, 82nd Leg., R.S., Ch. 933 (S.B. 1810), Sec. 1, eff. June 17, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 91 (S.B. 649), Sec. 2, eff. September 1, 2013.
Acts 2019, 86th Leg., R.S., Ch. 320 (H.B. 2779), Sec. 1, eff. September 1, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c42/s42.003">
<num value="42.003">Sec. 42.003.</num>
<heading>DESIGNATION OF EXEMPT PROPERTY</heading>
<subsection identifier="/us/tx/pr/t5/c42/s42.003/a">
<num value="a">(a)</num>
<content>If the number or amount of a type of personal property owned by a debtor exceeds the exemption allowed by Section 42.002 and the debtor can be found in the county where the property is located, the officer making a levy on the property shall ask the debtor to designate the personal property to be levied on. If the debtor cannot be found in the county or the debtor fails to make a designation within a reasonable time after the officer's request, the officer shall make the designation.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c42/s42.003/b">
<num value="b">(b)</num>
<content>If the aggregate value of a debtor's personal property exceeds the amount exempt from seizure under Section 42.001(a), the debtor may designate the portion of the property to be levied on. If, after a court's request, the debtor fails to make a designation within a reasonable time or if for any reason a creditor contests that the property is exempt, the court shall make the designation.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3524, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1991, 72nd Leg., ch. 175, Sec. 1, eff. May 24, 1991.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c42/s42.004">
<num value="42.004">Sec. 42.004.</num>
<heading>TRANSFER OF NONEXEMPT PROPERTY</heading>
<subsection identifier="/us/tx/pr/t5/c42/s42.004/a">
<num value="a">(a)</num>
<content>If a person uses the property not exempt under this chapter to acquire, obtain an interest in, make improvement to, or pay an indebtedness on personal property which would be exempt under this chapter with the intent to defraud, delay, or hinder an interested person from obtaining that to which the interested person is or may be entitled, the property, interest, or improvement acquired is not exempt from seizure for the satisfaction of liabilities. If the property, interest, or improvement is acquired by discharging an encumbrance held by a third person, a person defrauded, delayed, or hindered is subrogated to the rights of the third person.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c42/s42.004/b">
<num value="b">(b)</num>
<content>A creditor may not assert a claim under this section more than two years after the transaction from which the claim arises. A person with a claim that is unliquidated or contingent at the time of the transaction may not assert a claim under this section more than one year after the claim is reduced to judgment.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c42/s42.004/c">
<num value="c">(c)</num>
<content>It is a defense to a claim under this section that the transfer was made in the ordinary course of business by the person making the transfer.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3524, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1991, 72nd Leg., ch. 175, Sec. 1, eff. May 24, 1991.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c42/s42.005">
<num value="42.005">Sec. 42.005.</num>
<heading>CHILD SUPPORT LIENS</heading>
<subsection identifier="/us/tx/pr/t5/c42/s42.005/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (b), Sections 42.001, 42.002, and 42.0021 do not apply to a child support lien established under Subchapter G, Chapter 157, Family Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c42/s42.005/b">
<num value="b">(b)</num>
<content>The exemption from attachment, execution, and seizure for the satisfaction of debts provided under Section 42.0021 for a plan or account described by Section 42.0021(a)(8), (9), or (10) applies to a child support lien established under Subchapter G, Chapter 157, Family Code.</content>
</subsection>
<sourceCredit>Added by Acts 1991, 72nd Leg., 1st C.S., ch. 15, Sec. 4.07, eff. Sept. 1, 1991. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 7.56, eff. Sept. 1, 1997.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 320 (H.B. 2779), Sec. 2, eff. September 1, 2019.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t5/c43">
<num value="43">CHAPTER 43.</num>
<heading>EXEMPT PUBLIC PROPERTY</heading>
<section identifier="/us/tx/pr/t5/c43/s43.001">
<num value="43.001">Sec. 43.001.</num>
<heading>EXEMPT PUBLIC LIBRARY</heading>
<content>A public library is exempt from attachment, execution, and forced sale.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3525, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c43/s43.002">
<num value="43.002">Sec. 43.002.</num>
<heading>EXEMPT PROPERTY</heading>
<content>The real property of the state, including the real property held in the name of state agencies and funds, and the real property of a political subdivision of the state are exempt from attachment, execution, and forced sale. A judgment lien or abstract of judgment may not be filed or perfected against the state, a unit of state government, or a political subdivision of the state on property owned by the state, a unit of state government, or a political subdivision of the state; any such judgment lien or abstract of judgment is void and unenforceable.</content>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 159, Sec. 1, eff. May 20, 1997.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t5/c44">
<num value="44">CHAPTER 44.</num>
<heading>TAXATION OF RETIREMENT BENEFITS BY ANOTHER STATE</heading>
<section identifier="/us/tx/pr/t5/c44/s44.001">
<num value="44.001">Sec. 44.001.</num>
<heading>DEFINITION</heading>
<chapeau>In this chapter, "pension or other retirement plan" includes:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c44/s44.001/1">
<num value="1">(1)</num>
<content>an annuity, pension, or profit-sharing or stock bonus or similar plan established to provide retirement benefits for an officer or employee of a public or private employer or for a self-employed individual;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c44/s44.001/2">
<num value="2">(2)</num>
<content>an annuity, pension, or military retirement pay plan or other retirement plan administered by the United States; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c44/s44.001/3">
<num value="3">(3)</num>
<content>an individual retirement account.</content>
</paragraph>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 95, Sec. 1, eff. May 7, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c44/s44.002">
<num value="44.002">Sec. 44.002.</num>
<heading>PROPERTY EXEMPT</heading>
<content>All property in this state is exempt from attachment, execution, and seizure for the satisfaction of a judgment or claim in favor of another state or political subdivision of another state for failure to pay that state's or that political subdivision's income tax on benefits received from a pension or other retirement plan.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 95, Sec. 1, eff. May 7, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c44/s44.003">
<num value="44.003">Sec. 44.003.</num>
<heading>LIEN NOT CREATED</heading>
<content>A claim or judgment in favor of another state or political subdivision of another state for failure to pay that state's or that political subdivision's income tax on benefits received from a pension or other retirement plan may not be a lien on any property in this state owned by a resident of this state.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 95, Sec. 1, eff. May 7, 1993.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t5/c51">
<num value="51">CHAPTER 51.</num>
<heading>PROVISIONS GENERALLY APPLICABLE TO LIENS</heading>
<section identifier="/us/tx/pr/t5/c51/s51.0001">
<num value="51.0001">Sec. 51.0001.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c51/s51.0001/1">
<num value="1">(1)</num>
<content>"Book entry system" means a national book entry system for registering a beneficial interest in a security instrument that acts as a nominee for the grantee, beneficiary, owner, or holder of the security instrument and its successors and assigns.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.0001/2">
<num value="2">(2)</num>
<chapeau>"Debtor's last known address" means:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c51/s51.0001/A">
<num value="A">(A)</num>
<content>for a debt secured by the debtor's residence, the debtor's residence address unless the debtor provided the mortgage servicer a written change of address before the date the mortgage servicer mailed a notice required by Section 51.002; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c51/s51.0001/B">
<num value="B">(B)</num>
<content>for a debt other than a debt described by Paragraph (A), the debtor's last known address as shown by the records of the mortgage servicer of the security instrument unless the debtor provided the current mortgage servicer a written change of address before the date the mortgage servicer mailed a notice required by Section 51.002.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.0001/3">
<num value="3">(3)</num>
<content>"Mortgage servicer" means the last person to whom a mortgagor has been instructed by the current mortgagee to send payments for the debt secured by a security instrument. A mortgagee may be the mortgage servicer.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.0001/4">
<num value="4">(4)</num>
<chapeau>"Mortgagee" means:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c51/s51.0001/A">
<num value="A">(A)</num>
<content>the grantee, beneficiary, owner, or holder of a security instrument;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c51/s51.0001/B">
<num value="B">(B)</num>
<content>a book entry system; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c51/s51.0001/C">
<num value="C">(C)</num>
<content>if the security interest has been assigned of record, the last person to whom the security interest has been assigned of record.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.0001/5">
<num value="5">(5)</num>
<content>"Mortgagor" means the grantor of a security instrument.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.0001/6">
<num value="6">(6)</num>
<content>"Security instrument" means a deed of trust, mortgage, or other contract lien on an interest in real property.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.0001/7">
<num value="7">(7)</num>
<content>"Substitute trustee" means an individual, corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, or other legal entity appointed by the current mortgagee or mortgage servicer under the terms of the security instrument to exercise the power of sale.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.0001/8">
<num value="8">(8)</num>
<content>"Trustee" means an individual, corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, or other legal entity authorized to exercise the power of sale under the terms of a security instrument in accordance with Section 51.0074.</content>
</paragraph>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 554, Sec. 1, eff. Jan. 1, 2004.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 903 (H.B. 2738), Sec. 1, eff. June 15, 2007.
Acts 2025, 89th Leg., R.S., Ch. 38 (S.B. 372), Sec. 1, eff. May 19, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c51/s51.001">
<num value="51.001">Sec. 51.001.</num>
<heading>EFFECT ON OTHER LIENS</heading>
<chapeau>Except as provided by Chapter 59, this subtitle does not affect:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c51/s51.001/1">
<num value="1">(1)</num>
<content>the right to create a lien by special contract or agreement; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.001/2">
<num value="2">(2)</num>
<content>a lien that is not treated in this subtitle, including a lien arising under common law, in equity, or under another statute of this state.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3525, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c51/s51.0011">
<num value="51.0011">Sec. 51.0011.</num>
<heading>DEFAULT ARISING FROM DELINQUENT AD VALOREM TAXES: INSTALLMENT AGREEMENTS</heading>
<subsection identifier="/us/tx/pr/t5/c51/s51.0011/a">
<num value="a">(a)</num>
<chapeau>Notwithstanding any agreement to the contrary, a debtor is not in default under a deed of trust or other contract lien on real property used as the debtor's residence for the delinquent payment of ad valorem taxes if:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c51/s51.0011/1">
<num value="1">(1)</num>
<content>the debtor gave notice to the mortgage servicer of the intent to enter into an installment agreement with the taxing unit under Section 33.02, Tax Code, for the payment of the taxes at least 10 days before the date the debtor entered into the agreement; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.0011/2">
<num value="2">(2)</num>
<content>the property is protected from seizure and sale and a suit may not be filed to collect a delinquent tax on the property as provided by Section 33.02(d), Tax Code.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.0011/b">
<num value="b">(b)</num>
<content>A mortgage servicer who receives a notice described by Subsection (a)(1) may pay the taxes subject to the installment agreement at any time.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.0011/c">
<num value="c">(c)</num>
<content>A mortgage servicer who receives a notice described by Subsection (a)(1) and gives the debtor notice that the mortgage servicer intends to accelerate the note securing the deed of trust or other contract lien as a result of the delinquency of the taxes that are subject to the installment agreement must rescind the notice if the debtor enters into the agreement not later than the 30th day after the date the debtor delivers the notice.</content>
</subsection>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 935 (H.B. 1597), Sec. 4, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c51/s51.002">
<num value="51.002">Sec. 51.002.</num>
<heading>SALE OF REAL PROPERTY UNDER CONTRACT LIEN</heading>
<subsection identifier="/us/tx/pr/t5/c51/s51.002/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (a-1), a sale of real property under a power of sale conferred by a deed of trust or other contract lien must be a public sale at auction held between 10 a.m. and 4 p.m. of the first Tuesday of a month. Except as provided by Subsection (h), the sale must take place at the county courthouse in the county in which the land is located, or if the property is located in more than one county, the sale may be made at the courthouse in any county in which the property is located. The commissioners court shall designate the area at the courthouse where the sales are to take place and shall record the designation in the real property records of the county. The sale must occur in the designated area. If no area is designated by the commissioners court, the notice of sale must designate the area where the sale covered by that notice is to take place, and the sale must occur in that area.</content>
<continuation>(a-1) If the first Tuesday of a month occurs on January 1 or July 4, a public sale under Subsection (a) must be held between 10 a.m. and 4 p.m. on the first Wednesday of the month.</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.002/b">
<num value="b">(b)</num>
<chapeau>Except as provided by Subsection (b-1), notice of the sale, which must include a statement of the earliest time at which the sale will begin, must be given at least 21 days before the date of the sale by:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c51/s51.002/1">
<num value="1">(1)</num>
<content>posting at the courthouse door of each county in which the property is located a written notice designating the county in which the property will be sold;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.002/2">
<num value="2">(2)</num>
<content>filing in the office of the county clerk of each county in which the property is located a copy of the notice posted under Subdivision (1); and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.002/3">
<num value="3">(3)</num>
<content>serving written notice of the sale by certified mail on each debtor who, according to the records of the mortgage servicer of the debt, is obligated to pay the debt.</content>
<continuation>(b-1) If the courthouse or county clerk's office is closed because of inclement weather, natural disaster, or other act of God, a notice required to be posted at the courthouse under Subsection (b)(1) or filed with the county clerk under Subsection (b)(2) may be posted or filed, as appropriate, up to 48 hours after the courthouse or county clerk's office reopens for business, as applicable.</continuation>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.002/c">
<num value="c">(c)</num>
<content>The sale must begin at the time stated in the notice of sale or not later than three hours after that time.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.002/d">
<num value="d">(d)</num>
<content>Notwithstanding any agreement to the contrary, the mortgage servicer of the debt shall serve a debtor in default under a deed of trust or other contract lien on real property used as the debtor's residence with written notice by certified mail stating that the debtor is in default under the deed of trust or other contract lien and giving the debtor at least 20 days to cure the default before notice of sale can be given under Subsection (b). The entire calendar day on which the notice required by this subsection is given, regardless of the time of day at which the notice is given, is included in computing the 20-day notice period required by this subsection, and the entire calendar day on which notice of sale is given under Subsection (b) is excluded in computing the 20-day notice period.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.002/e">
<num value="e">(e)</num>
<content>Service of a notice under this section by certified mail is complete when the notice is deposited in the United States mail, postage prepaid and addressed to the debtor at the debtor's last known address. The affidavit of a person knowledgeable of the facts to the effect that service was completed is prima facie evidence of service.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.002/f">
<num value="f">(f)</num>
<content>Each county clerk shall keep all notices filed under Subdivision (2) of Subsection (b) in a convenient file that is available to the public for examination during normal business hours. The clerk may dispose of the notices after the date of sale specified in the notice has passed. The clerk shall receive a fee of $2 for each notice filed.</content>
<continuation>(f-1) A county shall prominently post a notice of sale filed with the county clerk under Subsection (b)(2) on the county's Internet website on a page where the county posts other auction information and that is publicly available for viewing without charge or registration. Along with each notice of sale posted under this subsection, the county must post the date, time, and location of the sale on the same website page on which the notice is posted.</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.002/g">
<num value="g">(g)</num>
<content>The entire calendar day on which the notice of sale is given, regardless of the time of day at which the notice is given, is included in computing the 21-day notice period required by Subsection (b), and the entire calendar day of the foreclosure sale is excluded.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.002/h">
<num value="h">(h)</num>
<content>For the purposes of Subsection (a), the commissioners court of a county may designate an area other than an area at the county courthouse where public sales of real property under this section will take place that is in a public place within a reasonable proximity of the county courthouse as determined by the commissioners court and in a location as accessible to the public as the courthouse door. The commissioners court shall record that designation in the real property records of the county. A designation by a commissioners court under this section is not a ground for challenging or invalidating any sale. A sale must be held at an area designated under this subsection if the sale is held on or after the 90th day after the date the designation is recorded. The posting of the notice required by Subsection (b)(1) of a sale designated under this subsection to take place at an area other than an area of the courthouse remains at the courthouse door of the appropriate county.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.002/i">
<num value="i">(i)</num>
<content>Notice served on a debtor under this section must state the name and address of the sender of the notice and contain, in addition to any other statements required under this section, a statement that is conspicuous, printed in boldface or underlined type, and substantially similar to the following: "Assert and protect your rights as a member of the armed forces of the United States. If you are or your spouse is serving on active military duty, including active military duty as a member of the Texas National Guard or the National Guard of another state or as a member of a reserve component of the armed forces of the United States, please send written notice of the active duty military service to the sender of this notice immediately."</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3525, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 18, Sec. 3(b), eff. Oct. 2, 1984; Acts 1987, 70th Leg., ch. 540, Sec. 1, eff. Jan. 1, 1988; Acts 1993, 73rd Leg., ch. 48, Sec. 5, eff. Sept. 1, 1993; Acts 2003, 78th Leg., ch. 554, Sec. 2, eff. Jan. 1, 2004.
Amended by:
Acts 2005, 79th Leg., Ch. 533 (H.B. 961), Sec. 1, eff. June 17, 2005.
Acts 2005, 79th Leg., Ch. 555 (H.B. 1235), Sec. 1, eff. September 1, 2005.
Acts 2007, 80th Leg., R.S., Ch. 903 (H.B. 2738), Sec. 2, eff. June 15, 2007.
Acts 2011, 82nd Leg., R.S., Ch. 252 (H.B. 1127), Sec. 2, eff. January 1, 2012.
Acts 2011, 82nd Leg., R.S., Ch. 592 (S.B. 101), Sec. 1, eff. September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 52 (H.B. 584), Sec. 1, eff. September 1, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 161 (S.B. 1093), Sec. 17.001, eff. September 1, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 642 (H.B. 699), Sec. 2, eff. October 1, 2013.
Acts 2017, 85th Leg., R.S., Ch. 133 (H.B. 1128), Sec. 3, eff. September 1, 2017.
Acts 2023, 88th Leg., R.S., Ch. 268 (S.B. 62), Sec. 1, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c51/s51.0021">
<num value="51.0021">Sec. 51.0021.</num>
<heading>NOTICE OF CHANGE OF ADDRESS REQUIRED</heading>
<content>A debtor shall inform the mortgage servicer of the debt in a reasonable manner of any change of address of the debtor for purposes of providing notice to the debtor under Section 51.002.</content>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 554, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c51/s51.0025">
<num value="51.0025">Sec. 51.0025.</num>
<heading>ADMINISTRATION OF FORECLOSURE BY MORTGAGE SERVICER</heading>
<chapeau>A mortgage servicer may administer the foreclosure of property under Section 51.002 on behalf of a mortgagee if:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c51/s51.0025/1">
<num value="1">(1)</num>
<content>the mortgage servicer and the mortgagee have entered into an agreement granting the current mortgage servicer authority to service the mortgage; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.0025/2">
<num value="2">(2)</num>
<chapeau>the notices required under Section 51.002(b) disclose that the mortgage servicer is representing the mortgagee under a servicing agreement with the mortgagee and the name of the mortgagee and:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c51/s51.0025/A">
<num value="A">(A)</num>
<content>the address of the mortgagee; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c51/s51.0025/B">
<num value="B">(B)</num>
<content>the address of the mortgage servicer, if there is an agreement granting a mortgage servicer the authority to service the mortgage.</content>
</subparagraph>
</paragraph>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 554, Sec. 1, eff. Jan. 1, 2004.
Amended by:
Acts 2005, 79th Leg., Ch. 555 (H.B. 1235), Sec. 2, eff. September 1, 2005.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c51/s51.003">
<num value="51.003">Sec. 51.003.</num>
<heading>DEFICIENCY JUDGMENT</heading>
<subsection identifier="/us/tx/pr/t5/c51/s51.003/a">
<num value="a">(a)</num>
<content>If the price at which real property is sold at a foreclosure sale under Section 51.002 is less than the unpaid balance of the indebtedness secured by the real property, resulting in a deficiency, any action brought to recover the deficiency must be brought within two years of the foreclosure sale and is governed by this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.003/b">
<num value="b">(b)</num>
<content>Any person against whom such a recovery is sought by motion may request that the court in which the action is pending determine the fair market value of the real property as of the date of the foreclosure sale. The fair market value shall be determined by the finder of fact after the introduction by the parties of competent evidence of the value. Competent evidence of value may include, but is not limited to, the following: (1) expert opinion testimony; (2) comparable sales; (3) anticipated marketing time and holding costs; (4) cost of sale; and (5) the necessity and amount of any discount to be applied to the future sales price or the cashflow generated by the property to arrive at a current fair market value.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.003/c">
<num value="c">(c)</num>
<content>If the court determines that the fair market value is greater than the sale price of the real property at the foreclosure sale, the persons against whom recovery of the deficiency is sought are entitled to an offset against the deficiency in the amount by which the fair market value, less the amount of any claim, indebtedness, or obligation of any kind that is secured by a lien or encumbrance on the real property that was not extinguished by the foreclosure, exceeds the sale price. If no party requests the determination of fair market value or if such a request is made and no competent evidence of fair market value is introduced, the sale price at the foreclosure sale shall be used to compute the deficiency.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.003/d">
<num value="d">(d)</num>
<content>Any money received by a lender from a private mortgage guaranty insurer shall be credited to the account of the borrower prior to the lender bringing an action at law for any deficiency owed by the borrower. Notwithstanding the foregoing, the credit required by this subsection shall not apply to the exercise by a private mortgage guaranty insurer of its subrogation rights against a borrower or other person liable for any deficiency.</content>
</subsection>
<sourceCredit>Added by Acts 1991, 72nd Leg., ch. 12, Sec. 1, eff. April 1, 1991.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c51/s51.004">
<num value="51.004">Sec. 51.004.</num>
<heading>JUDICIAL FORECLOSURE--DEFICIENCY</heading>
<subsection identifier="/us/tx/pr/t5/c51/s51.004/a">
<num value="a">(a)</num>
<chapeau>This section applies if:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c51/s51.004/1">
<num value="1">(1)</num>
<content>real property subject to a deed of trust or other contract lien is sold at a foreclosure sale under a court judgment foreclosing the lien and ordering the sale; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.004/2">
<num value="2">(2)</num>
<content>the price at which the real property is sold is less than the unpaid balance of the indebtedness secured by the real property, resulting in a deficiency.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.004/b">
<num value="b">(b)</num>
<chapeau>Any person obligated on the indebtedness, including a guarantor, may bring an action in the district court in the county in which the real property is located for a determination of the fair market value of the real property as of the date of the foreclosure sale. The suit must be brought not later than the 90th day after the date of the foreclosure sale unless the suit is brought by a guarantor who did not receive actual notice of the sale before the date of sale, in which case the suit must be brought by the guarantor not later than the 90th day after the date the guarantor received actual notice of the sale. The fair market value shall be determined by the finder of fact after the introduction by the parties of competent evidence of the value. Competent evidence of value may include:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c51/s51.004/1">
<num value="1">(1)</num>
<content>expert opinion testimony;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.004/2">
<num value="2">(2)</num>
<content>comparable sales;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.004/3">
<num value="3">(3)</num>
<content>anticipated marketing time and holding costs;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.004/4">
<num value="4">(4)</num>
<content>cost of sale; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.004/5">
<num value="5">(5)</num>
<content>the necessity and amount of any discount to be applied to the future sales price or the cash flow generated by the property to arrive at a fair market value as of the date of the foreclosure sale.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.004/c">
<num value="c">(c)</num>
<content>If the finder of fact determines that the fair market value is greater than the sale price of the real property at the foreclosure sale, the persons obligated on the indebtedness, including guarantors, are entitled to an offset against the deficiency in the amount by which the fair market value, less the amount of any claim, indebtedness, or obligation of any kind that is secured by a lien or encumbrance on the real property that was not extinguished by the foreclosure, exceeds the sale price. If no competent evidence of fair market value is introduced, the sale price at the foreclosure sale shall be used to compute the deficiency.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.004/d">
<num value="d">(d)</num>
<content>Any money received by a lender from a private mortgage guaranty insurer shall be credited to the account of the borrower before the lender brings an action at law for any deficiency owed by the borrower. However, the credit required by this subsection does not apply to the exercise by a private mortgage guaranty insurer of its subrogation rights against a borrower or other person liable for any deficiency.</content>
</subsection>
<sourceCredit>Added by Acts 1991, 72nd Leg., ch. 361, Sec. 1, eff. June 5, 1991.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c51/s51.005">
<num value="51.005">Sec. 51.005.</num>
<heading>JUDICIAL OR NONJUDICIAL FORECLOSURE AFTER JUDGMENT AGAINST GUARANTOR--DEFICIENCY</heading>
<subsection identifier="/us/tx/pr/t5/c51/s51.005/a">
<num value="a">(a)</num>
<chapeau>This section applies if:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c51/s51.005/1">
<num value="1">(1)</num>
<content>the holder of a debt obtains a court judgment against a guarantor of the debt;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.005/2">
<num value="2">(2)</num>
<content>real property subject to a deed of trust or other contract lien securing the guaranteed debt is sold at a foreclosure sale under Section 51.002 or under a court judgment foreclosing the lien and ordering the sale;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.005/3">
<num value="3">(3)</num>
<content>the price at which the real property is sold is less than the unpaid balance of the indebtedness secured by the real property, resulting in a deficiency; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.005/4">
<num value="4">(4)</num>
<content>a motion or suit to determine the fair market value of the real property as of the date of the foreclosure sale has not been filed under Section 51.003 or 51.004.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.005/b">
<num value="b">(b)</num>
<chapeau>The guarantor may bring an action in the district court in the county in which the real property is located for a determination of the fair market value of the real property as of the date of the foreclosure sale. The suit must be brought not later than the 90th day after the date of the foreclosure sale or the date the guarantor receives actual notice of the foreclosure sale, whichever is later. The fair market value shall be determined by the finder of fact after the introduction by the parties of competent evidence of the value. Competent evidence of value may include:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c51/s51.005/1">
<num value="1">(1)</num>
<content>expert opinion testimony;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.005/2">
<num value="2">(2)</num>
<content>comparable sales;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.005/3">
<num value="3">(3)</num>
<content>anticipated marketing time and holding costs;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.005/4">
<num value="4">(4)</num>
<content>cost of sale; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.005/5">
<num value="5">(5)</num>
<content>the necessity and amount of any discount to be applied to the future sales price or the cash flow generated by the property to arrive at a fair market value as of the date of the foreclosure sale.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.005/c">
<num value="c">(c)</num>
<content>If the finder of fact determines that the fair market value is greater than the sale price of the real property at the foreclosure sale, the persons obligated on the indebtedness, including guarantors, are entitled to an offset against the deficiency in the amount by which the fair market value, less the amount of any claim, indebtedness, or obligation of any kind that is secured by a lien or encumbrance on the real property that was not extinguished by the foreclosure, exceeds the sale price. If no competent evidence of fair market value is introduced, the sale price at the foreclosure sale shall be used to compute the deficiency.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.005/d">
<num value="d">(d)</num>
<content>Any money received by a lender from a private mortgage guaranty insurer shall be credited to the account of the borrower before the lender brings an action at law for any deficiency owed by the borrower. However, the credit required by this subsection does not apply to the exercise by a private mortgage guaranty insurer of its subrogation rights against a borrower or other person liable for any deficiency.</content>
</subsection>
<sourceCredit>Added by Acts 1991, 72nd Leg., ch. 361, Sec. 1, eff. June 5, 1991.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c51/s51.006">
<num value="51.006">Sec. 51.006.</num>
<heading>DEED-OF-TRUST FORECLOSURE AFTER DEED IN LIEU OF FORECLOSURE</heading>
<subsection identifier="/us/tx/pr/t5/c51/s51.006/a">
<num value="a">(a)</num>
<content>This section applies to a holder of a debt under a deed of trust who accepts from the debtor a deed conveying real property subject to the deed of trust in satisfaction of the debt.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.006/b">
<num value="b">(b)</num>
<chapeau>The holder of a debt may void a deed conveying real property in satisfaction of the debt before the fourth anniversary of the date the deed is executed and foreclosed under the original deed of trust if:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c51/s51.006/1">
<num value="1">(1)</num>
<content>the debtor fails to disclose to the holder of the debt a lien or other encumbrance on the property before executing the deed conveying the property to the holder of the debt in satisfaction of the debt; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.006/2">
<num value="2">(2)</num>
<content>the holder of the debt has no personal knowledge of the undisclosed lien or encumbrance on the property.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.006/c">
<num value="c">(c)</num>
<content>A third party may conclusively rely upon the affidavit of the holder of a debt stating that the holder has voided the deed as provided in this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.006/d">
<num value="d">(d)</num>
<content>If the holder elects to void a deed in lieu of foreclosure as provided in this section, the priority of its deed of trust shall not be affected or impaired by the execution of the deed in lieu of foreclosure.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.006/e">
<num value="e">(e)</num>
<content>If a holder accepts a deed in lieu of foreclosure, the holder may foreclose its deed of trust as provided in said deed of trust without electing to void the deed. The priority of such deed of trust shall not be affected or impaired by the deed in lieu of foreclosure.</content>
</subsection>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 1020, Sec. 1, eff. Aug. 28, 1995.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c51/s51.007">
<num value="51.007">Sec. 51.007.</num>
<heading>TRUSTEE UNDER DEED OF TRUST, CONTRACT LIEN OR SECURITY INSTRUMENT</heading>
<subsection identifier="/us/tx/pr/t5/c51/s51.007/a">
<num value="a">(a)</num>
<content>The trustee named in a suit or proceeding may plead in the answer that the trustee is not a necessary party by a verified denial stating the basis for the trustee's reasonable belief that the trustee was named as a party solely in the capacity as a trustee under a deed of trust, contract lien, or security instrument.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.007/b">
<num value="b">(b)</num>
<content>Within 30 days after the filing of the trustee's verified denial, a verified response is due from all parties to the suit or proceeding setting forth all matters, whether in law or fact, that rebut the trustee's verified denial.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.007/c">
<num value="c">(c)</num>
<content>If a party has no objection or fails to file a timely verified response to the trustee's verified denial, the trustee shall be dismissed from the suit or proceeding without prejudice.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.007/d">
<num value="d">(d)</num>
<content>If a respondent files a timely verified response to the trustee's verified denial, the matter shall be set for hearing. The court shall dismiss the trustee from the suit or proceeding without prejudice if the court determines that the trustee is not a necessary party.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.007/e">
<num value="e">(e)</num>
<content>A dismissal of the trustee pursuant to Subsections (c) and (d) shall not prejudice a party's right to seek injunctive relief to prevent the trustee from proceeding with a foreclosure sale.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.007/f">
<num value="f">(f)</num>
<content>A trustee shall not be liable for any good faith error resulting from reliance on any information in law or fact provided by the mortgagor or mortgagee or their respective attorney, agent, or representative or other third party.</content>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1304, Sec. 1, eff. Sept. 1, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c51/s51.0074">
<num value="51.0074">Sec. 51.0074.</num>
<heading>DUTIES OF TRUSTEE</heading>
<subsection identifier="/us/tx/pr/t5/c51/s51.0074/a">
<num value="a">(a)</num>
<content>One or more persons may be authorized to exercise the power of sale under a security instrument.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.0074/b">
<num value="b">(b)</num>
<chapeau>A trustee may not be:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c51/s51.0074/1">
<num value="1">(1)</num>
<content>assigned a duty under a security instrument other than to exercise the power of sale in accordance with the terms of the security instrument; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.0074/2">
<num value="2">(2)</num>
<content>held to the obligations of a fiduciary of the mortgagor or mortgagee.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2007, 80th Leg., R.S., Ch. 903 (H.B. 2738), Sec. 3, eff. June 15, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c51/s51.0075">
<num value="51.0075">Sec. 51.0075.</num>
<heading>AUTHORITY OF TRUSTEE OR SUBSTITUTE TRUSTEE</heading>
<subsection identifier="/us/tx/pr/t5/c51/s51.0075/a">
<num value="a">(a)</num>
<content>A trustee or substitute trustee may set reasonable conditions for conducting the public sale if the conditions are announced before bidding is opened for the first sale of the day held by the trustee or substitute trustee.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.0075/b">
<num value="b">(b)</num>
<content>A trustee or substitute trustee is not a debt collector.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.0075/c">
<num value="c">(c)</num>
<content>Notwithstanding any agreement to the contrary, a mortgagee may appoint or may authorize a mortgage servicer to appoint a substitute trustee or substitute trustees to succeed to all title, powers, and duties of the original trustee. A mortgagee or mortgage servicer may make an appointment or authorization under this subsection by power of attorney, corporate resolution, or other written instrument.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.0075/d">
<num value="d">(d)</num>
<content>A mortgage servicer may authorize an attorney to appoint a substitute trustee or substitute trustees on behalf of a mortgagee under Subsection (c).</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.0075/e">
<num value="e">(e)</num>
<content>The name and a street address for a trustee or substitute trustees shall be disclosed on the notice required by Section 51.002(b).</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.0075/f">
<num value="f">(f)</num>
<content>The purchase price in a sale held by a trustee or substitute trustee under this section is due and payable without delay on acceptance of the bid or within such reasonable time as may be agreed upon by the purchaser and the trustee or substitute trustee if the purchaser makes such request for additional time to deliver the purchase price. The trustee or substitute trustee shall disburse the proceeds of the sale as provided by law.</content>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 554, Sec. 1, eff. Jan. 1, 2004.
Amended by:
Acts 2005, 79th Leg., Ch. 1231 (H.B. 1234), Sec. 1, eff. September 1, 2005.
Acts 2007, 80th Leg., R.S., Ch. 903 (H.B. 2738), Sec. 4, eff. June 15, 2007.
Acts 2009, 81st Leg., R.S., Ch. 323 (H.B. 655), Sec. 1, eff. September 1, 2009.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c51/s51.0076">
<num value="51.0076">Sec. 51.0076.</num>
<heading>EFFECTIVE DATE OF APPOINTMENT</heading>
<chapeau>The appointment or authorization of a trustee or substitute trustee made in a notice of sale is effective as of the date of the notice if the notice:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c51/s51.0076/1">
<num value="1">(1)</num>
<content>complies with Sections 51.002 and 51.0075(e);</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.0076/2">
<num value="2">(2)</num>
<content>is signed by an attorney or agent of the mortgagee or mortgage servicer; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.0076/3">
<num value="3">(3)</num>
<content>contains a statement in all capital letters, boldface type, to read as follows:</content>
<continuation>THIS INSTRUMENT APPOINTS THE SUBSTITUTE TRUSTEE(S) IDENTIFIED TO SELL THE PROPERTY DESCRIBED IN THE SECURITY INSTRUMENT IDENTIFIED IN THIS NOTICE OF SALE THE PERSON SIGNING THIS NOTICE IS THE ATTORNEY OR AUTHORIZED AGENT OF THE MORTGAGEE OR MORTGAGE SERVICER.</continuation>
</paragraph>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 653 (H.B. 2063), Sec. 2, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c51/s51.008">
<num value="51.008">Sec. 51.008.</num>
<heading>CERTAIN LIENS ON REAL PROPERTY</heading>
<subsection identifier="/us/tx/pr/t5/c51/s51.008/a">
<num value="a">(a)</num>
<chapeau>A lien on real property created under this code or another law of this state in favor of a governmental entity must be recorded as provided by Chapters 11 and 12 in the real property records of the county in which the property or a portion of the property is located unless:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c51/s51.008/1">
<num value="1">(1)</num>
<chapeau>the lien is imposed as a result of failure to pay:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c51/s51.008/A">
<num value="A">(A)</num>
<content>ad valorem taxes; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c51/s51.008/B">
<num value="B">(B)</num>
<content>a penalty or interest owed in connection with those taxes; or</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.008/2">
<num value="2">(2)</num>
<content>the law establishing the lien expressly states that recording the lien is not required.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.008/b">
<num value="b">(b)</num>
<content>Any notice of the lien required by law must contain a legal description of the property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.008/c">
<num value="c">(c)</num>
<chapeau>This section does not apply to:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c51/s51.008/1">
<num value="1">(1)</num>
<content>a lien created under Section 89.083, Natural Resources Code;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.008/2">
<num value="2">(2)</num>
<content>a state tax lien under Chapter 113, Tax Code; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.008/3">
<num value="3">(3)</num>
<content>a lien established under Chapter 61 or 213, Labor Code.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 827, Sec. 1, eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c51/s51.009">
<num value="51.009">Sec. 51.009.</num>
<heading>FORECLOSED PROPERTY SOLD "AS IS"</heading>
<chapeau>A purchaser at a sale of real property under Section 51.002:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c51/s51.009/1">
<num value="1">(1)</num>
<content>acquires the foreclosed property "as is" without any expressed or implied warranties, except as to warranties of title, and at the purchaser's own risk; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.009/2">
<num value="2">(2)</num>
<content>is not a consumer.</content>
</paragraph>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 554, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c51/s51.015">
<num value="51.015">Sec. 51.015.</num>
<heading>SALE OF CERTAIN PROPERTY OWNED BY MEMBER OF THE MILITARY</heading>
<subsection identifier="/us/tx/pr/t5/c51/s51.015/a">
<num value="a">(a)</num>
<chapeau>In this section:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c51/s51.015/1">
<num value="1">(1)</num>
<chapeau>"Active duty military service" means:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c51/s51.015/A">
<num value="A">(A)</num>
<content>service as a member of the armed forces of the United States; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c51/s51.015/B">
<num value="B">(B)</num>
<content>with respect to a member of the Texas National Guard or the National Guard of another state or a member of a reserve component of the armed forces of the United States, active duty under an order of the president of the United States.</content>
<continuation>(1-a) "Assessment" and "assessments" have the meanings assigned by Sections 82.113(a) and 209.002, as applicable.</continuation>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.015/2">
<num value="2">(2)</num>
<content>"Dwelling" means a residential structure or manufactured home that contains one to four family housing units.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.015/3">
<num value="3">(3)</num>
<chapeau>"Military servicemember" means:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c51/s51.015/A">
<num value="A">(A)</num>
<content>a member of the armed forces of the United States;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c51/s51.015/B">
<num value="B">(B)</num>
<content>a member of the Texas National Guard or the National Guard of another state serving on active duty under an order of the president of the United States; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c51/s51.015/C">
<num value="C">(C)</num>
<content>a member of a reserve component of the armed forces of the United States who is on active duty under an order of the president of the United States.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.015/4">
<num value="4">(4)</num>
<content>"Person" has the meaning assigned by Section 311.005, Government Code.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.015/b">
<num value="b">(b)</num>
<chapeau>This section applies only to an obligation:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c51/s51.015/1">
<num value="1">(1)</num>
<content>that is secured by a mortgage, deed of trust, or other contract lien, including a lien securing payment of an assessment or assessments, as applicable, on real property or personal property that is a dwelling owned by a military servicemember;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.015/2">
<num value="2">(2)</num>
<content>that originates before the date on which the servicemember's active duty military service commences; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.015/3">
<num value="3">(3)</num>
<content>for which the servicemember is still obligated.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.015/c">
<num value="c">(c)</num>
<chapeau>In an action filed during a military servicemember's period of active duty military service or during the nine months after the date on which that service period concludes to foreclose a lien or otherwise enforce an obligation described by Subsection (b), the court may after a hearing and on the court's own motion, and shall on the application by a servicemember whose ability to comply with the obligations of the contract secured by the lien is materially affected by the servicemember's military service:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c51/s51.015/1">
<num value="1">(1)</num>
<content>stay the proceedings for a period of time as justice and equity require; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.015/2">
<num value="2">(2)</num>
<content>adjust the obligations of the contract secured by the lien to preserve the interests of all parties.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.015/d">
<num value="d">(d)</num>
<chapeau>A sale, foreclosure, or seizure of property under a mortgage, deed of trust, or other contract lien described by Subsection (b) may not be conducted during the military servicemember's period of active duty military service or during the nine months after the date on which that service period concludes unless the sale, foreclosure, or seizure is conducted under:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c51/s51.015/1">
<num value="1">(1)</num>
<content>a court order issued before the sale, foreclosure, or seizure; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.015/2">
<num value="2">(2)</num>
<content>an agreement that complies with Subsection (e).</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.015/e">
<num value="e">(e)</num>
<chapeau>A military servicemember may waive the servicemember's rights under this section only as provided by this subsection. The waiver must be:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c51/s51.015/1">
<num value="1">(1)</num>
<content>in writing in at least 12-point type;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.015/2">
<num value="2">(2)</num>
<content>executed as an instrument separate from the obligation to which the waiver applies; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.015/3">
<num value="3">(3)</num>
<chapeau>made under a written agreement:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c51/s51.015/A">
<num value="A">(A)</num>
<content>executed during or after the servicemember's period of active duty military service; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c51/s51.015/B">
<num value="B">(B)</num>
<content>specifying the legal instrument to which the waiver applies and, if the servicemember is not a party to the instrument, the servicemember concerned.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.015/f">
<num value="f">(f)</num>
<content>A person commits an offense if the person knowingly makes or causes to be made a sale, foreclosure, or seizure of property that is prohibited by Subsection (d). An offense under this subsection is a Class A misdemeanor.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.015/g">
<num value="g">(g)</num>
<content>On application to a court, a dependent of a military servicemember is entitled to the protections of this section if the dependent's ability to comply with an obligation that is secured by a mortgage, deed of trust, or other contract lien on real property or personal property that is a dwelling is materially affected by the servicemember's military service.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.015/h">
<num value="h">(h)</num>
<content>A court that issues a stay or takes any other action under this section regarding the enforcement of an obligation that is subject to this section may grant a similar stay or take similar action with respect to a surety, guarantor, endorser, accommodation maker, comaker, or other person who is or may be primarily or secondarily subject to the obligation.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.015/i">
<num value="i">(i)</num>
<content>If a judgment or decree is vacated or set aside wholly or partly under this section, the court may also set aside or vacate, as applicable, the judgment or decree with respect to a surety, guarantor, endorser, accommodation maker, comaker, or other person who is or may be primarily or secondarily subject to the obligation that is subject to the judgment or decree.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.015/j">
<num value="j">(j)</num>
<content>This section does not prevent a waiver in writing by a surety, guarantor, endorser, accommodation maker, comaker, or other person, whether primarily or secondarily liable on an obligation, of the protections provided under Subsections (h) and (i). A waiver described by this subsection is effective only if it is executed as an instrument separate from the obligation with respect to which it applies. If a waiver under this subsection is executed by an individual who after the execution of the waiver enters active duty military service, or by a dependent of an individual who after the execution of the waiver enters active duty military service, the waiver is not valid after the beginning of the period of the active duty military service unless the waiver was executed by the individual or dependent during the applicable period described by 50 U.S.C. App. Section 516, as that section existed on January 1, 2009.</content>
</subsection>
<sourceCredit>Added by Acts 2009, 81st Leg., R.S., Ch. 992 (H.B. 3857), Sec. 1, eff. June 19, 2009.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 592 (S.B. 101), Sec. 2, eff. September 1, 2011.
Acts 2011, 82nd Leg., R.S., Ch. 592 (S.B. 101), Sec. 3, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c51/s51.016">
<num value="51.016">Sec. 51.016.</num>
<heading>RESCISSION OF NONJUDICIAL FORECLOSURE SALES</heading>
<subsection identifier="/us/tx/pr/t5/c51/s51.016/a">
<num value="a">(a)</num>
<chapeau>This section applies only to a nonjudicial foreclosure sale of residential real property conducted under Section 51.002. In this subsection, "residential real property" means:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c51/s51.016/1">
<num value="1">(1)</num>
<content>a single family home, duplex, triplex, or quadraplex; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.016/2">
<num value="2">(2)</num>
<content>a unit in a multiunit residential structure in which title to an individual unit is transferred to the owner of the unit under a condominium or cooperative system.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.016/b">
<num value="b">(b)</num>
<chapeau>Not later than the 15th calendar day after the date of a foreclosure sale, a mortgagee, trustee, or substitute trustee may rescind the sale under this section if:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c51/s51.016/1">
<num value="1">(1)</num>
<content>the statutory requirements for the sale were not satisfied;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.016/2">
<num value="2">(2)</num>
<content>the default leading to the sale was cured before the sale;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.016/3">
<num value="3">(3)</num>
<content>a receivership or dependent probate administration involving the property was pending at the time of sale;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.016/4">
<num value="4">(4)</num>
<content>a condition specified in the conditions of sale prescribed by the trustee or substitute trustee before the sale and made available in writing to prospective bidders at the sale was not met;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.016/5">
<num value="5">(5)</num>
<content>the mortgagee or mortgage servicer and the debtor agreed before the sale to cancel the sale based on an enforceable written agreement by the debtor to cure the default; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.016/6">
<num value="6">(6)</num>
<content>at the time of the sale, a court-ordered or automatic stay of the sale imposed in a bankruptcy case filed by a person with an interest in the property was in effect.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.016/c">
<num value="c">(c)</num>
<chapeau>On or before the 15th calendar day after the date of the sale, the party rescinding the sale shall:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c51/s51.016/1">
<num value="1">(1)</num>
<chapeau>serve a written notice of rescission that describes the reason for the rescission and includes recording information for any affected trustee's or substitute trustee's deed that was recorded on:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c51/s51.016/A">
<num value="A">(A)</num>
<content>the purchaser, if the mortgagee is not the purchaser; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c51/s51.016/B">
<num value="B">(B)</num>
<content>each debtor who, according to the records of the mortgage servicer of the debt, is obligated to pay the debt; and</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.016/2">
<num value="2">(2)</num>
<content>file each notice for recording in the real property records of the county in which all or a part of the property is located.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.016/d">
<num value="d">(d)</num>
<content>A notice required by Subsection (c) must be served by certified mail. Service of the notice is complete when the notice is deposited in the United States mail, postage prepaid and addressed to the purchaser or debtor, as applicable, at the purchaser's or debtor's last known address, as applicable. The affidavit of a person knowledgeable of the facts to the effect that service was completed is prima facie evidence of service.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.016/e">
<num value="e">(e)</num>
<chapeau>Not later than the fifth calendar day after the date a foreclosure sale is rescinded under this section, the mortgagee shall return to the purchaser by certified mail, electronic or wire transfer, or courier service with delivery tracking the amount of the bid paid by the purchaser for the property at the sale. The debtor shall return to the trustee the amount of any excess proceeds received by the debtor from the sale. The return of the bid amount is considered made on the date:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c51/s51.016/1">
<num value="1">(1)</num>
<content>the bid amount is deposited postage prepaid in the United States mail or with the courier service addressed to the purchaser at the purchaser's last known address; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c51/s51.016/2">
<num value="2">(2)</num>
<content>the electronic or wire transfer is ordered.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.016/f">
<num value="f">(f)</num>
<content>The rescinding mortgagee, trustee, or substitute trustee shall cause to be filed for recording in the real property records of the county where the notice required under Subsection (c) was recorded an affidavit stating the date the bid amount was returned together with the certified mail, electronic or wire transfer, or courier service delivery tracking information.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.016/g">
<num value="g">(g)</num>
<content>An affidavit executed and filed in accordance with Subsection (f) is prima facie evidence of the return of the bid amount and of the authority of the maker of the affidavit. A bona fide purchaser, lender, or other person acquiring an interest in the property or an insurer of title is entitled to rely conclusively on the record of the filed affidavit and notice, and any subsequent purchaser in good faith and for value is entitled to bona fide purchaser protection.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.016/h">
<num value="h">(h)</num>
<content>The rescission of a foreclosure sale under this section restores the mortgagee and the debtor to their respective title, rights, and obligations under any instrument relating to the foreclosed property that existed immediately prior to the sale.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.016/i">
<num value="i">(i)</num>
<content>A rescission of a foreclosure sale under this section is void as to a creditor or to a subsequent purchaser for a valuable consideration without notice unless notice of the rescission has been acknowledged, sworn to, or proved and filed for recording as required by law. A rescission of a foreclosure sale under this section evidenced by an unrecorded instrument is binding on a party to the instrument, on the party's heirs, and on a subsequent purchaser who does not pay a valuable consideration or who has notice of the instrument.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.016/j">
<num value="j">(j)</num>
<content>No action challenging the effectiveness of a rescission under this section may be commenced unless the action is filed on or before the 30th calendar day after the date the notices of rescission required by Subsection (c) are filed for recording. A lis pendens notice based on the rescission not recorded within that period has no effect. This subsection does not affect the limitations period for an action claiming damages resulting from the rescission.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.016/k">
<num value="k">(k)</num>
<content>If the foreclosure sale is rescinded under this section for a reason listed in Subsection (b), other than a stay described by Subsection (b)(6), the court in a civil action filed by the purchaser challenging the effectiveness of the rescission or claiming damages resulting from the rescission may only award as damages to the purchaser the amount of the bid paid for the property by the purchaser at the sale that has not been refunded to the purchaser, plus interest on that amount at the rate of 10 percent per year. Notwithstanding any other law, the court may not order specific performance of the sale as a remedy for the purchaser. Interest awarded under this subsection ceases to accrue on the fourth day after the date the mortgagee deposits the amount of the damages awarded in the United States mail or with a courier for delivery to the purchaser.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.016/l">
<num value="l">(l)</num>
<content>If a foreclosure sale is rescinded under this section for a reason provided by Subsection (b)(6), the court in a civil action filed by the purchaser challenging the effectiveness of the rescission or claiming damages resulting from the rescission may only award as damages to the purchaser the amount of the bid paid for the property by the purchaser at the sale that has not been refunded to the purchaser.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c51/s51.016/m">
<num value="m">(m)</num>
<content>Nothing in this section prohibits the rescission of a sale by agreement of the affected parties on other terms or a suit to rescind a sale not rescinded under this section.</content>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 551 (H.B. 2066), Sec. 1, eff. September 1, 2015.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t5/c52">
<num value="52">CHAPTER 52.</num>
<heading>JUDGMENT LIEN</heading>
<subchapter identifier="/us/tx/pr/t5/c52/scA">
<num value="A">SUBCHAPTER A.</num>
<heading>GENERAL PROVISIONS</heading>
<section identifier="/us/tx/pr/t5/c52/scA/s52.001">
<num value="52.001">Sec. 52.001.</num>
<heading>ESTABLISHMENT OF LIEN</heading>
<content>Except as provided by Section 52.0011 or 52.0012, a first or subsequent abstract of judgment, when it is recorded and indexed in accordance with this chapter, if the judgment is not then dormant, constitutes a lien on and attaches to any real property of the defendant, other than real property exempt from seizure or forced sale under Chapter 41, the Texas Constitution, or any other law, that is located in the county in which the abstract is recorded and indexed, including real property acquired after such recording and indexing.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3526, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 1178, Sec. 2, eff. Sept. 1, 1989; Acts 1993, 73rd Leg., ch. 48, Sec. 6, eff. Sept. 1, 1993.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 374 (S.B. 512), Sec. 1, eff. September 1, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c52/scA/s52.0011">
<num value="52.0011">Sec. 52.0011.</num>
<heading>ESTABLISHMENT OF LIEN PENDING APPEAL OF JUDGMENT</heading>
<subsection identifier="/us/tx/pr/t5/c52/scA/s52.0011/a">
<num value="a">(a)</num>
<chapeau>A first or subsequent abstract of a judgment rendered by a court against a defendant, when it is recorded and indexed under this chapter, does not constitute a lien on the real property of the defendant if:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c52/scA/s52.0011/1">
<num value="1">(1)</num>
<content>the defendant has posted security as provided by law or is excused by law from posting security; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c52/scA/s52.0011/2">
<num value="2">(2)</num>
<content>the court finds that the creation of the lien would not substantially increase the degree to which a judgment creditor's recovery under the judgment would be secured when balanced against the costs to the defendant after the exhaustion of all appellate remedies. A certified copy of the finding of the court must be recorded in the real property records in each county in which the abstract of judgment or a certified copy of the judgment is filed in the abstract of judgment records.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c52/scA/s52.0011/b">
<num value="b">(b)</num>
<content>The court may withdraw its finding under Subsection (a)(2) at any time the court determines, from evidence presented to it, that the finding should be withdrawn. The lien exists on withdrawal of the finding and on the filing of a certified copy of the withdrawal of the finding of the court in the real property records in each county in which the abstract of judgment or a certified copy of the judgment is filed in the abstract of judgment records.</content>
</subsection>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 1178, Sec. 3, eff. Sept. 1, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c52/scA/s52.0012">
<num value="52.0012">Sec. 52.0012.</num>
<heading>RELEASE OF RECORD OF LIEN ON HOMESTEAD PROPERTY</heading>
<subsection identifier="/us/tx/pr/t5/c52/scA/s52.0012/a">
<num value="a">(a)</num>
<chapeau>In this section:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c52/scA/s52.0012/1">
<num value="1">(1)</num>
<content>"Homestead" has the meaning assigned by Section 41.002.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c52/scA/s52.0012/2">
<num value="2">(2)</num>
<content>"Judgment debtor" and "judgment creditor" have the meanings assigned by Section 31.008(h), Civil Practice and Remedies Code.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c52/scA/s52.0012/b">
<num value="b">(b)</num>
<chapeau>A judgment debtor may file in the real property records of the county in which the judgment debtor's homestead is located:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c52/scA/s52.0012/1">
<num value="1">(1)</num>
<content>an affidavit that substantially complies with Subsection (f); and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c52/scA/s52.0012/2">
<num value="2">(2)</num>
<content>a certificate of mailing that substantially complies with Subsection (g).</content>
<continuation>(b-1) A judgment debtor who files an affidavit under Subsection (b) shall send a letter notifying the judgment creditor of the filing of the affidavit and a copy of the filed affidavit by registered or certified mail, return receipt requested, to:</continuation>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c52/scA/s52.0012/1">
<num value="1">(1)</num>
<content>the judgment creditor's last known address;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c52/scA/s52.0012/2">
<num value="2">(2)</num>
<content>the address appearing in the judgment creditor's pleadings in the action in which the judgment was rendered or another court record, if that address is different from the judgment creditor's last known address;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c52/scA/s52.0012/3">
<num value="3">(3)</num>
<content>the address of the judgment creditor's last known attorney as shown in those pleadings or another court record; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c52/scA/s52.0012/4">
<num value="4">(4)</num>
<content>the address of the judgment creditor's last known attorney as shown in the records of the State Bar of Texas, if that address is different from the address of the attorney as shown in those pleadings or another court record.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c52/scA/s52.0012/c">
<num value="c">(c)</num>
<content>Subject to Subsection (d) and except as provided by Subsection (e), an affidavit filed under Subsection (b) serves as a release of record of a judgment lien established under this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c52/scA/s52.0012/d">
<num value="d">(d)</num>
<content>If a judgment debtor has filed a certificate of mailing under Subsection (b) and a contradicting affidavit is not filed under Subsection (e), a bona fide purchaser or a mortgagee for value or a successor or assign of a bona fide purchaser or mortgagee for value may rely conclusively on an affidavit filed under Subsection (b) for the 90-day period that begins on the 31st day after the date the certificate of mailing was filed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c52/scA/s52.0012/e">
<num value="e">(e)</num>
<chapeau>An affidavit filed under Subsection (b) does not serve as release of record of a judgment lien established under this chapter with respect to a purchaser or mortgagee of real property that acquires the purchaser's or mortgagee's interest from the judgment debtor if, not later than the 30th day after the date a certificate of mailing was filed under Subsection (b), the judgment creditor files a contradicting affidavit in the real property records of the county in which the real property is located asserting that:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c52/scA/s52.0012/1">
<num value="1">(1)</num>
<content>the affidavit or certificate of mailing filed by the judgment debtor under Subsection (b) is untrue; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c52/scA/s52.0012/2">
<num value="2">(2)</num>
<content>another reason exists as to why the judgment lien attaches to the judgment debtor's property.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c52/scA/s52.0012/f">
<num value="f">(f)</num>
<content>An affidavit filed under Subsection (b) must be in substantially the following form:</content>
</subsection>
<sourceCredit>HOMESTEAD AFFIDAVIT AS RELEASE OF JUDGMENT LIEN
Before me, the undersigned authority, on this day personally appeared __________ ("Affiant(s)") (insert name of one or more affiants) who, being first duly sworn, upon oath states:
(1) My/our name is/are __________ (insert name of Affiant(s)). I/we own the following described land ("Land"):
(describe the property claimed as homestead)
(2) This affidavit is made for the purpose of effecting a release of that judgment lien recorded in __________ (refer to recording information of judgment lien) ("Judgment Lien") as to the Land.
(3) The Land includes as its purpose use for a home for Affiant(s) and is the homestead of Affiant(s), as homestead is defined in Section 41.002, Property Code. The Land does not exceed:
(A) 10 acres of land, if used for the purposes of an urban home or as both an urban home and a place to exercise a calling or business; or
(B) 200 acres for a family or 100 acres for a single, adult person not otherwise entitled to a homestead, if used for the purposes of a rural home.
(4) This affidavit serves as a release of the Judgment Lien as to the Land in accordance with Section 52.0012, Property Code.
Signed on this _____ day of __________, _____.
____________________
____________________
(Signature of Affiant(s))
State of __________
County of __________
SWORN TO AND SUBSCRIBED before me on the _________ day of __________, 20___.
My commission expires:
______________________
_______________________________
Notary Public, State of Texas
Notary's printed name:
________________________________
(g) A certificate of mailing filed under Subsection (b) must be in substantially the following form:
CERTIFICATE OF MAILING OF HOMESTEAD AFFIDAVIT AS RELEASE OF JUDGMENT LIEN
Before me, the undersigned authority, on this day personally appeared __________ ("Affiant(s)") (insert name(s) of Affiant(s)) who, being first duly sworn, upon oath state(s):
(1) My name is/Our names are __________ (insert name(s) of Affiant(s)).
(2) On the ____ day of __________, 20__, Affiant(s) caused a Homestead Affidavit as Release of Judgment Lien to be recorded in __________ (refer to affidavit recording information) ("Affidavit").
(3) On the ____ day of __________, 20__, Affiant(s) sent a letter and a copy of the Affidavit, notifying the judgment creditor of the Affiant's homestead claim and the filing of the Affidavit, by registered or certified mail, return receipt requested, to:
(A) the judgment creditor's last known address;
(B) the address appearing in the judgment creditor's pleadings in the action in which the judgment was rendered or another court record, if that address is different from the judgment creditor's last known address;
(C) the address of the judgment creditor's last known attorney as shown in those pleadings or another court record; and
(D) the address of the judgment creditor's last known attorney as shown in the records of the State Bar of Texas, if that address is different from the address of the attorney as shown in those pleadings or another court record.
(4) Attached to this certificate are:
(A) a true and correct copy of the letter described by Subdivision (3) of this certificate; and
(B) proof of mailing of the letter described by Subdivision (3) of this certificate.
Signed on the _____ day of __________, 20 _____.
____________________
____________________
(Signature of Affiant(s))
State of __________
County of __________
SWORN TO AND SUBSCRIBED before me on the _________ day of __________, 20___.
My commission expires:
______________________
_______________________________
Notary Public, State of Texas
Notary's printed name:
________________________________
Added by Acts 2007, 80th Leg., R.S., Ch. 374 (S.B. 512), Sec. 2, eff. September 1, 2007.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 893 (H.B. 3115), Sec. 1, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c52/scA/s52.002">
<num value="52.002">Sec. 52.002.</num>
<heading>ISSUANCE OF ABSTRACT</heading>
<subsection identifier="/us/tx/pr/t5/c52/scA/s52.002/a">
<num value="a">(a)</num>
<content>On application of a person in whose favor a judgment is rendered or on application of that person's agent, attorney, or assignee, the judge or justice of the peace who rendered the judgment or the clerk of the court in which the judgment is rendered shall prepare, certify, and deliver to the applicant an abstract of the judgment. The applicant for the abstract must pay the fee authorized by law for providing the abstract.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c52/scA/s52.002/b">
<num value="b">(b)</num>
<content>The attorney of a person in whose favor a judgment is rendered in a small claims court or a justice court or a person in whose favor a judgment is rendered in a court other than a small claims court or a justice court or that person's agent, attorney, or assignee may prepare the abstract of judgment. An abstract of judgment prepared under this subsection must be verified by the person preparing the abstract.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3527, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1987, 70th Leg., ch. 663, Sec. 2, eff. Sept. 1, 1987; Acts 1999, 76th Leg., ch. 176, Sec. 1, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 668, Sec. 2, eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c52/scA/s52.003">
<num value="52.003">Sec. 52.003.</num>
<heading>CONTENTS OF ABSTRACT</heading>
<subsection identifier="/us/tx/pr/t5/c52/scA/s52.003/a">
<num value="a">(a)</num>
<chapeau>An abstract of a judgment must show:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c52/scA/s52.003/1">
<num value="1">(1)</num>
<content>the names of the plaintiff and defendant;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c52/scA/s52.003/2">
<num value="2">(2)</num>
<content>the birthdate of the defendant, if available to the clerk or justice;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c52/scA/s52.003/3">
<num value="3">(3)</num>
<content>the last three numbers of the driver's license of the defendant, if available;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c52/scA/s52.003/4">
<num value="4">(4)</num>
<content>the last three numbers of the social security number of the defendant, if available;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c52/scA/s52.003/5">
<num value="5">(5)</num>
<content>the number of the suit in which the judgment was rendered;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c52/scA/s52.003/6">
<num value="6">(6)</num>
<content>the defendant's address, or if the address is not shown in the suit, the nature of citation and the date and place of service of citation;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c52/scA/s52.003/7">
<num value="7">(7)</num>
<content>the date on which the judgment was rendered;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c52/scA/s52.003/8">
<num value="8">(8)</num>
<content>the amount for which the judgment was rendered and the balance due;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c52/scA/s52.003/9">
<num value="9">(9)</num>
<content>the amount of the balance due, if any, for child support arrearage; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c52/scA/s52.003/10">
<num value="10">(10)</num>
<content>the rate of interest specified in the judgment.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c52/scA/s52.003/b">
<num value="b">(b)</num>
<content>An abstract of a judgment may show a mailing address for each plaintiff or judgment creditor.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3527, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1991, 72nd Leg., 1st C.S., ch. 15, Sec. 4.08, eff. Sept. 1, 1991; Acts 1993, 73rd Leg., ch. 134, Sec. 2, eff. May 12, 1993.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 143 (S.B. 699), Sec. 2, eff. September 1, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c52/scA/s52.004">
<num value="52.004">Sec. 52.004.</num>
<heading>RECORDING AND INDEXING OF ABSTRACT</heading>
<subsection identifier="/us/tx/pr/t5/c52/scA/s52.004/a">
<num value="a">(a)</num>
<content>The county clerk shall immediately record in the county real property records each properly authenticated abstract of judgment that is presented for recording. The clerk shall note in the records the date and hour an abstract of judgment is received.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c52/scA/s52.004/b">
<num value="b">(b)</num>
<chapeau>At the same time an abstract is recorded, the county clerk shall enter the abstract on the alphabetical index to the real property records, showing:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c52/scA/s52.004/1">
<num value="1">(1)</num>
<content>the name of each plaintiff in the judgment;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c52/scA/s52.004/2">
<num value="2">(2)</num>
<content>the name of each defendant in the judgment; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c52/scA/s52.004/3">
<num value="3">(3)</num>
<content>the volume and page or instrument number in the records in which the abstract is recorded.</content>
</paragraph>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3527, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 2001, 77th Leg., ch. 668, Sec. 2, eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c52/scA/s52.0041">
<num value="52.0041">Sec. 52.0041.</num>
<heading>ADDRESS REQUIREMENT FOR RECORDING ABSTRACT</heading>
<subsection identifier="/us/tx/pr/t5/c52/scA/s52.0041/a">
<num value="a">(a)</num>
<chapeau>A judgment abstracted after September 1, 1993, may not be recorded unless:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c52/scA/s52.0041/1">
<num value="1">(1)</num>
<content>a mailing address for each plaintiff or judgment creditor appears on the abstract of judgment; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c52/scA/s52.0041/2">
<num value="2">(2)</num>
<content>a penalty filing fee equal to the greater of $25 or twice the statutory recording fee for the abstract is paid.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c52/scA/s52.0041/b">
<num value="b">(b)</num>
<content>The validity of an abstracted judgment as between the parties is not affected by a failure to include an address for each plaintiff or judgment creditor in the abstracted judgment.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c52/scA/s52.0041/c">
<num value="c">(c)</num>
<content>Payment of a filing fee and acceptance of the abstract of judgment by a county clerk for recording creates a conclusive presumption that the requirements of this section have been met.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 134, Sec. 1, eff. May 12, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c52/scA/s52.005">
<num value="52.005">Sec. 52.005.</num>
<heading>SATISFACTION OF JUDGMENT</heading>
<chapeau>Satisfaction of a judgment in whole or in part may be shown by recordation of:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c52/scA/s52.005/1">
<num value="1">(1)</num>
<chapeau>a return on an execution issued on the judgment, or a copy of the return, certified by the officer making the return and showing:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c52/scA/s52.005/A">
<num value="A">(A)</num>
<content>the names of the parties to the judgment;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c52/scA/s52.005/B">
<num value="B">(B)</num>
<content>the number and style of the suit;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c52/scA/s52.005/C">
<num value="C">(C)</num>
<content>the court in which the judgment was rendered;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c52/scA/s52.005/D">
<num value="D">(D)</num>
<content>the date and amount of the judgment; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c52/scA/s52.005/E">
<num value="E">(E)</num>
<content>the dates of issuance and return of the execution; or</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c52/scA/s52.005/2">
<num value="2">(2)</num>
<content>a receipt, acknowledgement, or release that is signed by the party entitled to receive payment of the judgment or by that person's agent or attorney of record and that is acknowledged or proven for record in the manner required for deeds.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3528, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 2001, 77th Leg., ch. 668, Sec. 2, eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c52/scA/s52.006">
<num value="52.006">Sec. 52.006.</num>
<heading>DURATION OF LIEN</heading>
<subsection identifier="/us/tx/pr/t5/c52/scA/s52.006/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (b), a judgment lien continues for 10 years following the date of recording and indexing the abstract, except that if the judgment becomes dormant during that period the lien ceases to exist.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c52/scA/s52.006/b">
<num value="b">(b)</num>
<content>Notwithstanding Section 34.001, Civil Practice and Remedies Code, a judgment in favor of the state or a state agency, as that term is defined by Section 403.055, Government Code, does not become dormant. A properly filed abstract of the judgment continues to constitute a lien under Section 52.001 until the earlier of the 20th anniversary of the date the abstract is recorded and indexed or the date the judgment is satisfied or the lien is released. The judgment lien may be renewed for one additional 20-year period by filing, before the expiration of the initial 20-year period, a renewed abstract of judgment in the same manner as the original abstract of judgment is filed. The renewed judgment lien relates back to the date the original abstract of judgment was filed.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3528, ch. 576, Sec. 1, eff. Jan. 1, 1984.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 11 (S.B. 300), Sec. 1, eff. April 23, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c52/scA/s52.007">
<num value="52.007">Sec. 52.007.</num>
<heading>FEDERAL COURT JUDGMENT</heading>
<content>An abstract of a judgment rendered in this state by a federal court may be recorded and indexed under this chapter on the certificate of the clerk of the court.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3528, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t5/c52/scB">
<num value="B">SUBCHAPTER B.</num>
<heading>CANCELLATION OF JUDGMENTS AND JUDGMENT LIENS AGAINST BANKRUPTS--ABSTRACT RECORDED BEFORE SEPTEMBER 1, 1993</heading>
<section identifier="/us/tx/pr/t5/c52/scB/s52.021">
<num value="52.021">Sec. 52.021.</num>
<heading>DISCHARGE AND CANCELLATION</heading>
<subsection identifier="/us/tx/pr/t5/c52/scB/s52.021/a">
<num value="a">(a)</num>
<content>In accordance with this subchapter, a judgment and judgment lien may be discharged and canceled if the person against whom the judgment was rendered is discharged from his debts under federal bankruptcy law.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c52/scB/s52.021/b">
<num value="b">(b)</num>
<content>This subchapter applies to judgments against persons whose debts are discharged in bankruptcy and for which the abstracts of judgment are recorded before September 1, 1993, as provided by Subchapter A, regardless of the fact that the discharge in bankruptcy occurred before this law took effect.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3529, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1993, 73rd Leg., ch. 313, Sec. 2, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c52/scB/s52.022">
<num value="52.022">Sec. 52.022.</num>
<heading>APPLICATION FOR COURT ORDER</heading>
<subsection identifier="/us/tx/pr/t5/c52/scB/s52.022/a">
<num value="a">(a)</num>
<content>The person who has been discharged from his debts, that person's receiver or trustee, or any other interested person may apply, on proof of the discharge, to the court in which the judgment was rendered for an order discharging and canceling the judgment and judgment lien.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c52/scB/s52.022/b">
<num value="b">(b)</num>
<content>A person may not apply for the order before a year has elapsed since the bankruptcy discharge.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3529, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c52/scB/s52.023">
<num value="52.023">Sec. 52.023.</num>
<heading>NOTICE OF APPLICATION</heading>
<subsection identifier="/us/tx/pr/t5/c52/scB/s52.023/a">
<num value="a">(a)</num>
<content>Notice of the application for the order and copies of the papers on which application is made must be served on the judgment creditor or his attorney of record in the action in which the judgment was rendered.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c52/scB/s52.023/b">
<num value="b">(b)</num>
<content>If the residence or place of business of the judgment creditor or his attorney is known, notice must be served in the manner prescribed for service of notice in an action.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c52/scB/s52.023/c">
<num value="c">(c)</num>
<chapeau>As an alternative to service under Subsection (b), the court may order that notice of the application be published in a newspaper designated in the order once a week for not more than three consecutive weeks if the applicant proves by affidavit that:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c52/scB/s52.023/1">
<num value="1">(1)</num>
<content>the address of neither the judgment creditor nor his attorney is known and the address of neither can be ascertained by due diligence; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c52/scB/s52.023/2">
<num value="2">(2)</num>
<content>the judgment creditor is not a resident of this state and his attorney is dead, removed from the state, or unknown.</content>
</paragraph>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3529, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c52/scB/s52.024">
<num value="52.024">Sec. 52.024.</num>
<heading>COURT ORDER</heading>
<subsection identifier="/us/tx/pr/t5/c52/scB/s52.024/a">
<num value="a">(a)</num>
<content>The court shall conduct a hearing on the application and shall enter an order of discharge and cancellation of the judgment and any abstracts of the judgment if the debtor or bankrupt has been discharged in bankruptcy from the payment of the obligation or debt represented by the judgment.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c52/scB/s52.024/b">
<num value="b">(b)</num>
<content>In each county in which the court's order is recorded in the judgment lien records, the order constitutes a release, discharge, and cancellation of the judgment and of any unsatisfied judgment lien represented by an abstract that is of record in the county on the date of the order or is recorded in the county on or after the date of the order.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3530, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c52/scB/s52.025">
<num value="52.025">Sec. 52.025.</num>
<heading>EFFECT ON LIEN OF DISCHARGE OF DEBT IN BANKRUPTCY</heading>
<subsection identifier="/us/tx/pr/t5/c52/scB/s52.025/a">
<num value="a">(a)</num>
<chapeau>A judgment lien is not affected by the order of discharge and cancellation and may be enforced, if the lien is against real property owned by the bankrupt or debtor before the debtor was adjudged bankrupt or a petition for debtor relief was filed under federal bankruptcy law, and:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c52/scB/s52.025/1">
<num value="1">(1)</num>
<content>the debt or obligation evidenced by the judgment is not discharged in bankruptcy; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c52/scB/s52.025/2">
<num value="2">(2)</num>
<content>the property is nonexempt and is abandoned during the course of the proceeding.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c52/scB/s52.025/b">
<num value="b">(b)</num>
<content>Except as provided by Subsection (a), the judgment is of no force or validity and may not be a lien on real property acquired by the bankrupt or debtor after the discharge in bankruptcy.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3530, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t5/c52/scC">
<num value="C">SUBCHAPTER C.</num>
<heading>CANCELLATION OF JUDGMENTS AND JUDGMENT LIENS AGAINST DEBTORS--ABSTRACT RECORDED ON OR AFTER SEPTEMBER 1, 1993</heading>
<section identifier="/us/tx/pr/t5/c52/scC/s52.041">
<num value="52.041">Sec. 52.041.</num>
<heading>APPLICATION OF SUBCHAPTER</heading>
<content>This subchapter applies to a judgment and judgment lien for which an abstract of judgment or judgment lien is recorded on or after September 1, 1993.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 313, Sec. 3, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c52/scC/s52.042">
<num value="52.042">Sec. 52.042.</num>
<heading>DISCHARGE AND CANCELLATION</heading>
<subsection identifier="/us/tx/pr/t5/c52/scC/s52.042/a">
<num value="a">(a)</num>
<chapeau>A judgment is discharged and any abstract of judgment or judgment lien is canceled and released without further action in any court and may not be enforced if:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c52/scC/s52.042/1">
<num value="1">(1)</num>
<content>the lien is against real property owned by the debtor before a petition for debtor relief was filed under federal bankruptcy law; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c52/scC/s52.042/2">
<num value="2">(2)</num>
<content>the debt or obligation evidenced by the judgment is discharged in the bankruptcy.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c52/scC/s52.042/b">
<num value="b">(b)</num>
<content>A judgment evidencing a debt or obligation discharged in bankruptcy does not have force or validity and may not be a lien on real property acquired by the debtor after the petition for debtor relief was filed.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 313, Sec. 3, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c52/scC/s52.043">
<num value="52.043">Sec. 52.043.</num>
<heading>EXCEPTIONS TO DISCHARGE AND CANCELLATION</heading>
<chapeau>A judgment lien is not affected by this subchapter and may be enforced if the lien is against real property owned by the debtor before a petition for debtor relief was filed under federal bankruptcy law and:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c52/scC/s52.043/1">
<num value="1">(1)</num>
<content>the debt or obligation evidenced by the judgment is not discharged in bankruptcy; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c52/scC/s52.043/2">
<num value="2">(2)</num>
<content>the property is not exempted in the bankruptcy and is abandoned during the bankruptcy.</content>
</paragraph>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 313, Sec. 3, eff. Sept. 1, 1993.</sourceCredit>
</section>
</subchapter>
</chapter>
<chapter identifier="/us/tx/pr/t5/c53">
<num value="53">CHAPTER 53.</num>
<heading>MECHANIC'S, CONTRACTOR'S, OR MATERIALMAN'S LIEN</heading>
<subchapter identifier="/us/tx/pr/t5/c53/scA">
<num value="A">SUBCHAPTER A.</num>
<heading>GENERAL PROVISIONS</heading>
<section identifier="/us/tx/pr/t5/c53/scA/s53.001">
<num value="53.001">Sec. 53.001.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scA/s53.001/1">
<num value="1">(1)</num>
<content>"Contract price" means the cost to the owner for any part of construction or repair performed under an original contract.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scA/s53.001/2">
<num value="2">(2)</num>
<chapeau>"Improvement" includes:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c53/scA/s53.001/A">
<num value="A">(A)</num>
<content>a house, building, structure, parking structure, physical appurtenance, pool, utility, railroad, well, storage facility, abutting sidewalks and streets, utilities in or on those sidewalks and streets, land reclaimed from overflow, and other fixtures or modifications to real property;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c53/scA/s53.001/B">
<num value="B">(B)</num>
<content>clearing, grubbing, draining, or fencing of land;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c53/scA/s53.001/C">
<num value="C">(C)</num>
<content>machinery or apparatuses used for raising water or for supplying or storing water for stock, domestic use, or irrigation;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c53/scA/s53.001/D">
<num value="D">(D)</num>
<content>work described by Section 53.021(4); and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c53/scA/s53.001/E">
<num value="E">(E)</num>
<content>a design, drawing, plan, plat, survey, or specification provided by a licensed architect, engineer, or surveyor.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scA/s53.001/3">
<num value="3">(3)</num>
<chapeau>"Labor" means:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c53/scA/s53.001/A">
<num value="A">(A)</num>
<content>labor used in the direct performance of the work; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c53/scA/s53.001/B">
<num value="B">(B)</num>
<content>a professional service used in the direct preparation for the work of a design, drawing, plan, plat, survey, or specification.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scA/s53.001/4">
<num value="4">(4)</num>
<chapeau>"Material" means all or part of:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c53/scA/s53.001/A">
<num value="A">(A)</num>
<content>the material, machinery, fixtures, or tools:</content>
</subparagraph>
</paragraph>
<subsection identifier="/us/tx/pr/t5/c53/scA/s53.001/i">
<num value="i">(i)</num>
<chapeau>incorporated into the work;</chapeau>
<clause identifier="/us/tx/pr/t5/c53/scA/s53.001/ii">
<num value="ii">(ii)</num>
<content>used in the direct performance of the work;</content>
</clause>
<clause identifier="/us/tx/pr/t5/c53/scA/s53.001/iii">
<num value="iii">(iii)</num>
<content>specially fabricated for an improvement; or</content>
</clause>
<clause identifier="/us/tx/pr/t5/c53/scA/s53.001/iv">
<num value="iv">(iv)</num>
<content>ordered and delivered for incorporation or use;</content>
</clause>
<subparagraph identifier="/us/tx/pr/t5/c53/scA/s53.001/B">
<num value="B">(B)</num>
<content>rent at a reasonable rate and actual running repairs at a reasonable cost for construction equipment used or reasonably required and delivered for use in the direct performance of the work at the site of the construction or repair; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c53/scA/s53.001/C">
<num value="C">(C)</num>
<content>power, water, fuel, and lubricants consumed or ordered and delivered for consumption in the direct performance of the work.</content>
</subparagraph>
<paragraph identifier="/us/tx/pr/t5/c53/scA/s53.001/5">
<num value="5">(5)</num>
<content>"Mechanic's lien" means the lien provided by this chapter.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scA/s53.001/6">
<num value="6">(6)</num>
<content>"Original contract" means an agreement to which an owner is a party either directly or by implication of law.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scA/s53.001/7">
<num value="7">(7)</num>
<content>"Original contractor" means a person contracting with an owner either directly or through the owner's agent.</content>
<continuation>(7-a) "Purported original contractor" means an original contractor who can effectively control the owner or is effectively controlled by the owner through common ownership of voting stock or ownership interests, interlocking directorships, common management, or otherwise, or who was engaged by the owner for the construction or repair of improvements without a good faith intention of the parties that the purported original contractor was to perform under the contract. For purposes of this subdivision, the term "owner" does not include a person who has or claims a security interest only.</continuation>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scA/s53.001/8">
<num value="8">(8)</num>
<chapeau>"Residence" means the real property and improvements for a single-family house, duplex, triplex, or quadruplex or a unit in a multiunit structure used for residential purposes in which title to the individual units is transferred to the owners under a condominium or cooperative system that is:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c53/scA/s53.001/A">
<num value="A">(A)</num>
<content>owned by one or more adult persons; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c53/scA/s53.001/B">
<num value="B">(B)</num>
<content>used or intended to be used as a dwelling by one of the owners.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scA/s53.001/9">
<num value="9">(9)</num>
<content>"Residential construction contract" means a contract between an owner and a contractor in which the contractor agrees to construct or repair the owner's residence, including improvements appurtenant to the residence.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scA/s53.001/10">
<num value="10">(10)</num>
<content>"Residential construction project" means a project for the construction or repair of a new or existing residence, including improvements appurtenant to the residence, as provided by a residential construction contract.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scA/s53.001/11">
<num value="11">(11)</num>
<content>"Retainage" means an amount representing part of a contract payment that is not required to be paid to the claimant within the month following the month in which labor is performed, material is furnished, or specially fabricated material is delivered.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scA/s53.001/12">
<num value="12">(12)</num>
<content>"Specially fabricated material" means material fabricated for use as a component of the construction or repair so as to be reasonably unsuitable for use elsewhere.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scA/s53.001/13">
<num value="13">(13)</num>
<content>"Subcontractor" means a person who labors or has furnished labor or materials to fulfill an obligation to an original contractor or to a subcontractor of any tier to perform all or part of the work required by an original contract.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scA/s53.001/14">
<num value="14">(14)</num>
<content>"Work" means any part of construction or repair of an improvement performed under an original contract.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scA/s53.001/15">
<num value="15">(15)</num>
<content>"Completion" of an original contract means the actual completion of the work, including any extras or change orders reasonably required or contemplated under the original contract, other than warranty work or replacement or repair of the work performed under the contract.</content>
</paragraph>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3533, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1997, 75th Leg., ch. 526, Sec. 2, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 889, Sec. 1, eff. Sept. 1, 1999.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 2, eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scA/s53.002">
<num value="53.002">Sec. 53.002.</num>
<heading>MORE THAN ONE ORIGINAL CONTRACTOR</heading>
<content>On any work there may be more than one original contractor for purposes of this chapter.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3535, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scA/s53.003">
<num value="53.003">Sec. 53.003.</num>
<heading>NOTICES</heading>
<subsection identifier="/us/tx/pr/t5/c53/scA/s53.003/a">
<num value="a">(a)</num>
<content>Repealed by Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 36(1), eff. January 1, 2022.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scA/s53.003/b">
<num value="b">(b)</num>
<chapeau>Except as provided by Subsection (c) or (d), any notice or other written communication required by this chapter must be delivered:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scA/s53.003/1">
<num value="1">(1)</num>
<content>in person to the party entitled to the notice or to that party's agent;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scA/s53.003/2">
<num value="2">(2)</num>
<content>by certified mail; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scA/s53.003/3">
<num value="3">(3)</num>
<content>by any other form of traceable, private delivery or mailing service that can confirm proof of receipt.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scA/s53.003/c">
<num value="c">(c)</num>
<content>If notice is sent by certified mail, deposit or mailing of the notice in the United States mail in the form required constitutes compliance with the notice requirement. This subsection does not apply if the law requires receipt of the notice by the person to whom it is directed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scA/s53.003/d">
<num value="d">(d)</num>
<content>If a written notice is received by the person entitled to receive it, the method by which the notice was delivered is immaterial.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scA/s53.003/e">
<num value="e">(e)</num>
<content>In determining the deadline or computing the period of days in which to provide a notice or to take any action required under this chapter, if the deadline or the last day of the period is a Saturday, Sunday, or legal holiday, the period is extended to include the next day that is not a Saturday, Sunday, or legal holiday.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3535, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1997, 75th Leg., ch. 526, Sec. 3, eff. Sept. 1, 1997.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 3, eff. January 1, 2022.
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 36(1), eff. January 1, 2022.
Acts 2025, 89th Leg., R.S., Ch. 98 (S.B. 929), Sec. 1, eff. May 21, 2025.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t5/c53/scB">
<num value="B">SUBCHAPTER B.</num>
<heading>PERSONS ENTITLED TO LIEN; SUBJECT PROPERTY</heading>
<section identifier="/us/tx/pr/t5/c53/scB/s53.021">
<num value="53.021">Sec. 53.021.</num>
<heading>PERSONS ENTITLED TO LIEN</heading>
<chapeau>A person has a lien if the person, under a contract with the owner or the owner's agent, trustee, receiver, contractor, or subcontractor:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scB/s53.021/1">
<num value="1">(1)</num>
<content>labors or furnishes labor or materials for construction or repair of an improvement;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scB/s53.021/2">
<num value="2">(2)</num>
<content>specially fabricates material, even if the material is not delivered;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scB/s53.021/3">
<num value="3">(3)</num>
<content>is a licensed architect, engineer, or surveyor providing services to prepare a design, drawing, plan, plat, survey, or specification;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scB/s53.021/4">
<num value="4">(4)</num>
<content>provides labor, plant material, or other supplies for the installation of landscaping for an improvement, including the construction of a retention pond, retaining wall, berm, irrigation system, fountain, or other similar installation; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scB/s53.021/5">
<num value="5">(5)</num>
<content>performs labor as part of, or furnishes labor or materials for, the demolition of an improvement on real property.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3535, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 395, Sec. 1, eff. Sept. 1, 1989; Acts 1989, 71st Leg., ch. 1138, Sec. 1, eff. Sept. 1, 1989; Acts 1991, 72nd Leg., ch. 16, Sec. 16.01, eff. Aug. 26, 1991; Acts 1995, 74th Leg., ch. 851, Sec. 1, 6, eff. Sept. 1, 1995; Acts 1999, 76th Leg., ch. 896, Sec. 1, eff. Sept. 1, 1999; Acts 2003, 78th Leg., ch. 410, Sec. 1, eff. Sept. 1, 2003.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 271 (H.B. 1456), Sec. 1, eff. January 1, 2012.
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 4, eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scB/s53.022">
<num value="53.022">Sec. 53.022.</num>
<heading>PROPERTY TO WHICH LIEN EXTENDS</heading>
<subsection identifier="/us/tx/pr/t5/c53/scB/s53.022/a">
<num value="a">(a)</num>
<content>The lien extends to the improvements and to each lot of land necessarily connected.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scB/s53.022/b">
<num value="b">(b)</num>
<content>The lien does not extend to abutting sidewalks, streets, and utilities that are public property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scB/s53.022/c">
<num value="c">(c)</num>
<content>A lien against land in a city, town, or village extends to each lot on which the improvement is situated or on which the labor was performed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scB/s53.022/d">
<num value="d">(d)</num>
<content>A lien against land not in a city, town, or village extends to not more than 50 acres on which the improvement is situated or on which the labor was performed.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3536, ch. 576, Sec. 1, eff. Jan. 1, 1984.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 5, eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scB/s53.023">
<num value="53.023">Sec. 53.023.</num>
<heading>PAYMENT SECURED BY LIEN</heading>
<chapeau>The lien secures payment for:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scB/s53.023/1">
<num value="1">(1)</num>
<content>the labor done or material furnished for the construction, repair, design, survey, or demolition; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scB/s53.023/2">
<num value="2">(2)</num>
<content>the specially fabricated material, even if the material has not been delivered or incorporated into the construction or repair, less its fair salvage value.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3536, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1995, 74th Leg., ch. 851, Sec. 2, eff. Sept. 1, 1995.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 6, eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scB/s53.024">
<num value="53.024">Sec. 53.024.</num>
<heading>LIMITATION ON SUBCONTRACTOR'S LIEN</heading>
<chapeau>The amount of a lien claimed by a subcontractor may not exceed:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scB/s53.024/1">
<num value="1">(1)</num>
<content>an amount equal to the proportion of the total subcontract price that the sum of the labor performed, materials furnished, materials specially fabricated, reasonable overhead costs incurred, and proportionate profit margin bears to the total subcontract price; minus</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scB/s53.024/2">
<num value="2">(2)</num>
<content>the sum of previous payments received by the claimant on the subcontract.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3536, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scB/s53.025">
<num value="53.025">Sec. 53.025.</num>
<heading>LIMITATION ON ORDINARY RETAINAGE LIEN</heading>
<content>A lien for retainage is valid only for the amount specified to be retained in the contract, including any amendments to the contract, between the claimant and the original contractor or between the claimant and a subcontractor.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3537, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 1138, Sec. 2, eff. Sept. 1, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scB/s53.026">
<num value="53.026">Sec. 53.026.</num>
<heading>SHAM CONTRACT</heading>
<subsection identifier="/us/tx/pr/t5/c53/scB/s53.026/a">
<num value="a">(a)</num>
<content>A person who labors or furnishes labor or materials under a direct contractual relationship with a purported original contractor is considered to be an original contractor for purposes of perfecting a mechanic's lien.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scB/s53.026/b">
<num value="b">(b)</num>
<content>Repealed by Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 36(2), eff. January 1, 2022.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3537, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 1138, Sec. 3, eff. Sept. 1, 1989; Acts 1997, 75th Leg., ch. 526, Sec. 4, eff. Sept. 1, 1997.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 7, eff. January 1, 2022.
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 36(2), eff. January 1, 2022.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t5/c53/scC">
<num value="C">SUBCHAPTER C.</num>
<heading>PROCEDURE FOR PERFECTING LIEN</heading>
<section identifier="/us/tx/pr/t5/c53/scC/s53.051">
<num value="53.051">Sec. 53.051.</num>
<heading>NECESSARY PROCEDURES</heading>
<content>To perfect the lien, a person must comply with this subchapter.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3538, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scC/s53.052">
<num value="53.052">Sec. 53.052.</num>
<heading>FILING OF AFFIDAVIT</heading>
<subsection identifier="/us/tx/pr/t5/c53/scC/s53.052/a">
<num value="a">(a)</num>
<chapeau>An original contractor claiming the lien must file an affidavit with the county clerk:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scC/s53.052/1">
<num value="1">(1)</num>
<content>for projects other than residential construction projects, not later than the 15th day of the fourth month after the month in which the original contractor's work was completed, terminated, or abandoned; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scC/s53.052/2">
<num value="2">(2)</num>
<content>for residential construction projects, not later than the 15th day of the third month after the month in which the original contractor's work was completed, terminated, or abandoned.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scC/s53.052/b">
<num value="b">(b)</num>
<chapeau>Except as provided by Subsection (c) or (d), a claimant other than an original contractor claiming the lien must file an affidavit with the county clerk not later than the 15th day of the fourth month after the later of:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scC/s53.052/1">
<num value="1">(1)</num>
<content>the month the claimant last provided labor or materials; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scC/s53.052/2">
<num value="2">(2)</num>
<content>the month the claimant would normally have been required to deliver the last of specially fabricated materials that have not been actually delivered.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scC/s53.052/c">
<num value="c">(c)</num>
<chapeau>A claimant other than an original contractor claiming a lien arising from a residential construction project must file an affidavit with the county clerk not later than the 15th day of the third month after the later of:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scC/s53.052/1">
<num value="1">(1)</num>
<content>the month the claimant last provided labor or materials; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scC/s53.052/2">
<num value="2">(2)</num>
<content>the month the claimant would normally have been required to deliver the last of specially fabricated materials that have not been actually delivered.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scC/s53.052/d">
<num value="d">(d)</num>
<content>A claimant other than an original contractor claiming a lien for retainage must file an affidavit with the county clerk not later than the 15th day of the third month after the month in which the original contract under which the claimant performed was completed, terminated, or abandoned.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scC/s53.052/e">
<num value="e">(e)</num>
<content>An affidavit under this chapter must be filed in the county where the improvements are located. The county clerk shall record the affidavit in records kept for that purpose and shall index and cross-index the affidavit in the names of the claimant, the original contractor, and the owner. Failure of the county clerk to properly record or index a filed affidavit does not invalidate the lien.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3538, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 1138, Sec. 4, eff. Sept. 1, 1989; Acts 1997, 75th Leg., ch. 526, Sec. 5, eff. Sept. 1, 1997.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 8, eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scC/s53.054">
<num value="53.054">Sec. 53.054.</num>
<heading>CONTENTS OF AFFIDAVIT</heading>
<subsection identifier="/us/tx/pr/t5/c53/scC/s53.054/a">
<num value="a">(a)</num>
<chapeau>The affidavit must be signed by the person claiming the lien or by another person on the claimant's behalf and must contain substantially:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scC/s53.054/1">
<num value="1">(1)</num>
<content>a sworn statement of the amount of the claim;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scC/s53.054/2">
<num value="2">(2)</num>
<content>the name and last known address of the owner or reputed owner;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scC/s53.054/3">
<num value="3">(3)</num>
<content>a general statement of the kind of work done and materials furnished by the claimant and, for a claimant other than an original contractor, a statement of each month in which the work was done and materials furnished for which payment is requested;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scC/s53.054/4">
<num value="4">(4)</num>
<content>the name and last known address of the person by whom the claimant was employed or to whom the claimant furnished the materials or labor;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scC/s53.054/5">
<num value="5">(5)</num>
<content>the name and last known address of the original contractor;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scC/s53.054/6">
<num value="6">(6)</num>
<content>a description, legally sufficient for identification, of the property sought to be charged with the lien;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scC/s53.054/7">
<num value="7">(7)</num>
<content>the claimant's name, mailing address, and, if different, physical address; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scC/s53.054/8">
<num value="8">(8)</num>
<content>for a claimant other than an original contractor, a statement identifying the date each notice of the claim was sent to the owner and the method by which the notice was sent.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scC/s53.054/b">
<num value="b">(b)</num>
<content>The claimant may attach to the affidavit a copy of any applicable written agreement or contract and a copy of each notice sent to the owner.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scC/s53.054/c">
<num value="c">(c)</num>
<content>The affidavit is not required to set forth individual items of work done or material furnished or specially fabricated. The affidavit may use any abbreviations or symbols customary in the trade.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3540, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 1138, Sec. 6, eff. Sept. 1, 1989; Acts 1997, 75th Leg., ch. 526, Sec. 6, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scC/s53.055">
<num value="53.055">Sec. 53.055.</num>
<heading>NOTICE OF FILED AFFIDAVIT</heading>
<subsection identifier="/us/tx/pr/t5/c53/scC/s53.055/a">
<num value="a">(a)</num>
<content>A person who files an affidavit must send a copy of the affidavit to the owner or reputed owner at the owner's last known business or residence address not later than the fifth day after the date the affidavit is filed with the county clerk.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scC/s53.055/b">
<num value="b">(b)</num>
<content>If the person is not an original contractor, the person must also send a copy of the affidavit to the original contractor at the original contractor's last known business or residence address within the same period.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3540, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 1138, Sec. 7, eff. Sept. 1, 1989; Acts 1993, 73rd Leg., ch. 48, Sec. 7, eff. Sept. 1, 1993; Acts 1997, 75th Leg., ch. 526, Sec. 7, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 889, Sec. 2, eff. Sept. 1, 1999.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 9, eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scC/s53.056">
<num value="53.056">Sec. 53.056.</num>
<heading>DERIVATIVE CLAIMANT: NOTICE TO OWNER AND ORIGINAL CONTRACTOR</heading>
<subsection identifier="/us/tx/pr/t5/c53/scC/s53.056/a">
<num value="a">(a)</num>
<content>Except as provided by Section 53.057, a claimant other than an original contractor must give the notice prescribed by Subsections (a-1) and (a-2) for the lien to be valid.</content>
<continuation>(a-1) For all unpaid labor or materials provided, the claimant must send a notice of claim for unpaid labor or materials to the owner or reputed owner and the original contractor. The notice must be sent:</continuation>
<paragraph identifier="/us/tx/pr/t5/c53/scC/s53.056/1">
<num value="1">(1)</num>
<chapeau>for projects other than residential construction projects, not later than the 15th day of the third month after the month during which:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c53/scC/s53.056/A">
<num value="A">(A)</num>
<content>the labor or materials were provided; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c53/scC/s53.056/B">
<num value="B">(B)</num>
<content>the undelivered specially fabricated materials would normally have been delivered; or</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scC/s53.056/2">
<num value="2">(2)</num>
<chapeau>for residential construction projects, not later than the 15th day of the second month after the month during which:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c53/scC/s53.056/A">
<num value="A">(A)</num>
<content>the labor or materials were provided; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c53/scC/s53.056/B">
<num value="B">(B)</num>
<content>the undelivered specially fabricated materials would normally have been delivered.</content>
<continuation>(a-2) The notice must be in substantially the following form:</continuation>
</subparagraph>
</paragraph>
</subsection>
<sourceCredit>"NOTICE OF CLAIM FOR UNPAID LABOR OR MATERIALS
"WARNING: This notice is provided to preserve lien rights.
"Owner's property may be subject to a lien if sufficient funds are not withheld from future payments to the original contractor to cover this debt.
"Date:_______________
"Project description and/or address: _______________
"Claimant's name: _______________
"Type of labor or materials provided: _______________
"Original contractor's name: _______________
"Party with whom claimant contracted if different from original contractor: _______________
"Claim amount: _______________
"_______________ (Claimant's contact person)
"_______________ (Claimant's address)"
(a-3) The notice may include an invoice or billing statement.
(a-4) A claimant may give to the original contractor a written notice of an unpaid labor or materials invoice that is past due. A notice under this subsection is not required for a lien to be valid.
(b) Repealed by Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 36(4), eff. January 1, 2022.
(c) Repealed by Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 36(4), eff. January 1, 2022.
(d) Repealed by Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 36(4), eff. January 1, 2022.
(e) Repealed by Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 36(4), eff. January 1, 2022.
(f) Repealed by Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 36(4), eff. January 1, 2022.
Acts 1983, 68th Leg., p. 3540, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 1138, Sec. 8, eff. Sept. 1, 1989; Acts 1997, 75th Leg., ch. 526, Sec. 8, eff. Sept. 1, 1997.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 10, eff. January 1, 2022.
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 11, eff. January 1, 2022.
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 36(4), eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scC/s53.057">
<num value="53.057">Sec. 53.057.</num>
<heading>DERIVATIVE CLAIMANT: NOTICE OF CLAIM FOR UNPAID RETAINAGE</heading>
<subsection identifier="/us/tx/pr/t5/c53/scC/s53.057/a">
<num value="a">(a)</num>
<content>To the extent that a claim for unpaid retainage is not included wholly or partly in a notice provided under Section 53.056, a claimant other than an original contractor whose contract provides for retainage must give notice under this section for a lien for unpaid retainage to be valid.</content>
<continuation>(a-1) The claimant must send the notice of claim for unpaid retainage to the owner or reputed owner and the original contractor not later than the earlier of:</continuation>
<paragraph identifier="/us/tx/pr/t5/c53/scC/s53.057/1">
<num value="1">(1)</num>
<content>the 30th day after the date the claimant's contract is completed, terminated, or abandoned; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scC/s53.057/2">
<num value="2">(2)</num>
<content>the 30th day after the date the original contract is terminated or abandoned.</content>
<continuation>(a-2) The notice must be in substantially the following form:</continuation>
</paragraph>
</subsection>
<sourceCredit>"NOTICE OF CLAIM FOR UNPAID RETAINAGE
"WARNING: This notice is provided to preserve lien rights.
"Owner's property may be subject to a lien if sufficient funds are not withheld from future payments to the original contractor to cover this debt.
"Date:________________
"Project description and/or address: ________________
"Claimant's name: ________________
"Type of labor or materials provided: ________________
"Original contractor's name: ________________
"Party with whom claimant contracted if different from original contractor: ________________
"Total retainage unpaid: ________________
"________________ (Claimant's contact person)
"________________ (Claimant's address)"
(a-3) The notice may include an invoice or billing statement.
(b) Repealed by Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 36(5), eff. January 1, 2022.
(b-1) Repealed by Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 36(5), eff. January 1, 2022.
(c) Repealed by Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 36(5), eff. January 1, 2022.
(d) Repealed by Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 36(5), eff. January 1, 2022.
(e) Repealed by Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 36(5), eff. January 1, 2022.
(f) A claimant has a lien on, and the owner is personally liable to the claimant for, the reserved funds under Subchapter E if the claimant:
(1) gives notice in accordance with this section and:
(A) complies with Subchapter E; or
(B) files an affidavit claiming a lien not later than the date required for filing an affidavit under the applicable provision of Section 53.052; and
(2) gives the notice of the filed affidavit as required by Section 53.055.
(g) Repealed by Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 36(5), eff. January 1, 2022.
Acts 1983, 68th Leg., p. 3541, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 1138, Sec. 9, eff. Sept. 1, 1989; Acts 1997, 75th Leg., ch. 526, Sec. 9, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 889, Sec. 3, eff. Sept. 1, 1999.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 499 (H.B. 1390), Sec. 2, eff. September 1, 2011.
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 12, eff. January 1, 2022.
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 13, eff. January 1, 2022.
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 36(5), eff. January 1, 2022.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t5/c53/scD">
<num value="D">SUBCHAPTER D.</num>
<heading>FUNDS WITHHELD BY OWNER FOLLOWING NOTICE</heading>
<section identifier="/us/tx/pr/t5/c53/scD/s53.081">
<num value="53.081">Sec. 53.081.</num>
<heading>AUTHORITY TO WITHHOLD FUNDS FOR BENEFIT OF CLAIMANTS</heading>
<subsection identifier="/us/tx/pr/t5/c53/scD/s53.081/a">
<num value="a">(a)</num>
<content>If an owner receives notice under Section 53.056 or 53.057, the owner may withhold from payments to the original contractor an amount necessary to pay the claim for which he receives notice. The withholding may be in addition to any reserved funds.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scD/s53.081/b">
<num value="b">(b)</num>
<content>If notice is sent under Section 53.056, the owner may withhold the funds immediately on receipt of the notice.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scD/s53.081/c">
<num value="c">(c)</num>
<content>If notice is sent under Section 53.057, the owner may withhold funds immediately on receipt of a copy of the claimant's affidavit prepared in accordance with Sections 53.052 through 53.055.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scD/s53.081/d">
<num value="d">(d)</num>
<content>Repealed by Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 36(7), eff. January 1, 2022.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3543, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 1138, Sec. 12, eff. Sept. 1, 1989; Acts 1997, 75th Leg., ch. 526, Sec. 11, eff. Sept. 1, 1997.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 14, eff. January 1, 2022.
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 36(7), eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scD/s53.082">
<num value="53.082">Sec. 53.082.</num>
<heading>TIME FOR WHICH FUNDS ARE WITHHELD</heading>
<chapeau>Unless the claim is otherwise settled, discharged, indemnified against under Subchapter H or I, or determined to be invalid by a final judgment of a court, the owner shall retain the funds withheld until:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scD/s53.082/1">
<num value="1">(1)</num>
<content>the time for filing the affidavit of mechanic's lien has passed; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scD/s53.082/2">
<num value="2">(2)</num>
<content>if a lien affidavit has been filed, the lien claim has been satisfied or released.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3544, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 1138, Sec. 13, eff. Sept. 1, 1989.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 15, eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scD/s53.084">
<num value="53.084">Sec. 53.084.</num>
<heading>OWNER'S LIABILITY</heading>
<subsection identifier="/us/tx/pr/t5/c53/scD/s53.084/a">
<num value="a">(a)</num>
<content>Except for the amount the owner fails to reserve under Subchapter E, the owner is not liable for any amount paid to the original contractor before the owner is authorized to withhold funds under this subchapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scD/s53.084/b">
<num value="b">(b)</num>
<content>If the owner has received a notice required by Section 53.056 or 53.057, if the lien has been secured, and if the claim has been reduced to final judgment, the owner is liable and the owner's property is subject to a claim for any money paid to the original contractor after the owner was authorized to withhold funds under this subchapter. The owner is liable for that amount in addition to any amount for which the owner is liable under Subchapter E.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3545, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1997, 75th Leg., ch. 526, Sec. 12, eff. Sept. 1, 1997.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 16, eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scD/s53.085">
<num value="53.085">Sec. 53.085.</num>
<heading>AFFIDAVIT REQUIRED</heading>
<subsection identifier="/us/tx/pr/t5/c53/scD/s53.085/a">
<num value="a">(a)</num>
<content>Any person who furnishes labor or materials for the construction of improvements on real property shall, if requested and as a condition of payment for such labor or materials, provide to the requesting party, or the party's agent, an affidavit stating that the person has paid each of the person's subcontractors, laborers, or materialmen in full for all labor and materials provided to the person for the construction. In the event, however, that the person has not paid each of the person's subcontractors, laborers, or materialmen in full, the person shall state in the affidavit the amount owed and the name and, if known, the address and telephone number of each subcontractor, laborer, or materialman to whom the payment is owed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scD/s53.085/b">
<num value="b">(b)</num>
<content>The seller of any real property shall, upon request by the purchaser or the purchaser's agent prior to closing of the purchase of the real property, provide to the purchaser or the purchaser's agent, a written affidavit stating that the seller has paid each of the seller's contractors, laborers, or materialmen in full for all labor and materials provided to the seller through the date specified in the affidavit for any construction of improvements on the real property and that the seller is not indebted to any person, firm, or corporation by reason of any such construction through the date specified in the affidavit. In the event that the seller has not paid each of the seller's contractors, laborers, or materialmen in full for labor and material provided through the date specified in the affidavit, the seller shall state in the affidavit the amount owed and the name and, if known, the address and telephone number of each contractor, laborer, or materialman to whom the payment is owed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scD/s53.085/c">
<num value="c">(c)</num>
<chapeau>The affidavit may include:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scD/s53.085/1">
<num value="1">(1)</num>
<content>a waiver or release of lien rights or payment bond claims by the affiant that is conditioned on the receipt of actual payment or collection of funds when payment is made by check or draft, as provided by Subchapter L;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scD/s53.085/2">
<num value="2">(2)</num>
<content>a warranty or representation that certain bills or classes of bills will be paid by the affiant from funds paid in reliance on the affidavit; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scD/s53.085/3">
<num value="3">(3)</num>
<content>an indemnification by the affiant for any loss or expense resulting from false or incorrect information in the affidavit.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scD/s53.085/d">
<num value="d">(d)</num>
<content>A person, including a seller, commits an offense if the person intentionally, knowingly, or recklessly makes a false or misleading statement in an affidavit under this section. An offense under this section is a misdemeanor. A person adjudged guilty of an offense under this section shall be punished by a fine not to exceed $4,000 or confinement in jail for a term not to exceed one year or both a fine and confinement. A person may not receive community supervision for the offense.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scD/s53.085/e">
<num value="e">(e)</num>
<content>A person signing an affidavit under this section is personally liable for any loss or damage resulting from any false or incorrect information in the affidavit.</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 578, Sec. 1, eff. Aug. 31, 1987. Amended by Acts 1989, 71st Leg., ch. 1138, Sec. 14, eff. Sept. 1, 1989; Acts 1997, 75th Leg., ch. 526, Sec. 13, eff. Sept. 1, 1997.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 271 (H.B. 1456), Sec. 2, eff. January 1, 2012.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t5/c53/scE">
<num value="E">SUBCHAPTER E.</num>
<heading>FUNDS RESERVED FOR BENEFIT OF LIEN CLAIMANTS</heading>
<section identifier="/us/tx/pr/t5/c53/scE/s53.101">
<num value="53.101">Sec. 53.101.</num>
<heading>FUNDS REQUIRED TO BE RESERVED</heading>
<subsection identifier="/us/tx/pr/t5/c53/scE/s53.101/a">
<num value="a">(a)</num>
<chapeau>During the progress of work under an original contract for which a mechanic's lien may be claimed and for 30 days after the work under the contract is completed, the owner shall reserve:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scE/s53.101/1">
<num value="1">(1)</num>
<content>10 percent of the contract price of the work to the owner; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scE/s53.101/2">
<num value="2">(2)</num>
<content>10 percent of the value of the work, measured by the proportion that the work done bears to the work to be done, using the contract price or, if there is no contract price, using the reasonable value of the completed work.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scE/s53.101/b">
<num value="b">(b)</num>
<content>In this section, "owner" includes the owner's agent, trustee, or receiver.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3545, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 1138, Sec. 15, eff. Sept. 1, 1989.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 18, eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scE/s53.102">
<num value="53.102">Sec. 53.102.</num>
<heading>PAYMENT SECURED BY RESERVED FUNDS</heading>
<content>The reserved funds secure the payment of artisans and mechanics who perform labor or service and the payment of other persons who furnish material, material and labor, or specially fabricated material for any contractor, subcontractor, agent, or receiver in the performance of the work.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3545, ch. 576, Sec. 1, eff. Jan. 1, 1984.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 18, eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scE/s53.103">
<num value="53.103">Sec. 53.103.</num>
<heading>LIEN ON RESERVED FUNDS</heading>
<chapeau>A claimant has a lien on the reserved funds if the claimant:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scE/s53.103/1">
<num value="1">(1)</num>
<content>sends the notices required by this chapter in the time and manner required; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scE/s53.103/2">
<num value="2">(2)</num>
<chapeau>except as allowed by Section 53.057(f), files an affidavit claiming a lien not later than the 30th day after the earliest of the date:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c53/scE/s53.103/A">
<num value="A">(A)</num>
<content>the work is completed;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c53/scE/s53.103/B">
<num value="B">(B)</num>
<content>the original contract is terminated; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c53/scE/s53.103/C">
<num value="C">(C)</num>
<content>the original contractor abandons performance under the original contract.</content>
</subparagraph>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3545, ch. 576, Sec. 1, eff. Jan. 1, 1984.
Amended by:
Acts 2005, 79th Leg., Ch. 1003 (H.B. 629), Sec. 1, eff. September 1, 2005.
Acts 2011, 82nd Leg., R.S., Ch. 499 (H.B. 1390), Sec. 3, eff. September 1, 2011.
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 18, eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scE/s53.104">
<num value="53.104">Sec. 53.104.</num>
<heading>PREFERENCES</heading>
<subsection identifier="/us/tx/pr/t5/c53/scE/s53.104/a">
<num value="a">(a)</num>
<content>Individual artisans and mechanics are entitled to a preference to the reserved funds and shall share proportionately to the extent of their claims for wages and fringe benefits earned.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scE/s53.104/b">
<num value="b">(b)</num>
<content>After payment of artisans and mechanics who are entitled to a preference under Subsection (a), other participating claimants share proportionately in the balance of the reserved funds.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3546, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 1138, Sec. 16, eff. Sept. 1, 1989.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 18, eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scE/s53.105">
<num value="53.105">Sec. 53.105.</num>
<heading>OWNER'S LIABILITY FOR FAILURE TO RESERVE FUNDS</heading>
<subsection identifier="/us/tx/pr/t5/c53/scE/s53.105/a">
<num value="a">(a)</num>
<content>If the owner fails or refuses to comply with this subchapter, the claimants complying with Subchapter C or this subchapter have a lien, at least to the extent of the amount that should have been reserved from the original contract under which they are claiming, against the improvements and all of its properties and against the lot or lots of land necessarily connected.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scE/s53.105/b">
<num value="b">(b)</num>
<content>The claimants share the lien proportionately in accordance with the preference provided by Section 53.104.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3546, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 2, Sec. 13.02, eff. Aug. 28, 1989; Acts 1989, 71st Leg., ch. 1138, Sec. 17, eff. Sept. 1, 1989.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 499 (H.B. 1390), Sec. 4, eff. September 1, 2011.
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 18, eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scE/s53.106">
<num value="53.106">Sec. 53.106.</num>
<heading>AFFIDAVIT OF COMPLETION</heading>
<subsection identifier="/us/tx/pr/t5/c53/scE/s53.106/a">
<num value="a">(a)</num>
<chapeau>An owner may file with the county clerk of the county in which the property is located an affidavit of completion. The affidavit must contain:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scE/s53.106/1">
<num value="1">(1)</num>
<content>the name and address of the owner;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scE/s53.106/2">
<num value="2">(2)</num>
<content>the name and address of the original contractor;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scE/s53.106/3">
<num value="3">(3)</num>
<content>a description, legally sufficient for identification, of the real property on which the improvements are located;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scE/s53.106/4">
<num value="4">(4)</num>
<content>a description of the improvements furnished under the original contract;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scE/s53.106/5">
<num value="5">(5)</num>
<content>a statement that the improvements under the original contract have been completed and the date of completion; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scE/s53.106/6">
<num value="6">(6)</num>
<content>a conspicuous statement that a claimant may not have a lien on retained funds unless the claimant files an affidavit claiming a lien in the time and manner required by this chapter.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scE/s53.106/b">
<num value="b">(b)</num>
<content>A copy of the affidavit must be sent to the original contractor and to each claimant who sends a notice to the owner under Section 53.056 or 53.057 not later than the third day after the date the affidavit is filed or the 10th day after the date the owner receives the notice of lien liability, whichever is later.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scE/s53.106/c">
<num value="c">(c)</num>
<content>A copy of the affidavit must also be sent to each person who furnishes labor or materials for the property and who furnishes the owner with a written request for the copy. The owner must furnish the copy to the person not later than the date the affidavit is filed or the 10th day after the date the request is received, whichever is later.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scE/s53.106/d">
<num value="d">(d)</num>
<content>An affidavit filed under this section is prima facie evidence of the date the work under the original contract is completed for purposes of this chapter. If the affidavit is filed after the 10th day after the date of completion, the date of completion for purposes of this subchapter is the date the affidavit is filed. This subsection does not apply to a person to whom the affidavit was not sent as required by this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scE/s53.106/e">
<num value="e">(e)</num>
<content>Repealed by Acts 1999, 76th Leg., ch. 889, Sec. 12, eff. Sept. 1, 1999.</content>
</subsection>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 1138, Sec. 18, eff. Sept. 1, 1989. Amended by Acts 1997, 75th Leg., ch. 526, Sec. 14, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 889, Sec. 12, eff. Sept. 1, 1999.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 499 (H.B. 1390), Sec. 5, eff. September 1, 2011.
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 19, eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scE/s53.107">
<num value="53.107">Sec. 53.107.</num>
<heading>NOTICE RELATING TO TERMINATION OF WORK OR ABANDONMENT OF PERFORMANCE BY ORIGINAL CONTRACTOR OR OWNER</heading>
<subsection identifier="/us/tx/pr/t5/c53/scE/s53.107/a">
<num value="a">(a)</num>
<chapeau>Not later than the 10th day after the date an original contract is terminated or the original contractor abandons performance under the original contract, the owner shall give notice to each subcontractor who, before the date of termination or abandonment, has:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scE/s53.107/1">
<num value="1">(1)</num>
<content>given notice to the owner as provided by Section 53.056 or 53.057; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scE/s53.107/2">
<num value="2">(2)</num>
<content>sent to the owner a written request for notice of termination or abandonment.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scE/s53.107/b">
<num value="b">(b)</num>
<chapeau>The notice must contain:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scE/s53.107/1">
<num value="1">(1)</num>
<content>the name and address of the owner;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scE/s53.107/2">
<num value="2">(2)</num>
<content>the name and address of the original contractor;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scE/s53.107/3">
<num value="3">(3)</num>
<content>a description, legally sufficient for identification, of the real property on which the improvements are located;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scE/s53.107/4">
<num value="4">(4)</num>
<content>a general description of the improvements agreed to be furnished under the original contract;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scE/s53.107/5">
<num value="5">(5)</num>
<content>a statement that the original contract has been terminated or that performance under the contract has been abandoned;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scE/s53.107/6">
<num value="6">(6)</num>
<content>the date of the termination or abandonment; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scE/s53.107/7">
<num value="7">(7)</num>
<content>a conspicuous statement that a claimant may not have a lien on the retained funds unless the claimant files an affidavit claiming a lien in the time and manner required by this chapter.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scE/s53.107/c">
<num value="c">(c)</num>
<content>A notice sent in compliance with this section on or before the 10th day after the date of termination or abandonment is prima facie evidence of the date the original contract was terminated or work was abandoned for purposes of this subchapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scE/s53.107/d">
<num value="d">(d)</num>
<content>If an owner is required to send a notice to a subcontractor under this section and fails to send the notice, the subcontractor is not required to comply with Section 53.057 to claim retainage and may claim a lien by filing a lien affidavit as prescribed by Section 53.052.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scE/s53.107/e">
<num value="e">(e)</num>
<content>This section does not apply to a residential construction project.</content>
</subsection>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 1003 (H.B. 629), Sec. 2, eff. September 1, 2005.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 499 (H.B. 1390), Sec. 6, eff. September 1, 2011.
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 20, eff. January 1, 2022.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t5/c53/scF">
<num value="F">SUBCHAPTER F.</num>
<heading>PRIORITIES AND PREFERENCES</heading>
<section identifier="/us/tx/pr/t5/c53/scF/s53.121">
<num value="53.121">Sec. 53.121.</num>
<heading>PREFERENCE OVER OTHER CREDITORS</heading>
<content>All subcontractors, laborers, and materialmen who have a mechanic's lien have preference over other creditors of the original contractor.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3546, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scF/s53.122">
<num value="53.122">Sec. 53.122.</num>
<heading>EQUALITY OF MECHANIC'S LIENS</heading>
<subsection identifier="/us/tx/pr/t5/c53/scF/s53.122/a">
<num value="a">(a)</num>
<content>Except as provided by Subchapter E and Section 53.124(e), perfected mechanic's liens are on equal footing without reference to the date of filing the affidavit claiming the lien.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scF/s53.122/b">
<num value="b">(b)</num>
<content>If the proceeds of a foreclosure sale of property are insufficient to discharge all mechanic's liens against the property, the proceeds shall be paid pro rata on the perfected mechanic's liens on which suit is brought.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scF/s53.122/c">
<num value="c">(c)</num>
<content>This chapter does not affect the contract between the owner and the original contractor as to the amount, manner, or time of payment of the contract price.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3546, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1995, 74th Leg., ch. 851, Sec. 4, eff. Sept. 1, 1995.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scF/s53.123">
<num value="53.123">Sec. 53.123.</num>
<heading>PRIORITY OF MECHANIC'S LIEN OVER OTHER LIENS</heading>
<subsection identifier="/us/tx/pr/t5/c53/scF/s53.123/a">
<num value="a">(a)</num>
<content>Except as provided by this section, a mechanic's lien attaches to the house, building, improvements, or railroad property in preference to any prior lien, encumbrance, or mortgage on the land on which it is located, and the person enforcing the lien may have the house, building, improvement, or any piece of the railroad property sold separately.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scF/s53.123/b">
<num value="b">(b)</num>
<content>The mechanic's lien does not affect any lien, encumbrance, or mortgage on the land or improvement at the time of the inception of the mechanic's lien, and the holder of the lien, encumbrance, or mortgage need not be made a party to a suit to foreclose the mechanic's lien.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3547, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scF/s53.124">
<num value="53.124">Sec. 53.124.</num>
<heading>INCEPTION OF MECHANIC'S LIEN</heading>
<subsection identifier="/us/tx/pr/t5/c53/scF/s53.124/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (e), for purposes of Section 53.123, the time of inception of a mechanic's lien is the commencement of construction of improvements or delivery of materials to the land on which the improvements are to be located and on which the materials are to be used.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scF/s53.124/b">
<num value="b">(b)</num>
<content>The construction or materials under Subsection (a) must be visible from inspection of the land on which the improvements are being made.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scF/s53.124/c">
<num value="c">(c)</num>
<chapeau>An owner and original contractor may jointly file an affidavit of commencement with the county clerk of the county in which the land is located not later than the 30th day after the date of actual commencement of construction of the improvements or delivery of materials to the land. The affidavit must contain:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scF/s53.124/1">
<num value="1">(1)</num>
<content>the name and address of the owner;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scF/s53.124/2">
<num value="2">(2)</num>
<content>the name and address of each original contractor, known at the time to the owner, that is furnishing labor, service, or materials for the construction of the improvements;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scF/s53.124/3">
<num value="3">(3)</num>
<content>a description, legally sufficient for identification, of the property being improved;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scF/s53.124/4">
<num value="4">(4)</num>
<content>the date the work actually commenced; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scF/s53.124/5">
<num value="5">(5)</num>
<content>a general description of the improvement.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scF/s53.124/d">
<num value="d">(d)</num>
<content>An affidavit filed in compliance with this section is prima facie evidence of the date of the commencement of the improvement described in the affidavit. The time of inception of a mechanic's lien arising from work described in an affidavit of commencement is the date of commencement of the work stated in the affidavit.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scF/s53.124/e">
<num value="e">(e)</num>
<content>The time of inception of a lien that is created under Section 53.021(3), (4), or (5) is the date of recording of an affidavit of lien under Section 53.052. The priority of a lien claimed by a person entitled to a lien under Section 53.021(3), (4), or (5) with respect to other mechanic's liens is determined by the date of recording. A lien created under Section 53.021(3), (4), or (5) is not valid or enforceable against a grantee or purchaser who acquires an interest in the real property before the time of inception of the lien.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3547, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 1138, Sec. 19, eff. Sept. 1, 1989; Acts 1995, 74th Leg., ch. 851, Sec. 5, eff. Sept. 1, 1995; Acts 1999, 76th Leg., ch. 896, Sec. 2, eff. Sept. 1, 1999; Acts 2003, 78th Leg., ch. 410, Sec. 2, eff. Sept. 1, 2003.
Amended by:
Acts 2025, 89th Leg., R.S., Ch. 98 (S.B. 929), Sec. 2, eff. May 21, 2025.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t5/c53/scG">
<num value="G">SUBCHAPTER G.</num>
<heading>RELEASE AND FORECLOSURE; ACTION ON CLAIM</heading>
<section identifier="/us/tx/pr/t5/c53/scG/s53.151">
<num value="53.151">Sec. 53.151.</num>
<heading>ENFORCEMENT OF REMEDIES AGAINST MONEY DUE ORIGINAL CONTRACTOR OR SUBCONTRACTOR</heading>
<subsection identifier="/us/tx/pr/t5/c53/scG/s53.151/a">
<num value="a">(a)</num>
<content>A creditor of an original contractor may not collect, enforce a security interest against, garnish, or levy execution on the money due the original contractor or the contractor's surety from the owner, and a creditor of a subcontractor may not collect, enforce a security interest against, garnish, or levy execution on the money due the subcontractor, to the prejudice of the subcontractors, mechanics, laborers, materialmen, or their sureties.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scG/s53.151/b">
<num value="b">(b)</num>
<content>A surety issuing a payment bond or performance bond in connection with the improvements has a priority claim over other creditors of its principal to contract funds to the extent of any loss it suffers or incurs. That priority does not excuse the surety from paying any obligations that it may have under its payment bonds.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3548, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 1138, Sec. 20, eff. Sept. 1, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scG/s53.152">
<num value="53.152">Sec. 53.152.</num>
<heading>RELEASE OF CLAIM OR LIEN</heading>
<subsection identifier="/us/tx/pr/t5/c53/scG/s53.152/a">
<num value="a">(a)</num>
<content>When a debt for labor or materials is satisfied or paid by collected funds, the person who furnished the labor or materials shall, not later than the 10th day after the date of receipt of a written request, furnish to the requesting person a release of the indebtedness and any lien claimed, to the extent of the indebtedness paid. An owner, the original contractor, or any person making the payment may request the release.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scG/s53.152/b">
<num value="b">(b)</num>
<content>A release of lien must be in a form that would permit it to be filed of record.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3548, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 1138, Sec. 21, eff. Sept. 1, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scG/s53.153">
<num value="53.153">Sec. 53.153.</num>
<heading>DEFENSE OF ACTIONS</heading>
<subsection identifier="/us/tx/pr/t5/c53/scG/s53.153/a">
<num value="a">(a)</num>
<content>If an affidavit claiming a mechanic's lien is filed by a person other than the original contractor, the original contractor shall defend at his own expense a suit brought on the claim.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scG/s53.153/b">
<num value="b">(b)</num>
<content>If the suit results in judgment on the lien against the owner or the owner's property, the owner is entitled to deduct the amount of the judgment and costs from any amount due the original contractor. If the owner has settled with the original contractor in full, the owner is entitled to recover from the original contractor any amount paid for which the original contractor was originally liable.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3548, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scG/s53.154">
<num value="53.154">Sec. 53.154.</num>
<heading>FORECLOSURE</heading>
<content>A mechanic's lien may be foreclosed only on judgment of a court of competent jurisdiction foreclosing the lien and ordering the sale of the property subject to the lien.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3549, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scG/s53.155">
<num value="53.155">Sec. 53.155.</num>
<heading>TRANSFER OF PROPERTY SOLD</heading>
<content>If the improvement is sold separately from the land, the officer making the sale shall provide the purchaser a reasonable time after the date of purchase within which to remove and take possession of the purchased improvement.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3549, ch. 576, Sec. 1, eff. Jan. 1, 1984.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 21, eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scG/s53.156">
<num value="53.156">Sec. 53.156.</num>
<heading>COSTS AND ATTORNEY'S FEES</heading>
<content>In any proceeding to foreclose a lien or to enforce a claim against a bond issued under Subchapter H, I, or J or in any proceeding to declare that any lien or claim is invalid or unenforceable in whole or in part, the court shall award costs and reasonable attorney's fees as are equitable and just. With respect to a lien or claim arising out of a residential construction contract, the court is not required to order the property owner to pay costs and attorney's fees under this section.</content>
<sourceCredit>Added by Acts 1984, 68th Leg., 2nd C.S., ch. 18, Sec. 4(a), eff. Oct. 2, 1984. Amended by Acts 1989, 71st Leg., ch. 1138, Sec. 22, eff. Sept. 1, 1989.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 51 (S.B. 539), Sec. 1, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scG/s53.157">
<num value="53.157">Sec. 53.157.</num>
<heading>DISCHARGE OF LIEN</heading>
<chapeau>An affidavit claiming a mechanic's lien filed under Section 53.052 may be discharged of record by:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scG/s53.157/1">
<num value="1">(1)</num>
<content>recording a lien release signed by the claimant under Section 53.152;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scG/s53.157/2">
<num value="2">(2)</num>
<content>failing to institute suit to foreclose the lien in the county in which the improvement is located within the period prescribed by Section 53.158, 53.175, or 53.208;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scG/s53.157/3">
<num value="3">(3)</num>
<content>recording the original or certified copy of a final judgment or decree of a court of competent jurisdiction providing for the discharge;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scG/s53.157/4">
<num value="4">(4)</num>
<content>filing the bond and notice in compliance with Subchapter H;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scG/s53.157/5">
<num value="5">(5)</num>
<content>filing the bond in compliance with Subchapter I; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scG/s53.157/6">
<num value="6">(6)</num>
<content>recording a certified copy of the order removing the lien under Section 53.160, provided that no bond or deposit as described by Section 53.161 was filed by the claimant within 30 days after the date the order was entered.</content>
</paragraph>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 1138, Sec. 23, eff. Sept. 1, 1989. Amended by Acts 1997, 75th Leg., ch. 526, Sec. 15, eff. Sept. 1, 1997.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 22, eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scG/s53.158">
<num value="53.158">Sec. 53.158.</num>
<heading>PERIOD FOR BRINGING SUIT TO FORECLOSE LIEN</heading>
<subsection identifier="/us/tx/pr/t5/c53/scG/s53.158/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (a-2), suit must be brought to foreclose the lien not later than the first anniversary of the last day a claimant may file the lien affidavit under Section 53.052.</content>
<continuation>(a-1) Notwithstanding Section 16.069, Civil Practice and Remedies Code, or any other law, if suit is pursued solely to discharge a lien because limitations have expired on bringing a lien foreclosure suit, the lien claimant's rights to pursue a suit to foreclose a lien are not revived.</continuation>
<continuation>(a-2) The limitations period established under Subsection (a) may be extended to not later than the second anniversary of the date the claimant filed the lien affidavit under Section 53.052 if, before the expiration of the limitations period established under Subsection (a), the claimant enters into a written agreement with the then-current record owner of the property to extend the limitations period. The agreement must be recorded with the clerk of the same county where the lien was recorded and is considered to be notice of the extension to any subsequent purchaser.</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scG/s53.158/b">
<num value="b">(b)</num>
<content>Repealed by Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 36(9), eff. January 1, 2022.</content>
</subsection>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 1138, Sec. 23, eff. Sept. 1, 1989. Amended by Acts 1997, 75th Leg., ch. 526, Sec. 16, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 889, Sec. 4, eff. Sept. 1, 1999.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 23, eff. January 1, 2022.
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 36(9), eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scG/s53.159">
<num value="53.159">Sec. 53.159.</num>
<heading>OBLIGATION TO FURNISH INFORMATION</heading>
<subsection identifier="/us/tx/pr/t5/c53/scG/s53.159/a">
<num value="a">(a)</num>
<chapeau>An owner, on written request, shall furnish the following information within a reasonable time, but not later than the 10th day after the date the request is received, to any person furnishing labor or materials for the project:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scG/s53.159/1">
<num value="1">(1)</num>
<content>a description of the real property being improved legally sufficient to identify it;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scG/s53.159/2">
<num value="2">(2)</num>
<content>whether there is a surety bond and if so, the name and last known address of the surety and a copy of the bond;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scG/s53.159/3">
<num value="3">(3)</num>
<content>whether there are any prior recorded liens or security interests on the real property being improved and if so, the name and address of the person having the lien or security interest; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scG/s53.159/4">
<num value="4">(4)</num>
<content>the date on which the original contract for the project was executed.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scG/s53.159/b">
<num value="b">(b)</num>
<chapeau>An original contractor, on written request by a person who furnished work under the original contract, shall furnish to the person the following information within a reasonable time, but not later than the 10th day after the date the request is received:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scG/s53.159/1">
<num value="1">(1)</num>
<content>the name and last known address of the person to whom the original contractor furnished labor or materials for the construction project;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scG/s53.159/2">
<num value="2">(2)</num>
<content>whether the original contractor has furnished or has been furnished a payment bond for any of the work on the construction project and if so, the name and last known address of the surety and a copy of the bond; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scG/s53.159/3">
<num value="3">(3)</num>
<content>the date on which the original contract for the project was executed.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scG/s53.159/c">
<num value="c">(c)</num>
<chapeau>A subcontractor, on written request by an owner of the property being improved, the original contractor, a surety on a bond covering the original contract, or any person furnishing work under the subcontract, shall furnish to the person the following information within a reasonable time, but not later than the 10th day after the date the request is received:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scG/s53.159/1">
<num value="1">(1)</num>
<content>the name and last known address of each person from whom the subcontractor purchased labor or materials for the construction project, other than those materials that were furnished to the project from the subcontractor's inventory;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scG/s53.159/2">
<num value="2">(2)</num>
<content>the name and last known address of each person to whom the subcontractor furnished labor or materials for the construction project; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scG/s53.159/3">
<num value="3">(3)</num>
<content>whether the subcontractor has furnished or has been furnished a payment bond for any of the work on the construction project and if so, the name and last known address of the surety and a copy of the bond.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scG/s53.159/d">
<num value="d">(d)</num>
<content>Not later than the 30th day after the date a written request is received from the owner, the contractor under whom a claim of lien or under whom a bond is made, or a surety on a bond on which a claim is made, a claimant for a lien or under a bond shall furnish to the requesting person a copy of any applicable written agreement, purchase order, or contract and any billing, statement, or payment request of the claimant reflecting the amount claimed and the work performed by the claimant for which the claim is made. If requested, the claimant shall provide the estimated amount due for each calendar month in which the claimant has performed labor or furnished materials.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scG/s53.159/e">
<num value="e">(e)</num>
<content>If a person from whom information is requested does not have a direct contractual relationship on the project with the person requesting the information, the person from whom information is requested, other than a claimant requested to furnish information under Subsection (d), may require payment of the actual costs, not to exceed $25, in furnishing the requested information.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scG/s53.159/f">
<num value="f">(f)</num>
<content>A person, other than a claimant requested to furnish information under Subsection (d), who fails to furnish information as required by this section is liable to the requesting person for that person's reasonable and necessary costs incurred in procuring the requested information.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scG/s53.159/g">
<num value="g">(g)</num>
<content>Expired.</content>
</subsection>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 1138, Sec. 23, eff. Sept. 1, 1989.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 499 (H.B. 1390), Sec. 7, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scG/s53.160">
<num value="53.160">Sec. 53.160.</num>
<heading>SUMMARY MOTION TO REMOVE INVALID OR UNENFORCEABLE LIEN</heading>
<subsection identifier="/us/tx/pr/t5/c53/scG/s53.160/a">
<num value="a">(a)</num>
<content>In a suit brought to foreclose a lien or to declare a claim or lien invalid or unenforceable, a party objecting to the validity or enforceability of the claim or lien may file a motion to remove the claim or lien. The motion must be verified and state the legal and factual basis for objecting to the validity or enforceability of the claim or lien. The motion may be accompanied by supporting affidavits.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scG/s53.160/b">
<num value="b">(b)</num>
<chapeau>The grounds for objecting to the validity or enforceability of the claim or lien for purposes of the motion are limited to the following:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scG/s53.160/1">
<num value="1">(1)</num>
<content>notice of claim was not timely furnished to the owner or original contractor as required by Section 53.056 or 53.057;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scG/s53.160/2">
<num value="2">(2)</num>
<content>an affidavit claiming a lien failed to comply with Section 53.054 or was not filed as required by Section 53.052;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scG/s53.160/3">
<num value="3">(3)</num>
<content>notice of the filed affidavit was not furnished to the owner or original contractor as required by Section 53.055;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scG/s53.160/4">
<num value="4">(4)</num>
<chapeau>the deadlines for perfecting a lien claim for retainage under this chapter have expired and the owner complied with the requirements of Section 53.101 and paid the retainage and all other funds owed to the original contractor before:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c53/scG/s53.160/A">
<num value="A">(A)</num>
<content>the claimant perfected the lien claim; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c53/scG/s53.160/B">
<num value="B">(B)</num>
<content>the owner received a notice of the claim as required by this chapter;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scG/s53.160/5">
<num value="5">(5)</num>
<content>all funds subject to the notice of a claim to the owner and a notice regarding the retainage have been deposited in the registry of the court and the owner has no additional liability to the claimant;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scG/s53.160/6">
<num value="6">(6)</num>
<chapeau>when the lien affidavit was filed on homestead property:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c53/scG/s53.160/A">
<num value="A">(A)</num>
<content>no contract was executed or filed as required by Section 53.254;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c53/scG/s53.160/B">
<num value="B">(B)</num>
<content>the affidavit claiming a lien failed to contain the notice as required by Section 53.254; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c53/scG/s53.160/C">
<num value="C">(C)</num>
<content>the notice of the claim failed to include the statement required by Section 53.254; and</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scG/s53.160/7">
<num value="7">(7)</num>
<content>the claimant executed a valid and enforceable waiver or release of the claim or lien claimed in the affidavit.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scG/s53.160/c">
<num value="c">(c)</num>
<content>The claimant is not required to file a response. The claimant and any other party that has appeared in the proceeding must be notified by at least 30 days before the date of the hearing on the motion. A motion may not be heard before the 30th day after the date the claimant answers or appears in the proceeding. The claimant must be allowed expedited discovery regarding information relevant to the issues listed under Subsection (b).</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scG/s53.160/d">
<num value="d">(d)</num>
<chapeau>At the hearing on the motion, the burden is on:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scG/s53.160/1">
<num value="1">(1)</num>
<content>the claimant to prove that the notice of claim and affidavit of lien were furnished to the owner and original contractor as required by this chapter; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scG/s53.160/2">
<num value="2">(2)</num>
<content>the movant to establish that the lien should be removed for any other ground authorized by this section.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scG/s53.160/e">
<num value="e">(e)</num>
<content>The court shall promptly determine a motion to remove a claim or lien under this section. If the court determines that the movant is not entitled to remove the lien, the court shall enter an order denying the motion. If the court determines that the movant is entitled to remove the lien, the court shall enter an order removing the lien claimed in the lien affidavit. A party to the proceeding may not file an interlocutory appeal from the court's order.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scG/s53.160/f">
<num value="f">(f)</num>
<content>Any admissible evidence offered at the hearing may be admitted in the trial of the case. The court's order under Subsection (e) is not admissible as evidence in determining the validity and enforceability of the claim or lien.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 526, Sec. 17, eff. Sept. 1, 1997.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 499 (H.B. 1390), Sec. 8, eff. September 1, 2011.
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 24, eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scG/s53.161">
<num value="53.161">Sec. 53.161.</num>
<heading>BOND REQUIREMENTS AFTER ORDER TO REMOVE</heading>
<subsection identifier="/us/tx/pr/t5/c53/scG/s53.161/a">
<num value="a">(a)</num>
<content>In the order removing a lien, the court shall set the amount of security that the claimant may provide in order to stay the removal of the claim or lien. The sum must be an amount that the court determines is a reasonable estimate of the costs and attorney's fees the movant is likely to incur in the proceeding to determine the validity or enforceability of the lien. The sum may not exceed the amount of the lien claim.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scG/s53.161/b">
<num value="b">(b)</num>
<content>The court shall stay the order removing the lien if the claimant files a bond or a deposit in lieu of a bond in the amount set in the order with the clerk of the court not later than the 30th day after the date the order is entered by the court unless, for good cause, the court orders a later date for filing the bond or the deposit in lieu of a bond. If the court fails to set the amount of the security required, the amount required is the amount of the lien claim.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scG/s53.161/c">
<num value="c">(c)</num>
<chapeau>The bond must be:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scG/s53.161/1">
<num value="1">(1)</num>
<content>executed by a corporate surety authorized to do business in this state and licensed by this state to execute bonds as surety; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scG/s53.161/2">
<num value="2">(2)</num>
<content>conditioned on the claimant's payment of any final judgment rendered against the claimant in the proceeding for attorney's fees and costs to the movant under Section 53.156.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scG/s53.161/d">
<num value="d">(d)</num>
<chapeau>In lieu of filing a bond, the claimant may deposit in the amount set by the court for the surety bond:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scG/s53.161/1">
<num value="1">(1)</num>
<content>cash;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scG/s53.161/2">
<num value="2">(2)</num>
<content>a negotiable obligation of the federal government or a federal agency; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scG/s53.161/3">
<num value="3">(3)</num>
<content>a negotiable obligation of a financial institution chartered by the federal or state government that is insured by the federal government or a federal agency.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scG/s53.161/e">
<num value="e">(e)</num>
<content>A deposit made under Subsection (d) must be conditioned in the same manner as a surety bond. Any interest accrued on the deposit amount is a part of the deposit.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scG/s53.161/f">
<num value="f">(f)</num>
<chapeau>If the claimant fails to file the bond or the deposit in lieu of the bond in compliance with this section, the owner may file:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scG/s53.161/1">
<num value="1">(1)</num>
<content>a certified copy of the order; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scG/s53.161/2">
<num value="2">(2)</num>
<chapeau>a certificate from the clerk of the court stating that:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c53/scG/s53.161/A">
<num value="A">(A)</num>
<content>no bond or deposit in lieu of the bond was filed within 30 days after the date the order was entered by the court; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c53/scG/s53.161/B">
<num value="B">(B)</num>
<content>no order staying the order to remove the lien was entered by the court.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scG/s53.161/g">
<num value="g">(g)</num>
<content>The claim or lien is removed and extinguished as to a creditor or subsequent purchaser for valuable consideration who obtains an interest in the property after the certified copy of the order and certificate of the clerk of the court are filed with the county clerk. The removal of the lien does not constitute a release of the liability of the owner, if any, to the claimant.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 526, Sec. 17, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scG/s53.162">
<num value="53.162">Sec. 53.162.</num>
<heading>REVIVAL OF REMOVED LIEN</heading>
<subsection identifier="/us/tx/pr/t5/c53/scG/s53.162/a">
<num value="a">(a)</num>
<content>If an order removing the lien is not stayed as provided by Section 53.161 and the claimant later obtains a final judgment in the suit establishing the validity and ordering the foreclosure of the lien, the claimant may file a certified copy of the final judgment with the county clerk.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scG/s53.162/b">
<num value="b">(b)</num>
<content>The filed judgment revives the lien, and the claimant may foreclose the lien.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scG/s53.162/c">
<num value="c">(c)</num>
<chapeau>A lien revived under this section is void as to a creditor or subsequent purchaser for valuable consideration who obtained an interest in the property:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scG/s53.162/1">
<num value="1">(1)</num>
<content>after the order removing the lien and the certificate from the clerk of the court was filed with the county clerk; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scG/s53.162/2">
<num value="2">(2)</num>
<content>before the final judgment reviving the lien was filed with the county clerk.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 526, Sec. 17, eff. Sept. 1, 1997.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t5/c53/scH">
<num value="H">SUBCHAPTER H.</num>
<heading>BOND TO INDEMNIFY AGAINST LIEN</heading>
<section identifier="/us/tx/pr/t5/c53/scH/s53.171">
<num value="53.171">Sec. 53.171.</num>
<heading>BOND</heading>
<subsection identifier="/us/tx/pr/t5/c53/scH/s53.171/a">
<num value="a">(a)</num>
<content>If a lien, other than a lien granted by the owner in a written contract, is fixed or is attempted to be fixed by a recorded instrument under this chapter, any person may file a bond to indemnify against the lien.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scH/s53.171/b">
<num value="b">(b)</num>
<content>The bond shall be filed with the county clerk of the county in which the property subject to the lien is located.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scH/s53.171/c">
<num value="c">(c)</num>
<chapeau>A mechanic's lien claim against an owner's property is discharged after:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scH/s53.171/1">
<num value="1">(1)</num>
<content>a bond that complies with Section 53.172 is filed;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scH/s53.171/2">
<num value="2">(2)</num>
<content>the notice of the bond is issued as provided by Section 53.173; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scH/s53.171/3">
<num value="3">(3)</num>
<content>the bond and notice are recorded as provided by Section 53.174.</content>
</paragraph>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3549, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 1138, Sec. 24, 39(1), eff. Sept. 1, 1989; Acts 1997, 75th Leg., ch. 526, Sec. 18, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scH/s53.172">
<num value="53.172">Sec. 53.172.</num>
<heading>BOND REQUIREMENTS</heading>
<chapeau>The bond must:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scH/s53.172/1">
<num value="1">(1)</num>
<content>describe the property on which the liens are claimed;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scH/s53.172/2">
<num value="2">(2)</num>
<content>refer to each lien claimed in a manner sufficient to identify it;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scH/s53.172/3">
<num value="3">(3)</num>
<content>be in an amount that is double the amount of the liens referred to in the bond unless the total amount claimed in the liens exceeds $40,000, in which case the bond must be in an amount that is the greater of 1-1/2 times the amount of the liens or the sum of $40,000 and the amount of the liens;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scH/s53.172/4">
<num value="4">(4)</num>
<content>be payable to the parties claiming the liens;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scH/s53.172/5">
<num value="5">(5)</num>
<chapeau>be executed by:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c53/scH/s53.172/A">
<num value="A">(A)</num>
<content>the party filing the bond as principal; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c53/scH/s53.172/B">
<num value="B">(B)</num>
<content>a corporate surety authorized and admitted to do business under the law in this state and licensed by this state to execute the bond as surety, subject to Subchapter A, Chapter 3503, Insurance Code; and</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scH/s53.172/6">
<num value="6">(6)</num>
<content>be conditioned substantially that the principal and sureties will pay to the named obligees or to their assignees the amount that the named obligees would have been entitled to recover if their claims had been proved to be valid and enforceable liens on the property.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3549, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 1138, Sec. 25, eff. Sept. 1, 1989; Acts 1997, 75th Leg., ch. 1132, Sec. 2, eff. Sept. 1, 1997.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 291 (S.B. 1768), Sec. 6, eff. May 29, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scH/s53.173">
<num value="53.173">Sec. 53.173.</num>
<heading>NOTICE OF BOND</heading>
<subsection identifier="/us/tx/pr/t5/c53/scH/s53.173/a">
<num value="a">(a)</num>
<content>After the bond is filed, the county clerk shall issue notice of the bond to all named obligees.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scH/s53.173/b">
<num value="b">(b)</num>
<content>A copy of the bond must be attached to the notice.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scH/s53.173/c">
<num value="c">(c)</num>
<content>The notice must be served on each obligee by mailing a copy of the notice and the bond to the obligee by certified mail addressed to the claimant at the address stated in the lien affidavit for the obligee.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scH/s53.173/d">
<num value="d">(d)</num>
<content>If the claimant's lien affidavit does not state the claimant's address, the notice is not required to be mailed to the claimant.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3550, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 1138, Sec. 26, eff. Sept. 1, 1989; Acts 1997, 75th Leg., ch. 526, Sec. 19, eff. Sept. 1, 1997.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 25, eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scH/s53.174">
<num value="53.174">Sec. 53.174.</num>
<heading>RECORDING OF BOND AND NOTICE</heading>
<subsection identifier="/us/tx/pr/t5/c53/scH/s53.174/a">
<num value="a">(a)</num>
<content>The county clerk shall record the bond, the notice, and a certificate of mailing in the real property records.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scH/s53.174/b">
<num value="b">(b)</num>
<content>In acquiring an interest in or insuring title to real property, a purchaser, insurer of title, or lender may rely on and is absolutely protected by the record of the bond and the notice to the same extent as if the lien claimant had filed a release of lien in the real property records.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3550, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 1138, Sec. 27, eff. Sept. 1, 1989; Acts 1997, 75th Leg., ch. 526, Sec. 20, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scH/s53.175">
<num value="53.175">Sec. 53.175.</num>
<heading>ACTION ON BOND</heading>
<subsection identifier="/us/tx/pr/t5/c53/scH/s53.175/a">
<num value="a">(a)</num>
<content>A party making or holding a lien claim may not sue on the bond later than one year after the date on which the notice is served or after the date on which the underlying lien claim becomes unenforceable under Section 53.158.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scH/s53.175/b">
<num value="b">(b)</num>
<content>The bond is not exhausted by one action against it. Each named obligee or assignee of an obligee may maintain a separate suit on the bond in any court of jurisdiction in the county in which the real property is located.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3550, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 1138, Sec. 28, eff. Sept. 1, 1989; Acts 1997, 75th Leg., ch. 526, Sec. 21, eff. Sept. 1, 1997.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t5/c53/scI">
<num value="I">SUBCHAPTER I.</num>
<heading>BOND TO PAY LIENS OR CLAIMS</heading>
<section identifier="/us/tx/pr/t5/c53/scI/s53.201">
<num value="53.201">Sec. 53.201.</num>
<heading>BOND</heading>
<subsection identifier="/us/tx/pr/t5/c53/scI/s53.201/a">
<num value="a">(a)</num>
<content>An original contractor who has a written contract with the owner may furnish at any time a bond for the benefit of claimants.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scI/s53.201/b">
<num value="b">(b)</num>
<content>If a valid bond is filed, a claimant may not file suit against the owner or the owner's property and the owner is relieved of obligations under Subchapter D or E.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3551, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1997, 75th Leg., ch. 526, Sec. 22, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scI/s53.202">
<num value="53.202">Sec. 53.202.</num>
<heading>BOND REQUIREMENTS</heading>
<chapeau>The bond must:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scI/s53.202/1">
<num value="1">(1)</num>
<content>be in a penal sum at least equal to the total of the original contract amount;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scI/s53.202/2">
<num value="2">(2)</num>
<content>be in favor of the owner;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scI/s53.202/3">
<num value="3">(3)</num>
<content>have the written approval of the owner endorsed on it;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scI/s53.202/4">
<num value="4">(4)</num>
<chapeau>be executed by:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c53/scI/s53.202/A">
<num value="A">(A)</num>
<content>the original contractor as principal; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c53/scI/s53.202/B">
<num value="B">(B)</num>
<content>a corporate surety authorized and admitted to do business in this state and licensed by this state to execute bonds as surety, subject to Section 1, Chapter 87, Acts of the 56th Legislature, Regular Session, 1959 (Article 7.19-1, Vernon's Texas Insurance Code);</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scI/s53.202/5">
<num value="5">(5)</num>
<content>be conditioned on prompt payment for all labor, subcontracts, materials, specially fabricated materials, and normal and usual extras not exceeding 15 percent of the contract price; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scI/s53.202/6">
<num value="6">(6)</num>
<chapeau>clearly and prominently display on the bond or on an attachment to the bond:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c53/scI/s53.202/A">
<num value="A">(A)</num>
<content>the name, mailing address, physical address, and telephone number, including the area code, of the surety company to which any notice of claim should be sent; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c53/scI/s53.202/B">
<num value="B">(B)</num>
<content>the toll-free telephone number maintained by the Texas Department of Insurance under Subchapter B, Chapter 521, Insurance Code, and a statement that the address of the surety company to which any notice of claim should be sent may be obtained from the Texas Department of Insurance by calling the toll-free telephone number.</content>
</subparagraph>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3551, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 1138, Sec. 29, eff. Sept. 1, 1989; Acts 1997, 75th Leg., ch. 1132, Sec. 2, eff. Sept. 1, 1997; Acts 2001, 77th Leg., ch. 380, Sec. 5, eff. Sept. 1, 2001.
Amended by:
Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 11.158, eff. September 1, 2005.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scI/s53.203">
<num value="53.203">Sec. 53.203.</num>
<heading>RECORDING OF BOND AND CONTRACT</heading>
<subsection identifier="/us/tx/pr/t5/c53/scI/s53.203/a">
<num value="a">(a)</num>
<content>The bond and the contract between the original contractor and the owner shall be filed with the county clerk of the county in which is located all or part of the owner's property on which the construction or repair is being performed or is to be performed. A memorandum of the contract or a copy of the contract may be substituted for the original.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scI/s53.203/b">
<num value="b">(b)</num>
<content>The plans, specifications, and general conditions of the contract are not required to be filed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scI/s53.203/c">
<num value="c">(c)</num>
<content>The county clerk shall record the bond and place the contract on file in the clerk's office and shall index and cross-index both in the names of the original contractor and the owner in records kept for that purpose.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scI/s53.203/d">
<num value="d">(d)</num>
<content>On request and payment of a reasonable fee, the county clerk shall furnish a copy of the bond and contract to any person.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scI/s53.203/e">
<num value="e">(e)</num>
<content>In any court of this state or in the United States, a copy of the bond and contract certified by the county clerk constitutes prima facie evidence of the contents, execution, delivery, and filing of the originals.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3551, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1987, 70th Leg., ch. 683, Sec. 1, eff. Aug. 31, 1987; Acts 1989, 71st Leg., ch. 1138, Sec. 30, eff. Sept. 1, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scI/s53.204">
<num value="53.204">Sec. 53.204.</num>
<heading>RELIANCE ON RECORD</heading>
<content>A purchaser, lender, or other person acquiring an interest in the owner's property or an insurer of title is entitled to rely on the record of the bond and contract as constituting payment of all claims and liens for labor, subcontracts, materials, or specially fabricated materials incurred by the original contractor as if the purchaser, lender, or other person acquiring an interest in the owner's property or an insurer of title were the owner who approved, accepted, and endorsed the bond and as if each person furnishing labor or materials for the work performed under the original contract, other than the original contractor, had filed a complete release and relinquishment of lien of record.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3552, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 1138, Sec. 31, eff. Sept. 1, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scI/s53.205">
<num value="53.205">Sec. 53.205.</num>
<heading>ENFORCEABLE CLAIMS</heading>
<subsection identifier="/us/tx/pr/t5/c53/scI/s53.205/a">
<num value="a">(a)</num>
<chapeau>The bond protects all persons with a claim that is:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scI/s53.205/1">
<num value="1">(1)</num>
<content>perfected in the manner prescribed for fixing a lien under Subchapter C; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scI/s53.205/2">
<num value="2">(2)</num>
<content>perfected in the manner prescribed by Section 53.206.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scI/s53.205/b">
<num value="b">(b)</num>
<content>A claim or the rights to a claim under the bond may be assigned.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3552, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1999, 76th Leg., ch. 889, Sec. 5, eff. Sept. 1, 1999.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 26, eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scI/s53.206">
<num value="53.206">Sec. 53.206.</num>
<heading>PERFECTION OF CLAIM</heading>
<subsection identifier="/us/tx/pr/t5/c53/scI/s53.206/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (b), to perfect a claim against a bond in a manner other than that prescribed by Subchapter C for fixing a lien, a person must give notice under Sections 53.056 and 53.057, as applicable, to the original contractor and surety on the bond.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scI/s53.206/b">
<num value="b">(b)</num>
<content>To perfect a claim for retainage under this section, a claimant is not required to give notice to the surety under Section 53.057 if the claimant has a direct contractual relationship with the original contractor.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scI/s53.206/c">
<num value="c">(c)</num>
<content>A claimant that provides the notices described by this section is not required to file an affidavit claiming a mechanic's lien to perfect a claim under the bond.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scI/s53.206/d">
<num value="d">(d)</num>
<chapeau>A person satisfies the requirements of this section relating to providing notice to the surety if the person mails the notice by certified mail to the surety:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scI/s53.206/1">
<num value="1">(1)</num>
<content>at the address stated on the bond or on an attachment to the bond;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scI/s53.206/2">
<num value="2">(2)</num>
<content>at the address on file with the Texas Department of Insurance; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scI/s53.206/3">
<num value="3">(3)</num>
<content>at any other address allowed by law.</content>
</paragraph>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3552, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 1138, Sec. 32, eff. Sept. 1, 1989; Acts 1999, 76th Leg., ch. 889, Sec. 6, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 380, Sec. 6, eff. Sept. 1, 2001.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 27, eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scI/s53.207">
<num value="53.207">Sec. 53.207.</num>
<heading>OWNER'S NOTICE OF CLAIM TO SURETY</heading>
<subsection identifier="/us/tx/pr/t5/c53/scI/s53.207/a">
<num value="a">(a)</num>
<content>If the owner receives any of the notices or a lien is fixed under this chapter, the owner shall mail to the surety on the bond a copy of all notices received.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scI/s53.207/b">
<num value="b">(b)</num>
<content>Failure of the owner to send copies of notices to the surety does not relieve the surety of any liability under the bond if the claimant has complied with the requirements of this subchapter, nor does that failure impose any liability on the owner.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3553, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1999, 76th Leg., ch. 889, Sec. 7, eff. Sept. 1, 1999.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 28, eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scI/s53.208">
<num value="53.208">Sec. 53.208.</num>
<heading>ACTION ON BOND</heading>
<subsection identifier="/us/tx/pr/t5/c53/scI/s53.208/a">
<num value="a">(a)</num>
<content>A claimant may sue the principal and surety on the bond either jointly or severally, if the claim remains unpaid for 60 days after the claimant perfects the claim.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scI/s53.208/b">
<num value="b">(b)</num>
<content>The claimant may sue for the amount of the claim and court costs.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scI/s53.208/c">
<num value="c">(c)</num>
<content>The suit must be brought in the county in which the property being improved is located.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scI/s53.208/d">
<num value="d">(d)</num>
<content>If the bond is recorded at the time the lien is filed, the claimant must sue on the bond within one year following perfection of his claim. If the bond is not recorded at the time the lien is filed, the claimant must sue on the bond within two years following perfection of his claim.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3553, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 1138, Sec. 33, eff. Sept. 1, 1989.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 29, eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scI/s53.210">
<num value="53.210">Sec. 53.210.</num>
<heading>CLAIMS IN EXCESS OF BOND AMOUNT</heading>
<content>If valid claims against the bond exceed the penal sum of the bond, each claimant is entitled to a pro rata share of the penal sum.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3553, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scI/s53.211">
<num value="53.211">Sec. 53.211.</num>
<heading>ATTEMPTED COMPLIANCE</heading>
<subsection identifier="/us/tx/pr/t5/c53/scI/s53.211/a">
<num value="a">(a)</num>
<chapeau>A bond shall be construed to comply with this subchapter, and the rights and remedies on the bond are enforceable in the same manner as on other bonds under this subchapter, if the bond:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scI/s53.211/1">
<num value="1">(1)</num>
<content>is furnished and filed in attempted compliance with this subchapter; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scI/s53.211/2">
<num value="2">(2)</num>
<content>evidences by its terms intent to comply with this subchapter.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scI/s53.211/b">
<num value="b">(b)</num>
<content>Any provision in any payment bond furnished or filed in attempted compliance with this subchapter that expands or restricts the rights or liabilities provided under this chapter shall be disregarded and the provisions of this subchapter shall be read into that bond.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3554, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 1138, Sec. 34, eff. Sept. 1, 1989.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t5/c53/scJ">
<num value="J">SUBCHAPTER J.</num>
<heading>LIEN ON MONEY DUE PUBLIC WORKS CONTRACTOR</heading>
<section identifier="/us/tx/pr/t5/c53/scJ/s53.231">
<num value="53.231">Sec. 53.231.</num>
<heading>LIEN</heading>
<subsection identifier="/us/tx/pr/t5/c53/scJ/s53.231/a">
<num value="a">(a)</num>
<content>A person who furnishes material or labor to a contractor under a prime contract with a governmental entity other than a municipality or a joint board created under Subchapter D, Chapter 22, Transportation Code, that does not exceed $25,000 and that is for public improvements in this state and who gives notice required by this subchapter has a lien on the money, bonds, or warrants due the contractor for the improvements.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scJ/s53.231/b">
<num value="b">(b)</num>
<content>A person who furnishes material or labor to a contractor under a prime contract with a municipality or a joint board created under Subchapter D, Chapter 22, Transportation Code, that does not exceed $50,000 and that is for public improvements in this state and who gives notice required by this subchapter has a lien on the money, bonds, or warrants due the contractor for the improvements.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3554, ch. 576, Sec. 1, eff. Jan. 1, 1984.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1304 (H.B. 2515), Sec. 2, eff. September 1, 2009.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scJ/s53.232">
<num value="53.232">Sec. 53.232.</num>
<heading>TO WHOM NOTICE GIVEN; MANNER</heading>
<chapeau>The lien claimant must send written notice of his claim by certified mail to:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scJ/s53.232/1">
<num value="1">(1)</num>
<content>the officials of the state, county, town, or municipality whose duty it is to pay the contractor; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scJ/s53.232/2">
<num value="2">(2)</num>
<content>the contractor at the contractor's last known business or residence address.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3554, ch. 576, Sec. 1, eff. Jan. 1, 1984.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 30, eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scJ/s53.233">
<num value="53.233">Sec. 53.233.</num>
<heading>CONTENTS OF NOTICE</heading>
<subsection identifier="/us/tx/pr/t5/c53/scJ/s53.233/a">
<num value="a">(a)</num>
<chapeau>Whether based on written or oral agreement, the notice must contain:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scJ/s53.233/1">
<num value="1">(1)</num>
<content>the amount claimed;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scJ/s53.233/2">
<num value="2">(2)</num>
<content>the name of the party to whom the materials were delivered or for whom the labor was performed;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scJ/s53.233/3">
<num value="3">(3)</num>
<content>the dates and place of delivery or performance;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scJ/s53.233/4">
<num value="4">(4)</num>
<content>a description reasonably sufficient to identify the materials delivered or labor performed and the amount due;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scJ/s53.233/5">
<num value="5">(5)</num>
<content>a description reasonably sufficient to identify the project for which the material was delivered or the labor performed; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scJ/s53.233/6">
<num value="6">(6)</num>
<content>the claimant's business address.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scJ/s53.233/b">
<num value="b">(b)</num>
<content>The notice must be accompanied by a statement under oath that the amount claimed is just and correct and that all payments, lawful offsets, and credits known to the affiant have been allowed.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3554, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 1138, Sec. 35, eff. Sept. 1, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scJ/s53.234">
<num value="53.234">Sec. 53.234.</num>
<heading>TIME FOR NOTICE</heading>
<content>The lien claimant must give notice not later than the 15th day of the second month following the month in which the labor was performed or the material furnished.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3555, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 1138, Sec. 36, eff. Sept. 1, 1989.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1304 (H.B. 2515), Sec. 3, eff. September 1, 2009.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scJ/s53.235">
<num value="53.235">Sec. 53.235.</num>
<heading>OFFICIAL TO RETAIN FUNDS</heading>
<content>A public official who receives the notice may not pay all of the money, bonds, or warrants due the contractor, but shall retain enough to pay the claim for which notice is given.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3555, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scJ/s53.236">
<num value="53.236">Sec. 53.236.</num>
<heading>BOND FOR RELEASE OF LIEN</heading>
<subsection identifier="/us/tx/pr/t5/c53/scJ/s53.236/a">
<num value="a">(a)</num>
<content>If a claim is filed attempting to fix a lien under this subchapter, the contractor against whom the claim is made may file a bond with the officials of the state, county, town, or municipality whose duty it is to pay the money, bonds, or warrants to the contractor.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scJ/s53.236/b">
<num value="b">(b)</num>
<content>If the bond is approved by the proper official, its filing releases and discharges all liens fixed or attempted to be fixed by the filing of a claim, and the appropriate officials shall pay the money, bonds, or warrants to the contractor or the contractor's assignee.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3555, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scJ/s53.237">
<num value="53.237">Sec. 53.237.</num>
<heading>BOND REQUIREMENTS</heading>
<chapeau>The bond must be:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scJ/s53.237/1">
<num value="1">(1)</num>
<content>in an amount double the amount of the claims filed;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scJ/s53.237/2">
<num value="2">(2)</num>
<content>payable to the claimants;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scJ/s53.237/3">
<num value="3">(3)</num>
<chapeau>executed by:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c53/scJ/s53.237/A">
<num value="A">(A)</num>
<content>the party filing the bond as principal; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c53/scJ/s53.237/B">
<num value="B">(B)</num>
<content>a corporate surety authorized, admitted to do business, and licensed by the law of this state to execute the bond as surety; and</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scJ/s53.237/4">
<num value="4">(4)</num>
<chapeau>conditioned that:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c53/scJ/s53.237/A">
<num value="A">(A)</num>
<content>the principal and surety will pay to the obligees named or to their assignees the amount of the claims or the portions of the claims proved to be liens under this subchapter; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c53/scJ/s53.237/B">
<num value="B">(B)</num>
<content>the principal and surety will pay all court costs adjudged against the principal in actions brought by a claimant on the bond.</content>
</subparagraph>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3555, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 1138, Sec. 37, eff. Sept. 1, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scJ/s53.238">
<num value="53.238">Sec. 53.238.</num>
<heading>NOTICE OF BOND</heading>
<content>The official with whom the bond is filed shall send an exact copy of the bond by certified mail, return receipt requested, to all claimants.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3556, ch. 576, Sec. 1, eff. Jan. 1, 1984.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 31, eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scJ/s53.239">
<num value="53.239">Sec. 53.239.</num>
<heading>ACTION ON BOND</heading>
<subsection identifier="/us/tx/pr/t5/c53/scJ/s53.239/a">
<num value="a">(a)</num>
<content>A claimant must sue on the bond within six months after the bond is filed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scJ/s53.239/b">
<num value="b">(b)</num>
<content>The bond is not exhausted by one action on it. Each obligee or his assignee may maintain a separate suit on the bond in any court of jurisdiction.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3556, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t5/c53/scK">
<num value="K">SUBCHAPTER K.</num>
<heading>RESIDENTIAL CONSTRUCTION PROJECTS</heading>
<section identifier="/us/tx/pr/t5/c53/scK/s53.251">
<num value="53.251">Sec. 53.251.</num>
<heading>PROCEDURES FOR RESIDENTIAL CONSTRUCTION PROJECTS</heading>
<subsection identifier="/us/tx/pr/t5/c53/scK/s53.251/a">
<num value="a">(a)</num>
<content>This subchapter applies only to residential construction projects.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scK/s53.251/b">
<num value="b">(b)</num>
<content>A person must comply with this subchapter in addition to the other applicable provisions of this chapter to perfect a lien that arises from a claim resulting from a residential construction project.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 526, Sec. 23, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scK/s53.254">
<num value="53.254">Sec. 53.254.</num>
<heading>CONTRACTUAL REQUIREMENTS FOR LIEN ON HOMESTEAD</heading>
<subsection identifier="/us/tx/pr/t5/c53/scK/s53.254/a">
<num value="a">(a)</num>
<content>To fix a lien on a homestead, the person who is to furnish material or perform labor and the owner must execute a written contract setting forth the terms of the agreement.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scK/s53.254/b">
<num value="b">(b)</num>
<content>The contract must be executed before the material is furnished or the labor is performed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scK/s53.254/c">
<num value="c">(c)</num>
<content>If the owner is married, the contract must be signed by both spouses.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scK/s53.254/d">
<num value="d">(d)</num>
<content>If the contract is made by an original contractor, the contract inures to the benefit of all persons who labor or furnish material for the original contractor.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scK/s53.254/e">
<num value="e">(e)</num>
<content>The contract must be filed with the county clerk of the county in which the homestead is located. The county clerk shall record the contract in records kept for that purpose.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scK/s53.254/f">
<num value="f">(f)</num>
<content>An affidavit for lien filed under this subchapter that relates to a homestead must contain the following notice conspicuously printed, stamped, or typed in a size equal to at least 10-point boldface or the computer equivalent, at the top of the page:</content>
<continuation>"NOTICE: THIS IS NOT A LIEN. THIS IS ONLY AN AFFIDAVIT CLAIMING A LIEN."</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scK/s53.254/g">
<num value="g">(g)</num>
<content>For the lien on a homestead to be valid, the notice required to be given to the owner under Subchapter C must include or have attached the following statement:</content>
<continuation>"If a subcontractor or supplier who furnishes materials or performs labor for construction of improvements on your property is not paid, your property may be subject to a lien for the unpaid amount if:</continuation>
<paragraph identifier="/us/tx/pr/t5/c53/scK/s53.254/1">
<num value="1">(1)</num>
<content>after receiving notice of the unpaid claim from the claimant, you fail to withhold payment to your contractor that is sufficient to cover the unpaid claim until the dispute is resolved; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scK/s53.254/2">
<num value="2">(2)</num>
<content>during construction and for 30 days after completion of your contractor's work, you fail to reserve 10 percent of the contract price or 10 percent of the value of the work performed by your contractor.</content>
<continuation>"If you have complied with the law regarding the reservation of 10 percent of the contract price or value of work and you have withheld payment to the contractor sufficient to cover any written notice of claim and have paid that amount, if any, to the claimant, any lien claim filed on your property by a subcontractor or supplier, other than a person who contracted directly with you, will not be a valid lien on your property. In addition, except for the required 10 percent reservation, you are not liable to a subcontractor or supplier for any amount paid to your contractor before you received written notice of the claim."</continuation>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 526, Sec. 23, eff. Sept. 1, 1997.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 32, eff. January 1, 2022.
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 33, eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scK/s53.255">
<num value="53.255">Sec. 53.255.</num>
<heading>DISCLOSURE STATEMENT REQUIRED FOR RESIDENTIAL CONSTRUCTION CONTRACT</heading>
<subsection identifier="/us/tx/pr/t5/c53/scK/s53.255/a">
<num value="a">(a)</num>
<content>Before a residential construction contract is executed by the owner, the original contractor shall deliver to the owner a disclosure statement described by this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scK/s53.255/b">
<num value="b">(b)</num>
<content>The disclosure statement must read substantially similar to the following:</content>
<continuation>"KNOW YOUR RIGHTS AND RESPONSIBILITIES UNDER THE LAW. You are about to enter into a transaction to build a new home or remodel existing residential property. Texas law requires your contractor to provide you with this brief overview of some of your rights, responsibilities, and risks in this transaction.</continuation>
<continuation>"CONVEYANCE TO CONTRACTOR NOT REQUIRED. Your contractor may not require you to convey your real property to your contractor as a condition to the agreement for the construction of improvements on your property.</continuation>
<continuation>"KNOW YOUR CONTRACTOR. Before you enter into your agreement for the construction of improvements to your real property, make sure that you have investigated your contractor. Obtain and verify references from other people who have used the contractor for the type and size of construction project on your property.</continuation>
<continuation>"GET IT IN WRITING. Make sure that you have a written agreement with your contractor that includes: (1) a description of the work the contractor is to perform; (2) the required or estimated time for completion of the work; (3) the cost of the work or how the cost will be determined; and (4) the procedure and method of payment, including provisions for statutory reservation of funds and conditions for final payment. If your contractor made a promise, warranty, or representation to you concerning the work the contractor is to perform, make sure that promise, warranty, or representation is specified in the written agreement. An oral promise that is not included in the written agreement may not be enforceable under Texas law.</continuation>
<continuation>"READ BEFORE YOU SIGN. Do not sign any document before you have read and understood it. NEVER SIGN A DOCUMENT THAT INCLUDES AN UNTRUE STATEMENT. Take your time in reviewing documents. If you borrow money from a lender to pay for the improvements, you are entitled to have the loan closing documents furnished to you for review at least one business day before the closing. Do not waive this requirement unless a bona fide emergency or another good cause exists, and make sure you understand the documents before you sign them. If you fail to comply with the terms of the documents, you could lose your property. You are entitled to have your own attorney review any documents. If you have any question about the meaning of a document, consult an attorney.</continuation>
<continuation>"GET A LIST OF SUBCONTRACTORS AND SUPPLIERS. Before construction commences, your contractor is required to provide you with a list of the subcontractors and suppliers the contractor intends to use on your project. Your contractor is required to supply updated information on any subcontractors and suppliers added after the list is provided. Your contractor is not required to supply this information if you sign a written waiver of your rights to receive this information.</continuation>
<continuation>"MONITOR THE WORK. Lenders and governmental authorities may inspect the work in progress from time to time for their own purposes. These inspections are not intended as quality control inspections. Quality control is a matter for you and your contractor. To ensure that your home is being constructed in accordance with your wishes and specifications, you should inspect the work yourself or have your own independent inspector review the work in progress.</continuation>
<continuation>"MONITOR PAYMENTS. If you use a lender, your lender is required to provide you with a periodic statement showing the money disbursed by the lender from the proceeds of your loan. Each time your contractor requests payment from you or your lender for work performed, your contractor is also required to furnish you with a disbursement statement that lists the name and address of each subcontractor or supplier that the contractor intends to pay from the requested funds. Review these statements and make sure that the money is being properly disbursed.</continuation>
<continuation>"CLAIMS BY SUBCONTRACTORS AND SUPPLIERS. Under Texas law, if a subcontractor or supplier who furnishes labor or materials for the construction of improvements on your property is not paid, you may become liable and your property may be subject to a lien for the unpaid amount, even if you have not contracted directly with the subcontractor or supplier. To avoid liability, you should take the following actions:</continuation>
<paragraph identifier="/us/tx/pr/t5/c53/scK/s53.255/1">
<num value="1">(1)</num>
<content>If you receive a written notice from a subcontractor or supplier, you should withhold payment from your contractor for the amount of the claim stated in the notice until the dispute between your contractor and the subcontractor or supplier is resolved. If your lender is disbursing money directly to your contractor, you should immediately provide a copy of the notice to your lender and instruct the lender to withhold payment in the amount of the claim stated in the notice. If you continue to pay the contractor after receiving the written notice without withholding the amount of the claim, you may be liable and your property may be subject to a lien for the amount you failed to withhold.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scK/s53.255/2">
<num value="2">(2)</num>
<content>During construction and for 30 days after final completion, termination, or abandonment of the contract by the contractor, you should reserve or cause your lender to reserve 10 percent of the amount of payments made for the work performed by your contractor. If you choose not to reserve the 10 percent for at least 30 days after final completion, termination, or abandonment of the contract by the contractor and if a valid claim is timely made by a claimant and your contractor fails to pay the claim, you may be personally liable and your property may be subject to a lien up to the amount that you failed to reserve.</content>
<continuation>"If a claim is not paid within a certain time period, the claimant is required to file a mechanic's lien affidavit in the real property records in the county where the property is located. A mechanic's lien affidavit is not a lien on your property, but the filing of the affidavit could result in a court imposing a lien on your property if the claimant is successful in litigation to enforce the lien claim.</continuation>
<continuation>"SOME CLAIMS MAY NOT BE VALID. When you receive a written notice of a claim or when a mechanic's lien affidavit is filed on your property, you should know your legal rights and responsibilities regarding the claim. Not all claims are valid. A notice of a claim by a subcontractor or supplier is required to be sent, and the mechanic's lien affidavit is required to be filed, within strict time periods. The notice and the affidavit must contain certain information. All claimants may not fully comply with the legal requirements to collect on a claim. If you have paid the contractor in full before receiving a notice of a claim and have withheld the 10 percent of the contract price or value of work, you may not be liable for that claim. Accordingly, you should consult your attorney when you receive a written notice of a claim to determine the true extent of your liability or potential liability for that claim.</continuation>
<continuation>"OBTAIN A LIEN RELEASE AND A BILLS-PAID AFFIDAVIT. When you receive a notice of claim, do not release withheld funds without obtaining a signed and notarized release of lien and claim from the claimant. You can also reduce the risk of having a claim filed by a subcontractor or supplier by requiring as a condition of each payment made by you or your lender that your contractor furnish you with an affidavit stating that all bills have been paid. Under Texas law, on final completion of the work and before final payment, the contractor is required to furnish you with an affidavit stating that all bills have been paid. If the contractor discloses any unpaid bill in the affidavit, you should withhold payment in the amount of the unpaid bill until you receive a waiver of lien or release from that subcontractor or supplier.</continuation>
<continuation>"OBTAIN TITLE INSURANCE PROTECTION. You may be able to obtain a title insurance policy to insure that the title to your property and the existing improvements on your property are free from liens claimed by subcontractors and suppliers. If your policy is issued before the improvements are completed and covers the value of the improvements to be completed, you should obtain, on the completion of the improvements and as a condition of your final payment, a 'completion of improvements' policy endorsement. This endorsement will protect your property from liens claimed by subcontractors and suppliers that may arise from the date the original title policy is issued to the date of the endorsement."</continuation>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scK/s53.255/c">
<num value="c">(c)</num>
<content>The failure of a contractor to comply with this section does not invalidate a lien under this chapter, a contract lien, or a deed of trust.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 526, Sec. 23, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 889, Sec. 8, eff. Sept. 1, 1999.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 34, eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scK/s53.256">
<num value="53.256">Sec. 53.256.</num>
<heading>LIST OF SUBCONTRACTORS AND SUPPLIERS</heading>
<subsection identifier="/us/tx/pr/t5/c53/scK/s53.256/a">
<num value="a">(a)</num>
<chapeau>Except as provided by Subsection (d), for the construction of improvements under a residential construction contract, the original contractor shall:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scK/s53.256/1">
<num value="1">(1)</num>
<content>furnish to the owner before the commencement of construction a written list that identifies by name, address, and telephone number each subcontractor and supplier the contractor intends to use in the work to be performed; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scK/s53.256/2">
<num value="2">(2)</num>
<content>provide the owner with an updated list of subcontractors and suppliers not later than the 15th day after the date a subcontractor or supplier is added or deleted.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scK/s53.256/b">
<num value="b">(b)</num>
<content>The list must contain the following notice conspicuously printed, stamped, or typed in a size equal to at least 10-point boldface or the computer equivalent:</content>
<continuation>"NOTICE: THIS LIST OF SUBCONTRACTORS AND SUPPLIERS MAY NOT BE A FINAL LISTING. UNLESS YOU SIGN A WAIVER OF YOUR RIGHT TO RECEIVE UPDATED INFORMATION, THE CONTRACTOR IS REQUIRED BY LAW TO SUPPLY UPDATED INFORMATION, AS THE INFORMATION BECOMES AVAILABLE, FOR EACH SUBCONTRACTOR OR SUPPLIER USED IN THE WORK PERFORMED ON YOUR RESIDENCE."</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scK/s53.256/c">
<num value="c">(c)</num>
<content>The failure of a contractor to comply with this section does not invalidate a lien under this chapter, a contract lien, or a deed of trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scK/s53.256/d">
<num value="d">(d)</num>
<content>An owner may waive the right to receive the list of subcontractors and suppliers or any updated information required by this section only as provided by this subsection. The waiver must be in writing and may be included in the residential construction contract. If the waiver is not included as a provision of the residential construction contract, the separate waiver statement must be signed by the owner. The waiver must be conspicuously printed in at least 10-point bold-faced type and read substantially similar to the following:</content>
<continuation>"WAIVER OF THE LIST OF SUBCONTRACTORS AND SUPPLIERS. AN OWNER IS NOT REQUIRED TO WAIVE THE RIGHT GRANTED BY SECTION 53.256, PROPERTY CODE, TO RECEIVE FROM THE CONTRACTOR AN ORIGINAL OR UPDATED LIST OF SUBCONTRACTORS AND SUPPLIERS.</continuation>
<continuation>"BY SIGNING THIS DOCUMENT, I AGREE TO WAIVE MY RIGHT TO RECEIVE FROM THE CONTRACTOR AN ORIGINAL OR UPDATED LIST OF SUBCONTRACTORS AND SUPPLIERS.</continuation>
<continuation>"I UNDERSTAND AND ACKNOWLEDGE THAT, AFTER SIGNING THIS DOCUMENT, THIS WAIVER MAY NOT BE CANCELED AT A LATER DATE.</continuation>
<continuation>"I HAVE VOLUNTARILY CONSENTED TO THIS WAIVER."</continuation>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 526, Sec. 23, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 889, Sec. 9, eff. Sept. 1, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scK/s53.257">
<num value="53.257">Sec. 53.257.</num>
<heading>PROVISIONS RELATED TO CLOSING OF LOAN FOR CONSTRUCTION OF IMPROVEMENTS</heading>
<subsection identifier="/us/tx/pr/t5/c53/scK/s53.257/a">
<num value="a">(a)</num>
<content>If the owner is obtaining third-party financing for the construction of improvements under a residential construction contract, the lender shall deliver to the owner all documentation relating to the closing of the loan not later than one business day before the date of the closing. If a bona fide emergency or another good cause exists and the lender obtains the written consent of the owner, the lender may provide the documentation to the owner or the lender may modify previously provided documentation on the date of closing.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scK/s53.257/b">
<num value="b">(b)</num>
<content>The lender shall provide to the owner the disclosure statement described by Section 53.255(b). The disclosure statement must be provided to the owner before the date of closing. If a bona fide emergency or another good cause exists and the lender obtains the written consent of the owner, the lender may provide the disclosure statement at the closing. The lender shall retain a signed and dated copy of the disclosure statement with the closing documents.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scK/s53.257/c">
<num value="c">(c)</num>
<content>The failure of a lender to comply with this section does not invalidate a lien under this chapter, a contract lien, or a deed of trust.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 526, Sec. 23, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scK/s53.258">
<num value="53.258">Sec. 53.258.</num>
<heading>DISBURSEMENTS OF FUNDS</heading>
<subsection identifier="/us/tx/pr/t5/c53/scK/s53.258/a">
<num value="a">(a)</num>
<chapeau>At the time the original contractor requests payment from the owner or the owner's lender for the construction of improvements under a residential construction contract, the original contractor shall provide to the owner a disbursement statement. The statement may include any information agreed to by the owner and the original contractor and must include at least the name and address of each person who subcontracted directly with the original contractor and who the original contractor intends to pay from the requested funds. The original contractor shall provide the disbursement statement:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scK/s53.258/1">
<num value="1">(1)</num>
<content>in the manner agreed to in writing by the owner and original contractor; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scK/s53.258/2">
<num value="2">(2)</num>
<content>if no agreement exists, by depositing the statement in the United States mail, first class, postage paid, and properly addressed to the owner or by hand delivering the statement to the owner before the original contractor receives the requested funds.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scK/s53.258/b">
<num value="b">(b)</num>
<chapeau>If the owner finances the construction of improvements through a third party that advances loan proceeds directly to the original contractor, the lender shall:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scK/s53.258/1">
<num value="1">(1)</num>
<content>obtain from the original contractor the signed disbursement statement required by Subsection (a) that covers the funds for which the original contractor is requesting payment; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scK/s53.258/2">
<num value="2">(2)</num>
<content>provide to the owner a statement of funds disbursed by the lender since the last statement was provided to the owner.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scK/s53.258/c">
<num value="c">(c)</num>
<content>The lender shall provide to the owner the lender's disbursement statement and the disbursement statement the lender obtained from the contractor before the lender disburses the funds to the original contractor. The disbursement statements may be provided in any manner agreed to by the lender and the owner.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scK/s53.258/d">
<num value="d">(d)</num>
<content>The lender is not responsible for the accuracy of the information contained in the disbursement statement obtained from the original contractor.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scK/s53.258/e">
<num value="e">(e)</num>
<content>The failure of a lender or an original contractor to comply with this section does not invalidate a lien under this chapter, a contract lien, or a deed of trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scK/s53.258/f">
<num value="f">(f)</num>
<content>A person commits an offense if the person intentionally, knowingly, or recklessly provides false or misleading information in a disbursement statement required under this section. An offense under this section is a misdemeanor. A person adjudged guilty of an offense under this section shall be punished by a fine not to exceed $4,000 or confinement in jail for a term not to exceed one year or both a fine and confinement. A person may not receive community supervision for the offense.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 526, Sec. 23, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 889, Sec. 10, eff. Sept. 1, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scK/s53.259">
<num value="53.259">Sec. 53.259.</num>
<heading>FINAL BILLS-PAID AFFIDAVIT REQUIRED</heading>
<subsection identifier="/us/tx/pr/t5/c53/scK/s53.259/a">
<num value="a">(a)</num>
<content>As a condition of final payment under a residential construction contract, the original contractor shall, at the time the final payment is tendered, execute and deliver to the owner, or the owner's agent, an affidavit stating that the original contractor has paid each person in full for all labor and materials used in the construction of improvements on the real property. If the original contractor has not paid each person in full, the original contractor shall state in the affidavit the amount owed and the name and, if known, the address and telephone number of each person to whom a payment is owed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scK/s53.259/b">
<num value="b">(b)</num>
<content>The seller of any real property on which a structure of not more than four units is constructed and that is intended as the principal place of residence for the purchaser shall, at the closing of the purchase of the real property, execute and deliver to the purchaser, or the purchaser's agent, an affidavit stating that the seller has paid each person in full for all labor and materials used in the construction of improvements on the real property and that the seller is not indebted to any person by reason of any construction. In the event that the seller has not paid each person in full, the seller shall state in the affidavit the amount owed and the name and, if known, the address and telephone number of each person to whom a payment is owed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scK/s53.259/c">
<num value="c">(c)</num>
<content>A person commits an offense if the person intentionally, knowingly, or recklessly makes a false or misleading statement in an affidavit under this section. An offense under this section is a misdemeanor. A person adjudged guilty of an offense under this section shall be punished by a fine not to exceed $4,000 or confinement in jail for a term not to exceed one year or both a fine and confinement. A person may not receive community supervision for the offense.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scK/s53.259/d">
<num value="d">(d)</num>
<content>A person signing an affidavit under this section is personally liable for any loss or damage resulting from any false or incorrect information in the affidavit.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 526, Sec. 23, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scK/s53.260">
<num value="53.260">Sec. 53.260.</num>
<heading>CONVEYANCE TO CONTRACTOR NOT REQUIRED</heading>
<content>An original contractor may not require an owner of real property to convey the real property to the original contractor or an entity controlled by the original contractor as a condition to the performance of the residential construction contract for improvements to the real property.</content>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 526, Sec. 23, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 889, Sec. 11, eff. Sept. 1, 1999.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t5/c53/scL">
<num value="L">SUBCHAPTER L.</num>
<heading>WAIVER AND RELEASE OF LIEN OR PAYMENT BOND CLAIM</heading>
<section identifier="/us/tx/pr/t5/c53/scL/s53.281">
<num value="53.281">Sec. 53.281.</num>
<heading>WAIVER AND RELEASE OF LIEN OR PAYMENT BOND CLAIM</heading>
<subsection identifier="/us/tx/pr/t5/c53/scL/s53.281/a">
<num value="a">(a)</num>
<content>Any waiver and release of a lien or payment bond claim under this chapter is unenforceable unless a waiver and release is executed and delivered in accordance with this subchapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scL/s53.281/b">
<num value="b">(b)</num>
<chapeau>A waiver and release is effective to release the owner, the owner's property, the contractor, and the surety on a payment bond from claims and liens only if:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scL/s53.281/1">
<num value="1">(1)</num>
<content>the waiver and release substantially complies with one of the forms prescribed by Section 53.284;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scL/s53.281/2">
<num value="2">(2)</num>
<content>the waiver and release is signed by the claimant or the claimant's authorized agent; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scL/s53.281/3">
<num value="3">(3)</num>
<content>in the case of a conditional release, evidence of payment to the claimant exists.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 271 (H.B. 1456), Sec. 3, eff. January 1, 2012.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 690 (H.B. 2237), Sec. 35, eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scL/s53.282">
<num value="53.282">Sec. 53.282.</num>
<heading>CONDITIONS FOR WAIVER, RELEASE, OR IMPAIRMENT OF LIEN OR PAYMENT BOND CLAIM</heading>
<subsection identifier="/us/tx/pr/t5/c53/scL/s53.282/a">
<num value="a">(a)</num>
<chapeau>A statement purporting to waive, release, or otherwise adversely affect a lien or payment bond claim is not enforceable and does not create an estoppel or impairment of a lien or payment bond claim unless:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scL/s53.282/1">
<num value="1">(1)</num>
<content>the statement is in writing and substantially complies with a form prescribed by Section 53.284;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scL/s53.282/2">
<num value="2">(2)</num>
<content>the claimant has actually received payment in good and sufficient funds in full for the lien or payment bond claim; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scL/s53.282/3">
<num value="3">(3)</num>
<chapeau>the statement is:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c53/scL/s53.282/A">
<num value="A">(A)</num>
<content>in a written original contract or subcontract for the construction, remodel, or repair of a single-family house, townhouse, or duplex or for land development related to a single-family house, townhouse, or duplex; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c53/scL/s53.282/B">
<num value="B">(B)</num>
<content>made before labor or materials are provided under the original contract or subcontract.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scL/s53.282/b">
<num value="b">(b)</num>
<chapeau>The filing of a lien rendered unenforceable by a lien waiver under Subsection (a)(3) does not violate Section 12.002, Civil Practice and Remedies Code, unless:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scL/s53.282/1">
<num value="1">(1)</num>
<content>an owner or original contractor sends a written explanation of the basis for nonpayment, evidence of the contractual waiver of lien rights, and a notice of request for release of the lien to the claimant at the claimant's address stated in the lien affidavit; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scL/s53.282/2">
<num value="2">(2)</num>
<content>the lien claimant does not release the filed lien affidavit on or before the 14th day after the date the owner or the original contractor sends the items required by Subdivision (1).</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scL/s53.282/c">
<num value="c">(c)</num>
<content>Subsection (a)(3) does not apply to a person who supplies only material, and not labor, for the construction, remodel, or repair of a single-family house, townhouse, or duplex or for land development related to a single-family house, townhouse, or duplex.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 271 (H.B. 1456), Sec. 3, eff. January 1, 2012.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scL/s53.283">
<num value="53.283">Sec. 53.283.</num>
<heading>UNCONDITIONAL WAIVER AND RELEASE: PAYMENT REQUIRED</heading>
<content>A person may not require a claimant or potential claimant to execute an unconditional waiver and release for a progress payment or final payment amount unless the claimant or potential claimant received payment in that amount in good and sufficient funds.</content>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 271 (H.B. 1456), Sec. 3, eff. January 1, 2012.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scL/s53.284">
<num value="53.284">Sec. 53.284.</num>
<heading>FORMS FOR WAIVER AND RELEASE OF LIEN OR PAYMENT BOND CLAIM</heading>
<subsection identifier="/us/tx/pr/t5/c53/scL/s53.284/a">
<num value="a">(a)</num>
<content>A waiver and release given by a claimant or potential claimant is unenforceable unless it substantially complies with the applicable form described by Subsections (b)-(e).</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c53/scL/s53.284/b">
<num value="b">(b)</num>
<content>If a claimant or potential claimant is required to execute a waiver and release in exchange for or to induce the payment of a progress payment and is not paid in exchange for the waiver and release or if a single payee check or joint payee check is given in exchange for the waiver and release, the waiver and release must read:</content>
</subsection>
<sourceCredit>"CONDITIONAL WAIVER AND RELEASE ON PROGRESS PAYMENT
"Project ___________________
"Job No. ___________________
"On receipt by the signer of this document of a check from ________________ (maker of check) in the sum of $__________ payable to _____________________ (payee or payees of check) and when the check has been properly endorsed and has been paid by the bank on which it is drawn, this document becomes effective to release any mechanic's lien right, any right arising from a payment bond that complies with a state or federal statute, any common law payment bond right, any claim for payment, and any rights under any similar ordinance, rule, or statute related to claim or payment rights for persons in the signer's position that the signer has on the property of ________________ (owner) located at ______________________ (location) to the following extent: ______________________ (job description).
"This release covers a progress payment for all labor, services, equipment, or materials furnished to the property or to __________________ (person with whom signer contracted) as indicated in the attached statement(s) or progress payment request(s), except for unpaid retention, pending modifications and changes, or other items furnished.
"Before any recipient of this document relies on this document, the recipient should verify evidence of payment to the signer.
"The signer warrants that the signer has already paid or will use the funds received from this progress payment to promptly pay in full all of the signer's laborers, subcontractors, materialmen, and suppliers for all work, materials, equipment, or services provided for or to the above referenced project in regard to the attached statement(s) or progress payment request(s).
"Date ____________________________
"_________________________________ (Company name)
"By ______________________________ (Signature)
"_________________________________ (Title)"
(c) If a claimant or potential claimant is required to execute an unconditional waiver and release to prove the receipt of good and sufficient funds for a progress payment and the claimant or potential claimant asserts in the waiver and release that the claimant or potential claimant has been paid the progress payment, the waiver and release must:
(1) contain a notice at the top of the document, printed in bold type at least as large as the largest type used in the document, but not smaller than 10-point type, that reads:
"NOTICE:
"This document waives rights unconditionally and states that you have been paid for giving up those rights. It is prohibited for a person to require you to sign this document if you have not been paid the payment amount set forth below. If you have not been paid, use a conditional release form."; and
(2) below the notice, read:
"UNCONDITIONAL WAIVER AND RELEASE ON PROGRESS PAYMENT
"Project ___________________
"Job No. ___________________
"The signer of this document has been paid and has received a progress payment in the sum of $___________ for all labor, services, equipment, or materials furnished to the property or to _____________________ (person with whom signer contracted) on the property of _______________________ (owner) located at ______________________ (location) to the following extent: ______________________ (job description). The signer therefore waives and releases any mechanic's lien right, any right arising from a payment bond that complies with a state or federal statute, any common law payment bond right, any claim for payment, and any rights under any similar ordinance, rule, or statute related to claim or payment rights for persons in the signer's position that the signer has on the above referenced project to the following extent:
"This release covers a progress payment for all labor, services, equipment, or materials furnished to the property or to __________________ (person with whom signer contracted) as indicated in the attached statement(s) or progress payment request(s), except for unpaid retention, pending modifications and changes, or other items furnished.
"The signer warrants that the signer has already paid or will use the funds received from this progress payment to promptly pay in full all of the signer's laborers, subcontractors, materialmen, and suppliers for all work, materials, equipment, or services provided for or to the above referenced project in regard to the attached statement(s) or progress payment request(s).
"Date ____________________________
"_________________________________ (Company name)
"By ______________________________ (Signature)
"_________________________________ (Title)"
(d) If a claimant or potential claimant is required to execute a waiver and release in exchange for or to induce the payment of a final payment and is not paid in good and sufficient funds in exchange for the waiver and release or if a single payee check or joint payee check is given in exchange for the waiver and release, the waiver and release must read:
"CONDITIONAL WAIVER AND RELEASE ON FINAL PAYMENT
"Project ___________________
"Job No. ___________________
"On receipt by the signer of this document of a check from ________________ (maker of check) in the sum of $____________ payable to _____________________ (payee or payees of check) and when the check has been properly endorsed and has been paid by the bank on which it is drawn, this document becomes effective to release any mechanic's lien right, any right arising from a payment bond that complies with a state or federal statute, any common law payment bond right, any claim for payment, and any rights under any similar ordinance, rule, or statute related to claim or payment rights for persons in the signer's position that the signer has on the property of _____________________ (owner) located at ______________________ (location) to the following extent: ______________________ (job description).
"This release covers the final payment to the signer for all labor, services, equipment, or materials furnished to the property or to __________________ (person with whom signer contracted).
"Before any recipient of this document relies on this document, the recipient should verify evidence of payment to the signer.
"The signer warrants that the signer has already paid or will use the funds received from this final payment to promptly pay in full all of the signer's laborers, subcontractors, materialmen, and suppliers for all work, materials, equipment, or services provided for or to the above referenced project up to the date of this waiver and release.
"Date ____________________________
"_________________________________ (Company name)
"By ______________________________ (Signature)
"_________________________________ (Title)"
(e) If a claimant or potential claimant is required to execute an unconditional waiver and release to prove the receipt of good and sufficient funds for a final payment and the claimant or potential claimant asserts in the waiver and release that the claimant or potential claimant has been paid the final payment, the waiver and release must:
(1) contain a notice at the top of the document, printed in bold type at least as large as the largest type used in the document, but not smaller than 10-point type, that reads:
"NOTICE:
"This document waives rights unconditionally and states that you have been paid for giving up those rights. It is prohibited for a person to require you to sign this document if you have not been paid the payment amount set forth below. If you have not been paid, use a conditional release form."; and
(2) below the notice, read:
"UNCONDITIONAL WAIVER AND RELEASE ON FINAL PAYMENT
"Project ___________________
"Job No. ___________________
"The signer of this document has been paid in full for all labor, services, equipment, or materials furnished to the property or to ___________________ (person with whom signer contracted) on the property of ______________________ (owner) located at ______________________ (location) to the following extent: ______________________ (job description). The signer therefore waives and releases any mechanic's lien right, any right arising from a payment bond that complies with a state or federal statute, any common law payment bond right, any claim for payment, and any rights under any similar ordinance, rule, or statute related to claim or payment rights for persons in the signer's position.
"The signer warrants that the signer has already paid or will use the funds received from this final payment to promptly pay in full all of the signer's laborers, subcontractors, materialmen, and suppliers for all work, materials, equipment, or services provided for or to the above referenced project up to the date of this waiver and release.
"Date ____________________________
"_________________________________ (Company name)
"By ______________________________ (Signature)
"_________________________________ (Title)"
Added by Acts 2011, 82nd Leg., R.S., Ch. 271 (H.B. 1456), Sec. 3, eff. January 1, 2012.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scL/s53.286">
<num value="53.286">Sec. 53.286.</num>
<heading>PUBLIC POLICY</heading>
<content>Notwithstanding any other law and except as provided by Section 53.282, any contract, agreement, or understanding purporting to waive the right to file or enforce any lien or claim created under this chapter is void as against public policy.</content>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 271 (H.B. 1456), Sec. 3, eff. January 1, 2012.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c53/scL/s53.287">
<num value="53.287">Sec. 53.287.</num>
<heading>CERTAIN AGREEMENTS EXEMPT</heading>
<chapeau>This subchapter does not apply to a written agreement to subordinate, release, waive, or satisfy all or part of a lien or bond claim in:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c53/scL/s53.287/1">
<num value="1">(1)</num>
<content>an accord and satisfaction of an identified dispute;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scL/s53.287/2">
<num value="2">(2)</num>
<content>an agreement concerning an action pending in any court or arbitration proceeding; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c53/scL/s53.287/3">
<num value="3">(3)</num>
<content>an agreement that is executed after an affidavit claiming the lien has been filed or the bond claim has been made.</content>
</paragraph>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 271 (H.B. 1456), Sec. 3, eff. January 1, 2012.</sourceCredit>
</section>
</subchapter>
</chapter>
<chapter identifier="/us/tx/pr/t5/c54">
<num value="54">CHAPTER 54.</num>
<heading>LANDLORD'S LIENS</heading>
<subchapter identifier="/us/tx/pr/t5/c54/scA">
<num value="A">SUBCHAPTER A.</num>
<heading>AGRICULTURAL LANDLORD'S LIEN</heading>
<section identifier="/us/tx/pr/t5/c54/scA/s54.001">
<num value="54.001">Sec. 54.001.</num>
<heading>LIEN</heading>
<content>A person who leases land or tenements at will or for a term of years has a preference lien for rent that becomes due and for the money and the value of property that the landlord furnishes or causes to be furnished to the tenant to grow a crop on the leased premises and to gather, store, and prepare the crop for marketing.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3557, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c54/scA/s54.002">
<num value="54.002">Sec. 54.002.</num>
<heading>PROPERTY TO WHICH LIEN ATTACHES</heading>
<subsection identifier="/us/tx/pr/t5/c54/scA/s54.002/a">
<num value="a">(a)</num>
<chapeau>Except as provided by Subsections (b) and (c), the lien attaches to:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c54/scA/s54.002/1">
<num value="1">(1)</num>
<content>the property on the leased premises that the landlord furnishes or causes to be furnished to the tenant to grow a crop on the leased premises; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c54/scA/s54.002/2">
<num value="2">(2)</num>
<content>the crop grown on the leased premises in the year that the rent accrues or the property is furnished.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c54/scA/s54.002/b">
<num value="b">(b)</num>
<content>If the landlord provides everything except labor, the lien attaches only to the crop grown in the year that the property is furnished.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c54/scA/s54.002/c">
<num value="c">(c)</num>
<content>The lien does not attach to the goods of a merchant, trader, or mechanic if the tenant sells and delivers the goods in good faith in the regular course of business.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c54/scA/s54.002/d">
<num value="d">(d)</num>
<content>A law exempting property from forced sale does not apply to a lien under this subchapter on agricultural products, animals, or tools.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3557, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c54/scA/s54.003">
<num value="54.003">Sec. 54.003.</num>
<heading>EXCEPTIONS</heading>
<chapeau>The lien does not arise if:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c54/scA/s54.003/1">
<num value="1">(1)</num>
<content>a tenant provides everything necessary to cultivate the leased premises and the landlord charges rent of more than one-third of the value of the grain and one-fourth of the value of the cotton grown on the premises; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c54/scA/s54.003/2">
<num value="2">(2)</num>
<content>a landlord provides everything except the labor and directly or indirectly charges rent of more than one-half of the value of the grain and cotton grown on the premises.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3558, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c54/scA/s54.004">
<num value="54.004">Sec. 54.004.</num>
<heading>DURATION OF LIEN</heading>
<content>The lien exists while the property to which it is attached remains on the leased premises and until one month after the day that the property is removed from the premises. If agricultural products to which the lien is attached are placed in a public or bonded warehouse regulated by state law before the 31st day after the day that they are removed from the leased premises, the lien exists while they remain in the warehouse.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3558, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c54/scA/s54.005">
<num value="54.005">Sec. 54.005.</num>
<heading>REMOVAL OF PROPERTY</heading>
<subsection identifier="/us/tx/pr/t5/c54/scA/s54.005/a">
<num value="a">(a)</num>
<content>If an advance or rent is unpaid, a tenant may not without the landlord's consent remove or permit the removal of agricultural products or other property to which the lien is attached from the leased premises.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c54/scA/s54.005/b">
<num value="b">(b)</num>
<content>If agricultural products subject to the lien are removed with the landlord's consent from the leased premises for preparation for market, the lien continues to exist as if the products had not been removed.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3558, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c54/scA/s54.006">
<num value="54.006">Sec. 54.006.</num>
<heading>DISTRESS WARRANT</heading>
<subsection identifier="/us/tx/pr/t5/c54/scA/s54.006/a">
<num value="a">(a)</num>
<chapeau>The person to whom rent or an advance is payable under the lease or the person's agent, attorney, assign, or other legal representative may apply to an appropriate justice of the peace for a distress warrant if the tenant:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c54/scA/s54.006/1">
<num value="1">(1)</num>
<content>owes any rent or an advance;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c54/scA/s54.006/2">
<num value="2">(2)</num>
<content>is about to abandon the premises; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c54/scA/s54.006/3">
<num value="3">(3)</num>
<content>is about to remove the tenant's property from the premises.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c54/scA/s54.006/b">
<num value="b">(b)</num>
<chapeau>The application for a warrant must be filed with a justice of the peace:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c54/scA/s54.006/1">
<num value="1">(1)</num>
<content>in the precinct in which the leasehold is located or in which the property subject to the landlord's lien is located; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c54/scA/s54.006/2">
<num value="2">(2)</num>
<content>who has jurisdiction of the cause of action.</content>
</paragraph>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3558, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1993, 73rd Leg., ch. 48, Sec. 9, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c54/scA/s54.007">
<num value="54.007">Sec. 54.007.</num>
<heading>JUDGMENT ON REPLEVIN BOND</heading>
<content>If a final judgment is rendered against a defendant who has replevied property seized under a distress warrant, the sureties on the defendant's replevy bond are also liable under the judgment, according to the terms of the bond.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3559, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t5/c54/scB">
<num value="B">SUBCHAPTER B.</num>
<heading>BUILDING LANDLORD'S LIEN</heading>
<section identifier="/us/tx/pr/t5/c54/scB/s54.021">
<num value="54.021">Sec. 54.021.</num>
<heading>LIEN</heading>
<content>A person who leases or rents all or part of a building for nonresidential use has a preference lien on the property of the tenant or subtenant in the building for rent that is due and for rent that is to become due during the current 12-month period succeeding the date of the beginning of the rental agreement or an anniversary of that date.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3559, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1985, 69th Leg., ch. 200, Sec. 2, eff. Aug. 26, 1985.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c54/scB/s54.022">
<num value="54.022">Sec. 54.022.</num>
<heading>COMMERCIAL BUILDING</heading>
<subsection identifier="/us/tx/pr/t5/c54/scB/s54.022/a">
<num value="a">(a)</num>
<content>The lien is unenforceable for rent on a commercial building that is more than six months past due unless the landlord files a lien statement with the county clerk of the county in which the building is located.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c54/scB/s54.022/b">
<num value="b">(b)</num>
<chapeau>The lien statement must be verified by the landlord or the landlord's agent or attorney and must contain:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c54/scB/s54.022/1">
<num value="1">(1)</num>
<content>an account, itemized by month, of the rent for which the lien is claimed;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c54/scB/s54.022/2">
<num value="2">(2)</num>
<content>the name and address of the tenant or subtenant, if any;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c54/scB/s54.022/3">
<num value="3">(3)</num>
<content>a description of the leased premises; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c54/scB/s54.022/4">
<num value="4">(4)</num>
<content>the beginning and termination dates of the lease.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c54/scB/s54.022/c">
<num value="c">(c)</num>
<content>Each county clerk shall index alphabetically and record the rental lien statements filed in the clerk's office.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3559, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c54/scB/s54.023">
<num value="54.023">Sec. 54.023.</num>
<heading>EXEMPTIONS</heading>
<content>This subchapter does not affect a statute exempting property from forced sale.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3560, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c54/scB/s54.024">
<num value="54.024">Sec. 54.024.</num>
<heading>DURATION OF LIEN</heading>
<content>The lien exists while the tenant occupies the building and until one month after the day that the tenant abandons the building.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3560, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c54/scB/s54.025">
<num value="54.025">Sec. 54.025.</num>
<heading>DISTRESS WARRANT</heading>
<chapeau>The person to whom rent is payable under a building lease or the person's agent, attorney, assign, or other legal representative may apply to the justice of the peace in the precinct in which the building is located for a distress warrant if the tenant:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c54/scB/s54.025/1">
<num value="1">(1)</num>
<content>owes rent;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c54/scB/s54.025/2">
<num value="2">(2)</num>
<content>is about to abandon the building; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c54/scB/s54.025/3">
<num value="3">(3)</num>
<content>is about to remove the tenant's property from the building.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3560, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1993, 73rd Leg., ch. 48, Sec. 10, eff. Sept. 1, 1993.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t5/c54/scC">
<num value="C">SUBCHAPTER C.</num>
<heading>RESIDENTIAL LANDLORD'S LIEN</heading>
<section identifier="/us/tx/pr/t5/c54/scC/s54.041">
<num value="54.041">Sec. 54.041.</num>
<heading>LIEN</heading>
<content>A landlord of a single or multifamily residence has a lien for unpaid rent that is due. The lien attaches to nonexempt property that is in the residence or that the tenant has stored in a storage room.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3560, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c54/scC/s54.042">
<num value="54.042">Sec. 54.042.</num>
<heading>EXEMPTIONS</heading>
<chapeau>A lien under this subchapter does not attach to:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c54/scC/s54.042/1">
<num value="1">(1)</num>
<content>wearing apparel;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c54/scC/s54.042/2">
<num value="2">(2)</num>
<content>tools, apparatus, and books of a trade or profession;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c54/scC/s54.042/3">
<num value="3">(3)</num>
<content>schoolbooks;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c54/scC/s54.042/4">
<num value="4">(4)</num>
<content>a family library;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c54/scC/s54.042/5">
<num value="5">(5)</num>
<content>family portraits and pictures;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c54/scC/s54.042/6">
<num value="6">(6)</num>
<content>one couch, two living room chairs, and a dining table and chairs;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c54/scC/s54.042/7">
<num value="7">(7)</num>
<content>beds and bedding;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c54/scC/s54.042/8">
<num value="8">(8)</num>
<content>kitchen furniture and utensils;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c54/scC/s54.042/9">
<num value="9">(9)</num>
<content>food and foodstuffs;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c54/scC/s54.042/10">
<num value="10">(10)</num>
<content>medicine and medical supplies;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c54/scC/s54.042/11">
<num value="11">(11)</num>
<content>one automobile and one truck;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c54/scC/s54.042/12">
<num value="12">(12)</num>
<content>agricultural implements;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c54/scC/s54.042/13">
<num value="13">(13)</num>
<content>children's toys not commonly used by adults;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c54/scC/s54.042/14">
<num value="14">(14)</num>
<content>goods that the landlord or the landlord's agent knows are owned by a person other than the tenant or an occupant of the residence; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c54/scC/s54.042/15">
<num value="15">(15)</num>
<content>goods that the landlord or the landlord's agent knows are subject to a recorded chattel mortgage or financing agreement.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3560, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1985, 69th Leg., ch. 305, Sec. 1, eff. Aug. 26, 1985.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c54/scC/s54.043">
<num value="54.043">Sec. 54.043.</num>
<heading>ENFORCEABILITY OF CONTRACTUAL PROVISIONS</heading>
<subsection identifier="/us/tx/pr/t5/c54/scC/s54.043/a">
<num value="a">(a)</num>
<content>A contractual landlord's lien is not enforceable unless it is underlined or printed in conspicuous bold print in the lease agreement.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c54/scC/s54.043/b">
<num value="b">(b)</num>
<content>A provision of a lease that purports to waive or diminish a right, liability, or exemption of this subchapter is void to the extent limited by this subchapter.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3561, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c54/scC/s54.044">
<num value="54.044">Sec. 54.044.</num>
<heading>SEIZURE OF PROPERTY</heading>
<subsection identifier="/us/tx/pr/t5/c54/scC/s54.044/a">
<num value="a">(a)</num>
<content>The landlord or the landlord's agent may not seize exempt property and may seize nonexempt property only if it is authorized by a written lease and can be accomplished without a breach of the peace.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c54/scC/s54.044/b">
<num value="b">(b)</num>
<content>Immediately after seizing property under Subsection (a) of this section, the landlord or the landlord's agent shall leave written notice of entry and an itemized list of the items removed. The notice and list shall be left in a conspicuous place within the dwelling. The notice must state the amount of delinquent rent and the name, address, and telephone number of the person the tenant may contact regarding the amount owed. The notice must also state that the property will be promptly returned on full payment of the delinquent rent.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c54/scC/s54.044/c">
<num value="c">(c)</num>
<content>Unless authorized in a written lease, the landlord is not entitled to collect a charge for packing, removing, or storing property seized under this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c54/scC/s54.044/d">
<num value="d">(d)</num>
<content>If the tenant has abandoned the premises, the landlord or the landlord's agent may remove its contents.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3561, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1985, 69th Leg., ch. 305, Sec. 1, eff. Aug. 26, 1985.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c54/scC/s54.045">
<num value="54.045">Sec. 54.045.</num>
<heading>SALE OF PROPERTY</heading>
<subsection identifier="/us/tx/pr/t5/c54/scC/s54.045/a">
<num value="a">(a)</num>
<content>Property seized under Section 54.044 may not be sold or otherwise disposed of unless the sale or disposition is authorized in a written lease.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c54/scC/s54.045/b">
<num value="b">(b)</num>
<chapeau>Before selling seized property, the landlord or the landlord's agent must give notice to the tenant not later than the 30th day before the date of the sale. The notice must be sent to the tenant by both first class mail and certified mail, return receipt requested, at the tenant's last known address. The notice must contain:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c54/scC/s54.045/1">
<num value="1">(1)</num>
<content>the date, time, and place of the sale;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c54/scC/s54.045/2">
<num value="2">(2)</num>
<content>an itemized account of the amount owed by the tenant to the landlord; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c54/scC/s54.045/3">
<num value="3">(3)</num>
<content>the name, address, and telephone number of the person the tenant may contact regarding the sale, the amount owed, and the right of the tenant to redeem the property under Subsection (e) of this section.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c54/scC/s54.045/c">
<num value="c">(c)</num>
<content>A sale under this section is subject to a recorded chattel mortgage or financing statement. The property shall be sold to the highest cash bidder. Proceeds from the sale shall be applied first to delinquent rents and, if authorized by the written lease, reasonable packing, moving, storage, and sale costs.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c54/scC/s54.045/d">
<num value="d">(d)</num>
<content>Any sale proceeds remaining after payment of the amounts authorized in Subsection (c) of this section shall be mailed to the tenant at the tenant's last known address not later than the 30th day after the date of the sale. The landlord shall provide the tenant with an accounting of all proceeds of the sale not later than the 30th day after the date on which the tenant makes a written request for the accounting.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c54/scC/s54.045/e">
<num value="e">(e)</num>
<content>The tenant may redeem the property at any time before the property is sold by paying to the landlord or the landlord's agent all delinquent rents and, if authorized in the written lease, all reasonable packing, moving, storage, and sale costs.</content>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 305, Sec. 1, eff. Aug. 26, 1985.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c54/scC/s54.046">
<num value="54.046">Sec. 54.046.</num>
<heading>VIOLATION BY LANDLORD</heading>
<chapeau>If a landlord or the landlord's agent wilfully violates this subchapter, the tenant is entitled to:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c54/scC/s54.046/1">
<num value="1">(1)</num>
<content>actual damages, return of any property seized that has not been sold, return of the proceeds of any sale of seized property, and the sum of one month's rent and $1,000, less any amount for which the tenant is liable; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c54/scC/s54.046/2">
<num value="2">(2)</num>
<content>reasonable attorney's fees.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 356, ch. 5761, Sec. 1, eff. Jan. 1, 1984. Renumbered and amended by Acts 1985, 69th Leg., ch. 305, Sec. 1, eff. Aug. 26, 1985.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1198 (S.B. 1367), Sec. 2, eff. January 1, 2016.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c54/scC/s54.047">
<num value="54.047">Sec. 54.047.</num>
<heading>OTHER RIGHTS NOT AFFECTED</heading>
<content>This subchapter does not affect or diminish any other rights or obligations arising under common law or any statute.</content>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 305, Sec. 1, eff. Aug. 26, 1985.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c54/scC/s54.048">
<num value="54.048">Sec. 54.048.</num>
<heading>TENANT MAY REPLEVY</heading>
<content>At any time before judgment in a suit for unpaid rent, the tenant may replevy any of the property that has been seized, if the property has not been claimed or sold, by posting a bond in an amount approved by the court, payable to the landlord, and conditioned that if the landlord prevails in the suit, the amount of the judgment rendered and any costs assessed against the tenant shall be first satisfied, to the extent possible, out of the bond.</content>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 266, Sec. 1, eff. Sept. 1, 1987.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t5/c54/scZ">
<num value="Z">SUBCHAPTER Z.</num>
<heading>MISCELLANEOUS PROVISIONS</heading>
<section identifier="/us/tx/pr/t5/c54/scZ/s54.901">
<num value="54.901">Sec. 54.901.</num>
<heading>DISPOSAL OF CERTAIN MOTOR VEHICLES SUBJECT TO LIEN</heading>
<subsection identifier="/us/tx/pr/t5/c54/scZ/s54.901/a">
<num value="a">(a)</num>
<chapeau>Notwithstanding any other law, a person authorized to dispose of property for which a lien under this chapter is attached may dispose of the property in accordance with Subchapter D, Chapter 683, Transportation Code, if:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c54/scZ/s54.901/1">
<num value="1">(1)</num>
<content>the property is a motor vehicle; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c54/scZ/s54.901/2">
<num value="2">(2)</num>
<chapeau>the person determines that:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c54/scZ/s54.901/A">
<num value="A">(A)</num>
<content>the vehicle's only residual value is as a source of parts or scrap metal; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c54/scZ/s54.901/B">
<num value="B">(B)</num>
<content>it is not economical to dispose of the vehicle at a public sale.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c54/scZ/s54.901/b">
<num value="b">(b)</num>
<content>If a person disposes of the property under Subsection (a), the person shall apply the fair market value of the motor vehicle to the charges due to the person.</content>
</subsection>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 1061 (H.B. 3131), Sec. 3, eff. September 1, 2017.</sourceCredit>
</section>
</subchapter>
</chapter>
<chapter identifier="/us/tx/pr/t5/c55">
<num value="55">CHAPTER 55.</num>
<heading>HOSPITAL AND EMERGENCY MEDICAL SERVICES LIENS</heading>
<section identifier="/us/tx/pr/t5/c55/s55.001">
<num value="55.001">Sec. 55.001.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c55/s55.001/1">
<num value="1">(1)</num>
<content>"Emergency medical services" has the meaning assigned by Section 773.003, Health and Safety Code.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c55/s55.001/2">
<num value="2">(2)</num>
<content>"Emergency medical services provider" has the meaning assigned by Section 773.003, Health and Safety Code.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c55/s55.001/3">
<num value="3">(3)</num>
<content>"Hospital" means a person or institution maintaining a facility that provides hospital services in this state.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c55/s55.001/4">
<num value="4">(4)</num>
<content>"Person" does not include a county, common, or independent school district.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3562, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 2003, 78th Leg., ch. 337, Sec. 1, eff. Sept. 1, 2003.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c55/s55.0015">
<num value="55.0015">Sec. 55.0015.</num>
<heading>ADMISSION TO HOSPITAL</heading>
<content>For purposes of this chapter, an injured individual is considered admitted to a hospital if the individual is allowed access to any department of the hospital for the provision of any treatment, care, or service to the individual.</content>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 862 (H.B. 2929), Sec. 1, eff. June 10, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c55/s55.002">
<num value="55.002">Sec. 55.002.</num>
<heading>LIEN</heading>
<subsection identifier="/us/tx/pr/t5/c55/s55.002/a">
<num value="a">(a)</num>
<content>A hospital has a lien on a cause of action or claim of an individual who receives hospital services for injuries caused by an accident that is attributed to the negligence of another person. For the lien to attach, the individual must be admitted to a hospital not later than 72 hours after the accident.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c55/s55.002/b">
<num value="b">(b)</num>
<content>The lien extends to both the admitting hospital and a hospital to which the individual is transferred for treatment of the same injury.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c55/s55.002/c">
<num value="c">(c)</num>
<content>An emergency medical services provider has a lien on a cause of action or claim of an individual who receives emergency medical services in a county with a population of 800,000 or less for injuries caused by an accident that is attributed to the negligence of another person. For the lien to attach, the individual must receive the emergency medical services not later than 72 hours after the accident.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3562, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 2003, 78th Leg., ch. 337, Sec. 1, eff. Sept. 1, 2003.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 576 (H.B. 3337), Sec. 1, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c55/s55.003">
<num value="55.003">Sec. 55.003.</num>
<heading>PROPERTY TO WHICH LIEN ATTACHES</heading>
<subsection identifier="/us/tx/pr/t5/c55/s55.003/a">
<num value="a">(a)</num>
<chapeau>A lien under this chapter attaches to:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c55/s55.003/1">
<num value="1">(1)</num>
<content>a cause of action for damages arising from an injury for which the injured individual is admitted to the hospital or receives emergency medical services;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c55/s55.003/2">
<num value="2">(2)</num>
<content>a judgment of a court in this state or the decision of a public agency in a proceeding brought by the injured individual or by another person entitled to bring the suit in case of the death of the individual to recover damages arising from an injury for which the injured individual is admitted to the hospital or receives emergency medical services; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c55/s55.003/3">
<num value="3">(3)</num>
<content>the proceeds of a settlement of a cause of action or a claim by the injured individual or another person entitled to make the claim, arising from an injury for which the injured individual is admitted to the hospital or receives emergency medical services.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c55/s55.003/b">
<num value="b">(b)</num>
<chapeau>The lien does not attach to:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c55/s55.003/1">
<num value="1">(1)</num>
<content>a claim under the workers' compensation law of this state, the Federal Employees Liability Act, or the Federal Longshore and Harbor Workers' Compensation Act; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c55/s55.003/2">
<num value="2">(2)</num>
<content>the proceeds of an insurance policy in favor of the injured individual or the injured individual's beneficiary or legal representative, except public liability insurance carried by the insured that protects the insured against loss caused by an accident or collision.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c55/s55.003/c">
<num value="c">(c)</num>
<content>A hospital lien described by Section 55.002(a) does not attach to a claim against the owner or operator of a railroad company that maintains or whose employees maintain a hospital in which the injured individual is receiving hospital services.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3562, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 2003, 78th Leg., ch. 337, Sec. 1, eff. Sept. 1, 2003.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c55/s55.004">
<num value="55.004">Sec. 55.004.</num>
<heading>AMOUNT OF LIEN</heading>
<subsection identifier="/us/tx/pr/t5/c55/s55.004/a">
<num value="a">(a)</num>
<chapeau>In this section, "emergency hospital care" means health care services provided in a hospital to evaluate, stabilize, and treat a serious medical problem of recent onset or severity, including severe pain that would lead a prudent layperson possessing an average knowledge of medicine and health to believe that the condition, illness, or injury is of such a nature that failure to obtain immediate medical care would in all reasonable probability:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c55/s55.004/1">
<num value="1">(1)</num>
<content>seriously jeopardize the patient's health;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c55/s55.004/2">
<num value="2">(2)</num>
<content>seriously impair one or more bodily functions;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c55/s55.004/3">
<num value="3">(3)</num>
<content>seriously harm an organ or other part of the body;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c55/s55.004/4">
<num value="4">(4)</num>
<content>cause serious disfigurement; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c55/s55.004/5">
<num value="5">(5)</num>
<content>in the case of a pregnant woman, seriously jeopardize the health of the fetus.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c55/s55.004/b">
<num value="b">(b)</num>
<chapeau>A hospital lien described by Section 55.002(a) is for the lesser of:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c55/s55.004/1">
<num value="1">(1)</num>
<content>the amount of the hospital's charges for services provided to the injured individual during the first 100 days of the injured individual's hospitalization;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c55/s55.004/2">
<num value="2">(2)</num>
<content>50 percent of all amounts recovered by the injured individual through a cause of action, judgment, or settlement described by Section 55.003(a); or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c55/s55.004/3">
<num value="3">(3)</num>
<content>if the trier of fact specifies the amount awarded for hospital charges for services provided to the injured individual, the amount awarded by the trier of fact for the services provided to the injured individual by the hospital less the pro rata share of reasonable attorney's fees and expenses the injured individual incurred in pursuing the claim.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c55/s55.004/c">
<num value="c">(c)</num>
<content>A hospital lien described by Section 55.002(a) may also include the amount of a physician's reasonable and necessary charges for emergency hospital care services provided to the injured individual during the first seven days of the injured individual's hospitalization. At the request of the physician, the hospital may act on the physician's behalf in securing and discharging the lien.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c55/s55.004/d">
<num value="d">(d)</num>
<chapeau>A hospital lien described by Section 55.002(a) does not cover:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c55/s55.004/1">
<num value="1">(1)</num>
<content>charges for other services that exceed a reasonable and regular rate for the services;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c55/s55.004/2">
<num value="2">(2)</num>
<content>charges by the physician related to any services provided under Subsection (c) for which the physician has accepted insurance benefits or payment under a private medical indemnity plan or program, regardless of whether the benefits or payment equals the full amount of the physician's charges for those services;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c55/s55.004/3">
<num value="3">(3)</num>
<content>charges by the physician for services provided under Subsection (c) if the injured individual has coverage under a private medical indemnity plan or program from which the physician is entitled to recover payment for the physician's services under an assignment of benefits or similar rights;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c55/s55.004/4">
<num value="4">(4)</num>
<content>charges by the physician related to any services provided under Subsection (c) if the physician is a member of the legislature; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c55/s55.004/5">
<num value="5">(5)</num>
<content>charges for which recovery is barred under Section 146.003, Civil Practice and Remedies Code.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c55/s55.004/e">
<num value="e">(e)</num>
<content>A hospital lien described by Section 55.002(a) is not affected by a hospital's use of a method of classifying patients according to their ability to pay that is solely intended to obtain a lien for services provided to an indigent injured individual.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c55/s55.004/f">
<num value="f">(f)</num>
<content>An emergency medical services lien described by Section 55.002(c) is for the amount charged by the emergency medical services provider, not to exceed $1,000, for emergency medical services provided to the injured individual during the 72 hours following the accident that caused the individual's injuries.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c55/s55.004/g">
<num value="g">(g)</num>
<chapeau>An emergency medical services lien described by Section 55.002(c) does not cover:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c55/s55.004/1">
<num value="1">(1)</num>
<content>charges for services that exceed a reasonable and regular rate for the services;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c55/s55.004/2">
<num value="2">(2)</num>
<content>charges by the emergency medical services provider related to any services for which the emergency medical services provider has accepted insurance benefits or payment under a private medical indemnity plan or program, regardless of whether the benefits or payments equal the full amount of the charges for those services; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c55/s55.004/3">
<num value="3">(3)</num>
<content>charges by the emergency medical services provider for services provided if the injured individual has coverage under a private medical indemnity plan or program from which the provider is entitled to recover payment for the provider's services under an assignment of benefits or similar right.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c55/s55.004/h">
<num value="h">(h)</num>
<content>If the physician is employed in that capacity by an institution of higher education, as defined by Section 61.003, Education Code, and the lien does not include the amount of the physician's reasonable and necessary charges described by Subsection (c), the physician has a lien on the cause of action in the same manner as a hospital under this chapter. The lien is subject to provisions of this chapter applicable to a hospital lien, and the physician or the physician's employing institution may secure and enforce the lien in the manner provided by this chapter.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3563, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 2001, 77th Leg., ch. 930, Sec. 1, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 337, Sec. 1, eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 1266, Sec. 1.16, eff. June 20, 2003.
Amended by:
Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 23.001(79), eff. September 1, 2005.
Acts 2019, 86th Leg., R.S., Ch. 862 (H.B. 2929), Sec. 2, eff. June 10, 2019.
Acts 2021, 87th Leg., R.S., Ch. 812 (H.B. 2064), Sec. 1, eff. June 16, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c55/s55.005">
<num value="55.005">Sec. 55.005.</num>
<heading>SECURING LIEN</heading>
<subsection identifier="/us/tx/pr/t5/c55/s55.005/a">
<num value="a">(a)</num>
<chapeau>To secure the lien, a hospital or emergency medical services provider must:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c55/s55.005/1">
<num value="1">(1)</num>
<content>provide notice to the injured individual in accordance with Subsection (d); and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c55/s55.005/2">
<num value="2">(2)</num>
<content>file written notice of the lien with the county clerk of the county in which the services were provided before money is paid to an entitled person because of the injury.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c55/s55.005/b">
<num value="b">(b)</num>
<chapeau>The notice must contain:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c55/s55.005/1">
<num value="1">(1)</num>
<content>the injured individual's name and address;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c55/s55.005/2">
<num value="2">(2)</num>
<content>the date of the accident;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c55/s55.005/3">
<num value="3">(3)</num>
<content>the name and location of the hospital or emergency medical services provider claiming the lien; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c55/s55.005/4">
<num value="4">(4)</num>
<content>the name of the person alleged to be liable for damages arising from the injury, if known.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c55/s55.005/c">
<num value="c">(c)</num>
<content>The county clerk shall record the name of the injured individual, the date of the accident, and the name and address of the hospital or emergency medical services provider and shall index the record in the name of the injured individual.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c55/s55.005/d">
<num value="d">(d)</num>
<chapeau>Except as provided by Subsection (e), not later than the fifth business day after the date a hospital or emergency medical services provider receives notice from the county clerk that a notice of lien filed under Subsection (a)(2) has been recorded in the county records, the hospital or emergency medical services provider must send a written notice to the injured individual or the injured individual's legal representative, by regular mail, to the individual's last known address, informing the individual that:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c55/s55.005/1">
<num value="1">(1)</num>
<content>the lien will attach to any cause of action or claim the individual may have against another person for the individual's injuries; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c55/s55.005/2">
<num value="2">(2)</num>
<content>the lien does not attach to real property owned by the individual.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c55/s55.005/e">
<num value="e">(e)</num>
<chapeau>An emergency medical services provider is not required to provide notice by mail if the emergency medical services provider provides the notice required by Subsection (d) to the injured individual or the injured individual's representative at the time emergency medical services are provided and if:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c55/s55.005/1">
<num value="1">(1)</num>
<content>the required notice is included on the emergency medical services authorization form in a paper or electronic version in a separate paragraph that is bolded and in at least 14-point type; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c55/s55.005/2">
<num value="2">(2)</num>
<content>except as provided by Subsection (f), the notice is signed by the injured individual or the injured individual's representative.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c55/s55.005/f">
<num value="f">(f)</num>
<content>For the purposes of Subsection (e), if consent for emergency care of an individual is not required under Section 773.008, Health and Safety Code, notice provided on an emergency medical services authorization form to the injured individual is not required to be signed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c55/s55.005/g">
<num value="g">(g)</num>
<content>The failure of an individual to receive a notice mailed in accordance with Subsection (d) does not affect the validity of a lien under this chapter.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3563, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1995, 74th Leg., ch. 1031, Sec. 1, eff. Aug. 28, 1995; Acts 2003, 78th Leg., ch. 337, Sec. 1, eff. Sept. 1, 2003.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 169 (S.B. 328), Sec. 1, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c55/s55.006">
<num value="55.006">Sec. 55.006.</num>
<heading>DISCHARGE OF LIEN</heading>
<subsection identifier="/us/tx/pr/t5/c55/s55.006/a">
<num value="a">(a)</num>
<content>To discharge a lien under this chapter, the authorities of the hospital or emergency medical services provider claiming the lien or the person in charge of the finances of the hospital or emergency medical services provider must execute and file with the county clerk of the county in which the lien notice was filed a certificate stating that the debt covered by the lien has been paid or released and authorizing the clerk to discharge the lien.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c55/s55.006/b">
<num value="b">(b)</num>
<content>The county clerk shall record a memorandum of the certificate and the date it was filed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c55/s55.006/c">
<num value="c">(c)</num>
<content>The filing of the certificate and recording of the memorandum discharge the lien.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3564, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 2003, 78th Leg., ch. 337, Sec. 1, eff. Sept. 1, 2003.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c55/s55.007">
<num value="55.007">Sec. 55.007.</num>
<heading>VALIDITY OF RELEASE</heading>
<subsection identifier="/us/tx/pr/t5/c55/s55.007/a">
<num value="a">(a)</num>
<chapeau>A release of a cause of action or judgment to which a lien under this chapter may attach is not valid unless:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c55/s55.007/1">
<num value="1">(1)</num>
<content>the charges of the hospital or emergency medical services provider claiming the lien were paid in full before the execution and delivery of the release;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c55/s55.007/2">
<num value="2">(2)</num>
<content>the charges of the hospital or emergency medical services provider claiming the lien were paid before the execution and delivery of the release to the extent of any full and true consideration paid to the injured individual by or on behalf of the other parties to the release; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c55/s55.007/3">
<num value="3">(3)</num>
<content>the hospital or emergency medical services provider claiming the lien is a party to the release.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c55/s55.007/b">
<num value="b">(b)</num>
<content>A judgment to which a lien under this chapter has attached remains in effect until the charges of the hospital or emergency medical services provider claiming the lien are paid in full or to the extent set out in the judgment.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3564, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 2003, 78th Leg., ch. 337, Sec. 1, eff. Sept. 1, 2003.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c55/s55.008">
<num value="55.008">Sec. 55.008.</num>
<heading>RECORDS</heading>
<subsection identifier="/us/tx/pr/t5/c55/s55.008/a">
<num value="a">(a)</num>
<content>On request by an attorney for a party by, for, or against whom a claim is asserted for damages arising from an injury, a hospital or emergency medical services provider shall as promptly as possible make available for the attorney's examination its records concerning the services provided to the injured individual.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c55/s55.008/b">
<num value="b">(b)</num>
<content>The hospital or emergency medical services provider may issue reasonable rules for granting access to its records under this section, but it may not deny access because a record is incomplete.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c55/s55.008/c">
<num value="c">(c)</num>
<content>The records are admissible, subject to applicable rules of evidence, in a civil suit arising from the injury.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3564, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 2003, 78th Leg., ch. 337, Sec. 1, eff. Sept. 1, 2003.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t5/c56">
<num value="56">CHAPTER 56.</num>
<heading>LIENS AGAINST MINERAL PROPERTY</heading>
<subchapter identifier="/us/tx/pr/t5/c56/scA">
<num value="A">SUBCHAPTER A.</num>
<heading>GENERAL PROVISIONS</heading>
<section identifier="/us/tx/pr/t5/c56/scA/s56.001">
<num value="56.001">Sec. 56.001.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c56/scA/s56.001/1">
<num value="1">(1)</num>
<content>"Mineral activities" means digging, drilling, torpedoing, operating, completing, maintaining, or repairing an oil, gas, or water well, an oil or gas pipeline, or a mine or quarry.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c56/scA/s56.001/2">
<num value="2">(2)</num>
<content>"Mineral contractor" means a person who performs labor or furnishes or hauls material, machinery, or supplies used in mineral activities under an express or implied contract with a mineral property owner or with a trustee, agent, or receiver of a mineral property owner.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c56/scA/s56.001/3">
<num value="3">(3)</num>
<content>"Mineral property owner" means an owner of land, an oil, gas, or other mineral leasehold, an oil or gas pipeline, or an oil or gas pipeline right-of-way.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c56/scA/s56.001/4">
<num value="4">(4)</num>
<chapeau>"Mineral subcontractor" means a person who:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c56/scA/s56.001/A">
<num value="A">(A)</num>
<content>furnishes or hauls material, machinery, or supplies used in mineral activities under contract with a mineral contractor or with a subcontractor;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c56/scA/s56.001/B">
<num value="B">(B)</num>
<content>performs labor used in mineral activities under contract with a mineral contractor; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c56/scA/s56.001/C">
<num value="C">(C)</num>
<content>performs labor used in mineral activities as an artisan or day laborer employed by a subcontractor.</content>
</subparagraph>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3565, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c56/scA/s56.002">
<num value="56.002">Sec. 56.002.</num>
<heading>LIEN</heading>
<content>A mineral contractor or subcontractor has a lien to secure payment for labor or services related to the mineral activities.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3566, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c56/scA/s56.003">
<num value="56.003">Sec. 56.003.</num>
<heading>PROPERTY SUBJECT TO LIEN</heading>
<subsection identifier="/us/tx/pr/t5/c56/scA/s56.003/a">
<num value="a">(a)</num>
<chapeau>The following property is subject to the lien:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c56/scA/s56.003/1">
<num value="1">(1)</num>
<content>the material, machinery, and supplies furnished or hauled by the lien claimant;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c56/scA/s56.003/2">
<num value="2">(2)</num>
<content>the land, leasehold, oil or gas well, water well, oil or gas pipeline and its right-of-way, and lease for oil and gas purposes for which the labor was performed or material, machinery, or supplies were furnished or hauled, and the buildings and appurtenances on this property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c56/scA/s56.003/3">
<num value="3">(3)</num>
<content>other material, machinery, and supplies used for mineral activities and owned by the owner of the property listed in Subdivision (2); and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c56/scA/s56.003/4">
<num value="4">(4)</num>
<content>other wells and pipelines used in operations related to oil, gas, and minerals and located on property listed in Subdivision (2).</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c56/scA/s56.003/b">
<num value="b">(b)</num>
<content>A lien created by performing labor or furnishing or hauling material, machinery, or supplies for a leaseholder does not attach to the fee title to the property.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3566, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c56/scA/s56.004">
<num value="56.004">Sec. 56.004.</num>
<heading>PRIORITY</heading>
<subsection identifier="/us/tx/pr/t5/c56/scA/s56.004/a">
<num value="a">(a)</num>
<content>The lien does not affect an encumbrance that attached to land or a leasehold before the lien's inception.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c56/scA/s56.004/b">
<num value="b">(b)</num>
<content>The lien on material, machinery, supplies, or a specific improvement takes priority over an earlier encumbrance on the land or leasehold on which the material, machinery, supplies, or improvement is placed or located.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3567, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c56/scA/s56.005">
<num value="56.005">Sec. 56.005.</num>
<heading>ACCRUAL OF INDEBTEDNESS</heading>
<subsection identifier="/us/tx/pr/t5/c56/scA/s56.005/a">
<num value="a">(a)</num>
<content>The indebtedness for labor performed by the day or week accrues at the end of each week during which the labor is performed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c56/scA/s56.005/b">
<num value="b">(b)</num>
<content>The indebtedness for material or services accrues on the date the material or services were last furnished. All material or services that a person furnishes for the same land, leasehold interest, oil or gas pipeline, or oil or gas pipeline right-of-way are considered to be furnished under a single contract unless more than six months elapse between the dates the material or services are furnished.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3567, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c56/scA/s56.006">
<num value="56.006">Sec. 56.006.</num>
<heading>LIABILITY OF OWNER</heading>
<content>An owner of land or a leasehold may not be subjected to liability under this chapter greater than the amount agreed to be paid in the contract for furnishing material or performing labor.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3567, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t5/c56/scB">
<num value="B">SUBCHAPTER B.</num>
<heading>SECURING LIEN</heading>
<section identifier="/us/tx/pr/t5/c56/scB/s56.021">
<num value="56.021">Sec. 56.021.</num>
<heading>SECURING LIEN</heading>
<subsection identifier="/us/tx/pr/t5/c56/scB/s56.021/a">
<num value="a">(a)</num>
<content>Not later than six months after the day the indebtedness accrues, a person claiming the lien must file an affidavit with the county clerk of the county in which the property is located.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c56/scB/s56.021/b">
<num value="b">(b)</num>
<content>Not later than the 10th day before the day the affidavit is filed, a mineral subcontractor claiming the lien must serve on the property owner written notice that the lien is claimed.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3567, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c56/scB/s56.022">
<num value="56.022">Sec. 56.022.</num>
<heading>CONTENTS OF AFFIDAVIT</heading>
<subsection identifier="/us/tx/pr/t5/c56/scB/s56.022/a">
<num value="a">(a)</num>
<chapeau>A lien claimant's affidavit must include:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c56/scB/s56.022/1">
<num value="1">(1)</num>
<content>the name of the mineral property owner involved, if known;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c56/scB/s56.022/2">
<num value="2">(2)</num>
<content>the name and mailing address of the claimant;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c56/scB/s56.022/3">
<num value="3">(3)</num>
<content>the dates of performance or furnishing;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c56/scB/s56.022/4">
<num value="4">(4)</num>
<content>a description of the land, leasehold interest, pipeline, or pipeline right-of-way involved; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c56/scB/s56.022/5">
<num value="5">(5)</num>
<content>an itemized list of amounts claimed.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c56/scB/s56.022/b">
<num value="b">(b)</num>
<chapeau>A mineral subcontractor's affidavit must in addition include:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c56/scB/s56.022/1">
<num value="1">(1)</num>
<content>the name of the person for whom labor was performed or material was furnished or hauled; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c56/scB/s56.022/2">
<num value="2">(2)</num>
<content>a statement that the subcontractor timely served written notice that the lien is claimed on the property owner or the owner's agent, representative, or receiver.</content>
</paragraph>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3568, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c56/scB/s56.023">
<num value="56.023">Sec. 56.023.</num>
<heading>CONTENTS OF MINERAL SUBCONTRACTOR'S NOTICE</heading>
<content>A mineral subcontractor's notice to the property owner must include the amount of the lien, the name of the person indebted to the subcontractor, and a description of the land, leasehold interest, pipeline, or pipeline right-of-way involved.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3568, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c56/scB/s56.024">
<num value="56.024">Sec. 56.024.</num>
<heading>FILING IN NEW COUNTY</heading>
<subsection identifier="/us/tx/pr/t5/c56/scB/s56.024/a">
<num value="a">(a)</num>
<content>Not later than the 90th day after the day that property to which the lien has attached is removed from a county in which the lien affidavit covering the property has been filed, the lienholder may file with the clerk of the county to which the property has been moved an itemized inventory of the property showing the unpaid amount due.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c56/scB/s56.024/b">
<num value="b">(b)</num>
<content>The lien attaches to all property subject to the lien located in a county in which an inventory is filed under this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c56/scB/s56.024/c">
<num value="c">(c)</num>
<content>An inventory filed under this section is notice of the lien's existence.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3568, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t5/c56/scC">
<num value="C">SUBCHAPTER C.</num>
<heading>ENFORCEMENT</heading>
<section identifier="/us/tx/pr/t5/c56/scC/s56.041">
<num value="56.041">Sec. 56.041.</num>
<heading>ENFORCEMENT</heading>
<subsection identifier="/us/tx/pr/t5/c56/scC/s56.041/a">
<num value="a">(a)</num>
<content>A claimant must enforce the lien within the same time and in the same manner as a mechanic's, contractor's, or materialman's lien under Chapter 53.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c56/scC/s56.041/b">
<num value="b">(b)</num>
<content>A holder of a prior encumbrance on land or a leasehold is not a necessary party to a suit to foreclose the lien.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3569, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c56/scC/s56.042">
<num value="56.042">Sec. 56.042.</num>
<heading>SALE OR REMOVAL OF PROPERTY</heading>
<subsection identifier="/us/tx/pr/t5/c56/scC/s56.042/a">
<num value="a">(a)</num>
<content>A mineral property owner, contractor, subcontractor, or purchaser or an agent, trustee, or receiver of one of those persons may not sell property to which the lien has attached or remove it from the land on which it was to be used, unless the lienholder consents in writing.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c56/scC/s56.042/b">
<num value="b">(b)</num>
<content>On a violation of this section, a lienholder is entitled to possession of the property regardless of where it is found, and the lienholder may have the property sold to satisfy the debt on which the lien is based regardless of whether the debt is due.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3569, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c56/scC/s56.043">
<num value="56.043">Sec. 56.043.</num>
<heading>RETENTION OF PAYMENT</heading>
<content>A property owner who is served with a mineral subcontractor's notice may withhold payment to the contractor in the amount claimed until the debt on which the lien is based is settled or determined to be not owed. The owner is not liable to the subcontractor for more than the amount that the owner owes the original contractor when the notice is received.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3569, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c56/scC/s56.044">
<num value="56.044">Sec. 56.044.</num>
<heading>FORFEITURE OF LEASEHOLD</heading>
<chapeau>Forfeiture of a leasehold does not impair a lien on material, machinery, supplies, or an improvement located on the leasehold if:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c56/scC/s56.044/1">
<num value="1">(1)</num>
<content>the lien attached to the property before the leasehold was forfeited;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c56/scC/s56.044/2">
<num value="2">(2)</num>
<content>the property is not permanently attached to the land; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c56/scC/s56.044/3">
<num value="3">(3)</num>
<content>the lienholder pays the owner of the land the damages caused to the land by removal of the property.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3569, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c56/scC/s56.045">
<num value="56.045">Sec. 56.045.</num>
<heading>EQUITABLE OR CONTINGENT INTEREST</heading>
<content>Failure of an equitable interest to become legal title or nonfulfillment of a condition subsequent on which a legal interest is contingent does not impair a lien on material, machinery, supplies, or an improvement located on the land covered by the equitable interest if the lien attached to the material, machinery, supplies, or improvement before the failure.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3570, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
</subchapter>
</chapter>
<chapter identifier="/us/tx/pr/t5/c57">
<num value="57">CHAPTER 57.</num>
<heading>RAILROAD LABORER'S LIEN</heading>
<section identifier="/us/tx/pr/t5/c57/s57.001">
<num value="57.001">Sec. 57.001.</num>
<heading>RAILROAD LABORER'S LIEN</heading>
<content>A mechanic, laborer, or other person who works or uses tools or a team in the construction, operation, or repair of a railroad or railroad equipment has a lien on the railroad and equipment for the amount owed for the labor or the use of the tools or team.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3570, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c57/s57.002">
<num value="57.002">Sec. 57.002.</num>
<heading>PRIORITY</heading>
<content>A lien under this chapter takes priority over all other liens on the same property.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3570, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c57/s57.003">
<num value="57.003">Sec. 57.003.</num>
<heading>DURATION OF LIEN</heading>
<content>A lien under this chapter ceases to exist 12 months after the day that it is created, unless the lien claimant has sued to foreclose the lien.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3570, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c57/s57.004">
<num value="57.004">Sec. 57.004.</num>
<heading>ENFORCEMENT</heading>
<chapeau>A court in a suit to foreclose the lien shall render judgment for the amount due and order to be sold as much of the railroad right-of-way and equipment as is necessary to satisfy the judgment only if:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c57/s57.004/1">
<num value="1">(1)</num>
<content>the work was performed at the instance of the railroad company or the company's agent, contractor, or subcontractor; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c57/s57.004/2">
<num value="2">(2)</num>
<content>the amount claimed is due.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3571, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c57/s57.005">
<num value="57.005">Sec. 57.005.</num>
<heading>VENUE</heading>
<chapeau>A suit to foreclose a lien under this chapter may be brought in a county in which:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c57/s57.005/1">
<num value="1">(1)</num>
<content>the work was performed or any part of the cause of action accrued; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c57/s57.005/2">
<num value="2">(2)</num>
<content>the principal office of the railroad company is located.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3571, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c57/s57.006">
<num value="57.006">Sec. 57.006.</num>
<heading>PARTIES</heading>
<content>Holders of other liens on the same property are not necessary parties to a suit to foreclose a lien under this chapter but may intervene in the suit.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3571, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t5/c58">
<num value="58">CHAPTER 58.</num>
<heading>FARM, FACTORY, AND STORE WORKER'S LIENS</heading>
<section identifier="/us/tx/pr/t5/c58/s58.001">
<num value="58.001">Sec. 58.001.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c58/s58.001/1">
<num value="1">(1)</num>
<content>"Employer" means a person with whom a worker contracts, directly or through an agent, receiver, or trustee of the person, for the performance of labor or a service by the worker. The contract may be oral or in writing.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c58/s58.001/2">
<num value="2">(2)</num>
<content>"Worker" means a clerk, accountant, bookkeeper, waiter, waitress, cook, maid, porter, servant, employee, artisan, craftsman, factory operator, mill operator, mechanic, quarry worker, common laborer, or farmhand.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3571, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c58/s58.002">
<num value="58.002">Sec. 58.002.</num>
<heading>LIEN</heading>
<subsection identifier="/us/tx/pr/t5/c58/s58.002/a">
<num value="a">(a)</num>
<chapeau>A worker has a lien as provided by this chapter if, under the contract with the employer, the worker:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c58/s58.002/1">
<num value="1">(1)</num>
<content>labors or performs a service in an office, store, hotel, rooming house or boardinghouse, restaurant, shop, factory, mine, quarry, or mill or on a farm; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c58/s58.002/2">
<num value="2">(2)</num>
<chapeau>performs a service:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c58/s58.002/A">
<num value="A">(A)</num>
<content>in cutting, preparing, hauling, or transporting logs or timber to a place of disposition;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c58/s58.002/B">
<num value="B">(B)</num>
<content>on a means of transportation of logs or timber; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c58/s58.002/C">
<num value="C">(C)</num>
<content>in constructing or maintaining a tram or railroad constructed or used for transporting logs or timber to their owner or a point of disposition.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c58/s58.002/b">
<num value="b">(b)</num>
<content>The amount of the lien is the amount owed under the contract.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3572, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c58/s58.003">
<num value="58.003">Sec. 58.003.</num>
<heading>PROPERTY SUBJECT TO LIEN</heading>
<chapeau>Each thing of value owned by or in the possession or control of the employer or the employer's agent, receiver, or trustee is subject to the lien if:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c58/s58.003/1">
<num value="1">(1)</num>
<content>created in whole or part by the lien claimant's work;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c58/s58.003/2">
<num value="2">(2)</num>
<content>used by or useful to the lien claimant in the performance of the work; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c58/s58.003/3">
<num value="3">(3)</num>
<content>necessarily connected with the performance of the work.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3572, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c58/s58.004">
<num value="58.004">Sec. 58.004.</num>
<heading>SECURING LIEN</heading>
<subsection identifier="/us/tx/pr/t5/c58/s58.004/a">
<num value="a">(a)</num>
<chapeau>Not later than the 30th day after the day that the indebtedness accrues, a worker who has not received payment for work performed and who wishes to claim the lien must:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c58/s58.004/1">
<num value="1">(1)</num>
<content>serve a copy of an account of the services, stating the amount due, on the employer or the employer's agent, receiver, or trustee; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c58/s58.004/2">
<num value="2">(2)</num>
<content>file a copy of the account with the county clerk of the county in which the services were performed.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c58/s58.004/b">
<num value="b">(b)</num>
<content>The party making an account must execute an affidavit verifying the contents of the account.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c58/s58.004/c">
<num value="c">(c)</num>
<content>Substantial compliance with this section secures the lien.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3572, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c58/s58.005">
<num value="58.005">Sec. 58.005.</num>
<heading>PRIORITY</heading>
<subsection identifier="/us/tx/pr/t5/c58/s58.005/a">
<num value="a">(a)</num>
<content>A lien under this chapter is a first lien, except that a farmhand's lien is subordinate to a landlord's lien provided by law.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c58/s58.005/b">
<num value="b">(b)</num>
<content>Liens under this chapter take priority in the order that the accounts are filed with the county clerk.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3573, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c58/s58.006">
<num value="58.006">Sec. 58.006.</num>
<heading>DURATION OF LIEN</heading>
<content>The lien ceases to exist six months after the day that it is secured unless the lien claimant has sued to foreclose the lien.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3573, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c58/s58.007">
<num value="58.007">Sec. 58.007.</num>
<heading>PURCHASE OF PROPERTY TO WHICH LIEN HAS ATTACHED</heading>
<subsection identifier="/us/tx/pr/t5/c58/s58.007/a">
<num value="a">(a)</num>
<content>A person who purchases from its owner property to which the lien has attached and who has no actual or constructive notice of the lien takes the property free from the lien.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c58/s58.007/b">
<num value="b">(b)</num>
<content>An account filed with the county clerk under this chapter or a suit to foreclose a lien is constructive notice of the lien's existence.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3573, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c58/s58.008">
<num value="58.008">Sec. 58.008.</num>
<heading>ASSIGNMENT OF LIEN</heading>
<content>The lien may be assigned. An assignee receives the rights and privileges held by the assignor under the lien.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3573, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c58/s58.009">
<num value="58.009">Sec. 58.009.</num>
<heading>PAYMENT OF WAGES</heading>
<content>For purposes of this chapter, wages are due weekly for work performed by the day or week and monthly for work performed by the month, and an employer shall pay wages in United States legal tender.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3573, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t5/c59">
<num value="59">CHAPTER 59.</num>
<heading>SELF-SERVICE STORAGE FACILITY LIENS</heading>
<subchapter identifier="/us/tx/pr/t5/c59/scA">
<num value="A">SUBCHAPTER A.</num>
<heading>GENERAL PROVISIONS</heading>
<section identifier="/us/tx/pr/t5/c59/scA/s59.001">
<num value="59.001">Sec. 59.001.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c59/scA/s59.001/1">
<num value="1">(1)</num>
<content>"Lessor" means an owner, lessor, sublessor, or managing agent of a self-service storage facility.</content>
<continuation>(1-a) "Military service" means:</continuation>
<subparagraph identifier="/us/tx/pr/t5/c59/scA/s59.001/A">
<num value="A">(A)</num>
<content>military service as defined by Section 101, Servicemembers Civil Relief Act (50 U.S.C. App. Section 511); and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c59/scA/s59.001/B">
<num value="B">(B)</num>
<content>active duty service for a period of more than 30 consecutive days as a member of the Texas State Guard or Texas National Guard under the call of the governor.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c59/scA/s59.001/2">
<num value="2">(2)</num>
<content>"Rental agreement" means a written or oral agreement that establishes or modifies the terms of use of a self-service storage facility.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c59/scA/s59.001/3">
<num value="3">(3)</num>
<content>"Self-service storage facility" means real property that is rented to be used exclusively for storage of property and is cared for and controlled by the tenant.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c59/scA/s59.001/4">
<num value="4">(4)</num>
<content>"Tenant" means a person entitled under a rental agreement to the exclusive use of storage space at a self-service storage facility.</content>
<continuation>(4-a) "Vehicle storage facility" has the meaning assigned by Section 2303.002, Occupations Code.</continuation>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c59/scA/s59.001/5">
<num value="5">(5)</num>
<content>"Verified mail" means any method of mailing that provides evidence of mailing.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3574, ch. 576, Sec. 1, eff. Jan. 1, 1984.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 405 (S.B. 690), Sec. 1, eff. January 1, 2012.
Acts 2021, 87th Leg., R.S., Ch. 99 (S.B. 1181), Sec. 1, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c59/scA/s59.002">
<num value="59.002">Sec. 59.002.</num>
<heading>APPLICABILITY</heading>
<content>This chapter applies to a self-service storage facility rental agreement that is entered into, extended, or renewed after September 1, 1981.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3574, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c59/scA/s59.003">
<num value="59.003">Sec. 59.003.</num>
<heading>APPLICABILITY OF OTHER STATUTES</heading>
<subsection identifier="/us/tx/pr/t5/c59/scA/s59.003/a">
<num value="a">(a)</num>
<chapeau>The following provisions do not apply to a self-service storage facility:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c59/scA/s59.003/1">
<num value="1">(1)</num>
<content>Subchapter B, Chapter 54;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c59/scA/s59.003/2">
<num value="2">(2)</num>
<content>Chapter 70; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c59/scA/s59.003/3">
<num value="3">(3)</num>
<content>Chapter 181, Health and Safety Code.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c59/scA/s59.003/b">
<num value="b">(b)</num>
<chapeau>Unless a lessor issues a warehouse receipt, bill of lading, or other document of title relating to property stored at the facility, the following statutes do not apply to a self-service storage facility:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c59/scA/s59.003/1">
<num value="1">(1)</num>
<content>Chapter 7, Business & Commerce Code, as amended; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c59/scA/s59.003/2">
<num value="2">(2)</num>
<content>Chapter 14, Agriculture Code.</content>
</paragraph>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3575, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 2001, 77th Leg., ch. 1124, Sec. 3, eff. Sept. 1, 2001.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 405 (S.B. 690), Sec. 2, eff. January 1, 2012.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c59/scA/s59.004">
<num value="59.004">Sec. 59.004.</num>
<heading>VARIATION BY AGREEMENT AND WAIVER</heading>
<content>Except as expressly provided by this chapter, a lessor or tenant may not vary the provisions of this chapter by agreement or waive rights conferred by this chapter.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3575, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c59/scA/s59.005">
<num value="59.005">Sec. 59.005.</num>
<heading>DAMAGES FOR VIOLATION</heading>
<content>A person injured by a violation of this chapter may sue for damages under the Deceptive Trade Practices--Consumer Protection Act (Subchapter E, Chapter 17, Business & Commerce Code).</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3575, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c59/scA/s59.006">
<num value="59.006">Sec. 59.006.</num>
<heading>ATTACHMENT AND PRIORITY OF LIEN</heading>
<content>A lien under this chapter attaches on the date the tenant places the property at the self-service storage facility. The lien takes priority over all other liens on the same property.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3575, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c59/scA/s59.007">
<num value="59.007">Sec. 59.007.</num>
<heading>PURCHASE OF PROPERTY</heading>
<content>A good faith purchaser of property sold to satisfy a lien under this chapter takes the property free of a claim by a person against whom the lien was valid, regardless of whether the lessor has complied with this chapter.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3575, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c59/scA/s59.008">
<num value="59.008">Sec. 59.008.</num>
<heading>REDEMPTION</heading>
<content>A tenant may redeem property seized under a judicial order or a contractual landlord's lien prior to its sale or other disposition by paying the lessor the amount of the lien and the lessor's reasonable expenses incurred under this chapter.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3575, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c59/scA/s59.009">
<num value="59.009">Sec. 59.009.</num>
<heading>RESIDENTIAL USE</heading>
<content>A tenant may not use or allow the use of a self-service storage facility as a residence.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3576, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c59/scA/s59.010">
<num value="59.010">Sec. 59.010.</num>
<heading>RIGHTS OF CERTAIN MILITARY MEMBERS</heading>
<subsection identifier="/us/tx/pr/t5/c59/scA/s59.010/a">
<num value="a">(a)</num>
<content>In this section, "servicemember" has the meaning assigned by Section 101, Servicemembers Civil Relief Act (50 U.S.C. App. Section 511).</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c59/scA/s59.010/b">
<num value="b">(b)</num>
<content>A member of the Texas State Guard or Texas National Guard who is in military service is entitled to the same protections and rights relating to the enforcement of storage liens under the Servicemembers Civil Relief Act (50 U.S.C. App. Section 501 et seq.) to which a servicemember is entitled.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 405 (S.B. 690), Sec. 3, eff. January 1, 2012.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t5/c59/scB">
<num value="B">SUBCHAPTER B.</num>
<heading>LIEN</heading>
<section identifier="/us/tx/pr/t5/c59/scB/s59.021">
<num value="59.021">Sec. 59.021.</num>
<heading>LIEN; PROPERTY ATTACHED</heading>
<content>A lessor has a lien on all property in a self-service storage facility for the payment of charges that are due and unpaid by the tenant.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3576, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1985, 69th Leg., ch. 117, Sec. 12(a), eff. Sept. 1, 1985.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t5/c59/scC">
<num value="C">SUBCHAPTER C.</num>
<heading>ENFORCEMENT OF LIEN</heading>
<section identifier="/us/tx/pr/t5/c59/scC/s59.041">
<num value="59.041">Sec. 59.041.</num>
<heading>ENFORCEMENT OF LIEN</heading>
<subsection identifier="/us/tx/pr/t5/c59/scC/s59.041/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (b) of this section, a lessor may enforce a lien under this chapter only under a judgment by a court of competent jurisdiction that forecloses the lien and orders the sale of the property to which it is attached.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c59/scC/s59.041/b">
<num value="b">(b)</num>
<chapeau>A lessor may enforce a lien under this chapter by seizing and selling the property to which the lien is attached if:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c59/scC/s59.041/1">
<num value="1">(1)</num>
<content>the seizure and sale are made under the terms of a contractual landlord's lien as underlined or printed in conspicuous bold print in a written rental agreement between the lessor and tenant; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c59/scC/s59.041/2">
<num value="2">(2)</num>
<content>the seizure and sale are made in accordance with this chapter.</content>
</paragraph>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3576, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1985, 69th Leg., ch. 117, Sec. 12(c), eff. Sept. 1, 1985.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c59/scC/s59.042">
<num value="59.042">Sec. 59.042.</num>
<heading>PROCEDURE FOR SEIZURE AND SALE</heading>
<subsection identifier="/us/tx/pr/t5/c59/scC/s59.042/a">
<num value="a">(a)</num>
<content>A lessor who wishes to enforce a contractual landlord's lien by seizing and selling or otherwise disposing of the property to which it is attached must deliver written notice of the claim to the tenant.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c59/scC/s59.042/b">
<num value="b">(b)</num>
<content>If the tenant fails to satisfy the claim on or before the 14th day after the date the notice is delivered, the lessor must publish or post notices advertising the sale as provided by this subchapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c59/scC/s59.042/c">
<num value="c">(c)</num>
<content>If notice is by publication, the lessor may not sell the property until the 15th day after the date the notice is first published. If notice is by posting, the lessor may sell the property after the 10th day after the date the notices are posted.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3576, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 18, Sec. 5, eff. Oct. 2, 1984; Acts 1985, 69th Leg., ch. 117, Sec. 12(d), eff. Sept. 1, 1985.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 405 (S.B. 690), Sec. 4, eff. January 1, 2012.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c59/scC/s59.043">
<num value="59.043">Sec. 59.043.</num>
<heading>CONTENTS AND DELIVERY OF NOTICE OF CLAIM; INFORMATION REGARDING TENANT'S MILITARY SERVICE</heading>
<subsection identifier="/us/tx/pr/t5/c59/scC/s59.043/a">
<num value="a">(a)</num>
<chapeau>The lessor's notice to the tenant of the claim must contain:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c59/scC/s59.043/1">
<num value="1">(1)</num>
<content>an itemized account of the claim;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c59/scC/s59.043/2">
<num value="2">(2)</num>
<content>the name, address, and telephone number of the lessor or the lessor's agent;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c59/scC/s59.043/3">
<num value="3">(3)</num>
<content>a statement that the contents of the self-service storage facility have been seized under the contractual landlord's lien;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c59/scC/s59.043/4">
<num value="4">(4)</num>
<chapeau>a statement that if the tenant fails to satisfy the claim on or before the 14th day after the date the notice is delivered, the property may be, as applicable:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c59/scC/s59.043/A">
<num value="A">(A)</num>
<content>sold at public auction under this subchapter; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c59/scC/s59.043/B">
<num value="B">(B)</num>
<content>towed to a vehicle storage facility and disposed of by the vehicle storage facility under Subchapter D, Chapter 2303, Occupations Code; and</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c59/scC/s59.043/5">
<num value="5">(5)</num>
<content>a statement underlined or printed in conspicuous bold print requesting a tenant who is in military service to notify the lessor of the status of the tenant's current military service immediately.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c59/scC/s59.043/b">
<num value="b">(b)</num>
<content>A lessor may require written proof of a tenant's military service in the form of documentation from the United States Department of Defense or other documentation reasonably acceptable to the lessor.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c59/scC/s59.043/c">
<num value="c">(c)</num>
<content>Subject to Subsection (d), the lessor must deliver the notice in person or by e-mail or verified mail to the tenant's last known e-mail or postal address as stated in the rental agreement or in a written notice from the tenant to the lessor furnished after the execution of the rental agreement. Notice by verified mail is considered delivered when the notice, properly addressed with postage prepaid, is deposited with the United States Postal Service or a common carrier. Notice by e-mail is considered delivered when sent to the last known e-mail address of the tenant.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c59/scC/s59.043/d">
<num value="d">(d)</num>
<content>The notice may not be sent by e-mail unless a written rental agreement between the lessor and the tenant contains language underlined or in conspicuous bold print that notice may be given by e-mail if the tenant elects to provide an e-mail address.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3577, ch. 576, Sec. 1, eff. Jan. 1, 1984.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 405 (S.B. 690), Sec. 5, eff. January 1, 2012.
Acts 2021, 87th Leg., R.S., Ch. 99 (S.B. 1181), Sec. 2, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c59/scC/s59.044">
<num value="59.044">Sec. 59.044.</num>
<heading>NOTICE OF SALE</heading>
<subsection identifier="/us/tx/pr/t5/c59/scC/s59.044/a">
<num value="a">(a)</num>
<chapeau>The notice advertising the sale must contain:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c59/scC/s59.044/1">
<num value="1">(1)</num>
<content>a general description of the property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c59/scC/s59.044/2">
<num value="2">(2)</num>
<content>a statement that the property is being sold to satisfy a landlord's lien;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c59/scC/s59.044/3">
<num value="3">(3)</num>
<content>the tenant's name;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c59/scC/s59.044/4">
<num value="4">(4)</num>
<content>the address of the self-service storage facility; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c59/scC/s59.044/5">
<num value="5">(5)</num>
<content>the time, place, and terms of the sale.</content>
<continuation>(a-1) For the purposes of Subsection (a)(5), the place of a sale is:</continuation>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c59/scC/s59.044/1">
<num value="1">(1)</num>
<content>the physical address of the location of the sale if the sale is conducted at the self-service storage facility or a reasonably near public place; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c59/scC/s59.044/2">
<num value="2">(2)</num>
<content>the address of the Internet website if the sale is conducted through an Internet website.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c59/scC/s59.044/b">
<num value="b">(b)</num>
<content>The lessor must publish the notice once in each of two consecutive weeks in a newspaper of general circulation in the county in which the self-service storage facility is located. If there is not a newspaper of general circulation in the county, the lessor may instead post a copy of the notice at the self-service storage facility and at least five other conspicuous locations near the facility.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3577, ch. 576, Sec. 1, eff. Jan. 1, 1984.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 203 (S.B. 952), Sec. 1, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c59/scC/s59.0445">
<num value="59.0445">Sec. 59.0445.</num>
<heading>NOTICE TO OWNER AND LIENHOLDERS</heading>
<subsection identifier="/us/tx/pr/t5/c59/scC/s59.0445/a">
<num value="a">(a)</num>
<chapeau>This section applies to the enforcement of a lien under this chapter on:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c59/scC/s59.0445/1">
<num value="1">(1)</num>
<content>a motor vehicle subject to Chapter 501, Transportation Code;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c59/scC/s59.0445/2">
<num value="2">(2)</num>
<content>a motorboat, vessel, or outboard motor for which a certificate of title is required under Subchapter B, Chapter 31, Parks and Wildlife Code; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c59/scC/s59.0445/3">
<num value="3">(3)</num>
<content>a motor vehicle, motorboat, vessel, or outboard motor registered or titled outside this state.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c59/scC/s59.0445/b">
<num value="b">(b)</num>
<content>In addition to the notices required by Sections 59.042 and 59.044, not later than the 30th day after the date the lessor takes possession of the motor vehicle, motorboat, vessel, or outboard motor to enforce a lien under this chapter, the lessor shall give written notice of sale to the last known owner and each holder of a lien recorded on the registration or certificate of title of the motor vehicle, motorboat, vessel, or outboard motor or, if the registration or title is outside this state, the owner and each lienholder of record in the location in which the motor vehicle, motorboat, vessel, or outboard motor is registered or titled.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c59/scC/s59.0445/c">
<num value="c">(c)</num>
<chapeau>Except as provided by Subsection (d), the notice required by this section must be sent by verified mail. Notice by verified mail is considered mailed when the notice, properly addressed with postage prepaid, is deposited with the United States Postal Service or a common carrier. The notice must include:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c59/scC/s59.0445/1">
<num value="1">(1)</num>
<content>the amount of the charges secured by the lien;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c59/scC/s59.0445/2">
<num value="2">(2)</num>
<content>a request for payment; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c59/scC/s59.0445/3">
<num value="3">(3)</num>
<content>a statement that if the charges are not paid in full before the 31st day after the date the notice is mailed or published, as applicable, the property may be sold at public auction.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c59/scC/s59.0445/d">
<num value="d">(d)</num>
<chapeau>The notice required by this section may be given by publishing the notice once in a print or electronic version of a newspaper of general circulation in the county in which the motor vehicle, motorboat, vessel, or outboard motor is stored if:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c59/scC/s59.0445/1">
<num value="1">(1)</num>
<content>the lessor submits a written request by verified mail to the governmental entity with which the motor vehicle, motorboat, vessel, or outboard motor is registered or titled requesting information relating to the identity of the last known owner of record and any lienholder of record;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c59/scC/s59.0445/2">
<num value="2">(2)</num>
<chapeau>the lessor:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c59/scC/s59.0445/A">
<num value="A">(A)</num>
<content>is advised in writing by the governmental entity with which the motor vehicle, motorboat, vessel, or outboard motor is registered or titled that the entity is unwilling or unable to provide information on the last known owner of record or any lienholder of record; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c59/scC/s59.0445/B">
<num value="B">(B)</num>
<content>does not receive a response from the governmental entity with which the motor vehicle, motorboat, vessel, or outboard motor is registered or titled on or before the 21st day after the date the lessor submits the request;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c59/scC/s59.0445/3">
<num value="3">(3)</num>
<content>the identity of the last known owner of record cannot be determined;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c59/scC/s59.0445/4">
<num value="4">(4)</num>
<content>the registration or title does not contain an address for the last known owner of record; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c59/scC/s59.0445/5">
<num value="5">(5)</num>
<content>the lessor cannot determine the identities and addresses of the lienholders of record.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c59/scC/s59.0445/e">
<num value="e">(e)</num>
<content>The lessor is not required to publish notice under Subsection (d) if a correctly addressed notice is sent with sufficient postage in accordance with Subsections (b) and (c) and is returned as unclaimed or refused or with a notation that the addressee is unknown or has moved without leaving a forwarding address or the forwarding order has expired.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c59/scC/s59.0445/f">
<num value="f">(f)</num>
<content>After notice is given under this section to the owner of or the holder of a lien on the motor vehicle, motorboat, vessel, or outboard motor, the owner or lienholder may take possession of the motor vehicle, motorboat, vessel, or outboard motor by paying all charges due to the lessor before the 31st day after the date the notice is mailed or published as provided by this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c59/scC/s59.0445/g">
<num value="g">(g)</num>
<chapeau>If the charges are not paid before the 31st day after the date the notice is mailed or published, as applicable, the lessor may:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c59/scC/s59.0445/1">
<num value="1">(1)</num>
<content>sell the motor vehicle, motorboat, vessel, or outboard motor at a public sale and apply the proceeds to the charges; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c59/scC/s59.0445/2">
<num value="2">(2)</num>
<chapeau>if the property that is the subject of the notice is a motor vehicle, dispose of the motor vehicle in accordance with Subchapter D, Chapter 683, Transportation Code, if the lessor determines that:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c59/scC/s59.0445/A">
<num value="A">(A)</num>
<content>the vehicle's only residual value is as a source of parts or scrap metal; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c59/scC/s59.0445/B">
<num value="B">(B)</num>
<content>it is not economical to dispose of the vehicle at a public sale.</content>
<continuation>(g-1) If the lessor disposes of the property under Subsection (g)(2), the lessor shall apply the fair market value of the motor vehicle to the charges due to the lessor.</continuation>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c59/scC/s59.0445/h">
<num value="h">(h)</num>
<content>A person commits an offense if the person knowingly provides false or misleading information in a notice required by this section. An offense under this subsection is a Class B misdemeanor.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 405 (S.B. 690), Sec. 6, eff. January 1, 2012.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 1061 (H.B. 3131), Sec. 4, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c59/scC/s59.045">
<num value="59.045">Sec. 59.045.</num>
<heading>CONDUCT OF SALE</heading>
<subsection identifier="/us/tx/pr/t5/c59/scC/s59.045/a">
<num value="a">(a)</num>
<chapeau>A sale under this subchapter must be a public sale:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c59/scC/s59.045/1">
<num value="1">(1)</num>
<content>conducted at the self-service storage facility or a reasonably near public place; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c59/scC/s59.045/2">
<num value="2">(2)</num>
<content>conducted through an Internet website accessible to the public.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c59/scC/s59.045/b">
<num value="b">(b)</num>
<content>The lessor must conduct the sale according to the terms specified in the notice advertising the sale and sell the property to the highest bidder.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3578, ch. 576, Sec. 1, eff. Jan. 1, 1984.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 203 (S.B. 952), Sec. 2, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c59/scC/s59.046">
<num value="59.046">Sec. 59.046.</num>
<heading>EXCESS PROCEEDS OF SALE</heading>
<content>If the proceeds of a sale under this subchapter are greater than the amount of the lien and the reasonable expenses of the sale, the lessor shall deliver written notice of the excess to the tenant's last known address as stated in the rental agreement or in a written notice from the tenant to the lessor furnished after the execution of the rental agreement. The lessor shall retain the excess and deliver it to the tenant if the tenant requests it before two years after the date of the sale. If the tenant does not request the excess before two years after the date of the sale, the lessor owns the excess.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3578, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t5/c59/scD">
<num value="D">SUBCHAPTER D.</num>
<heading>TOWING OF CERTAIN PROPERTY TO VEHICLE STORAGE FACILITY</heading>
<section identifier="/us/tx/pr/t5/c59/scD/s59.051">
<num value="59.051">Sec. 59.051.</num>
<heading>APPLICABILITY</heading>
<chapeau>This subchapter applies only to property that is:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c59/scD/s59.051/1">
<num value="1">(1)</num>
<content>a motor vehicle, trailer, or semitrailer for which a title or registration is required under Chapter 501 or 502, Transportation Code;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c59/scD/s59.051/2">
<num value="2">(2)</num>
<content>a motorboat, vessel, or outboard motor for which a certificate of title is required under Subchapter B, Chapter 31, Parks and Wildlife Code; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c59/scD/s59.051/3">
<num value="3">(3)</num>
<content>a motor vehicle, trailer, semitrailer, motorboat, vessel, or outboard motor registered or titled outside this state.</content>
</paragraph>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 99 (S.B. 1181), Sec. 3, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c59/scD/s59.052">
<num value="59.052">Sec. 59.052.</num>
<heading>TRANSFER OF CERTAIN PROPERTY TO VEHICLE STORAGE FACILITY</heading>
<chapeau>Notwithstanding Subchapter C, a lessor who takes possession of property to which this subchapter applies to enforce a lien under this chapter may transfer possession of the property and have the property towed to a vehicle storage facility for disposition by the vehicle storage facility under Subchapter D, Chapter 2303, Occupations Code, if:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c59/scD/s59.052/1">
<num value="1">(1)</num>
<content>the transfer of possession and towing is authorized under a written rental agreement between the lessor and tenant;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c59/scD/s59.052/2">
<num value="2">(2)</num>
<content>the lessor gives written notice of the lessor's claim to the tenant as required under Section 59.042(a) in the manner prescribed by Section 59.043;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c59/scD/s59.052/3">
<num value="3">(3)</num>
<content>the tenant fails to satisfy the claim on or before the 14th day after the date the notice required under Section 59.042(a) is delivered in the manner prescribed by Section 59.043; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c59/scD/s59.052/4">
<num value="4">(4)</num>
<content>the vehicle storage facility agrees in writing to accept possession of the property.</content>
</paragraph>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 99 (S.B. 1181), Sec. 3, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c59/scD/s59.053">
<num value="59.053">Sec. 59.053.</num>
<heading>LIEN EXTINGUISHED</heading>
<content>A lessor's lien on property towed to a vehicle storage facility under Section 59.052 is extinguished when the property is towed from the self-service storage facility.</content>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 99 (S.B. 1181), Sec. 3, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c59/scD/s59.054">
<num value="59.054">Sec. 59.054.</num>
<heading>OTHER RIGHTS AND REMEDIES NOT AFFECTED</heading>
<content>Except as provided by Section 59.053, this subchapter does not affect any right or remedy of the lessor at law or in equity.</content>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 99 (S.B. 1181), Sec. 3, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c59/scD/s59.055">
<num value="59.055">Sec. 59.055.</num>
<heading>LESSOR'S LIABILITY FOR PROPERTY</heading>
<content>A lessor is not liable to a tenant for any damage to property that the lessor has towed under Section 59.052 that occurs during the tow or after the property is towed from the self-service storage facility.</content>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 99 (S.B. 1181), Sec. 3, eff. September 1, 2021.</sourceCredit>
</section>
</subchapter>
</chapter>
<chapter identifier="/us/tx/pr/t5/c60">
<num value="60">CHAPTER 60.</num>
<heading>NEWSPAPER EMPLOYEE'S LIEN</heading>
<section identifier="/us/tx/pr/t5/c60/s60.001">
<num value="60.001">Sec. 60.001.</num>
<heading>LIEN</heading>
<content>A worker in the editorial, reportorial, advertising, or business department of a newspaper, periodical, or other publication who labors or performs a service for the publication under a written or an oral contract with any person has a first lien under this chapter for the amount due under the contract.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3578, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c60/s60.002">
<num value="60.002">Sec. 60.002.</num>
<heading>PROPERTY SUBJECT TO LIEN</heading>
<content>The lien attaches to all products, papers, machinery, tools, fixtures, appurtenances, goods, wares, merchandise, subscription contracts, chattels, or other things of value that are created wholly or partly by the labor of the workers or that are necessarily connected with the performance of their labor or service and that are owned by or in possession of the person with whom the workers contracted.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3578, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t5/c61">
<num value="61">CHAPTER 61.</num>
<heading>MOTOR VEHICLE MORTGAGEE'S LIEN</heading>
<section identifier="/us/tx/pr/t5/c61/s61.001">
<num value="61.001">Sec. 61.001.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c61/s61.001/1">
<num value="1">(1)</num>
<content>"Motor vehicle" means any motor-driven or propelled vehicle required to be registered or licensed under the laws of this state.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c61/s61.001/2">
<num value="2">(2)</num>
<content>"Mortgagee" means a secured party, as defined by Section 9.102, Business & Commerce Code, holding a lien on a motor vehicle that has been perfected pursuant to Subchapter F, Chapter 501, Transportation Code.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c61/s61.001/3">
<num value="3">(3)</num>
<content>"Mortgagor" means a debtor, as defined by Section 9.102, Business & Commerce Code, giving a lien or agreeing that a lien may be retained on a motor vehicle.</content>
</paragraph>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 171, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 30.246, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 414, Sec. 2.37, eff. July 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c61/s61.002">
<num value="61.002">Sec. 61.002.</num>
<heading>LIEN</heading>
<content>A mortgagee has a lien on a cause of action or other claim of a mortgagor in connection with an accident that involves a motor vehicle on which the mortgagee has perfected a lien and that is attributable to the negligence of another person.</content>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 171, Sec. 1, eff. Sept. 1, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c61/s61.003">
<num value="61.003">Sec. 61.003.</num>
<heading>PROPERTY TO WHICH LIEN ATTACHES</heading>
<chapeau>The lien attaches to:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c61/s61.003/1">
<num value="1">(1)</num>
<content>a cause of action for damages arising from property damage to a motor vehicle on which the mortgagee has perfected a lien caused by an accident that is attributable to the negligence of another person;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c61/s61.003/2">
<num value="2">(2)</num>
<content>a judgment of a court in favor of a mortgagor arising from property damage to a motor vehicle on which the mortgagee has perfected a lien caused by an accident that is attributable to the negligence of another person;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c61/s61.003/3">
<num value="3">(3)</num>
<content>the proceeds of a settlement of a cause of action or a claim by the mortgagor for property damage to a motor vehicle on which the mortgagee has perfected a lien caused by an accident that is attributable to the negligence of another person; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c61/s61.003/4">
<num value="4">(4)</num>
<content>the proceeds of a property damage liability insurance policy carried by another person that protects the other person against property damage loss caused by accident or collision.</content>
</paragraph>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 171, Sec. 1, eff. Sept. 1, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c61/s61.004">
<num value="61.004">Sec. 61.004.</num>
<heading>AMOUNT OF LIEN</heading>
<chapeau>The amount of the lien is the lesser of:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c61/s61.004/1">
<num value="1">(1)</num>
<content>the fair market value of the motor vehicle before the accident;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c61/s61.004/2">
<num value="2">(2)</num>
<content>the reasonable cost of repair to the motor vehicle; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c61/s61.004/3">
<num value="3">(3)</num>
<content>the balance owed to the mortgagee by the mortgagor.</content>
</paragraph>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 171, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1993, 73rd Leg., ch. 48, Sec. 11, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c61/s61.005">
<num value="61.005">Sec. 61.005.</num>
<heading>DISCHARGE OF LIEN</heading>
<content>If the property to which a lien created under this chapter attaches is paid jointly to the mortgagee and the mortgagor, the lien is discharged.</content>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 171, Sec. 1, eff. Sept. 1, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c61/s61.006">
<num value="61.006">Sec. 61.006.</num>
<heading>ATTORNEY'S FEES</heading>
<content>The prevailing party in an action to enforce this chapter is entitled to recover reasonable attorney's fees.</content>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 548 (H.B. 4142), Sec. 1, eff. September 1, 2023.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t5/c62">
<num value="62">CHAPTER 62.</num>
<heading>BROKER'S AND APPRAISER'S LIEN ON COMMERCIAL REAL ESTATE</heading>
<subchapter identifier="/us/tx/pr/t5/c62/scA">
<num value="A">SUBCHAPTER A.</num>
<heading>GENERAL PROVISIONS</heading>
<section identifier="/us/tx/pr/t5/c62/scA/s62.001">
<num value="62.001">Sec. 62.001.</num>
<heading>SHORT TITLE</heading>
<content>This chapter may be cited as the Broker's and Appraiser's Lien on Commercial Real Estate Act.</content>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1571, Sec. 1, eff. Aug. 30, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c62/scA/s62.002">
<num value="62.002">Sec. 62.002.</num>
<heading>APPLICABILITY</heading>
<subsection identifier="/us/tx/pr/t5/c62/scA/s62.002/a">
<num value="a">(a)</num>
<content>This chapter applies only to real estate that is commercial real estate on the date the notice of lien is filed under this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scA/s62.002/b">
<num value="b">(b)</num>
<chapeau>This chapter does not apply to:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c62/scA/s62.002/1">
<num value="1">(1)</num>
<content>a transaction involving a claim for a commission of $2,500 or less in the aggregate; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scA/s62.002/2">
<num value="2">(2)</num>
<chapeau>a transaction for the sale of commercial real estate involving a claim for a commission of $5,000 or less in the aggregate if the commercial real estate:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c62/scA/s62.002/A">
<num value="A">(A)</num>
<content>is the principal place of business of the record title owner;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c62/scA/s62.002/B">
<num value="B">(B)</num>
<content>is occupied by more than one and fewer than five tenants; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c62/scA/s62.002/C">
<num value="C">(C)</num>
<content>is improved with 7,500 square feet or less of total gross building area.</content>
</subparagraph>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1571, Sec. 1, eff. Aug. 30, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c62/scA/s62.003">
<num value="62.003">Sec. 62.003.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c62/scA/s62.003/1">
<num value="1">(1)</num>
<chapeau>"Broker" means a person who:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c62/scA/s62.003/A">
<num value="A">(A)</num>
<content>is licensed as a broker under Chapter 1101, Occupations Code, and is not acting as a residential rental locator as defined by Section 1101.002, Occupations Code; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c62/scA/s62.003/B">
<num value="B">(B)</num>
<content>is licensed or certified as a real estate appraiser under Chapter 1103, Occupations Code.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scA/s62.003/2">
<num value="2">(2)</num>
<chapeau>"Commercial real estate" means all real estate except:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c62/scA/s62.003/A">
<num value="A">(A)</num>
<content>real estate improved with one to four residential units;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c62/scA/s62.003/B">
<num value="B">(B)</num>
<content>a single-family residential unit, including a condominium, townhouse, or home in a subdivision, if the unit is sold, leased, or otherwise conveyed on a unit-by-unit basis and regardless of whether the unit is part of a larger building or located on real estate containing more than four residential units;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c62/scA/s62.003/C">
<num value="C">(C)</num>
<content>real estate that is or includes on the real estate a person's homestead;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c62/scA/s62.003/D">
<num value="D">(D)</num>
<content>real estate that is not improved with a structure and is:</content>
</subparagraph>
</paragraph>
<subsection identifier="/us/tx/pr/t5/c62/scA/s62.003/i">
<num value="i">(i)</num>
<chapeau>zoned for single-family residential use; or</chapeau>
<clause identifier="/us/tx/pr/t5/c62/scA/s62.003/ii">
<num value="ii">(ii)</num>
<content>restricted for single-family use under restrictive covenants that will remain in effect for at least the next two years; or</content>
</clause>
<subparagraph identifier="/us/tx/pr/t5/c62/scA/s62.003/E">
<num value="E">(E)</num>
<content>real estate that:</content>
</subparagraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scA/s62.003/i">
<num value="i">(i)</num>
<chapeau>is primarily used for farming and ranching purposes;</chapeau>
<clause identifier="/us/tx/pr/t5/c62/scA/s62.003/ii">
<num value="ii">(ii)</num>
<content>will continue to be used primarily for farming and ranching purposes; and</content>
</clause>
<clause identifier="/us/tx/pr/t5/c62/scA/s62.003/iii">
<num value="iii">(iii)</num>
<content>is located more than three miles from the corporate boundaries of any municipality.</content>
</clause>
<paragraph identifier="/us/tx/pr/t5/c62/scA/s62.003/3">
<num value="3">(3)</num>
<content>"Commission" includes a fee or other valuable consideration.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scA/s62.003/4">
<num value="4">(4)</num>
<chapeau>"Commission agreement" means a written instrument that:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c62/scA/s62.003/A">
<num value="A">(A)</num>
<content>entitles a broker to a commission;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c62/scA/s62.003/B">
<num value="B">(B)</num>
<content>is signed by the person obligated to pay the commission or that person's authorized agent;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c62/scA/s62.003/C">
<num value="C">(C)</num>
<content>references the commission amount or describes the formula used to determine the commission amount; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c62/scA/s62.003/D">
<num value="D">(D)</num>
<content>contains a description legally sufficient for identification of the real estate interest that is the subject of the agreement if the person obligated to pay the commission is a seller or lessor.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scA/s62.003/5">
<num value="5">(5)</num>
<content>"Deferred commission" means a commission that is earned and is not yet payable.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scA/s62.003/6">
<num value="6">(6)</num>
<content>"Real estate" has the meaning assigned by Section 1101.002, Occupations Code.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1571, Sec. 1, eff. Aug. 30, 1999. Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 14A.803, eff. Sept. 1, 2003.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c62/scA/s62.004">
<num value="62.004">Sec. 62.004.</num>
<heading>PAYABLE COMMISSION AND EARNED COMMISSION</heading>
<subsection identifier="/us/tx/pr/t5/c62/scA/s62.004/a">
<num value="a">(a)</num>
<content>A commission is payable at the time provided in the commission agreement. If payment of the commission is conditioned on the occurrence of an event and that event does not occur, the person obligated to pay the commission is not required to pay the commission.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scA/s62.004/b">
<num value="b">(b)</num>
<chapeau>Except as provided by Subsection (c), a commission is earned on the earlier of the date that:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c62/scA/s62.004/1">
<num value="1">(1)</num>
<content>an event occurs that, under the commission agreement, defines when the commission is earned; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scA/s62.004/2">
<num value="2">(2)</num>
<content>the person obligated to pay the commission enters into a purchase contract or a lease during the period prescribed by the commission agreement for all or part of the commercial real estate if the purchase contract or lease is contemplated by the commission agreement and if the parties to the purchase contract or lease are contemplated by the commission agreement.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scA/s62.004/c">
<num value="c">(c)</num>
<chapeau>If a broker has earned a commission under a commission agreement relating to a lease transaction and the commission agreement provides that the broker may receive an additional commission when the lease is modified to expand the lease space or renewed, the additional commission is earned when:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c62/scA/s62.004/1">
<num value="1">(1)</num>
<content>the broker performs all the additional services relating to the lease modification or renewal expressly prescribed by the commission agreement; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scA/s62.004/2">
<num value="2">(2)</num>
<content>the broker first earned a commission under the commission agreement if the commission agreement does not expressly require the broker to perform additional services relating to a lease modification or renewal.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1571, Sec. 1, eff. Aug. 30, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c62/scA/s62.005">
<num value="62.005">Sec. 62.005.</num>
<heading>BROKER'S ADDRESS FOR RECEIPT OF NOTICE</heading>
<chapeau>A seller, lessor, buyer, or tenant shall send any notice required to be sent to the broker under this chapter to the broker:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c62/scA/s62.005/1">
<num value="1">(1)</num>
<content>at the broker's address as reflected in the records of the Texas Real Estate Commission; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scA/s62.005/2">
<num value="2">(2)</num>
<content>at the broker's last address that the broker furnished the seller, lessor, buyer, or tenant by certified mail, return receipt requested, if the broker's license is expired.</content>
</paragraph>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1571, Sec. 1, eff. Aug. 30, 1999.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t5/c62/scB">
<num value="B">SUBCHAPTER B.</num>
<heading>BROKER'S LIEN</heading>
<section identifier="/us/tx/pr/t5/c62/scB/s62.021">
<num value="62.021">Sec. 62.021.</num>
<heading>PERSON ENTITLED TO LIEN</heading>
<subsection identifier="/us/tx/pr/t5/c62/scB/s62.021/a">
<num value="a">(a)</num>
<chapeau>A broker has a lien on a seller's or lessor's commercial real estate interest in the amount specified by the commission agreement if:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c62/scB/s62.021/1">
<num value="1">(1)</num>
<content>the broker has earned a commission under a commission agreement signed by the seller or lessor of the commercial real estate interest or the seller's or lessor's authorized agent; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scB/s62.021/2">
<num value="2">(2)</num>
<content>a notice of lien is recorded and indexed as provided by Section 62.024.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scB/s62.021/b">
<num value="b">(b)</num>
<chapeau>A broker has a lien on the commercial real estate interest purchased by a prospective buyer in the amount specified by the commission agreement if:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c62/scB/s62.021/1">
<num value="1">(1)</num>
<content>the broker has earned a commission under a commission agreement signed by the prospective buyer of the commercial real estate interest or the prospective buyer's authorized agent; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scB/s62.021/2">
<num value="2">(2)</num>
<content>a notice of lien is recorded and indexed as provided by Section 62.024.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scB/s62.021/c">
<num value="c">(c)</num>
<chapeau>A broker has a lien on the leasehold interest in the commercial real estate that a prospective tenant leases in the amount specified by the commission agreement if:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c62/scB/s62.021/1">
<num value="1">(1)</num>
<content>the broker has earned a commission under a commission agreement signed by the prospective tenant of the commercial real estate interest or the prospective tenant's authorized agent; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scB/s62.021/2">
<num value="2">(2)</num>
<content>a notice of lien is recorded and indexed as provided by Section 62.024.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scB/s62.021/d">
<num value="d">(d)</num>
<content>A lien described by this section is available only to the broker named in the commission agreement. The lien is not available to an employee or independent contractor of the broker.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scB/s62.021/e">
<num value="e">(e)</num>
<content>The broker's right to claim a lien based on the commission agreement must be disclosed in the commission agreement.</content>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1571, Sec. 1, eff. Aug. 30, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c62/scB/s62.022">
<num value="62.022">Sec. 62.022.</num>
<heading>WAIVER, RELEASE, OR DISCHARGE OF LIEN; ASSUMPTION OF COMMISSION OBLIGATION</heading>
<subsection identifier="/us/tx/pr/t5/c62/scB/s62.022/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (b), the waiver of a broker's right to a lien under this chapter, or a release given for the purpose of releasing the broker's lien before the commission is satisfied or forgiven, is void.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scB/s62.022/b">
<num value="b">(b)</num>
<chapeau>A broker's entitlement to a lien on the interest of an owner or tenant in commercial real estate shall be automatically waived if:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c62/scB/s62.022/1">
<num value="1">(1)</num>
<content>the commission is earned and payable for services provided relating to a lease transaction; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scB/s62.022/2">
<num value="2">(2)</num>
<content>the commission agreement is included as a provision of the lease agreement.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scB/s62.022/c">
<num value="c">(c)</num>
<chapeau>A lien under this chapter is discharged by:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c62/scB/s62.022/1">
<num value="1">(1)</num>
<content>a court order discharging the lien;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scB/s62.022/2">
<num value="2">(2)</num>
<content>paying the commission to the broker named in the commission agreement; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scB/s62.022/3">
<num value="3">(3)</num>
<content>establishing an escrow account described by Subchapter F.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scB/s62.022/d">
<num value="d">(d)</num>
<content>A person who assumes an owner's or tenant's commercial real estate interest is bound by a commission agreement included in a lease agreement unless an escrow account is established under Subchapter F or a bond is provided under Subchapter G.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scB/s62.022/e">
<num value="e">(e)</num>
<content>This section does not affect the rights of a mortgagee who forecloses on commercial real estate and does not assume the lease on which a commission agreement is based.</content>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1571, Sec. 1, eff. Aug. 30, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c62/scB/s62.023">
<num value="62.023">Sec. 62.023.</num>
<heading>AFFIDAVIT IDENTIFYING BROKER</heading>
<content>If requested by the buyer, the buyer's authorized agent, or the escrow agent for the commercial real estate transaction, the seller of commercial real estate and the broker representing the seller shall provide to the requesting party before the closing of the transaction a written affidavit identifying each broker with whom the affiant knows or believes the seller or the seller's authorized agent has signed a commission agreement under which a commission is claimed or earned and has not been paid.</content>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1571, Sec. 1, eff. Aug. 30, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c62/scB/s62.024">
<num value="62.024">Sec. 62.024.</num>
<heading>FILING OF NOTICE OF LIEN</heading>
<subsection identifier="/us/tx/pr/t5/c62/scB/s62.024/a">
<num value="a">(a)</num>
<content>A broker claiming a lien under this chapter may not file a notice of lien unless the commission on which the lien is based is earned.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scB/s62.024/b">
<num value="b">(b)</num>
<content>A broker claiming a lien under this chapter must file a notice of lien as provided by Subchapter C with the county clerk of the county in which the commercial real estate is located.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scB/s62.024/c">
<num value="c">(c)</num>
<content>The county clerk shall record the notice of lien in records kept for that purpose and shall index and cross-index the notice of lien in the names of the broker, each person obligated to pay the commission under the commission agreement, and each person who owns an interest in the commercial real estate if the broker claims a lien on that interest.</content>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1571, Sec. 1, eff. Aug. 30, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c62/scB/s62.025">
<num value="62.025">Sec. 62.025.</num>
<heading>CONTENTS OF NOTICE OF LIEN</heading>
<chapeau>The notice of lien must be signed by the broker or by a person authorized to sign on behalf of the broker and must contain the following:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c62/scB/s62.025/1">
<num value="1">(1)</num>
<chapeau>a sworn statement of the nature and amount of the claim, including:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c62/scB/s62.025/A">
<num value="A">(A)</num>
<content>the commission amount or the formula used to determine the commission;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c62/scB/s62.025/B">
<num value="B">(B)</num>
<content>the type of commission at issue, including a deferred commission; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c62/scB/s62.025/C">
<num value="C">(C)</num>
<content>the month and year in which the commission was earned;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scB/s62.025/2">
<num value="2">(2)</num>
<content>the name of the broker and the real estate license number of the broker;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scB/s62.025/3">
<num value="3">(3)</num>
<content>the name as reflected in the broker's records of any person who the broker believes is obligated to pay the commission under the commission agreement;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scB/s62.025/4">
<num value="4">(4)</num>
<content>the name as reflected in the broker's records of any person the broker believes to be an owner of the commercial real estate interest on which the lien is claimed;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scB/s62.025/5">
<num value="5">(5)</num>
<content>a description legally sufficient for identification of the commercial real estate interest sought to be charged with the lien;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scB/s62.025/6">
<num value="6">(6)</num>
<content>the name of any cooperating broker or principal in the transaction with whom the broker intends to share the commission and the dollar or percentage amount to be shared; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scB/s62.025/7">
<num value="7">(7)</num>
<content>a copy of the commission agreement on which the lien is based.</content>
</paragraph>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1571, Sec. 1, eff. Aug. 30, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c62/scB/s62.026">
<num value="62.026">Sec. 62.026.</num>
<heading>NOTICE OF FILING</heading>
<subsection identifier="/us/tx/pr/t5/c62/scB/s62.026/a">
<num value="a">(a)</num>
<content>In this section, "business day" means a day other than a Saturday, Sunday, or holiday recognized by this state.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scB/s62.026/b">
<num value="b">(b)</num>
<chapeau>Not later than one business day after the date the broker files a notice of lien, the broker shall mail a copy of the notice of lien by certified mail, return receipt requested, or registered mail to:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c62/scB/s62.026/1">
<num value="1">(1)</num>
<content>the owner of record of the commercial real estate interest on which the lien is claimed or the owner's authorized agent; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scB/s62.026/2">
<num value="2">(2)</num>
<chapeau>the prospective buyer or tenant and any escrow agent named in a contract for the sale or lease of the commercial real estate interest on which the lien is claimed if:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c62/scB/s62.026/A">
<num value="A">(A)</num>
<content>a binding written contract for the sale or lease of the commercial real estate interest is in effect between the owner and the prospective buyer or tenant in a transaction that is the basis for the commission; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c62/scB/s62.026/B">
<num value="B">(B)</num>
<content>the binding written contract was executed by the owner and the prospective buyer or tenant before the date the notice of lien is filed.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scB/s62.026/c">
<num value="c">(c)</num>
<content>Service of the notice under Subsection (b) is complete when the notice is deposited in the United States mail, postage prepaid, and addressed to the persons entitled to receive the notice under this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scB/s62.026/d">
<num value="d">(d)</num>
<content>If the broker has actual knowledge of the identity of the escrow agent named in the contract for the sale or lease of the commercial real estate interest on which the broker claims a lien or of the escrow agent otherwise closing the sale or lease of the commercial real estate interest, the broker, before the first business day before the date that the sale or lease is closed on commercial real estate for which a notice of lien is filed, shall deliver a file-stamped copy or transmit a facsimile of a file-stamped copy of the notice of lien to each escrow agent at the office in which the closing of the sale or lease will occur for use during the closing of the sale or lease. The broker shall deliver the copy or transmit the facsimile directly to the individual escrow agent responsible for closing the sale or lease if the broker knows that person's name.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scB/s62.026/e">
<num value="e">(e)</num>
<content>If the escrow agent receives the notice of lien, the escrow agent and other parties to the sale or lease may not close the transaction unless the lien is released, the prospective buyer or tenant purchases or leases the property subject to the lien, the funds are held in escrow as provided by Subchapter F, or a bond is filed as provided by Subchapter G.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scB/s62.026/f">
<num value="f">(f)</num>
<content>If the broker fails to comply with this section, the notice of lien is void.</content>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1571, Sec. 1, eff. Aug. 30, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c62/scB/s62.027">
<num value="62.027">Sec. 62.027.</num>
<heading>INCEPTION OF BROKER'S LIEN</heading>
<subsection identifier="/us/tx/pr/t5/c62/scB/s62.027/a">
<num value="a">(a)</num>
<content>A broker's lien attaches to the commercial real estate interest owned by the person obligated to pay the commission on the date the notice of lien is recorded as provided by this chapter. The lien does not relate back to the date of the commission agreement.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scB/s62.027/b">
<num value="b">(b)</num>
<content>A notice of lien for amounts earned by the broker under an installment contract or under a commission agreement for a deferred commission is enforceable only to the extent that the installment or commission has become payable.</content>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1571, Sec. 1, eff. Aug. 30, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c62/scB/s62.028">
<num value="62.028">Sec. 62.028.</num>
<heading>PRIORITY</heading>
<subsection identifier="/us/tx/pr/t5/c62/scB/s62.028/a">
<num value="a">(a)</num>
<content>A recorded lien, mortgage, or other encumbrance on commercial real estate, including a recorded lien securing revolving credit and future advances for a loan, recorded before the date a broker's lien is recorded has priority over the broker's lien.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scB/s62.028/b">
<num value="b">(b)</num>
<content>A broker's lien on the commercial real estate interest of a person obligated to pay a commission is not valid or enforceable against a grantee, buyer, lessee, or transferee of the interest of the person obligated to pay the commission if the deed, lease, or instrument transferring the interest is recorded before the notice of the broker's lien is recorded.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scB/s62.028/c">
<num value="c">(c)</num>
<content>A purchase-money mortgage lien executed by the buyer of the commercial real estate interest has priority over a broker's lien claimed for the commission owed by the buyer against the commercial real estate interest purchased by the buyer.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scB/s62.028/d">
<num value="d">(d)</num>
<content>A mechanic's lien that is recorded after a broker's lien and that relates back to a date before the date the broker's lien is recorded has priority over the broker's lien.</content>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1571, Sec. 1, eff. Aug. 30, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c62/scB/s62.029">
<num value="62.029">Sec. 62.029.</num>
<heading>SUBORDINATION</heading>
<subsection identifier="/us/tx/pr/t5/c62/scB/s62.029/a">
<num value="a">(a)</num>
<chapeau>If the person obligated to pay the commission sells that person's commercial real estate interest, the broker's lien is subordinate to a recorded purchase-money first lien authorized by the buyer if the buyer:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c62/scB/s62.029/1">
<num value="1">(1)</num>
<content>executes and files with the county clerk of the county in which the broker's lien is filed a memorandum that evidences the buyer's acknowledgment of the existence of the broker's lien; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scB/s62.029/2">
<num value="2">(2)</num>
<content>sends the broker, by certified mail, return receipt requested, or registered mail, a copy of the recorded memorandum required by this subsection.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scB/s62.029/b">
<num value="b">(b)</num>
<chapeau>If the person obligated to pay the commission refinances a recorded first lien secured by that person's commercial real estate interest, the broker's lien is subordinate to the recorded refinanced first lien, regardless of the amount of the first lien after refinancing, if the person obligated to pay the commission:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c62/scB/s62.029/1">
<num value="1">(1)</num>
<content>executes and files with the county clerk of the county in which the broker's lien is filed a memorandum that evidences the person's acknowledgment of the existence of the broker's lien; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scB/s62.029/2">
<num value="2">(2)</num>
<content>sends the broker, by certified mail, return receipt requested, or registered mail, a copy of the recorded memorandum required by this subsection.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scB/s62.029/c">
<num value="c">(c)</num>
<chapeau>If the person obligated to pay the commission obtains an extension of credit secured by that person's commercial real estate interest, the broker's lien is subordinate to the lien securing the extension of credit if, according to the loan documents, the extension of credit is made only for the purpose of:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c62/scB/s62.029/1">
<num value="1">(1)</num>
<content>repairing or renovating the commercial real estate; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scB/s62.029/2">
<num value="2">(2)</num>
<content>completing construction or providing additional improvements on the commercial real estate.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scB/s62.029/d">
<num value="d">(d)</num>
<chapeau>If the person obligated to pay the commission furnishes a subordination agreement as provided by this section to be executed by the broker, the broker must:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c62/scB/s62.029/1">
<num value="1">(1)</num>
<content>execute and acknowledge the subordination agreement before a notary public; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scB/s62.029/2">
<num value="2">(2)</num>
<content>return the subordination agreement to the person not later than the seventh day after the date the broker receives the subordination agreement and other documents the broker reasonably requests in order to determine that the subordination agreement complies with this section.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1571, Sec. 1, eff. Aug. 30, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c62/scB/s62.030">
<num value="62.030">Sec. 62.030.</num>
<heading>MIXED-USE REAL ESTATE</heading>
<content>If real estate is zoned or restricted for more than one use, the broker's lien attaches only to the portions of the real estate that constitute commercial real estate.</content>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1571, Sec. 1, eff. Aug. 30, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c62/scB/s62.031">
<num value="62.031">Sec. 62.031.</num>
<heading>CHANGE IN USE OF REAL ESTATE</heading>
<subsection identifier="/us/tx/pr/t5/c62/scB/s62.031/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (b), any change in the use of the real estate does not affect a broker's lien if the notice of the lien was filed when the real estate was commercial real estate.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scB/s62.031/b">
<num value="b">(b)</num>
<chapeau>The broker's lien is extinguished if:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c62/scB/s62.031/1">
<num value="1">(1)</num>
<content>not later than the 360th day after the date on which the broker's commission is payable, the commercial real estate interest on which a broker claims a lien is zoned for single-family use or restricted for single-family use under recorded restrictive covenants; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scB/s62.031/2">
<num value="2">(2)</num>
<content>the zoning ordinances or restrictive covenants for single-family use are in effect until at least the second anniversary of the date the commission is payable.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1571, Sec. 1, eff. Aug. 30, 1999.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t5/c62/scC">
<num value="C">SUBCHAPTER C.</num>
<heading>TIME FOR FILING NOTICE OF LIEN</heading>
<section identifier="/us/tx/pr/t5/c62/scC/s62.041">
<num value="62.041">Sec. 62.041.</num>
<heading>TIME TO FILE</heading>
<subsection identifier="/us/tx/pr/t5/c62/scC/s62.041/a">
<num value="a">(a)</num>
<chapeau>If a broker has earned a commission under a commission agreement signed by a seller or the seller's authorized agent, a broker must record a notice of lien:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c62/scC/s62.041/1">
<num value="1">(1)</num>
<content>after the commission is earned; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scC/s62.041/2">
<num value="2">(2)</num>
<content>before the conveyance of the commercial real estate interest on which the broker is claiming a lien.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scC/s62.041/b">
<num value="b">(b)</num>
<chapeau>If a broker has earned a commission under a commission agreement signed by a prospective buyer or a prospective buyer's authorized agent, the broker must record a notice of lien:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c62/scC/s62.041/1">
<num value="1">(1)</num>
<content>after the buyer acquires legal title to the commercial real estate interest on which the broker is claiming a lien; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scC/s62.041/2">
<num value="2">(2)</num>
<content>before the buyer conveys the buyer's commercial real estate interest on which the broker is claiming a lien.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scC/s62.041/c">
<num value="c">(c)</num>
<chapeau>If the lien is based on a lease transaction, the broker must record a notice of lien after the commission is earned and before the earlier of:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c62/scC/s62.041/1">
<num value="1">(1)</num>
<content>the 91st day after the date the event for which the commission becomes payable occurs; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scC/s62.041/2">
<num value="2">(2)</num>
<content>the date the person obligated to pay the commission records a subsequent conveyance of that person's commercial real estate interest after executing the lease agreement relating to the lease transaction for which the lien is claimed.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scC/s62.041/d">
<num value="d">(d)</num>
<content>If a notice of lien is not filed within the time required by this section, the lien is void.</content>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1571, Sec. 1, eff. Aug. 30, 1999.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t5/c62/scD">
<num value="D">SUBCHAPTER D.</num>
<heading>ENFORCEMENT OF LIEN</heading>
<section identifier="/us/tx/pr/t5/c62/scD/s62.061">
<num value="62.061">Sec. 62.061.</num>
<heading>SUIT TO FORECLOSE LIEN</heading>
<subsection identifier="/us/tx/pr/t5/c62/scD/s62.061/a">
<num value="a">(a)</num>
<content>A broker may not bring a suit to foreclose a lien under this chapter unless the commission is earned and payable. A broker may bring a suit to foreclose a lien in any district court for the county in which the commercial real estate is located by filing a sworn complaint stating that the notice of lien has been recorded.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scD/s62.061/b">
<num value="b">(b)</num>
<chapeau>A complaint in a suit filed under this section must contain:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c62/scD/s62.061/1">
<num value="1">(1)</num>
<chapeau>a brief description of the commission agreement that is the basis for the lien, including:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c62/scD/s62.061/A">
<num value="A">(A)</num>
<content>a description of the disclosure of the broker's right to the lien contained in the commission agreement;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c62/scD/s62.061/B">
<num value="B">(B)</num>
<content>the date on which the commission agreement was executed;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c62/scD/s62.061/C">
<num value="C">(C)</num>
<content>the event for which a commission is considered to be earned; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c62/scD/s62.061/D">
<num value="D">(D)</num>
<content>the event for which a commission is considered to be payable;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scD/s62.061/2">
<num value="2">(2)</num>
<content>a description of the services performed by the broker;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scD/s62.061/3">
<num value="3">(3)</num>
<content>the amount of the payable commission that is unpaid;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scD/s62.061/4">
<num value="4">(4)</num>
<content>a description of the commercial real estate to which the lien attaches; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scD/s62.061/5">
<num value="5">(5)</num>
<content>other facts necessary for a full understanding of the rights of the parties.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scD/s62.061/c">
<num value="c">(c)</num>
<content>The broker must include as a defendant in a suit brought under this subchapter each person the broker believes to have an interest in the commercial real estate that is subordinate to or encumbered by the broker's lien.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scD/s62.061/d">
<num value="d">(d)</num>
<content>If the broker and a person against whom the broker claims a commission use alternative dispute resolution procedures to resolve a dispute concerning entitlement to the broker's commission, the broker's lien remains valid, and any suit to foreclose the lien is stayed until the alternative dispute resolution process is completed.</content>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1571, Sec. 1, eff. Aug. 30, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c62/scD/s62.062">
<num value="62.062">Sec. 62.062.</num>
<heading>STATUTE OF LIMITATIONS</heading>
<subsection identifier="/us/tx/pr/t5/c62/scD/s62.062/a">
<num value="a">(a)</num>
<content>Except as provided by this section, a broker claiming a lien under this chapter must bring a suit to foreclose the lien on or before the second anniversary of the date the notice of lien is recorded.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scD/s62.062/b">
<num value="b">(b)</num>
<chapeau>A broker claiming a lien to collect a deferred commission must bring a suit to foreclose the lien on or before the earlier of:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c62/scD/s62.062/1">
<num value="1">(1)</num>
<content>the second anniversary of the date on which the commission is payable; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scD/s62.062/2">
<num value="2">(2)</num>
<content>the 10th anniversary of the date the lien is recorded or the 10th anniversary of the date the broker records a subsequent notice of the lien as a renewal of the broker's right to the lien, whichever date is later.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scD/s62.062/c">
<num value="c">(c)</num>
<content>A renewal of a notice of lien must state that it is a renewal of the broker's lien and must be recorded after the ninth anniversary after the date the original notice of lien or last renewal notice is recorded and on or before the 10th anniversary of the date the original notice of lien or last renewal notice is recorded.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scD/s62.062/d">
<num value="d">(d)</num>
<content>A broker claiming a lien for a commission that is payable must bring a suit to foreclose the lien not later than the 30th day after the date the broker receives a written demand to bring a suit to foreclose the lien from the owner of the commercial real estate interest on which the lien is claimed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scD/s62.062/e">
<num value="e">(e)</num>
<content>If a suit to foreclose the lien is not brought within the period prescribed by this section, the lien is void.</content>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1571, Sec. 1, eff. Aug. 30, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c62/scD/s62.063">
<num value="62.063">Sec. 62.063.</num>
<heading>ASSESSMENT OF COSTS, FEES, AND INTEREST</heading>
<content>The prevailing party in a suit brought under this subchapter is entitled to court costs, reasonable attorney's fees, and prejudgment interest from the date the commission becomes payable or the date the damage accrues.</content>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1571, Sec. 1, eff. Aug. 30, 1999.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t5/c62/scE">
<num value="E">SUBCHAPTER E.</num>
<heading>RELEASE OF LIEN</heading>
<section identifier="/us/tx/pr/t5/c62/scE/s62.081">
<num value="62.081">Sec. 62.081.</num>
<heading>RELEASE OF LIEN</heading>
<subsection identifier="/us/tx/pr/t5/c62/scE/s62.081/a">
<num value="a">(a)</num>
<chapeau>Not later than the fifth day after the date a broker receives a written request from the owner of a commercial real estate interest on which a lien is claimed, the broker shall furnish to the owner a release of indebtedness and any lien claimed if:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c62/scE/s62.081/1">
<num value="1">(1)</num>
<content>the debt that is the basis for the lien is satisfied; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scE/s62.081/2">
<num value="2">(2)</num>
<content>the lien is discharged under Section 62.022, rendered void under Section 62.026 or 62.062, or extinguished under Section 62.031.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scE/s62.081/b">
<num value="b">(b)</num>
<content>When a condition occurs that would preclude the broker from receiving a commission under the terms of the commission agreement that is the basis for the lien, the broker shall, not later than the 10th day after the date the broker receives a written request from the owner of the commercial real estate interest on which the lien is claimed, furnish to the owner a release of indebtedness and any lien claimed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scE/s62.081/c">
<num value="c">(c)</num>
<chapeau>Not later than the 10th day after the date a broker receives a written request for the release of the broker's lien from the escrow agent responsible for closing the purchase and sale of a commercial real estate interest on which the lien is claimed, the broker shall furnish to the escrow agent a release of indebtedness and any lien claimed if:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c62/scE/s62.081/1">
<num value="1">(1)</num>
<content>the commercial real estate interest to which the lien attaches is subject to a contract for purchase and sale;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scE/s62.081/2">
<num value="2">(2)</num>
<content>the release of indebtedness and any lien claimed is conditioned on the closing of the transaction; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scE/s62.081/3">
<num value="3">(3)</num>
<content>the broker would otherwise be obligated to release the indebtedness and any lien claimed under Subsection (a) or (b) on the closing of the transaction.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scE/s62.081/d">
<num value="d">(d)</num>
<content>A release of lien must be in a form that permits the instrument to be filed of record.</content>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1571, Sec. 1, eff. Aug. 30, 1999.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t5/c62/scF">
<num value="F">SUBCHAPTER F.</num>
<heading>ESCROW OF DISPUTED AMOUNTS</heading>
<section identifier="/us/tx/pr/t5/c62/scF/s62.101">
<num value="62.101">Sec. 62.101.</num>
<heading>ESCROW ACCOUNT</heading>
<chapeau>If a claim for a lien under a recorded notice of lien is not paid or assumed at the closing of a sale, lease, or mortgage of the commercial real estate interest subject to the lien and would prevent the closing of the transaction or conveyance or if a claim for a lien under a recorded notice of lien does not survive the closing, any person named in the notice of lien as obligated to pay the commission shall, on the date of the closing:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c62/scF/s62.101/1">
<num value="1">(1)</num>
<content>establish an escrow account from any net proceeds of the transaction or conveyance in an amount equal to the amount sufficient to satisfy the lien plus 15 percent of that amount; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scF/s62.101/2">
<num value="2">(2)</num>
<content>file a bond to indemnify against the lien as provided by Subchapter G.</content>
</paragraph>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1571, Sec. 1, eff. Aug. 30, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c62/scF/s62.102">
<num value="62.102">Sec. 62.102.</num>
<heading>NAMED ESCROW AGENT</heading>
<content>If an escrow agent is named in the contract on which the transaction or conveyance is based, the escrow account shall be established with the named escrow agent.</content>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1571, Sec. 1, eff. Aug. 30, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c62/scF/s62.103">
<num value="62.103">Sec. 62.103.</num>
<heading>COSTS OF INTERPLEADER</heading>
<content>Related costs for any interpleader action may be deducted from the escrow account by the person maintaining the escrow account.</content>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1571, Sec. 1, eff. Aug. 30, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c62/scF/s62.104">
<num value="62.104">Sec. 62.104.</num>
<heading>REFUSAL TO ESTABLISH ESCROW ACCOUNT OR BOND</heading>
<subsection identifier="/us/tx/pr/t5/c62/scF/s62.104/a">
<num value="a">(a)</num>
<chapeau>A party may not refuse to close a transaction because of the requirement to establish an escrow account or bond as provided by Section 62.101 if:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c62/scF/s62.104/1">
<num value="1">(1)</num>
<content>the broker provides a copy of the notice of lien that complies with Sections 62.025 and 62.026;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scF/s62.104/2">
<num value="2">(2)</num>
<content>sufficient proceeds will result from the proposed transaction for the payment of the commission and costs of the interpleader; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scF/s62.104/3">
<num value="3">(3)</num>
<content>the broker executes and delivers a full release of the broker's lien in a recordable form.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scF/s62.104/b">
<num value="b">(b)</num>
<content>A prospective buyer of a commercial real estate interest may not refuse to close the purchase solely because a broker's lien is filed after the date a title commitment or abstract of title relating to the interest is issued if an escrow account is established as provided by this subchapter or a bond is filed as provided by Subchapter G.</content>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1571, Sec. 1, eff. Aug. 30, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c62/scF/s62.105">
<num value="62.105">Sec. 62.105.</num>
<heading>TERM OF ESCROW ACCOUNT</heading>
<chapeau>The amount held in escrow shall be held in escrow until:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c62/scF/s62.105/1">
<num value="1">(1)</num>
<content>the rights of the parties claiming the amount in escrow are determined by a written agreement of the parties, a court order, or an alternative dispute resolution process agreed to by the parties;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scF/s62.105/2">
<num value="2">(2)</num>
<content>the broker's lien is no longer enforceable; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scF/s62.105/3">
<num value="3">(3)</num>
<content>the funds are interpled into a district court for the county in which the commercial real estate is located.</content>
</paragraph>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1571, Sec. 1, eff. Aug. 30, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c62/scF/s62.106">
<num value="62.106">Sec. 62.106.</num>
<heading>EXTINGUISHMENT OF LIEN UPON ESCROW</heading>
<content>When the escrow account is established under this subchapter, the broker's lien against the commercial real estate is extinguished and becomes a lien on the proceeds in the escrow account.</content>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1571, Sec. 1, eff. Aug. 30, 1999.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t5/c62/scG">
<num value="G">SUBCHAPTER G.</num>
<heading>BOND TO INDEMNIFY AGAINST LIEN</heading>
<section identifier="/us/tx/pr/t5/c62/scG/s62.121">
<num value="62.121">Sec. 62.121.</num>
<heading>BOND</heading>
<subsection identifier="/us/tx/pr/t5/c62/scG/s62.121/a">
<num value="a">(a)</num>
<content>If a lien is fixed or is attempted to be fixed by a recorded instrument under this chapter, any person may file a bond to indemnify against the lien.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scG/s62.121/b">
<num value="b">(b)</num>
<content>The bond shall be filed with the county clerk of the county in which the commercial real estate subject to the lien is located.</content>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1571, Sec. 1, eff. Aug. 30, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c62/scG/s62.122">
<num value="62.122">Sec. 62.122.</num>
<heading>BOND REQUIREMENTS</heading>
<chapeau>The bond must:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c62/scG/s62.122/1">
<num value="1">(1)</num>
<content>describe the commercial real estate on which the lien is claimed;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scG/s62.122/2">
<num value="2">(2)</num>
<content>refer to the lien claimed in a manner sufficient to identify it;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scG/s62.122/3">
<num value="3">(3)</num>
<content>be in an amount that is double the amount of the lien referred to in the bond as of the date of execution of the bond by the surety, unless the total amount claimed in the lien exceeds $40,000, in which case the bond must be in an amount that is 1-1/2 times the amount of the lien;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scG/s62.122/4">
<num value="4">(4)</num>
<content>be payable to the party claiming the lien;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scG/s62.122/5">
<num value="5">(5)</num>
<chapeau>be executed by:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c62/scG/s62.122/A">
<num value="A">(A)</num>
<content>the party filing the bond as principal; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c62/scG/s62.122/B">
<num value="B">(B)</num>
<content>a corporate surety licensed by this state to execute the bond as surety;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scG/s62.122/6">
<num value="6">(6)</num>
<content>be conditioned substantially that the principal and sureties will pay the named obligees or their assignees the amount that the named obligees would have been entitled to recover if their claim had been proved to be valid and enforceable liens on the commercial real estate; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scG/s62.122/7">
<num value="7">(7)</num>
<content>identify the last known mailing address of the person claiming the lien.</content>
</paragraph>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1571, Sec. 1, eff. Aug. 30, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c62/scG/s62.123">
<num value="62.123">Sec. 62.123.</num>
<heading>NOTICE OF BOND</heading>
<subsection identifier="/us/tx/pr/t5/c62/scG/s62.123/a">
<num value="a">(a)</num>
<content>After the bond is filed, the county clerk shall issue notice of the bond to all named obligees.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scG/s62.123/b">
<num value="b">(b)</num>
<content>A copy of the bond must be attached to the notice.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scG/s62.123/c">
<num value="c">(c)</num>
<content>The notice must be served on each obligee by mailing a copy of the notice and the bond to the obligee by certified mail, return receipt requested, addressed to the claimant at the address stated in the bond for the obligee.</content>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1571, Sec. 1, eff. Aug. 30, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c62/scG/s62.124">
<num value="62.124">Sec. 62.124.</num>
<heading>RECORDING OF BOND AND NOTICE</heading>
<subsection identifier="/us/tx/pr/t5/c62/scG/s62.124/a">
<num value="a">(a)</num>
<content>The county clerk shall record the bond, the notice, and a certificate of mailing in the real property records.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scG/s62.124/b">
<num value="b">(b)</num>
<content>In acquiring an interest in or insuring title to the commercial real estate, a buyer, insurer of title, or lender may rely on and is absolutely protected by the record of the bond and the notice to the same extent as if the lien claimant had filed a release of lien in the real property records.</content>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1571, Sec. 1, eff. Aug. 30, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c62/scG/s62.125">
<num value="62.125">Sec. 62.125.</num>
<heading>ACTION ON BOND</heading>
<subsection identifier="/us/tx/pr/t5/c62/scG/s62.125/a">
<num value="a">(a)</num>
<content>A party making or holding a lien claim may not sue on the bond later than the last date on which a person may bring a suit to foreclose the lien under Section 62.062.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scG/s62.125/b">
<num value="b">(b)</num>
<content>The bond is not exhausted by one action against it. Each named obligee or assignee of an obligee may maintain a separate suit on the bond in any district court for the county in which the commercial real estate is located.</content>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1571, Sec. 1, eff. Aug. 30, 1999.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t5/c62/scH">
<num value="H">SUBCHAPTER H.</num>
<heading>REMEDIES</heading>
<section identifier="/us/tx/pr/t5/c62/scH/s62.141">
<num value="62.141">Sec. 62.141.</num>
<heading>OWNER'S OR TENANT'S REMEDIES</heading>
<subsection identifier="/us/tx/pr/t5/c62/scH/s62.141/a">
<num value="a">(a)</num>
<content>An owner or tenant may file suit against a broker under this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scH/s62.141/b">
<num value="b">(b)</num>
<chapeau>In an action filed under this section, the court shall discharge a broker's lien if the broker:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c62/scH/s62.141/1">
<num value="1">(1)</num>
<content>failed to mail a copy of the notice of lien within the period prescribed by Section 62.026;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scH/s62.141/2">
<num value="2">(2)</num>
<content>failed to execute, acknowledge, and return a subordination agreement within the period prescribed by Section 62.029(d);</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scH/s62.141/3">
<num value="3">(3)</num>
<content>failed to record the notice of lien within the period prescribed by Section 62.041; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scH/s62.141/4">
<num value="4">(4)</num>
<content>failed to release a lien within the period prescribed by Section 62.081.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scH/s62.141/c">
<num value="c">(c)</num>
<chapeau>A broker is liable to an owner or tenant for damages as provided by Subsection (d) if:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c62/scH/s62.141/1">
<num value="1">(1)</num>
<content>the broker recorded a lien on the commercial real estate interest of the owner or tenant;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scH/s62.141/2">
<num value="2">(2)</num>
<chapeau>the broker failed to:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c62/scH/s62.141/A">
<num value="A">(A)</num>
<content>execute, acknowledge, and return a subordination agreement within the period prescribed by Section 62.029(d); or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c62/scH/s62.141/B">
<num value="B">(B)</num>
<content>release a lien within the period prescribed by Section 62.081;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scH/s62.141/3">
<num value="3">(3)</num>
<content>the owner, tenant, or escrow agent mailed to the broker by certified mail, return receipt requested, a copy of this section and a notice requesting the broker to execute, acknowledge, and return the subordination agreement or release the lien not later than the 10th day after the date the broker receives the notice; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scH/s62.141/4">
<num value="4">(4)</num>
<content>the broker failed to comply with the owner's, tenant's, or escrow agent's written notice within the prescribed period.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scH/s62.141/d">
<num value="d">(d)</num>
<chapeau>If the court finds that a broker is liable to an owner or tenant under Subsection (c), the court may award the owner or tenant:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c62/scH/s62.141/1">
<num value="1">(1)</num>
<content>actual damages, including attorney's fees and court costs, incurred by the owner or tenant that are proximately caused by the broker's failure to execute, acknowledge, and return the subordination agreement or release the lien; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scH/s62.141/2">
<num value="2">(2)</num>
<content>a civil penalty in an amount not to exceed three times the amount of the claimed commission if the court finds that the broker acted with gross negligence or acted in bad faith in violation of Chapter 1101, Occupations Code.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scH/s62.141/e">
<num value="e">(e)</num>
<chapeau>This section does not prevent:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c62/scH/s62.141/1">
<num value="1">(1)</num>
<content>a person from filing a complaint with the Texas Real Estate Commission against a broker who fails to comply with this chapter; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scH/s62.141/2">
<num value="2">(2)</num>
<content>the Texas Real Estate Commission at any time from investigating or initiating a disciplinary proceeding against a broker who fails to comply with this chapter.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1571, Sec. 1, eff. Aug. 30, 1999. Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 14A.804, eff. Sept. 1, 2003.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c62/scH/s62.142">
<num value="62.142">Sec. 62.142.</num>
<heading>BROKER'S REMEDIES</heading>
<subsection identifier="/us/tx/pr/t5/c62/scH/s62.142/a">
<num value="a">(a)</num>
<content>A broker may file suit against an owner or tenant to enforce a commission agreement.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c62/scH/s62.142/b">
<num value="b">(b)</num>
<chapeau>If the court finds that the broker waived the right to file a lien under Section 62.022 and that the owner or tenant violated the commission agreement, the court may award to the broker:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c62/scH/s62.142/1">
<num value="1">(1)</num>
<content>actual damages, including attorney's fees and court costs, that are proximately caused by the owner's or tenant's failure to comply with the commission agreement; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c62/scH/s62.142/2">
<num value="2">(2)</num>
<content>a civil penalty in an amount not to exceed three times the amount of the claimed commission if the court finds that the owner or tenant acted with gross negligence or in bad faith.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1571, Sec. 1, eff. Aug. 30, 1999.</sourceCredit>
</section>
</subchapter>
</chapter>
<chapter identifier="/us/tx/pr/t5/c63">
<num value="63">CHAPTER 63.</num>
<heading>MANUFACTURED HOME LIEN</heading>
<section identifier="/us/tx/pr/t5/c63/s63.001">
<num value="63.001">Sec. 63.001.</num>
<heading>MANUFACTURED HOMES</heading>
<content>In this chapter, "manufactured home" has the meaning assigned by Chapter 1201, Occupations Code.</content>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 742, Sec. 1, eff. Sept. 1, 1999. Renumbered from Sec. 62.001 by Acts 2001, 77th Leg., ch. 1420, Sec. 21.001(96), eff. Sept. 1, 2001. Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 14A.805, eff. Sept. 1, 2003.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c63/s63.002">
<num value="63.002">Sec. 63.002.</num>
<heading>APPLICABILITY</heading>
<chapeau>This chapter applies only to a lien on a manufactured home if the loan or credit advance documents state or indicate that the lien:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c63/s63.002/1">
<num value="1">(1)</num>
<content>is or is in the nature of a vendor's lien;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c63/s63.002/2">
<num value="2">(2)</num>
<content>is or is in the nature of a purchase money lien; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c63/s63.002/3">
<num value="3">(3)</num>
<content>is or is in the nature of a retail installment lien.</content>
</paragraph>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 742, Sec. 1, eff. Sept. 1, 1999. Renumbered from Sec. 62.002 by Acts 2001, 77th Leg., ch. 1420, Sec. 21.001(96), eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c63/s63.003">
<num value="63.003">Sec. 63.003.</num>
<heading>CONVERSION OF LIEN FROM PERSONAL PROPERTY LIEN TO REAL PROPERTY LIEN</heading>
<chapeau>When the manufactured home converts to real property as provided by Section 2.001(b), the lien on the property:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c63/s63.003/1">
<num value="1">(1)</num>
<content>is converted to a purchase money lien on real property by operation of law; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c63/s63.003/2">
<num value="2">(2)</num>
<content>exists independently of any existing lien on the real property to which the home is permanently attached.</content>
</paragraph>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 742, Sec. 1, eff. Sept. 1, 1999. Renumbered from Sec. 62.003 by Acts 2001, 77th Leg., ch. 1420, Sec. 21.001(96), eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c63/s63.004">
<num value="63.004">Sec. 63.004.</num>
<heading>REFINANCING OF LIEN</heading>
<subsection identifier="/us/tx/pr/t5/c63/s63.004/a">
<num value="a">(a)</num>
<content>A person who provides funds to refinance a lien secured by a manufactured home is subrogated to the lien position of the previous lienholder.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c63/s63.004/b">
<num value="b">(b)</num>
<content>If the holder of a lien secured by a manufactured home transfers loan or credit advance documents to a lender refinancing the lien, that lender and a title insurance company, title insurance agent or direct operation, or attorney to whom the loan or credit advance documents are delivered holds the loan or credit advance documents in trust for that lienholder. In this subsection, "direct operation" has the meaning assigned by Section 2501.003, Insurance Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c63/s63.004/c">
<num value="c">(c)</num>
<content>A lien that is converted to a purchase money lien on real property under Section 63.003, or a lien for the debt for new improvements thereon under Section 63.005, may be refinanced with another lien on the real property to which the manufactured home is permanently attached as provided by Section 2.001.</content>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 742, Sec. 1, eff. Sept. 1, 1999. Renumbered from Sec. 62.004 and amended by Acts 2001, 77th Leg., ch. 1420, Sec. 21.001(96) and Sec. 21.002(16), eff. Sept. 1, 2001. Amended by Acts 2001, 77th Leg., ch. 1055, Sec. 6, eff. Jan. 1, 2002; Acts 2003, 78th Leg., ch. 1275, Sec. 3(38), eff. Sept. 1, 2003.
Amended by:
Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 11.159, eff. September 1, 2005.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c63/s63.005">
<num value="63.005">Sec. 63.005.</num>
<heading>CONVERSION OF LIEN FROM A PERSONAL PROPERTY LIEN TO A REAL PROPERTY LIEN FOR THE DEBT FOR THE NEW IMPROVEMENTS THEREON</heading>
<subsection identifier="/us/tx/pr/t5/c63/s63.005/a">
<num value="a">(a)</num>
<content>A manufactured home becomes a new improvement to the homestead of a family or of a single adult person upon the filing of the appropriate statement of ownership as provided in Chapter 1201, Occupations Code. As such, if the debt for the manufactured home was contracted for in writing, that debt is considered to be for work and materials used in constructing new improvements thereon and thus constitutes a valid lien on the homestead when the appropriate statement of ownership is filed in the Official Public Records of Real Property in the county in which the land is located.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c63/s63.005/b">
<num value="b">(b)</num>
<content>When the manufactured home converts to real property as provided by Section 2.001 of this code, the lien on the property exists independently of any existing lien on the real property to which the home is permanently attached.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 1055, Sec. 7, eff. Jan. 1, 2002. Renumbered from Property Code Sec. 62.005 by Acts 2003, 78th Leg., ch. 1275, Sec. 2(118), eff. Sept. 1, 2003. Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 14A.806, eff. Sept. 1, 2003.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 408 (H.B. 2019), Sec. 78, eff. September 1, 2017.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t5/c64">
<num value="64">CHAPTER 64.</num>
<heading>ASSIGNMENT OF RENTS TO LIENHOLDER</heading>
<subchapter identifier="/us/tx/pr/t5/c64/scA">
<num value="A">SUBCHAPTER A.</num>
<heading>GENERAL PROVISIONS</heading>
<section identifier="/us/tx/pr/t5/c64/scA/s64.001">
<num value="64.001">Sec. 64.001.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c64/scA/s64.001/1">
<num value="1">(1)</num>
<content>"Assignee" means a person entitled to enforce a security instrument.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scA/s64.001/2">
<num value="2">(2)</num>
<content>"Assignment of rents" means a transfer of an interest in rents in connection with an obligation secured by real property from which the rents arise. The term does not include a contract for a charge authorized by Section 306.101, Finance Code, or a true sale of rents.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scA/s64.001/3">
<num value="3">(3)</num>
<content>"Assignor" means a person who makes a security instrument that creates an assignment of rents arising from real property or that person's successor in interest with respect to the real property.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scA/s64.001/4">
<num value="4">(4)</num>
<content>"Cash proceeds" means proceeds that are money, checks, deposit accounts, or the like.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scA/s64.001/5">
<num value="5">(5)</num>
<content>"Day" means a calendar day.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scA/s64.001/6">
<num value="6">(6)</num>
<content>"Deposit account" means a demand, time, savings, passbook, escrow, or similar account maintained with a bank, savings bank, savings and loan association, credit union, trust company, or other person.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scA/s64.001/7">
<num value="7">(7)</num>
<content>"Document" means information that is inscribed on a tangible medium or that is stored on an electronic or other medium and is retrievable in perceivable form.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scA/s64.001/8">
<num value="8">(8)</num>
<content>"Proceeds" means personal property that is received, collected, or distributed on account of an obligation to pay rents.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scA/s64.001/9">
<num value="9">(9)</num>
<content>"Rents" means consideration payable for the right to possess or occupy, or for possessing or occupying, real property, consideration payable to an assignor under a policy of rental interruption insurance covering real property, claims arising out of a default in the payment of consideration payable for the right to possess or occupy real property, consideration payable to terminate an agreement to possess or occupy real property, consideration payable to an assignor for payment or reimbursement of expenses incurred in owning, operating, and maintaining, or constructing or installing improvements on, real property, or any other consideration payable under an agreement relating to the real property that constitutes rents under a law of this state other than this chapter. The term does not include consideration payable under an oil and gas lease, mineral lease, or other conveyance of a mineral estate.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scA/s64.001/10">
<num value="10">(10)</num>
<content>"Secured obligation" means an obligation secured by an assignment of rents.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scA/s64.001/11">
<num value="11">(11)</num>
<chapeau>"Security instrument" means:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c64/scA/s64.001/A">
<num value="A">(A)</num>
<content>a security instrument, as that term is defined by Section 51.0001; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c64/scA/s64.001/B">
<num value="B">(B)</num>
<content>an agreement containing an assignment of rents.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scA/s64.001/12">
<num value="12">(12)</num>
<content>"Security interest" means an interest in property that arises by agreement and secures an obligation.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scA/s64.001/13">
<num value="13">(13)</num>
<content>"Sign" includes to sign by an electronic signature, as defined by Section 15.002.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scA/s64.001/14">
<num value="14">(14)</num>
<content>"Tenant" means a person who has an obligation to pay for the right to possess or occupy, or for possessing or occupying, real property.</content>
</paragraph>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 636 (S.B. 889), Sec. 2, eff. June 17, 2011.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 453 (S.B. 848), Sec. 1, eff. June 14, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c64/scA/s64.002">
<num value="64.002">Sec. 64.002.</num>
<heading>MANNER OF GIVING NOTICE</heading>
<subsection identifier="/us/tx/pr/t5/c64/scA/s64.002/a">
<num value="a">(a)</num>
<chapeau>A person may give notice under this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c64/scA/s64.002/1">
<num value="1">(1)</num>
<content>by transmitting the notice in the manner described by Section 51.002(e);</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scA/s64.002/2">
<num value="2">(2)</num>
<content>by depositing the notice with the United States Postal Service or a commercially reasonable delivery service, properly addressed to the intended recipient's address in accordance with this section, with first class postage or other cost of delivery paid; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scA/s64.002/3">
<num value="3">(3)</num>
<content>by transmitting the notice to the intended recipient by any means agreed to by the intended recipient.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c64/scA/s64.002/b">
<num value="b">(b)</num>
<chapeau>The following rules determine the address for notices under Subsection (a):</chapeau>
<paragraph identifier="/us/tx/pr/t5/c64/scA/s64.002/1">
<num value="1">(1)</num>
<content>the address for notices to an assignee is the address of the assignee agreed in the security instrument or other document between the parties as the address for notices to the assignee, unless a more recent address for notices has been given by the assignee to the person giving the notice in accordance with Subsection (a) or as agreed in a security instrument or other document signed by the assignee;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scA/s64.002/2">
<num value="2">(2)</num>
<content>the address for notices to an assignor is the address of the assignor agreed in the security instrument or other document between the parties as the address for notices to the assignor or as provided in Section 51.002, unless a more recent address for notices has been given by the assignor to the person giving the notice in accordance with Subsection (a) or as agreed in a security instrument or other document signed by the assignor; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scA/s64.002/3">
<num value="3">(3)</num>
<chapeau>for notices to a tenant:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c64/scA/s64.002/A">
<num value="A">(A)</num>
<content>if there is an address for notices to the tenant in a signed document between the tenant and the person giving the notice, the person giving the notice shall use that address unless a more recent address for notices has been given by the tenant in accordance with that document;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c64/scA/s64.002/B">
<num value="B">(B)</num>
<content>if an address for notices described by Paragraph (A) does not exist, but the tenant's agreement with the assignor has an address for notices to the tenant and the person giving the notice has received a copy of that document or has actual knowledge of the address for notices specified in that document, the person giving the notice shall use that address; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c64/scA/s64.002/C">
<num value="C">(C)</num>
<content>if an address for notices described by Paragraphs (A) and (B) does not exist, the person giving the notice shall use the tenant's address at the real property covered by the security instrument.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c64/scA/s64.002/c">
<num value="c">(c)</num>
<chapeau>Notice given in accordance with this chapter is deemed received on the earliest of:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c64/scA/s64.002/1">
<num value="1">(1)</num>
<content>the date the notice is received by the person to whom the notice is given;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scA/s64.002/2">
<num value="2">(2)</num>
<content>the fifth day after the date the notice is given in accordance with Subsection (a)(2); or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scA/s64.002/3">
<num value="3">(3)</num>
<content>the date on which notice is deemed received in accordance with an agreement made by the person to whom the notice is given.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c64/scA/s64.002/d">
<num value="d">(d)</num>
<content>A notice under this chapter must be a document.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 636 (S.B. 889), Sec. 2, eff. June 17, 2011.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 453 (S.B. 848), Sec. 2, eff. June 14, 2013.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t5/c64/scB">
<num value="B">SUBCHAPTER B.</num>
<heading>ASSIGNMENT OF RENTS</heading>
<section identifier="/us/tx/pr/t5/c64/scB/s64.051">
<num value="64.051">Sec. 64.051.</num>
<heading>SECURITY INSTRUMENT CREATES ASSIGNMENT OF RENTS; ASSIGNMENT OF RENTS CREATES SECURITY INTEREST</heading>
<subsection identifier="/us/tx/pr/t5/c64/scB/s64.051/a">
<num value="a">(a)</num>
<content>An enforceable security instrument creates an assignment of rents arising from real property described in that security instrument, unless the security instrument provides otherwise or the security instrument is governed by Section 50(a)(6), (7), or (8), Article XVI, Texas Constitution.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c64/scB/s64.051/b">
<num value="b">(b)</num>
<content>An assignment of rents creates a presently effective security interest in all accrued and unaccrued rents arising from the real property described in the security instrument creating the assignment, regardless of whether the security instrument is in the form of an absolute assignment, an absolute assignment conditioned on default or other event, an assignment as additional security, or any other form. The security interest in rents is separate and distinct from any security interest held by the assignee in the real property from which the rents arise.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c64/scB/s64.051/c">
<num value="c">(c)</num>
<content>An assignment of rents does not reduce the secured obligation except to the extent the assignee collects rents and applies, or is obligated to apply, the collected rents to payment of the secured obligation.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 636 (S.B. 889), Sec. 2, eff. June 17, 2011.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 453 (S.B. 848), Sec. 3, eff. June 14, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c64/scB/s64.052">
<num value="64.052">Sec. 64.052.</num>
<heading>RECORDATION AND PERFECTION OF SECURITY INTEREST IN RENTS; PRIORITY OF INTERESTS IN RENTS</heading>
<subsection identifier="/us/tx/pr/t5/c64/scB/s64.052/a">
<num value="a">(a)</num>
<content>A security instrument creating an assignment of rents may be recorded in the county in which any part of the real property is located in accordance with this code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c64/scB/s64.052/b">
<num value="b">(b)</num>
<content>On recordation of a security instrument creating an assignment of rents, the security interest in the rents is perfected. This subsection prevails over a conflicting provision in the security instrument creating the assignment of rents or a law of this state other than this chapter that prohibits or defers enforcement of the security interest until the occurrence of a subsequent event, including a subsequent default of the assignor, the assignee's obtaining possession of the real property, or the appointment of a receiver.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c64/scB/s64.052/c">
<num value="c">(c)</num>
<chapeau>Except as provided by Subsection (d), a perfected security interest in rents has priority over the rights of a person who, after the security interest is perfected, acquires:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c64/scB/s64.052/1">
<num value="1">(1)</num>
<content>a lien on or other security interest in the rents or the real property from which the rents arise; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scB/s64.052/2">
<num value="2">(2)</num>
<content>an interest in the rents or the real property from which the rents arise.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c64/scB/s64.052/d">
<num value="d">(d)</num>
<content>An assignee with a perfected security interest in rents has the same priority over the rights of a person described by Subsection (c) with respect to future advances as the assignee has with respect to the assignee's security interest in the real property from which the rents arise.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 636 (S.B. 889), Sec. 2, eff. June 17, 2011.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 453 (S.B. 848), Sec. 4, eff. June 14, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c64/scB/s64.053">
<num value="64.053">Sec. 64.053.</num>
<heading>ENFORCEMENT OF SECURITY INTEREST IN RENTS GENERALLY</heading>
<subsection identifier="/us/tx/pr/t5/c64/scB/s64.053/a">
<num value="a">(a)</num>
<content>An assignee may enforce an assignment of rents using one or more of the methods provided by Section 64.054 or 64.055 or any other method sufficient to enforce an assignment of rents under a law of this state other than this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c64/scB/s64.053/b">
<num value="b">(b)</num>
<chapeau>On and after the date on which an assignee begins to enforce an assignment of rents, the assignee is entitled to collect all rents that:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c64/scB/s64.053/1">
<num value="1">(1)</num>
<content>have accrued but remain unpaid on that date; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scB/s64.053/2">
<num value="2">(2)</num>
<content>accrue on or after that date.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 636 (S.B. 889), Sec. 2, eff. June 17, 2011.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 453 (S.B. 848), Sec. 5, eff. June 14, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c64/scB/s64.054">
<num value="64.054">Sec. 64.054.</num>
<heading>ENFORCEMENT BY NOTICE TO ASSIGNOR</heading>
<subsection identifier="/us/tx/pr/t5/c64/scB/s64.054/a">
<num value="a">(a)</num>
<content>After default, or as otherwise agreed by the assignor, the assignee may give the assignor a notice demanding that the assignor pay the assignee the proceeds of any rents that the assignee is entitled to collect under Section 64.053.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c64/scB/s64.054/b">
<num value="b">(b)</num>
<content>For the purposes of Section 64.053, the assignee begins enforcement under this section on the date on which the assignee gives notice to the assignor in accordance with Section 64.002.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c64/scB/s64.054/c">
<num value="c">(c)</num>
<content>An assignee may not enforce an assignment of rents under this section if, on the date the security instrument was signed and the date of prospective enforcement, the real property constitutes the assignor's homestead on which is located a one-family to four-family dwelling.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 636 (S.B. 889), Sec. 2, eff. June 17, 2011.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 453 (S.B. 848), Sec. 6, eff. June 14, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c64/scB/s64.055">
<num value="64.055">Sec. 64.055.</num>
<heading>ENFORCEMENT BY NOTICE TO TENANT</heading>
<subsection identifier="/us/tx/pr/t5/c64/scB/s64.055/a">
<num value="a">(a)</num>
<content>After default, or as otherwise agreed by the assignor, the assignee may give to a tenant of real property that is subject to an assignment of rents a notice demanding that the tenant pay to the assignee all unpaid accrued rents and all unaccrued rents as they accrue. The assignee shall give a copy of the notice to the assignor in accordance with Section 64.002. The notice must substantially comply with the form prescribed by Section 64.056 and be signed by the assignee or the assignee's authorized agent or representative.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c64/scB/s64.055/b">
<num value="b">(b)</num>
<content>For the purposes of Section 64.053(b), the assignee begins enforcement under this section on the date on which the tenant receives a notice complying with Subsection (a).</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c64/scB/s64.055/c">
<num value="c">(c)</num>
<chapeau>Subject to Subsection (d) and any other claim or defense that a tenant has under a law of this state other than this chapter, after a tenant receives a notice under Subsection (a):</chapeau>
<paragraph identifier="/us/tx/pr/t5/c64/scB/s64.055/1">
<num value="1">(1)</num>
<content>the tenant is obligated to pay to the assignee all unpaid accrued rents and all unaccrued rents as they accrue, unless the tenant has previously received a notice under this section from another assignee of rents given by that assignee in accordance with this section and the other assignee has not canceled that notice;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scB/s64.055/2">
<num value="2">(2)</num>
<content>except as otherwise agreed in a document signed by the tenant, the tenant is not obligated to pay to an assignee rent that was prepaid to the assignor before the tenant received the notice under Subsection (a);</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scB/s64.055/3">
<num value="3">(3)</num>
<content>unless the tenant occupies the premises as the tenant's primary residence, the tenant is not discharged from the obligation to pay rents to the assignee if the tenant pays rents to the assignor;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scB/s64.055/4">
<num value="4">(4)</num>
<content>the tenant's payment to the assignee of rents then due satisfies the tenant's obligation under the tenant's agreement with the assignor to the extent of the payment made; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scB/s64.055/5">
<num value="5">(5)</num>
<chapeau>the tenant's obligation to pay rents to the assignee continues until the earliest date on which the tenant receives:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c64/scB/s64.055/A">
<num value="A">(A)</num>
<content>a court order directing the tenant to pay the rents in a different manner;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c64/scB/s64.055/B">
<num value="B">(B)</num>
<content>a signed notice that a perfected security instrument that has priority over the assignee's security interest has been foreclosed; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c64/scB/s64.055/C">
<num value="C">(C)</num>
<content>a signed document from the assignee canceling the assignee's notice.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c64/scB/s64.055/d">
<num value="d">(d)</num>
<chapeau>Except as otherwise agreed in a document signed by the tenant, a tenant who has received a notice under Subsection (a) is not in default for nonpayment of rents that accrue during the 30 days after the date the tenant receives the notice until the earlier of:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c64/scB/s64.055/1">
<num value="1">(1)</num>
<content>the 10th day after the date the next regularly scheduled rental payment would be due; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scB/s64.055/2">
<num value="2">(2)</num>
<content>the 30th day after the date the tenant receives the notice.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c64/scB/s64.055/e">
<num value="e">(e)</num>
<content>On receiving a notice from another assignee who has priority under Section 64.052(c) that the assignee with priority has conducted a foreclosure sale of the real property from which the rents arise or is enforcing the interest in rents of the assignee with priority by notice to the tenant, an assignee that has given a notice to a tenant under Subsection (a) shall immediately give another notice to the tenant canceling the earlier notice.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 636 (S.B. 889), Sec. 2, eff. June 17, 2011.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 453 (S.B. 848), Sec. 7, eff. June 14, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c64/scB/s64.056">
<num value="64.056">Sec. 64.056.</num>
<heading>FORM OF NOTICE TO TENANT</heading>
<chapeau>The following form of notice, when properly completed, satisfies the requirements of Section 64.055(a):</chapeau>
<continuation>NOTICE TO PAY RENTS TO PERSON OTHER THAN LANDLORD</continuation>
<continuation>Tenant: [Name of tenant]</continuation>
<continuation>Property Occupied by Tenant (the "Premises"): [Address]</continuation>
<continuation>Landlord: [Name of landlord]</continuation>
<continuation>Assignee: [Name of assignee]</continuation>
<continuation>Address of Assignee and Telephone Number of Contact Person: [Address of assignee] [Telephone number of person to contact]</continuation>
<continuation>1. Assignee is entitled to collect rents on the Premises under [Name of Document] (the "Assignment of Rents") dated [Date of Assignment of Rents], and recorded at [Recording Data] of [Name of County] County, Texas. You may obtain additional information about the Assignment of Rents and the Assignee's right to enforce it at the address of the Assignee.</continuation>
<continuation>2. A default exists under the Assignment of Rents or related documents between the Landlord and the Assignee. The Assignee is entitled to collect rents from the Premises.</continuation>
<continuation>3. This notice affects your rights and obligations under the agreement under which you occupy the Premises (your "Lease Agreement"). Unless you have otherwise agreed in a document signed by you, if your next scheduled rental payment is due within 30 days after you receive this notice, you will not be in default under your Lease Agreement for nonpayment of that rental payment until the 10th day after the due date of that payment or the 30th day following the date you receive this notice, whichever occurs first.</continuation>
<continuation>4. You may consult a lawyer at your expense concerning your rights and obligations under your Lease Agreement and the effect of this notice.</continuation>
<continuation>5. You must pay to the Assignee at the Address of the Assignee all rents under your Lease Agreement that are due and payable on the date you receive this notice and all rents accruing under your Lease Agreement after you receive this notice.</continuation>
<continuation>6. If you pay rents to the Assignee after receiving this notice, the payment will satisfy your rental obligation to the extent of that payment.</continuation>
<continuation>7. If you pay any rents to the Landlord after receiving this notice, your payment to the Landlord will not discharge your rental obligation, and the Assignee may hold you liable for that rental obligation notwithstanding your payment to the Landlord unless you occupy the Premises as your primary residence.</continuation>
<continuation>8. If you have previously received a notice from another person who also holds an assignment of the rents due under your Lease Agreement, you should continue paying your rents to the person that sent that notice until that person cancels that notice. Once that notice is canceled, you must begin paying rents to the Assignee in accordance with this notice.</continuation>
<continuation>Name of assignee: __________</continuation>
<continuation>By: [Officer/authorized agent of assignee]</continuation>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 636 (S.B. 889), Sec. 2, eff. June 17, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c64/scB/s64.057">
<num value="64.057">Sec. 64.057.</num>
<heading>EFFECT OF ENFORCEMENT</heading>
<chapeau>The enforcement of an assignment of rents by a method provided by Section 64.054 or 64.055, the application of proceeds by the assignee under Section 64.059 after enforcement, the payment of expenses under Section 64.058, or an action under Section 64.060 does not:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c64/scB/s64.057/1">
<num value="1">(1)</num>
<content>make the assignee a mortgagee in possession of the real property from which the rents arise;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scB/s64.057/2">
<num value="2">(2)</num>
<content>make the assignee an agent of the assignor;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scB/s64.057/3">
<num value="3">(3)</num>
<content>constitute an election of remedies that precludes a later action to enforce the secured obligation;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scB/s64.057/4">
<num value="4">(4)</num>
<content>make the secured obligation unenforceable;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scB/s64.057/5">
<num value="5">(5)</num>
<content>limit any right available to the assignee with respect to the secured obligation; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scB/s64.057/6">
<num value="6">(6)</num>
<content>bar a deficiency judgment under any law of this state governing or relating to deficiency judgments following the enforcement of any encumbrance, lien, or security interest.</content>
</paragraph>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 636 (S.B. 889), Sec. 2, eff. June 17, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c64/scB/s64.058">
<num value="64.058">Sec. 64.058.</num>
<heading>APPLICATION OF PROCEEDS GENERALLY</heading>
<chapeau>Unless otherwise agreed, an assignee who collects rents under this chapter or collects on a judgment in an action under Section 64.060 shall apply the sums collected in the following order to:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c64/scB/s64.058/1">
<num value="1">(1)</num>
<content>reimbursement of the assignee's expenses of enforcing the assignee's assignment of rents, including, to the extent provided for by agreement by the assignor and not prohibited by a law of this state other than this chapter, reasonable attorney's fees and costs incurred by the assignee;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scB/s64.058/2">
<num value="2">(2)</num>
<content>reimbursement of any expenses incurred by the assignee to protect or maintain the real property that is subject to the assignment of rents;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scB/s64.058/3">
<num value="3">(3)</num>
<content>payment of the secured obligation;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scB/s64.058/4">
<num value="4">(4)</num>
<content>payment of any obligation secured by a subordinate security interest or other lien on the rents if, before distribution of the proceeds, the assignee receives a signed notice from the holder of the interest or lien demanding payment of the proceeds; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scB/s64.058/5">
<num value="5">(5)</num>
<content>payment of any excess proceeds to the assignor.</content>
</paragraph>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 636 (S.B. 889), Sec. 2, eff. June 17, 2011.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 453 (S.B. 848), Sec. 8, eff. June 14, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c64/scB/s64.059">
<num value="64.059">Sec. 64.059.</num>
<heading>APPLICATION OF PROCEEDS TO EXPENSES OF PROTECTING REAL PROPERTY; CLAIMS AND DEFENSES OF TENANT</heading>
<subsection identifier="/us/tx/pr/t5/c64/scB/s64.059/a">
<num value="a">(a)</num>
<content>Unless otherwise agreed by the assignee, an assignee that collects rents following enforcement under Section 64.054 or 64.055 is not obligated to apply the collected rents to the payment of expenses of protecting or maintaining the real property subject to an assignment of rents.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c64/scB/s64.059/b">
<num value="b">(b)</num>
<content>Unless otherwise agreed by a tenant, the right of the assignee to collect rents from the tenant is subject to the terms of any agreement between the assignor and tenant or any claim or defense of the tenant arising from the assignor's nonperformance of that agreement.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 636 (S.B. 889), Sec. 2, eff. June 17, 2011.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 453 (S.B. 848), Sec. 9, eff. June 14, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c64/scB/s64.060">
<num value="64.060">Sec. 64.060.</num>
<heading>TURNOVER OF RENTS; LIABILITY OF ASSIGNOR</heading>
<subsection identifier="/us/tx/pr/t5/c64/scB/s64.060/a">
<num value="a">(a)</num>
<content>If an assignor collects rents that the assignee is entitled to collect under this chapter, the assignor shall turn over the proceeds to the assignee not later than the 30th day after the date the assignor receives notice from the assignee under Section 64.054 or within such other period agreed by the assignor and assignee in a security instrument or other document, less any amount representing payment of expenses agreed in that security instrument or other document.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c64/scB/s64.060/b">
<num value="b">(b)</num>
<chapeau>In addition to any other remedy available to the assignee under a law of this state other than this chapter, if an assignor does not turn over proceeds to the assignee as required by Subsection (a), the assignee may recover from the assignor in a civil action:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c64/scB/s64.060/1">
<num value="1">(1)</num>
<content>the proceeds, or an amount equal to the proceeds, that the assignor was obligated to turn over under Subsection (a); and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scB/s64.060/2">
<num value="2">(2)</num>
<content>reasonable attorney's fees and costs incurred by the assignee to the extent provided for by an agreement between the assignor and assignee and not prohibited by a law of this state other than this chapter.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c64/scB/s64.060/c">
<num value="c">(c)</num>
<content>The assignee may maintain an action under Subsection (b) with or without taking action to foreclose any security interest that the assignee has in the real property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c64/scB/s64.060/d">
<num value="d">(d)</num>
<content>Unless otherwise agreed, if an assignee who has a security interest in rents that is subordinate to the security interest of another assignee under Section 64.052 enforces the subordinate assignee's interest under Section 64.054 or 64.055 before the assignee with priority enforces the interests in rents of the assignee with priority, the subordinate assignee is not obligated to turn over any proceeds that the subordinate assignee collects before the subordinate assignee receives a signed notice from the assignee with priority informing the subordinate assignee that the assignee with priority is enforcing the interest in rents of the assignee with priority. The subordinate assignee shall turn over to the assignee with priority any proceeds that the subordinate assignee collects after the subordinate assignee receives the notice from the assignee with priority that the assignee with priority is enforcing the interest in rents of the assignee with priority not later than the 30th day after the date the subordinate assignee receives the notice or as otherwise agreed between the assignee with priority and the subordinate assignee. Any proceeds subsequently collected by the subordinate assignee shall be turned over to the assignee with priority not later than the 10th day after the date the proceeds are collected or as otherwise agreed between the assignee with priority and the subordinate assignee.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 636 (S.B. 889), Sec. 2, eff. June 17, 2011.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 453 (S.B. 848), Sec. 10, eff. June 14, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c64/scB/s64.061">
<num value="64.061">Sec. 64.061.</num>
<heading>ATTACHMENT, PERFECTION, AND PRIORITY OF ASSIGNEE'S SECURITY INTEREST IN PROCEEDS</heading>
<subsection identifier="/us/tx/pr/t5/c64/scB/s64.061/a">
<num value="a">(a)</num>
<content>An assignee's security interest in rents attaches to identifiable proceeds.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c64/scB/s64.061/b">
<num value="b">(b)</num>
<content>If an assignee's security interest in rents is perfected, the assignee's security interest in identifiable cash proceeds is perfected.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c64/scB/s64.061/c">
<num value="c">(c)</num>
<chapeau>Except as provided by Subsection (b), the provisions of Chapter 9, Business & Commerce Code, or the comparable Uniform Commercial Code provisions of another applicable jurisdiction, determine:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c64/scB/s64.061/1">
<num value="1">(1)</num>
<content>whether an assignee's security interest in proceeds is perfected;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scB/s64.061/2">
<num value="2">(2)</num>
<content>the effect of perfection or nonperfection;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scB/s64.061/3">
<num value="3">(3)</num>
<content>the priority of an interest in proceeds; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c64/scB/s64.061/4">
<num value="4">(4)</num>
<content>the law governing perfection, the effect of perfection or nonperfection, and the priority of an interest in proceeds.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c64/scB/s64.061/d">
<num value="d">(d)</num>
<content>For purposes of this chapter, cash proceeds are identifiable if they are maintained in a segregated deposit account or, if commingled with other funds, to the extent they can be identified by a method of tracing, including application of equitable principles, that is permitted under a law of this state other than this chapter with respect to commingled funds.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 636 (S.B. 889), Sec. 2, eff. June 17, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c64/scB/s64.062">
<num value="64.062">Sec. 64.062.</num>
<heading>PRIORITY SUBJECT TO SUBORDINATION</heading>
<content>This chapter does not preclude subordination by agreement by a person entitled to priority.</content>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 636 (S.B. 889), Sec. 2, eff. June 17, 2011.</sourceCredit>
</section>
</subchapter>
</chapter>
<chapter identifier="/us/tx/pr/t5/c65">
<num value="65">CHAPTER 65.</num>
<heading>AUTHORITY OF CO-OWNER TO ENCUMBER RESIDENTIAL PROPERTY</heading>
<section identifier="/us/tx/pr/t5/c65/s65.001">
<num value="65.001">Sec. 65.001.</num>
<heading>APPLICATION OF CHAPTER</heading>
<chapeau>This chapter applies only to residential property:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c65/s65.001/1">
<num value="1">(1)</num>
<content>that has residential improvements primarily designed for not more than four families;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c65/s65.001/2">
<num value="2">(2)</num>
<content>that is not more than 10 acres of land;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c65/s65.001/3">
<num value="3">(3)</num>
<content>that is owned by more than one person; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c65/s65.001/4">
<num value="4">(4)</num>
<content>for which at least one co-owner has received a residence homestead exemption under Section 11.13, Tax Code.</content>
</paragraph>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 918 (S.B. 1368), Sec. 1, eff. June 17, 2011.
Redesignated from Property Code, Chapter 64 by Acts 2013, 83rd Leg., R.S., Ch. 161 (S.B. 1093), Sec. 22.001(39), eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c65/s65.0011">
<num value="65.0011">Sec. 65.0011.</num>
<heading>APPLICATION TO INSTITUTIONS OF HIGHER EDUCATION</heading>
<content>This chapter does not apply to residential property for which an institution of higher education is a co-owner.</content>
<sourceCredit>Redesignated from Property Code, Chapter 64 by Acts 2013, 83rd Leg., R.S., Ch. 161 (S.B. 1093), Sec. 22.001(39), eff. September 1, 2013.
Added by Acts 2013, 83rd Leg., R.S., Ch. 1366 (S.B. 1604), Sec. 2, eff. June 14, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c65/s65.002">
<num value="65.002">Sec. 65.002.</num>
<heading>CONDITIONS FOR AUTHORITY TO ACT AS AGENT FOR CO-OWNER</heading>
<chapeau>A co-owner of residential property may act in the name of and on behalf of another co-owner, whether known or unknown, as the co-owner's statutory agent and attorney-in-fact for the purposes described by Section 65.004 if:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c65/s65.002/1">
<num value="1">(1)</num>
<content>the co-owner has occupied the property for more than five years;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c65/s65.002/2">
<num value="2">(2)</num>
<content>the co-owner has a residence homestead exemption for the property under Section 11.13, Tax Code;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c65/s65.002/3">
<num value="3">(3)</num>
<content>for the five years preceding the date the documents required by Section 65.003 are filed, the occupying co-owner has paid all assessed ad valorem taxes without delinquency and without contribution from the other co-owner; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c65/s65.002/4">
<num value="4">(4)</num>
<content>the occupying co-owner files the documents required by Section 65.003.</content>
</paragraph>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 918 (S.B. 1368), Sec. 1, eff. June 17, 2011.
Redesignated from Property Code, Chapter 64 by Acts 2013, 83rd Leg., R.S., Ch. 161 (S.B. 1093), Sec. 22.001(39), eff. September 1, 2013.
Redesignated and amended from Property Code, Section 64.002 by Acts 2013, 83rd Leg., R.S., Ch. 161 (S.B. 1093), Sec. 22.002(29), eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c65/s65.003">
<num value="65.003">Sec. 65.003.</num>
<heading>REQUIRED DOCUMENTATION</heading>
<chapeau>The occupying co-owner may establish the authority to act as an agent and attorney-in-fact for another co-owner by filing in the office of the county clerk of the county in which the real property is located:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c65/s65.003/1">
<num value="1">(1)</num>
<content>an affidavit of the occupying co-owner affirming the facts described by Sections 65.002(1)-(3);</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c65/s65.003/2">
<num value="2">(2)</num>
<content>the affidavits of two additional affiants personally familiar with the co-owner's occupancy of the real property corroborating the occupancy during the preceding five years; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c65/s65.003/3">
<num value="3">(3)</num>
<content>a certificate of the tax assessor-collector for the county in which the real property is located affirming that the co-owner has paid all taxes assessed against the real property for the preceding five years without delinquency.</content>
</paragraph>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 918 (S.B. 1368), Sec. 1, eff. June 17, 2011.
Redesignated from Property Code, Chapter 64 by Acts 2013, 83rd Leg., R.S., Ch. 161 (S.B. 1093), Sec. 22.001(39), eff. September 1, 2013.
Redesignated and amended from Property Code, Section 64.003 by Acts 2013, 83rd Leg., R.S., Ch. 161 (S.B. 1093), Sec. 22.002(30), eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c65/s65.004">
<num value="65.004">Sec. 65.004.</num>
<heading>SCOPE OF AUTHORITY</heading>
<subsection identifier="/us/tx/pr/t5/c65/s65.004/a">
<num value="a">(a)</num>
<content>The authority of the occupying co-owner to act as an agent and attorney-in-fact is limited to the authority to enter into a contract giving rise to a mechanic's and materialman's lien and to execute a deed of trust for the purpose of preserving or improving the residential property. The occupying co-owner is the sole obligor of the debt incurred under the contract and secured by the deed of trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c65/s65.004/b">
<num value="b">(b)</num>
<content>A lien that arises under a contract entered into by an occupying co-owner under this section is not subject to repudiation or disaffirmance by another co-owner.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 918 (S.B. 1368), Sec. 1, eff. June 17, 2011.
Redesignated from Property Code, Chapter 64 by Acts 2013, 83rd Leg., R.S., Ch. 161 (S.B. 1093), Sec. 22.001(39), eff. September 1, 2013.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t5/c66">
<num value="66">CHAPTER 66.</num>
<heading>SALE OF PROPERTY SUBJECT TO OIL OR GAS LEASE</heading>
<section identifier="/us/tx/pr/t5/c66/s66.001">
<num value="66.001">Sec. 66.001.</num>
<heading>SALE OF PROPERTY SUBJECT TO OIL OR GAS LEASE</heading>
<subsection identifier="/us/tx/pr/t5/c66/s66.001/a">
<num value="a">(a)</num>
<chapeau>In this section:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c66/s66.001/1">
<num value="1">(1)</num>
<content>"Mortgagee," "mortgagor," and "security instrument" have the meanings assigned by Section 51.0001.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c66/s66.001/2">
<num value="2">(2)</num>
<content>"Oil or gas lease" means an instrument conveying a fee simple determinable interest in a mineral estate covering oil, gas, or other hydrocarbons or a recorded memorandum of such an instrument.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c66/s66.001/3">
<num value="3">(3)</num>
<content>"Real property" means an estate covering the mineral interest in hydrocarbons or the mineral interest in hydrocarbons together with the surface overlying such mineral interest. The term does not include a surface interest or other interest that excludes a mineral interest in hydrocarbons.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c66/s66.001/b">
<num value="b">(b)</num>
<content>Notwithstanding any other law, an oil or gas lease covering real property subject to a security instrument that has been foreclosed remains in effect after the foreclosure sale if the oil or gas lease has not terminated or expired on its own terms and was executed and recorded in the real property records of the county before the foreclosure sale. An interest of the mortgagor or the mortgagor's assigns in the oil or gas lease, including a right to receive royalties or other payments that become due and payable after the date of the foreclosure, passes to the purchaser of the foreclosed property to the extent that the security instrument under which the real property was foreclosed had priority over the interest in the oil or gas lease of the mortgagor or the mortgagor's assigns.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c66/s66.001/c">
<num value="c">(c)</num>
<content>Notwithstanding Subsection (b), if real property that includes the mineral interest in hydrocarbons together with the surface overlying such mineral interest is subject to both an oil or gas lease and a security instrument and the security interest is foreclosed, the foreclosure sale terminates and extinguishes any right granted under the oil or gas lease for the lessee to use the surface of the real property to the extent that the security instrument under which the real property was foreclosed had priority over the rights of the lessee under the oil or gas lease.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c66/s66.001/d">
<num value="d">(d)</num>
<content>An agreement, including a subordination agreement, between a lessee of an oil or gas lease and a mortgagee of real property or the lessee of an oil or gas lease and the purchaser of foreclosed real property controls over any conflicting provision of this section. An agreement between a mortgagor and mortgagee may not modify the application of this section unless the affected lessee agrees to the modification.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c66/s66.001/e">
<num value="e">(e)</num>
<content>This section does not apply to a security instrument that does not attach to a mineral interest in hydrocarbons in the mortgaged real property.</content>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 461 (H.B. 2207), Sec. 1, eff. January 1, 2016.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t5/c67">
<num value="67">CHAPTER 67.</num>
<heading>OIL AND GAS LIENS</heading>
<section identifier="/us/tx/pr/t5/c67/s67.001">
<num value="67.001">Sec. 67.001.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c67/s67.001/1">
<num value="1">(1)</num>
<chapeau>"Affiliate" means any person who:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c67/s67.001/A">
<num value="A">(A)</num>
<content>is controlled, directly or indirectly, by a first purchaser; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c67/s67.001/B">
<num value="B">(B)</num>
<content>controls, directly or indirectly, a first purchaser.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c67/s67.001/2">
<num value="2">(2)</num>
<content>"Agreement to sell" means an enforceable agreement by an interest owner, directly or through a representative, to sell oil or gas on or after severance to a first purchaser. The term includes an agreement that is express or implied, whether oral or written.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c67/s67.001/3">
<num value="3">(3)</num>
<content>"Control" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a person, whether through ownership, by contract, or otherwise.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c67/s67.001/4">
<num value="4">(4)</num>
<content>"First purchaser" means the first person that purchases oil or gas from an interest owner, under an agreement to sell.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c67/s67.001/5">
<num value="5">(5)</num>
<content>"Gas" means natural gas, casinghead gas, and all constituent parts of natural gas and casinghead gas before and after processing but before a first purchaser transfers title, possession, or control of the gas to a purchaser.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c67/s67.001/6">
<num value="6">(6)</num>
<content>"Interest owner" means a person, including a transferee interest owner, owning an interest of any kind in oil and gas rights before acquisition by a first purchaser.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c67/s67.001/7">
<num value="7">(7)</num>
<content>"Oil" means oil, condensate, and all constituent parts of the oil, before or after processing but before a first purchaser transfers title, possession, or control of the oil to a purchaser.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c67/s67.001/8">
<num value="8">(8)</num>
<content>"Oil and gas lien" means the lien described by Section 67.002.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c67/s67.001/9">
<num value="9">(9)</num>
<chapeau>"Oil and gas rights" means any legal or equitable right, title, or interest in or to oil or gas from land in this state. The term includes:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c67/s67.001/A">
<num value="A">(A)</num>
<content>oil or gas in place before severance;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c67/s67.001/B">
<num value="B">(B)</num>
<content>oil or gas production, or the right to receive a portion of the proceeds, on severance;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c67/s67.001/C">
<num value="C">(C)</num>
<content>any interest or estate in, by, through, or under an oil and gas lease;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c67/s67.001/D">
<num value="D">(D)</num>
<content>a right acquired under a pooling order relating to:</content>
</subparagraph>
</paragraph>
<subsection identifier="/us/tx/pr/t5/c67/s67.001/i">
<num value="i">(i)</num>
<chapeau>ownership of oil or gas;</chapeau>
<clause identifier="/us/tx/pr/t5/c67/s67.001/ii">
<num value="ii">(ii)</num>
<content>the right to proceeds; or</content>
</clause>
<clause identifier="/us/tx/pr/t5/c67/s67.001/iii">
<num value="iii">(iii)</num>
<content>the right to enter into an agreement to sell;</content>
</clause>
<subparagraph identifier="/us/tx/pr/t5/c67/s67.001/E">
<num value="E">(E)</num>
<content>a right to receive consideration under an agreement to sell oil or gas; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c67/s67.001/F">
<num value="F">(F)</num>
<content>a mortgage lien or security interest in oil and gas rights.</content>
</subparagraph>
<paragraph identifier="/us/tx/pr/t5/c67/s67.001/10">
<num value="10">(10)</num>
<content>"Operator" means a person engaged in the severance of oil or gas for that person only, for other persons only, or for that person and others.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c67/s67.001/11">
<num value="11">(11)</num>
<chapeau>"Permitted lien" means a perfected and enforceable lien created by statute or rule of a governmental agency for storage or transportation charges, including terminal charges, tariffs, demurrage, insurance, labor, or other charges, owed by a first purchaser in relation to oil or gas originally purchased under an agreement to sell. The term does not include a lien that is:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c67/s67.001/A">
<num value="A">(A)</num>
<content>in favor of an affiliate of a first purchaser unless the lien is authorized by the statute or rule creating the lien; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c67/s67.001/B">
<num value="B">(B)</num>
<content>for charges incurred after the 90th day after the date the first purchaser delivers the oil or gas for storage or transportation.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c67/s67.001/12">
<num value="12">(12)</num>
<content>"Pooling order" means an order issued by the Railroad Commission of Texas that requires the owners of the right to drill for oil or gas in a drilling and spacing unit to pool the owner's interests for the development of the drilling and spacing unit.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c67/s67.001/13">
<num value="13">(13)</num>
<chapeau>"Proceeds" means, when paid or to be paid in consideration of, or as a consequence of, the sale of oil or gas under an agreement to sell:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c67/s67.001/A">
<num value="A">(A)</num>
<content>oil or gas on or after severance;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c67/s67.001/B">
<num value="B">(B)</num>
<content>inventory of raw, refined, or manufactured oil or gas after severance;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c67/s67.001/C">
<num value="C">(C)</num>
<content>rights to or products of any of the oil or gas described by Paragraph (A) or inventory described by Paragraph (B);</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c67/s67.001/D">
<num value="D">(D)</num>
<content>cash proceeds;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c67/s67.001/E">
<num value="E">(E)</num>
<content>accounts;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c67/s67.001/F">
<num value="F">(F)</num>
<content>chattel paper;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c67/s67.001/G">
<num value="G">(G)</num>
<content>instruments;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c67/s67.001/H">
<num value="H">(H)</num>
<content>documents; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c67/s67.001/I">
<num value="I">(I)</num>
<content>payment intangibles with respect to any of the preceding.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c67/s67.001/14">
<num value="14">(14)</num>
<chapeau>"Purchaser" means a person who:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c67/s67.001/A">
<num value="A">(A)</num>
<content>is not an affiliate of a first purchaser; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c67/s67.001/B">
<num value="B">(B)</num>
<content>takes, receives, or purchases oil or gas from a first purchaser.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c67/s67.001/15">
<num value="15">(15)</num>
<chapeau>"Representative" means a person who is authorized, expressly or by implication, including an operator or an authorized broker, to:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c67/s67.001/A">
<num value="A">(A)</num>
<content>sell oil or gas on behalf of, or for the benefit of, an interest owner under an agreement to sell; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c67/s67.001/B">
<num value="B">(B)</num>
<content>receive on behalf of an interest owner the consideration under an agreement to sell.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c67/s67.001/16">
<num value="16">(16)</num>
<content>"Sales price" means the proceeds a first purchaser agrees to pay an interest owner or representative under an agreement to sell.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c67/s67.001/17">
<num value="17">(17)</num>
<content>"Security interest" means a security interest governed by Chapter 9, Business & Commerce Code.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c67/s67.001/18">
<num value="18">(18)</num>
<content>"Severance" means the point in time oil or gas is possessed at the mouth of the wellbore of an oil and gas well.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c67/s67.001/19">
<num value="19">(19)</num>
<content>"Transferee interest owner" means a person that acquires oil and gas rights from a transferor interest owner.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c67/s67.001/20">
<num value="20">(20)</num>
<content>"Transferor interest owner" means an interest owner that transfers or conveys oil and gas rights, wholly or partly.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 284 (H.B. 3794), Sec. 4, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c67/s67.002">
<num value="67.002">Sec. 67.002.</num>
<heading>OIL AND GAS LIEN</heading>
<subsection identifier="/us/tx/pr/t5/c67/s67.002/a">
<num value="a">(a)</num>
<content>To secure the obligations of a first purchaser to pay the sales price, each interest owner has an oil and gas lien to the extent of the interest owner's interest in oil and gas rights. The oil and gas lien exists as part of and incident to the ownership of oil and gas rights.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c67/s67.002/b">
<num value="b">(b)</num>
<chapeau>An oil and gas lien:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c67/s67.002/1">
<num value="1">(1)</num>
<content>exists in and attaches to all oil and gas before severance;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c67/s67.002/2">
<num value="2">(2)</num>
<content>continues uninterrupted and without lapse in all oil and gas on and after severance; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c67/s67.002/3">
<num value="3">(3)</num>
<content>continues uninterrupted and without lapse in and to all proceeds from the sale of the oil or gas.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c67/s67.002/c">
<num value="c">(c)</num>
<chapeau>Except as provided by Subsection (d), an oil and gas lien exists until the interest owner or representative first entitled to receive the sales price has received the sales price for the oil or gas production, but the lien does not continue to attach to the production after the production is sold by the first purchaser, unless the first subsequent purchaser:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c67/s67.002/1">
<num value="1">(1)</num>
<content>is an affiliate of the first purchaser; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c67/s67.002/2">
<num value="2">(2)</num>
<content>has actual knowledge, not constructive notice or inquiry notice, that the first purchaser has not paid the interest owner or representative first entitled to receive the sales price.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c67/s67.002/d">
<num value="d">(d)</num>
<content>As between an interest owner and a representative of an interest owner or any person claiming adversely to the interest owner or representative, the interest owner's oil and gas lien continues uninterrupted and without lapse in proceeds in the possession or control of a representative until the interest owner on whose behalf the representative acts receives the proceeds in full.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c67/s67.002/e">
<num value="e">(e)</num>
<chapeau>Except as provided by Subsection (f), a first purchaser takes free of an oil and gas lien if the first purchaser:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c67/s67.002/1">
<num value="1">(1)</num>
<content>in good faith, paid the sales price for the oil or gas to an interest owner or representative otherwise apparently entitled to receive the sales price; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c67/s67.002/2">
<num value="2">(2)</num>
<content>is without actual knowledge that the interest owner or representative is not entitled to receive the sales price paid.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c67/s67.002/f">
<num value="f">(f)</num>
<content>Notwithstanding Subsection (e), the oil and gas lien continues uninterrupted in the proceeds paid to or otherwise due the interest owner or representative.</content>
</subsection>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 284 (H.B. 3794), Sec. 4, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c67/s67.003">
<num value="67.003">Sec. 67.003.</num>
<heading>TRANSFER OF OIL AND GAS RIGHTS</heading>
<subsection identifier="/us/tx/pr/t5/c67/s67.003/a">
<num value="a">(a)</num>
<content>The validity of an oil and gas lien is not dependent on possession of the oil or gas by an interest owner or representative. An oil and gas lien is not void or expired because of a change or transfer of the actual or constructive possession of or title to the oil or gas from the interest owner or representative to a first purchaser or other purchaser.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c67/s67.003/b">
<num value="b">(b)</num>
<content>On the conveyance or transfer of any oil and gas rights by a transferor interest owner, the oil and gas lien vested in the transferor interest owner immediately before the conveyance or transfer remains with the transferor interest owner to the extent of any oil and gas rights retained by the transferor interest owner.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c67/s67.003/c">
<num value="c">(c)</num>
<content>On the conveyance or transfer of any oil and gas rights by a transferor interest owner, the oil and gas lien vested in the transferor interest owner immediately before the conveyance or transfer is transferred to and attaches automatically to the oil and gas rights acquired by the transferee interest owner uninterrupted and without lapse and as part of and incident to the oil and gas rights that are conveyed or transferred.</content>
</subsection>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 284 (H.B. 3794), Sec. 4, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c67/s67.004">
<num value="67.004">Sec. 67.004.</num>
<heading>AUTOMATIC PERFECTION OF LIEN</heading>
<content>An oil and gas lien of an interest owner is perfected automatically without the need to file a financing statement or any other type of documentation.</content>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 284 (H.B. 3794), Sec. 4, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c67/s67.005">
<num value="67.005">Sec. 67.005.</num>
<heading>COMMINGLING</heading>
<subsection identifier="/us/tx/pr/t5/c67/s67.005/a">
<num value="a">(a)</num>
<chapeau>If oil or gas in which there exists more than one oil and gas lien is commingled with other oil or gas in a manner that the identity of the specific oil or gas is lost, the oil and gas lien:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c67/s67.005/1">
<num value="1">(1)</num>
<content>continues without interruption into and attaches to any resulting commingled product; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c67/s67.005/2">
<num value="2">(2)</num>
<content>is perfected automatically on the date of the oil and gas lien's original perfection but only for the volume of the commingled product that is equal to the volume of product to which the oil and gas lien originally attached.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c67/s67.005/b">
<num value="b">(b)</num>
<content>If commingling described by Subsection (a) occurs, the oil and gas lien in the commingled product has priority over any security interest or other lien that is not an oil and gas lien or permitted lien, regardless of whether the security interest or other lien has been properly perfected.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c67/s67.005/c">
<num value="c">(c)</num>
<content>If more than one oil and gas lien attaches to the commingled product, the oil and gas liens rank equally in the proportion that the respective sales prices secured by each oil and gas lien bears as a percentage of the total of the sales prices secured by all oil and gas liens applicable to the production at the time the production was commingled.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c67/s67.005/d">
<num value="d">(d)</num>
<content>This section is intended to recognize the continuation of oil and gas lien rights of an interest owner in the commingled product stream only as to a volume of oil or gas proportionate to the volume of oil or gas that originated from the interest owner, with that volume of the commingled product being considered to have maintained a distinct identity as being available for sale or transportation under the specific contractual arrangements applicable to the production at the time the oil or gas entered the commingled product stream.</content>
</subsection>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 284 (H.B. 3794), Sec. 4, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c67/s67.006">
<num value="67.006">Sec. 67.006.</num>
<heading>RIGHTS OF PURCHASERS</heading>
<subsection identifier="/us/tx/pr/t5/c67/s67.006/a">
<num value="a">(a)</num>
<chapeau>Except as provided by Subsection (b), a purchaser takes free of any oil and gas lien otherwise applicable to the oil or gas purchased if the purchaser:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c67/s67.006/1">
<num value="1">(1)</num>
<content>is a buyer in the ordinary course of the first purchaser's business under Chapter 9, Business & Commerce Code; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c67/s67.006/2">
<num value="2">(2)</num>
<content>has paid all of the consideration due to the first purchaser, including by exchange of oil or gas, net-out, or set-off, under all applicable enforceable contracts in existence at the time of the payment.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c67/s67.006/b">
<num value="b">(b)</num>
<content>The oil and gas lien continues uninterrupted in the proceeds paid to or otherwise due the first purchaser.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c67/s67.006/c">
<num value="c">(c)</num>
<content>Except as provided by this section, an oil and gas lien has priority over the rights of any purchaser.</content>
</subsection>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 284 (H.B. 3794), Sec. 4, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c67/s67.007">
<num value="67.007">Sec. 67.007.</num>
<heading>PRIORITY IN RELATION TO OTHER LIENS OR SECURITY INTERESTS</heading>
<content>Except for a permitted lien, an oil and gas lien takes priority over any other lien, whether arising by contract, law, equity, or otherwise, or any security interest.</content>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 284 (H.B. 3794), Sec. 4, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c67/s67.008">
<num value="67.008">Sec. 67.008.</num>
<heading>TITLE NOT AFFECTED</heading>
<chapeau>This chapter does not affect:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c67/s67.008/1">
<num value="1">(1)</num>
<content>when legal title to oil and gas may pass by agreement or operation of law subject to an oil and gas lien;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c67/s67.008/2">
<num value="2">(2)</num>
<content>the right of a first purchaser to take or receive oil and gas under the terms of a division order, provided that the division order does not modify, waive, or abrogate in any respect the rights of an interest owner under this chapter; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c67/s67.008/3">
<num value="3">(3)</num>
<content>subject to Section 67.009, the right of a first purchaser to take or receive oil and gas under an agreement to sell.</content>
</paragraph>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 284 (H.B. 3794), Sec. 4, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c67/s67.009">
<num value="67.009">Sec. 67.009.</num>
<heading>WAIVER</heading>
<subsection identifier="/us/tx/pr/t5/c67/s67.009/a">
<num value="a">(a)</num>
<chapeau>Except as provided by Subsection (b), an interest owner may not be required, as a condition or term of an agreement to sell or otherwise, to:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c67/s67.009/1">
<num value="1">(1)</num>
<content>waive or release any oil and gas lien or a right under this chapter, other than on payment in full of the sales price; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c67/s67.009/2">
<num value="2">(2)</num>
<content>agree to a provision that would apply the law of another state to a right granted under this chapter.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c67/s67.009/b">
<num value="b">(b)</num>
<chapeau>An interest owner, or representative acting on behalf of an interest owner, may waive or release any oil and gas lien or any rights under this chapter or agree to apply the law of another state to the interest owner's oil and gas rights granted under this chapter, if the first purchaser:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c67/s67.009/1">
<num value="1">(1)</num>
<content>posts a letter of credit in a form and amount satisfactory to the interest owner; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c67/s67.009/2">
<num value="2">(2)</num>
<content>agrees to prepay or escrow the sales price under an agreement to sell with the interest owner and performs all of the first purchaser's obligations under the agreement.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c67/s67.009/c">
<num value="c">(c)</num>
<content>Unless waived or released under Subsection (b), a condition or term described by Subsection (a) is void.</content>
</subsection>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 284 (H.B. 3794), Sec. 4, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c67/s67.010">
<num value="67.010">Sec. 67.010.</num>
<heading>LIMITATION ON FILING ACTION TO ENFORCE LIEN</heading>
<subsection identifier="/us/tx/pr/t5/c67/s67.010/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (b), an action to enforce the interest owner's oil and gas lien must be brought not later than the first anniversary of the last day of the month after the date proceeds from the sale of oil or gas subject to the lien are required by law or contract to be paid to the interest owner, but only as to the oil or gas sold during that month.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c67/s67.010/b">
<num value="b">(b)</num>
<chapeau>The commencement of a proceeding by or against any person claiming an interest in any property subject to the oil and gas lien seeking to adjudicate the person as bankrupt or insolvent, or seeking relief of the person's debts under any law relating to bankruptcy, insolvency, reorganization, or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, or other similar official for the person or for any substantial part of the person's property shall toll the one-year period prescribed by Subsection (a) in which to bring an action to enforce the oil and gas lien for an additional period of 90 days after the earlier of the date:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c67/s67.010/1">
<num value="1">(1)</num>
<content>the proceeding is dismissed or otherwise finally concluded; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c67/s67.010/2">
<num value="2">(2)</num>
<content>final relief is obtained from the appropriate tribunal authorizing the commencement of the action to enforce the oil and gas lien.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 284 (H.B. 3794), Sec. 4, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c67/s67.011">
<num value="67.011">Sec. 67.011.</num>
<heading>VENUE; JURISDICTION</heading>
<subsection identifier="/us/tx/pr/t5/c67/s67.011/a">
<num value="a">(a)</num>
<chapeau>An action to enforce the interest owner's oil and gas lien may be brought in a district court or other court of competent jurisdiction in the county in which:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c67/s67.011/1">
<num value="1">(1)</num>
<content>the oil and gas well from which the oil or gas is produced is located;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c67/s67.011/2">
<num value="2">(2)</num>
<content>the unpaid for oil or gas is located; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c67/s67.011/3">
<num value="3">(3)</num>
<content>the proceeds for the oil or gas are located.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c67/s67.011/b">
<num value="b">(b)</num>
<content>An interest owner may join multiple proceedings to enforce oil and gas liens involving more than one oil and gas well in one county in the same action.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c67/s67.011/c">
<num value="c">(c)</num>
<chapeau>In cases involving oil or gas from the same oil and gas well or wells:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c67/s67.011/1">
<num value="1">(1)</num>
<content>any persons claiming oil and gas liens in the oil or gas may join in the same action; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c67/s67.011/2">
<num value="2">(2)</num>
<content>a district court may consolidate separate actions related to the oil or gas.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 284 (H.B. 3794), Sec. 4, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c67/s67.012">
<num value="67.012">Sec. 67.012.</num>
<heading>PAYMENT DISPUTES</heading>
<chapeau>In the case of a payment dispute between an operator and another interest owner, a good-faith tender of money in satisfaction of a debt or security interest by one person operates as a tender of the money to both if tender is made:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c67/s67.012/1">
<num value="1">(1)</num>
<content>to the person who the operator and other interest owner jointly directed the first purchaser in writing to pay;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c67/s67.012/2">
<num value="2">(2)</num>
<content>to a person who otherwise shows the person is entitled to the money; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c67/s67.012/3">
<num value="3">(3)</num>
<content>to a court of competent jurisdiction in the event of litigation or bankruptcy.</content>
</paragraph>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 284 (H.B. 3794), Sec. 4, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c67/s67.013">
<num value="67.013">Sec. 67.013.</num>
<heading>COSTS; ATTORNEY'S FEES</heading>
<content>The prevailing party in an action brought under this chapter is entitled to court costs and reasonable attorney's fees.</content>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 284 (H.B. 3794), Sec. 4, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c67/s67.014">
<num value="67.014">Sec. 67.014.</num>
<heading>CERTAIN RIGHTS OF OPERATOR NOT IMPAIRED</heading>
<content>This chapter does not impair an operator's right to be paid, set-off, or withhold funds from another interest owner as security for or in satisfaction of a debt or security interest.</content>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 284 (H.B. 3794), Sec. 4, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c67/s67.015">
<num value="67.015">Sec. 67.015.</num>
<heading>INTEREST OWNER RIGHTS CUMULATIVE</heading>
<content>The provisions of this chapter and the rights granted under this chapter are intended to be cumulative with all other rights an interest owner may otherwise have at law or in equity, including the right of any interest owner to maintain a personal action to recover the debt against any person liable for payment of the sales price of the oil or gas.</content>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 284 (H.B. 3794), Sec. 4, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c67/s67.016">
<num value="67.016">Sec. 67.016.</num>
<heading>LIBERAL CONSTRUCTION OF INTEREST OWNER RIGHTS</heading>
<content>The rights of the interest owner shall be liberally construed to give the interest owner the most comprehensive protection to secure the receipt by the interest owner of the sales price.</content>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 284 (H.B. 3794), Sec. 4, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c67/s67.017">
<num value="67.017">Sec. 67.017.</num>
<heading>CONFLICT OF LAWS</heading>
<content>To the extent of a conflict between the provisions of this chapter and other law, this chapter prevails.</content>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 284 (H.B. 3794), Sec. 4, eff. September 1, 2021.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t5/c68">
<num value="68">CHAPTER 68.</num>
<heading>RICO LIENS</heading>
<subchapter identifier="/us/tx/pr/t5/c68/scA">
<num value="A">SUBCHAPTER A.</num>
<heading>GENERAL PROVISIONS</heading>
<section identifier="/us/tx/pr/t5/c68/scA/s68.001">
<num value="68.001">Sec. 68.001.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c68/scA/s68.001/1">
<num value="1">(1)</num>
<content>"Beneficial interest," "investigative agency," "local prosecutor," and "real property" have the meanings assigned by Section 140B.001, Civil Practice and Remedies Code.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c68/scA/s68.001/2">
<num value="2">(2)</num>
<content>"RICO lien notice" means a lien notice filed under Section 68.051 or 68.052.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c68/scA/s68.001/3">
<num value="3">(3)</num>
<chapeau>"Trustee":</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c68/scA/s68.001/A">
<num value="A">(A)</num>
<content>means:</content>
</subparagraph>
</paragraph>
<subsection identifier="/us/tx/pr/t5/c68/scA/s68.001/i">
<num value="i">(i)</num>
<chapeau>a person acting as trustee under a trust established under the Texas Trust Code (Subtitle B, Title 9, Property Code) in which the trustee holds legal or record title to real property;</chapeau>
<clause identifier="/us/tx/pr/t5/c68/scA/s68.001/ii">
<num value="ii">(ii)</num>
<content>a person who holds legal or record title to real property in which another person has a beneficial interest; or</content>
</clause>
<clause identifier="/us/tx/pr/t5/c68/scA/s68.001/iii">
<num value="iii">(iii)</num>
<content>a successor trustee to a person described by Subparagraph (i) or (ii); and</content>
</clause>
<subparagraph identifier="/us/tx/pr/t5/c68/scA/s68.001/B">
<num value="B">(B)</num>
<content>does not include a person appointed or acting as a personal representative as defined by Section 22.031, Estates Code, or appointed or acting as a trustee of a testamentary trust or as a trustee of an indenture of trust under which any bonds have been or are to be issued.</content>
</subparagraph>
</subsection>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 885 (H.B. 4635), Sec. 7, eff. September 1, 2023.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t5/c68/scB">
<num value="B">SUBCHAPTER B.</num>
<heading>RICO LIEN NOTICE</heading>
<section identifier="/us/tx/pr/t5/c68/scB/s68.051">
<num value="68.051">Sec. 68.051.</num>
<heading>GENERAL RICO LIEN NOTICE</heading>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.051/a">
<num value="a">(a)</num>
<content>On the institution by an investigative agency of a civil action brought under Chapter 140B, Civil Practice and Remedies Code, the investigative agency, then or at any time during the pendency of the action, may file a RICO lien notice in the official records of any one or more counties. The attorney general must receive the consent of the applicable local prosecutor before filing a RICO lien.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.051/b">
<num value="b">(b)</num>
<content>A filing fee or other charge may not be required as a condition for filing the RICO lien notice, and the clerk of the district court, on the presentation of a RICO lien notice, shall immediately record it in the official records.</content>
</subsection>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 885 (H.B. 4635), Sec. 7, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c68/scB/s68.052">
<num value="68.052">Sec. 68.052.</num>
<heading>ATTORNEY GENERAL OR LOCAL PROSECUTOR RICO LIEN NOTICE</heading>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.052/a">
<num value="a">(a)</num>
<content>In addition to the authority to file a RICO lien notice under Section 68.051, the attorney general or a local prosecutor may apply ex parte to a district court and, on petition supported by sworn affidavit, obtain an order authorizing the filing of a RICO lien notice against real property on a showing of probable cause to believe that the property was used in the course of, intended for use in the course of, derived from, or realized through conduct constituting an offense under Section 72.02, 72.03, or 72.04, Penal Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.052/b">
<num value="b">(b)</num>
<chapeau>If the RICO lien notice authorization is granted, the attorney general or local prosecutor shall, after filing the notice, immediately provide notice to the owner of the property by:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c68/scB/s68.052/1">
<num value="1">(1)</num>
<content>serving the notice in the manner provided by law for the service of process;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c68/scB/s68.052/2">
<num value="2">(2)</num>
<content>mailing the notice, postage prepaid, by certified mail to the owner at the owner's last known address and obtaining evidence of the delivery; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c68/scB/s68.052/3">
<num value="3">(3)</num>
<content>if service by a method described by Subdivision (1) or (2) cannot be accomplished, posting the notice on the premises.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.052/c">
<num value="c">(c)</num>
<content>The owner of the property may move the court to discharge the lien, and that motion shall be set for hearing at the earliest possible time.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.052/d">
<num value="d">(d)</num>
<chapeau>The court shall discharge the lien if the court finds that:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c68/scB/s68.052/1">
<num value="1">(1)</num>
<content>there is no probable cause to believe that the property was used in the course of, intended for use in the course of, derived from, or realized through conduct constituting an offense under Section 72.02, 72.03, or 72.04, Penal Code; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c68/scB/s68.052/2">
<num value="2">(2)</num>
<content>the owner of the property neither knew nor reasonably should have known that the property was used in the course of, intended for use in the course of, derived from, or realized through conduct constituting an offense under Section 72.02, 72.03, or 72.04, Penal Code.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.052/e">
<num value="e">(e)</num>
<chapeau>Testimony presented by the property owner at the hearing:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c68/scB/s68.052/1">
<num value="1">(1)</num>
<content>is not admissible against the property owner in any criminal proceeding except in a criminal prosecution for perjury or false statement; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c68/scB/s68.052/2">
<num value="2">(2)</num>
<content>does not constitute a waiver of the property owner's constitutional right against self-incrimination.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.052/f">
<num value="f">(f)</num>
<content>Except as provided by Subsection (g), a RICO lien notice secured under this section is valid for a period of 90 days from the date the court granted authorization and may be extended for an additional 90 days by the court for good cause shown.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.052/g">
<num value="g">(g)</num>
<content>If a civil action is instituted under Chapter 140B, Civil Practice and Remedies Code, and a RICO lien notice is filed under this subchapter, the term of the lien notice is governed by this subchapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.052/h">
<num value="h">(h)</num>
<content>The filing of a RICO lien notice, regardless of whether subsequently discharged or otherwise lifted, constitutes notice to the owner and knowledge by the owner that the property was used in the course of, intended for use in the course of, derived from, or realized through conduct constituting an offense under Section 72.02, 72.03, or 72.04, Penal Code, such that lack of such notice and knowledge is not a defense in any subsequent civil action under Chapter 140B, Civil Practice and Remedies Code, or a subsequent criminal proceeding under Chapter 72, Penal Code.</content>
</subsection>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 885 (H.B. 4635), Sec. 7, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c68/scB/s68.053">
<num value="68.053">Sec. 68.053.</num>
<heading>FORMAT OF NOTICE</heading>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.053/a">
<num value="a">(a)</num>
<content>A RICO lien notice must be signed by the attorney general or the attorney general's designee or by a local prosecutor or the local prosecutor's designee.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.053/b">
<num value="b">(b)</num>
<chapeau>A RICO lien notice must be in the form prescribed by the attorney general and must include:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c68/scB/s68.053/1">
<num value="1">(1)</num>
<content>the name of the person against whom a civil action has been brought under Chapter 140B, Civil Practice and Remedies Code, and at the discretion of the investigative agency may also include any other aliases, names, or fictitious names under which the person may be known and any corporation, partnership, or other entity that is either controlled or entirely owned by the person;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c68/scB/s68.053/2">
<num value="2">(2)</num>
<content>if known to the investigative agency, the current residence and business addresses of the person named in the notice and of the other names included in the notice;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c68/scB/s68.053/3">
<num value="3">(3)</num>
<chapeau>a reference to an applicable civil action, stating:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c68/scB/s68.053/A">
<num value="A">(A)</num>
<content>that an action under Chapter 140B, Civil Practice and Remedies Code, has been brought against the person named in the notice;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c68/scB/s68.053/B">
<num value="B">(B)</num>
<content>the name of each county in which the action has been brought; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c68/scB/s68.053/C">
<num value="C">(C)</num>
<content>if known to the investigative agency at the time of filing the notice, the cause number of the action;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c68/scB/s68.053/4">
<num value="4">(4)</num>
<content>a statement that the notice is being filed under this chapter; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c68/scB/s68.053/5">
<num value="5">(5)</num>
<content>the name and address of the investigative agency filing the notice and the name of the individual signing the notice.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.053/c">
<num value="c">(c)</num>
<content>A RICO lien notice must apply only to one person and, to the extent applicable, any other aliases, names, or fictitious names of that person, including the names of corporations, partnerships, or other entities, to the extent permitted by Subsection (b)(1). A separate notice must be filed for each person against whom the investigative agency desires to file a RICO lien notice under this subchapter.</content>
</subsection>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 885 (H.B. 4635), Sec. 7, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c68/scB/s68.054">
<num value="68.054">Sec. 68.054.</num>
<heading>SERVICE OF NOTICE</heading>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.054/a">
<num value="a">(a)</num>
<chapeau>An investigative agency shall, as soon as practicable after the filing of each RICO lien notice, provide to the person named in the notice:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c68/scB/s68.054/1">
<num value="1">(1)</num>
<content>a copy of the recorded notice; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c68/scB/s68.054/2">
<num value="2">(2)</num>
<content>a copy of the notice that states each county in which the notice has been recorded.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.054/b">
<num value="b">(b)</num>
<content>The failure of the investigative agency to provide a copy of a RICO lien notice under this section does not invalidate or otherwise affect the notice.</content>
</subsection>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 885 (H.B. 4635), Sec. 7, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c68/scB/s68.055">
<num value="68.055">Sec. 68.055.</num>
<heading>CREATION AND PRIORITY OF RICO LIEN</heading>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.055/a">
<num value="a">(a)</num>
<chapeau>Filing a RICO lien notice creates, from the time of its filing, a lien in favor of the state on the following property of the person named in the notice and against any other names set forth in the notice:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c68/scB/s68.055/1">
<num value="1">(1)</num>
<content>any real property situated in the county where the notice is filed then or thereafter owned by the person or under any of the names; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c68/scB/s68.055/2">
<num value="2">(2)</num>
<content>any beneficial interest situated in the county where the notice is filed then or thereafter owned by the person or under any of the names.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.055/b">
<num value="b">(b)</num>
<content>The lien shall commence and attach as of the time of filing of a RICO lien notice and shall continue thereafter until expiration, termination, or release of the notice under this subchapter. The lien created in favor of the state is superior to the interest of any other person in the real property or beneficial interest if the interest is acquired subsequent to the filing of the notice.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.055/c">
<num value="c">(c)</num>
<content>For purposes of this section, a beneficial interest is considered to be located where real property owned by the trustee is located.</content>
</subsection>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 885 (H.B. 4635), Sec. 7, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c68/scB/s68.056">
<num value="68.056">Sec. 68.056.</num>
<heading>LIS PENDENS; INTERESTS OF PERSONS ACQUIRING INTEREST IN PROPERTY</heading>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.056/a">
<num value="a">(a)</num>
<content>In conjunction with a civil action brought under Chapter 140B, Civil Practice and Remedies Code, an investigative agency may file without prior court order in any county a notice of lis pendens under Section 12.007. In such case, a person acquiring an interest in the subject real property or beneficial interest, if the real property or beneficial interest is acquired subsequent to the filing of the notice of lis pendens, shall take the interest subject to the civil action and any subsequent judgment of forfeiture.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.056/b">
<num value="b">(b)</num>
<content>In conjunction with a civil action brought under Chapter 140B, Civil Practice and Remedies Code, if a RICO lien notice has been filed, an investigative agency may name as a defendant, in addition to the person named in the notice, any person acquiring an interest in the real property or beneficial interest subsequent to the filing of the notice. If a judgment of forfeiture is entered in the action in favor of the state, the interest of any person in the property that was acquired subsequent to the filing of the notice shall be subject to the notice and judgment of forfeiture.</content>
</subsection>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 885 (H.B. 4635), Sec. 7, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c68/scB/s68.057">
<num value="68.057">Sec. 68.057.</num>
<heading>DUTIES OF TRUSTEE; CRIMINAL OFFENSE</heading>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.057/a">
<num value="a">(a)</num>
<chapeau>A trustee who acquires actual knowledge that a RICO lien notice or a civil action brought under Chapter 140B, Civil Practice and Remedies Code, or criminal proceeding brought under Chapter 72, Penal Code, has been filed against a person for whom the trustee holds legal or record title to real property shall immediately furnish to the appropriate investigative agency:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c68/scB/s68.057/1">
<num value="1">(1)</num>
<content>the name and address of the person, as known to the trustee;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c68/scB/s68.057/2">
<num value="2">(2)</num>
<content>the name and address, as known to the trustee, of each other person for whose benefit the trustee holds title to the real property; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c68/scB/s68.057/3">
<num value="3">(3)</num>
<content>if requested by the investigative agency, a copy of the trust agreement or other instrument under which the trustee holds legal or record title to the real property.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.057/b">
<num value="b">(b)</num>
<content>A trustee who violates this section commits an offense. An offense under this subsection is a Class B misdemeanor.</content>
</subsection>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 885 (H.B. 4635), Sec. 7, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c68/scB/s68.058">
<num value="68.058">Sec. 68.058.</num>
<heading>LIABILITY OF TRUSTEE FOR CONVEYANCE OF TITLE</heading>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.058/a">
<num value="a">(a)</num>
<chapeau>A trustee who conveys title to real property for which, at the time of the conveyance, a RICO lien notice naming a person who, to the actual knowledge of the trustee, holds a beneficial interest in the trust has been filed in the county where the real property is situated is liable to the state for the greatest of:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c68/scB/s68.058/1">
<num value="1">(1)</num>
<content>the amount of proceeds received directly by the person named in the notice as a result of the conveyance;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c68/scB/s68.058/2">
<num value="2">(2)</num>
<content>the amount of proceeds received by the trustee as a result of the conveyance and distributed to the person named in the notice; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c68/scB/s68.058/3">
<num value="3">(3)</num>
<content>the fair market value of the interest of the person named in the notice in the real property conveyed.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.058/b">
<num value="b">(b)</num>
<content>Notwithstanding Subsection (a)(3), if a trustee conveys the real property and holds the proceeds that would otherwise be paid or distributed to the beneficiary or at the direction of the beneficiary or the beneficiary's designee, the trustee's liability does not exceed the amount of the proceeds held for so long as the proceeds are held by the trustee.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.058/c">
<num value="c">(c)</num>
<content>An investigative agency may bring a civil action in any district court against a trustee to recover from the trustee the amount described by Subsection (a) and is entitled to recover investigative costs and attorney's fees incurred by the investigative agency.</content>
</subsection>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 885 (H.B. 4635), Sec. 7, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c68/scB/s68.059">
<num value="68.059">Sec. 68.059.</num>
<heading>EFFECT ON TRUST OF RICO LIEN NOTICE</heading>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.059/a">
<num value="a">(a)</num>
<content>The filing of a RICO lien notice does not constitute a lien on the record title to real property as owned by a trustee except to the extent that the trustee is named in the notice.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.059/b">
<num value="b">(b)</num>
<content>The filing of a RICO lien notice does not affect the use to which real property or a beneficial interest owned by the person named in the notice may be put or the right of the person to receive any avails, rents, or other proceeds resulting from the use and ownership, but not the sale, of the property until a judgment of forfeiture is entered.</content>
</subsection>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 885 (H.B. 4635), Sec. 7, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c68/scB/s68.060">
<num value="68.060">Sec. 68.060.</num>
<heading>TRUST EXCEPTIONS</heading>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.060/a">
<num value="a">(a)</num>
<content>This chapter does not apply to a conveyance by a trustee under a court order, unless that court order is entered in an action between the trustee and the beneficiary.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.060/b">
<num value="b">(b)</num>
<chapeau>Unless the trustee has actual knowledge that a person owning a beneficial interest in the trust is named in a RICO lien notice or is otherwise a defendant in a civil action brought under Chapter 140B, Civil Practice and Remedies Code, this subchapter does not apply to a conveyance by the trustee:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c68/scB/s68.060/1">
<num value="1">(1)</num>
<content>required under the terms of the trust agreement that is a matter of public record before the filing of the lien notice; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c68/scB/s68.060/2">
<num value="2">(2)</num>
<content>to all of the persons who own beneficial interests in the trust.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 885 (H.B. 4635), Sec. 7, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c68/scB/s68.061">
<num value="68.061">Sec. 68.061.</num>
<heading>RIGHTS OF INNOCENT PERSONS</heading>
<content>All forfeitures or dispositions under this chapter must be made with due provision for the rights of innocent persons.</content>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 885 (H.B. 4635), Sec. 7, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c68/scB/s68.062">
<num value="68.062">Sec. 68.062.</num>
<heading>EXPIRATION, RENEWAL, AND RELEASE OF RICO LIEN NOTICE</heading>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.062/a">
<num value="a">(a)</num>
<content>Unless renewed by the investigative agency, a RICO lien notice expires on the sixth anniversary of the date it was filed. If the investigative agency renews the notice, the notice expires on the sixth anniversary of the date it was renewed. The investigative agency may renew the notice only once.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.062/b">
<num value="b">(b)</num>
<content>The investigative agency filing a RICO lien notice may wholly or partly release the notice or may release any specific real property or beneficial interest from the notice on the investigative agency's own terms. A release of the notice may be filed in the official records of any county. A charge or fee may not be imposed for the filing of the release.</content>
</subsection>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 885 (H.B. 4635), Sec. 7, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c68/scB/s68.063">
<num value="68.063">Sec. 68.063.</num>
<heading>EFFECT OF CRIMINAL CASE ON RICO LIEN NOTICE</heading>
<content>If a civil action has not been brought by an investigative agency seeking a forfeiture of any property owned by the person named in the RICO lien notice, the acquittal in a criminal proceeding brought under Chapter 72, Penal Code, of the person named in the notice or the dismissal of the criminal proceeding terminates the notice and, in such case, the filing of the notice is void. If the criminal proceeding has been dismissed or the person named in the notice has been acquitted in the criminal proceeding, the notice continues for the duration of a civil action brought under Chapter 140B, Civil Practice and Remedies Code.</content>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 885 (H.B. 4635), Sec. 7, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c68/scB/s68.064">
<num value="68.064">Sec. 68.064.</num>
<heading>TERMINATION OR RELEASE OF RICO LIEN NOTICE BY COURT</heading>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.064/a">
<num value="a">(a)</num>
<content>If a civil action brought under Chapter 140B, Civil Practice and Remedies Code, is not pending against a person named in a RICO lien notice, the person may bring an action in the county where the notice has been filed against the investigative agency that filed the notice seeking a release or extinguishment of the notice.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.064/b">
<num value="b">(b)</num>
<content>In an action brought under this section, the court shall, on the motion of the person named in the RICO lien notice, immediately enter an order setting a date for hearing that is not earlier than the fifth day and not later than the 10th day after the date the action is filed, and the order and a copy of the complaint shall be served on the investigative agency not later than the third day after the date the action is filed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.064/c">
<num value="c">(c)</num>
<content>At the hearing set under Subsection (b), the court shall take evidence on the issue of whether any real property or beneficial interest owned by the person named in the RICO lien notice is covered by the notice or is otherwise subject to forfeiture under Chapter 140B, Civil Practice and Remedies Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.064/d">
<num value="d">(d)</num>
<content>If, at the hearing under Subsection (b), the person named in the RICO lien notice shows by a preponderance of the evidence that the notice is not applicable to the person or that any real property or beneficial interest owned by the person is not subject to forfeiture under Chapter 140B, Civil Practice and Remedies Code, the court shall enter a judgment terminating the notice or releasing the real property or beneficial interest from the notice.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.064/e">
<num value="e">(e)</num>
<content>A court shall immediately enter its order releasing from a RICO lien notice any specific real property or beneficial interest if a sale of that real property or beneficial interest is pending and the filing of the notice prevents the sale of the property or interest. Proceeds resulting from the sale of that real property or beneficial interest shall be deposited into the registry of the court, subject to the further order of the court.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.064/f">
<num value="f">(f)</num>
<content>At the hearing under Subsection (b), the court may release any real property or beneficial interest from the RICO lien notice, on the posting by the person named in the notice of security that is equal to the value of the real property or beneficial interest owned by the person.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c68/scB/s68.064/g">
<num value="g">(g)</num>
<content>If a civil action brought under Chapter 140B, Civil Practice and Remedies Code, is pending against a person named in a RICO lien notice, the court on motion by the person may grant the relief described by this section.</content>
</subsection>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 885 (H.B. 4635), Sec. 7, eff. September 1, 2023.</sourceCredit>
</section>
</subchapter>
</chapter>
<chapter identifier="/us/tx/pr/t5/c70">
<num value="70">CHAPTER 70.</num>
<heading>MISCELLANEOUS LIENS</heading>
<subchapter identifier="/us/tx/pr/t5/c70/scA">
<num value="A">SUBCHAPTER A.</num>
<heading>POSSESSORY LIENS</heading>
<section identifier="/us/tx/pr/t5/c70/scA/s70.001">
<num value="70.001">Sec. 70.001.</num>
<heading>WORKER'S LIEN</heading>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.001/a">
<num value="a">(a)</num>
<chapeau>A worker in this state who by labor repairs an article, including a vehicle, motorboat, vessel, or outboard motor, may retain possession of the article until:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.001/1">
<num value="1">(1)</num>
<content>the amount due under the contract for the repairs is paid; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.001/2">
<num value="2">(2)</num>
<content>if no amount is specified by contract, the reasonable and usual compensation is paid.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.001/b">
<num value="b">(b)</num>
<content>If a worker relinquishes possession of a motor vehicle, motorboat, vessel, or outboard motor in return for a check, money order, or a credit card transaction on which payment is stopped, has been dishonored because of insufficient funds, no funds or because the drawer or maker of the order or the credit card holder has no account or the account upon which it was drawn or the credit card account has been closed, the lien provided by this section continues to exist and the worker is entitled to possession of the vehicle, motorboat, vessel, or outboard motor until the amount due is paid, unless the vehicle, motorboat, vessel, or outboard motor is possessed by a person who became a bona fide purchaser of the vehicle after a stop payment order was made. A person entitled to possession of property under this subsection is entitled to take possession thereof in accordance with the provisions of Section 9.609, Business & Commerce Code.</content>
<continuation>(b-1) Except as provided by Subsection (b), a lien provided by this section on a motor vehicle, motorboat, vessel, or outboard motor is released when a worker:</continuation>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.001/1">
<num value="1">(1)</num>
<content>receives good and sufficient payment of the amounts due under Subsection (a) and, if applicable, Subsection (d); or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.001/2">
<num value="2">(2)</num>
<content>relinquishes possession of the motor vehicle, motorboat, vessel, or outboard motor.</content>
<continuation>(b-2) A worker's right to possession under this section may not be assigned to a third party in return for payment of any amount due under Subsection (a) or (d).</continuation>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.001/c">
<num value="c">(c)</num>
<chapeau>A worker may take possession of an article under Subsection (b) only if the person obligated under the repair contract has signed a notice stating that the article may be subject to repossession under this section. A notice under this subsection must be:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.001/1">
<num value="1">(1)</num>
<content>separate from the written repair contract; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.001/2">
<num value="2">(2)</num>
<content>printed on the written repair contract, credit agreement, or other document in type that is boldfaced, capitalized, underlined, or otherwise set out from surrounding written material so as to be conspicuous with a separate signature line.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.001/d">
<num value="d">(d)</num>
<content>A worker who takes possession of an article under Subsection (b) may require a person obligated under the repair contract to pay the costs of repossession as a condition of reclaiming the article only to the extent of the reasonable fair market value of the services required to take possession of the article. For the purpose of this subsection, charges represent the fair market value of the services required to take possession of an article if the charges represent the actual cost incurred by the worker in taking possession of the article.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.001/e">
<num value="e">(e)</num>
<content>A worker may not transfer to a third party, and a person who performs repossession services may not accept, a check, money order, or credit card transaction that is received as payment for repair of an article and that is returned to the worker because of insufficient funds or no funds, because the drawer or maker of the check or money order or the credit card holder has no account, or because the account on which the check or money order is drawn or the credit card account has been closed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.001/f">
<num value="f">(f)</num>
<content>A person commits an offense if the person transfers or accepts a check, money order, or credit card transaction in violation of Subsection (e). An offense under this subsection is a Class B misdemeanor.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.001/g">
<num value="g">(g)</num>
<content>A motor vehicle that is repossessed under this section shall be promptly delivered to the location where the repair was performed or a vehicle storage facility licensed under Chapter 2303, Occupations Code. The motor vehicle must remain at the repair location or a licensed vehicle storage facility at all times until the motor vehicle is lawfully returned to the motor vehicle's owner or a lienholder or is disposed of as provided by this subchapter.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3579, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 18, Sec. 6(b), eff. Oct. 2, 1984; Acts 1985, 69th Leg., ch. 275, Sec. 1, eff. June 5, 1985; Acts 1993, 73rd Leg., ch. 754, Sec. 1, 2, eff. Sept. 1, 1993; Acts 1995, 74th Leg., ch. 375, Sec. 1, eff. Sept. 1, 1995; Acts 1999, 76th Leg., ch. 414, Sec. 2.38, eff. July 1, 2001; Acts 1999, 76th Leg., ch. 978, Sec. 1, eff. Sept. 1, 1999; Acts 2003, 78th Leg., ch. 1276, Sec. 14A.807, eff. Sept. 1, 2003.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1058 (H.B. 2076), Sec. 1, eff. June 19, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c70/scA/s70.002">
<num value="70.002">Sec. 70.002.</num>
<heading>LIENS ON GARMENTS</heading>
<chapeau>A person with whom a garment is left for repair, alteration, dyeing, cleaning, laundering, or pressing may retain possession of the garment until:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.002/1">
<num value="1">(1)</num>
<content>the amount due the person under the contract for the work is paid; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.002/2">
<num value="2">(2)</num>
<content>if no amount is specified by contract, the reasonable and usual compensation is paid.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3580, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c70/scA/s70.003">
<num value="70.003">Sec. 70.003.</num>
<heading>STABLE KEEPER'S, GARAGEMAN'S, PASTURER'S, AND COTTON GINNER'S LIEN'S</heading>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.003/a">
<num value="a">(a)</num>
<content>A stable keeper with whom an animal is left for care has a lien on the animal for the amount of the charges for the care.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.003/b">
<num value="b">(b)</num>
<content>An owner or lessee of a pasture with whom an animal is left for grazing has a lien on the animal for the amount of charges for the grazing.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.003/c">
<num value="c">(c)</num>
<content>A garageman with whom a motor vehicle, motorboat, vessel, or outboard motor is left for care has a lien on the motor vehicle, motorboat, vessel, or outboard motor for the amount of the charges for the care, including reasonable charges for towing the motor vehicle, motorboat, vessel, or outboard motor to the garageman's place of business and excluding charges for repairs.</content>
<continuation>(d)(1) A cotton ginner to whom a cotton crop has been delivered for processing or who, under an agreement, is to be paid for harvesting a cotton crop has a lien on the cotton processed or harvested for the amount of the charges for the processing or harvesting. The lienholder is entitled to retain possession of the cotton until the amount of the charge due under an agreement is paid or, if an amount is not specified by agreement, the reasonable and usual compensation is paid. If the cotton owner's address is known and the amount of the charge is not paid before the 31st day after the date the cotton ginner's work is completed or the date payment is due under a written agreement, whichever is later, the lienholder shall request the owner to pay the unpaid charge due and shall notify the owner and any other person having a lien on the cotton which is properly recorded under applicable law with the secretary of state of the fact that unless payment is made not later than the 15th day after the date the notice is received, the lienholder is entitled to sell the cotton under any procedure authorized by Section 9.610, Business & Commerce Code. If the cotton owner's address is not known and the amount of the charge is not paid before the 61st day after the date the cotton ginner's work is completed or the date payment is due under a written agreement, whichever is later, the lienholder is entitled to sell the cotton without notice at a commercially reasonable sale. The proceeds of a sale under this subsection shall be applied first to charges due under this subsection, and any remainder shall be paid in appropriate proportion to:</continuation>
<subparagraph identifier="/us/tx/pr/t5/c70/scA/s70.003/A">
<num value="A">(A)</num>
<content>any other person having a lien on the cotton which is properly recorded under applicable law with the secretary of state; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c70/scA/s70.003/B">
<num value="B">(B)</num>
<content>the cotton owner.</content>
</subparagraph>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.003/2">
<num value="2">(2)</num>
<content>Nothing in this subsection shall be construed to place an affirmative burden on the cotton ginner to perform any lien searches except as may be appropriate to provide notices required by this section.</content>
</paragraph>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3580, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 629, Sec. 1, eff. June 14, 1989; Acts 1997, 75th Leg., ch. 462, Sec. 1, 2, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 414, Sec. 2.39, eff. July 1, 2001.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 80 (S.B. 543), Sec. 1, eff. September 1, 2009.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c70/scA/s70.004">
<num value="70.004">Sec. 70.004.</num>
<heading>POSSESSION OF MOTOR VEHICLE, MOTORBOAT, VESSEL, OR OUTBOARD MOTOR</heading>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.004/a">
<num value="a">(a)</num>
<content>A holder of a lien under Section 70.003 on a motor vehicle, motorboat, vessel, or outboard motor who obtains possession of the motor vehicle, motorboat, vessel, or outboard motor under a state law or city ordinance shall give notice for a motor vehicle, motorboat, vessel, or outboard motor registered in this state to the last known registered owner and each lienholder of record not later than the fifth day after the day possession is obtained. If the motor vehicle, motorboat, vessel, or outboard motor is registered outside this state, the notice shall be given to the last known registered owner and each lienholder of record not later than the 14th day after the day possession is obtained.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.004/b">
<num value="b">(b)</num>
<chapeau>Except as provided by Subsection (c), the notice must be sent by certified mail with return receipt requested and must contain:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.004/1">
<num value="1">(1)</num>
<content>a request to remove the motor vehicle, motorboat, vessel, or outboard motor;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.004/2">
<num value="2">(2)</num>
<content>a request for payment;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.004/3">
<num value="3">(3)</num>
<content>the location of the motor vehicle, motorboat, vessel, or outboard motor; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.004/4">
<num value="4">(4)</num>
<content>the amount of accrued charges.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.004/c">
<num value="c">(c)</num>
<chapeau>The notice may be given by publishing the notice once in a newspaper of general circulation in the county in which the motor vehicle, motorboat, vessel, or outboard motor is stored if:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.004/1">
<num value="1">(1)</num>
<content>the motor vehicle, motorboat, vessel, or outboard motor is registered in another state;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.004/2">
<num value="2">(2)</num>
<content>the holder of the lien submits a written request by certified mail, return receipt requested, to the governmental entity with which the motor vehicle, motorboat, vessel, or outboard motor is registered requesting information relating to the identity of the last known registered owner and any lienholder of record;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.004/3">
<num value="3">(3)</num>
<chapeau>the holder of the lien:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c70/scA/s70.004/A">
<num value="A">(A)</num>
<content>is advised in writing by the governmental entity with which the motor vehicle, motorboat, vessel, or outboard motor is registered that the entity is unwilling or unable to provide information on the last known registered owner or any lienholder of record; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c70/scA/s70.004/B">
<num value="B">(B)</num>
<content>does not receive a response from the governmental entity with which the motor vehicle, motorboat, vessel, or outboard motor is registered on or before the 21st day after the date the holder of the lien submits a request under Subdivision (2);</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.004/4">
<num value="4">(4)</num>
<content>the identity of the last known registered owner cannot be determined;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.004/5">
<num value="5">(5)</num>
<content>the registration does not contain an address for the last known registered owner; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.004/6">
<num value="6">(6)</num>
<content>the holder of the lien cannot determine the identities and addresses of the lienholders of record.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.004/d">
<num value="d">(d)</num>
<content>The holder of the lien is not required to publish notice under Subsection (c) if a correctly addressed notice is sent with sufficient postage under Subsection (b) and is returned as unclaimed or refused or with a notation that the addressee is unknown or has moved without leaving a forwarding address.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.004/e">
<num value="e">(e)</num>
<content>A person is entitled to fees for towing, impoundment, preservation, and notification and to reasonable storage fees for up to five days before the day that the notice is mailed or published, as applicable. After the day that the notice is mailed or published, the person is entitled to reasonable storage, impoundment, and preservation fees until the motor vehicle, motorboat, vessel, or outboard motor is removed and accrued charges are paid.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.004/f">
<num value="f">(f)</num>
<content>A person charging fees under Subsection (e) commits an offense if the person charges a storage fee for a period of time not authorized by that subsection. An offense under this subsection is punishable by a fine of not less than $200 nor more than $1,000.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3580, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 18, Sec. 6(c), eff. Oct. 2, 1984; Acts 1985, 69th Leg., ch. 308, Sec. 1, eff. Sept. 1, 1985; Acts 1989, 71st Leg., ch. 629, Sec. 2, eff. June 14, 1989; Acts 1999, 76th Leg., ch. 70, Sec. 2, eff. Sept. 1, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c70/scA/s70.005">
<num value="70.005">Sec. 70.005.</num>
<heading>SALE OF PROPERTY</heading>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.005/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (c), a person holding a lien under this subchapter on property other than a motor vehicle subject to Chapter 501, Transportation Code, or cotton under Section 70.003(d), who retains possession of the property for 60 days after the day that the charges accrue shall request the owner to pay the unpaid charges due if the owner's residence is in this state and known. If the charges are not paid before the 11th day after the day of the request, the lienholder may, after 20 days' notice, sell the property at a public sale, or if the lien is on a garment, at a public or private sale.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.005/b">
<num value="b">(b)</num>
<content>Except as provided by Subsection (c), if the residence of the owner of property subject to sale under this section is not in this state or not known, the lienholder may sell the property without notice at a public sale after the 60th day after the day that the unpaid charges accrued.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.005/c">
<num value="c">(c)</num>
<content>A person holding a lien under Section 70.003(a) on an animal fed in confinement for slaughter may enforce that lien in any manner authorized by Sections 9.610-9.619, Business & Commerce Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.005/d">
<num value="d">(d)</num>
<content>The lienholder shall apply the proceeds of a sale under this section to the charges. If the lien is on a garment, the lienholder shall apply the proceeds to the charges and the reasonable costs of holding the sale. The lienholder shall pay excess proceeds to the person entitled to them.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3581, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 30.247, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 249, Sec. 1, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 462, Sec. 3, 4, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 414, Sec. 2.40, eff. July 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c70/scA/s70.006">
<num value="70.006">Sec. 70.006.</num>
<heading>SALE OR DISPOSAL OF MOTOR VEHICLE, MOTORBOAT, VESSEL, OR OUTBOARD MOTOR</heading>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.006/a">
<num value="a">(a)</num>
<content>A holder of a lien under this subchapter on a motor vehicle subject to Chapter 501, Transportation Code, or on a motorboat, vessel, or outboard motor for which a certificate of title is required under Subchapter B, Chapter 31, Parks and Wildlife Code, as amended, who retains possession of the motor vehicle, motorboat, vessel, or outboard motor shall give written notice to the owner and each holder of a lien recorded on the certificate of title. Subject to Subsection (a-1), a holder of a possessory lien on a motor vehicle under Section 70.001, other than a person licensed as a franchised dealer under Chapter 2301, Occupations Code, shall file a copy of the notice and all information required by this section with the county tax assessor-collector's office in the county in which the repairs were made with an administrative fee of $25 payable to the county tax assessor-collector. If the motor vehicle, motorboat, vessel, or outboard motor is registered outside this state, the holder of a lien under this subchapter who retains possession during that period shall give notice to the last known registered owner and each lienholder of record.</content>
<continuation>(a-1) A copy of the notice and information required to be filed with the county tax assessor-collector's office under Subsection (a) must be filed:</continuation>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.006/1">
<num value="1">(1)</num>
<content>for a motor vehicle that has a gross vehicle weight rating of less than 16,000 pounds, not later than the 30th day after the date on which the charges accrue; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.006/2">
<num value="2">(2)</num>
<content>for a motor vehicle that has a gross vehicle weight rating equal to or greater than 16,000 pounds, not later than the later of the 30th day after the date on which the charges accrue or the 30th day before the date of a proposed sale or disposition of the motor vehicle under Subsection (f) or (f-1).</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.006/b">
<num value="b">(b)</num>
<content>Except as provided by Subsection (c), the notice must be sent by certified mail with return receipt requested and must include the amount of the charges and a request for payment.</content>
<continuation>(b-1) A holder of a possessory lien on a motor vehicle under Section 70.001, other than a person licensed as a franchised dealer under Chapter 2301, Occupations Code, who is required to give notice to a lienholder of record under this section must include in the notice:</continuation>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.006/1">
<num value="1">(1)</num>
<content>the physical address of the real property at which the repairs to the motor vehicle were made;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.006/2">
<num value="2">(2)</num>
<content>the legal name of the person that holds the possessory lien for which the notice is required;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.006/3">
<num value="3">(3)</num>
<content>the taxpayer identification number or employer identification number, as applicable, of the person that holds the possessory lien for which the notice is required;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.006/4">
<num value="4">(4)</num>
<content>a signed copy of the work order authorizing the repairs on the motor vehicle; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.006/5">
<num value="5">(5)</num>
<content>if applicable, the proposed date of the sale or disposition of the motor vehicle under Subsection (f) or (f-1).</content>
<continuation>(b-2) If the holder of a possessory lien required to give notice in accordance with Subsection (b-1) does not comply with that subsection, a lien recorded on the certificate of title of the motor vehicle is superior to the possessory lienholder's lien.</continuation>
<continuation>(b-3) A person commits an offense if the person knowingly provides false or misleading information in a notice required by this section. An offense under this subsection is a Class B misdemeanor.</continuation>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.006/c">
<num value="c">(c)</num>
<chapeau>The notice may be given by publishing the notice once in a newspaper of general circulation in the county in which the motor vehicle, motorboat, vessel, or outboard motor is stored if:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.006/1">
<num value="1">(1)</num>
<content>the holder of the lien submits a written request by certified mail, return receipt requested, to the governmental entity with which the motor vehicle, motorboat, vessel, or outboard motor is registered requesting information relating to the identity of the last known registered owner and any lienholder of record;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.006/2">
<num value="2">(2)</num>
<chapeau>the holder of the lien:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c70/scA/s70.006/A">
<num value="A">(A)</num>
<content>is advised in writing by the governmental entity with which the motor vehicle, motorboat, vessel, or outboard motor is registered that the entity is unwilling or unable to provide information on the last known registered owner or any lienholder of record; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c70/scA/s70.006/B">
<num value="B">(B)</num>
<content>does not receive a response from the governmental entity with which the motor vehicle, motorboat, vessel, or outboard motor is registered on or before the 21st day after the date the holder of the lien submits a request under Subdivision (1);</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.006/3">
<num value="3">(3)</num>
<content>the identity of the last known registered owner cannot be determined;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.006/4">
<num value="4">(4)</num>
<content>the registration does not contain an address for the last known registered owner; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.006/5">
<num value="5">(5)</num>
<content>the holder of the lien cannot determine the identities and addresses of the lienholders of record.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.006/d">
<num value="d">(d)</num>
<content>The holder of the lien is not required to publish notice under Subsection (c) if a correctly addressed notice is sent with sufficient postage under Subsection (b) and is returned as unclaimed or refused or with a notation that the addressee is unknown or has moved without leaving a forwarding address.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.006/e">
<num value="e">(e)</num>
<content>After notice is given under this section to the owner of or the holder of a lien on the motor vehicle, motorboat, vessel, or outboard motor, the owner or holder of the lien may obtain possession of the motor vehicle, motorboat, vessel, or outboard motor by paying all charges due to the holder of a lien under this subchapter before the 31st day after the date a copy of the notice is filed with the county tax assessor-collector's office.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.006/f">
<num value="f">(f)</num>
<content>If the charges are not paid before the 31st day after the date that a copy of the notice required by Subsection (a) is filed with the county tax assessor-collector's office, the lienholder may sell the motor vehicle, motorboat, vessel, or outboard motor at a public sale and apply the proceeds to the charges. The lienholder shall pay excess proceeds to the person entitled to them. The public sale may not take place before the 31st day after the date a copy of the notice is filed with the county tax assessor-collector's office.</content>
<continuation>(f-1) If the charges are not paid before the 31st day after the date that a copy of the notice required by Subsection (a) is filed with the county tax assessor-collector's office and the property that is the subject of the notice is a motor vehicle, the lienholder may, in lieu of selling the vehicle under Subsection (f), dispose of the vehicle in accordance with Subchapter D, Chapter 683, Transportation Code, if the lienholder determines that:</continuation>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.006/1">
<num value="1">(1)</num>
<content>the vehicle's only residual value is as a source of parts or scrap metal; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.006/2">
<num value="2">(2)</num>
<content>it is not economical to dispose of the vehicle at a public sale.</content>
<continuation>(f-2) If the lienholder disposes of the property under Subsection (f-1), the lienholder shall apply the fair market value of the motor vehicle to the charges due to the lienholder.</continuation>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.006/g">
<num value="g">(g)</num>
<content>After providing notice in accordance with this section, a holder of a possessory lien on a motor vehicle under Section 70.001, other than a person licensed as a franchised dealer under Chapter 2301, Occupations Code, shall, on request, allow an owner and each lienholder of record to inspect or arrange an inspection of the motor vehicle by a qualified professional to verify that the repairs were made. The inspection must be completed before the date of the public sale authorized by Subsection (f).</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.006/h">
<num value="h">(h)</num>
<content>Not later than the 15th business day after the date the county tax assessor-collector receives notice under this section, the county tax assessor-collector shall provide a copy of the notice that indicates the date the notice was filed with the county tax assessor-collector to the owner of the motor vehicle and each holder of a lien recorded on the certificate of title of the motor vehicle. Except as provided by this subsection, the county tax assessor-collector shall provide the notice required by this section in the same manner as a holder of a lien is required to provide a notice under this section, except that the county tax assessor-collector is not required to use certified mail. Notice under this section is required regardless of the date on which the charges on which the possessory lien is based accrued.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3581, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 18, Sec. 6(d), eff. Oct. 2, 1984; Acts 1997, 75th Leg., ch. 165, Sec. 30.248, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 70, Sec. 3, eff. Sept. 1, 1999.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 80 (S.B. 543), Sec. 2, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 405 (S.B. 690), Sec. 7, eff. January 1, 2012.
Acts 2011, 82nd Leg., R.S., Ch. 1204 (S.B. 266), Sec. 1, eff. September 1, 2011.
Acts 2015, 84th Leg., R.S., Ch. 1058 (H.B. 2076), Sec. 2, eff. September 1, 2015.
Acts 2017, 85th Leg., R.S., Ch. 1061 (H.B. 3131), Sec. 5, eff. September 1, 2017.
Acts 2017, 85th Leg., R.S., Ch. 1061 (H.B. 3131), Sec. 6, eff. September 1, 2017.
Acts 2021, 87th Leg., R.S., Ch. 709 (H.B. 2879), Sec. 1, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c70/scA/s70.007">
<num value="70.007">Sec. 70.007.</num>
<heading>UNCLAIMED EXCESS</heading>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.007/a">
<num value="a">(a)</num>
<content>If a person entitled to excess proceeds under this subchapter is not known or has moved from this state or the county in which the lien accrued, the person holding the excess shall pay it to the county treasurer of the county in which the lien accrued. The treasurer shall issue the person a receipt for the payment.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.007/b">
<num value="b">(b)</num>
<content>If the person entitled to the excess does not claim it before two years after the day it is paid to the treasurer, the excess becomes a part of the county's general fund.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3582, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c70/scA/s70.008">
<num value="70.008">Sec. 70.008.</num>
<heading>ATTORNEY'S FEES</heading>
<content>The court in a suit concerning possession of a motor vehicle, motorboat, vessel, or outboard motor and a debt due on it may award reasonable attorney's fees to the prevailing party.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3582, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 18, Sec. 6(e), eff. Oct. 2, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c70/scA/s70.009">
<num value="70.009">Sec. 70.009.</num>
<heading>PLASTIC FABRICATOR LIENS</heading>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.009/a">
<num value="a">(a)</num>
<content>A plastic fabricator has a lien on any die, mold, form, or pattern in his possession that belongs to a customer for the amount due from the customer for plastic fabrication work performed with the die, mold, form, or pattern. The plastic fabricator may retain possession of the die, mold, form, or pattern until the amount due is paid.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.009/b">
<num value="b">(b)</num>
<chapeau>In this section:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.009/1">
<num value="1">(1)</num>
<content>"Customer" means a person who contracts with or causes a plastic fabricator to use a die, mold, form, or pattern to manufacture, assemble, or otherwise make a plastic product or products.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.009/2">
<num value="2">(2)</num>
<content>"Plastic fabricator" means a person, including a tool or die maker, who manufactures or causes to be manufactured, or who assembles or improves, a die, form, mold, or pattern for a customer, or who uses or contracts to use a die, mold, form, or pattern to manufacture, assemble, or otherwise make a plastic product or products for a customer.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 357, Sec. 1, eff. Sept. 1, 1985.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c70/scA/s70.010">
<num value="70.010">Sec. 70.010.</num>
<heading>LIENS FOR VETERINARY CARE CHARGES FOR LARGE ANIMALS</heading>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.010/a">
<num value="a">(a)</num>
<content>In this section, "large animal" means exotic livestock or a cow, horse, mule, ass, sheep, goat, llama, alpaca, farm elk, or hog. The term does not include a common household pet such as a cat or dog.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.010/b">
<num value="b">(b)</num>
<content>A veterinarian licensed under Chapter 801, Occupations Code, has a lien on a large animal and the proceeds from the disposition of the large animal to secure the cost of veterinary care the veterinarian provided to the large animal.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.010/c">
<num value="c">(c)</num>
<chapeau>A lien under this section:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.010/1">
<num value="1">(1)</num>
<content>attaches on the 20th day after the date the veterinarian first provides care to the large animal;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.010/2">
<num value="2">(2)</num>
<content>attaches regardless of whether the veterinarian retains possession of the large animal;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.010/3">
<num value="3">(3)</num>
<content>takes priority over all other liens on the large animal for the period during which the veterinarian retains possession of the large animal, regardless of whether the lien under this section was created or perfected after the date on which another lien was created or perfected, if the veterinarian retains possession; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scA/s70.010/4">
<num value="4">(4)</num>
<content>has the priority with respect to other liens as provided by Subchapter C, Chapter 9, Business & Commerce Code, if the veterinarian does not retain possession.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.010/d">
<num value="d">(d)</num>
<content>The veterinarian may retain possession of a large animal under this section and enforce a lien under this section as provided by Section 70.005(c).</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scA/s70.010/e">
<num value="e">(e)</num>
<content>A veterinarian who does not retain possession of a large animal under this section may enforce a lien under this section in the same manner as a statutory residential landlord's lien.</content>
</subsection>
<sourceCredit>Added by Acts 2009, 81st Leg., R.S., Ch. 1387 (S.B. 1806), Sec. 1, eff. September 1, 2009.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t5/c70/scB">
<num value="B">SUBCHAPTER B.</num>
<heading>LIENS ON VESSELS</heading>
<section identifier="/us/tx/pr/t5/c70/scB/s70.101">
<num value="70.101">Sec. 70.101.</num>
<heading>GENERAL LIEN ON VESSELS</heading>
<content>A person who furnishes supplies or materials or who performs repairs or labor for or on account of a domestic vessel that is owned in whole or part in this state has a lien for the person's charges.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3582, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c70/scB/s70.102">
<num value="70.102">Sec. 70.102.</num>
<heading>LIEN OF NAVIGATION DISTRICT OR PORT</heading>
<subsection identifier="/us/tx/pr/t5/c70/scB/s70.102/a">
<num value="a">(a)</num>
<content>A navigation district or port within the territorial limits of this state that furnishes supplies or materials, performs repairs or labor, or provides a facility or service for which charges are specified in its official published port tariff for or on account of a domestic vessel that is owned in whole or part in this state has a maritime lien for the amount of its charges.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scB/s70.102/b">
<num value="b">(b)</num>
<content>A lien under this section may be enforced in rem. A plaintiff in an action to enforce the lien need not allege or prove that credit was given to the vessel.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3582, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c70/scB/s70.103">
<num value="70.103">Sec. 70.103.</num>
<heading>PROPERTY SUBJECT TO LIEN</heading>
<content>A lien under this subchapter attaches to the vessel and its tackle, apparel, furniture, and freight money.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3583, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c70/scB/s70.104">
<num value="70.104">Sec. 70.104.</num>
<heading>PERSONS WHO MAY BIND VESSEL</heading>
<subsection identifier="/us/tx/pr/t5/c70/scB/s70.104/a">
<num value="a">(a)</num>
<chapeau>The following persons are presumed to be authorized by the owner of a vessel to incur charges that give rise to a lien under this subchapter:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c70/scB/s70.104/1">
<num value="1">(1)</num>
<content>the managing owner;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scB/s70.104/2">
<num value="2">(2)</num>
<content>the ship's husband;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scB/s70.104/3">
<num value="3">(3)</num>
<content>the master;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scB/s70.104/4">
<num value="4">(4)</num>
<content>the local agent; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scB/s70.104/5">
<num value="5">(5)</num>
<content>a person entrusted with management of the vessel at the port of supply.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scB/s70.104/b">
<num value="b">(b)</num>
<content>A person tortiously or unlawfully in possession or charge of a vessel may not bind the vessel.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3583, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t5/c70/scC">
<num value="C">SUBCHAPTER C.</num>
<heading>STOCK BREEDER'S LIEN</heading>
<section identifier="/us/tx/pr/t5/c70/scC/s70.201">
<num value="70.201">Sec. 70.201.</num>
<heading>STOCK BREEDER'S LIEN</heading>
<content>An owner or keeper of a stallion, jack, bull, or boar confined to be bred for profit has a preference lien on the offspring of the animal for the amount of the charges for the breeding services, unless the owner or keeper misrepresents the animal by false pedigree.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3583, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c70/scC/s70.202">
<num value="70.202">Sec. 70.202.</num>
<heading>ENFORCEMENT OF LIEN</heading>
<content>The lien may be enforced in the same manner as a statutory landlord's lien. The lien remains in force for 10 months from the day that the offspring is born, but the lien may not be enforced until five months after the date of birth of the offspring.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3583, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t5/c70/scD">
<num value="D">SUBCHAPTER D.</num>
<heading>AIRCRAFT REPAIR AND MAINTENANCE LIEN</heading>
<section identifier="/us/tx/pr/t5/c70/scD/s70.301">
<num value="70.301">Sec. 70.301.</num>
<heading>LIEN</heading>
<subsection identifier="/us/tx/pr/t5/c70/scD/s70.301/a">
<num value="a">(a)</num>
<chapeau>A person who stores, fuels, repairs, or performs maintenance work on an aircraft has a lien on the aircraft for:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c70/scD/s70.301/1">
<num value="1">(1)</num>
<content>the amount due under a contract for the storage, fuel, repairs, or maintenance work; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scD/s70.301/2">
<num value="2">(2)</num>
<content>if no amount is specified by contract, the reasonable and usual compensation for the storage, fuel, repairs, or maintenance work.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scD/s70.301/b">
<num value="b">(b)</num>
<chapeau>This subchapter applies to a contract for storage only if it is:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c70/scD/s70.301/1">
<num value="1">(1)</num>
<content>written; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scD/s70.301/2">
<num value="2">(2)</num>
<content>oral and provides for a storage period of at least 30 days.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 250, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1995, 74th Leg., ch. 946, Sec. 1, eff. Aug. 28, 1995; Acts 2001, 77th Leg., ch. 1171, Sec. 1, eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c70/scD/s70.302">
<num value="70.302">Sec. 70.302.</num>
<heading>POSSESSION</heading>
<subsection identifier="/us/tx/pr/t5/c70/scD/s70.302/a">
<num value="a">(a)</num>
<content>A holder of a lien under this subchapter may retain possession of the aircraft subject to the lien until the amount due is paid.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scD/s70.302/b">
<num value="b">(b)</num>
<content>Except as provided by Subsection (c), if the holder of a lien under this subchapter relinquishes possession of the aircraft before the amount due is paid, the person may retake possession of the aircraft as provided by Section 9.609, Business & Commerce Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scD/s70.302/c">
<num value="c">(c)</num>
<content>The holder of a lien under this subchapter may not retake possession of the aircraft from a bona fide purchaser for value who purchases the aircraft without knowledge of the lien before the date the lien is recorded under Section 70.303.</content>
</subsection>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 250, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1999, 76th Leg., ch. 414, Sec. 2.41, eff. July 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c70/scD/s70.303">
<num value="70.303">Sec. 70.303.</num>
<heading>RECORDING OF LIEN: AIRCRAFT REGISTERED IN UNITED STATES</heading>
<chapeau>A holder of a lien under this subchapter may record the lien on the aircraft by filing with the Federal Aviation Administration Aircraft Registry not later than the 180th day after the date of the completion of the contractual storage period or the performance of the last repair or maintenance a verified document in the form and manner required by applicable federal laws and regulations that states:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c70/scD/s70.303/1">
<num value="1">(1)</num>
<content>the name, address, and telephone number of the holder of the lien under this subchapter;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scD/s70.303/2">
<num value="2">(2)</num>
<content>the amount due for storage, fuel, repairs, or maintenance;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scD/s70.303/3">
<num value="3">(3)</num>
<content>a complete description of the aircraft; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scD/s70.303/4">
<num value="4">(4)</num>
<content>the name and address of the owner of the aircraft and the number assigned the aircraft by the Federal Aviation Administration, if known.</content>
</paragraph>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 250, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1995, 74th Leg., ch. 946, Sec. 1, eff. Aug. 28, 1995; Acts 2001, 77th Leg., ch. 1171, Sec. 2, eff. Sept. 1, 2001.
Amended by:
Acts 2005, 79th Leg., Ch. 677 (S.B. 149), Sec. 1, eff. June 17, 2005.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c70/scD/s70.3031">
<num value="70.3031">Sec. 70.3031.</num>
<heading>RECORDING OF LIEN: AIRCRAFT NOT REGISTERED IN UNITED STATES</heading>
<subsection identifier="/us/tx/pr/t5/c70/scD/s70.3031/a">
<num value="a">(a)</num>
<chapeau>A holder of a lien under this subchapter on an aircraft that is registered in a nation other than the United States or that is not registered in any national jurisdiction may record the lien on the aircraft by filing with the secretary of state not later than the 180th day after the date of the completion of the contractual storage period or the performance of the last repair, fueling, or maintenance an affidavit that states:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c70/scD/s70.3031/1">
<num value="1">(1)</num>
<content>the name, address, and telephone number of the holder of the lien under this subchapter;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scD/s70.3031/2">
<num value="2">(2)</num>
<content>the amount due for storage, repairs, fuel, or maintenance;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scD/s70.3031/3">
<num value="3">(3)</num>
<content>a complete description of the aircraft; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scD/s70.3031/4">
<num value="4">(4)</num>
<content>the name and last known address of the owner of the aircraft and the number assigned the aircraft by the applicable jurisdiction, if known.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scD/s70.3031/b">
<num value="b">(b)</num>
<content>An inaccurate address stated under Subsection (a)(4) does not invalidate the affidavit.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scD/s70.3031/c">
<num value="c">(c)</num>
<content>The secretary of state shall maintain a record of information filed with the secretary of state under this section and index the records in the name of the owner of the aircraft.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scD/s70.3031/d">
<num value="d">(d)</num>
<chapeau>The fee for filing information with the secretary of state under this section is:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c70/scD/s70.3031/1">
<num value="1">(1)</num>
<content>$15 if the information is communicated in writing and consists of one or two pages;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scD/s70.3031/2">
<num value="2">(2)</num>
<content>$30 if the information is communicated in writing and consists of more than two pages; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scD/s70.3031/3">
<num value="3">(3)</num>
<content>$5 if the information is communicated by another medium authorized by the secretary of state by rule.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 677 (S.B. 149), Sec. 2, eff. June 17, 2005.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c70/scD/s70.304">
<num value="70.304">Sec. 70.304.</num>
<heading>NOTICE TO OWNER AND LIENHOLDERS</heading>
<subsection identifier="/us/tx/pr/t5/c70/scD/s70.304/a">
<num value="a">(a)</num>
<chapeau>Not later than the 60th day after the date of the completion of the contractual storage period or the performance of the last fueling, repair, or maintenance, a holder of a lien under this subchapter who retains possession of the aircraft shall notify the owner shown on the certificate of registration and each holder of a lien on the aircraft as shown by the records maintained for that purpose by the Federal Aviation Administration Aircraft Registry or the secretary of state. The notice must state:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c70/scD/s70.304/1">
<num value="1">(1)</num>
<content>the name, address, and telephone number of the holder of the lien under this subchapter;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scD/s70.304/2">
<num value="2">(2)</num>
<content>the amount due for storage, fuel, repairs, or maintenance;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scD/s70.304/3">
<num value="3">(3)</num>
<content>a complete description of the aircraft; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scD/s70.304/4">
<num value="4">(4)</num>
<content>the legal right of the holder of the lien under this subchapter to sell the aircraft at public auction and apply the proceeds to the amount due.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scD/s70.304/b">
<num value="b">(b)</num>
<content>The notice must be delivered by certified or registered mail, return receipt requested.</content>
</subsection>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 250, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1991, 72nd Leg., ch. 538, Sec. 1, eff. June 15, 1991; Acts 1995, 74th Leg., ch. 946, Sec. 1, eff. Aug. 28, 1995; Acts 2001, 77th Leg., ch. 1171, Sec. 3, eff. Sept. 1, 2001.
Amended by:
Acts 2005, 79th Leg., Ch. 677 (S.B. 149), Sec. 3, eff. June 17, 2005.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c70/scD/s70.305">
<num value="70.305">Sec. 70.305.</num>
<heading>SALE OF AIRCRAFT</heading>
<content>If the holder of a lien under this subchapter provides the notice required by Section 70.304 and the amount due remains unpaid after the 90th day after the date of the completion of the contractual storage period or the performance of the last fueling, repair, or maintenance, the holder of the lien may sell the aircraft at a public sale and apply the proceeds to the amount due. The lienholder shall pay any excess proceeds to the person entitled to them.</content>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 250, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1995, 74th Leg., ch. 946, Sec. 1, eff. Aug. 28, 1995; Acts 2001, 77th Leg., ch. 1171, Sec. 4, eff. Sept. 1, 2001.
Amended by:
Acts 2005, 79th Leg., Ch. 677 (S.B. 149), Sec. 4, eff. June 17, 2005.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c70/scD/s70.306">
<num value="70.306">Sec. 70.306.</num>
<heading>ATTORNEY'S FEES</heading>
<content>The court in a suit brought under this subchapter may award reasonable attorney's fees to the prevailing party.</content>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 250, Sec. 1, eff. Sept. 1, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c70/scD/s70.307">
<num value="70.307">Sec. 70.307.</num>
<heading>CRIMINAL OFFENSE: IMPROPERLY OBTAINING POSSESSION OF AIRCRAFT SUBJECT TO LIEN</heading>
<subsection identifier="/us/tx/pr/t5/c70/scD/s70.307/a">
<num value="a">(a)</num>
<content>A person commits an offense if the person, through surreptitious removal or by trick, fraud, or device perpetrated on the holder of the lien, obtains possession of all or part of an aircraft that is subject to a lien under this subchapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scD/s70.307/b">
<num value="b">(b)</num>
<content>An offense under this section is a Class B misdemeanor.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scD/s70.307/c">
<num value="c">(c)</num>
<content>If conduct that constitutes an offense under this section also constitutes an offense under any other law, the actor may be prosecuted under this section or the other law.</content>
</subsection>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 677 (S.B. 149), Sec. 5, eff. June 17, 2005.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t5/c70/scE">
<num value="E">SUBCHAPTER E.</num>
<heading>AGRICULTURAL LIENS</heading>
<section identifier="/us/tx/pr/t5/c70/scE/s70.401">
<num value="70.401">Sec. 70.401.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this subchapter:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c70/scE/s70.401/1">
<num value="1">(1)</num>
<content>"Agricultural crop" means a plant product that is grown, produced, or harvested as a result of an agricultural producer's farm operation.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scE/s70.401/2">
<num value="2">(2)</num>
<content>"Agricultural producer" means a person who is engaged in the business of growing, producing, or harvesting an agricultural crop.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scE/s70.401/3">
<num value="3">(3)</num>
<content>"Buyer in ordinary course of business" has the meaning assigned by Section 1.201, Business & Commerce Code.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scE/s70.401/4">
<num value="4">(4)</num>
<chapeau>"Company-owned crop" means an agricultural crop:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c70/scE/s70.401/A">
<num value="A">(A)</num>
<content>that is in the possession of a warehouse or contract purchaser located in this state and for which the agricultural producer has received full payment;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c70/scE/s70.401/B">
<num value="B">(B)</num>
<content>that is not an open storage crop; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c70/scE/s70.401/C">
<num value="C">(C)</num>
<content>for which the warehouse or the contract purchaser tenders payment and the agricultural producer, without coercion, defers payment.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scE/s70.401/5">
<num value="5">(5)</num>
<content>"Contract purchaser" means a person who has agreed under a contract to purchase an agricultural crop or otherwise pay the agricultural producer for growing, producing, or harvesting the agricultural crop. The term includes a person who, as to the transaction in question, is licensed and bonded under Chapter 14, Agriculture Code, or the United States Warehouse Act (7 U.S.C. Section 241 et seq.).</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scE/s70.401/6">
<num value="6">(6)</num>
<chapeau>"Open storage crop" means an agricultural crop that:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c70/scE/s70.401/A">
<num value="A">(A)</num>
<content>an agricultural producer delivers or transfers to:</content>
</subparagraph>
</paragraph>
<subsection identifier="/us/tx/pr/t5/c70/scE/s70.401/i">
<num value="i">(i)</num>
<chapeau>a warehouse for storage; or</chapeau>
<clause identifier="/us/tx/pr/t5/c70/scE/s70.401/ii">
<num value="ii">(ii)</num>
<content>a contract purchaser located in this state;</content>
</clause>
<subparagraph identifier="/us/tx/pr/t5/c70/scE/s70.401/B">
<num value="B">(B)</num>
<content>is not covered by a warehouse receipt; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c70/scE/s70.401/C">
<num value="C">(C)</num>
<content>is not owned by the lessee, owner, or operator of the warehouse in which the crop is stored or the contract purchaser to which the crop is delivered or transferred.</content>
</subparagraph>
<paragraph identifier="/us/tx/pr/t5/c70/scE/s70.401/7">
<num value="7">(7)</num>
<chapeau>"Secured lender" means a person that:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c70/scE/s70.401/A">
<num value="A">(A)</num>
<content>has loaned money to a warehouse or a contract purchaser; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c70/scE/s70.401/B">
<num value="B">(B)</num>
<content>holds a perfected secured lien against a company-owned crop.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scE/s70.401/8">
<num value="8">(8)</num>
<content>"Warehouse" means a facility that stores or handles any agricultural crop after the crop is harvested, including a facility operated by a person who, as to the transaction in question, is licensed and bonded under Chapter 14, Agriculture Code, or the United States Warehouse Act (7 U.S.C. Section 241 et seq.). The term includes a person engaged in the business of operating a warehouse.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 732, Sec. 1, eff. Sept. 1, 2001.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 628 (S.B. 1339), Sec. 1, eff. September 1, 2015.
Acts 2017, 85th Leg., R.S., Ch. 887 (H.B. 3063), Sec. 1, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c70/scE/s70.402">
<num value="70.402">Sec. 70.402.</num>
<heading>LIEN CREATED</heading>
<subsection identifier="/us/tx/pr/t5/c70/scE/s70.402/a">
<num value="a">(a)</num>
<content>An agricultural producer who, under a contract with a contract purchaser, is to receive consideration for selling an agricultural crop grown, produced, or harvested by the producer has a lien against that crop for the amount owed under the contract, or for the market value of the crop on the date of transfer or delivery if there is no agreement concerning the amount owed under the contract.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scE/s70.402/b">
<num value="b">(b)</num>
<chapeau>An agricultural producer who delivers or transfers an agricultural crop grown, produced, or harvested by the producer to a warehouse has a lien against that agricultural crop for the market value of the agricultural crop:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c70/scE/s70.402/1">
<num value="1">(1)</num>
<content>on the date of delivery or transfer; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scE/s70.402/2">
<num value="2">(2)</num>
<content>if there is to be a series of deliveries to the warehouse, on the date of the first delivery of the agricultural crop to the warehouse.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scE/s70.402/c">
<num value="c">(c)</num>
<content>A lien created under this subchapter is on every agricultural crop, either in raw or processed form, that has been transferred or delivered by the agricultural producer and is in the possession of the warehouse or the contract purchaser, and if the warehouse or the contract purchaser sells all or part of the crop, on the proceeds of the sale. If an open storage crop is commingled with a company-owned crop by a warehouse or a contract purchaser after the crop has been transferred or delivered, a lien created under this subchapter applies only to that portion of the agricultural crop in the possession of the warehouse or the contract purchaser in an amount that is equal to the amount of the crop transferred or delivered by the agricultural producer.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scE/s70.402/d">
<num value="d">(d)</num>
<content>For purposes of this subchapter, an agricultural crop or processed form of an agricultural crop deposited by a contract purchaser with a warehouse, whether or not a warehouse receipt is given as security, is considered to be in the possession of the contract purchaser and subject to the lien created by this subchapter.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 732, Sec. 1, eff. Sept. 1, 2001.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 628 (S.B. 1339), Sec. 2, eff. September 1, 2015.
Acts 2017, 85th Leg., R.S., Ch. 887 (H.B. 3063), Sec. 2, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c70/scE/s70.403">
<num value="70.403">Sec. 70.403.</num>
<heading>WHEN LIEN ATTACHES</heading>
<content>A lien created under this subchapter attaches on the date on which physical possession of the agricultural crop is delivered or transferred by the agricultural producer to the warehouse or to the contract purchaser or the purchaser's agent, or if there is to be a series of deliveries, on the date of the first delivery of the agricultural crop.</content>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 732, Sec. 1, eff. Sept. 1, 2001.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 628 (S.B. 1339), Sec. 3, eff. September 1, 2015.
Acts 2017, 85th Leg., R.S., Ch. 887 (H.B. 3063), Sec. 3, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c70/scE/s70.404">
<num value="70.404">Sec. 70.404.</num>
<heading>APPLICABILITY OF OTHER LAW; EFFECT ON OTHER LAW</heading>
<subsection identifier="/us/tx/pr/t5/c70/scE/s70.404/a">
<num value="a">(a)</num>
<content>Except as provided by Section 70.4045 of this code, Chapter 9, Business & Commerce Code, including applicable filing and perfection requirements, applies to a lien created under this subchapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scE/s70.404/b">
<num value="b">(b)</num>
<content>Except as provided by Subsection (c), to the extent of a conflict, this subchapter controls over any other law.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scE/s70.404/c">
<num value="c">(c)</num>
<chapeau>This subchapter does not abridge the protections afforded by any applicable law, including:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c70/scE/s70.404/1">
<num value="1">(1)</num>
<content>Chapter 14, Agriculture Code;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scE/s70.404/2">
<num value="2">(2)</num>
<content>Chapter 7, Business & Commerce Code;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scE/s70.404/3">
<num value="3">(3)</num>
<content>the United States Warehouse Act (7 U.S.C. Section 241 et seq.); or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scE/s70.404/4">
<num value="4">(4)</num>
<content>common law, including the law of bailment.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 732, Sec. 1, eff. Sept. 1, 2001.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 628 (S.B. 1339), Sec. 4, eff. September 1, 2015.
Acts 2017, 85th Leg., R.S., Ch. 887 (H.B. 3063), Sec. 4, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c70/scE/s70.4045">
<num value="70.4045">Sec. 70.4045.</num>
<heading>PERFECTION AND PRIORITY OF AGRICULTURAL LIEN ON CROPS</heading>
<subsection identifier="/us/tx/pr/t5/c70/scE/s70.4045/a">
<num value="a">(a)</num>
<chapeau>Notwithstanding Chapter 9, Business & Commerce Code, a lien created under this subchapter is perfected at the time the lien attaches under Section 70.403 and continues to be perfected if a financing statement covering the agricultural crop is filed on or before the 90th day after the date:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c70/scE/s70.4045/1">
<num value="1">(1)</num>
<content>the physical possession of the crop is delivered or transferred by the agricultural producer to the warehouse or the contract purchaser or the purchaser's agent, if there is only one delivery; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scE/s70.4045/2">
<num value="2">(2)</num>
<content>of the last delivery of the crop to the warehouse or the contract purchaser or the purchaser's agent, if there is a series of deliveries.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scE/s70.4045/b">
<num value="b">(b)</num>
<content>If a financing statement covering the agricultural crop is not filed within the time prescribed by Subsection (a)(1) or (2), as applicable, the lien is considered unperfected.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scE/s70.4045/c">
<num value="c">(c)</num>
<chapeau>Notwithstanding Chapter 9, Business & Commerce Code, and except as provided by Subsection (d), a lien created and perfected under this subchapter has priority over a conflicting security interest in or lien on the agricultural crop or the proceeds from the sale of the crop created by the warehouse or the contract purchaser in favor of a third party, regardless of the date the security interest or lien created by the warehouse or the contract purchaser attached. This subsection does not affect:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c70/scE/s70.4045/1">
<num value="1">(1)</num>
<chapeau>the validity or priority of a security interest or lien:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c70/scE/s70.4045/A">
<num value="A">(A)</num>
<content>created and perfected to secure a loan directly to the agricultural producer; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c70/scE/s70.4045/B">
<num value="B">(B)</num>
<content>created and perfected under Chapter 9, Business & Commerce Code, to secure a loan to a warehouse or a contract purchaser on a company-owned crop in favor of a secured lender;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scE/s70.4045/2">
<num value="2">(2)</num>
<content>the validity or priority of a cotton ginner's lien created under Section 70.003(d); or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scE/s70.4045/3">
<num value="3">(3)</num>
<content>the rights of a holder of a negotiable warehouse receipt.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scE/s70.4045/d">
<num value="d">(d)</num>
<chapeau>Subsection (c) does not apply to a contract purchaser who purchases an agricultural crop from an agricultural producer under a marketing contract created under:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c70/scE/s70.4045/1">
<num value="1">(1)</num>
<content>Section 52.016, Agriculture Code; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scE/s70.4045/2">
<num value="2">(2)</num>
<content>regulations adopted by the United States Department of Agriculture under Title 7 of the United States Code.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 628 (S.B. 1339), Sec. 5, eff. September 1, 2015.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 887 (H.B. 3063), Sec. 5, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c70/scE/s70.405">
<num value="70.405">Sec. 70.405.</num>
<heading>DURATION OF LIEN</heading>
<content>A lien created under this subchapter expires on the first anniversary of the date of attachment.</content>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 732, Sec. 1, eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c70/scE/s70.406">
<num value="70.406">Sec. 70.406.</num>
<heading>EFFECT OF LIEN; RECOVERY</heading>
<subsection identifier="/us/tx/pr/t5/c70/scE/s70.406/a">
<num value="a">(a)</num>
<content>A buyer in ordinary course of business of an agricultural crop, including a person who buys any portion of an agricultural crop from a warehouse or a contract purchaser, whether or not the agricultural crop has been commingled, takes the agricultural crop free of a lien created under this subchapter, and the lien created by this subchapter does not pass to any subsequent claimant of the agricultural crop.</content>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scE/s70.406/b">
<num value="b">(b)</num>
<content>An unequal pro rata recovery between agricultural producers is not prohibited under this subchapter if the inequality results from a lien on accounts receivable.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 732, Sec. 1, eff. Sept. 1, 2001.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 887 (H.B. 3063), Sec. 6, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c70/scE/s70.407">
<num value="70.407">Sec. 70.407.</num>
<heading>DISCHARGE OF LIEN</heading>
<subsection identifier="/us/tx/pr/t5/c70/scE/s70.407/a">
<num value="a">(a)</num>
<chapeau>A lien created under this subchapter is discharged when:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c70/scE/s70.407/1">
<num value="1">(1)</num>
<content>the lienholder receives full payment for the agricultural crop; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scE/s70.407/2">
<num value="2">(2)</num>
<content>payment is tendered by the warehouse or the contract purchaser, as applicable, and the lienholder, without coercion, defers payment.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t5/c70/scE/s70.407/b">
<num value="b">(b)</num>
<content>If payment for the agricultural crop is received in the form of a negotiable instrument, full payment is received when the negotiable instrument clears all financial institutions.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 732, Sec. 1, eff. Sept. 1, 2001.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 887 (H.B. 3063), Sec. 7, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c70/scE/s70.408">
<num value="70.408">Sec. 70.408.</num>
<heading>JOINDER OF ACTIONS</heading>
<content>Persons claiming a lien against the same agricultural crop under this subchapter may join in the same action, and if separate actions are commenced, the court may consolidate them.</content>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 732, Sec. 1, eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c70/scE/s70.409">
<num value="70.409">Sec. 70.409.</num>
<heading>RECOVERY OF COSTS</heading>
<chapeau>An agricultural producer who prevails in an action brought to enforce a lien created under this subchapter is entitled to recover:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c70/scE/s70.409/1">
<num value="1">(1)</num>
<content>reasonable and necessary attorney's fees and court costs; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scE/s70.409/2">
<num value="2">(2)</num>
<content>interest on funds subject to the lien at the judgment interest rate as provided by Chapter 304, Finance Code.</content>
</paragraph>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 732, Sec. 1, eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c70/scE/s70.410">
<num value="70.410">Sec. 70.410.</num>
<heading>WAIVER OF CERTAIN RIGHTS PROHIBITED</heading>
<content>An agricultural producer's agreement with a warehouse or a contract purchaser to waive the producer's right to seek a remedy provided by this subchapter is void.</content>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 732, Sec. 1, eff. Sept. 1, 2001.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 887 (H.B. 3063), Sec. 8, eff. September 1, 2017.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t5/c70/scF">
<num value="F">SUBCHAPTER F.</num>
<heading>LIEN RELATED TO DAMAGED FENCE</heading>
<section identifier="/us/tx/pr/t5/c70/scF/s70.501">
<num value="70.501">Sec. 70.501.</num>
<heading>LANDOWNER'S LIEN</heading>
<chapeau>A person who owns real property in this state that is enclosed by a fence or other structure obviously designed to exclude intruders or to contain livestock or other animals may obtain from a court in this state a judgment entitling the person to a lien against the motor vehicle of a person who damages the landowner's fence with the motor vehicle if the person who damages the landowner's fence:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c70/scF/s70.501/1">
<num value="1">(1)</num>
<content>owns the motor vehicle; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scF/s70.501/2">
<num value="2">(2)</num>
<content>has the consent of the owner of the motor vehicle to drive the vehicle at the time the person damages the landowner's fence.</content>
</paragraph>
<sourceCredit>Added by Acts 2007, 80th Leg., R.S., Ch. 330 (H.B. 2931), Sec. 1, eff. September 1, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c70/scF/s70.502">
<num value="70.502">Sec. 70.502.</num>
<heading>AMOUNT OF LIEN</heading>
<chapeau>The amount of a landowner's lien under this subchapter is equal to the lesser of:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c70/scF/s70.502/1">
<num value="1">(1)</num>
<content>the fair market value of the motor vehicle on the date the landowner's fence is damaged; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scF/s70.502/2">
<num value="2">(2)</num>
<chapeau>the actual cost incurred by the landowner to:</chapeau>
<subparagraph identifier="/us/tx/pr/t5/c70/scF/s70.502/A">
<num value="A">(A)</num>
<content>repair the fence;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c70/scF/s70.502/B">
<num value="B">(B)</num>
<content>recapture any livestock or other animals that escaped as a direct result of the damage to the fence; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t5/c70/scF/s70.502/C">
<num value="C">(C)</num>
<content>have the vehicle towed from the property and stored.</content>
</subparagraph>
</paragraph>
<sourceCredit>Added by Acts 2007, 80th Leg., R.S., Ch. 330 (H.B. 2931), Sec. 1, eff. September 1, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c70/scF/s70.503">
<num value="70.503">Sec. 70.503.</num>
<heading>PROPERTY TO WHICH LIEN ATTACHES</heading>
<content>A landowner's lien under this chapter attaches only to a motor vehicle that causes damage to a fence as described by Section 70.501.</content>
<sourceCredit>Added by Acts 2007, 80th Leg., R.S., Ch. 330 (H.B. 2931), Sec. 1, eff. September 1, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c70/scF/s70.504">
<num value="70.504">Sec. 70.504.</num>
<heading>PERFECTING LIEN</heading>
<content>A landowner may perfect a lien under this subchapter in the manner provided by Subchapter F, Chapter 501, Transportation Code.</content>
<sourceCredit>Added by Acts 2007, 80th Leg., R.S., Ch. 330 (H.B. 2931), Sec. 1, eff. September 1, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c70/scF/s70.505">
<num value="70.505">Sec. 70.505.</num>
<heading>EXPIRATION AND DISCHARGE OF LIEN</heading>
<content>A lien under this subchapter does not expire and is discharged only when the landowner receives payment of the lien.</content>
<sourceCredit>Added by Acts 2007, 80th Leg., R.S., Ch. 330 (H.B. 2931), Sec. 1, eff. September 1, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t5/c70/scF/s70.506">
<num value="70.506">Sec. 70.506.</num>
<heading>REMOVAL OF VEHICLE FROM LANDOWNER'S PROPERTY</heading>
<chapeau>A landowner whose fence is damaged by a motor vehicle that is then abandoned on the owner's property, or the landowner's agent, may:</chapeau>
<paragraph identifier="/us/tx/pr/t5/c70/scF/s70.506/1">
<num value="1">(1)</num>
<content>select a towing service to remove the vehicle from the landowner's property; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t5/c70/scF/s70.506/2">
<num value="2">(2)</num>
<content>designate the time at which the towing service may enter the property to remove the vehicle.</content>
</paragraph>
<sourceCredit>Added by Acts 2007, 80th Leg., R.S., Ch. 330 (H.B. 2931), Sec. 1, eff. September 1, 2007.</sourceCredit>
</section>
</subchapter>
</chapter>
<num value="6">TITLE 6.</num>
<heading>UNCLAIMED PROPERTY</heading>
<chapter identifier="/us/tx/pr/t6/c71">
<num value="71">CHAPTER 71.</num>
<heading>ESCHEAT OF PROPERTY</heading>
<subchapter identifier="/us/tx/pr/t6/c71/scA">
<num value="A">SUBCHAPTER A.</num>
<heading>GENERAL PROVISIONS</heading>
<section identifier="/us/tx/pr/t6/c71/scA/s71.001">
<num value="71.001">Sec. 71.001.</num>
<heading>ESCHEAT</heading>
<subsection identifier="/us/tx/pr/t6/c71/scA/s71.001/a">
<num value="a">(a)</num>
<content>If an individual dies intestate and without heirs, the real and personal property of that individual is subject to escheat.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c71/scA/s71.001/b">
<num value="b">(b)</num>
<content>"Escheat" means the vesting of title to property in the state in an escheat proceeding under Subchapter B.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3585, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1985, 69th Leg., ch. 230, Sec. 2, eff. Sept. 1, 1985.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c71/scA/s71.002">
<num value="71.002">Sec. 71.002.</num>
<heading>PRESUMPTION OF DEATH</heading>
<chapeau>An individual is presumed dead for the purpose of determining if the individual's real or personal property is subject to escheat if the individual:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c71/scA/s71.002/1">
<num value="1">(1)</num>
<content>is absent from the individual's place of residence for seven years or longer; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c71/scA/s71.002/2">
<num value="2">(2)</num>
<content>is not known to exist.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3585, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1985, 69th Leg., ch. 230, Sec. 3, eff. Sept. 1, 1985.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c71/scA/s71.003">
<num value="71.003">Sec. 71.003.</num>
<heading>PRESUMPTION OF INTESTACY</heading>
<content>An individual is presumed to have died intestate if, on or before the seventh anniversary of the date of the individual's death, the individual's will has not been recorded or probated in the county where the individual's property is located.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3585, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c71/scA/s71.004">
<num value="71.004">Sec. 71.004.</num>
<heading>PRESUMPTION OF DEATH WITHOUT HEIRS</heading>
<chapeau>An individual is presumed to have died leaving no heirs if for the seven-year period preceding the court's determination:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c71/scA/s71.004/1">
<num value="1">(1)</num>
<content>a lawful claim to the individual's property has not been asserted; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c71/scA/s71.004/2">
<num value="2">(2)</num>
<content>a lawful act of ownership of the individual's property has not been exercised.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3585, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c71/scA/s71.005">
<num value="71.005">Sec. 71.005.</num>
<heading>ACT OF OWNERSHIP</heading>
<content>For the purposes of this chapter, an individual exercises a lawful act of ownership in property by, personally or through an agent, paying taxes to this state on the property.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3585, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c71/scA/s71.006">
<num value="71.006">Sec. 71.006.</num>
<heading>REVIEW OF PROBATE DECREE</heading>
<subsection identifier="/us/tx/pr/t6/c71/scA/s71.006/a">
<num value="a">(a)</num>
<content>If the state claims that an estate that has been administered in probate court in this state is subject to escheat, the state may have the judgment of the probate court reviewed by filing a petition in district court alleging that the administration of the estate was obtained by fraud or mistake of fact.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c71/scA/s71.006/b">
<num value="b">(b)</num>
<content>The case shall be tried in accordance with the law for the revision and correction of a decree of the probate court.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3585, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c71/scA/s71.007">
<num value="71.007">Sec. 71.007.</num>
<heading>IDENTIFICATION OF REAL PROPERTY SUBJECT TO ESCHEAT</heading>
<chapeau>The tax assessor-collector of each county shall:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c71/scA/s71.007/1">
<num value="1">(1)</num>
<content>take all steps necessary to identify real property that may be subject to escheat; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c71/scA/s71.007/2">
<num value="2">(2)</num>
<content>notify the commissioner of the General Land Office and the attorney general so that they may take appropriate action.</content>
</paragraph>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 1276, Sec. 13.002(d), eff. Sept. 1, 2003.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t6/c71/scB">
<num value="B">SUBCHAPTER B.</num>
<heading>ESCHEAT PROCEEDINGS</heading>
<section identifier="/us/tx/pr/t6/c71/scB/s71.101">
<num value="71.101">Sec. 71.101.</num>
<heading>PETITION FOR ESCHEAT</heading>
<subsection identifier="/us/tx/pr/t6/c71/scB/s71.101/a">
<num value="a">(a)</num>
<content>If any person, including the attorney general, the comptroller, or a district attorney, criminal district attorney, county attorney, county clerk, district clerk, or attorney ad litem is informed or has reason to believe that real or personal property is subject to escheat under this chapter, the person may file a sworn petition requesting the escheat of the property and requesting a writ of possession for the property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c71/scB/s71.101/b">
<num value="b">(b)</num>
<chapeau>The petition must contain:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c71/scB/s71.101/1">
<num value="1">(1)</num>
<content>a description of the property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c71/scB/s71.101/2">
<num value="2">(2)</num>
<content>the name of the deceased owner of the property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c71/scB/s71.101/3">
<num value="3">(3)</num>
<content>the name of the tenants or persons claiming the estate, if known; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c71/scB/s71.101/4">
<num value="4">(4)</num>
<content>the facts supporting the escheat of the estate.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c71/scB/s71.101/c">
<num value="c">(c)</num>
<content>If the petition is filed by a person other than the attorney general, the person shall send to the attorney general written notice of the filing and a copy of the petition to permit the attorney general to elect to participate on behalf of the state.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c71/scB/s71.101/d">
<num value="d">(d)</num>
<content>An action brought under this section is governed by the procedure relating to class actions provided by the Texas Rules of Civil Procedure.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c71/scB/s71.101/e">
<num value="e">(e)</num>
<content>A petition filed under this section is not subject to an objection relating to misjoinder of parties or causes of action.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3586, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1985, 69th Leg., ch. 230, Sec. 4, eff. Sept. 1, 1985; Acts 1991, 72nd Leg., ch. 153, Sec. 1, eff. Sept. 1, 1991; Acts 1997, 75th Leg., ch. 1037, Sec. 4, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.01, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c71/scB/s71.102">
<num value="71.102">Sec. 71.102.</num>
<heading>CITATION</heading>
<subsection identifier="/us/tx/pr/t6/c71/scB/s71.102/a">
<num value="a">(a)</num>
<chapeau>If a petition is filed under this subchapter, the district clerk shall issue citation as in other civil suits to:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c71/scB/s71.102/1">
<num value="1">(1)</num>
<content>each defendant alleged by the petition to possess or claim the property that is the subject of the petition;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c71/scB/s71.102/2">
<num value="2">(2)</num>
<content>any person required by this chapter to be cited; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c71/scB/s71.102/3">
<num value="3">(3)</num>
<content>persons interested in the estate, including lienholders of record.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c71/scB/s71.102/b">
<num value="b">(b)</num>
<chapeau>The citation required by Subdivision (3) of Subsection (a) must be published as required for other civil suits and must:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c71/scB/s71.102/1">
<num value="1">(1)</num>
<content>briefly state the contents of the petition; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c71/scB/s71.102/2">
<num value="2">(2)</num>
<content>request all persons interested in the estate to appear and answer at the next term of the court.</content>
</paragraph>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3587, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1985, 69th Leg., ch. 923, Sec. 21, eff. Aug. 26, 1985.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c71/scB/s71.103">
<num value="71.103">Sec. 71.103.</num>
<heading>PARTY TO PROCEEDING</heading>
<subsection identifier="/us/tx/pr/t6/c71/scB/s71.103/a">
<num value="a">(a)</num>
<chapeau>A person who exercises a lawful act of ownership in property that is the subject of an escheat proceeding must be made a party to the proceeding by:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c71/scB/s71.103/1">
<num value="1">(1)</num>
<content>personal service of citation if the person is a resident of this state and the person's address can be obtained by reasonable diligence; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c71/scB/s71.103/2">
<num value="2">(2)</num>
<content>service of citation on a person's agent if the person is a nonresident or a resident who cannot be found and the agent can be found by the use of reasonable diligence.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c71/scB/s71.103/b">
<num value="b">(b)</num>
<content>For the purposes of this section, reasonable diligence includes an inquiry and investigation of the records of the office of the tax assessor-collector of the county in which the property sought to be escheated is located.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c71/scB/s71.103/c">
<num value="c">(c)</num>
<content>The comptroller is an indispensable party to any judicial or administrative proceeding concerning the disposition and handling of property that is the subject of an escheat proceeding and must be made a party to the proceeding by personal service of citation.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3587, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1991, 72nd Leg., ch. 153, Sec. 2, eff. Sept. 1, 1991; Acts 1997, 75th Leg., ch. 1037, Sec. 5, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.02, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c71/scB/s71.104">
<num value="71.104">Sec. 71.104.</num>
<heading>APPEARANCE OF CLAIMANTS</heading>
<content>Any person, whether named in the escheat petition or not, who claims an interest in property that is the subject of an escheat proceeding may appear, enter a pleading, and oppose the facts stated in the petition.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3588, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c71/scB/s71.105">
<num value="71.105">Sec. 71.105.</num>
<heading>TRIAL</heading>
<subsection identifier="/us/tx/pr/t6/c71/scB/s71.105/a">
<num value="a">(a)</num>
<content>If a person appears and denies the state's right to the property or opposes a material fact of the petition, the court shall try the issue as any other issue of fact.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c71/scB/s71.105/b">
<num value="b">(b)</num>
<content>The court may order a survey as in other cases in which the title or the boundary of the land is in question.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3588, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c71/scB/s71.106">
<num value="71.106">Sec. 71.106.</num>
<heading>DEFAULT JUDGMENT</heading>
<content>If citation is issued in accordance with Section 71.102 and no person answers within the period provided by the Texas Rules of Civil Procedure, the court shall render a default judgment in favor of the state.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3588, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c71/scB/s71.107">
<num value="71.107">Sec. 71.107.</num>
<heading>JUDGMENT FOR STATE</heading>
<subsection identifier="/us/tx/pr/t6/c71/scB/s71.107/a">
<num value="a">(a)</num>
<content>If the court renders a judgment for the state finding that an intestate died without heirs, the property escheats to the state and title to the property is considered to pass to the state on the date of death of the owner as established by the escheat proceeding. The court may award court costs to the state.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c71/scB/s71.107/b">
<num value="b">(b)</num>
<content>If the judgment involves real property, the state may sell the property under the general laws governing the sale of Permanent School Fund lands, and, after the second anniversary of the date of the final judgment, the court shall issue a writ of possession for the property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c71/scB/s71.107/c">
<num value="c">(c)</num>
<content>If the judgment involves personal property, the court shall issue a writ of possession that contains an adequate description of the property as in other cases for recovery of personal property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c71/scB/s71.107/d">
<num value="d">(d)</num>
<content>When the record of an escheat proceeding reflects that a lienholder or his predecessor received actual or constructive notice of the escheat proceeding, the entry of the judgment in the escheat proceeding will either satisfy or extinguish any lien which the lienholder or his predecessor claimed or could have claimed on the escheated property at the escheat proceeding.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c71/scB/s71.107/e">
<num value="e">(e)</num>
<chapeau>The sheriff, constable, court clerk, or other officer appointed by the judge in an escheat proceeding shall execute a writ of possession by filing the writ with the deed or map records of the county when the escheated property relates to realty and by serving the writ on any holder, tenant, or occupant of any escheated property. Additionally, the person who executes a writ of possession shall either:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c71/scB/s71.107/1">
<num value="1">(1)</num>
<content>post the writ for at least three consecutive weeks on the door or posting board of the county courthouse in the county where the proceeding was conducted or in the county where the property is located; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c71/scB/s71.107/2">
<num value="2">(2)</num>
<content>in the case of real property, post the writ for at least two consecutive weeks at a reasonably conspicuous place on the realty; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c71/scB/s71.107/3">
<num value="3">(3)</num>
<content>publicize the writ in any other fashion ordered by the court.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c71/scB/s71.107/f">
<num value="f">(f)</num>
<content>After validly executing a writ of possession, the sheriff, constable, court clerk, or other appointed officer shall note the method of the execution of the writ on the writ return and shall return the writ to the clerk to be filed in the court records of the escheat proceeding.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3588, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1985, 69th Leg., ch. 230, Sec. 5, eff. Sept. 1, 1985; Acts 1985, 69th Leg., ch. 923, Sec. 22, eff. Aug. 26, 1985.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c71/scB/s71.108">
<num value="71.108">Sec. 71.108.</num>
<heading>COSTS PAID BY STATE</heading>
<content>If the property does not escheat, the state shall pay court costs. The clerk of the court shall certify the amount of the costs, and when the certificate is filed in the office of the comptroller of public accounts, the comptroller shall issue a warrant for the amount of the costs.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3588, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c71/scB/s71.109">
<num value="71.109">Sec. 71.109.</num>
<heading>APPEAL; WRIT OF ERROR</heading>
<content>A party who appeared at an escheat proceeding may appeal the judgment rendered or may file an application for a writ of error on the judgment. The attorney general or the other person acting on behalf of the state in the escheat proceeding may make an appeal or file the writ.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3589, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t6/c71/scC">
<num value="C">SUBCHAPTER C.</num>
<heading>DISPOSITION OF ESCHEATED PROPERTY</heading>
<section identifier="/us/tx/pr/t6/c71/scC/s71.201">
<num value="71.201">Sec. 71.201.</num>
<heading>SEIZURE AND SALE OF PERSONAL PROPERTY</heading>
<subsection identifier="/us/tx/pr/t6/c71/scC/s71.201/a">
<num value="a">(a)</num>
<content>If personal property escheated to the state, the court shall issue to the sheriff a writ that commands the sheriff to seize the escheated property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c71/scC/s71.201/b">
<num value="b">(b)</num>
<chapeau>The sheriff shall:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c71/scC/s71.201/1">
<num value="1">(1)</num>
<content>dispose of the personal property at public auction in accordance with the law regarding the sale of personal property under execution; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c71/scC/s71.201/2">
<num value="2">(2)</num>
<content>deposit into the State Treasury the proceeds of the sale, less court costs.</content>
</paragraph>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3589, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c71/scC/s71.202">
<num value="71.202">Sec. 71.202.</num>
<heading>DISPOSITION OF REAL PROPERTY</heading>
<subsection identifier="/us/tx/pr/t6/c71/scC/s71.202/a">
<num value="a">(a)</num>
<content>Real property that escheats to the state under this title before January 1, 1985, becomes a part of the permanent school fund. Real property that escheats to the state on or after January 1, 1985, is held in trust by the Commissioner of the General Land Office for the use and benefit of the foundation school fund. The revenue from all leases, sales, and use of land held for the foundation school fund shall be deposited to the credit of the foundation school fund.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c71/scC/s71.202/b">
<num value="b">(b)</num>
<chapeau>Before the 91st day after the day on which a judgment that provides for the recovery of real property is rendered, the clerk of the district court rendering the judgment shall send to the Commissioner of the General Land Office:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c71/scC/s71.202/1">
<num value="1">(1)</num>
<content>a certified copy of the judgment; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c71/scC/s71.202/2">
<num value="2">(2)</num>
<content>notice of any appeal of that judgment.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c71/scC/s71.202/c">
<num value="c">(c)</num>
<chapeau>The commissioner shall list real property as escheated foundation school fund land or permanent school land as appropriate when the commissioner receives:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c71/scC/s71.202/1">
<num value="1">(1)</num>
<content>a certified copy of a judgment under which the property escheats to the state and from which appeal is not taken; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c71/scC/s71.202/2">
<num value="2">(2)</num>
<content>a certified copy of notice of the affirmance on appeal of a judgment under which the property escheats to the state.</content>
</paragraph>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3589, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 28, art. II, part B, Sec. 13, eff. Sept. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c71/scC/s71.203">
<num value="71.203">Sec. 71.203.</num>
<heading>ACCOUNT OF ESCHEATED PROPERTY</heading>
<content>The comptroller shall keep an account of the money paid to and real property vested in this state under this chapter.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3590, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t6/c71/scD">
<num value="D">SUBCHAPTER D.</num>
<heading>RECOVERY OF ESCHEATED PROPERTY</heading>
<section identifier="/us/tx/pr/t6/c71/scD/s71.301">
<num value="71.301">Sec. 71.301.</num>
<heading>SUIT FOR ESCHEATED PERSONAL PROPERTY</heading>
<subsection identifier="/us/tx/pr/t6/c71/scD/s71.301/a">
<num value="a">(a)</num>
<content>If personal property of a deceased owner escheats to the state under this chapter and is delivered to the state, a person who claims the property as an heir, devisee, or legatee of the deceased may file suit against the state in a district court of Travis County, Texas. The suit must be filed on or before the fourth anniversary of the date of the final judgment of the escheat proceeding.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c71/scD/s71.301/b">
<num value="b">(b)</num>
<content>The petition must state the nature of the claim and request that the money be paid to the claimant.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c71/scD/s71.301/c">
<num value="c">(c)</num>
<content>A copy of the petition shall be served on the comptroller, who shall represent the interests of the state. As the comptroller elects and with the approval of the attorney general, the attorney general, the county attorney or criminal district attorney for the county, or the district attorney for the district shall represent the comptroller.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3590, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1991, 72nd Leg., ch. 153, Sec. 3, eff. Sept. 1, 1991; Acts 1997, 75th Leg., ch. 1037, Sec. 6, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.03, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c71/scD/s71.302">
<num value="71.302">Sec. 71.302.</num>
<heading>RECOVERY OF PERSONAL PROPERTY</heading>
<subsection identifier="/us/tx/pr/t6/c71/scD/s71.302/a">
<num value="a">(a)</num>
<content>If in a suit filed under Section 71.301 the court finds that a claimant is entitled to recover personal property, the court shall order the comptroller to issue a warrant for payment of the claim without interest or costs.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c71/scD/s71.302/b">
<num value="b">(b)</num>
<content>A copy of the order under seal of the court is sufficient voucher for issuing the warrant.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3590, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c71/scD/s71.303">
<num value="71.303">Sec. 71.303.</num>
<heading>SUIT FOR ESCHEATED REAL PROPERTY</heading>
<subsection identifier="/us/tx/pr/t6/c71/scD/s71.303/a">
<num value="a">(a)</num>
<content>If real property escheats to the state under this chapter, a person who was not personally served with citation in the escheat proceedings may file suit in the district court of Travis County for all or a part of the property. The suit must be filed not later than the second anniversary of the date of the final judgment in the escheat proceedings.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c71/scD/s71.303/b">
<num value="b">(b)</num>
<content>A copy of the petition must be served on the attorney general, who shall represent the interests of the state.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c71/scD/s71.303/c">
<num value="c">(c)</num>
<content>To the extent the claimant is adjudged to be the owner of all or a part of the property, the state is divested of the property.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3590, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1991, 72nd Leg., ch. 153, Sec. 4, eff. Sept. 1, 1991.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c71/scD/s71.304">
<num value="71.304">Sec. 71.304.</num>
<heading>STATE AS PARTY IN SUIT FOR ASSETS</heading>
<subsection identifier="/us/tx/pr/t6/c71/scD/s71.304/a">
<num value="a">(a)</num>
<content>A suit brought for the collection of personal property delivered to the comptroller under this chapter must be brought in the name of this state.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c71/scD/s71.304/b">
<num value="b">(b)</num>
<content>A suit brought for the possession of real property held in trust by the Commissioner of the General Land Office under this chapter must be brought in the name of this state.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3591, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1991, 72nd Leg., ch. 153, Sec. 4, eff. Sept. 1, 1991; Acts 1997, 75th Leg., ch. 1037, Sec. 7, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.04, eff. Sept. 1, 1997.</sourceCredit>
</section>
</subchapter>
</chapter>
<chapter identifier="/us/tx/pr/t6/c72">
<num value="72">CHAPTER 72.</num>
<heading>ABANDONMENT OF PERSONAL PROPERTY</heading>
<subchapter identifier="/us/tx/pr/t6/c72/scA">
<num value="A">SUBCHAPTER A.</num>
<heading>GENERAL PROVISIONS</heading>
<section identifier="/us/tx/pr/t6/c72/scA/s72.001">
<num value="72.001">Sec. 72.001.</num>
<heading>APPLICATION OF CHAPTER</heading>
<subsection identifier="/us/tx/pr/t6/c72/scA/s72.001/a">
<num value="a">(a)</num>
<chapeau>Tangible or intangible personal property is subject to this chapter if it is covered by Section 72.101 and:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c72/scA/s72.001/1">
<num value="1">(1)</num>
<content>the last known address of the apparent owner, as shown on the records of the holder, is in this state;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c72/scA/s72.001/2">
<num value="2">(2)</num>
<content>the records of the holder do not disclose the identity of the person entitled to the property, and it is established that the last known address of the person entitled to the property is in this state;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c72/scA/s72.001/3">
<num value="3">(3)</num>
<chapeau>the records of the holder do not disclose the last known address of the apparent owner, and it is established that:</chapeau>
<subparagraph identifier="/us/tx/pr/t6/c72/scA/s72.001/A">
<num value="A">(A)</num>
<content>the last known address of the person entitled to the property is in this state; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t6/c72/scA/s72.001/B">
<num value="B">(B)</num>
<content>the holder is a domiciliary or a government or governmental subdivision or agency of this state and has not previously paid or delivered the property to the state of the last known address of the apparent owner or other person entitled to the property;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c72/scA/s72.001/4">
<num value="4">(4)</num>
<content>the last known address of the apparent owner, as shown on the records of the holder, is in a state that does not provide by law for the escheat or custodial taking of the property or is in a state in which the state's escheat or unclaimed property law is not applicable to the property, and the holder is a domiciliary or a government or governmental subdivision or agency of this state;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c72/scA/s72.001/5">
<num value="5">(5)</num>
<content>the last known address of the apparent owner, as shown on the records of the holder, is in a foreign nation and the holder is a domiciliary or a government or governmental subdivision or agency of this state; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c72/scA/s72.001/6">
<num value="6">(6)</num>
<chapeau>the transaction out of which the property arose occurred in this state and:</chapeau>
<subparagraph identifier="/us/tx/pr/t6/c72/scA/s72.001/A">
<num value="A">(A)</num>
<content>the last known address of the apparent owner or other person entitled to the property is:</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c72/scA/s72.001/i">
<num value="i">(i)</num>
<chapeau>unknown; or</chapeau>
<clause identifier="/us/tx/pr/t6/c72/scA/s72.001/ii">
<num value="ii">(ii)</num>
<content>in a state that does not provide by law for the escheat or custodial taking of the property or in a state in which the state's escheat or unclaimed property law is not applicable to the property; and</content>
</clause>
<subparagraph identifier="/us/tx/pr/t6/c72/scA/s72.001/B">
<num value="B">(B)</num>
<content>the holder is a domiciliary of a state that does not provide by law for the escheat or custodial taking of the property or a state in which the state's escheat or unclaimed property law is not applicable to the property.</content>
<continuation>(a-1) Tangible or intangible personal property is not subject to this chapter if it is a worthless or non-freely transferable security.</continuation>
</subparagraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c72/scA/s72.001/b">
<num value="b">(b)</num>
<content>This chapter supplements other chapters in this title, and each chapter shall be followed to the extent applicable.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c72/scA/s72.001/c">
<num value="c">(c)</num>
<content>This chapter applies to property held by life insurance companies with the exception of unclaimed proceeds to which Chapter 1109, Insurance Code, applies and that are held by those companies that are subject to Chapter 1109, Insurance Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c72/scA/s72.001/d">
<num value="d">(d)</num>
<content>A holder of property presumed abandoned under this chapter is subject to the procedures of Chapter 74.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c72/scA/s72.001/e">
<num value="e">(e)</num>
<chapeau>In this chapter, a holder is a person, wherever organized or domiciled, who is:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c72/scA/s72.001/1">
<num value="1">(1)</num>
<content>in possession of property that belongs to another;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c72/scA/s72.001/2">
<num value="2">(2)</num>
<content>a trustee; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c72/scA/s72.001/3">
<num value="3">(3)</num>
<content>indebted to another on an obligation.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c72/scA/s72.001/f">
<num value="f">(f)</num>
<content>In this chapter, a corporation shall be deemed to be a domiciliary of the state of its incorporation.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3592, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1985, 69th Leg., ch. 230, Sec. 7, eff. Sept. 1, 1985; Acts 1987, 70th Leg., ch. 426, Sec. 2, eff. Sept. 1, 1987; Acts 1991, 72nd Leg., ch. 153, Sec. 5, eff. Sept. 1, 1991; Acts 2001, 77th Leg., ch. 1419, Sec. 30, eff. June 1, 2003.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 52 (H.B. 1514), Sec. 3, eff. May 18, 2021.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t6/c72/scB">
<num value="B">SUBCHAPTER B.</num>
<heading>PRESUMPTION OF ABANDONMENT</heading>
<section identifier="/us/tx/pr/t6/c72/scB/s72.101">
<num value="72.101">Sec. 72.101.</num>
<heading>PERSONAL PROPERTY PRESUMED ABANDONED</heading>
<subsection identifier="/us/tx/pr/t6/c72/scB/s72.101/a">
<num value="a">(a)</num>
<chapeau>Except as provided by this section and Sections 72.1015, 72.1016, 72.1017, 72.102, and 72.104, personal property is presumed abandoned if, for longer than three years:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c72/scB/s72.101/1">
<num value="1">(1)</num>
<content>the location of the owner of the property is unknown to the holder of the property; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c72/scB/s72.101/2">
<num value="2">(2)</num>
<content>according to the knowledge and records of the holder of the property, a claim to the property has not been asserted or an act of ownership of the property has not been exercised.</content>
<continuation>(b)(1) The three-year period leading to a presumption of abandonment of stock or another intangible ownership interest in a business association, the existence of which is evidenced by records available to the association, commences on the first date that either a sum payable as a result of the ownership interest is unclaimed by the owner or a communication to the owner is returned undelivered by the United States Postal Service.</continuation>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c72/scB/s72.101/2">
<num value="2">(2)</num>
<content>The running of the three-year period of abandonment ceases immediately on the exercise of an act of ownership interest or sum payable or a communication with the association as evidenced by a memorandum or other record on file with the association or its agents.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c72/scB/s72.101/3">
<num value="3">(3)</num>
<content>At the time an ownership is presumed abandoned under this section, any sum then held for interest or owing to the owner as a result of the interest and not previously presumed abandoned is presumed abandoned.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c72/scB/s72.101/4">
<num value="4">(4)</num>
<content>Any stock or other intangible ownership interest enrolled in a plan that provides for the automatic reinvestment of dividends, distributions, or other sums payable as a result of the ownership interest is subject to the presumption of abandonment as provided by this section.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c72/scB/s72.101/c">
<num value="c">(c)</num>
<chapeau>Property distributable in the course of a demutualization or related reorganization of an insurance company is presumed abandoned on the first anniversary of the date the property becomes distributable if, at the time of the first distribution, the last known address of the owner according to the records of the holder of the property is known to be incorrect or the distribution or statements related to the distribution are returned by the post office as undeliverable and the owner has not:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c72/scB/s72.101/1">
<num value="1">(1)</num>
<content>communicated in writing with the holder of the property or the holder's agent regarding the interest; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c72/scB/s72.101/2">
<num value="2">(2)</num>
<content>otherwise communicated with the holder regarding the interest as evidenced by a memorandum or other record on file with the holder or its agents.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c72/scB/s72.101/d">
<num value="d">(d)</num>
<content>Property distributable in the course of a demutualization or related reorganization of an insurance company that is not subject to Subsection (c) is presumed abandoned as otherwise provided by this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c72/scB/s72.101/e">
<num value="e">(e)</num>
<chapeau>This section does not apply to money collected as child support that:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c72/scB/s72.101/1">
<num value="1">(1)</num>
<content>is being held for disbursement by the state disbursement unit under Chapter 234, Family Code, or a local registry, as defined by Section 101.018, Family Code, pending identification and location of the person to whom the money is owed; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c72/scB/s72.101/2">
<num value="2">(2)</num>
<content>has been disbursed by the state disbursement unit under Chapter 234, Family Code, by electronic funds transfer into a child support debit card account established for an individual under Section 234.010, Family Code, but not activated by the individual.</content>
</paragraph>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3593, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1985, 69th Leg., ch. 230, Sec. 9, eff. Sept. 1, 1985; Acts 1987, 70th Leg., ch. 426, Sec. 3, eff. Sept. 1, 1987; Acts 1991, 72nd Leg., ch. 153, Sec. 6, eff. Sept. 1, 1991; Acts 1993, 73rd Leg., ch. 36, Sec. 3.01, eff. Sept. 1, 1993; Acts 2003, 78th Leg., 3rd C.S., ch. 3, Sec. 2.01, 3.01, eff. Jan. 11, 2004.
Amended by:
Acts 2005, 79th Leg., Ch. 81 (S.B. 446), Sec. 2, eff. September 1, 2005.
Acts 2009, 81st Leg., R.S., Ch. 551 (S.B. 1777), Sec. 2, eff. June 19, 2009.
Acts 2009, 81st Leg., R.S., Ch. 767 (S.B. 865), Sec. 34, eff. June 19, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 685 (H.B. 257), Sec. 1, eff. September 1, 2011.
Acts 2015, 84th Leg., R.S., Ch. 606 (S.B. 569), Sec. 1, eff. September 1, 2015.
Acts 2019, 86th Leg., R.S., Ch. 897 (H.B. 3598), Sec. 1, eff. June 10, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c72/scB/s72.1015">
<num value="72.1015">Sec. 72.1015.</num>
<heading>UNCLAIMED WAGES</heading>
<subsection identifier="/us/tx/pr/t6/c72/scB/s72.1015/a">
<num value="a">(a)</num>
<content>In this section, "wages" has the meaning assigned by Section 61.001, Labor Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c72/scB/s72.1015/b">
<num value="b">(b)</num>
<chapeau>An amount of unclaimed wages is presumed abandoned if, for longer than one year:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c72/scB/s72.1015/1">
<num value="1">(1)</num>
<content>the existence and location of the person to whom the wages are owed is unknown to the holder of the wages; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c72/scB/s72.1015/2">
<num value="2">(2)</num>
<content>according to the knowledge and records of the holder of the wages, a claim to the wages has not been asserted or an act of ownership of the wages has not been exercised.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., 3rd C.S., ch. 3, Sec. 2.02, eff. Jan. 11, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c72/scB/s72.1016">
<num value="72.1016">Sec. 72.1016.</num>
<heading>STORED VALUE CARD</heading>
<subsection identifier="/us/tx/pr/t6/c72/scB/s72.1016/a">
<num value="a">(a)</num>
<chapeau>This section applies to a stored value card, as defined by Section 604.001, Business & Commerce Code, other than a card:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c72/scB/s72.1016/1">
<num value="1">(1)</num>
<content>to which Chapter 604, Business & Commerce Code, does not apply by operation of Sections 604.002(1)(A) and (C) and 604.002(2)-(5) of that code; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c72/scB/s72.1016/2">
<num value="2">(2)</num>
<content>that is linked to and draws its value solely from a deposit account subject to Chapter 73.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c72/scB/s72.1016/b">
<num value="b">(b)</num>
<chapeau>If the existence and location of the owner of a stored value card is unknown to the holder of the property, the stored value card is presumed abandoned to the extent of its unredeemed and uncharged value on the earlier of:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c72/scB/s72.1016/1">
<num value="1">(1)</num>
<content>the card's expiration date;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c72/scB/s72.1016/2">
<num value="2">(2)</num>
<content>the third anniversary of the date the card was issued, if the card is not used after it is issued, or the date the card was last used or value was last added to the card; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c72/scB/s72.1016/3">
<num value="3">(3)</num>
<content>the first anniversary of the date the card was issued, if the card is not used after it is issued, or the date the card was last used or value was last added to the card, if the card's value represents wages, as defined by Section 61.001, Labor Code.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c72/scB/s72.1016/c">
<num value="c">(c)</num>
<content>If the person who sells or issues a stored value card in this state does not obtain the name and address of the apparent owner of the card and maintain a record of the owner's name and address and the identification number of the card, the address of the apparent owner is considered to be the Austin, Texas, address of the comptroller.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c72/scB/s72.1016/d">
<num value="d">(d)</num>
<content>A person may charge a fee against a stored value card as provided by Chapter 604, Business & Commerce Code. A fee may not be charged against a stored value card after the card is presumed abandoned under this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c72/scB/s72.1016/e">
<num value="e">(e)</num>
<content>The comptroller shall transfer five percent of the money collected from cards presumed to be abandoned for use as grants under Subchapter M, Chapter 56, Education Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c72/scB/s72.1016/f">
<num value="f">(f)</num>
<content>This section does not create a cause of action against a person who issues or sells a stored value card.</content>
</subsection>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 81 (S.B. 446), Sec. 3, eff. September 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.33, eff. April 1, 2009.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c72/scB/s72.1017">
<num value="72.1017">Sec. 72.1017.</num>
<heading>UTILITY DEPOSITS</heading>
<subsection identifier="/us/tx/pr/t6/c72/scB/s72.1017/a">
<num value="a">(a)</num>
<chapeau>In this section:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c72/scB/s72.1017/1">
<num value="1">(1)</num>
<content>"Utility" has the meaning assigned by Section 183.001, Utilities Code.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c72/scB/s72.1017/2">
<num value="2">(2)</num>
<content>"Utility deposit" is a refundable money deposit a utility requires a user of the utility service to pay as a condition of initiating the service.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c72/scB/s72.1017/b">
<num value="b">(b)</num>
<chapeau>Notwithstanding Section 73.102, a utility deposit is presumed abandoned on the latest of:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c72/scB/s72.1017/1">
<num value="1">(1)</num>
<content>the first anniversary of the date a refund check for the utility deposit was payable to the owner of the deposit;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c72/scB/s72.1017/2">
<num value="2">(2)</num>
<content>the first anniversary of the date the utility last received documented communication from the owner of the utility deposit; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c72/scB/s72.1017/3">
<num value="3">(3)</num>
<content>the first anniversary of the date the utility issued a refund check for the deposit payable to the owner of the deposit if, according to the knowledge and records of the utility or payor of the check, during that period, a claim to the check has not been asserted or an act of ownership by the payee has not been exercised.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c72/scB/s72.1017/c">
<num value="c">(c)</num>
<content>A utility deposit is not presumed abandoned for two years from the time the depositor provides documentation to the utility of being called to active military service in any branch of the United States armed forces during any part of the period described by Subsection (b).</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 685 (H.B. 257), Sec. 2, eff. September 1, 2011.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 5.01, eff. September 28, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c72/scB/s72.102">
<num value="72.102">Sec. 72.102.</num>
<heading>TRAVELER'S CHECK AND MONEY ORDER</heading>
<subsection identifier="/us/tx/pr/t6/c72/scB/s72.102/a">
<num value="a">(a)</num>
<chapeau>A traveler's check or money order is not presumed to be abandoned under this chapter unless:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c72/scB/s72.102/1">
<num value="1">(1)</num>
<content>the records of the issuer of the check or money order indicate that it was purchased in this state;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c72/scB/s72.102/2">
<num value="2">(2)</num>
<content>the issuer's principal place of business is in this state and the issuer's records do not indicate the state in which the check or money order was purchased; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c72/scB/s72.102/3">
<num value="3">(3)</num>
<content>the issuer's principal place of business is in this state, the issuer's records indicate that the check or money order was purchased in another state, and the laws of that state do not provide for the escheat or custodial taking of the check or money order.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c72/scB/s72.102/b">
<num value="b">(b)</num>
<chapeau>A traveler's check to which Subsection (a) applies is presumed to be abandoned on the latest of:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c72/scB/s72.102/1">
<num value="1">(1)</num>
<content>the 15th anniversary of the date on which the check was issued;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c72/scB/s72.102/2">
<num value="2">(2)</num>
<content>the 15th anniversary of the date on which the issuer of the check last received from the owner of the check communication concerning the check; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c72/scB/s72.102/3">
<num value="3">(3)</num>
<content>the 15th anniversary of the date of the last writing, on file with the issuer, that indicates the owner's interest in the check.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c72/scB/s72.102/c">
<num value="c">(c)</num>
<chapeau>A money order to which Subsection (a) applies is presumed to be abandoned on the latest of:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c72/scB/s72.102/1">
<num value="1">(1)</num>
<content>the third anniversary of the date on which the money order was issued;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c72/scB/s72.102/2">
<num value="2">(2)</num>
<content>the third anniversary of the date on which the issuer of the money order last received from the owner of the money order communication concerning the money order; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c72/scB/s72.102/3">
<num value="3">(3)</num>
<content>the third anniversary of the date of the last writing, on file with the issuer, that indicates the owner's interest in the money order.</content>
</paragraph>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3593, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1985, 69th Leg., ch. 230, Sec. 10, eff. Sept. 1, 1985; Acts 1997, 75th Leg., ch. 1037, Sec. 8, eff. Sept. 1, 1997; Acts 2001, 77th Leg., ch. 179, Sec. 1, eff. June 1, 2004.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 685 (H.B. 257), Sec. 3, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c72/scB/s72.1021">
<num value="72.1021">Sec. 72.1021.</num>
<heading>SHARES OF MUTUAL FUND; DESIGNATION OF REPRESENTATIVE FOR NOTICE</heading>
<subsection identifier="/us/tx/pr/t6/c72/scB/s72.1021/a">
<num value="a">(a)</num>
<content>The owner of shares of a mutual fund may designate the name and a mailing or e-mail address of a representative of the owner only for the purpose of receiving the notice required by Section 74.1011. The owner is not required to designate a representative under this subsection.</content>
<continuation>(a-1) A holder of shares of a mutual fund shall notify the owner of the shares when the owner makes the initial purchase of shares in the fund that the owner may designate a representative under Subsection (a).</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t6/c72/scB/s72.1021/b">
<num value="b">(b)</num>
<content>The comptroller shall prescribe a form that a holder of shares of a mutual fund may make available to an owner of the shares to designate a representative for notice under this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c72/scB/s72.1021/c">
<num value="c">(c)</num>
<content>A representative for notice designated under this section does not have any rights to the mutual fund shares and may not access the shares.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c72/scB/s72.1021/d">
<num value="d">(d)</num>
<chapeau>The running of the three-year period of abandonment under Section 72.101 ceases immediately if a representative designated under this section communicates to the holder that the representative knows:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c72/scB/s72.1021/1">
<num value="1">(1)</num>
<content>the owner's location; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c72/scB/s72.1021/2">
<num value="2">(2)</num>
<content>that the owner exists and has not abandoned the shares of the mutual fund.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 925 (H.B. 1454), Sec. 1, eff. September 1, 2017.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 170 (H.B. 2964), Sec. 1, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c72/scB/s72.103">
<num value="72.103">Sec. 72.103.</num>
<heading>PRESERVATION OF PROPERTY</heading>
<content>Notwithstanding any other provision of this title except a provision of this section or Section 72.1016 relating to a money order or a stored value card, a holder of abandoned property shall preserve the property and may not at any time, by any procedure, including a deduction for service, maintenance, or other charge, transfer or convert to the profits or assets of the holder or otherwise reduce the value of the property. For purposes of this section, value is determined as of the date of the last transaction or contact concerning the property, except that in the case of a money order, value is determined as of the date the property is presumed abandoned under Section 72.102(c). If a holder imposes service, maintenance, or other charges on a money order prior to the time of presumed abandonment, such charges may not exceed the amount of $1 per month for each month the money order remains uncashed prior to the month in which the money order is presumed abandoned.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3594, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1985, 69th Leg., ch. 230, Sec. 11, eff. Sept. 1, 1985; Acts 1997, 75th Leg., ch. 1037, Sec. 9, eff. Sept. 1, 1997; Acts 2001, 77th Leg., ch. 179, Sec. 2, eff. June 1, 2002.
Amended by:
Acts 2005, 79th Leg., Ch. 81 (S.B. 446), Sec. 4, eff. September 1, 2005.
Acts 2011, 82nd Leg., R.S., Ch. 685 (H.B. 257), Sec. 4, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c72/scB/s72.104">
<num value="72.104">Sec. 72.104.</num>
<heading>TANGIBLE PERSONAL PROPERTY HELD BY COUNTY</heading>
<chapeau>Tangible personal property that is found on county land or in a county park, facility, or right-of-way is presumed abandoned if, for longer than 120 days:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c72/scB/s72.104/1">
<num value="1">(1)</num>
<content>the personal property is held by the county;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c72/scB/s72.104/2">
<num value="2">(2)</num>
<content>the existence and location of the owner of the personal property is unknown to the county; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c72/scB/s72.104/3">
<num value="3">(3)</num>
<content>according to the knowledge and records of the county, a claim to the personal property has not been asserted or an act of ownership of the personal property has not been exercised.</content>
</paragraph>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 606 (S.B. 569), Sec. 2, eff. September 1, 2015.</sourceCredit>
</section>
</subchapter>
</chapter>
<chapter identifier="/us/tx/pr/t6/c73">
<num value="73">CHAPTER 73.</num>
<heading>PROPERTY HELD BY FINANCIAL INSTITUTIONS</heading>
<subchapter identifier="/us/tx/pr/t6/c73/scA">
<num value="A">SUBCHAPTER A.</num>
<heading>GENERAL PROVISIONS</heading>
<section identifier="/us/tx/pr/t6/c73/scA/s73.001">
<num value="73.001">Sec. 73.001.</num>
<heading>DEFINITIONS AND APPLICATION OF CHAPTER</heading>
<subsection identifier="/us/tx/pr/t6/c73/scA/s73.001/a">
<num value="a">(a)</num>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c73/scA/s73.001/1">
<num value="1">(1)</num>
<content>"Account" means funds deposited with a depository in an interest-bearing account, a checking or savings account, or a child support debit card account established under Section 234.010, Family Code, or funds received by a depository in exchange for the purchase of a stored value card.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c73/scA/s73.001/2">
<num value="2">(2)</num>
<content>"Depositor" means a person who has an ownership interest in an account.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c73/scA/s73.001/3">
<num value="3">(3)</num>
<content>"Owner" means a person who has an ownership interest in a safe deposit box.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c73/scA/s73.001/4">
<num value="4">(4)</num>
<content>"Holder" means a depository.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c73/scA/s73.001/5">
<num value="5">(5)</num>
<content>"Check" includes a draft, cashier's check, certified check, registered check, or similar instrument.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c73/scA/s73.001/b">
<num value="b">(b)</num>
<content>This chapter supplements other chapters in this title, and each chapter shall be followed to the extent applicable.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c73/scA/s73.001/c">
<num value="c">(c)</num>
<content>Any property, other than an account, check, or safe deposit box, held by a depository is subject to the abandonment provisions of Chapter 72.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c73/scA/s73.001/d">
<num value="d">(d)</num>
<content>A holder of accounts, checks, or safe deposit boxes presumed abandoned under this chapter is subject to the procedures of Chapter 74.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3607, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1985, 69th Leg., ch. 230, Sec. 13, eff. Sept. 1, 1985; Acts 1991, 72nd Leg., ch. 153, Sec. 7, 8, eff. Sept. 1, 1991; Acts 1997, 75th Leg., ch. 1037, Sec. 11, 12, eff. Sept. 1, 1997.
Amended by:
Acts 2005, 79th Leg., Ch. 81 (S.B. 446), Sec. 5, eff. September 1, 2005.
Acts 2009, 81st Leg., R.S., Ch. 551 (S.B. 1777), Sec. 3, eff. June 19, 2009.
Acts 2009, 81st Leg., R.S., Ch. 767 (S.B. 865), Sec. 35, eff. June 19, 2009.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c73/scA/s73.002">
<num value="73.002">Sec. 73.002.</num>
<heading>DEPOSITORY</heading>
<chapeau>For the purposes of this chapter, a depository is a bank, savings and loan association, credit union, or other banking organization that:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c73/scA/s73.002/1">
<num value="1">(1)</num>
<content>receives and holds a deposit of money or the equivalent of money in banking practice or other personal property in this state; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c73/scA/s73.002/2">
<num value="2">(2)</num>
<content>receives and holds such a deposit or other personal property in another state for a person whose last known residence is in this state.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3607, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 13, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c73/scA/s73.003">
<num value="73.003">Sec. 73.003.</num>
<heading>PRESERVATION OF INACTIVE ACCOUNT OR SAFE DEPOSIT BOX</heading>
<subsection identifier="/us/tx/pr/t6/c73/scA/s73.003/a">
<num value="a">(a)</num>
<content>A depository shall preserve an account that is inactive and the contents of a safe deposit box that is inactive. The depository may not, at any time, by any procedure, including the imposition of a service charge, transfer or convert to the profits or assets of the depository or otherwise reduce the value of the account or the contents of such a box. For purposes of this subsection, value is determined as of the date the account or safe deposit box becomes inactive.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c73/scA/s73.003/b">
<num value="b">(b)</num>
<content>An account is inactive if for more than one year there has not been a debit or credit to the account because of an act by the depositor or an agent of the depositor, other than the depository, and the depositor has not communicated with the depository. A safe deposit box is inactive if the rental on the box is delinquent.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c73/scA/s73.003/c">
<num value="c">(c)</num>
<content>This section does not affect the provisions of Subchapter B, Chapter 59, Finance Code.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3607, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 18, Sec. 8(b), eff. Oct. 2, 1984; Acts 1985, 69th Leg., ch. 230, Sec. 14, eff. Sept. 1, 1985; Acts 1991, 72nd Leg., ch. 153, Sec. 9, eff. Sept. 1, 1991; Acts 1993, 73rd Leg., ch. 36, Sec. 3.02, eff. Sept. 1, 1993; Acts 1995, 74th Leg., ch. 914, Sec. 11, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 1037, Sec. 13, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 62, Sec. 7.85, eff. Sept. 1, 1999.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t6/c73/scB">
<num value="B">SUBCHAPTER B.</num>
<heading>PRESUMPTION OF ABANDONMENT</heading>
<section identifier="/us/tx/pr/t6/c73/scB/s73.101">
<num value="73.101">Sec. 73.101.</num>
<heading>INACTIVE ACCOUNT OR SAFE DEPOSIT BOX PRESUMED ABANDONED</heading>
<subsection identifier="/us/tx/pr/t6/c73/scB/s73.101/a">
<num value="a">(a)</num>
<chapeau>An account or safe deposit box is presumed abandoned if:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c73/scB/s73.101/1">
<num value="1">(1)</num>
<content>except as provided by Subsection (c), the account or safe deposit box has been inactive for at least five years as determined under Subsection (b);</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c73/scB/s73.101/2">
<num value="2">(2)</num>
<content>the location of the depositor of the account or owner of the safe deposit box is unknown to the depository; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c73/scB/s73.101/3">
<num value="3">(3)</num>
<content>the amount of the account or the contents of the box have not been delivered to the comptroller in accordance with Chapter 74.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c73/scB/s73.101/b">
<num value="b">(b)</num>
<chapeau>For purposes of Subsection (a)(1):</chapeau>
<paragraph identifier="/us/tx/pr/t6/c73/scB/s73.101/1">
<num value="1">(1)</num>
<content>an account becomes inactive beginning on the date of the depositor's last transaction or correspondence concerning the account; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c73/scB/s73.101/2">
<num value="2">(2)</num>
<content>a safe deposit box becomes inactive beginning on the date a rental was due but not paid.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c73/scB/s73.101/c">
<num value="c">(c)</num>
<content>If the account is a checking or savings account or is a matured certificate of deposit, the account is presumed abandoned if the account has been inactive for at least three years as determined under Subsection (b)(1).</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3607, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 18, Sec. 8(d), eff. Oct. 2, 1984; Acts 1985, 69th Leg., ch. 230, Sec. 16, eff. Sept. 1, 1985; Acts 1991, 72nd Leg., ch. 153, Sec. 11, 12, eff. Sept. 1, 1991; Acts 1997, 75th Leg., ch. 1037, Sec. 14, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.05, eff. Sept. 1, 1997.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 685 (H.B. 257), Sec. 5, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c73/scB/s73.102">
<num value="73.102">Sec. 73.102.</num>
<heading>CHECKS</heading>
<chapeau>A check is presumed to be abandoned on the latest of:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c73/scB/s73.102/1">
<num value="1">(1)</num>
<content>the third anniversary of the date the check was payable;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c73/scB/s73.102/2">
<num value="2">(2)</num>
<content>the third anniversary of the date the issuer or payor of the check last received documented communication from the payee of the check; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c73/scB/s73.102/3">
<num value="3">(3)</num>
<content>the third anniversary of the date the check was issued if, according to the knowledge and records of the issuer or payor of the check, during that period, a claim to the check has not been asserted or an act of ownership by the payee has not been exercised.</content>
</paragraph>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 15, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c73/scB/s73.103">
<num value="73.103">Sec. 73.103.</num>
<heading>DESIGNATION OF REPRESENTATIVE FOR NOTICE</heading>
<subsection identifier="/us/tx/pr/t6/c73/scB/s73.103/a">
<num value="a">(a)</num>
<content>The depositor of an account or the owner of the contents of a safe deposit box may designate the name and a mailing or e-mail address of a representative of the depositor or the owner only for the purpose of receiving the notice required by Section 74.1011. The depositor or owner is not required to designate a representative under this subsection.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c73/scB/s73.103/b">
<num value="b">(b)</num>
<content>The comptroller shall prescribe a form that a holder of an account or the contents of a safe deposit box may make available to a depositor of the account or owner of the contents of the box to designate a representative for notice under this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c73/scB/s73.103/c">
<num value="c">(c)</num>
<content>A representative for notice designated under this section does not have any rights to the account or safe deposit box and may not access the account or box.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c73/scB/s73.103/d">
<num value="d">(d)</num>
<chapeau>The running of a period of abandonment under Section 73.101 ceases immediately if a representative designated under this section communicates to the holder that the representative knows:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c73/scB/s73.103/1">
<num value="1">(1)</num>
<content>the depositor's or owner's location; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c73/scB/s73.103/2">
<num value="2">(2)</num>
<content>that the depositor or owner exists and has not abandoned the account or the contents of a safe deposit box.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 925 (H.B. 1454), Sec. 2, eff. September 1, 2017.</sourceCredit>
</section>
</subchapter>
</chapter>
<chapter identifier="/us/tx/pr/t6/c74">
<num value="74">CHAPTER 74.</num>
<heading>REPORT, DELIVERY, AND CLAIMS PROCESS</heading>
<subchapter identifier="/us/tx/pr/t6/c74/scA">
<num value="A">SUBCHAPTER A.</num>
<heading>APPLICABILITY</heading>
<section identifier="/us/tx/pr/t6/c74/scA/s74.001">
<num value="74.001">Sec. 74.001.</num>
<heading>APPLICABILITY</heading>
<subsection identifier="/us/tx/pr/t6/c74/scA/s74.001/a">
<num value="a">(a)</num>
<chapeau>Except as provided by this section, this chapter applies to:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c74/scA/s74.001/1">
<num value="1">(1)</num>
<content>property that is presumed abandoned under Chapter 72, Chapter 73, or Chapter 75;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scA/s74.001/2">
<num value="2">(2)</num>
<content>property that is presumed abandoned under Chapter 154, Finance Code;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scA/s74.001/3">
<num value="3">(3)</num>
<content>unclaimed proceeds under Chapter 1109, Insurance Code; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scA/s74.001/4">
<num value="4">(4)</num>
<content>any other law requiring a person to report and deliver property to the comptroller under this chapter.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scA/s74.001/b">
<num value="b">(b)</num>
<content>This chapter does not apply to a holder of property subject to Chapter 76.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scA/s74.001/c">
<num value="c">(c)</num>
<content>This chapter does not apply to small credit balances held by an institution of higher education in an unclaimed money fund under Section 51.011, Education Code.</content>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1, 1985. Amended by Acts 1991, 72nd Leg., ch. 153, Sec. 13, eff. Sept. 1, 1991; Acts 1997, 75th Leg., ch. 1037, Sec. 16, eff. Sept. 1, 1997; Acts 2003, 78th Leg., ch. 465, Sec. 2, eff. Sept. 1, 2003; Acts 2003, 78th Leg., 3rd C.S., ch. 3, Sec. 2.03, eff. Jan. 11, 2004.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1049 (S.B. 5), Sec. 1.07, eff. June 17, 2011.
Acts 2019, 86th Leg., R.S., Ch. 897 (H.B. 3598), Sec. 2, eff. June 10, 2019.
Acts 2021, 87th Leg., R.S., Ch. 52 (H.B. 1514), Sec. 4, eff. May 18, 2021.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t6/c74/scB">
<num value="B">SUBCHAPTER B.</num>
<heading>PROPERTY REPORT</heading>
<section identifier="/us/tx/pr/t6/c74/scB/s74.101">
<num value="74.101">Sec. 74.101.</num>
<heading>PROPERTY REPORT</heading>
<subsection identifier="/us/tx/pr/t6/c74/scB/s74.101/a">
<num value="a">(a)</num>
<content>Each holder who on March 1 holds property to which this chapter applies shall file a report of that property on or before the following July 1. The comptroller may require the report to be in a particular format, including a format that can be read by a computer.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scB/s74.101/b">
<num value="b">(b)</num>
<content>Repealed by Acts 1999, 76th Leg., ch. 1208, Sec. 5, eff. Sept. 1, 1999.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scB/s74.101/c">
<num value="c">(c)</num>
<chapeau>The property report must include, if known by the holder:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c74/scB/s74.101/1">
<num value="1">(1)</num>
<chapeau>the name, social security number, driver's license or state identification number, e-mail address, and last known address of:</chapeau>
<subparagraph identifier="/us/tx/pr/t6/c74/scB/s74.101/A">
<num value="A">(A)</num>
<content>each person who, from the records of the holder of the property, appears to be the owner of the property; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t6/c74/scB/s74.101/B">
<num value="B">(B)</num>
<content>any person who is entitled to the property;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scB/s74.101/2">
<num value="2">(2)</num>
<content>the name and last known mailing or e-mail address of any person designated as a representative for notice under Section 72.1021 or 73.103;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scB/s74.101/3">
<num value="3">(3)</num>
<content>a description of the property, the identification number, if any, and, if appropriate, a balance of each account, except as provided by Subsection (d);</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scB/s74.101/4">
<num value="4">(4)</num>
<content>the date that the property became payable, demandable, or returnable;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scB/s74.101/5">
<num value="5">(5)</num>
<content>the date of the last transaction with the owner concerning the property; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scB/s74.101/6">
<num value="6">(6)</num>
<content>other information that the comptroller by rule requires to be disclosed as necessary for the administration of this chapter.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scB/s74.101/d">
<num value="d">(d)</num>
<content>Amounts due that individually are less than $25 may be reported in the aggregate without furnishing any of the information required by Subsection (c).</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scB/s74.101/e">
<num value="e">(e)</num>
<chapeau>A holder of mineral proceeds under Chapter 75 that is regulated by the Railroad Commission of Texas under Chapter 91, Natural Resources Code, shall include in the property report for the proceeds, in addition to the information listed in Subsection (c), the following information with respect to each well the production from which resulted in the proceeds:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c74/scB/s74.101/1">
<num value="1">(1)</num>
<content>the lease, property, or well name;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scB/s74.101/2">
<num value="2">(2)</num>
<content>any lease, property, or well identification number used to identify the lease, property, or well; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scB/s74.101/3">
<num value="3">(3)</num>
<content>the county in which the lease, property, or well is located.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1, 1985. Amended by Acts 1987, 70th Leg., ch. 426, Sec. 4, eff. Sept. 1, 1987; Acts 1991, 72nd Leg., ch. 153, Sec. 14, eff. Sept. 1, 1991; Acts 1991, 72nd Leg., 1st C.S., ch. 1, Sec. 2, eff. Sept. 1, 1991; Acts 1997, 75th Leg., ch. 1037, Sec. 17, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.06, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 1208, Sec. 5, eff. Sept. 1, 1999; Acts 1999, 76th Leg., ch. 62, Sec. 7.86, eff. Sept. 1, 1999; Acts 2003, 78th Leg., ch. 465, Sec. 3, eff. Sept. 1, 2003; Acts 2003, 78th Leg., 3rd C.S., ch. 3, Sec. 2.04, eff. Jan. 11, 2004.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 232 (S.B. 1589), Sec. 1, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 685 (H.B. 257), Sec. 6, eff. January 1, 2013.
Acts 2015, 84th Leg., R.S., Ch. 118 (S.B. 1021), Sec. 2, eff. September 1, 2015.
Acts 2015, 84th Leg., R.S., Ch. 480 (S.B. 1589), Sec. 1, eff. January 1, 2016.
Acts 2015, 84th Leg., R.S., Ch. 925 (H.B. 1454), Sec. 3, eff. September 1, 2017.
Acts 2021, 87th Leg., R.S., Ch. 52 (H.B. 1514), Sec. 5, eff. May 18, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scB/s74.1011">
<num value="74.1011">Sec. 74.1011.</num>
<heading>NOTICE BY PROPERTY HOLDER REQUIRED</heading>
<subsection identifier="/us/tx/pr/t6/c74/scB/s74.1011/a">
<num value="a">(a)</num>
<chapeau>Except as provided by Subsection (b), a holder who on March 1 holds property to which this chapter applies that is valued at more than $250 shall, not later than the 60th day before the date the property is delivered to the comptroller, provide to the owner by mail to the last known address of the owner or by e-mail written notice stating that:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c74/scB/s74.1011/1">
<num value="1">(1)</num>
<content>the holder is holding the property; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scB/s74.1011/2">
<num value="2">(2)</num>
<content>the holder may be required to deliver the property to the comptroller on or before July 1 if the property is not claimed.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scB/s74.1011/b">
<num value="b">(b)</num>
<chapeau>The notice required under Subsection (a) does not apply to a holder who:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c74/scB/s74.1011/1">
<num value="1">(1)</num>
<content>has already provided such notice to the owner of the property or a person entitled to the property under existing federal law, rules, and regulations or state law within the time specified under Subsection (a); or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scB/s74.1011/2">
<num value="2">(2)</num>
<content>does not have a record of a physical or e-mail address for the property owner or any other person entitled to the property.</content>
<continuation>(b-1) If an owner has designated a representative for notice under Section 72.1021 or 73.103, the holder shall mail or e-mail the written notice required under Subsection (a) to the representative in addition to providing written notice to the owner.</continuation>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scB/s74.1011/c">
<num value="c">(c)</num>
<content>A holder that provides notice under this section may charge the cost of the postage as a service charge against the property.</content>
</subsection>
<sourceCredit>Added by Acts 2009, 81st Leg., R.S., Ch. 232 (S.B. 1589), Sec. 2, eff. September 1, 2009.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 685 (H.B. 257), Sec. 7, eff. January 1, 2013.
Acts 2015, 84th Leg., R.S., Ch. 925 (H.B. 1454), Sec. 4, eff. September 1, 2017.
Acts 2021, 87th Leg., R.S., Ch. 52 (H.B. 1514), Sec. 6, eff. May 18, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scB/s74.102">
<num value="74.102">Sec. 74.102.</num>
<heading>SIGNED STATEMENT</heading>
<subsection identifier="/us/tx/pr/t6/c74/scB/s74.102/a">
<num value="a">(a)</num>
<chapeau>The person preparing a property report shall provide with each copy of the report a statement signed by:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c74/scB/s74.102/1">
<num value="1">(1)</num>
<content>the individual holding the reported property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scB/s74.102/2">
<num value="2">(2)</num>
<content>a partner, if the holder is a partnership;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scB/s74.102/3">
<num value="3">(3)</num>
<content>an officer, if the holder is an unincorporated association or a private corporation; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scB/s74.102/4">
<num value="4">(4)</num>
<content>the chief fiscal officer, if the holder is a public corporation.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scB/s74.102/b">
<num value="b">(b)</num>
<content>The statement must include the following sentence:</content>
<continuation>"This report contains a full and complete list of all property held by the undersigned that, from the knowledge and records of the undersigned, is abandoned under the laws of the State of Texas."</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scB/s74.102/c">
<num value="c">(c)</num>
<content>The comptroller may adopt rules or policies relating to the signature requirement, as the comptroller determines appropriate, to maximize the use of future developments in electronic filing technology.</content>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1, 1985. Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 18, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 1208, Sec. 1, eff. Sept. 1, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scB/s74.103">
<num value="74.103">Sec. 74.103.</num>
<heading>RETENTION OF RECORDS</heading>
<subsection identifier="/us/tx/pr/t6/c74/scB/s74.103/a">
<num value="a">(a)</num>
<chapeau>A holder required to file a property report under Section 74.101 shall keep a record of:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c74/scB/s74.103/1">
<num value="1">(1)</num>
<content>the name, the social security number, if known, and the last known address of each person who, from the records of the holder of the property, appears to be the owner of the property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scB/s74.103/2">
<num value="2">(2)</num>
<content>the name and last known mailing or e-mail address of any representative for notice designated under Section 72.1021 or 73.103;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scB/s74.103/3">
<num value="3">(3)</num>
<content>a brief description of the property, including the identification number, if any; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scB/s74.103/4">
<num value="4">(4)</num>
<content>the balance of each account, if appropriate.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scB/s74.103/b">
<num value="b">(b)</num>
<chapeau>Without regard to whether the property is reported in the aggregate, the record must be kept for 10 years from the later of:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c74/scB/s74.103/1">
<num value="1">(1)</num>
<content>the date on which the property is reportable; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scB/s74.103/2">
<num value="2">(2)</num>
<content>the date the report is filed.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scB/s74.103/c">
<num value="c">(c)</num>
<content>The comptroller may by rule provide for a shorter period for keeping a record required by this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scB/s74.103/d">
<num value="d">(d)</num>
<content>The comptroller may determine the liability of a holder required to file a property report under Section 74.101 using the best information available to the comptroller if the records of the holder are unavailable or incomplete for any portion of the required retention period.</content>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1, 1985. Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 19, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.07, eff. Sept. 1, 1997; Acts 2003, 78th Leg., ch. 1310, Sec. 84, eff. Sept. 1, 2003.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 925 (H.B. 1454), Sec. 5, eff. September 1, 2017.
Acts 2019, 86th Leg., R.S., Ch. 897 (H.B. 3598), Sec. 3, eff. June 10, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scB/s74.104">
<num value="74.104">Sec. 74.104.</num>
<heading>CONFIDENTIALITY OF PROPERTY REPORT; EXCEPTIONS</heading>
<subsection identifier="/us/tx/pr/t6/c74/scB/s74.104/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (c) and Section 74.201, 74.203, or 74.307, a property report filed with the comptroller under Section 74.101 is confidential until the second anniversary of the date the report is filed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scB/s74.104/b">
<num value="b">(b)</num>
<content>The social security number of an owner that is provided to the comptroller is confidential.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scB/s74.104/c">
<num value="c">(c)</num>
<content>The information reported under Section 74.101(e) is confidential and not subject to disclosure under Chapter 552, Government Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scB/s74.104/d">
<num value="d">(d)</num>
<content>Notwithstanding Subsection (c), the comptroller may release the information about a well reported under Section 74.101(e) to a claimant of mineral proceeds from the well if the claim is approved by the comptroller under Section 74.501.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scB/s74.104/e">
<num value="e">(e)</num>
<content>Notwithstanding Subsection (c), the information compiled under Section 74.307(a)(2) is subject to disclosure under Chapter 552, Government Code.</content>
</subsection>
<sourceCredit>Added by Acts 1991, 72nd Leg., ch. 153, Sec. 15, eff. Sept. 1, 1991. Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 20, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.08, eff. Sept. 1, 1997.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 480 (S.B. 1589), Sec. 2, eff. January 1, 2016.
Acts 2015, 84th Leg., R.S., Ch. 480 (S.B. 1589), Sec. 3, eff. January 1, 2016.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scB/s74.105">
<num value="74.105">Sec. 74.105.</num>
<heading>COMBINED REPORTING</heading>
<subsection identifier="/us/tx/pr/t6/c74/scB/s74.105/a">
<num value="a">(a)</num>
<chapeau>In this section:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c74/scB/s74.105/1">
<num value="1">(1)</num>
<content>"Affiliated group" means a group of one or more entities in which a controlling interest is owned by a common owner, either corporate or noncorporate, or by one or more of the member entities.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scB/s74.105/2">
<num value="2">(2)</num>
<chapeau>"Controlling interest" means:</chapeau>
<subparagraph identifier="/us/tx/pr/t6/c74/scB/s74.105/A">
<num value="A">(A)</num>
<content>for a corporation, more than 50 percent, owned directly or indirectly, of the total voting power of all classes of stock of the corporation;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t6/c74/scB/s74.105/B">
<num value="B">(B)</num>
<content>for a partnership, more than 50 percent, owned directly or indirectly, of the capital or profits in the partnership;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t6/c74/scB/s74.105/C">
<num value="C">(C)</num>
<content>for a limited liability company, more than 50 percent, owned directly or indirectly, of the total membership interest of the limited liability company; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t6/c74/scB/s74.105/D">
<num value="D">(D)</num>
<content>for an association, trust, or other entity, more than 50 percent, owned directly or indirectly, of the beneficial interest in the association, trust, or other entity.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scB/s74.105/b">
<num value="b">(b)</num>
<content>If a holder that is required to file a property report under this chapter is a member of an affiliated group, the holder shall file one report for the affiliated group.</content>
</subsection>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 897 (H.B. 3598), Sec. 4, eff. June 10, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scB/s74.106">
<num value="74.106">Sec. 74.106.</num>
<heading>CONTINUING REPORTING REQUIREMENT</heading>
<subsection identifier="/us/tx/pr/t6/c74/scB/s74.106/a">
<num value="a">(a)</num>
<content>A person who is required to file a property report under Section 74.101 in any year shall file a property report in each successive year.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scB/s74.106/b">
<num value="b">(b)</num>
<content>If a person required to file a property report under this section is not holding any property that is reportable under this chapter, the person shall certify that fact.</content>
</subsection>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 897 (H.B. 3598), Sec. 4, eff. June 10, 2019.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t6/c74/scC">
<num value="C">SUBCHAPTER C.</num>
<heading>NOTICE BY COMPTROLLER</heading>
<section identifier="/us/tx/pr/t6/c74/scC/s74.201">
<num value="74.201">Sec. 74.201.</num>
<heading>REQUIRED NOTICE</heading>
<subsection identifier="/us/tx/pr/t6/c74/scC/s74.201/a">
<num value="a">(a)</num>
<chapeau>Except as provided by Section 74.202, the comptroller may use one or more methods as necessary to provide the most efficient and effective notice to each reported owner in the calendar year immediately following the year in which the report required by Section 74.101 is filed. The notice must be provided:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c74/scC/s74.201/1">
<num value="1">(1)</num>
<content>in the county of the property owner's last known address; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scC/s74.201/2">
<num value="2">(2)</num>
<content>in the county in which the holder has its principal place of business or its registered office for service in this state, if the property owner's last address is unknown.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scC/s74.201/b">
<num value="b">(b)</num>
<chapeau>The notice must state that the reported property is presumed abandoned and subject to this chapter and must contain:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c74/scC/s74.201/1">
<num value="1">(1)</num>
<content>the name and city of last known address of the reported owner;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scC/s74.201/2">
<num value="2">(2)</num>
<content>a statement that, by inquiry, any person possessing a legal or beneficial interest in the reported property may obtain information concerning the amount and description of the property; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scC/s74.201/3">
<num value="3">(3)</num>
<content>a statement that the person may present proof of the claim and establish the person's right to receive the property.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scC/s74.201/c">
<num value="c">(c)</num>
<content>Deleted by Acts 1997, 75th Leg., ch. 1037, Sec. 21, eff. Sept. 1, 1997.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scC/s74.201/d">
<num value="d">(d)</num>
<content>The comptroller may offer for sale space for suitable advertisements in a notice published under this section.</content>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1, 1985. Amended by Acts 1987, 70th Leg., ch. 426, Sec. 5, eff. Sept. 1, 1987; Acts 1991, 72nd Leg., ch. 153, Sec. 16, eff. Sept. 1, 1991; Acts 1993, 73rd Leg., ch. 36, Sec. 3.03, eff. Sept. 1, 1993; Acts 1997, 75th Leg., ch. 1037, Sec. 21, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.09, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scC/s74.202">
<num value="74.202">Sec. 74.202.</num>
<heading>NOTICE FOR ITEM WITH VALUE OF LESS THAN $100</heading>
<content>In the notice required by Section 74.201, the comptroller is not required to publish information regarding an item having a value that is less than $100 unless the comptroller determines that publication of that information is in the public interest.</content>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1, 1985. Amended by Acts 1997, 75th Leg., ch. 571, Sec. 1, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1037, Sec. 21, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.10, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scC/s74.203">
<num value="74.203">Sec. 74.203.</num>
<heading>AUTHORIZED NOTICE</heading>
<subsection identifier="/us/tx/pr/t6/c74/scC/s74.203/a">
<num value="a">(a)</num>
<content>During the calendar year immediately following the year in which the report required by Section 74.101 is filed, notice may be mailed to each person who has been reported with a Texas address and appears to be entitled to the reported property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scC/s74.203/b">
<num value="b">(b)</num>
<content>The notice under Subsection (a) must conform to the requirements for notice under Section 74.201(b).</content>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1, 1985. Amended by Acts 1991, 72nd Leg., ch. 153, Sec. 17, eff. Sept. 1, 1991; Acts 1997, 75th Leg., ch. 1037, Sec. 21, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.11, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scC/s74.205">
<num value="74.205">Sec. 74.205.</num>
<heading>CHARGE FOR NOTICE</heading>
<chapeau>The comptroller may charge the following against the property delivered under this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c74/scC/s74.205/1">
<num value="1">(1)</num>
<content>expenses incurred for the publication of notice required by Section 74.201; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scC/s74.205/2">
<num value="2">(2)</num>
<content>the amount paid in postage for the notice to the owner required by Section 74.203.</content>
</paragraph>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1, 1985. Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 22, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.12, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scC/s74.206">
<num value="74.206">Sec. 74.206.</num>
<heading>ADVERTISING AND PROMOTION</heading>
<content>The comptroller may advertise or otherwise promote the unclaimed property program in any available media to further the purposes of this title and to provide effective and efficient notice to reported owners.</content>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 897 (H.B. 3598), Sec. 5, eff. June 10, 2019.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t6/c74/scD">
<num value="D">SUBCHAPTER D.</num>
<heading>DELIVERY</heading>
<section identifier="/us/tx/pr/t6/c74/scD/s74.301">
<num value="74.301">Sec. 74.301.</num>
<heading>DELIVERY OF PROPERTY TO COMPTROLLER</heading>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.301/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (c), each holder who on March 1 holds property to which this chapter applies shall deliver the property to the comptroller on or before the following July 1 accompanied by the report required to be filed under Section 74.101.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.301/b">
<num value="b">(b)</num>
<content>If the property subject to delivery under Subsection (a) is stock or some other intangible ownership interest in a business association for which there is no evidence of ownership, the holder shall issue a duplicate certificate or other evidence of ownership to the comptroller at the time delivery is required under this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.301/c">
<num value="c">(c)</num>
<content>If the property subject to delivery under Subsection (a) is the contents of a safe deposit box, the comptroller may instruct a holder to deliver the property on a specified date before July 1 of the following year.</content>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1, 1985. Amended by Acts 1991, 72nd Leg., ch. 153, Sec. 19, 30(2), eff. Sept. 1, 1991; Acts 1997, 75th Leg., ch. 1037, Sec. 22, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.13, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 1208, Sec. 2, eff. Sept. 1, 1999; Acts 2003, 78th Leg., ch. 465, Sec. 4, eff. Sept. 1, 2003; Acts 2003, 78th Leg., 3rd C.S., ch. 3, Sec. 2.05, eff. Jan. 11, 2004.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 685 (H.B. 257), Sec. 8, eff. January 1, 2013.
Acts 2021, 87th Leg., R.S., Ch. 52 (H.B. 1514), Sec. 7, eff. May 18, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scD/s74.3011">
<num value="74.3011">Sec. 74.3011.</num>
<heading>DELIVERY OF MONEY TO RURAL SCHOLARSHIP FUND</heading>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.3011/a">
<num value="a">(a)</num>
<content>Notwithstanding and in addition to any other provision of this chapter or other law, a local telephone exchange company may deliver reported money to a scholarship fund for rural students instead of delivering the money to the comptroller as prescribed by Section 74.301.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.3011/b">
<num value="b">(b)</num>
<content>A local telephone exchange company may deliver the money under this section only to a scholarship fund established by one or more local telephone exchange companies in this state to enable needy students from rural areas to attend college, technical school, or another postsecondary educational institution.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.3011/c">
<num value="c">(c)</num>
<content>A local telephone exchange company shall file with the comptroller a verification of money delivered under this section that complies with Section 74.302.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.3011/d">
<num value="d">(d)</num>
<content>A claim for money delivered to a scholarship fund under this section must be filed with the local telephone exchange company that delivered the money. The local telephone exchange company shall forward the claim to the administrator of the scholarship fund to which the money was delivered. The scholarship fund shall pay the claim if the fund determines in good faith that the claim is valid. A person aggrieved by a claim decision may file a suit against the fund in a district court in the county in which the administrator of the scholarship fund is located in accordance with Section 74.506.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.3011/e">
<num value="e">(e)</num>
<chapeau>The comptroller shall prescribe forms and procedures governing this section, including forms and procedures relating to:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c74/scD/s74.3011/1">
<num value="1">(1)</num>
<content>notice of presumed abandoned property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scD/s74.3011/2">
<num value="2">(2)</num>
<content>delivery of reported money to a scholarship fund; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scD/s74.3011/3">
<num value="3">(3)</num>
<content>filing of a claim.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.3011/f">
<num value="f">(f)</num>
<content>In this section, "local telephone exchange company" means a telecommunications utility certificated to provide local exchange service within the state and that is a telephone cooperative or has fewer than 50,000 access lines in service in this state.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.3011/g">
<num value="g">(g)</num>
<content>During a state fiscal year, the total amount of money that may be transferred by all local telephone exchange companies under this section may not exceed $800,000. The comptroller shall keep a record of the total amount of money transferred annually. When the total amount of money transferred during a state fiscal year equals the amount allowed by this subsection, the comptroller shall notify each local telephone exchange company that the company may not transfer any additional money to the company's scholarship fund during the remainder of that state fiscal year.</content>
</subsection>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 231, Sec. 50(a), eff. Sept. 1, 1995. Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 23, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.14, eff. Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 163 (S.B. 947), Sec. 1, eff. September 1, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scD/s74.3012">
<num value="74.3012">Sec. 74.3012.</num>
<heading>DELIVERY OF MONEY TO URBAN SCHOLARSHIP FUND</heading>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.3012/a">
<num value="a">(a)</num>
<content>Notwithstanding and in addition to any other provision of this chapter or other law, a local exchange company may deliver reported money to a scholarship fund for urban students instead of delivering the money to the comptroller as prescribed by Section 74.301.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.3012/b">
<num value="b">(b)</num>
<content>A local exchange company may deliver the money under this section only to a scholarship fund established by one or more local exchange companies in this state to enable needy students from urban areas to attend college, technical school, or another postsecondary educational institution.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.3012/c">
<num value="c">(c)</num>
<content>A local exchange company shall file with the comptroller a verification of money delivered under this section that complies with Section 74.302.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.3012/d">
<num value="d">(d)</num>
<content>A claim for money delivered to a scholarship fund under this section must be filed with the local exchange company that delivered the money. The local exchange company shall forward the claim to the administrator of the scholarship fund to which the money was delivered. The scholarship fund shall pay the claim if the fund determines in good faith that the claim is valid. A person aggrieved by a claim decision may file a suit against the fund in a district court in the county in which the administrator of the scholarship fund is located in accordance with Section 74.506.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.3012/e">
<num value="e">(e)</num>
<chapeau>The comptroller shall prescribe forms and procedures governing this section, including forms and procedures relating to:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c74/scD/s74.3012/1">
<num value="1">(1)</num>
<content>notice of presumed abandoned property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scD/s74.3012/2">
<num value="2">(2)</num>
<content>delivery of reported money to a scholarship fund; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scD/s74.3012/3">
<num value="3">(3)</num>
<content>filing of a claim.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.3012/f">
<num value="f">(f)</num>
<content>In this section, "local exchange company" means a telecommunications utility certificated to provide local exchange telephone service within the state and that has 50,000 or more access lines in service in this state and is not a telephone cooperative.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.3012/g">
<num value="g">(g)</num>
<content>During each state fiscal year, the total amount of money that may be transferred by all local exchange companies under this section may not exceed the total amount of money transferred to rural scholarship funds under Section 74.3011 during the previous state fiscal year. The comptroller shall keep a record of the total amount of money transferred annually. If the total amount of money transferred during a state fiscal year equals the amount allowed by this subsection, the comptroller shall notify each local exchange company that the company may not transfer any additional money to the company's scholarship fund during the remainder of that state fiscal year.</content>
</subsection>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 231, Sec. 51(a), eff. Sept. 1, 1995. Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 24, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.15, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scD/s74.3013">
<num value="74.3013">Sec. 74.3013.</num>
<heading>DELIVERY OF MONEY FOR RURAL SCHOLARSHIP, ECONOMIC DEVELOPMENT, AND ENERGY EFFICIENCY ASSISTANCE</heading>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.3013/a">
<num value="a">(a)</num>
<content>Notwithstanding and in addition to any other provision of this chapter or other law, a nonprofit cooperative corporation may deliver reported money to a scholarship fund for rural students, to stimulate rural economic development, or to provide energy efficiency assistance to members of electric cooperatives, instead of delivering the money to the comptroller as prescribed in Section 74.301.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.3013/b">
<num value="b">(b)</num>
<chapeau>A nonprofit cooperative corporation may deliver the money under this section only:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c74/scD/s74.3013/1">
<num value="1">(1)</num>
<content>to a scholarship fund established by one or more nonprofit cooperative corporations in this state to enable students from rural areas to attend college, technical school, or other postsecondary educational institution;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scD/s74.3013/2">
<num value="2">(2)</num>
<content>to an economic development fund for the stimulation and improvement of business and commercial activity for economic development in rural communities; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scD/s74.3013/3">
<num value="3">(3)</num>
<content>to an energy efficiency assistance fund to assist members of an electric cooperative in reducing their energy consumption and electricity bills.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.3013/c">
<num value="c">(c)</num>
<content>A nonprofit cooperative corporation shall file with the comptroller a verification of money delivered under this section that complies with Section 74.302.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.3013/d">
<num value="d">(d)</num>
<content>A claim for money delivered under this section must be filed with the nonprofit cooperative corporation that delivered the money. A nonprofit cooperative corporation shall forward the claim to the administrator of the fund to which the money was delivered. The fund shall pay the claim if the fund determines in good faith that the claim is valid. A person aggrieved by a claim decision may file a suit against the fund in a district court in the county in which the administrator of the fund is located in accordance with Section 74.506.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.3013/e">
<num value="e">(e)</num>
<chapeau>The comptroller shall prescribe forms and procedures governing this section, including forms and procedures relating to:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c74/scD/s74.3013/1">
<num value="1">(1)</num>
<content>notice of presumed abandoned property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scD/s74.3013/2">
<num value="2">(2)</num>
<content>delivery of reported money to a scholarship, economic development fund, or energy efficiency assistance fund;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scD/s74.3013/3">
<num value="3">(3)</num>
<content>filing of a claim; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scD/s74.3013/4">
<num value="4">(4)</num>
<content>procedures to allow equitable opportunity for participation by each nonprofit cooperative corporation in the state.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.3013/f">
<num value="f">(f)</num>
<content>During a state fiscal year the total amount of money that may be transferred by all nonprofit cooperative corporations under this section may not exceed 50 percent of the total money reported for that year by those nonprofit cooperative corporations. The comptroller shall adopt procedures to record the total amount of money transferred annually.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.3013/g">
<num value="g">(g)</num>
<content>Nonprofit cooperative corporations may combine funds from other sources with any funds delivered under this section. In addition, such cooperatives may engage in other business and commercial activities, in their own behalf or through such subsidiaries and affiliates as deemed necessary, in order to provide and promote educational opportunities and to stimulate rural economic development.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.3013/h">
<num value="h">(h)</num>
<content>In this section, a nonprofit cooperative corporation means a cooperative corporation organized under Chapters 51 and 52, Agriculture Code, the Texas Nonprofit Corporation Law, as described by Section 1.008(d), Business Organizations Code, the Texas Cooperative Association Law, as described by Section 1.008(i), Business Organizations Code, and Chapter 161, Utilities Code.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 904, Sec. 1, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 62, Sec. 18.45, eff. Sept. 1, 1999.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 939 (H.B. 3693), Sec. 14, eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 939 (H.B. 3693), Sec. 15, eff. September 1, 2007.
Acts 2023, 88th Leg., R.S., Ch. 291 (S.B. 1768), Sec. 7, eff. May 29, 2023.
Acts 2023, 88th Leg., R.S., Ch. 621 (H.B. 4246), Sec. 1, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scD/s74.302">
<num value="74.302">Sec. 74.302.</num>
<heading>STATEMENT OF DELIVERED PROPERTY</heading>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.302/a">
<num value="a">(a)</num>
<chapeau>Property delivered under Section 74.301 must be accompanied by a statement that:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c74/scD/s74.302/1">
<num value="1">(1)</num>
<content>the property delivered is a complete and correct remittance of all accounts subject to this chapter in the holder's possession;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scD/s74.302/2">
<num value="2">(2)</num>
<content>the existence and location of the listed owners are unknown to the holder; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scD/s74.302/3">
<num value="3">(3)</num>
<content>the listed owners have not asserted a claim or exercised an act of ownership with respect to the owner's reported property.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.302/b">
<num value="b">(b)</num>
<chapeau>The statement required by Subsection (a) shall be signed by:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c74/scD/s74.302/1">
<num value="1">(1)</num>
<content>the individual holding the reported property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scD/s74.302/2">
<num value="2">(2)</num>
<content>a partner, if the holder is a partnership;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scD/s74.302/3">
<num value="3">(3)</num>
<content>an officer, if the holder is an unincorporated association or a private corporation; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scD/s74.302/4">
<num value="4">(4)</num>
<content>the chief fiscal officer, if the holder is a public corporation.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1, 1985. Amended by Acts 1991, 72nd Leg., ch. 153, Sec. 20, eff. Sept. 1, 1991; Acts 1999, 76th Leg., ch. 1208, Sec. 3, eff. Sept. 1, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scD/s74.304">
<num value="74.304">Sec. 74.304.</num>
<heading>RESPONSIBILITY AFTER DELIVERY</heading>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.304/a">
<num value="a">(a)</num>
<content>If reported property is delivered to the comptroller, the state shall assume custody of the property and responsibility for its safekeeping.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.304/b">
<num value="b">(b)</num>
<content>A holder who delivers property to the comptroller in good faith is relieved of all liability to the extent of the value of the property delivered for any claim then existing, that may arise after delivery to the comptroller, or that may be made with respect to the property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.304/c">
<num value="c">(c)</num>
<content>If the holder delivers property to the comptroller in good faith and, after delivery, a person claims the property from the holder or another state claims the property under its laws relating to escheat or unclaimed property, the attorney general shall, on written notice of the claim, defend the holder against the claim, and the holder shall be indemnified from the unclaimed money received under this chapter or any other statute requiring delivery of unclaimed property to the comptroller against any liability on the claim.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.304/d">
<num value="d">(d)</num>
<content>The comptroller is not, in the absence of negligence or mishandling of the property, liable to the person who claims the property for damages incurred while the property or the proceeds from the sale of the property are in the comptroller's possession. But in any event the liability of the state is limited to the extent of the property delivered under this chapter and remaining in the possession of the comptroller at the time a suit is filed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.304/e">
<num value="e">(e)</num>
<chapeau>For the purposes of this section, payment or delivery is made in good faith if:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c74/scD/s74.304/1">
<num value="1">(1)</num>
<content>payment or delivery was made in a reasonable attempt to comply with this chapter;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scD/s74.304/2">
<num value="2">(2)</num>
<content>the holder delivering the property was not a fiduciary then in breach of trust with respect to the property and had a reasonable basis for believing based on the facts then known to the holder that the property was abandoned or inactive for purposes of this chapter; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scD/s74.304/3">
<num value="3">(3)</num>
<content>there is no showing that the records under which the delivery was made did not meet reasonable commercial standards of practice in the industry.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.304/f">
<num value="f">(f)</num>
<content>On delivery of a duplicate certificate or other evidence of ownership to the comptroller under Subsection (b) of Section 74.301, the holder and any transfer agent, registrar, or other person acting for or on behalf of a holder in executing or delivering the duplicate certificate are relieved of all liability of every kind in accordance with this section to any person, including any person acquiring the original certificate or the duplicate of the certificate issued to the comptroller, for any losses or damages resulting to any person by the issuance and delivery to the comptroller of the duplicate certificate.</content>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1, 1985. Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 25, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.16, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scD/s74.306">
<num value="74.306">Sec. 74.306.</num>
<heading>UNCLAIMED PROPERTY HELD BY FEDERAL GOVERNMENT</heading>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.306/a">
<num value="a">(a)</num>
<content>If the federal government enacts a law that provides for the discovery of unclaimed property held by the federal government and that provides or makes that information available to the states, the comptroller may pay to the federal government from the unclaimed money received under this chapter or any other statute requiring the delivery of unclaimed property to the comptroller the proportional share of the necessary cost of examining records.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.306/b">
<num value="b">(b)</num>
<content>If the federal government delivers unclaimed property to the comptroller, this state shall hold the federal government harmless from claims made by owners of the property after the delivery.</content>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1, 1985. Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 25, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.18, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scD/s74.3061">
<num value="74.3061">Sec. 74.3061.</num>
<heading>ESCHEAT OF FUNDS IN THE POSSESSION OF THE UNITED STATES</heading>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.3061/a">
<num value="a">(a)</num>
<content>In the event any money is due to a resident of this state in the nature of a refund, rebate, or other overpayment of taxes or fees to the United States with respect to which the resident is likely to have his rights to secure such refund or rebate barred by a statute of limitations, or if for any reason at least three years has elapsed after the date on which the resident could have filed a timely claim for said refund or rebate, the comptroller is appointed agent of such resident to apply for said refund or rebate and is authorized to do any act which a natural person could do to recover said money. When the comptroller files an application or initiates any other proceeding to secure said refund or rebate, the comptroller is coupled with an interest in the money sought and money recovered. All property within this provision, including all principal and interest accruing thereon, is declared to have escheated and to have become the property of the state.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.3061/b">
<num value="b">(b)</num>
<content>The funds escheated by the state pursuant to this provision shall be given notice as provided by Section 74.201. Title to any such property shall be transferred by the state to any persons who in accordance with Subchapter F can show that the property belonged to them immediately prior to the escheat or that they were heirs to those funds immediately prior to the escheat.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 25, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scD/s74.307">
<num value="74.307">Sec. 74.307.</num>
<heading>LIST OF OWNERS; OTHER PUBLIC INFORMATION</heading>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.307/a">
<num value="a">(a)</num>
<chapeau>The comptroller shall compile and revise each year:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c74/scD/s74.307/1">
<num value="1">(1)</num>
<content>except as to amounts reported in the aggregate, an alphabetical list of the names and last known addresses of the owners listed in the reports and the amount credited to each account; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scD/s74.307/2">
<num value="2">(2)</num>
<chapeau>an alphabetical list by county of:</chapeau>
<subparagraph identifier="/us/tx/pr/t6/c74/scD/s74.307/A">
<num value="A">(A)</num>
<content>the number of reports filed under Section 74.101 for mineral proceeds attributable to all wells located in each respective county; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t6/c74/scD/s74.307/B">
<num value="B">(B)</num>
<content>the aggregate amount of mineral proceeds reported under Section 74.101 attributable to all wells, if any, located in each respective county.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scD/s74.307/b">
<num value="b">(b)</num>
<content>The comptroller shall make the lists available for public inspection during all reasonable business hours.</content>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1, 1985. Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 25, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.19, eff. Sept. 1, 1997.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 480 (S.B. 1589), Sec. 4, eff. January 1, 2016.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scD/s74.308">
<num value="74.308">Sec. 74.308.</num>
<heading>PERIOD OF LIMITATION NOT A BAR</heading>
<content>The expiration, on or after September 1, 1987, of any period specified by contract, statute, or court order, during which an action or proceeding may be initiated or enforced to obtain payment of a claim for money or recovery of property, does not prevent the money or property from being presumed abandoned property and does not affect any duty to file a report required by this chapter or to pay or deliver abandoned property to the comptroller.</content>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 426, Sec. 5, eff. Sept. 1, 1987. Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 25, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.20, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scD/s74.309">
<num value="74.309">Sec. 74.309.</num>
<heading>PRIVATE ESCHEAT AGREEMENTS PROHIBITED</heading>
<content>An individual, corporation, business association, or other organization may not act through amendment of articles of incorporation, amendment of bylaws, private agreement, or any other means to take or divert funds or personal property into income, divide funds or personal property among locatable patrons or stockholders, or divert funds or personal property by any other method for the purpose of circumventing the unclaimed property process.</content>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 426, Sec. 5, eff. Sept. 1, 1987.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t6/c74/scE">
<num value="E">SUBCHAPTER E.</num>
<heading>DISPOSITION OF DELIVERED PROPERTY</heading>
<section identifier="/us/tx/pr/t6/c74/scE/s74.401">
<num value="74.401">Sec. 74.401.</num>
<heading>SALE OF PROPERTY</heading>
<subsection identifier="/us/tx/pr/t6/c74/scE/s74.401/a">
<num value="a">(a)</num>
<content>Except as provided by Section 74.404, the comptroller may sell at public sale any personal property, other than money and marketable securities, delivered to the comptroller in accordance with Section 74.301. The comptroller may conduct the sale at the location and in the manner that the comptroller determines affords the most favorable market for the particular property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scE/s74.401/b">
<num value="b">(b)</num>
<content>The comptroller shall sell the property to the highest bidder. If the comptroller determines that the highest bid is insufficient, the comptroller may decline that bid and offer the property for public or private sale.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scE/s74.401/c">
<num value="c">(c)</num>
<content>Repealed by Acts 2019, 86th Leg., R.S., Ch. 897 (H.B. 3598), Sec. 13, eff. June 10, 2019.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scE/s74.401/d">
<num value="d">(d)</num>
<content>If after investigation the comptroller determines that property delivered under this chapter is not marketable or has insubstantial commercial value, the comptroller may destroy or otherwise dispose of the property at any time.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scE/s74.401/e">
<num value="e">(e)</num>
<content>A person may not maintain any action or proceeding against the state, an officer of the state, or the holder of property because of an action taken by the comptroller under this section.</content>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1, 1985. Amended by Acts 1993, 73rd Leg., ch. 36, Sec. 3.04, eff. Sept. 1, 1993; Acts 1997, 75th Leg., ch. 1037, Sec. 26, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.21, eff. Sept. 1, 1997; Acts 2001, 77th Leg., ch. 800, Sec. 1, eff. Sept. 1, 2001.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 897 (H.B. 3598), Sec. 6, eff. June 10, 2019.
Acts 2019, 86th Leg., R.S., Ch. 897 (H.B. 3598), Sec. 13, eff. June 10, 2019.
Acts 2021, 87th Leg., R.S., Ch. 52 (H.B. 1514), Sec. 8, eff. May 18, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scE/s74.402">
<num value="74.402">Sec. 74.402.</num>
<heading>NOTICE OF SALE</heading>
<content>Before the 21st day preceding the day on which a public sale is held under Section 74.401, the comptroller shall publish notice of the sale in a newspaper of general circulation in Travis County or in the county where the sale is to be held. If the public sale is to be held on the Internet or by an online auction, the comptroller may post the notice on the comptroller's own website before the seventh day preceding the date on which the sale or auction is held.</content>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1, 1985. Amended by Acts 1993, 73rd Leg., ch. 36, Sec. 3.05, eff. Sept. 1, 1993; Acts 1997, 75th Leg., ch. 1037, Sec. 26, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.22, eff. Sept. 1, 1997; Acts 2001, 77th Leg., ch. 1263, Sec. 80, eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scE/s74.403">
<num value="74.403">Sec. 74.403.</num>
<heading>PURCHASER'S TITLE</heading>
<subsection identifier="/us/tx/pr/t6/c74/scE/s74.403/a">
<num value="a">(a)</num>
<content>At a sale, public or private, of property that is held under this subchapter, the purchaser receives title to the purchased property free from all claims of the prior owner and prior holder of the property and all persons claiming through or under the owner or holder.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scE/s74.403/b">
<num value="b">(b)</num>
<content>The comptroller shall execute all documents necessary to complete the transfer of title.</content>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1, 1985. Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 27, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.23, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scE/s74.404">
<num value="74.404">Sec. 74.404.</num>
<heading>SALE OF MILITARY AWARDS AND DECORATIONS PROHIBITED</heading>
<subsection identifier="/us/tx/pr/t6/c74/scE/s74.404/a">
<num value="a">(a)</num>
<content>In this section, "military award or decoration" means a military decoration for an act of valor, heroism, or exceptional service, a good conduct medal, a service medal, a service ribbon, or a badge, tab, certificate, or letter awarded in connection with military service.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scE/s74.404/b">
<num value="b">(b)</num>
<chapeau>A military award or decoration delivered to the comptroller under this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c74/scE/s74.404/1">
<num value="1">(1)</num>
<content>may not be sold under Section 74.401 or destroyed; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scE/s74.404/2">
<num value="2">(2)</num>
<content>shall be delivered by the comptroller to the Texas military forces.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scE/s74.404/c">
<num value="c">(c)</num>
<content>The Texas military forces shall conduct a reasonable search of public records to locate the person to whom the military award or decoration was awarded. If the department cannot locate the person, the department shall attempt to locate the person's next of kin. If the department locates the person or the person's next of kin, the department shall deliver the award or decoration to the person or the person's next of kin, as applicable.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scE/s74.404/d">
<num value="d">(d)</num>
<chapeau>If the Texas military forces cannot locate the person to whom a military award or decoration was awarded or the person's next of kin, the award or decoration shall be held in trust for the comptroller at:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c74/scE/s74.404/1">
<num value="1">(1)</num>
<content>a museum established by the department; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scE/s74.404/2">
<num value="2">(2)</num>
<content>if no museum exists, any other public facility designated by the department.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scE/s74.404/e">
<num value="e">(e)</num>
<content>Except as provided by this subsection, a military award or decoration held in trust by a museum or facility designated under Subsection (d) shall be used in a display or exhibit that honors persons who have served the state or nation in military service. If the museum or facility cannot practically incorporate the award or decoration into an established display or exhibit of the museum or facility, the award or decoration shall be kept in a secure storage area or loaned to another museum for use in a display or exhibit that honors persons who have served the state or nation in military service.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scE/s74.404/f">
<num value="f">(f)</num>
<content>This section does not affect a person's right to claim a military award or decoration under Subchapter F.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 800, Sec. 2, eff. Sept. 1, 2001.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 1217 (S.B. 1536), Sec. 2.14, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scE/s74.405">
<num value="74.405">Sec. 74.405.</num>
<heading>DISPOSITION OF SECURITIES</heading>
<subsection identifier="/us/tx/pr/t6/c74/scE/s74.405/a">
<num value="a">(a)</num>
<content>The comptroller may sell or otherwise liquidate a security delivered to the comptroller under this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scE/s74.405/b">
<num value="b">(b)</num>
<content>The comptroller may not sell a security listed on an established stock exchange for less than the price prevailing on the exchange at the time of sale. The comptroller may sell a security not listed on an established exchange by any commercially reasonable method.</content>
</subsection>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 52 (H.B. 1514), Sec. 9, eff. May 18, 2021.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t6/c74/scF">
<num value="F">SUBCHAPTER F.</num>
<heading>CLAIM FOR DELIVERED PROPERTY</heading>
<section identifier="/us/tx/pr/t6/c74/scF/s74.501">
<num value="74.501">Sec. 74.501.</num>
<heading>CLAIM FILED WITH COMPTROLLER</heading>
<subsection identifier="/us/tx/pr/t6/c74/scF/s74.501/a">
<num value="a">(a)</num>
<content>The comptroller shall review the validity of each claim filed under this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scF/s74.501/b">
<num value="b">(b)</num>
<content>If the comptroller determines that a claim is valid, the comptroller or the comptroller's authorized agent shall approve the claim. If the claim is for money and has been approved under this section, the comptroller shall pay the claim. If a claim is for personal property other than money and has been approved under this section, the comptroller shall deliver the property to the claimant unless the comptroller has sold the property. If the property has been sold under Section 74.401, the comptroller shall pay to the claimant the proceeds from the sale.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scF/s74.501/c">
<num value="c">(c)</num>
<chapeau>All claims to which this subchapter applies must:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c74/scF/s74.501/1">
<num value="1">(1)</num>
<content>identify the specific property in the possession of the comptroller that is being claimed;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scF/s74.501/2">
<num value="2">(2)</num>
<content>include all necessary documentation the comptroller may require; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scF/s74.501/3">
<num value="3">(3)</num>
<content>except as provided by Section 74.503, be filed in accordance with procedures, contain the information, and be on forms prescribed by the comptroller.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scF/s74.501/d">
<num value="d">(d)</num>
<chapeau>On receipt of a claim form and all necessary documentation the comptroller may require, or as may be appropriate under the circumstances, the comptroller may approve the claim of:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c74/scF/s74.501/1">
<num value="1">(1)</num>
<content>the reported owner of the property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scF/s74.501/2">
<num value="2">(2)</num>
<chapeau>if the reported owner died testate:</chapeau>
<subparagraph identifier="/us/tx/pr/t6/c74/scF/s74.501/A">
<num value="A">(A)</num>
<content>the appropriate legal beneficiaries of the owner as provided by the last will and testament of the owner that has been accepted into probate or filed as a muniment of title;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t6/c74/scF/s74.501/B">
<num value="B">(B)</num>
<content>the executor of the owner's last will and testament who holds current letters testamentary; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t6/c74/scF/s74.501/C">
<num value="C">(C)</num>
<content>the appropriate legal beneficiaries of the owner as provided by a valid last will and testament of the owner that has not been accepted into probate or filed as a muniment of title, if:</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scF/s74.501/i">
<num value="i">(i)</num>
<chapeau>the amount of the property being claimed is less than $10,000; and</chapeau>
<clause identifier="/us/tx/pr/t6/c74/scF/s74.501/ii">
<num value="ii">(ii)</num>
<content>the beneficiaries named in the will are the same persons who would inherit the property if the owner had died intestate;</content>
</clause>
<paragraph identifier="/us/tx/pr/t6/c74/scF/s74.501/3">
<num value="3">(3)</num>
<chapeau>if the reported owner died intestate:</chapeau>
<subparagraph identifier="/us/tx/pr/t6/c74/scF/s74.501/A">
<num value="A">(A)</num>
<content>the legal heirs of the owner as provided by Sections 201.001, 201.002, and 201.003, Estates Code;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t6/c74/scF/s74.501/B">
<num value="B">(B)</num>
<content>the court-appointed independent administrator of the owner's estate, if the administrator was appointed before the fourth anniversary of the date of the death of the owner; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t6/c74/scF/s74.501/C">
<num value="C">(C)</num>
<content>the court-appointed dependent administrator of the owner's estate;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scF/s74.501/4">
<num value="4">(4)</num>
<content>the legal heirs of the reported owner as established by a determination of heirship order signed by a judge of the county probate court or by a county judge;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scF/s74.501/5">
<num value="5">(5)</num>
<content>if the reported owner is a minor child or an adult who has been adjudged incompetent by a court of law, the parent or legal guardian of the child or adult;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scF/s74.501/6">
<num value="6">(6)</num>
<chapeau>if the reported owner is a corporation:</chapeau>
<subparagraph identifier="/us/tx/pr/t6/c74/scF/s74.501/A">
<num value="A">(A)</num>
<content>the president or chair of the board of directors of the corporation, on behalf of the corporation; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t6/c74/scF/s74.501/B">
<num value="B">(B)</num>
<content>any person who has legal authority to act on behalf of the corporation;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scF/s74.501/7">
<num value="7">(7)</num>
<chapeau>if the reported owner is a corporation that has been dissolved or liquidated:</chapeau>
<subparagraph identifier="/us/tx/pr/t6/c74/scF/s74.501/A">
<num value="A">(A)</num>
<content>the sole surviving shareholder of the corporation, if there is only one surviving shareholder;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t6/c74/scF/s74.501/B">
<num value="B">(B)</num>
<content>the surviving shareholders of the corporation in proportion to their ownership of the corporation, if there is more than one surviving shareholder;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t6/c74/scF/s74.501/C">
<num value="C">(C)</num>
<content>the corporation's bankruptcy trustee, bankruptcy estate representative, or other person authorized pursuant to Title 11, United States Code, or an order of a bankruptcy court to act on behalf of or for the benefit of the corporation's bankruptcy estate, or any assignee of any such person; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t6/c74/scF/s74.501/D">
<num value="D">(D)</num>
<content>the court-ordered receiver for the corporation; or</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scF/s74.501/8">
<num value="8">(8)</num>
<content>any other person that is entitled to receive the unclaimed property under other law or comptroller policy.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scF/s74.501/e">
<num value="e">(e)</num>
<chapeau>Except as provided by Subsection (d)(7), (f), or (g) or Section 551.051, Estates Code, the comptroller may not pay to the following persons a claim to which this section applies:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c74/scF/s74.501/1">
<num value="1">(1)</num>
<content>a creditor, a judgment creditor, a lienholder, or an assignee of the reported owner or of the owner's heirs;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scF/s74.501/2">
<num value="2">(2)</num>
<content>a person holding a power of attorney from the reported owner or the owner's heirs; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scF/s74.501/3">
<num value="3">(3)</num>
<chapeau>a person attempting to make a claim on behalf of a corporation that was previously forfeited, dissolved, or terminated, if the comptroller finds that:</chapeau>
<subparagraph identifier="/us/tx/pr/t6/c74/scF/s74.501/A">
<num value="A">(A)</num>
<content>the corporation was revived for the purpose of making a claim under this section; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t6/c74/scF/s74.501/B">
<num value="B">(B)</num>
<content>the person submitting the claim was not an authorized representative of the corporation at the time of the corporation's forfeiture, dissolution, or termination.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scF/s74.501/f">
<num value="f">(f)</num>
<chapeau>Notwithstanding Subsection (e), the comptroller may approve the claim of:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c74/scF/s74.501/1">
<num value="1">(1)</num>
<content>the attorney general or other Title IV-D agency, as defined by Section 101.033, Family Code, for child support arrearages owed by the reported owner of the property that are reflected in a child support lien notice that complies with Section 157.313, Family Code; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scF/s74.501/2">
<num value="2">(2)</num>
<content>a person holding a durable power of attorney of a person who is medically incapacitated.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scF/s74.501/g">
<num value="g">(g)</num>
<content>The comptroller may approve a claim for unclaimed property that complies with Section 493.035, Government Code.</content>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1, 1985. Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 28, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.24, eff. Sept. 1, 1997; Acts 2003, 78th Leg., ch. 1310, Sec. 85, eff. Sept. 1, 2003.
Amended by:
Acts 2005, 79th Leg., Ch. 165 (H.B. 81), Sec. 1, eff. May 27, 2005.
Acts 2017, 85th Leg., R.S., Ch. 324 (S.B. 1488), Sec. 22.059, eff. September 1, 2017.
Acts 2019, 86th Leg., R.S., Ch. 267 (S.B. 1420), Sec. 3, eff. September 1, 2019.
Acts 2019, 86th Leg., R.S., Ch. 897 (H.B. 3598), Sec. 7, eff. June 10, 2019.
Acts 2021, 87th Leg., R.S., Ch. 52 (H.B. 1514), Sec. 10, eff. May 18, 2021.
Acts 2021, 87th Leg., R.S., Ch. 52 (H.B. 1514), Sec. 11, eff. May 18, 2021.
Acts 2021, 87th Leg., R.S., Ch. 915 (H.B. 3607), Sec. 17.001, eff. September 1, 2021.
Acts 2023, 88th Leg., R.S., Ch. 368 (H.B. 1221), Sec. 3, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scF/s74.502">
<num value="74.502">Sec. 74.502.</num>
<heading>CLAIM FILED WITH HOLDER</heading>
<subsection identifier="/us/tx/pr/t6/c74/scF/s74.502/a">
<num value="a">(a)</num>
<content>If a claim is filed with a holder under this section and the holder determines in good faith that the claim is valid, the holder may pay the amount of the claim.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scF/s74.502/b">
<num value="b">(b)</num>
<content>The comptroller shall reimburse the holder for a valid claim paid under this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scF/s74.502/c">
<num value="c">(c)</num>
<content>The request from a holder for reimbursement must be filed in accordance with procedures and on forms prescribed by the comptroller.</content>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1, 1985. Amended by Acts 1993, 73rd Leg., ch. 851, Sec. 1, eff. Sept. 1, 1993; Acts 1997, 75th Leg., ch. 1037, Sec. 28, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.25, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scF/s74.503">
<num value="74.503">Sec. 74.503.</num>
<heading>WAIVER OF CLAIM REQUIREMENT</heading>
<chapeau>The comptroller may waive the requirement of filing a claim and pay or deliver property directly to a person who does not file a claim if:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c74/scF/s74.503/1">
<num value="1">(1)</num>
<content>the person receiving the property is the reported owner of the property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scF/s74.503/2">
<num value="2">(2)</num>
<content>the comptroller reasonably believes the person is entitled to receive the property or payment; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scF/s74.503/3">
<num value="3">(3)</num>
<content>the property has a value of less than $5,000.</content>
</paragraph>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 52 (H.B. 1514), Sec. 12, eff. May 18, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scF/s74.504">
<num value="74.504">Sec. 74.504.</num>
<heading>HEARING</heading>
<subsection identifier="/us/tx/pr/t6/c74/scF/s74.504/a">
<num value="a">(a)</num>
<content>The comptroller may hold a hearing and receive evidence concerning a claim filed under this subchapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scF/s74.504/b">
<num value="b">(b)</num>
<content>If the comptroller considers that a hearing is necessary to determine the validity of a claim, the comptroller shall sign the statement of the findings and the decision on the claim. The statement shall report the substance of the evidence heard and the reasons for the decision. The statement is a public record.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scF/s74.504/c">
<num value="c">(c)</num>
<content>If the comptroller determines that a claim is valid, the comptroller shall approve and sign the claim.</content>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1, 1985. Amended by Acts 1993, 73rd Leg., ch. 36, Sec. 3.07, eff. Sept. 1, 1993; Acts 1993, 73rd Leg., ch. 851, Sec. 3, eff. Sept. 1, 1993; Acts 1997, 75th Leg., ch. 1037, Sec. 29, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.27, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scF/s74.506">
<num value="74.506">Sec. 74.506.</num>
<heading>APPEAL</heading>
<subsection identifier="/us/tx/pr/t6/c74/scF/s74.506/a">
<num value="a">(a)</num>
<content>A person who has filed a claim that complies with Section 74.501(c) may appeal the decision of the comptroller on the claim before the 61st day after the day on which it was rendered.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scF/s74.506/b">
<num value="b">(b)</num>
<content>If a claim that complies with Section 74.501(c) has not been decided before the 91st day after the day on which it was filed, the claimant may file an appeal if, after the claimant provides notice by certified mail to the comptroller of the intent to file an appeal, the comptroller does not reach a decision on the claim on or before the 60th day after the date the notice is delivered to the comptroller. An appeal under this section must be made within one year of the date the claim was filed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scF/s74.506/c">
<num value="c">(c)</num>
<content>An appeal under this section must be made by filing suit against the state in a district court in Travis County, Texas. The state's immunity from suit without consent is abolished with respect to suits brought under this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scF/s74.506/d">
<num value="d">(d)</num>
<content>A court shall try an action filed under this section de novo and shall apply the rules of practice of the court.</content>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1, 1985. Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 30, eff. Sept. 1, 1997.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 52 (H.B. 1514), Sec. 13, eff. May 18, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scF/s74.507">
<num value="74.507">Sec. 74.507.</num>
<heading>ASSISTANCE OF CLAIMANT; FEE FOR RECOVERY</heading>
<subsection identifier="/us/tx/pr/t6/c74/scF/s74.507/a">
<num value="a">(a)</num>
<content>A person who informs a potential claimant that the claimant may be entitled to claim property that is reportable to the comptroller under this chapter, that has been reported to the comptroller, or that is in the possession of the comptroller may not contract for or receive from the claimant for services an amount that exceeds 10 percent of the value of the property recovered, plus reasonable attorney's fees necessary to pursue the claim. If the property involved is mineral proceeds, the amount for services may not include a portion of the underlying minerals or any production payment, overriding royalty, or similar payment.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scF/s74.507/b">
<num value="b">(b)</num>
<content>The person who informs a potential claimant and by contract or other written agreement is to receive a percentage of the value of the property may not file or receive a form to claim on behalf of a claimant.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scF/s74.507/c">
<num value="c">(c)</num>
<chapeau>An agreement to assist a claimant in the recovery of property that is reportable to the comptroller, that has been reported to the comptroller, or that is in the possession of the comptroller under this chapter is enforceable only if the agreement:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c74/scF/s74.507/1">
<num value="1">(1)</num>
<content>clearly states the nature of the property and the services to be provided;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scF/s74.507/2">
<num value="2">(2)</num>
<content>is signed by or on behalf of the claimant; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scF/s74.507/3">
<num value="3">(3)</num>
<content>states the amount or value of the property reasonably expected to be recovered, computed before and after a fee or other compensation has been deducted.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1, 1985. Amended by Acts 1987, 70th Leg., ch. 426, Sec. 5, eff. Sept. 1, 1987; Acts 1993, 73rd Leg., ch. 36, Sec. 3.09, eff. Sept. 1, 1993; Acts 1997, 75th Leg., ch. 1037, Sec. 31, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.29, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 1208, Sec. 4, eff. Sept. 1, 1999.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 52 (H.B. 1514), Sec. 14, eff. May 18, 2021.
Acts 2021, 87th Leg., R.S., Ch. 52 (H.B. 1514), Sec. 15, eff. May 18, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scF/s74.508">
<num value="74.508">Sec. 74.508.</num>
<heading>CLAIM OF ANOTHER STATE TO RECOVER PROPERTY; PROCEDURE</heading>
<subsection identifier="/us/tx/pr/t6/c74/scF/s74.508/a">
<num value="a">(a)</num>
<chapeau>At any time after property has been paid or delivered to the comptroller under this chapter, another state may recover the property if:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c74/scF/s74.508/1">
<num value="1">(1)</num>
<content>the property was subjected to custody by this state because the records of the holder did not reflect the last known address of the apparent owner when the property was presumed abandoned under this chapter, and the other state establishes that the last known address of the apparent owner or other person entitled to the property was in that state and under the laws of that state the property escheated to or was subject to a claim of abandonment by that state;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scF/s74.508/2">
<num value="2">(2)</num>
<content>the last known address of the apparent owner or other person entitled to the property, as reflected by the records of the holder are in the other state and under the laws of that state the property has escheated to or become subject to a claim of abandonment by that state;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scF/s74.508/3">
<num value="3">(3)</num>
<content>the records of the holder were erroneous in that they did not accurately reflect the actual owner of the property and the last known address of the actual owner is in the other state and under the laws of that state the property escheated to or was subject to a claim of abandonment by that state;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scF/s74.508/4">
<num value="4">(4)</num>
<content>the property was subjected to custody by this state under Subdivision (6) of Subsection (a) of Section 72.001 and under the laws of the state of domicile of the holder the property has escheated to or become subject to a claim of abandonment by that state; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scF/s74.508/5">
<num value="5">(5)</num>
<content>the property is the sum payable on a traveler's check, money order, or other similar instrument that was subjected to custody by this state under Subdivision (4) and the instrument was purchased in the other state and under the laws of that state the property escheated to or became subject to a claim of abandonment by that state.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scF/s74.508/b">
<num value="b">(b)</num>
<content>The claim of another state to recover escheated or abandoned property must be presented in a form prescribed by the comptroller, who shall decide the claim within 90 days after it is presented. The comptroller shall allow the claim if he determines that the other state is entitled to the abandoned property under Subsection (a).</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 426, Sec. 5, eff. Sept. 1, 1987. Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 31, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.30, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scF/s74.509">
<num value="74.509">Sec. 74.509.</num>
<heading>HANDLING FEE FOR PROCESSING UNCLAIMED PROPERTY</heading>
<content>A handling fee may be deducted from the amount of the claim payment if the payment is at least $100.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 36, Sec. 3.10, eff. Sept. 1, 1993. Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 31, eff. Sept. 1, 1997.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t6/c74/scG">
<num value="G">SUBCHAPTER G.</num>
<heading>UNCLAIMED MONEY</heading>
<section identifier="/us/tx/pr/t6/c74/scG/s74.601">
<num value="74.601">Sec. 74.601.</num>
<heading>UNCLAIMED MONEY</heading>
<subsection identifier="/us/tx/pr/t6/c74/scG/s74.601/a">
<num value="a">(a)</num>
<content>The comptroller shall maintain a record that documents unclaimed money received under this chapter or any other statute requiring the delivery of unclaimed property to the comptroller.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scG/s74.601/b">
<num value="b">(b)</num>
<chapeau>The comptroller shall deposit to the credit of the general revenue fund:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c74/scG/s74.601/1">
<num value="1">(1)</num>
<content>all funds, including marketable securities, delivered to the comptroller under this chapter or any other statute requiring the delivery of unclaimed property to the comptroller;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scG/s74.601/2">
<num value="2">(2)</num>
<content>all proceeds from the sale of any property, including marketable securities, under this chapter;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scG/s74.601/3">
<num value="3">(3)</num>
<content>all funds that have escheated to the state under Chapter 71, except that funds relating to escheated real property shall be deposited according to Section 71.202; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scG/s74.601/4">
<num value="4">(4)</num>
<content>any income derived from investments of the unclaimed money.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scG/s74.601/c">
<num value="c">(c)</num>
<content>The comptroller shall keep a separate record and accounting for delivered unclaimed property, other than money, before its sale.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scG/s74.601/d">
<num value="d">(d)</num>
<content>Except as provided by Subsection (e), the comptroller shall from time to time invest the amount of unclaimed money in investments approved by law for the investment of state funds.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scG/s74.601/e">
<num value="e">(e)</num>
<content>The comptroller may use the proceeds from the sale of securities delivered under this chapter to buy, exchange, invest, or reinvest in marketable securities. When making or selling the investments, the comptroller shall exercise the judgment and care of a prudent person.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scG/s74.601/f">
<num value="f">(f)</num>
<content>The comptroller shall keep a separate record and accounting for securities delivered, sold, purchased, or exchanged and the proceeds and earnings from the securities.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scG/s74.601/g">
<num value="g">(g)</num>
<content>If an owner does not assert a claim for unclaimed money and the owner is reported to be the state or a state agency, the comptroller may deposit the unclaimed money to the credit of the general revenue fund. The comptroller may establish procedures and adopt rules as necessary to implement this subsection.</content>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1, 1985. Amended by Acts 1993, 73rd Leg., ch. 36, Sec. 3.11, eff. Sept. 1, 1993; Acts 1997, 75th Leg., ch. 1037, Sec. 32, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.32, eff. Sept. 1, 1997.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 232 (S.B. 1589), Sec. 4, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 685 (H.B. 257), Sec. 9, eff. September 1, 2011.
Acts 2021, 87th Leg., R.S., Ch. 52 (H.B. 1514), Sec. 16, eff. May 18, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scG/s74.602">
<num value="74.602">Sec. 74.602.</num>
<heading>USE OF MONEY</heading>
<content>Except as provided by Section 381.004, Local Government Code, and Section 74.604 the comptroller shall use the unclaimed money received under this chapter or any other statute requiring the delivery of unclaimed property to the comptroller to pay the claims of persons or states establishing ownership of property in the possession of the comptroller under this chapter or under any other unclaimed property or escheat statute.</content>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1, 1985. Amended by Acts 1991, 72nd Leg. ch. 304, Sec. 1.40, eff. Jan. 1, 1992; Acts 1993, 73rd Leg., ch. 27, Sec. 3, eff. April 13, 1993; Acts 1993, 73rd Leg., ch. 36, Sec. 3.13, eff. Sept. 1, 1993; Acts 1993, 73rd Leg., ch. 506, Sec. 1, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 1037, Sec. 32, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.33, eff. Sept. 1, 1997.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 1134 (S.B. 658), Sec. 1, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scG/s74.603">
<num value="74.603">Sec. 74.603.</num>
<heading>AUDIT; APPROPRIATION</heading>
<content>The unclaimed money received under this chapter or any other statute requiring the delivery of unclaimed property to the comptroller is subject to audit by the State Auditor and to appropriation by the legislature for enforcing and administering this title.</content>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1, 1985. Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 32, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scG/s74.604">
<num value="74.604">Sec. 74.604.</num>
<heading>DISPOSITION OF MONEY DELIVERED TO COMPTROLLER FROM CERTAIN ATTORNEY ACCOUNTS</heading>
<subsection identifier="/us/tx/pr/t6/c74/scG/s74.604/a">
<num value="a">(a)</num>
<content>In this section, "IOLTA account" means an account established as required by the Interest on Lawyers' Trust Accounts Program administered by the Texas Access to Justice Foundation under supreme court rule.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scG/s74.604/b">
<num value="b">(b)</num>
<chapeau>Except as provided by Subsection (c), this section applies to money delivered to the comptroller under Section 74.301 as:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c74/scG/s74.604/1">
<num value="1">(1)</num>
<content>unclaimed or unidentified money in a client trust account established by an attorney or law firm; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scG/s74.604/2">
<num value="2">(2)</num>
<content>money in an abandoned IOLTA account.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scG/s74.604/c">
<num value="c">(c)</num>
<content>This section does not apply to money paid or delivered to a reported owner by the comptroller under Section 74.503.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scG/s74.604/d">
<num value="d">(d)</num>
<content>Notwithstanding any other law, the comptroller shall deposit money to which this section applies to the credit of the basic civil legal services account of the judicial fund. Except as provided by Subsection (e), money deposited to the credit of the basic civil legal services account under this section may be appropriated only to the supreme court for use in programs approved by the supreme court that provide basic civil legal services to indigent persons.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scG/s74.604/e">
<num value="e">(e)</num>
<content>If the comptroller pays a claim for money deposited to the credit of the basic civil legal services account under Subsection (d), the supreme court shall reimburse the comptroller from the account for the amount of the claim. The supreme court may use money deposited under Subsection (d) to reimburse the comptroller.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scG/s74.604/f">
<num value="f">(f)</num>
<content>The comptroller and the supreme court may adopt rules necessary to implement this section.</content>
</subsection>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 1134 (S.B. 658), Sec. 2, eff. September 1, 2023.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t6/c74/scH">
<num value="H">SUBCHAPTER H.</num>
<heading>ENFORCEMENT</heading>
<section identifier="/us/tx/pr/t6/c74/scH/s74.701">
<num value="74.701">Sec. 74.701.</num>
<heading>RULES</heading>
<content>The comptroller may adopt rules necessary to carry out this title.</content>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1, 1985. Amended by Acts 1997, 75th Leg., ch. 1037, Sec. 33, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.34, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scH/s74.702">
<num value="74.702">Sec. 74.702.</num>
<heading>EXAMINATION OF RECORDS</heading>
<subsection identifier="/us/tx/pr/t6/c74/scH/s74.702/a">
<num value="a">(a)</num>
<content>For purposes of the application and enforcement of this title, the comptroller, the attorney general, or an authorized agent of either, may at any reasonable time and place, examine the books and records of any person to determine whether the person has complied with this title.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scH/s74.702/b">
<num value="b">(b)</num>
<content>The comptroller, the attorney general, or an agent of either may not make public any information obtained by an examination made under this section and may not disclose that information except in the course of a judicial proceeding, authorized by this chapter, in which the state is a party or pursuant to an agreement with another state allowing joint audits or the exchange of information obtained under this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scH/s74.702/c">
<num value="c">(c)</num>
<content>Subsection (a) applies to any books, records, papers, information, or other objects determined by the comptroller or attorney general to be necessary to conduct a complete examination under this title.</content>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1, 1985. Amended by Acts 1991, 72nd Leg., ch. 153, Sec. 21, eff. Sept. 1, 1991; Acts 1993, 73rd Leg., ch. 36, Sec. 3.12, eff. Sept. 1, 1993; Acts 1997, 75th Leg., ch. 1037, Sec. 33, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.35, eff. Sept. 1, 1997.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 897 (H.B. 3598), Sec. 8, eff. June 10, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scH/s74.7021">
<num value="74.7021">Sec. 74.7021.</num>
<heading>LIMITATION PERIOD FOR EXAMINATION</heading>
<subsection identifier="/us/tx/pr/t6/c74/scH/s74.7021/a">
<num value="a">(a)</num>
<content>The comptroller or attorney general may not begin an examination relating to the reporting, payment, or delivery of property under this chapter after the seventh anniversary of the date a person filed a property report under this title.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scH/s74.7021/b">
<num value="b">(b)</num>
<chapeau>The limitation provided by this section does not apply if:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c74/scH/s74.7021/1">
<num value="1">(1)</num>
<content>the person has filed a false or fraudulent property report with the intent to avoid delivery of property as required by this title;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scH/s74.7021/2">
<num value="2">(2)</num>
<content>a property report for a period has not been filed; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scH/s74.7021/3">
<num value="3">(3)</num>
<content>a court grants a petition to compel the person to submit to an examination under this chapter, deliver property, or file a property report.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scH/s74.7021/c">
<num value="c">(c)</num>
<content>For purposes of Subsection (b)(1), a person is presumed to have acted with intent to avoid delivery of property as required by this title if, after correction of a report, the amount of property to be delivered under this title exceeds the amount initially reported by at least 25 percent.</content>
</subsection>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 897 (H.B. 3598), Sec. 9, eff. June 10, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scH/s74.703">
<num value="74.703">Sec. 74.703.</num>
<heading>ADDITIONAL PERSONNEL</heading>
<subsection identifier="/us/tx/pr/t6/c74/scH/s74.703/a">
<num value="a">(a)</num>
<content>The comptroller and the attorney general may employ, in the office of either official, additional personnel necessary to enforce this title.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scH/s74.703/b">
<num value="b">(b)</num>
<content>The salary rate of additional personnel may not exceed the rate paid to other state employees for similar services.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scH/s74.703/c">
<num value="c">(c)</num>
<content>The salaries of additional personnel shall be paid in accordance with Section 74.602.</content>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1, 1985. Amended by Acts 1997, 75th leg., ch. 1037, Sec. 34, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.36, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scH/s74.704">
<num value="74.704">Sec. 74.704.</num>
<heading>ASSISTANCE IN ENFORCEMENT</heading>
<subsection identifier="/us/tx/pr/t6/c74/scH/s74.704/a">
<num value="a">(a)</num>
<content>If the comptroller requests, the attorney general shall assist the comptroller in enforcing this title.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scH/s74.704/b">
<num value="b">(b)</num>
<content>If the comptroller or the attorney general requests, the state auditor, banking commissioner, securities commissioner, commissioner of insurance, savings and mortgage lending commissioner, Credit Union Commission, Department of Public Safety of the State of Texas, or Texas Workforce Commission, a district or county attorney, or any other state agency or political subdivision of this state shall assist the comptroller or attorney general in enforcing this title.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scH/s74.704/c">
<num value="c">(c)</num>
<content>Notwithstanding any other law, a state agency or political subdivision may not impose a charge for providing a copy of public information requested by the comptroller under this section.</content>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1, 1985. Amended by Acts 1997, 75th leg., ch. 1037, Sec. 35, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.37, eff. Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 6.065, eff. September 1, 2007.
Acts 2019, 86th Leg., R.S., Ch. 897 (H.B. 3598), Sec. 10, eff. June 10, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scH/s74.705">
<num value="74.705">Sec. 74.705.</num>
<heading>INTEREST</heading>
<chapeau>A holder who fails to pay or deliver property within the time prescribed by this chapter shall pay to the comptroller interest, at an annual rate of 10 percent, on the property from the date the property should have been paid or delivered until the date the property is actually paid or delivered.</chapeau>
<subsection identifier="/us/tx/pr/t6/c74/scH/s74.705/b">
<num value="b">(b)</num>
<content>to (e) Deleted by Acts 1997, 75th Leg., ch. 1037, Sec. 35, eff. Sept. 1, 1997.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scH/s74.705/f">
<num value="f">(f)</num>
<content>A person is exempt from payment of interest under Subsection (a) if the person's action or omission is in connection with the person's official duties as an officer or employee of a political subdivision of this state.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scH/s74.705/g">
<num value="g">(g)</num>
<content>In this section, "person" does not include a local governmental entity or an officer or employee of a local governmental entity who is performing the officer's or employee's official duties for the local governmental entity.</content>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1, 1985. Amended by Acts 1987, 70th Leg., ch. 426, Sec. 5, eff. Sept. 1, 1987; Acts 1997, 75th Leg., ch. 483, Sec. 1, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 888, Sec. 1, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1037, Sec. 35, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 16.38, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 62, Sec. 19.01(90), eff. Sept. 1, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scH/s74.706">
<num value="74.706">Sec. 74.706.</num>
<heading>PENALTY</heading>
<subsection identifier="/us/tx/pr/t6/c74/scH/s74.706/a">
<num value="a">(a)</num>
<content>A penalty equal to five percent of the value of the property due shall be imposed on a holder who fails to pay or deliver property within the time prescribed by this chapter. If a holder fails to pay or deliver property before the 31st day after the date the property is due, an additional penalty equal to five percent of the value of the property due shall be imposed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scH/s74.706/b">
<num value="b">(b)</num>
<content>For purposes of Subsection (a), "holder" does not include a local governmental entity or an officer or employee of a local governmental entity who is performing the officer's or employee's official duties for the local governmental entity.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 36, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 748, Sec. 1, eff. Sept. 1, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scH/s74.707">
<num value="74.707">Sec. 74.707.</num>
<heading>WAIVER OR ABATEMENT OF PENALTY OR INTEREST</heading>
<subsection identifier="/us/tx/pr/t6/c74/scH/s74.707/a">
<num value="a">(a)</num>
<content>The comptroller may waive penalty or interest, in whole or in part, imposed on delinquent property if the comptroller determines that the holder has made a good faith effort to comply with Chapters 72-75, or for other good cause.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scH/s74.707/b">
<num value="b">(b)</num>
<content>The comptroller may provide for periods during which a holder of delinquent property may report and remit the unclaimed property without paying a penalty or interest.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scH/s74.707/c">
<num value="c">(c)</num>
<content>The comptroller may waive penalty and interest imposed on delinquent property if the holder delivering the property was required to deliver the property on or before November 1, 1997.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 36, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 137, Sec. 1, eff. May 16, 2001.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 52 (H.B. 1514), Sec. 17, eff. May 18, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scH/s74.708">
<num value="74.708">Sec. 74.708.</num>
<heading>PROPERTY HELD IN TRUST</heading>
<content>A holder who on March 1 holds property presumed abandoned under Chapters 72-75 holds the property in trust for the benefit of the state on behalf of the missing owner and is liable to the state for the full value of the property, plus any accrued interest and penalty. A holder is not required by this section to segregate or establish trust accounts for the property provided the property is timely delivered to the comptroller in accordance with Section 74.301.</content>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 36, eff. Sept. 1, 1997.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 685 (H.B. 257), Sec. 10, eff. January 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scH/s74.709">
<num value="74.709">Sec. 74.709.</num>
<heading>SUIT TO COMPEL DELIVERY OF PROPERTY AND CIVIL PENALTIES</heading>
<subsection identifier="/us/tx/pr/t6/c74/scH/s74.709/a">
<num value="a">(a)</num>
<chapeau>On request of the comptroller, the attorney general shall bring an action in district court, in the name of the state, to compel a person to:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c74/scH/s74.709/1">
<num value="1">(1)</num>
<content>permit examination of records in accordance with this chapter;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scH/s74.709/2">
<num value="2">(2)</num>
<content>deliver property; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scH/s74.709/3">
<num value="3">(3)</num>
<content>file a property report.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scH/s74.709/b">
<num value="b">(b)</num>
<content>Venue for a suit brought under this section is in Travis County.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scH/s74.709/c">
<num value="c">(c)</num>
<content>The fact that a suit seeks enforcement of this section from more than one holder is not grounds for an objection concerning misjoinder of parties or causes of action.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scH/s74.709/d">
<num value="d">(d)</num>
<content>When introduced into evidence, the verified property report, unless rebutted, is sufficient evidence that the property is abandoned and subject to delivery under this chapter and for entry of a judgment transferring custody of the property to the comptroller.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scH/s74.709/e">
<num value="e">(e)</num>
<content>The attorney general, on behalf of the comptroller, may recover reasonable attorney's fees from the holder in addition to recovery of any unclaimed property accrued or a penalty or interest due.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scH/s74.709/f">
<num value="f">(f)</num>
<content>In addition to a penalty or interest assessed on delinquent property, a holder who fails to pay or deliver property or who fails to file a property report within the time prescribed by this chapter is subject to a civil penalty not to exceed $100 for each day of violation.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 36, eff. Sept. 1, 1997.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 897 (H.B. 3598), Sec. 11, eff. June 10, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scH/s74.710">
<num value="74.710">Sec. 74.710.</num>
<heading>CRIMINAL OFFENSE</heading>
<subsection identifier="/us/tx/pr/t6/c74/scH/s74.710/a">
<num value="a">(a)</num>
<chapeau>A holder commits an offense if the holder wilfully violates this chapter, including:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c74/scH/s74.710/1">
<num value="1">(1)</num>
<content>failing to file a report in accordance with this chapter;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scH/s74.710/2">
<num value="2">(2)</num>
<content>failing to pay or deliver property in accordance with this chapter; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scH/s74.710/3">
<num value="3">(3)</num>
<content>refusing to permit examination of records in accordance with this chapter.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scH/s74.710/b">
<num value="b">(b)</num>
<content>An offense under this section is a Class B misdemeanor.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 36, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scH/s74.711">
<num value="74.711">Sec. 74.711.</num>
<heading>AUTHORITY TO TAKE TESTIMONY AND ISSUE ADMINISTRATIVE SUBPOENAS</heading>
<subsection identifier="/us/tx/pr/t6/c74/scH/s74.711/a">
<num value="a">(a)</num>
<chapeau>To enforce this title, the comptroller may:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c74/scH/s74.711/1">
<num value="1">(1)</num>
<content>take testimony;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scH/s74.711/2">
<num value="2">(2)</num>
<content>administer oaths; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c74/scH/s74.711/3">
<num value="3">(3)</num>
<chapeau>issue subpoenas to compel any person to:</chapeau>
<subparagraph identifier="/us/tx/pr/t6/c74/scH/s74.711/A">
<num value="A">(A)</num>
<content>appear and give testimony under oath at a time and place reasonable under the circumstances; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t6/c74/scH/s74.711/B">
<num value="B">(B)</num>
<content>produce relevant books, records, documents, or other data, in whatever form, for audit, inspection, and copying.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scH/s74.711/b">
<num value="b">(b)</num>
<content>The comptroller may delegate the authority granted under this section to take testimony, administer oaths, and issue subpoenas to an attorney employed by the comptroller.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scH/s74.711/c">
<num value="c">(c)</num>
<content>A person authorized to serve process under the Texas Rules of Civil Procedure may serve a subpoena issued under this section. The person shall serve the subpoena in accordance with the Texas Rules of Civil Procedure.</content>
</subsection>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 897 (H.B. 3598), Sec. 12, eff. June 10, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c74/scH/s74.712">
<num value="74.712">Sec. 74.712.</num>
<heading>ENFORCEMENT OF SUBPOENAS</heading>
<subsection identifier="/us/tx/pr/t6/c74/scH/s74.712/a">
<num value="a">(a)</num>
<content>If the person to whom a subpoena is directed under Section 74.711 fails to comply with the subpoena, or fails to file a motion to quash or otherwise demand a pre-compliance review of the subpoena, within the return date specified in the subpoena, the attorney general shall, on the request of the comptroller, bring suit to enforce the subpoena. The suit may be brought in a district court of Travis County.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c74/scH/s74.712/b">
<num value="b">(b)</num>
<content>A court that determines that the subpoena was issued in good faith shall order compliance with the subpoena. The court may apply penalties for civil and criminal contempt otherwise available at law if a person refuses to comply with the court's order.</content>
</subsection>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 897 (H.B. 3598), Sec. 12, eff. June 10, 2019.</sourceCredit>
</section>
</subchapter>
</chapter>
<chapter identifier="/us/tx/pr/t6/c75">
<num value="75">CHAPTER 75.</num>
<heading>TEXAS MINERALS</heading>
<subchapter identifier="/us/tx/pr/t6/c75/scA">
<num value="A">SUBCHAPTER A.</num>
<heading>APPLICABILITY</heading>
<section identifier="/us/tx/pr/t6/c75/scA/s75.001">
<num value="75.001">Sec. 75.001.</num>
<heading>DEFINITIONS; APPLICATION OF CHAPTER</heading>
<subsection identifier="/us/tx/pr/t6/c75/scA/s75.001/a">
<num value="a">(a)</num>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c75/scA/s75.001/1">
<num value="1">(1)</num>
<content>"Mineral" means oil, gas, uranium, sulphur, lignite, coal, and any other substance that is ordinarily and naturally considered a mineral in this state, regardless of the depth at which the oil, gas, uranium, sulphur, lignite, coal, or other substance is found.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c75/scA/s75.001/2">
<num value="2">(2)</num>
<chapeau>"Mineral proceeds" includes:</chapeau>
<subparagraph identifier="/us/tx/pr/t6/c75/scA/s75.001/A">
<num value="A">(A)</num>
<content>all obligations to pay resulting from the production and sale of minerals, including net revenue interests, royalties, overriding royalties, production payments, and joint operating agreements; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t6/c75/scA/s75.001/B">
<num value="B">(B)</num>
<content>all obligations for the acquisition and retention of a mineral lease, including bonuses, delay rentals, shut-in royalties, and minimum royalties.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c75/scA/s75.001/3">
<num value="3">(3)</num>
<chapeau>"Holder" means a person, wherever organized or domiciled, who is:</chapeau>
<subparagraph identifier="/us/tx/pr/t6/c75/scA/s75.001/A">
<num value="A">(A)</num>
<content>in possession of property that belongs to another;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t6/c75/scA/s75.001/B">
<num value="B">(B)</num>
<content>a trustee; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t6/c75/scA/s75.001/C">
<num value="C">(C)</num>
<content>indebted to another on an obligation.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c75/scA/s75.001/b">
<num value="b">(b)</num>
<chapeau>This chapter applies to mineral proceeds and the owner's underlying right to receive those mineral proceeds if:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c75/scA/s75.001/1">
<num value="1">(1)</num>
<content>the owner's underlying right to receive mineral proceeds is related to land located in this state;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c75/scA/s75.001/2">
<num value="2">(2)</num>
<content>the mineral proceeds result from the production of minerals located in this state; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c75/scA/s75.001/3">
<num value="3">(3)</num>
<content>the mineral proceeds are an obligation for the acquisition or retention of a mineral lease to produce minerals located in this state.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c75/scA/s75.001/c">
<num value="c">(c)</num>
<content>A holder of property presumed abandoned under this chapter is subject to the procedures of Chapter 74.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c75/scA/s75.001/d">
<num value="d">(d)</num>
<content>This chapter supplements other chapters in this title, and each chapter shall be followed to the extent applicable.</content>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1, 1985. Amended by Acts 1987, 70th Leg., ch. 426, Sec. 6, eff. Sept. 1, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c75/scA/s75.002">
<num value="75.002">Sec. 75.002.</num>
<heading>TRANSFER AND PURCHASE OF MINERAL INTEREST ON MINERAL PROCEEDS</heading>
<content>A person purchasing mineral proceeds of an owner whose name has been reported or is reportable to the comptroller shall provide documentation required by the comptroller to substantiate that the transfer is executed by the reported owner or the reported owner's legal agent.</content>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 37, eff. Sept. 1, 1997.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t6/c75/scB">
<num value="B">SUBCHAPTER B.</num>
<heading>PRESUMPTION OF ABANDONMENT</heading>
<section identifier="/us/tx/pr/t6/c75/scB/s75.101">
<num value="75.101">Sec. 75.101.</num>
<heading>PRESUMPTION OF ABANDONMENT</heading>
<subsection identifier="/us/tx/pr/t6/c75/scB/s75.101/a">
<num value="a">(a)</num>
<content>All mineral proceeds that are held or owing by the holder and that have remained unclaimed by the owner for longer than three years after they became payable or distributable and the owner's underlying right to receive those mineral proceeds are presumed abandoned.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c75/scB/s75.101/b">
<num value="b">(b)</num>
<content>At the time any owner's underlying right to receive mineral proceeds is presumed abandoned under this section, any mineral proceeds then held for or owing to the owner as a result of the underlying right and any mineral proceeds accruing after that time as a result of the underlying right and not previously presumed abandoned are presumed abandoned.</content>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1, 1985. Amended by Acts 1987, 70th Leg., ch. 426, Sec. 7, eff. Sept. 1, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c75/scB/s75.102">
<num value="75.102">Sec. 75.102.</num>
<heading>PRESERVATION OF PROPERTY</heading>
<content>A holder of abandoned property shall preserve that property and may not by any procedure, including a deduction for service, maintenance, or other charge, transfer, convert, or reduce the property to the profits or assets of the holder.</content>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 230, Sec. 17, eff. Sept. 1, 1985.</sourceCredit>
</section>
</subchapter>
</chapter>
<chapter identifier="/us/tx/pr/t6/c76">
<num value="76">CHAPTER 76.</num>
<heading>REPORT, DELIVERY, AND CLAIMS PROCESS FOR CERTAIN PROPERTY</heading>
<subchapter identifier="/us/tx/pr/t6/c76/scA">
<num value="A">SUBCHAPTER A.</num>
<heading>GENERAL PROVISIONS</heading>
<section identifier="/us/tx/pr/t6/c76/scA/s76.001">
<num value="76.001">Sec. 76.001.</num>
<heading>APPLICABILITY</heading>
<subsection identifier="/us/tx/pr/t6/c76/scA/s76.001/a">
<num value="a">(a)</num>
<chapeau>This chapter applies only to the holder of property if:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c76/scA/s76.001/1">
<num value="1">(1)</num>
<chapeau>the holder is a:</chapeau>
<subparagraph identifier="/us/tx/pr/t6/c76/scA/s76.001/A">
<num value="A">(A)</num>
<content>school district;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t6/c76/scA/s76.001/B">
<num value="B">(B)</num>
<content>municipality;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t6/c76/scA/s76.001/C">
<num value="C">(C)</num>
<content>county; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t6/c76/scA/s76.001/D">
<num value="D">(D)</num>
<content>junior college that has, in the manner described by Subsection (b), opted to handle property described by Subdivision (2) in accordance with this chapter; and</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c76/scA/s76.001/2">
<num value="2">(2)</num>
<chapeau>the property is:</chapeau>
<subparagraph identifier="/us/tx/pr/t6/c76/scA/s76.001/A">
<num value="A">(A)</num>
<content>presumed abandoned under Chapter 72 or 75; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t6/c76/scA/s76.001/B">
<num value="B">(B)</num>
<content>valued at $100 or less.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scA/s76.001/b">
<num value="b">(b)</num>
<content>This chapter applies to a junior college only if the governing board of the junior college takes formal action to opt to handle property described by Subsection (a)(2) in accordance with this chapter.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 1015, Sec. 1, eff. Sept. 1, 2000.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 478 (H.B. 650), Sec. 1, eff. June 17, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c76/scA/s76.002">
<num value="76.002">Sec. 76.002.</num>
<heading>OFFICERS AND REPRESENTATIVES</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c76/scA/s76.002/1">
<num value="1">(1)</num>
<content>a reference to the treasurer of a holder includes a person performing the duties of the treasurer of a holder in a school district, municipality, or county in which the office of treasurer does not exist;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c76/scA/s76.002/2">
<num value="2">(2)</num>
<content>a reference to the chief fiscal officer of a holder includes a person performing the duties of the chief fiscal officer of a holder in a school district, municipality, or county in which the office of chief fiscal officer does not exist; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c76/scA/s76.002/3">
<num value="3">(3)</num>
<content>a reference to the attorney for a holder includes an attorney designated by the governing body of the holder to represent the holder.</content>
</paragraph>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 1015, Sec. 2, eff. Sept. 1, 2000.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t6/c76/scB">
<num value="B">SUBCHAPTER B.</num>
<heading>PROPERTY REPORT</heading>
<section identifier="/us/tx/pr/t6/c76/scB/s76.101">
<num value="76.101">Sec. 76.101.</num>
<heading>PROPERTY REPORT</heading>
<subsection identifier="/us/tx/pr/t6/c76/scB/s76.101/a">
<num value="a">(a)</num>
<content>Each holder who on June 30 holds property subject to this chapter shall file a report of that property on or before the following November 1. Each report shall be filed with the treasurer of the holder as provided by this section and on forms prescribed by the treasurer of the holder.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scB/s76.101/b">
<num value="b">(b)</num>
<content>A holder required by Subsection (a) to file a report shall file a report each successive year regardless of whether the holder has any reportable property on June 30 of the year in which the report is filed.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c76/scB/s76.102">
<num value="76.102">Sec. 76.102.</num>
<heading>VERIFICATION</heading>
<subsection identifier="/us/tx/pr/t6/c76/scB/s76.102/a">
<num value="a">(a)</num>
<content>The person preparing a property report shall place at the end of each copy of the report a verification made under oath and executed by the chief fiscal officer of the holder, as designated by the holder.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scB/s76.102/b">
<num value="b">(b)</num>
<content>The verification must include the following sentence: "This report contains a full and complete list of all property held by the undersigned that, from the knowledge and records of the undersigned, is abandoned under the laws of the State of Texas."</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c76/scB/s76.103">
<num value="76.103">Sec. 76.103.</num>
<heading>RETENTION OF RECORDS</heading>
<subsection identifier="/us/tx/pr/t6/c76/scB/s76.103/a">
<num value="a">(a)</num>
<chapeau>The holder required to file a property report shall keep a record of:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c76/scB/s76.103/1">
<num value="1">(1)</num>
<content>the name and last known address of each person who, from the records of the holder, appears to be the owner of the property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c76/scB/s76.103/2">
<num value="2">(2)</num>
<content>a brief description of the property, including the identification number of the account, if any; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c76/scB/s76.103/3">
<num value="3">(3)</num>
<content>the balance of each account, if appropriate.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scB/s76.103/b">
<num value="b">(b)</num>
<content>The record must be kept until the 10th anniversary of the date on which the property is reportable.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scB/s76.103/c">
<num value="c">(c)</num>
<content>The treasurer of the holder may provide for a shorter period for keeping a record required by this section.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c76/scB/s76.104">
<num value="76.104">Sec. 76.104.</num>
<heading>CONFIDENTIALITY OF PROPERTY REPORT</heading>
<subsection identifier="/us/tx/pr/t6/c76/scB/s76.104/a">
<num value="a">(a)</num>
<content>Except as provided by this chapter, a property report filed with the treasurer of the holder is confidential until the second anniversary of the date the report is filed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scB/s76.104/b">
<num value="b">(b)</num>
<content>Notwithstanding other law, the social security number of an owner that is reported to the treasurer of the holder is confidential.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t6/c76/scC">
<num value="C">SUBCHAPTER C.</num>
<heading>NOTICE</heading>
<section identifier="/us/tx/pr/t6/c76/scC/s76.201">
<num value="76.201">Sec. 76.201.</num>
<heading>PUBLISHED NOTICE</heading>
<subsection identifier="/us/tx/pr/t6/c76/scC/s76.201/a">
<num value="a">(a)</num>
<content>Except as provided by Subsections (b) and (e), the treasurer of a holder shall publish a notice in a newspaper in the calendar year immediately following the year in which the property report is filed. The newspaper must be a newspaper of general circulation in the jurisdiction of the holder.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scC/s76.201/b">
<num value="b">(b)</num>
<content>The treasurer of the holder may use a method of publishing notice that is different from that prescribed by Subsection (a) if the treasurer determines that the different method would be as likely as the prescribed method to give actual notice to the person required to be named in the notice.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scC/s76.201/c">
<num value="c">(c)</num>
<chapeau>The published notice must state that the reported property is presumed abandoned and subject to this chapter and must contain:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c76/scC/s76.201/1">
<num value="1">(1)</num>
<content>a statement that, by addressing an inquiry to the treasurer of the holder, any person possessing a legal or beneficial interest in the reported property may obtain information concerning the amount of the property; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c76/scC/s76.201/2">
<num value="2">(2)</num>
<content>a statement that the owner may present proof of the claim to the treasurer of the holder and establish the owner's right to receive the property.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scC/s76.201/d">
<num value="d">(d)</num>
<content>The treasurer of a holder may offer for sale space for suitable advertisements in a notice published under this section. Proceeds from the sale of the advertising space shall be used to defray the cost of publishing the notices, with the remaining amount, if any, to be deposited to the credit of the unclaimed money fund.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scC/s76.201/e">
<num value="e">(e)</num>
<content>In the notice required by this section, the treasurer of the holder may publish other information regarding property if the treasurer determines that publication of that information is in the public interest.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c76/scC/s76.202">
<num value="76.202">Sec. 76.202.</num>
<heading>NOTICE TO OWNER</heading>
<subsection identifier="/us/tx/pr/t6/c76/scC/s76.202/a">
<num value="a">(a)</num>
<content>During the calendar year immediately following the year in which the property report is filed, the treasurer of the holder may mail a notice to each person who has an address in this state and appears to be entitled to the reported property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scC/s76.202/b">
<num value="b">(b)</num>
<chapeau>The notice must contain:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c76/scC/s76.202/1">
<num value="1">(1)</num>
<content>a statement that property is being held by the treasurer of the holder to which the addressee appears to be entitled; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c76/scC/s76.202/2">
<num value="2">(2)</num>
<content>a statement that the owner may present proof of the claim to the treasurer of the holder and establish the owner's right to receive the property.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c76/scC/s76.203">
<num value="76.203">Sec. 76.203.</num>
<heading>NOTICE THAT ACCOUNTS ARE SUBJECT TO THIS CHAPTER</heading>
<content>Publication of notice in accordance with Section 76.201 is notice to the owner by the holder that the reported property is subject to this chapter.</content>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c76/scC/s76.204">
<num value="76.204">Sec. 76.204.</num>
<heading>CHARGE FOR NOTICE</heading>
<chapeau>The treasurer of the holder may charge the following against the property delivered under this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c76/scC/s76.204/1">
<num value="1">(1)</num>
<content>expenses incurred for the publication of notice required by Section 76.201; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c76/scC/s76.204/2">
<num value="2">(2)</num>
<content>the amount paid in postage for the notice to the owner required by Section 76.202.</content>
</paragraph>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t6/c76/scD">
<num value="D">SUBCHAPTER D.</num>
<heading>DELIVERY</heading>
<section identifier="/us/tx/pr/t6/c76/scD/s76.301">
<num value="76.301">Sec. 76.301.</num>
<heading>DELIVERY OF PROPERTY TO TREASURER</heading>
<subsection identifier="/us/tx/pr/t6/c76/scD/s76.301/a">
<num value="a">(a)</num>
<content>Each holder who on June 30 holds property that is subject to this chapter shall deliver the property to the treasurer of the holder on or before the following November 1 accompanied by the property report.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scD/s76.301/b">
<num value="b">(b)</num>
<content>If the property subject to delivery under Subsection (a) is stock or some other intangible ownership interest in a business association for which there is no evidence of ownership, the holder shall issue a duplicate certificate or other evidence of ownership to the treasurer of the holder at the time delivery is required under this section.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c76/scD/s76.302">
<num value="76.302">Sec. 76.302.</num>
<heading>VERIFICATION OF DELIVERED PROPERTY</heading>
<subsection identifier="/us/tx/pr/t6/c76/scD/s76.302/a">
<num value="a">(a)</num>
<chapeau>Property delivered under Section 76.301 must be accompanied by a verification under oath that:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c76/scD/s76.302/1">
<num value="1">(1)</num>
<content>the property delivered is a complete and correct remittance of all accounts subject to this chapter in the holder's possession;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c76/scD/s76.302/2">
<num value="2">(2)</num>
<content>the existence and location of the listed owners are unknown to the holder; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c76/scD/s76.302/3">
<num value="3">(3)</num>
<content>the listed owners have not asserted a claim or exercised an act of ownership with respect to the owner's reported property.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scD/s76.302/b">
<num value="b">(b)</num>
<content>The verification required by Subsection (a) shall be signed by the chief fiscal officer of the holder, as designated by the holder.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c76/scD/s76.303">
<num value="76.303">Sec. 76.303.</num>
<heading>LIST OF OWNERS</heading>
<subsection identifier="/us/tx/pr/t6/c76/scD/s76.303/a">
<num value="a">(a)</num>
<content>The treasurer of the holder shall compile and revise each year an alphabetical list of names and last known addresses of the owners listed in the reports and the amount credited to each account.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scD/s76.303/b">
<num value="b">(b)</num>
<content>The treasurer of the holder shall make the list available for public inspection during all reasonable business hours.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c76/scD/s76.304">
<num value="76.304">Sec. 76.304.</num>
<heading>PERIOD OF LIMITATION NOT A BAR</heading>
<content>The expiration of any period specified by statute or court order, during which an action or proceeding may be initiated or entered to obtain payment of a claim for money, does not prevent the money from being presumed abandoned property and does not affect any duty to file a report required by this chapter or to deliver abandoned property to the treasurer of the holder.</content>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t6/c76/scE">
<num value="E">SUBCHAPTER E.</num>
<heading>DISPOSITION OF DELIVERED PROPERTY</heading>
<section identifier="/us/tx/pr/t6/c76/scE/s76.401">
<num value="76.401">Sec. 76.401.</num>
<heading>SALE OF PROPERTY</heading>
<subsection identifier="/us/tx/pr/t6/c76/scE/s76.401/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (c), the treasurer of the holder shall sell at public sale all personal property, other than money and marketable securities, delivered to the treasurer of the holder in accordance with Section 76.301. The treasurer of the holder shall conduct the sale in the holder's jurisdiction.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scE/s76.401/b">
<num value="b">(b)</num>
<content>The treasurer of the holder shall sell the property to the highest bidder. If the treasurer of the holder determines that the highest bid is insufficient, the treasurer of the holder may decline that bid and offer the property for public or private sale.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scE/s76.401/c">
<num value="c">(c)</num>
<content>The treasurer of the holder is not required to offer property for sale if the property belongs to a person with an address outside this state or the treasurer of the holder determines that the probable cost of the sale of the property exceeds its value.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scE/s76.401/d">
<num value="d">(d)</num>
<content>If after investigation the treasurer of the holder determines that property delivered has insubstantial commercial value, the treasurer of the holder may destroy or otherwise dispose of the property at any time.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scE/s76.401/e">
<num value="e">(e)</num>
<content>A person may not maintain any action or proceeding against the state, an officer of the state, or the holder of property because of an action taken by the treasurer of the holder under this section.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c76/scE/s76.402">
<num value="76.402">Sec. 76.402.</num>
<heading>NOTICE OF SALE</heading>
<content>Before the 21st day before the day on which a public sale is held under Section 76.401, the treasurer of the holder shall publish notice of the sale in a newspaper of general circulation in the county where the sale is to be held.</content>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c76/scE/s76.403">
<num value="76.403">Sec. 76.403.</num>
<heading>PURCHASER'S TITLE</heading>
<subsection identifier="/us/tx/pr/t6/c76/scE/s76.403/a">
<num value="a">(a)</num>
<content>At a sale, public or private, of property that is held under this subchapter, the purchaser receives title to the purchased property free from all claims of the prior owner and prior holder of the property and all persons claiming through or under the owner or holder.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scE/s76.403/b">
<num value="b">(b)</num>
<content>The treasurer of the holder shall execute all documents necessary to complete the transfer of title.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t6/c76/scF">
<num value="F">SUBCHAPTER F.</num>
<heading>CLAIM FOR DELIVERED PROPERTY</heading>
<section identifier="/us/tx/pr/t6/c76/scF/s76.501">
<num value="76.501">Sec. 76.501.</num>
<heading>FILING OF CLAIM</heading>
<subsection identifier="/us/tx/pr/t6/c76/scF/s76.501/a">
<num value="a">(a)</num>
<content>A claim for property delivered to the treasurer of the holder under this chapter must be filed with the treasurer of the holder.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scF/s76.501/b">
<num value="b">(b)</num>
<content>All claims to which this section applies must be filed in accordance with procedures and on forms prescribed by the treasurer of the holder.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c76/scF/s76.502">
<num value="76.502">Sec. 76.502.</num>
<heading>CONSIDERATION OF CLAIM</heading>
<content>The treasurer of the holder shall consider the validity of each claim filed under this subchapter.</content>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c76/scF/s76.503">
<num value="76.503">Sec. 76.503.</num>
<heading>HEARING</heading>
<subsection identifier="/us/tx/pr/t6/c76/scF/s76.503/a">
<num value="a">(a)</num>
<content>The treasurer of the holder may hold a hearing and receive evidence concerning a claim filed under this subchapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scF/s76.503/b">
<num value="b">(b)</num>
<content>If the treasurer of the holder considers that a hearing is necessary to determine the validity of a claim, the treasurer of the holder shall sign the statement of the findings and the decision on the claim. The statement shall report the substance of the evidence heard and the reasons for the decision. The statement is a public record.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scF/s76.503/c">
<num value="c">(c)</num>
<content>If the treasurer of the holder determines that a claim is valid, the treasurer of the holder shall approve and sign the claim.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c76/scF/s76.504">
<num value="76.504">Sec. 76.504.</num>
<heading>PAYMENT OF CLAIM</heading>
<subsection identifier="/us/tx/pr/t6/c76/scF/s76.504/a">
<num value="a">(a)</num>
<content>If a claim has been approved under this subchapter, the treasurer of the holder shall pay the claim.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scF/s76.504/b">
<num value="b">(b)</num>
<content>If a claim is for personal property other than money and has been approved under this subchapter, the treasurer of the holder promptly shall deliver the property to the claimant unless the treasurer of the holder has sold the property. If the property has been sold under Section 76.401, the treasurer of the holder shall pay to the claimant the proceeds from the sale.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scF/s76.504/c">
<num value="c">(c)</num>
<content>Costs of publication and postage shall be deducted from the amounts paid under this section, but deductions for any costs of administration or service charges may not be made.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c76/scF/s76.505">
<num value="76.505">Sec. 76.505.</num>
<heading>APPEAL</heading>
<subsection identifier="/us/tx/pr/t6/c76/scF/s76.505/a">
<num value="a">(a)</num>
<content>A person aggrieved by the decision on a claim filed under this subchapter may appeal the decision before the 61st day after the date the decision was rendered.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scF/s76.505/b">
<num value="b">(b)</num>
<content>If a claim has not been decided before the 91st day after the date the claim was filed, the claimant may appeal within the 60-day period beginning on the 91st day after the date of filing.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scF/s76.505/c">
<num value="c">(c)</num>
<content>An appeal under this section must be made by filing suit against the holder in a district court in the county in which the claimed property is located. The holder's immunity from suit without consent is waived with respect to a suit under this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scF/s76.505/d">
<num value="d">(d)</num>
<content>A court shall try an action filed under this section de novo and shall apply the rules of practice of the court.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c76/scF/s76.506">
<num value="76.506">Sec. 76.506.</num>
<heading>FEE FOR RECOVERY</heading>
<content>A person who informs a potential claimant that the claimant may be entitled to claim property that is reportable to the treasurer of the holder under this chapter, that has been reported to the treasurer of the holder, or that is in the possession of the treasurer of the holder may not contract for or receive from the claimant for services an amount that exceeds 10 percent of the value of the property recovered. If the property involved is mineral proceeds, the amount for services may not include a portion of the underlying minerals or any production payment, overriding royalty, or similar payment.</content>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c76/scF/s76.507">
<num value="76.507">Sec. 76.507.</num>
<heading>CLAIM OF ANOTHER STATE TO RECOVER PROPERTY; PROCEDURE</heading>
<subsection identifier="/us/tx/pr/t6/c76/scF/s76.507/a">
<num value="a">(a)</num>
<chapeau>At any time after property has been paid or delivered to the treasurer of the holder under this chapter, another state may recover the property if:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c76/scF/s76.507/1">
<num value="1">(1)</num>
<content>the property was subjected to custody by the holder because the records of the holder did not reflect the last known address of the apparent owner when the property was presumed abandoned under this chapter, and the other state establishes that the last known address of the apparent owner or other person entitled to the property was in that state and under the laws of that state the property escheated to or was subject to a claim of abandonment by that state;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c76/scF/s76.507/2">
<num value="2">(2)</num>
<content>the last known address of the apparent owner or other person entitled to the property, as reflected by the records of the holder, is in the other state and under the laws of that state the property has escheated to or become subject to a claim of abandonment by that state; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c76/scF/s76.507/3">
<num value="3">(3)</num>
<content>the records of the holder were erroneous in that the records did not accurately reflect the actual owner of the property and the last known address of the actual owner is in the other state and under the laws of that state the property escheated to or was subject to a claim of abandonment by that state.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scF/s76.507/b">
<num value="b">(b)</num>
<content>The claim of another state to recover escheated or abandoned property must be presented in a form prescribed by the treasurer of the holder, who shall decide the claim within 90 days after the date it is presented. The treasurer of the holder shall allow the claim if the treasurer of the holder determines that the other state is entitled to the abandoned property under Subsection (a).</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t6/c76/scG">
<num value="G">SUBCHAPTER G.</num>
<heading>UNCLAIMED MONEY FUND</heading>
<section identifier="/us/tx/pr/t6/c76/scG/s76.601">
<num value="76.601">Sec. 76.601.</num>
<heading>FUND</heading>
<subsection identifier="/us/tx/pr/t6/c76/scG/s76.601/a">
<num value="a">(a)</num>
<content>The treasurer of the holder shall maintain a fund known as the unclaimed money fund.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scG/s76.601/b">
<num value="b">(b)</num>
<chapeau>The treasurer of the holder shall deposit to the credit of the fund:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c76/scG/s76.601/1">
<num value="1">(1)</num>
<content>all funds, including marketable securities, delivered to the treasurer of the holder under this chapter or any other statute requiring the delivery of unclaimed property to the treasurer of the holder;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c76/scG/s76.601/2">
<num value="2">(2)</num>
<content>all proceeds from the sale of any property, including marketable securities, under this chapter; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c76/scG/s76.601/3">
<num value="3">(3)</num>
<content>any income derived from investments of the fund.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scG/s76.601/c">
<num value="c">(c)</num>
<content>The treasurer of the holder shall keep a separate record and accounting for delivered unclaimed property, other than money, before its sale.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scG/s76.601/d">
<num value="d">(d)</num>
<content>The treasurer of the holder shall from time to time invest the amount in the unclaimed money fund in investments approved by law for the investment of funds by the holder.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scG/s76.601/e">
<num value="e">(e)</num>
<content>The treasurer of the holder may from time to time sell securities in the fund, including stocks, bonds, and mutual funds, and use the proceeds to buy, exchange, invest, or reinvest in marketable securities. When making the investments, the treasurer of the holder shall exercise the judgment and care of a prudent person.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scG/s76.601/f">
<num value="f">(f)</num>
<content>The treasurer of the holder shall keep a separate record and accounting for securities delivered, sold, purchased, or exchanged and the proceeds and earnings from the securities.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c76/scG/s76.602">
<num value="76.602">Sec. 76.602.</num>
<heading>USE OF FUND</heading>
<subsection identifier="/us/tx/pr/t6/c76/scG/s76.602/a">
<num value="a">(a)</num>
<content>The treasurer of the holder shall use the unclaimed money fund to pay the claims of persons establishing ownership of property in the possession of the treasurer of the holder under this chapter or under any other unclaimed property or escheat statute.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scG/s76.602/b">
<num value="b">(b)</num>
<content>Each fiscal year after deducting funds sufficient to pay anticipated expenses and claims of the unclaimed money fund, the treasurer of the holder shall transfer the remainder to the general fund of the holder.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scG/s76.602/c">
<num value="c">(c)</num>
<content>The treasurer of the holder and the attorney for the holder may use the unclaimed money fund generally for the enforcement and administration of this chapter, including the expenses of forms, notices, examinations, travel, court costs, supplies, equipment, and employment of necessary personnel and other necessary expenses.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c76/scG/s76.603">
<num value="76.603">Sec. 76.603.</num>
<heading>AUDIT; BUDGET</heading>
<chapeau>The unclaimed money fund is subject to:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c76/scG/s76.603/1">
<num value="1">(1)</num>
<content>audit by the auditor of the holder or an independent auditor if the holder does not have an auditor; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c76/scG/s76.603/2">
<num value="2">(2)</num>
<content>budgetary procedures adopted by the governing body of the holder.</content>
</paragraph>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t6/c76/scH">
<num value="H">SUBCHAPTER H.</num>
<heading>ENFORCEMENT</heading>
<section identifier="/us/tx/pr/t6/c76/scH/s76.701">
<num value="76.701">Sec. 76.701.</num>
<heading>RULES</heading>
<content>The treasurer of the holder may adopt rules necessary to carry out this chapter.</content>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c76/scH/s76.702">
<num value="76.702">Sec. 76.702.</num>
<heading>EXAMINATION OF RECORDS</heading>
<subsection identifier="/us/tx/pr/t6/c76/scH/s76.702/a">
<num value="a">(a)</num>
<content>To enforce this chapter and to determine whether reports have been made as required by this chapter, the treasurer of the holder, at any reasonable time, may examine the books and records of the holder.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scH/s76.702/b">
<num value="b">(b)</num>
<chapeau>The treasurer of the holder, attorney for the holder, or an agent of either person may not make public any information obtained by an examination made under this section and may not disclose that information except:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c76/scH/s76.702/1">
<num value="1">(1)</num>
<content>in the course of a judicial proceeding authorized by this chapter in which the holder is a party; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c76/scH/s76.702/2">
<num value="2">(2)</num>
<content>under an agreement with another state allowing joint audits or the exchange of information obtained under this section.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c76/scH/s76.703">
<num value="76.703">Sec. 76.703.</num>
<heading>ADDITIONAL PERSONNEL</heading>
<subsection identifier="/us/tx/pr/t6/c76/scH/s76.703/a">
<num value="a">(a)</num>
<content>The treasurer of the holder and the attorney for the holder may employ, in the office of either person, additional personnel necessary to enforce this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scH/s76.703/b">
<num value="b">(b)</num>
<content>The salary rate of additional personnel may not exceed the rate paid to other employees of the holder for similar services.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scH/s76.703/c">
<num value="c">(c)</num>
<content>The salaries of additional personnel shall be paid in accordance with Section 76.602.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scH/s76.703/d">
<num value="d">(d)</num>
<content>The provisions of this section are subject to the budgetary procedures adopted by the governing body of the holder.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c76/scH/s76.704">
<num value="76.704">Sec. 76.704.</num>
<heading>OFFENSE</heading>
<subsection identifier="/us/tx/pr/t6/c76/scH/s76.704/a">
<num value="a">(a)</num>
<chapeau>A person commits an offense if the person:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c76/scH/s76.704/1">
<num value="1">(1)</num>
<content>wilfully fails to file a report required by this chapter;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c76/scH/s76.704/2">
<num value="2">(2)</num>
<content>refuses to permit examination of records in accordance with this chapter;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c76/scH/s76.704/3">
<num value="3">(3)</num>
<content>makes a deduction from or a service charge against a dormant account or dormant deposit of funds; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c76/scH/s76.704/4">
<num value="4">(4)</num>
<content>violates any other provision of this chapter.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scH/s76.704/b">
<num value="b">(b)</num>
<chapeau>An offense under this section is punishable by:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c76/scH/s76.704/1">
<num value="1">(1)</num>
<content>a fine of not less than $500 or more than $1,000;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c76/scH/s76.704/2">
<num value="2">(2)</num>
<content>confinement in jail for a term not to exceed six months; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c76/scH/s76.704/3">
<num value="3">(3)</num>
<content>both the fine and confinement.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c76/scH/s76.704/c">
<num value="c">(c)</num>
<content>In addition to a criminal penalty, a person who commits an offense under Subsection (a) is subject to a civil penalty not to exceed $100 for each day of the violation. The attorney for the holder shall collect the civil penalty by bringing suit in a district court of the county in which the holder is located.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997.</sourceCredit>
</section>
</subchapter>
</chapter>
<chapter identifier="/us/tx/pr/t6/c77">
<num value="77">CHAPTER 77.</num>
<heading>REPORT, DELIVERY, AND CLAIMS PROCESS FOR UNCLAIMED RESTITUTION PAYMENTS</heading>
<subchapter identifier="/us/tx/pr/t6/c77/scA">
<num value="A">SUBCHAPTER A.</num>
<heading>APPLICABILITY</heading>
<section identifier="/us/tx/pr/t6/c77/scA/s77.001">
<num value="77.001">Sec. 77.001.</num>
<heading>APPLICABILITY</heading>
<content>This chapter applies to unclaimed restitution payments that are presumed abandoned under Section 76.013 or 508.322, Government Code.</content>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t6/c77/scB">
<num value="B">SUBCHAPTER B.</num>
<heading>PROPERTY REPORT</heading>
<section identifier="/us/tx/pr/t6/c77/scB/s77.051">
<num value="77.051">Sec. 77.051.</num>
<heading>PROPERTY REPORT</heading>
<subsection identifier="/us/tx/pr/t6/c77/scB/s77.051/a">
<num value="a">(a)</num>
<content>Notwithstanding the confidentiality provisions of Subchapters C, D, E, and F, Chapter 58, Code of Criminal Procedure, each holder who on March 1 holds an unclaimed restitution payment that is presumed abandoned under Section 76.013 or 508.322, Government Code, shall file a property report with the comptroller on or before the following July 1. The comptroller may prescribe the form to be used for the report required by this section and may require the report to be filed electronically.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c77/scB/s77.051/b">
<num value="b">(b)</num>
<chapeau>The property report must include, if known by the holder:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c77/scB/s77.051/1">
<num value="1">(1)</num>
<content>the name, social security number, driver's license or state identification number, e-mail address, and last known address of the victim who, from the records of the holder, is entitled to the unclaimed restitution payment;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c77/scB/s77.051/2">
<num value="2">(2)</num>
<content>the cause number of the case in which a judge ordered a defendant to pay restitution to the victim, the amount of restitution ordered, and the balance owed to the victim;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c77/scB/s77.051/3">
<num value="3">(3)</num>
<content>the date of the last transaction with the victim concerning the restitution payments; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c77/scB/s77.051/4">
<num value="4">(4)</num>
<content>other information that the comptroller requires to be disclosed as necessary for the administration of this chapter.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c77/scB/s77.051/c">
<num value="c">(c)</num>
<content>A holder who is required by Subsection (a) to file a report in any year shall file a report each successive year thereafter. If a person required to file a report under this subsection is not holding any restitution payments that are presumed abandoned under Section 76.013 or 508.322, Government Code, the person shall certify that the person is not holding any restitution payments that are presumed abandoned under those sections.</content>
</subsection>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 469 (H.B. 4173), Sec. 2.61, eff. January 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c77/scB/s77.052">
<num value="77.052">Sec. 77.052.</num>
<heading>NOTICE BY HOLDER REQUIRED</heading>
<chapeau>A holder who on March 1 holds an unclaimed restitution payment that is presumed abandoned under Section 76.013 or 508.322, Government Code, shall, on or before the following May 1, mail to the last known address of the victim entitled to the unclaimed restitution payment written notice stating that:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c77/scB/s77.052/1">
<num value="1">(1)</num>
<content>the holder is holding the restitution payment to which the victim is entitled; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c77/scB/s77.052/2">
<num value="2">(2)</num>
<content>the holder may be required to deliver the restitution payment to the comptroller on or before July 1 if the victim does not claim the restitution payment.</content>
</paragraph>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c77/scB/s77.053">
<num value="77.053">Sec. 77.053.</num>
<heading>SIGNED STATEMENT</heading>
<subsection identifier="/us/tx/pr/t6/c77/scB/s77.053/a">
<num value="a">(a)</num>
<content>The person preparing a property report required by this chapter shall provide with each copy of the report a statement signed by the holder's chief fiscal officer, as designated by the holder. The signature required by this section may be in an electronic or other form prescribed by the comptroller and shall have the same effect as an original signature.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c77/scB/s77.053/b">
<num value="b">(b)</num>
<content>The statement must include the following sentence:</content>
<continuation>"This report contains a full and complete list of all restitution payments held by the undersigned that, from the knowledge and records of the undersigned, are abandoned under the laws of the State of Texas."</continuation>
</subsection>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c77/scB/s77.054">
<num value="77.054">Sec. 77.054.</num>
<heading>CONFIDENTIALITY OF PROPERTY REPORT</heading>
<subsection identifier="/us/tx/pr/t6/c77/scB/s77.054/a">
<num value="a">(a)</num>
<content>The property report filed with the comptroller under Section 77.051 is confidential and is not subject to disclosure under Chapter 552, Government Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c77/scB/s77.054/b">
<num value="b">(b)</num>
<content>The social security number, driver's license or state identification number, and address of a victim are confidential and are not subject to disclosure under Chapter 552, Government Code. For the purposes of this subsection, the victim's address includes information that identifies a victim's place of residence or post office box but does not include the city or county in which the victim resides.</content>
</subsection>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c77/scB/s77.055">
<num value="77.055">Sec. 77.055.</num>
<heading>EXCEPTION TO LIABILITY</heading>
<subsection identifier="/us/tx/pr/t6/c77/scB/s77.055/a">
<num value="a">(a)</num>
<content>It is an exception to the application of Section 552.352, Government Code, that the comptroller or an officer or employee of the comptroller's office published or disclosed information in reliance on the report filed with the comptroller under Section 77.051.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c77/scB/s77.055/b">
<num value="b">(b)</num>
<content>The comptroller or an officer or employee of the comptroller's office is immune from any civil liability for publishing or disclosing confidential information under this section if the comptroller, officer, or employee published or disclosed the information in reliance on the report filed with the comptroller under Section 77.051.</content>
</subsection>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t6/c77/scC">
<num value="C">SUBCHAPTER C.</num>
<heading>NOTICE BY COMPTROLLER</heading>
<section identifier="/us/tx/pr/t6/c77/scC/s77.101">
<num value="77.101">Sec. 77.101.</num>
<heading>NOTICE</heading>
<content>The comptroller may use one or more methods as necessary to provide the most efficient and effective notice to victims that the comptroller is holding unclaimed restitution payments that are subject to this chapter.</content>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c77/scC/s77.102">
<num value="77.102">Sec. 77.102.</num>
<heading>PUBLICATION</heading>
<content>Notwithstanding Section 77.054, the comptroller may publish on the Internet information regarding unclaimed restitution payments received by the comptroller, except that the comptroller may not publish information that identifies a person as a victim or information that identifies a victim's address. For the purposes of this subsection, the victim's address includes information that identifies a victim's place of residence or post office box but does not include the city or county in which the victim resides.</content>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t6/c77/scD">
<num value="D">SUBCHAPTER D.</num>
<heading>DELIVERY</heading>
<section identifier="/us/tx/pr/t6/c77/scD/s77.151">
<num value="77.151">Sec. 77.151.</num>
<heading>DELIVERY OF PROPERTY TO COMPTROLLER</heading>
<content>Each holder who on March 1 holds an unclaimed restitution payment that is presumed abandoned under Section 76.013 or 508.322, Government Code, shall deliver the property to the comptroller on or before the following July 1 accompanied by the report required to be filed under Section 77.051.</content>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c77/scD/s77.152">
<num value="77.152">Sec. 77.152.</num>
<heading>RESPONSIBILITY AFTER DELIVERY</heading>
<subsection identifier="/us/tx/pr/t6/c77/scD/s77.152/a">
<num value="a">(a)</num>
<content>If an unclaimed restitution payment that is presumed abandoned under Section 76.013 or 508.322, Government Code, is reported and delivered to the comptroller, the state shall assume custody of the payment and responsibility for its safekeeping.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c77/scD/s77.152/b">
<num value="b">(b)</num>
<content>A holder who delivers an unclaimed restitution payment to the comptroller in compliance with this chapter is relieved of all liability to the extent of the value of the payment delivered for any claim then existing, that may arise after delivery to the comptroller, or that may be made with respect to the payment.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c77/scD/s77.152/c">
<num value="c">(c)</num>
<content>If the holder delivers an unclaimed restitution payment to the comptroller in good faith and, after delivery, a person claims the property from the holder, the attorney general shall, on written notice of the claim, defend the holder against the claim, and the holder shall be indemnified against any liability on the claim.</content>
</subsection>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t6/c77/scE">
<num value="E">SUBCHAPTER E.</num>
<heading>CLAIM FOR DELIVERED PROPERTY</heading>
<section identifier="/us/tx/pr/t6/c77/scE/s77.201">
<num value="77.201">Sec. 77.201.</num>
<heading>CLAIM FILED WITH COMPTROLLER</heading>
<subsection identifier="/us/tx/pr/t6/c77/scE/s77.201/a">
<num value="a">(a)</num>
<content>The comptroller shall review the validity of each claim for an unclaimed restitution payment filed under this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c77/scE/s77.201/b">
<num value="b">(b)</num>
<content>If the comptroller determines a claim for an unclaimed restitution payment is valid, the comptroller shall approve the claim. If a claim is approved under this section, the comptroller shall pay the claim.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c77/scE/s77.201/c">
<num value="c">(c)</num>
<content>All claims to which this section applies must be filed in accordance with the procedures, contain the information, and be on forms prescribed by the comptroller.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c77/scE/s77.201/d">
<num value="d">(d)</num>
<chapeau>On receipt of a claim form and all necessary documentation as may be appropriate under the circumstances, the comptroller may approve the claim of:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c77/scE/s77.201/1">
<num value="1">(1)</num>
<content>the victim;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c77/scE/s77.201/2">
<num value="2">(2)</num>
<chapeau>if the victim died testate:</chapeau>
<subparagraph identifier="/us/tx/pr/t6/c77/scE/s77.201/A">
<num value="A">(A)</num>
<content>the appropriate legal beneficiaries of the victim as provided by the last will and testament of the victim that has been accepted into probate or filed as a muniment of title; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t6/c77/scE/s77.201/B">
<num value="B">(B)</num>
<content>the executor of the victim's last will and testament who holds current letters testamentary;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c77/scE/s77.201/3">
<num value="3">(3)</num>
<chapeau>if the victim died intestate or is deceased and presumed intestate:</chapeau>
<subparagraph identifier="/us/tx/pr/t6/c77/scE/s77.201/A">
<num value="A">(A)</num>
<content>the legal heirs of the victim as provided by Chapter 201, Estates Code; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t6/c77/scE/s77.201/B">
<num value="B">(B)</num>
<content>the court-appointed administrator of the victim's estate, on behalf of the legal heirs of the victim;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c77/scE/s77.201/4">
<num value="4">(4)</num>
<content>the legal heirs of the victim as established by an affidavit of heirship order signed by a judge of the county probate court or by a county judge;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c77/scE/s77.201/5">
<num value="5">(5)</num>
<content>if the victim is a minor child or an adult who has been adjudged incompetent by a court of law, the parent or legal guardian of the child or adult;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c77/scE/s77.201/6">
<num value="6">(6)</num>
<chapeau>if the victim is a trust:</chapeau>
<subparagraph identifier="/us/tx/pr/t6/c77/scE/s77.201/A">
<num value="A">(A)</num>
<content>the trustee, on behalf of the trust; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t6/c77/scE/s77.201/B">
<num value="B">(B)</num>
<content>the beneficiaries of the trust, if the trust is dissolved;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c77/scE/s77.201/7">
<num value="7">(7)</num>
<chapeau>if the victim is a corporation:</chapeau>
<subparagraph identifier="/us/tx/pr/t6/c77/scE/s77.201/A">
<num value="A">(A)</num>
<content>the president or chair of the board of directors of the corporation, on behalf of the corporation;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t6/c77/scE/s77.201/B">
<num value="B">(B)</num>
<content>any person who has been delegated legal authority to act on behalf of the corporation by the president or board of directors of the corporation; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t6/c77/scE/s77.201/C">
<num value="C">(C)</num>
<content>a receiver appointed for the corporation;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c77/scE/s77.201/8">
<num value="8">(8)</num>
<chapeau>if the victim is a corporation that has been dissolved, liquidated, or otherwise terminated:</chapeau>
<subparagraph identifier="/us/tx/pr/t6/c77/scE/s77.201/A">
<num value="A">(A)</num>
<content>the surviving shareholders of the corporation in proportion to their ownership of the corporation at the time of dissolution, liquidation, or termination;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t6/c77/scE/s77.201/B">
<num value="B">(B)</num>
<content>the corporation's bankruptcy trustee; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t6/c77/scE/s77.201/C">
<num value="C">(C)</num>
<content>a receiver appointed for the corporation;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c77/scE/s77.201/9">
<num value="9">(9)</num>
<content>if the victim is a state agency, the comptroller; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c77/scE/s77.201/10">
<num value="10">(10)</num>
<content>any other person that is entitled to receive the unclaimed restitution payment under other law or comptroller policy.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c77/scE/s77.201/e">
<num value="e">(e)</num>
<chapeau>Except as provided by Subsections (f) and (g), the comptroller may not approve the claim of or pay a claim to the following persons:</chapeau>
<paragraph identifier="/us/tx/pr/t6/c77/scE/s77.201/1">
<num value="1">(1)</num>
<content>a creditor, a judgment creditor, a lienholder, or an assignee of the victim or of any other person entitled to receive an unclaimed restitution payment under this section;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c77/scE/s77.201/2">
<num value="2">(2)</num>
<content>a receiver, if the receiver is appointed at the request of a person the comptroller may not pay under Subdivision (1);</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c77/scE/s77.201/3">
<num value="3">(3)</num>
<content>a person attempting to make a claim on behalf of a trust or corporation that has previously been dissolved or terminated, if it appears the trust or corporation was revived for the purpose of making a claim under this section and the person submitting the claim was not an authorized representative of the corporation or trust at the time of the dissolution or termination; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6/c77/scE/s77.201/4">
<num value="4">(4)</num>
<content>a person holding a power of attorney, if the person holding a power of attorney is a person the comptroller may not pay under this subsection.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6/c77/scE/s77.201/f">
<num value="f">(f)</num>
<content>The comptroller may approve a claim for child support arrearages owed by the victim and reflected in a child support lien notice that complies with Section 157.313, Family Code. A claim under this subsection may be submitted by the lienholder.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c77/scE/s77.201/g">
<num value="g">(g)</num>
<content>The comptroller may approve a claim for debts owed by the victim to the state or any state agency. A claim under this subsection may be submitted by the attorney general or the comptroller on behalf of the state or state agency.</content>
</subsection>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c77/scE/s77.202">
<num value="77.202">Sec. 77.202.</num>
<heading>CLAIMS NOT ASSIGNABLE</heading>
<content>Notwithstanding Section 9.406(f), Business & Commerce Code, an interest in a claim under this chapter may not be assigned.</content>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c77/scE/s77.203">
<num value="77.203">Sec. 77.203.</num>
<heading>CLAIM FILED WITH HOLDER</heading>
<subsection identifier="/us/tx/pr/t6/c77/scE/s77.203/a">
<num value="a">(a)</num>
<content>If a claim for an unclaimed restitution payment is filed with a holder under this section and the holder determines in good faith that the claim is valid, the holder may pay the amount of the claim.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c77/scE/s77.203/b">
<num value="b">(b)</num>
<content>The comptroller may reimburse the holder for a valid claim paid under this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c77/scE/s77.203/c">
<num value="c">(c)</num>
<content>The request from a holder for reimbursement must be filed in accordance with procedures and on forms prescribed by the comptroller and may not exceed the amount previously reported and delivered by the holder to the comptroller.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c77/scE/s77.203/d">
<num value="d">(d)</num>
<content>The comptroller may not reimburse a holder for a claim paid to a person the comptroller is not permitted to pay under Section 77.201(e).</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c77/scE/s77.203/e">
<num value="e">(e)</num>
<content>The liability of the comptroller to reimburse a holder under this section is limited to the extent of the property delivered under this chapter and remaining in the possession of the comptroller at the time a holder requests reimbursement.</content>
</subsection>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c77/scE/s77.204">
<num value="77.204">Sec. 77.204.</num>
<heading>APPEAL</heading>
<subsection identifier="/us/tx/pr/t6/c77/scE/s77.204/a">
<num value="a">(a)</num>
<content>A person aggrieved by the decision of a claim filed under this chapter may appeal the decision before the 61st day after the day on which it was rendered.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c77/scE/s77.204/b">
<num value="b">(b)</num>
<content>If a claim has not been decided before the 91st day after the day on which it was filed, the claimant may appeal within the 60-day period beginning on the 91st day after the day of filing.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c77/scE/s77.204/c">
<num value="c">(c)</num>
<content>An appeal under this section must be made by filing suit against the state in a district court in Travis County.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c77/scE/s77.204/d">
<num value="d">(d)</num>
<content>A court shall try an action filed under this section de novo and shall apply the rules of practice of the court.</content>
</subsection>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c77/scE/s77.205">
<num value="77.205">Sec. 77.205.</num>
<heading>LIMITATION OF LIABILITY</heading>
<content>The liability of the state is limited to the extent of the property delivered under this chapter and remaining in the possession of the comptroller at the time a suit is filed.</content>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c77/scE/s77.206">
<num value="77.206">Sec. 77.206.</num>
<heading>FEE FOR RECOVERY</heading>
<subsection identifier="/us/tx/pr/t6/c77/scE/s77.206/a">
<num value="a">(a)</num>
<content>A person who informs a potential claimant that the claimant may be entitled to claim property under this chapter may not contract for or receive from the claimant for services an amount that exceeds 10 percent of the value of the property recovered.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c77/scE/s77.206/b">
<num value="b">(b)</num>
<content>A person who receives a fee for recovery from a claimant that exceeds 10 percent of the value of the property recovered is liable to the claimant for the amount of the fee plus attorney's fees and expenses.</content>
</subsection>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t6/c77/scF">
<num value="F">SUBCHAPTER F.</num>
<heading>UNCLAIMED PAYMENTS</heading>
<section identifier="/us/tx/pr/t6/c77/scF/s77.251">
<num value="77.251">Sec. 77.251.</num>
<heading>UNCLAIMED RESTITUTION PAYMENTS</heading>
<subsection identifier="/us/tx/pr/t6/c77/scF/s77.251/a">
<num value="a">(a)</num>
<content>The comptroller shall maintain a record that documents unclaimed restitution payments received under this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c77/scF/s77.251/b">
<num value="b">(b)</num>
<content>The comptroller shall deposit all unclaimed restitution payments to the credit of the compensation to victims of crime auxiliary fund in the state treasury.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c77/scF/s77.251/c">
<num value="c">(c)</num>
<content>Income or interest derived from unclaimed restitution payments deposited in the fund shall remain in the compensation to victims of crime auxiliary fund.</content>
</subsection>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c77/scF/s77.252">
<num value="77.252">Sec. 77.252.</num>
<heading>USE OF MONEY</heading>
<subsection identifier="/us/tx/pr/t6/c77/scF/s77.252/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (b) and Chapter 56B, Code of Criminal Procedure, money in the compensation to victims of crime auxiliary fund may only be used to pay claims as provided by this chapter and is not available for any other purpose. Section 403.095, Government Code, does not apply to the fund.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c77/scF/s77.252/b">
<num value="b">(b)</num>
<content>The legislature may appropriate money in the compensation to victims of crime auxiliary fund to cover costs incurred by the comptroller in administering this chapter.</content>
</subsection>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 469 (H.B. 4173), Sec. 2.62, eff. January 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c77/scF/s77.253">
<num value="77.253">Sec. 77.253.</num>
<heading>EXCESS CLAIMS</heading>
<content>The comptroller may pay a claim under this chapter that is more than the money available in the compensation to victims of crime auxiliary fund using funds appropriated by the legislature for paying claims under this title.</content>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t6/c77/scG">
<num value="G">SUBCHAPTER G.</num>
<heading>ENFORCEMENT</heading>
<section identifier="/us/tx/pr/t6/c77/scG/s77.301">
<num value="77.301">Sec. 77.301.</num>
<heading>RULES</heading>
<content>The comptroller may adopt rules necessary to carry out this chapter.</content>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c77/scG/s77.302">
<num value="77.302">Sec. 77.302.</num>
<heading>EXAMINATION OF RECORDS</heading>
<subsection identifier="/us/tx/pr/t6/c77/scG/s77.302/a">
<num value="a">(a)</num>
<content>To enforce this chapter and to determine whether reports have been made as required by this chapter, the comptroller, the attorney general, or an authorized agent of either, may, at any reasonable time and place, examine the books and records of any holder.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c77/scG/s77.302/b">
<num value="b">(b)</num>
<content>The comptroller, the attorney general, or an agent of either may not make public any information obtained by an examination made under this section and may not disclose that information except in the course of a judicial proceeding, authorized by this chapter, in which the state is a party or under an agreement with another state allowing joint audits or the exchange of information obtained under this section.</content>
</subsection>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c77/scG/s77.303">
<num value="77.303">Sec. 77.303.</num>
<heading>AUTHORITY TO TAKE TESTIMONY AND ISSUE ADMINISTRATIVE SUBPOENAS</heading>
<subsection identifier="/us/tx/pr/t6/c77/scG/s77.303/a">
<num value="a">(a)</num>
<content>In addition to the authority to examine granted by Section 77.302, to enforce this chapter and to determine whether reports have been made as required by this chapter, the comptroller, or the comptroller's designee, may take testimony, administer oaths, and issue subpoenas to compel any person, at a time and place reasonable under the circumstances, to appear and give testimony, and to produce relevant books, records, documents, or other data, in whatever form, for audit, inspection, and copying.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c77/scG/s77.303/b">
<num value="b">(b)</num>
<content>A person authorized to serve process under the Texas Rules of Civil Procedure may serve a subpoena issued under Subsection (a). The person shall serve the subpoena in accordance with the Texas Rules of Civil Procedure.</content>
</subsection>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c77/scG/s77.304">
<num value="77.304">Sec. 77.304.</num>
<heading>ENFORCEMENT OF SUBPOENAS</heading>
<subsection identifier="/us/tx/pr/t6/c77/scG/s77.304/a">
<num value="a">(a)</num>
<content>If the person to whom a subpoena is directed under Section 77.303 fails to comply with the subpoena, or fails to file a motion to quash or otherwise demand a pre-compliance review of the subpoena, within the return date specified in the subpoena, the attorney general shall, on the request of the comptroller, bring suit to enforce the subpoena. The suit may be brought in a state district court where service may be obtained on the person refusing to testify or produce records.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6/c77/scG/s77.304/b">
<num value="b">(b)</num>
<content>A court that determines that the subpoena was issued in good faith shall order compliance with the subpoena. The court may apply penalties for civil and criminal contempt otherwise available at law where a person refuses to comply with the court's order.</content>
</subsection>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c77/scG/s77.305">
<num value="77.305">Sec. 77.305.</num>
<heading>VENUE FOR PRE-COMPLIANCE REVIEW</heading>
<content>A person receiving a subpoena under this chapter may, before the return date specified in the subpoena, petition a district court in Travis County for an order to modify or quash the subpoena.</content>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c77/scG/s77.306">
<num value="77.306">Sec. 77.306.</num>
<heading>ASSISTANCE IN ENFORCEMENT</heading>
<content>If the comptroller or attorney general requests, any state agency, county clerk, district clerk, county attorney, or district attorney shall assist the comptroller or attorney general in enforcing this chapter.</content>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c77/scG/s77.307">
<num value="77.307">Sec. 77.307.</num>
<heading>PENALTY</heading>
<content>A penalty equal to five percent of the value of the unclaimed restitution payment due shall be imposed on a holder who fails to pay or deliver the payment within the time prescribed by this chapter. If a holder fails to pay or deliver an unclaimed restitution payment before the 121st day after the date the payment is due, an additional penalty equal to five percent of the value of the payment due shall be imposed.</content>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6/c77/scG/s77.308">
<num value="77.308">Sec. 77.308.</num>
<heading>WAIVER OR ABATEMENT OF PENALTY</heading>
<content>The comptroller may waive any penalty or interest imposed under this chapter.</content>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017.</sourceCredit>
</section>
</subchapter>
</chapter>
<num value="6A">TITLE 6A.</num>
<heading>PROPERTY LOANED TO MUSEUMS</heading>
<chapter identifier="/us/tx/pr/t6A/c80">
<num value="80">CHAPTER 80.</num>
<heading>OWNERSHIP, CONSERVATION, AND DISPOSITION OF PROPERTY LOANED TO MUSEUM</heading>
<section identifier="/us/tx/pr/t6A/c80/s80.001">
<num value="80.001">Sec. 80.001.</num>
<heading>PURPOSES</heading>
<content>The purposes of this chapter are to establish the ownership of loaned cultural property that has been abandoned by the lender, to establish uniform procedures for the termination of loans of property to museums, to allow museums to conserve loaned property under certain conditions, and to limit actions to recover loaned property.</content>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 1076, Sec. 1, eff. Sept. 1, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6A/c80/s80.002">
<num value="80.002">Sec. 80.002.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t6A/c80/s80.002/1">
<num value="1">(1)</num>
<content>"Museum" means an institution located in this state and operated by a nonprofit corporation or public agency, primarily educational, scientific, or aesthetic in purpose, that owns, borrows, or cares for and studies, archives, or exhibits property.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6A/c80/s80.002/2">
<num value="2">(2)</num>
<content>"Lender" means a person whose name appears on the records of a museum as the person entitled to property held or owed by the museum.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6A/c80/s80.002/3">
<num value="3">(3)</num>
<content>"Loan," "loaned," and "on loan" include all deposits of property with a museum that are not accompanied by a transfer of title to the property.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6A/c80/s80.002/4">
<num value="4">(4)</num>
<content>"Property" or "cultural property" means all tangible objects, animate and inanimate, under a museum's care that have intrinsic, scientific, historic, artistic, or cultural value.</content>
</paragraph>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 1076, Sec. 1, eff. Sept. 1, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6A/c80/s80.003">
<num value="80.003">Sec. 80.003.</num>
<heading>NOTICE TO LENDER</heading>
<subsection identifier="/us/tx/pr/t6A/c80/s80.003/a">
<num value="a">(a)</num>
<content>If a museum is required to give a lender notice under this chapter, the museum is considered to have given the lender notice if the museum mails the notice to the lender at the lender's address and proof of receipt is received by the museum within 30 days after the date the notice is mailed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6A/c80/s80.003/b">
<num value="b">(b)</num>
<content>If the museum does not have an address for the lender or if proof of receipt is not received by the museum, the notice is considered to be given if the museum publishes notice at least once a week for two consecutive weeks in a newspaper of general circulation in both the county in which the museum is located and the county of the lender's address, if known.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6A/c80/s80.003/c">
<num value="c">(c)</num>
<content>In addition to any other information prescribed by this chapter, notices given under this chapter must contain, if known, the lender's name, the lender's address, the date of the loan, and the name, address, and telephone number of the appropriate office or official to be contacted at the museum for information regarding the loan.</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 1076, Sec. 1, eff. Sept. 1, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6A/c80/s80.004">
<num value="80.004">Sec. 80.004.</num>
<heading>ABANDONED PROPERTY; NOTICE; TITLE TO PROPERTY</heading>
<subsection identifier="/us/tx/pr/t6A/c80/s80.004/a">
<num value="a">(a)</num>
<content>Unless there is a written unexpired loan agreement to the contrary, any property on loan to a museum for 15 years or more and to which no person has made claim according to the records of the museum is considered abandoned and, notwithstanding Chapter 72, becomes the property of the museum if the museum has given the lender notice in accordance with Section 80.003.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6A/c80/s80.004/b">
<num value="b">(b)</num>
<content>If no valid claim has been made to the property within 65 days after the date of the last notice given under Section 80.003, title to the property vests in the museum free from all claims of the owner and all persons claiming through or under the owner.</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 1076, Sec. 1, eff. Sept. 1, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6A/c80/s80.005">
<num value="80.005">Sec. 80.005.</num>
<heading>INTENT TO TERMINATE LOAN; FORM; TRANSFORMATION OF SPECIFIED TERM TO INDEFINITE TERM</heading>
<subsection identifier="/us/tx/pr/t6A/c80/s80.005/a">
<num value="a">(a)</num>
<content>A museum may give the lender notice of the museum's intent to terminate a loan that was made for an indefinite term or for a term in excess of seven years. A notice of intent to terminate a loan given under this section must comply with Section 80.003 and must include a statement containing substantially the following information:</content>
</subsection>
<sourceCredit>The records of (name of museum)
indicate that you have property on loan to it. The museum wishes to terminate the loan. You must contact the museum, establish your ownership of the property, and make arrangements to collect the property. If you fail to do so within 65 days after the date of this notice, you will be deemed to have donated the property to the museum. See Chapter 80, Property Code.
(b) If, within 65 days after the date of the notice given under Subsection (a), the lender fails to contact the museum, establish ownership of the property, and make arrangements to collect the property, the property is considered to be donated to the museum.
(c) For the purposes of this chapter, a loan for a specified term becomes a loan for an indefinite term if the property remains in the custody of the museum when the specified term expires.
Added by Acts 1987, 70th Leg., ch. 1076, Sec. 1, eff. Sept. 1, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6A/c80/s80.006">
<num value="80.006">Sec. 80.006.</num>
<heading>CONSERVATION OR DISPOSAL OF LOANED PROPERTY; CONDITIONS; LIEN; LIABILITY OF MUSEUM</heading>
<subsection identifier="/us/tx/pr/t6A/c80/s80.006/a">
<num value="a">(a)</num>
<chapeau>Unless there is a written loan agreement to the contrary, a museum may apply conservation measures to or dispose of property on loan to the museum without a lender's permission if immediate action is required to protect the property on loan or to protect other property in the custody of the museum, or the property on loan has become a hazard to the health and safety of the public or of the museum's staff, and:</chapeau>
<paragraph identifier="/us/tx/pr/t6A/c80/s80.006/1">
<num value="1">(1)</num>
<content>the museum cannot reach the lender at the lender's last address of record so that the museum and the lender can promptly agree on a solution; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6A/c80/s80.006/2">
<num value="2">(2)</num>
<content>the lender will not agree to the protective measures the museum recommends, yet is unwilling or unable to terminate the loan and retrieve the property.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t6A/c80/s80.006/b">
<num value="b">(b)</num>
<chapeau>If a museum applies conservation measures to or disposes of property under Subsection (a), the museum:</chapeau>
<paragraph identifier="/us/tx/pr/t6A/c80/s80.006/1">
<num value="1">(1)</num>
<content>has a lien on the property and on the proceeds from any disposition of the property for the costs incurred by the museum; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t6A/c80/s80.006/2">
<num value="2">(2)</num>
<chapeau>is not liable for injury to or loss of the property if the museum:</chapeau>
<subparagraph identifier="/us/tx/pr/t6A/c80/s80.006/A">
<num value="A">(A)</num>
<content>had a reasonable belief at the time the action was taken that the action was necessary to protect the property on loan or other property in the custody of the museum, or that the property on loan constituted a hazard to the health and safety of the public or the museum's staff; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t6A/c80/s80.006/B">
<num value="B">(B)</num>
<content>exercised reasonable care in the choice and application of the conservation measures.</content>
</subparagraph>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 1076, Sec. 1, eff. Sept. 1, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6A/c80/s80.007">
<num value="80.007">Sec. 80.007.</num>
<heading>ACTION TO RECOVER PROPERTY; LIMITATIONS</heading>
<subsection identifier="/us/tx/pr/t6A/c80/s80.007/a">
<num value="a">(a)</num>
<content>The two-year limitation on actions to recover personal property prescribed by Section 16.003, Civil Practice and Remedies Code, runs from the date the museum gives the lender notice of its intent to terminate the loan under Section 80.005.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6A/c80/s80.007/b">
<num value="b">(b)</num>
<content>No action may be brought against a museum to recover property on loan to a museum for 15 years or more and to which no person has made claim if the museum has complied with Section 80.004.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6A/c80/s80.007/c">
<num value="c">(c)</num>
<content>A lender is considered to have donated loaned property to a museum if the lender fails to file an action to recover the property on loan to the museum within the period specified by Subsection (a).</content>
</subsection>
<subsection identifier="/us/tx/pr/t6A/c80/s80.007/d">
<num value="d">(d)</num>
<content>A person who purchases property from a museum acquires valid title to the property if the museum represents that it has acquired title to the property under Subsection (b) or (c).</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 1076, Sec. 1, eff. Sept. 1, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t6A/c80/s80.008">
<num value="80.008">Sec. 80.008.</num>
<heading>NOTICE OF PROVISIONS OF CHAPTER; LENDER'S NOTICES</heading>
<subsection identifier="/us/tx/pr/t6A/c80/s80.008/a">
<num value="a">(a)</num>
<content>If, after August 31, 1987, a museum accepts a loan of property for an indefinite term or for a term in excess of seven years, the museum shall inform the lender in writing at the time of the loan of the provisions of this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t6A/c80/s80.008/b">
<num value="b">(b)</num>
<content>The lender of property to a museum shall notify the museum promptly in writing of any changes of address or change in ownership of the property.</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 1076, Sec. 1, eff. Sept. 1, 1987.</sourceCredit>
</section>
</chapter>
<num value="7">TITLE 7.</num>
<heading>CONDOMINIUMS</heading>
<chapter identifier="/us/tx/pr/t7/c81">
<num value="81">CHAPTER 81.</num>
<heading>CONDOMINIUMS CREATED BEFORE ADOPTION OF UNIFORM CONDOMINIUM ACT</heading>
<subchapter identifier="/us/tx/pr/t7/c81/scA">
<num value="A">SUBCHAPTER A.</num>
<heading>PROVISIONS GENERALLY APPLICABLE TO CONDOMINIUMS</heading>
<section identifier="/us/tx/pr/t7/c81/scA/s81.001">
<num value="81.001">Sec. 81.001.</num>
<heading>SHORT TITLE</heading>
<content>This chapter may be cited as the Condominium Act.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3616, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c81/scA/s81.0011">
<num value="81.0011">Sec. 81.0011.</num>
<heading>APPLICABILITY</heading>
<subsection identifier="/us/tx/pr/t7/c81/scA/s81.0011/a">
<num value="a">(a)</num>
<content>This chapter applies only to a condominium regime created before January 1, 1994. A condominium regime created on or after January 1, 1994, is governed by Chapter 82.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c81/scA/s81.0011/b">
<num value="b">(b)</num>
<content>A condominium regime created before January 1, 1994, to which this chapter applies is also governed by Chapter 82 as provided by Section 82.002.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 3, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c81/scA/s81.002">
<num value="81.002">Sec. 81.002.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c81/scA/s81.002/1">
<num value="1">(1)</num>
<content>"Apartment" means an enclosed space, regardless of whether it is designed for residential or other use, that consists of one or more rooms in a building and that has a direct exit to a thoroughfare or to a common space that leads to a thoroughfare.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c81/scA/s81.002/2">
<num value="2">(2)</num>
<content>"Building" includes each principal structure on or to be erected on real property dedicated in a declaration to a condominium regime.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c81/scA/s81.002/3">
<num value="3">(3)</num>
<content>"Condominium" means a form of real property ownership that combines separate ownership of individual apartments or units with common ownership of other elements.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c81/scA/s81.002/4">
<num value="4">(4)</num>
<content>"Council of owners" means all the apartment owners in a condominium project.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c81/scA/s81.002/5">
<num value="5">(5)</num>
<content>"Declaration" means the instrument that establishes property under a condominium regime.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c81/scA/s81.002/6">
<num value="6">(6)</num>
<chapeau>"General common elements" means the property that is part of a condominium regime other than property that is part of or belongs to an apartment in the regime, including:</chapeau>
<subparagraph identifier="/us/tx/pr/t7/c81/scA/s81.002/A">
<num value="A">(A)</num>
<content>land on which the building is erected;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t7/c81/scA/s81.002/B">
<num value="B">(B)</num>
<content>foundations, bearing walls and columns, roofs, halls, lobbies, stairways, and entrance, exit, and communication ways;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t7/c81/scA/s81.002/C">
<num value="C">(C)</num>
<content>basements, flat roofs, yards, and gardens, except as otherwise provided;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t7/c81/scA/s81.002/D">
<num value="D">(D)</num>
<content>premises for the lodging of janitors or persons in charge of the building, except as otherwise provided;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t7/c81/scA/s81.002/E">
<num value="E">(E)</num>
<content>compartments or installation of central services such as power, light, gas, water, refrigeration, central heat and air, reservoirs, water tanks and pumps, and swimming pools; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t7/c81/scA/s81.002/F">
<num value="F">(F)</num>
<content>elevators and elevator shafts, garbage incinerators, and all other devices and installations generally existing for common use.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c81/scA/s81.002/7">
<num value="7">(7)</num>
<content>"Limited common elements" means a portion of the common elements allocated by unanimous agreement of a council of owners for the use of one or more but less than all of the apartments, such as special corridors, stairways and elevators, sanitary services common to the apartments of a particular floor, and similar areas or facilities.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c81/scA/s81.002/8">
<num value="8">(8)</num>
<content>"Master deed" means a deed that establishes property under a condominium regime.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c81/scA/s81.002/9">
<num value="9">(9)</num>
<content>"Master lease" means a lease that establishes property under a condominium regime.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c81/scA/s81.002/10">
<num value="10">(10)</num>
<content>"Project" means a plan to offer for sale or to sell real property consisting of four or more apartments, rooms, office spaces, or other units in an existing or proposed building as a condominium.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c81/scA/s81.002/11">
<num value="11">(11)</num>
<content>"Property" means real property, whether leased or owned, the improvements on the property, and the incorporeal rights that are appurtenant to the property.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3616, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c81/scA/s81.003">
<num value="81.003">Sec. 81.003.</num>
<heading>APPLICABILITY OF LOCAL ORDINANCES AND REGULATIONS</heading>
<subsection identifier="/us/tx/pr/t7/c81/scA/s81.003/a">
<num value="a">(a)</num>
<content>A planning or zoning commission of a county or municipality may adopt regulations governing condominium regimes that supplement this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c81/scA/s81.003/b">
<num value="b">(b)</num>
<content>A local zoning ordinance must be construed to treat similar structures, lots, or parcels in a similar manner regardless of whether the property is a condominium or is leased.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3617, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t7/c81/scB">
<num value="B">SUBCHAPTER B.</num>
<heading>CREATION, ALTERATION, AND TERMINATION OF CONDOMINIUMS</heading>
<section identifier="/us/tx/pr/t7/c81/scB/s81.101">
<num value="81.101">Sec. 81.101.</num>
<heading>CREATION OF CONDOMINIUM</heading>
<content>An owner or developer of an existing or a planned building establishes a condominium regime by recording a master deed, master lease, or declaration under Section 81.102.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3618, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c81/scB/s81.102">
<num value="81.102">Sec. 81.102.</num>
<heading>CONTENTS OF DECLARATION, MASTER DEED, OR MASTER LEASE</heading>
<subsection identifier="/us/tx/pr/t7/c81/scB/s81.102/a">
<num value="a">(a)</num>
<chapeau>A declaration, master deed, or master lease for a condominium must contain:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c81/scB/s81.102/1">
<num value="1">(1)</num>
<content>the legal description of the real property dedicated to the condominium regime, depicted by a plat of the property that locates and identifies by letter each existing or proposed building;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c81/scB/s81.102/2">
<num value="2">(2)</num>
<content>a general description of each apartment, including the square footage, location, number, and other information necessary for identification of the apartment, depicted by a plat of the floor of the building in which the apartment is located that identifies the building by letter and the floor and the apartment by number;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c81/scB/s81.102/3">
<num value="3">(3)</num>
<content>a general description of each area not already described that is subject to individual ownership and exclusive control, such as a garage or carport, depicted by a plat that shows the area and appropriately identifies it by letter or number;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c81/scB/s81.102/4">
<num value="4">(4)</num>
<content>a description of the general common elements that are not described under Subdivision 1;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c81/scB/s81.102/5">
<num value="5">(5)</num>
<content>a description of the limited common elements;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c81/scB/s81.102/6">
<num value="6">(6)</num>
<content>each apartment's fractional or percentage interest in the entire condominium regime;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c81/scB/s81.102/7">
<num value="7">(7)</num>
<content>a provision that the declaration may only be amended at a meeting of the apartment owners at which the amendment is approved by the holders of at least 67 percent of the ownership interests in the condominium; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c81/scB/s81.102/8">
<num value="8">(8)</num>
<content>a provision that an amendment of the declaration may not alter or destroy a unit or a limited common element without the consent of the owners affected and the owners' first lien mortgagees.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c81/scB/s81.102/b">
<num value="b">(b)</num>
<content>A declaration, master deed, or master lease for a condominium may contain any covenants or other matters the declarant considers appropriate.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3618, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 18, Sec. 9(b), eff. Oct. 2, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c81/scB/s81.103">
<num value="81.103">Sec. 81.103.</num>
<heading>PUBLIC RECORDS</heading>
<subsection identifier="/us/tx/pr/t7/c81/scB/s81.103/a">
<num value="a">(a)</num>
<content>Each county clerk shall maintain suitable records called "Condominium Records" in which the clerk shall record master deeds, master leases, and declarations for condominiums.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c81/scB/s81.103/b">
<num value="b">(b)</num>
<content>A county clerk shall record plats and other instruments in a declaration without prior approval from any other authority.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c81/scB/s81.103/c">
<num value="c">(c)</num>
<content>A document required or authorized by this chapter to be recorded must be recorded according to law in the real property records of the county in which the property to which the document relates is located.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3618, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c81/scB/s81.104">
<num value="81.104">Sec. 81.104.</num>
<heading>APARTMENT OWNERSHIP</heading>
<subsection identifier="/us/tx/pr/t7/c81/scB/s81.104/a">
<num value="a">(a)</num>
<content>An owner of an apartment in a condominium regime owns it exclusively, and the owner may possess, convey, or encumber the apartment, or subject it to judicial acts, independently of the other apartments in the condominium regime.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c81/scB/s81.104/b">
<num value="b">(b)</num>
<content>An individual title or interest in an apartment in a condominium regime is recordable.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c81/scB/s81.104/c">
<num value="c">(c)</num>
<content>The entire interest in the condominium regime shall be divided among the apartments.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c81/scB/s81.104/d">
<num value="d">(d)</num>
<content>A person may own an apartment in a condominium regime jointly or in common with others.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c81/scB/s81.104/e">
<num value="e">(e)</num>
<content>A condominium association may not alter or destroy an apartment or a limited common element without the consent of all owners affected and the first lien mortgagees of all affected owners.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3619, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 18, Sec. 9(c), eff. Oct. 2, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c81/scB/s81.105">
<num value="81.105">Sec. 81.105.</num>
<heading>APARTMENT BOUNDARIES</heading>
<subsection identifier="/us/tx/pr/t7/c81/scB/s81.105/a">
<num value="a">(a)</num>
<content>The boundaries of an apartment in a condominium regime are the interior surfaces of the apartment's perimeter walls, floors, and ceilings, and the exterior surfaces of the apartment's balconies and terraces.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c81/scB/s81.105/b">
<num value="b">(b)</num>
<content>Except for common elements, the portions of a building on the boundaries of an apartment in a condominium regime and the airspace within those boundaries are part of the apartment.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c81/scB/s81.105/c">
<num value="c">(c)</num>
<content>In interpreting a legal instrument relating to an apartment or to an apartment that has been reconstructed substantially according to the original plans of the apartment, the physical boundaries of the apartment are conclusively presumed to be the proper boundaries of the apartment regardless of settling, rising, or lateral movement of the building containing the apartment and regardless of variances between boundaries shown on the plat of the building and the actual boundaries of the building.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3619, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c81/scB/s81.106">
<num value="81.106">Sec. 81.106.</num>
<heading>APARTMENT DEEDS</heading>
<chapeau>A deed to an apartment in a condominium regime must:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c81/scB/s81.106/1">
<num value="1">(1)</num>
<content>include by reference the plats in the declaration;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c81/scB/s81.106/2">
<num value="2">(2)</num>
<content>state the encumbrances against the apartment;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c81/scB/s81.106/3">
<num value="3">(3)</num>
<content>describe the apartment according to the plat; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c81/scB/s81.106/4">
<num value="4">(4)</num>
<content>state the apartment's fractional or percentage interest in the condominium regime.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3620, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c81/scB/s81.107">
<num value="81.107">Sec. 81.107.</num>
<heading>INTERESTS IN COMMON ELEMENTS</heading>
<content>An owner of an apartment in a condominium regime shares ownership of the regime's common elements with the other apartment owners. An apartment owner may use the common elements according to their intended purposes, as expressed in the plat, declaration, or bylaws of the condominium regime, without interfering with the rights of the other apartment owners.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3620, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c81/scB/s81.108">
<num value="81.108">Sec. 81.108.</num>
<heading>PARTITION OF COMMON ELEMENTS</heading>
<subsection identifier="/us/tx/pr/t7/c81/scB/s81.108/a">
<num value="a">(a)</num>
<content>The ownership of the general and the limited common elements of a condominium regime may not be judicially partitioned or divided while they are suitable for a condominium regime.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c81/scB/s81.108/b">
<num value="b">(b)</num>
<content>A person may not initiate an action for partition of the limited or general common elements of a condominium regime unless the mortgages on the property are paid or the consent of the mortgagees is obtained.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c81/scB/s81.108/c">
<num value="c">(c)</num>
<content>An agreement contrary to this section is void.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3621, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c81/scB/s81.109">
<num value="81.109">Sec. 81.109.</num>
<heading>CONVEYANCE OF COMMON ELEMENTS</heading>
<content>An apartment in a condominium regime and the undivided interest of an apartment owner in the common elements of the regime that are attributable to the apartment may not be conveyed separately. If a conveyance of an apartment does not refer to the common elements, the undivided interest of the apartment owner in the general and the limited common elements of the regime attributable to the apartment is conveyed with the apartment.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3622, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c81/scB/s81.110">
<num value="81.110">Sec. 81.110.</num>
<heading>TERMINATION OF CONDOMINIUM REGIME</heading>
<subsection identifier="/us/tx/pr/t7/c81/scB/s81.110/a">
<num value="a">(a)</num>
<content>By unanimous agreement, or if the declaration provides for termination by agreement of the owners, by agreement of the holders of at least 67 percent or a stated percentage in the declaration, whichever is greater, of the ownership interests in the condominium, the owners of a building in a condominium regime may terminate the regime and request the county clerk of the county in which the regime is located to merge the records of the estates that comprise the condominium regime, if any creditors in whose behalf encumbrances against the building are recorded agree to accept the undivided portions of the property owned by the debtors as security, provided no amendment may be made to a declaration to reduce the vote required for termination of the condominium regime.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c81/scB/s81.110/b">
<num value="b">(b)</num>
<content>If a condominium regime is terminated, each apartment owner owns an undivided interest in the common property that corresponds to the undivided interest previously owned by the apartment owner in the common elements.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c81/scB/s81.110/c">
<num value="c">(c)</num>
<content>Property that has been removed from a condominium regime may be dedicated to another condominium regime at any time.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3621, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 157, Sec. 1, eff. May 25, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c81/scB/s81.111">
<num value="81.111">Sec. 81.111.</num>
<heading>AMENDMENT OF CONDOMINIUM DECLARATION</heading>
<content>After a condominium declaration is recorded with a county clerk, the declaration may not be amended except at a meeting of the apartment owners at which the amendment is approved by the holders of at least 67 percent of the ownership interests in the condominium.</content>
<sourceCredit>Added by Acts 1984, 68th Leg., 2nd C.S., ch. 18, Sec. 9(d), eff. Oct. 2, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c81/scB/s81.112">
<num value="81.112">Sec. 81.112.</num>
<heading>RESTRICTION RELATING TO CLUB MEMBERSHIP</heading>
<subsection identifier="/us/tx/pr/t7/c81/scB/s81.112/a">
<num value="a">(a)</num>
<content>A provision of a declaration, master deed, master lease, or other recorded contract that requires owners of apartments in a condominium regime to maintain a membership in a specified private club is not valid after the 10th anniversary of the date the provision is recorded or renewed unless renewed after the ninth anniversary of that date at a meeting of the apartment owners at which the renewal is approved by the holders of at least 67 percent of the ownership interests in the condominium and the text of the renewed provision is recorded in the real property records of each county in which the condominium is located.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c81/scB/s81.112/b">
<num value="b">(b)</num>
<content>A provision described by this section may not be enacted or renewed as a bylaw by a council of owners.</content>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 1101, Sec. 1, eff. Sept. 1, 2003.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t7/c81/scC">
<num value="C">SUBCHAPTER C.</num>
<heading>CONDOMINIUM MANAGEMENT</heading>
<section identifier="/us/tx/pr/t7/c81/scC/s81.201">
<num value="81.201">Sec. 81.201.</num>
<heading>AUTHORITY OF COUNCIL OF OWNERS</heading>
<subsection identifier="/us/tx/pr/t7/c81/scC/s81.201/a">
<num value="a">(a)</num>
<content>The council of owners of a condominium regime may adopt and amend bylaws.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c81/scC/s81.201/b">
<num value="b">(b)</num>
<content>A council of owners of a condominium regime may institute litigation on behalf of two or more apartment owners concerning a matter related to the common elements of two or more apartments. The council of owners may delegate its authority under this subsection by designating in the bylaws a person who may exercise the authority. This subsection does not limit the right of an apartment owner to bring an action in the apartment owner's own behalf.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3621, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c81/scC/s81.202">
<num value="81.202">Sec. 81.202.</num>
<heading>BYLAWS</heading>
<content>The bylaws of a condominium regime govern the administration of the buildings that comprise the regime.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3621, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c81/scC/s81.203">
<num value="81.203">Sec. 81.203.</num>
<heading>VOTING MAJORITY</heading>
<content>For the purposes of this chapter, the apartment owners who own at least 51 percent of the interests in a condominium regime, as determined under the declaration, are a majority of the apartment owners.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3621, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c81/scC/s81.204">
<num value="81.204">Sec. 81.204.</num>
<heading>MAINTENANCE OF CONDOMINIUM</heading>
<subsection identifier="/us/tx/pr/t7/c81/scC/s81.204/a">
<num value="a">(a)</num>
<chapeau>An apartment owner in a condominium regime is responsible for the apartment owner's pro rata share of:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c81/scC/s81.204/1">
<num value="1">(1)</num>
<content>the expenses to administer the condominium regime and to maintain and repair the general common elements;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c81/scC/s81.204/2">
<num value="2">(2)</num>
<content>in proper cases, the expenses to administer the limited common elements of the buildings in the condominium regime; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c81/scC/s81.204/3">
<num value="3">(3)</num>
<content>other expenses approved by the council of owners.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c81/scC/s81.204/b">
<num value="b">(b)</num>
<content>An apartment owner in a condominium regime is not exempted from the obligation under this section to contribute toward the expenses of the condominium regime by waiving the use of the common elements or abandoning the apartment.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3622, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c81/scC/s81.205">
<num value="81.205">Sec. 81.205.</num>
<heading>INSURANCE</heading>
<subsection identifier="/us/tx/pr/t7/c81/scC/s81.205/a">
<num value="a">(a)</num>
<content>By resolution of a majority of the council of owners or in the manner provided or required by the declaration or bylaws, the council of owners may acquire the insurance it deems appropriate for the protection of the buildings and the apartment owners.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c81/scC/s81.205/b">
<num value="b">(b)</num>
<content>Insurance may be written in the name of the council of owners, or in the name of a person designated in the declaration or bylaws, as trustee for the apartment owners and their mortgagees. Each apartment owner and mortgagee of an apartment owner is a beneficiary of the policy, whether named as a beneficiary or not, in proportion to the interest of an apartment owner in the condominium regime as established by the declaration.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c81/scC/s81.205/c">
<num value="c">(c)</num>
<content>The acquisition of insurance by the council of owners does not prejudice the right of an apartment owner in a condominium regime to obtain insurance for the apartment owner's own benefit.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3622, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c81/scC/s81.206">
<num value="81.206">Sec. 81.206.</num>
<heading>DISPOSITION OF INSURANCE PROCEEDS</heading>
<subsection identifier="/us/tx/pr/t7/c81/scC/s81.206/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (b), if a building in a condominium regime is damaged by a casualty against which it is insured, the proceeds of the insurance policy shall be used to reconstruct the building. The council of owners or the bylaws of the condominium regime govern the conduct of the reconstruction.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c81/scC/s81.206/b">
<num value="b">(b)</num>
<content>If more than two-thirds of a building in a condominium regime requires reconstruction because of a casualty against which it is insured, the council of owners may elect not to reconstruct the building. Unless the council of owners unanimously agrees otherwise, the insurance proceeds shall be paid to the individual apartment owners or their mortgagees, as their interest may appear, in proportion to the interest of an apartment owner in the condominium regime as established by the declaration.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3622, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c81/scC/s81.207">
<num value="81.207">Sec. 81.207.</num>
<heading>INSUFFICIENT INSURANCE</heading>
<subsection identifier="/us/tx/pr/t7/c81/scC/s81.207/a">
<num value="a">(a)</num>
<content>If under Section 81.206 a damaged building in a condominium regime must be reconstructed but insurance proceeds are insufficient to pay for the cost of reconstruction, the apartment owners directly affected by the damage shall pay the difference between the cost of reconstruction and the insurance proceeds, unless the bylaws provide otherwise. Each affected apartment owner shall contribute an amount for reconstruction that is proportionate to the interest of the apartment owner in the condominium regime.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c81/scC/s81.207/b">
<num value="b">(b)</num>
<content>If one or more but less than a majority of the affected apartment owners refuse to make a payment required under this section, after a resolution by the majority of the affected apartment owners stating the circumstances of the case and the cost of the work, the majority may repair the damage at the expense of all apartment owners benefited by the reconstruction.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c81/scC/s81.207/c">
<num value="c">(c)</num>
<content>By a unanimous resolution subsequent to the date of a casualty, the apartment owners in a condominium regime who are concerned with the application of this section may elect to modify its effects.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3623, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c81/scC/s81.208">
<num value="81.208">Sec. 81.208.</num>
<heading>ASSESSMENTS DUE ON CONVEYANCE</heading>
<chapeau>If an apartment owner conveys the apartment and assessments against the apartment are unpaid, the apartment owner shall pay the past due assessments out of the sale price of the apartment, or the purchaser shall pay the assessments, in preference to any other charges against the property except:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c81/scC/s81.208/1">
<num value="1">(1)</num>
<content>assessments, liens, and charges in favor of this state or a political subdivision of this state for taxes on the apartment that are due and unpaid; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c81/scC/s81.208/2">
<num value="2">(2)</num>
<content>an obligation due under a validly recorded mortgage.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3623, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c81/scC/s81.209">
<num value="81.209">Sec. 81.209.</num>
<heading>CONDOMINIUM RECORDS</heading>
<subsection identifier="/us/tx/pr/t7/c81/scC/s81.209/a">
<num value="a">(a)</num>
<content>The administrator or board of administration of a condominium regime or a person appointed by the bylaws of the regime shall keep a detailed written account of the receipts and expenditures related to the building and its administration that specifies the expenses incurred by the regime.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c81/scC/s81.209/b">
<num value="b">(b)</num>
<content>The accounts and supporting vouchers of a condominium regime shall be made available to the apartment owners for examination on working days at convenient, established, and publicly announced hours.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c81/scC/s81.209/c">
<num value="c">(c)</num>
<content>The books and records of a condominium regime must comply with good accounting procedures and must be audited at least once each year by an auditor who is not associated with the condominium regime.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3625, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c81/scC/s81.210">
<num value="81.210">Sec. 81.210.</num>
<heading>LOANS AS ELIGIBLE INVESTMENTS</heading>
<subsection identifier="/us/tx/pr/t7/c81/scC/s81.210/a">
<num value="a">(a)</num>
<content>If a fiduciary or a bank, savings and loan association, trust company, life insurance company, or other lending institution is authorized to make real estate loans, a loan on an apartment in a condominium regime and the undivided interest in the common elements of the regime that is appurtenant to the apartment is an eligible investment for the fiduciary or lending institution.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c81/scC/s81.210/b">
<num value="b">(b)</num>
<content>A lender may not consider the existence of a prior lien for taxes, assessments, or other similar charges that are not delinquent in determining whether a mortgage or deed of trust is a first lien on the security for a loan under this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c81/scC/s81.210/c">
<num value="c">(c)</num>
<content>For the purposes of this section, an apartment in a condominium regime and the undivided interest in the common elements appurtenant to the apartment are a single unit independent of the other units in the regime.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c81/scC/s81.210/d">
<num value="d">(d)</num>
<content>This section does not affect any otherwise applicable provision of law that limits mortgage investments based on a special fraction or percentage of the value of the mortgaged property.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3625, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
</subchapter>
</chapter>
<chapter identifier="/us/tx/pr/t7/c82">
<num value="82">CHAPTER 82.</num>
<heading>UNIFORM CONDOMINIUM ACT</heading>
<subchapter identifier="/us/tx/pr/t7/c82/scA">
<num value="A">SUBCHAPTER A.</num>
<heading>GENERAL PROVISIONS</heading>
<section identifier="/us/tx/pr/t7/c82/scA/s82.001">
<num value="82.001">Sec. 82.001.</num>
<heading>SHORT TITLE</heading>
<content>This chapter may be cited as the Uniform Condominium Act.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scA/s82.002">
<num value="82.002">Sec. 82.002.</num>
<heading>APPLICABILITY</heading>
<subsection identifier="/us/tx/pr/t7/c82/scA/s82.002/a">
<num value="a">(a)</num>
<chapeau>This chapter applies to all commercial, industrial, residential, and other types of condominiums in this state for which the declaration is recorded on or after January 1, 1994. A condominium for which the declaration was recorded before January 1, 1994, may be governed exclusively under this chapter if either:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scA/s82.002/1">
<num value="1">(1)</num>
<content>the owners of units vote to amend the declaration, in accordance with the amendment process authorized by the declaration, to have this chapter apply and that amendment is filed for record in the condominium records in each county in which the condominium is located; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scA/s82.002/2">
<num value="2">(2)</num>
<content>a declaration or amendment of declaration was recorded before January 1, 1994, and the declaration or amendment states that this chapter will apply in its entirety on January 1, 1994.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scA/s82.002/b">
<num value="b">(b)</num>
<content>An amendment to a declaration under Subsection (a)(1) that implements a vote of the unit owners to be governed by this chapter may not affect the rights of a declarant or impose duties on a declarant that are greater than or in addition to the declarant's duties immediately before the date of the vote or amendment.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scA/s82.002/c">
<num value="c">(c)</num>
<content>This section and the following sections apply to a condominium in this state for which the declaration was recorded before January 1, 1994: Sections 82.005, 82.006, 82.007, 82.053, 82.054, 82.102(a)(1)-(7), (a)(12)-(21), (f), and (g), 82.108, 82.111, 82.113, 82.114, 82.116, 82.118, 82.157, and 82.161. The definitions prescribed by Section 82.003 apply to a condominium in this state for which the declaration was recorded before January 1, 1994, to the extent the definitions do not conflict with the declaration. The sections listed in this subsection apply only with respect to events and circumstances occurring on or after January 1, 1994, and do not invalidate existing provisions of the declaration, bylaws, or plats or plans of a condominium for which the declaration was recorded before January 1, 1994.</content>
<continuation>(c-1) Section 82.121 applies to a condominium for which the declaration was recorded before January 1, 1994.</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scA/s82.002/d">
<num value="d">(d)</num>
<content>Chapter 81 does not apply to a condominium for which the declaration was recorded on or after January 1, 1994, and does not invalidate any amendment to the declaration, bylaws, or plats and plans of any condominium for which the declaration was recorded before January 1, 1994, if the amendment would be permitted by this chapter. The amendment must be adopted in conformity with the procedures and requirements specified by those instruments and by Chapter 81. If the amendment grants to a person a right, power, or privilege permitted by this chapter, all correlative obligations, liabilities, and restrictions prescribed by this chapter also apply to that person.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994. Amended by Acts 1997, 75th Leg., ch. 956, Sec. 1, eff. Jan. 1, 1998.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1323 (H.B. 3128), Sec. 1, eff. September 1, 2009.
Acts 2013, 83rd Leg., R.S., Ch. 678 (H.B. 2075), Sec. 1, eff. September 1, 2013.
Acts 2019, 86th Leg., R.S., Ch. 39 (H.B. 302), Sec. 4, eff. September 1, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scA/s82.003">
<num value="82.003">Sec. 82.003.</num>
<heading>DEFINITIONS</heading>
<subsection identifier="/us/tx/pr/t7/c82/scA/s82.003/a">
<num value="a">(a)</num>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scA/s82.003/1">
<num value="1">(1)</num>
<content>"Affiliate of a declarant" means any person who controls, is controlled by, or is under common control with a declarant. A person "controls" a declarant if the person is a general partner, officer, director, or employer of the declarant; directly or indirectly or acting in concert with one or more other persons, or through one or more subsidiaries, owns, controls, holds with power to vote or holds proxies representing more than 20 percent of the voting interests in the declarant; determines in any manner the election of a majority of the directors of the declarant; or has contributed more than 20 percent of the capital of the declarant. A person "is controlled by" a declarant if the declarant is a general partner, officer, director, or employer of the person; directly or indirectly or acting in concert with one or more other persons, or through one or more subsidiaries, owns, controls, holds with power to vote, or holds proxies representing more than 20 percent of the voting interests in the person; determines in any manner the election of a majority of the directors of the person; or has contributed more than 20 percent of the capital of the person.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scA/s82.003/2">
<num value="2">(2)</num>
<content>"Allocated interests" means the undivided interest in the common elements, the common expense liability, and votes in the association allocated to each unit.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scA/s82.003/3">
<num value="3">(3)</num>
<content>"Association" means the unit owners' association organized under Section 82.101.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scA/s82.003/4">
<num value="4">(4)</num>
<content>"Board" means the board of directors or the body, regardless of name, designated to act on behalf of the association.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scA/s82.003/5">
<num value="5">(5)</num>
<content>"Common elements" means all portions of a condominium other than the units and includes both general and limited common elements.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scA/s82.003/6">
<num value="6">(6)</num>
<content>"Common expense liability" means the liability for common expenses allocated to each unit.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scA/s82.003/7">
<num value="7">(7)</num>
<content>"Common expenses" means expenditures made by or financial liabilities of the association, together with any allocations to reserves.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scA/s82.003/8">
<num value="8">(8)</num>
<content>"Condominium" means a form of real property with portions of the real property designated for separate ownership or occupancy, and the remainder of the real property designated for common ownership or occupancy solely by the owners of those portions. Real property is a condominium only if one or more of the common elements are directly owned in undivided interests by the unit owners. Real property is not a condominium if all of the common elements are owned by a legal entity separate from the unit owners, such as a corporation, even if the separate legal entity is owned by the unit owners.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scA/s82.003/9">
<num value="9">(9)</num>
<content>"Conversion building" means a building that at any time before creation of the condominium was occupied wholly or partially by persons other than purchasers and persons who occupy with the consent of purchasers.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scA/s82.003/10">
<num value="10">(10)</num>
<chapeau>"Declarant" means a person, or group of persons acting in concert, who:</chapeau>
<subparagraph identifier="/us/tx/pr/t7/c82/scA/s82.003/A">
<num value="A">(A)</num>
<content>as part of a common promotional plan, offers to dispose of the person's interest in a unit not previously disposed of; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t7/c82/scA/s82.003/B">
<num value="B">(B)</num>
<content>reserves or succeeds to any special declarant right.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scA/s82.003/11">
<num value="11">(11)</num>
<content>"Declaration" means an instrument, however denominated, that creates a condominium, and any amendment to that instrument.</content>
<continuation>(11-a) "Dedicatory instrument" means each document governing the establishment, maintenance, or operation of a condominium regime. The term includes a declaration or similar instrument subjecting real property to:</continuation>
<subparagraph identifier="/us/tx/pr/t7/c82/scA/s82.003/A">
<num value="A">(A)</num>
<content>restrictive covenants, bylaws, or similar instruments governing the administration or operation of a unit owners' association;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t7/c82/scA/s82.003/B">
<num value="B">(B)</num>
<content>properly adopted rules and regulations of the unit owners' association; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t7/c82/scA/s82.003/C">
<num value="C">(C)</num>
<content>all lawful amendments to the covenants, bylaws, instruments, rules, or regulations.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scA/s82.003/12">
<num value="12">(12)</num>
<chapeau>"Development rights" means a right or combination of rights reserved by a declarant in the declaration to:</chapeau>
<subparagraph identifier="/us/tx/pr/t7/c82/scA/s82.003/A">
<num value="A">(A)</num>
<content>add real property to a condominium;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t7/c82/scA/s82.003/B">
<num value="B">(B)</num>
<content>create units, common elements, or limited common elements within a condominium;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t7/c82/scA/s82.003/C">
<num value="C">(C)</num>
<content>subdivide units or convert units into common elements; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t7/c82/scA/s82.003/D">
<num value="D">(D)</num>
<content>withdraw real property from a condominium.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scA/s82.003/13">
<num value="13">(13)</num>
<content>"Disposition" means a voluntary transfer to a purchaser of any legal or equitable interest in a unit but does not include the transfer or release of a security interest.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scA/s82.003/14">
<num value="14">(14)</num>
<content>"General common elements" means common elements that are not limited common elements.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scA/s82.003/15">
<num value="15">(15)</num>
<content>"Identifying number" means a symbol or address that identifies only one unit in a condominium.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scA/s82.003/16">
<num value="16">(16)</num>
<content>"Leasehold condominium" means a condominium in which all or a portion of the real property is subject to a lease the expiration or termination of which will terminate the condominium or reduce its size.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scA/s82.003/17">
<num value="17">(17)</num>
<content>"Limited common element" means a portion of the common elements allocated by the declaration or by operation of Section 82.052 for the exclusive use of one or more but less than all of the units.</content>
<continuation>(17-a) "Management company" means a person or entity established or contracted to provide management or administrative services on behalf of a unit owners' association organized under Section 82.101.</continuation>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scA/s82.003/18">
<num value="18">(18)</num>
<content>"Plan" means a dimensional drawing that is recordable in the real property records or the condominium plat records and that horizontally and vertically identifies or describes units and common elements that are contained in buildings.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scA/s82.003/19">
<num value="19">(19)</num>
<content>"Plat" means a survey recordable in the real property records or the condominium plat records and containing the information required by Section 82.059. As used in this chapter, "plat" does not have the same meaning as "plat" in Chapter 212 or 232, Local Government Code, or other statutes dealing with municipal or county regulation of property development.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scA/s82.003/20">
<num value="20">(20)</num>
<content>"Purchaser" means a person, other than a declarant, who by means of a voluntary transfer acquires a legal or equitable interest in a unit other than a leasehold interest or as security for an obligation.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scA/s82.003/21">
<num value="21">(21)</num>
<content>"Residential purposes" means recreational or dwelling purposes, or both.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scA/s82.003/22">
<num value="22">(22)</num>
<chapeau>"Special declarant rights" means rights reserved for the benefit of a declarant to:</chapeau>
<subparagraph identifier="/us/tx/pr/t7/c82/scA/s82.003/A">
<num value="A">(A)</num>
<content>complete improvements indicated on plats and plans filed with the declaration;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t7/c82/scA/s82.003/B">
<num value="B">(B)</num>
<content>exercise any development right;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t7/c82/scA/s82.003/C">
<num value="C">(C)</num>
<content>make the condominium part of a larger condominium or a planned community;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t7/c82/scA/s82.003/D">
<num value="D">(D)</num>
<content>maintain sales, management, and leasing offices, signs advertising the condominium, and models;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t7/c82/scA/s82.003/E">
<num value="E">(E)</num>
<content>use easements through the common elements for the purpose of making improvements within the condominium or within real property that may be added to the condominium; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t7/c82/scA/s82.003/F">
<num value="F">(F)</num>
<content>appoint or remove any officer or board member of the association during any period of declarant control.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scA/s82.003/23">
<num value="23">(23)</num>
<content>"Unit" means a physical portion of the condominium designated for separate ownership or occupancy, the boundaries of which are described by the declaration.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scA/s82.003/24">
<num value="24">(24)</num>
<content>"Unit owner" means a declarant or other person who owns a unit, or a lessee of a unit in a leasehold condominium whose lease expires simultaneously with any lease the expiration or termination of which will remove the unit from the condominium, but does not include a person having an interest in a unit solely as security for an obligation.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scA/s82.003/b">
<num value="b">(b)</num>
<content>Unless otherwise provided by the declaration or bylaws, a term defined by Subsection (a) has the same meaning if used in a declaration or bylaws.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 678 (H.B. 2075), Sec. 2, eff. September 1, 2013.
Acts 2025, 89th Leg., R.S., Ch. 10 (S.B. 711), Sec. 1, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scA/s82.004">
<num value="82.004">Sec. 82.004.</num>
<heading>VARIATION BY AGREEMENT</heading>
<content>Except as expressly provided by this chapter, provisions of this chapter may not be varied by agreement, and rights conferred by this chapter may not be waived. A person may not act under a power of attorney or use any other device to evade the limitations or prohibitions of this chapter or the declaration.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scA/s82.005">
<num value="82.005">Sec. 82.005.</num>
<heading>SEPARATE TITLES AND TAXATION</heading>
<subsection identifier="/us/tx/pr/t7/c82/scA/s82.005/a">
<num value="a">(a)</num>
<content>If there is a unit owner other than a declarant, each unit that has been created, together with its interest in the common elements, constitutes for all purposes a separate parcel of real property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scA/s82.005/b">
<num value="b">(b)</num>
<content>If there is a unit owner other than a declarant, each unit must be separately taxed and assessed, and no separate tax or assessment may be rendered against common elements for which a declarant has not reserved development rights. Any portion of the common elements for which a declarant has reserved any development right must be separately taxed and assessed against the declarant, and the declarant alone is liable for payment of those taxes.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scA/s82.005/c">
<num value="c">(c)</num>
<content>If there is no unit owner other than a declarant, the real property constituting the condominium may be taxed and assessed in any manner provided by law.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scA/s82.005/d">
<num value="d">(d)</num>
<content>The laws relating to homestead exemptions from property taxes apply to condominium units, which are entitled to homestead exemptions in those cases in which the owner of a single family dwelling would qualify.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scA/s82.006">
<num value="82.006">Sec. 82.006.</num>
<heading>APPLICABILITY OF LOCAL ORDINANCES, REGULATIONS, AND BUILDING CODES</heading>
<content>A zoning, subdivision, building code, or other real property use law, ordinance, or regulation may not prohibit the condominium form of ownership or impose any requirement on a condominium that it would not impose on a physically identical development under a different form of ownership. Otherwise, this chapter does not invalidate or modify any provision of any zoning, subdivision, building code, or other real property use law, ordinance, or regulation.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scA/s82.007">
<num value="82.007">Sec. 82.007.</num>
<heading>CONDEMNATION</heading>
<subsection identifier="/us/tx/pr/t7/c82/scA/s82.007/a">
<num value="a">(a)</num>
<content>If a unit is acquired by condemnation, or if part of a unit is acquired by condemnation leaving the unit owner with a remnant that may not practically or lawfully be used for any purpose permitted by the declaration, the condemnation award must compensate the unit owner for the unit and its common element interest, whether or not any common element interest is acquired. On acquisition, unless the decree provides otherwise, the condemned unit's entire allocated interests are automatically reallocated to the remaining units in proportion to the respective allocated interests of those units before the taking, and the association shall promptly prepare, execute, and record an amendment to the declaration reflecting the reallocations. A remnant of a unit remaining after part of a unit is taken under this subsection is a common element.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scA/s82.007/b">
<num value="b">(b)</num>
<content>Except as provided by Subsection (a), if part of a unit is acquired by condemnation, the award must compensate the unit owner for the reduction in value of the unit and its common element interest. On acquisition, the condemned unit's allocated interests are reduced in proportion to the reduction in the size of the unit, or on any other basis specified by the declaration, and the portion of the allocated interests divested from the partially acquired unit are automatically reallocated to that unit and the remaining units in proportion to the respective allocated interests of those units before the taking, with the partially acquired unit participating in the reallocation on the basis of its reduced allocated interests.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scA/s82.007/c">
<num value="c">(c)</num>
<content>If part of the common elements is acquired by condemnation, the award must be paid to the association, as trustee for the unit owners, and to persons holding liens on the condemned property, as their interests may appear. The association shall divide any portion of the award not used for any restoration or repair of the remaining common elements among the unit owners in proportion to their respective common element interests before the taking, but the portion of the award attributable to the acquisition of a limited common element must be equally divided among the owners of the units to which that limited common element was allocated at the time of acquisition, or in any manner the declaration provides.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scA/s82.007/d">
<num value="d">(d)</num>
<content>The court decree shall be recorded in each county in which any portion of the condominium is located.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scA/s82.008">
<num value="82.008">Sec. 82.008.</num>
<heading>VENUE</heading>
<content>Venue for an action to enforce a right or obligation arising under the declaration, bylaws, or rules of the association is in each county in which any part of the condominium is located.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t7/c82/scB">
<num value="B">SUBCHAPTER B.</num>
<heading>CREATION, ALTERATION, AND TERMINATION OF CONDOMINIUMS</heading>
<section identifier="/us/tx/pr/t7/c82/scB/s82.051">
<num value="82.051">Sec. 82.051.</num>
<heading>CREATION OF CONDOMINIUM</heading>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.051/a">
<num value="a">(a)</num>
<content>A condominium may be created under this chapter only by recording a declaration executed in the same manner as a deed by all persons who have an interest in the real property that will be conveyed to unit owners and by every lessor of a lease the expiration or termination of which will terminate the condominium or reduce its size. The declaration shall be recorded in each county in which any portion of the condominium is located.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.051/b">
<num value="b">(b)</num>
<content>A declarant may not convey an interest in a unit until each holder of a mortgage on the unit immediately before conveyance has executed a consent to declaration, and the consent has been recorded, or is recorded concurrently with the conveyance, as part of the declaration or an amendment to the declaration.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.051/c">
<num value="c">(c)</num>
<content>If a recorded declaration is not properly executed, that defect may be cured by a subsequent execution conforming to Subsection (a). After an execution defect is cured by authority of this subsection, the declaration is retroactively effective on the date it was first recorded.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.051/d">
<num value="d">(d)</num>
<content>A county clerk shall, without prior approval from any other authority, record declarations and amendments to declarations in the real property records and record condominium plats or plans in the real property records or in books maintained for that purpose. If a county clerk maintains a book for the condominium plat records, the book shall be the same size and type as the book for recording subdivision plats.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.051/e">
<num value="e">(e)</num>
<content>This chapter does not affect or diminish the rights of municipalities and counties to approve plats of subdivisions and enforce building codes as may be authorized or required by law.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.051/f">
<num value="f">(f)</num>
<content>A person may not file for record or have recorded in the county clerk's office a plat, replat, or amended plat or replat of a condominium unless the plat, replat, or amended plat or replat has attached to it an original tax certificate from each taxing unit with jurisdiction of the real property indicating that no delinquent ad valorem taxes are owed on the real property. If the tax certificate for a taxing unit does not cover the preceding year, the plat, replat, or amended plat or replat must also have attached to it a tax receipt issued by the collector for the taxing unit indicating that the taxes imposed by the taxing unit for the preceding year have been paid. This subsection does not apply if a taxing unit acquired the condominium for public use through eminent domain proceedings or voluntary sale.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.051/g">
<num value="g">(g)</num>
<content>This chapter does not permit development of a subdivision golf course, as defined by Section 212.0155(b), Local Government Code, without a plat if the plat is otherwise required by applicable law. A municipality may require as a condition to the development of a previously platted or unplatted subdivision golf course that the subdivision golf course be platted or replatted.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 289 (H.B. 989), Sec. 2, eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 1092 (H.B. 3232), Sec. 2, eff. June 15, 2007.
Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 27.001(77), eff. September 1, 2009.
Acts 2025, 89th Leg., R.S., Ch. 574 (H.B. 2025), Sec. 2, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scB/s82.052">
<num value="82.052">Sec. 82.052.</num>
<heading>UNIT BOUNDARIES</heading>
<chapeau>Except as otherwise provided by the declaration or plat:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.052/1">
<num value="1">(1)</num>
<content>if walls, floors, or ceilings are designated as boundaries of a unit, then all lath, furring, wallboard, plasterboard, plaster, paneling, tiles, wallpaper, paint, finished flooring, and any other materials constituting part of the finished surfaces are a part of the unit, and all other portions of the walls, floors, or ceilings are a part of the common elements;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.052/2">
<num value="2">(2)</num>
<content>if any chute, flue, duct, wire, conduit, bearing wall, bearing column, or any other fixture is partially within and partially outside the designated boundaries of a unit, then the portion serving only that unit is a limited common element allocated solely to that unit, and the portion serving more than one unit or the common elements is a part of the general common elements;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.052/3">
<num value="3">(3)</num>
<content>subject to Subdivision (2), the spaces, interior partitions, and other fixtures and improvements within the boundaries of a unit are a part of the unit; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.052/4">
<num value="4">(4)</num>
<content>shutters, awnings, window boxes, doorsteps, stoops, porches, balconies, patios, and exterior doors and windows or other fixtures designed to serve a single unit, but located outside the unit's boundaries, are limited common elements allocated exclusively to that unit.</content>
</paragraph>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scB/s82.053">
<num value="82.053">Sec. 82.053.</num>
<heading>CONSTRUCTION AND VALIDITY OF DECLARATION AND BYLAWS</heading>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.053/a">
<num value="a">(a)</num>
<content>The provisions of the declaration and bylaws are severable.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.053/b">
<num value="b">(b)</num>
<content>The rule against perpetuities may not be applied to defeat any provision of the declaration, bylaws, or rules of the association.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.053/c">
<num value="c">(c)</num>
<content>If there is a conflict between the provisions of the declaration and the bylaws, the declaration prevails except to the extent the declaration is inconsistent with this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.053/d">
<num value="d">(d)</num>
<content>Title to a unit and common elements is not made unmarketable or otherwise affected by a provision of unrecorded bylaws or by reason of an insubstantial failure of the declaration to comply with this chapter. Whether a substantial failure impairs marketability is not affected by this chapter.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scB/s82.054">
<num value="82.054">Sec. 82.054.</num>
<heading>DESCRIPTION OF UNITS</heading>
<chapeau>A description of a unit is a sufficient legal description of the unit and all rights, obligations, and interests appurtenant to the unit that were created by the declaration or bylaws if the description contains:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.054/1">
<num value="1">(1)</num>
<content>the name of the condominium;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.054/2">
<num value="2">(2)</num>
<content>the recording data for the declaration, including any amendments, plats, and plans;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.054/3">
<num value="3">(3)</num>
<content>the county in which the condominium is located; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.054/4">
<num value="4">(4)</num>
<content>the identifying number of the unit.</content>
</paragraph>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scB/s82.055">
<num value="82.055">Sec. 82.055.</num>
<heading>CONTENTS OF DECLARATION FOR ALL CONDOMINIUMS</heading>
<chapeau>The declaration for a condominium must contain:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.055/1">
<num value="1">(1)</num>
<content>the name of the condominium, which must include the word "condominium" or be followed by the words "a condominium" or a phrase that includes the word "condominium," and the name of the association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.055/2">
<num value="2">(2)</num>
<content>the name of each county in which any part of the condominium is located;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.055/3">
<num value="3">(3)</num>
<content>a legally sufficient description of the real property included in the condominium;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.055/4">
<num value="4">(4)</num>
<content>a description of the boundaries of each unit created by the declaration, including the unit's identifying number;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.055/5">
<num value="5">(5)</num>
<content>a statement of the maximum number of units that the declarant reserves the right to create;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.055/6">
<num value="6">(6)</num>
<content>a description of the limited common elements other than those listed in Sections 82.052(2) and (4);</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.055/7">
<num value="7">(7)</num>
<content>a description of any real property, except real property subject to development rights, that may be allocated subsequently as limited common elements, together with a statement that the property may be so allocated;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.055/8">
<num value="8">(8)</num>
<content>an allocation to each unit of its allocated interests;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.055/9">
<num value="9">(9)</num>
<content>any restrictions on use, occupancy, or alienation of the units;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.055/10">
<num value="10">(10)</num>
<content>a description of and the recording data for recorded easements and licenses appurtenant to or included in the condominium or to which any portion of the condominium is or may become subject by reservation in the declaration;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.055/11">
<num value="11">(11)</num>
<content>the method of amending the declaration;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.055/12">
<num value="12">(12)</num>
<content>a plat or plan or the recording data of a plat or plan that has been recorded in the real property or condominium plat records;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.055/13">
<num value="13">(13)</num>
<content>a statement of the association's obligation under Section 82.111(i) to rebuild or repair any part of the condominium after a casualty or any other disposition of the proceeds of a casualty insurance policy;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.055/14">
<num value="14">(14)</num>
<content>a description of any development rights and other special declarant rights reserved by the declarant, together with a legally sufficient description of the real property to which each of those rights applies, and a time limit within which each of those rights must be exercised;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.055/15">
<num value="15">(15)</num>
<chapeau>if any development right may be exercised with respect to different parcels of real property at different times, a statement to that effect, together with:</chapeau>
<subparagraph identifier="/us/tx/pr/t7/c82/scB/s82.055/A">
<num value="A">(A)</num>
<content>either a statement fixing the boundaries of those portions and regulating the order in which those portions may be subjected to the exercise of each development right, or a statement that no assurances are made in those regards; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t7/c82/scB/s82.055/B">
<num value="B">(B)</num>
<content>a statement as to whether, if any development right is exercised in any portion of the real property subject to that development right, that development right must be exercised in all or in any other portion of the remainder of that real property;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.055/16">
<num value="16">(16)</num>
<content>all matters required by this chapter to be stated in the declaration; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.055/17">
<num value="17">(17)</num>
<content>any other matters the declarant considers appropriate.</content>
</paragraph>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scB/s82.056">
<num value="82.056">Sec. 82.056.</num>
<heading>LEASEHOLD CONDOMINIUMS</heading>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.056/a">
<num value="a">(a)</num>
<chapeau>Any lease the expiration or termination of which may terminate the condominium or reduce its size must be recorded. The lessor shall sign the declaration, and the declaration must state:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.056/1">
<num value="1">(1)</num>
<content>the recording data for the lease;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.056/2">
<num value="2">(2)</num>
<content>the date on which the lease is scheduled to expire;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.056/3">
<num value="3">(3)</num>
<content>a legally sufficient description of the real property subject to the lease;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.056/4">
<num value="4">(4)</num>
<content>any right of the unit owners to redeem the reversion and the manner in which the unit owners may exercise that right, or a statement that the unit owners do not have that right;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.056/5">
<num value="5">(5)</num>
<content>any right of the unit owners to remove improvements within a reasonable time after the expiration or termination of the lease, or a statement that the unit owners do not have that right; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.056/6">
<num value="6">(6)</num>
<content>any right of the unit owners to renew the lease and the conditions of renewal, or a statement that the unit owners do not have that right.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.056/b">
<num value="b">(b)</num>
<content>After the declaration for a leasehold condominium is recorded, neither the lessor nor the lessor's successor in interest may terminate the leasehold interest of a unit owner who makes timely payment of the unit owner's share of the rent and otherwise complies with all covenants that, if violated, would entitle the lessor to terminate the lease. A unit owner's leasehold interest is not affected by failure of any other person to pay rent or fulfill any other covenant.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.056/c">
<num value="c">(c)</num>
<content>Acquisition of the leasehold interest of a unit owner by the owner of the reversion or remainder does not merge the leasehold and fee simple interests unless the leasehold interests of all unit owners subject to that reversion or remainder are acquired.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.056/d">
<num value="d">(d)</num>
<content>If the expiration or termination of a lease decreases the number of units in a condominium, the allocated interests shall be reallocated as though those units had been taken by condemnation unless otherwise provided by the declaration. Reallocation shall be confirmed by an amendment to the declaration prepared, executed, and recorded by the association.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scB/s82.057">
<num value="82.057">Sec. 82.057.</num>
<heading>ALLOCATION OF COMMON ELEMENT INTERESTS, VOTES, AND COMMON EXPENSE LIABILITIES</heading>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.057/a">
<num value="a">(a)</num>
<content>The declaration shall allocate a fraction or percentage of undivided interests in the common elements and in the common expenses of the association, and a portion of the votes in the association, to each unit and state the formulas used to establish those allocations. These allocations may not discriminate in favor of units owned by a declarant.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.057/b">
<num value="b">(b)</num>
<content>If units may be added to or withdrawn from the condominium, the declaration must state the formulas to be used to reallocate the allocated interests among all units included in the condominium after the addition or withdrawal.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.057/c">
<num value="c">(c)</num>
<chapeau>The declaration may provide:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.057/1">
<num value="1">(1)</num>
<content>that different allocations of votes must be made to the units on particular matters specified in the declaration; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.057/2">
<num value="2">(2)</num>
<content>for class voting on specified issues affecting the class if necessary to protect valid interests of the class.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.057/d">
<num value="d">(d)</num>
<content>A declarant may not use cumulative or class voting to evade any limitation imposed on declarants by this chapter. Units may not constitute a class because the units are owned by a declarant.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.057/e">
<num value="e">(e)</num>
<content>Except for minor variations due to rounding, the sums of the undivided interests in the common elements and of the common expense liabilities allocated at any time to all the units shall each equal one if stated as fractions or 100 percent if stated as percentages. If a discrepancy exists between an allocated interest and the result derived from application of the pertinent formula, the allocated interest prevails.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.057/f">
<num value="f">(f)</num>
<content>The common elements are not subject to partition. Any purported conveyance, judicial sale, or other voluntary or involuntary transfer of an undivided interest in the common elements without the unit to which that interest is allocated is void.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scB/s82.058">
<num value="82.058">Sec. 82.058.</num>
<heading>LIMITED COMMON ELEMENTS</heading>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.058/a">
<num value="a">(a)</num>
<content>The limited common elements and the provisions of the declaration relating to the right to use the limited common elements may not be altered without the consent of each affected unit owner and the owner's first lien mortgagee.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.058/b">
<num value="b">(b)</num>
<content>Except as otherwise provided by the declaration, a limited common element may be reallocated by an amendment to the declaration, executed by the unit owners between or among whose units the reallocation is made. The persons executing the amendment shall deliver it to the association, which shall record it at the expense of the reallocating unit owners.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.058/c">
<num value="c">(c)</num>
<content>A common element not previously allocated as a limited common element may not be allocated except pursuant to the declaration made in accordance with Section 82.055(7). The allocation shall be made by amendment to the declaration.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scB/s82.059">
<num value="82.059">Sec. 82.059.</num>
<heading>PLATS AND PLANS</heading>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.059/a">
<num value="a">(a)</num>
<content>Plats and plans are a part of the declaration and may be recorded as a part of the declaration or separately. Each plat or plan must be legible and contain a certification that the plat or plan contains all information required by this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.059/b">
<num value="b">(b)</num>
<chapeau>Each plat must show:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.059/1">
<num value="1">(1)</num>
<content>the name and a survey or general schematic map of the entire condominium;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.059/2">
<num value="2">(2)</num>
<content>the location and dimensions of all real property not subject to development rights, or subject only to the development right to withdraw, and the location and dimensions of all existing improvements within that real property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.059/3">
<num value="3">(3)</num>
<content>a legally sufficient description of any real property subject to development rights, labeled to identify the rights applicable to each parcel;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.059/4">
<num value="4">(4)</num>
<content>the extent of any encroachments by or on any portion of the condominium;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.059/5">
<num value="5">(5)</num>
<content>to the extent feasible, a legally sufficient description of all easements serving or burdening any portion of the condominium, and the location of any underground utility line that is actually known by the declarant at the time of filing the declaration to have been constructed outside a recorded easement;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.059/6">
<num value="6">(6)</num>
<content>the location and dimensions of any vertical unit boundaries not shown or projected on recorded plans and the unit's identifying number;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.059/7">
<num value="7">(7)</num>
<content>the location of horizontal unit boundaries, if any, with reference to established data, unless described in the declaration or shown or projected on recorded plans, and the unit's identifying number;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.059/8">
<num value="8">(8)</num>
<content>a legally sufficient description of any real property in which the unit owners will own only an estate for years, labeled as "leasehold real property";</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.059/9">
<num value="9">(9)</num>
<content>the distance between noncontiguous parcels of real property constituting the condominium;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.059/10">
<num value="10">(10)</num>
<content>the location and dimensions of limited common elements, other than those described by Sections 82.052(2) and (4);</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.059/11">
<num value="11">(11)</num>
<content>in the case of real property not subject to development rights, all other matters required by law on land surveys; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.059/12">
<num value="12">(12)</num>
<content>the distance and bearings locating each building from all other buildings and from at least one boundary line of the real property constituting the condominium.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.059/c">
<num value="c">(c)</num>
<content>A plat may also show the intended location and dimensions of a contemplated improvement to be constructed anywhere within the condominium, which must be labeled either "MUST BE BUILT" or "NEED NOT BE BUILT."</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.059/d">
<num value="d">(d)</num>
<chapeau>To the extent not shown on the plats, plans must show:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.059/1">
<num value="1">(1)</num>
<content>the location and dimensions of the vertical boundaries of each unit, and the unit's identifying number;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.059/2">
<num value="2">(2)</num>
<content>the horizontal unit boundaries, if any, with reference to established data, unless described in the declaration, and the unit's identifying number; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.059/3">
<num value="3">(3)</num>
<content>any units, appropriately identified, in which the declarant has reserved the right to create additional units or common elements.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.059/e">
<num value="e">(e)</num>
<content>Unless the declaration provides otherwise, the horizontal boundaries of part of a unit located outside a building have the same elevation as the horizontal boundaries of the inside part and need not be depicted on the plats and plans. Interior walls and partitions within a unit need not be included in the plats or plans.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.059/f">
<num value="f">(f)</num>
<content>On exercising any development right, the declarant shall record either new plats and plans necessary to conform to the requirements of this section or new certifications of plats and plans previously recorded if those plats and plans otherwise conform to the requirements of this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.059/g">
<num value="g">(g)</num>
<content>An independent licensed surveyor or engineer shall certify at least one plat, whether contained in one or more pages, showing all perimeter land boundaries of the condominium, except for additional real property, and showing the locations on the ground of all buildings labeled "MUST BE BUILT" in relation to land boundaries. Certification of any other plat or plan required by this chapter shall be made by an independent licensed architect, surveyor, or engineer.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 826 (H.B. 2569), Sec. 1, eff. September 1, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scB/s82.060">
<num value="82.060">Sec. 82.060.</num>
<heading>EXERCISE OF DEVELOPMENT RIGHT</heading>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.060/a">
<num value="a">(a)</num>
<content>To exercise a development right, the declarant must prepare, execute, and record an amendment to the declaration and record new plats and plans for that real property. The declarant is the unit owner of any units created. The amendment to the declaration must assign an identifying number to each new unit created and, except for subdivision or conversion of units described by Subsection (b), reallocate the allocated interest among all units. The amendment must describe any limited common elements created, designating the unit to which each is allocated.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.060/b">
<num value="b">(b)</num>
<content>Development rights may be reserved within any real property added to the condominium if the amendment adding the real property includes the information required by Section 82.055 or 82.056, as appropriate, and the plats and plans include the information required by Section 82.059(b). This provision does not extend the time limit on the exercise of development rights imposed by the declaration. Real property to be added is not part of a condominium or subject to a declaration until the declaration is amended to make the additional real property part of the condominium.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.060/c">
<num value="c">(c)</num>
<chapeau>Whenever a declarant exercises a development right to subdivide or convert a unit previously created into additional units, common elements, or both:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.060/1">
<num value="1">(1)</num>
<content>if the declarant converts the unit entirely to common elements, the amendment to the declaration must reallocate all the allocated interests of the unit among the other units as if the unit had been taken by condemnation; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.060/2">
<num value="2">(2)</num>
<content>if the declarant subdivides the unit into two or more units, whether or not any part of the unit is converted into common elements, the amendment to the declaration must reallocate all the allocated interests of the unit among the units created by the subdivision in any reasonable manner prescribed by the declarant.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.060/d">
<num value="d">(d)</num>
<chapeau>If the declaration provides that all or a portion of the real property is subject to the development right of withdrawal:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.060/1">
<num value="1">(1)</num>
<content>if all the real property is subject to withdrawal, and the declaration does not describe separate portions of real property subject to that right, none of the real property may be withdrawn after a unit has been conveyed to a purchaser; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.060/2">
<num value="2">(2)</num>
<content>if a portion or portions are subject to withdrawal, no portion may be withdrawn after a unit in that portion has been conveyed to a purchaser.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scB/s82.061">
<num value="82.061">Sec. 82.061.</num>
<heading>ALTERATIONS OF UNITS</heading>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.061/a">
<num value="a">(a)</num>
<chapeau>Subject to the provisions of the declaration and other provisions of law, a unit owner:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.061/1">
<num value="1">(1)</num>
<content>may make improvements or alterations to the owner's unit that do not impair the structural integrity or mechanical systems or lessen the support of any portion of the condominium;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.061/2">
<num value="2">(2)</num>
<content>may not change the appearance of the common elements or the exterior appearance of a unit or any other portion of the condominium without prior written permission of the association; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.061/3">
<num value="3">(3)</num>
<content>after acquiring an adjoining unit or an adjoining part of an adjoining unit, with the prior written approval of the association, may remove, alter, and create apertures in an intervening partition, even if the partition in whole or in part is a common element, if those acts do not impair the structural integrity or mechanical systems or lessen the support of any portion of the condominium.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.061/b">
<num value="b">(b)</num>
<content>Removal of partitions or creation of apertures under Subsection (a)(3) is not an alteration of boundaries.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scB/s82.062">
<num value="82.062">Sec. 82.062.</num>
<heading>RELOCATION OF BOUNDARIES BETWEEN ADJOINING UNITS</heading>
<content>Subject to the declaration, the boundaries between adjoining units may be relocated by an amendment to the declaration on written application to the association by the owners of those units. If the owners of the adjoining units have specified a reallocation between their units of their allocated interests, the application must state the proposed reallocations. Unless the board determines not later than the 30th day after the date the application is received that the reallocation is unreasonable, the association shall prepare an amendment that identifies the units involved, states the reallocation, is executed by the applying unit owners, and contains words of conveyance between them. At the expense of the applying unit owners, the association shall prepare and record the amendment and plats or plans necessary to show the altered boundaries between adjoining units, and the units' dimensions and identifying numbers.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scB/s82.063">
<num value="82.063">Sec. 82.063.</num>
<heading>SUBDIVISION OF UNITS</heading>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.063/a">
<num value="a">(a)</num>
<content>If the declaration expressly permits, a unit may be subdivided into two or more units. Subject to the declaration, on written application of a unit owner to subdivide a unit and after payment by the unit owner of the cost of preparing and recording amendments and plats, the association shall prepare, execute, and record an amendment to the declaration, including the plats and plans, subdividing the unit.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.063/b">
<num value="b">(b)</num>
<content>The amendment to the declaration must be executed by the owner of the unit to be subdivided, assign an identifying number to each unit created, and reallocate the allocated interests formerly allocated to the subdivided unit to the new units in any reasonable manner prescribed by the owner of the subdivided unit.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scB/s82.064">
<num value="82.064">Sec. 82.064.</num>
<heading>EASEMENT FOR ENCROACHMENTS</heading>
<content>To the extent that a unit or common element encroaches on another unit or common element, a valid easement for the encroachment exists. The easement does not relieve a unit owner of liability in case of the owner's wilful misconduct nor relieve a declarant or any other person of liability for failure to adhere to the plats and plans.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scB/s82.065">
<num value="82.065">Sec. 82.065.</num>
<heading>USE FOR SALES PURPOSES</heading>
<content>The declaration may permit a declarant to maintain sales, leasing, or management offices and models in units or on common elements in the condominium if the declaration specifies the rights of a declarant with regard to the number, size, location, and relocation of the offices and models. If the declaration fails to expressly permit an office or model, a declarant may maintain no more than one unit as a model and no more than one unit as an office for sales, leasing, and management purposes at any one time. A sales, leasing, or management office or model not designated as a unit by the declaration is a common element and is subject to the exclusive use of a declarant until the declarant ceases to be a unit owner or until the declarant no longer uses the office or model for such purposes, whichever occurs earlier. A declarant may modify the exterior of a sales, leasing, or management office to conform to the aesthetic exterior plan of the condominium. A declarant who ceases to be a unit owner ceases to have any rights with regard to an office or model unless it is removed within a reasonable time from the condominium in accordance with a right to remove reserved in the declaration. Subject to limitations in the declaration, a declarant may maintain signs on the common elements that advertise the condominium for sale or lease. This section is subject to local ordinances and other state law.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scB/s82.066">
<num value="82.066">Sec. 82.066.</num>
<heading>EASEMENT RIGHTS</heading>
<content>Subject to the declaration, a declarant has an easement through the common elements as may be reasonably necessary for discharging the declarant's obligations or exercising special declarant rights whether arising under this chapter or reserved by the declaration.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scB/s82.067">
<num value="82.067">Sec. 82.067.</num>
<heading>AMENDMENT OF DECLARATION</heading>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.067/a">
<num value="a">(a)</num>
<chapeau>Except as provided by Subsection (b), a declaration, including the plats and plans, may be amended only by vote or agreement of unit owners to which at least 67 percent of the votes in the association are allocated, or any larger majority the declaration specifies. A declaration may specify a smaller number only if all of the units are restricted exclusively to nonresidential use. An amendment to a declaration may be adopted:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.067/1">
<num value="1">(1)</num>
<content>by written ballot that states the exact wording or substance of the amendment and that specifies the date by which a ballot must be received to be counted;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.067/2">
<num value="2">(2)</num>
<content>at a meeting of the members of the association after written notice of the meeting has been delivered to an owner of each unit stating that a purpose of the meeting is to consider an amendment to the declaration; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.067/3">
<num value="3">(3)</num>
<content>by any method permitted by the declaration.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.067/b">
<num value="b">(b)</num>
<chapeau>The amendment procedures of this section do not apply to amendments that may be executed by:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.067/1">
<num value="1">(1)</num>
<content>a declarant under Section 82.051(c), 82.059(f), or 82.060 or Subsection (f);</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.067/2">
<num value="2">(2)</num>
<content>the association under Section 82.007, 82.056(d), 82.058(c), 82.062, or 82.063 or Subsection (f); or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.067/3">
<num value="3">(3)</num>
<content>certain unit owners under Section 82.058(b), 82.062, 82.063(b), or 82.068(b).</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.067/c">
<num value="c">(c)</num>
<content>An action to challenge the validity of an amendment adopted by the association under this section must be brought before the first anniversary of the date the amendment is recorded.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.067/d">
<num value="d">(d)</num>
<content>To be effective, an amendment to the declaration must be recorded in each county in which any portion of the condominium is located.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.067/e">
<num value="e">(e)</num>
<content>Except as permitted or required by this chapter, an amendment may not create or increase special declarant rights, increase the number of units, change the boundaries of a unit, alter or destroy a unit or limited common element, change a unit's allocated interest, or change the use restrictions on a unit unless the amendment is approved by 100 percent of the votes in the association. Except as agreed to by the declarant, an amendment may not increase or otherwise modify the obligations imposed by a declaration on a declarant, or reduce or otherwise modify the rights granted by a declaration to a declarant, including special declarant rights.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.067/f">
<num value="f">(f)</num>
<content>If permitted by the declaration, the board or the declarant, if the declarant owns a unit that has never been occupied, may without a vote of the unit owners or approval of the association amend the declaration in any manner necessary to meet the requirements of the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Federal Housing Administration, or the Veterans Administration.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.067/g">
<num value="g">(g)</num>
<content>Amendments to the declaration required by this chapter to be recorded by the association must be prepared, executed, recorded, and certified by an officer of the association designated for that purpose or, in the absence of designation, by the president of the association.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.067/h">
<num value="h">(h)</num>
<chapeau>An association may amend the declaration to authorize the board:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.067/1">
<num value="1">(1)</num>
<content>to bring an action to evict a tenant of a unit owner for the tenant's violation of the declaration, bylaws, or rules of the association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.067/2">
<num value="2">(2)</num>
<content>to bring an action to evict a tenant of a unit owner who fails to pay the association for the cost of repairs to common elements damaged substantially by the owner's tenant; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.067/3">
<num value="3">(3)</num>
<content>to collect rents from a tenant of a unit owner who is at least 60 days' delinquent in the payment of any amount due to the association.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scB/s82.0675">
<num value="82.0675">Sec. 82.0675.</num>
<heading>RESTRICTION RELATING TO CLUB MEMBERSHIP</heading>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.0675/a">
<num value="a">(a)</num>
<content>A provision of a declaration or recorded contract that requires owners of units in a condominium to maintain a membership in a specified private club is not valid after the 10th anniversary of the date the provision is recorded or renewed unless renewed after the ninth anniversary of that date in the manner provided by the declaration or recorded contract for amending the declaration or recorded contract and the text of the renewed provision is filed in the real property records of each county in which the condominium is located.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.0675/b">
<num value="b">(b)</num>
<content>A provision described by this section may not be enacted or renewed as a bylaw by the unit owners' association.</content>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 1101, Sec. 2, eff. Sept. 1, 2003.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scB/s82.068">
<num value="82.068">Sec. 82.068.</num>
<heading>TERMINATION OF CONDOMINIUM</heading>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.068/a">
<num value="a">(a)</num>
<content>Unless the declaration provides otherwise and except for a taking of all the units by condemnation, a condominium may be terminated only by the agreement of 100 percent of the votes in the association and each holder of a deed of trust or vendor's lien on a unit. The declaration may not allow a termination by less than 80 percent of the votes in the association if any unit is restricted exclusively to residential uses.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.068/b">
<num value="b">(b)</num>
<content>An agreement of unit owners to terminate a condominium must be evidenced by the execution or ratification of a termination agreement by the requisite number of unit owners. If, pursuant to a termination agreement, the real property constituting the condominium is to be sold following termination, the termination agreement must set forth the terms of the sale. To be effective, a termination agreement and all ratifications of the agreement must be recorded in each county in which a portion of the condominium is located.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.068/c">
<num value="c">(c)</num>
<content>The association, on behalf of the unit owners, may contract for the sale of real property in the condominium, but the contract is not binding on the unit owners until it is approved under Subsections (a) and (b). If the real property constituting the condominium is to be sold following termination, on termination title to that real property vests in the association as trustee for the holders of all interests in the units, and the association has all powers necessary and appropriate to effect the sale, including the power to convey the interests of nonconsenting owners. Until the sale has been concluded and the proceeds distributed, the association shall continue to exist and retains the powers it had before termination. Proceeds of the sale must be distributed to unit owners and lienholders as their interests may appear, in proportion to the respective interests of unit owners as provided by Subsection (f). Unless the termination agreement specifies differently, as long as the association holds title to the real property, each unit owner and the owner's successors in interest have an exclusive right to occupy the portion of the real property that formerly constituted the owner's unit. During that period of occupancy a unit owner and the owner's successors in interest remain liable for all assessments and other obligations imposed on unit owners by this chapter or the declaration.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.068/d">
<num value="d">(d)</num>
<content>If the real property constituting the condominium is not to be sold following termination, on termination title to the real property vests in the unit owners as tenants in common in proportion to their respective interests, and liens on the units shift accordingly. While the tenancy in common exists, a unit owner and the owner's successors in interest have an exclusive right to occupy the portion of the real property that formerly constituted the owner's unit.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.068/e">
<num value="e">(e)</num>
<content>Following termination of the condominium, and after payment of or provision for the claims of the association's creditors, the assets of the association shall be distributed to unit owners in proportion to their respective interests. The proceeds of sale described by Subsection (c) and held by the association as trustee are not assets of the association.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.068/f">
<num value="f">(f)</num>
<content>The interest of a unit owner referred to in Subsections (c), (d), and (e) is, except as provided by Subsection (g), the fair market value of the owner's unit, limited common elements, and common element interest immediately before the termination, as determined by one or more independent appraisers selected by the association. The decision of the independent appraisers shall be distributed to the unit owners and becomes final unless disapproved by unit owners of units to which 25 percent of the votes in the association are allocated not later than the 30th day after the date of distribution. The proportion of a unit owner's interest to that of all unit owners is determined by dividing the fair market value of the unit owner's unit and common element interest by the total fair market values of all the units and common elements.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.068/g">
<num value="g">(g)</num>
<content>If a unit or a limited common element is destroyed to the extent that an appraisal of the fair market value before the destruction cannot be made, the interest of a unit owner is the owner's common element interest immediately before the termination.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.068/h">
<num value="h">(h)</num>
<content>Foreclosure or enforcement of a lien or encumbrance against the entire condominium does not of itself terminate the condominium, and foreclosure or enforcement of a lien or encumbrance against a portion of the condominium does not withdraw that portion from the condominium, unless the portion is withdrawable real property or unless the mortgage being foreclosed was recorded before the date the declaration was recorded and the mortgagee did not consent in writing to the declaration.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.068/i">
<num value="i">(i)</num>
<content>By agreement of the same percentage of unit owners that is required to terminate the condominium, the unit owners may rescind a termination agreement and reinstate the declaration in effect immediately before the election to terminate. To be effective, the rescission agreement must be in writing, executed by the unit owners who desire to rescind, and recorded in each county in which any portion of the condominium is located.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scB/s82.069">
<num value="82.069">Sec. 82.069.</num>
<heading>RIGHTS OF SECURED LENDERS</heading>
<chapeau>The declaration may require that all or a specified number or percentage of the mortgagees or beneficiaries of deeds of trust encumbering the units approve specified actions of the unit owners or the association as a condition to the effectiveness of those actions, but a requirement for approval may not operate to:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.069/1">
<num value="1">(1)</num>
<content>deny or delegate control over the general administrative affairs of the association by the unit owners or the board; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scB/s82.069/2">
<num value="2">(2)</num>
<chapeau>prevent the association or the board from:</chapeau>
<subparagraph identifier="/us/tx/pr/t7/c82/scB/s82.069/A">
<num value="A">(A)</num>
<content>commencing, intervening in, or settling any litigation or proceeding; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t7/c82/scB/s82.069/B">
<num value="B">(B)</num>
<content>receiving and distributing insurance proceeds under Section 82.111.</content>
</subparagraph>
</paragraph>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scB/s82.070">
<num value="82.070">Sec. 82.070.</num>
<heading>MEETING AT WHICH AMENDMENTS MAY BE ADOPTED</heading>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.070/a">
<num value="a">(a)</num>
<content>An association or a board may not meet to adopt an amendment or other change to the declaration, articles of incorporation, bylaws, or rules of the association unless the association or board has given to each unit owner a document showing the specific amendment or other change that would be made to the declaration, articles of incorporation, bylaws, or rules.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scB/s82.070/b">
<num value="b">(b)</num>
<content>The information described by Subsection (a) must be given to each unit owner after the 20th day but before the 10th day preceding the date of the meeting. The information is considered to have been given to a unit owner on the date the information is personally delivered to the unit owner, as shown by a receipt signed by the unit owner, or on the date shown by the postmark on the information after it is deposited in the United States mail with a proper address and postage paid.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 956, Sec. 2, eff. Jan. 1, 1998.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t7/c82/scC">
<num value="C">SUBCHAPTER C.</num>
<heading>CONDOMINIUM MANAGEMENT</heading>
<section identifier="/us/tx/pr/t7/c82/scC/s82.101">
<num value="82.101">Sec. 82.101.</num>
<heading>ORGANIZATION OF UNIT OWNERS' ASSOCIATION</heading>
<content>A unit owners' association must be organized as a profit or nonprofit corporation. The declarant may not convey a unit until the secretary of state has issued a certificate of formation under the Texas Corporation Law. The membership of the association at all times consists exclusively of all the unit owners or, following termination of the condominium, all former unit owners entitled to distribution of proceeds, or the owners' heirs, successors, or assigns.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.
Amended by:
Acts 2025, 89th Leg., R.S., Ch. 79 (S.B. 2629), Sec. 1, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scC/s82.102">
<num value="82.102">Sec. 82.102.</num>
<heading>POWERS OF UNIT OWNERS' ASSOCIATION</heading>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.102/a">
<num value="a">(a)</num>
<chapeau>Unless otherwise provided by the declaration, the association, acting through its board, may:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.102/1">
<num value="1">(1)</num>
<content>adopt and amend bylaws;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.102/2">
<num value="2">(2)</num>
<content>adopt and amend budgets for revenues, expenditures, and reserves, and collect assessments for common expenses from unit owners;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.102/3">
<num value="3">(3)</num>
<content>hire and terminate managing agents and other employees, agents, and independent contractors;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.102/4">
<num value="4">(4)</num>
<content>institute, defend, intervene in, settle, or compromise litigation or administrative proceedings in its own name on behalf of itself or two or more unit owners on matters affecting the condominium;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.102/5">
<num value="5">(5)</num>
<content>make contracts and incur liabilities relating to the operation of the condominium;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.102/6">
<num value="6">(6)</num>
<content>regulate the use, maintenance, repair, replacement, modification, and appearance of the condominium;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.102/7">
<num value="7">(7)</num>
<content>adopt and amend rules regulating the use, occupancy, leasing or sale, maintenance, repair, modification, and appearance of units and common elements, to the extent the regulated actions affect common elements or other units;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.102/8">
<num value="8">(8)</num>
<content>cause additional improvements to be made as a part of the common elements;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.102/9">
<num value="9">(9)</num>
<content>acquire, hold, encumber, and convey in its own name any right, title, or interest to real or personal property, except common elements of the condominium;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.102/10">
<num value="10">(10)</num>
<content>grant easements, leases, licenses, and concessions through or over the common elements;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.102/11">
<num value="11">(11)</num>
<content>impose and receive payments, fees, or charges for the use, rental, or operation of the common elements and for services provided to unit owners;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.102/12">
<num value="12">(12)</num>
<content>impose interest and late charges for late payments of assessments, returned check charges, and, if notice and an opportunity to be heard are given in accordance with Subsection (d), reasonable fines for violations of the declaration, bylaws, and rules of the association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.102/13">
<num value="13">(13)</num>
<content>adopt and amend rules regulating the collection of delinquent assessments and the application of payments;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.102/14">
<num value="14">(14)</num>
<content>adopt and amend rules regulating the termination of utility service to a unit, the owner of which is delinquent in the payment of an assessment that is used, in whole or in part, to pay the cost of that utility;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.102/15">
<num value="15">(15)</num>
<content>impose reasonable charges for preparing, recording, or copying declaration amendments, resale certificates, or statements of unpaid assessments;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.102/16">
<num value="16">(16)</num>
<content>enter a unit for bona fide emergency purposes when conditions present an imminent risk of harm or damage to the common elements, another unit, or the occupants;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.102/17">
<num value="17">(17)</num>
<content>suspend the voting privileges of or the use of certain general common elements by an owner delinquent for more than 30 days in the payment of assessments;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.102/18">
<num value="18">(18)</num>
<content>purchase insurance and fidelity bonds it considers appropriate or necessary;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.102/19">
<num value="19">(19)</num>
<content>exercise any other powers conferred by the declaration or bylaws;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.102/20">
<num value="20">(20)</num>
<content>exercise any other powers that may be exercised in this state by a corporation of the same type as the association; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.102/21">
<num value="21">(21)</num>
<content>exercise any other powers necessary and proper for the government and operation of the association.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.102/b">
<num value="b">(b)</num>
<content>The declaration may not impose limitations on the power of the association to deal with the declarant that are more restrictive than the limitations imposed on the power of the association to deal with other persons.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.102/c">
<num value="c">(c)</num>
<content>To be enforceable, a bylaw or rule of the association must not be arbitrary or capricious.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.102/d">
<num value="d">(d)</num>
<chapeau>Before an association may charge the unit owner for property damage for which the unit owner is liable or levy a fine for violation of the declaration, bylaws, or rules, the association shall give to the unit owner a written notice that:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.102/1">
<num value="1">(1)</num>
<content>describes the violation or property damage and states the amount of the proposed fine or damage charge;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.102/2">
<num value="2">(2)</num>
<content>states that not later than the 30th day after the date of the notice, the unit owner may request a hearing before the board to contest the fine or damage charge; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.102/3">
<num value="3">(3)</num>
<content>allows the unit owner a reasonable time, by a specified date, to cure the violation and avoid the fine unless the unit owner was given notice and a reasonable opportunity to cure a similar violation within the preceding 12 months.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.102/e">
<num value="e">(e)</num>
<content>The association may give a copy of the notice required by Subsection (d) to an occupant of the unit. The association must give notice of a levied fine or damage charge to the unit owner not later than the 30th day after the date of levy.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.102/f">
<num value="f">(f)</num>
<chapeau>Except as provided by Subsection (g), the association by resolution of the board of directors may:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.102/1">
<num value="1">(1)</num>
<content>borrow money; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.102/2">
<num value="2">(2)</num>
<chapeau>assign as collateral for the loan authorized by the resolution:</chapeau>
<subparagraph identifier="/us/tx/pr/t7/c82/scC/s82.102/A">
<num value="A">(A)</num>
<content>the association's right to future income, including the right to receive assessments; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t7/c82/scC/s82.102/B">
<num value="B">(B)</num>
<content>the association's lien rights.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.102/g">
<num value="g">(g)</num>
<content>If a dedicatory instrument requires a vote of members of the association to borrow money or assign the association's right to future income or the association's lien rights, the loan or assignment must be approved as provided by the dedicatory instrument. The board may determine whether a vote for that purpose may be cast electronically, by absentee ballot, in person or by proxy at a meeting called for that purpose, or by written consent. If a lower approval threshold is not provided by the dedicatory instrument, approval requires the consent of owners holding 67 percent of all voting interests.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 678 (H.B. 2075), Sec. 3, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scC/s82.103">
<num value="82.103">Sec. 82.103.</num>
<heading>BOARD MEMBERS AND OFFICERS</heading>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.103/a">
<num value="a">(a)</num>
<content>Except as provided by the declaration, bylaws, or this chapter, the board shall act in all instances on behalf of the association if in the good-faith judgment of the board the action is reasonable. Each officer or member of the board is liable as a fiduciary of the unit owners for the officer's or member's acts or omissions. All acts of the association must be by and through the board unless otherwise provided by the declaration or bylaws or by law.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.103/b">
<num value="b">(b)</num>
<content>The board may not act on behalf of the association to amend the declaration except as permitted by this chapter, to terminate the condominium, to elect members of the board, or to determine the qualifications, powers and duties, or terms of office of board members. The board may fill a vacancy in its membership for the unexpired portion of a term.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.103/c">
<num value="c">(c)</num>
<content>Subject to Subsection (d), the declaration may provide for a period of declarant control of the association during which a declarant, or persons designated by the declarant, may appoint and remove the officers and members of the board. Regardless of the period provided by the declaration, a period of declarant control terminates not later than the 120th day after conveyance of 75 percent of the units that may be created to unit owners other than a declarant. Transfer of special declarant rights does not terminate the period of declarant control. A declarant may voluntarily surrender the right to appoint and remove officers and members of the board before termination of the period, but in that event the declarant may require, for the duration of the period that the declarant would otherwise control, that specified actions of the association or board be approved by the declarant before they become effective.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.103/d">
<num value="d">(d)</num>
<content>Not later than the 120th day after conveyance of 50 percent of the units that may be created to unit owners other than a declarant, not less than one-third of the members of the board must be elected by unit owners other than the declarant.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.103/e">
<num value="e">(e)</num>
<content>Not later than the termination of a period of declarant control, the unit owners shall elect a board of at least three members who need not be unit owners. The board shall elect the officers before the 31st day after the date declarant control terminates. The persons elected shall take office on election.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.103/f">
<num value="f">(f)</num>
<chapeau>An officer or director of the association is not liable to the association or any unit owner for monetary damages for an act or omission occurring in the person's capacity as an officer or director unless:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.103/1">
<num value="1">(1)</num>
<content>the officer or director breached a fiduciary duty to the association or a unit owner;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.103/2">
<num value="2">(2)</num>
<content>the officer or director received an improper benefit; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.103/3">
<num value="3">(3)</num>
<content>the act or omission was in bad faith, involved intentional misconduct, or was one for which liability is expressly provided by statute.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.103/g">
<num value="g">(g)</num>
<content>Subsection (f) does not diminish a limitation of liability provided an officer or director of the association by the declaration, bylaws, articles of incorporation of the association, or other laws.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scC/s82.104">
<num value="82.104">Sec. 82.104.</num>
<heading>TRANSFER OF SPECIAL DECLARANT RIGHTS</heading>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.104/a">
<num value="a">(a)</num>
<content>Special declarant rights created or reserved under this chapter may not be transferred except by an instrument evidencing the transfer recorded in each county in which any portion of the condominium is located. The instrument is not effective unless executed by the transferee.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.104/b">
<num value="b">(b)</num>
<content>On transfer of any special declarant right, a transferor is not relieved of an obligation or liability arising before the transfer. A transferor is not liable for an act or omission or a breach of an obligation arising from the exercise of a special declarant right by a successor declarant who is not an affiliate of the transferor.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.104/c">
<num value="c">(c)</num>
<content>Unless otherwise provided by a mortgage instrument or deed of trust, in case of foreclosure of a mortgage, tax sale, judicial sale, sale by a trustee under a deed of trust, or sale under Bankruptcy Code or receivership proceedings, of a unit owned by a declarant or of real property in a condominium subject to development rights, a person acquiring title to all the real property being foreclosed or sold may request to succeed to all special declarant rights or only to rights reserved by the declaration to maintain models, offices, and signs. The judgment or instrument conveying title may provide for transfer of only the special declarant rights requested.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.104/d">
<num value="d">(d)</num>
<chapeau>On foreclosure, tax sale, judicial sale, sale by a trustee under a deed of trust, or sale under Bankruptcy Code or receivership proceedings of all units and other real property in a condominium owned by a declarant:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.104/1">
<num value="1">(1)</num>
<content>the declarant ceases to have any special declarant rights; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.104/2">
<num value="2">(2)</num>
<content>the period of declarant control terminates unless the judgment or instrument conveying title provides for transfer of all special declarant rights held by that declarant to a successor declarant.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.104/e">
<num value="e">(e)</num>
<chapeau>The liabilities and obligations of a person who succeeds to special declarant rights are as follows:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.104/1">
<num value="1">(1)</num>
<content>a successor to a special declarant right who is an affiliate of a declarant is subject to all obligations and liabilities imposed on the transferor by this chapter or by the declaration;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.104/2">
<num value="2">(2)</num>
<content>a successor to a special declarant right, other than a successor described by Subdivision (3) or (4), who is not an affiliate of a declarant, is subject to all obligations and liabilities imposed on the transferor by this chapter or by the declaration;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.104/3">
<num value="3">(3)</num>
<content>a successor to only a right reserved by the declaration to maintain models, offices, and signs, who is not an affiliate of a declarant, may not exercise any other special declarant right, and is not subject to any liability or obligation as a declarant, except the obligation to provide a condominium information statement and any liability arising as a result; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.104/4">
<num value="4">(4)</num>
<content>a successor to all special declarant rights held by the successor's transferor who is not an affiliate of that declarant and who succeeded to those rights pursuant to a deed in lieu of foreclosure or a judgment or instrument conveying title to units under Subsection (c) may declare the person's intention in a recorded instrument to hold those rights solely for transfer to another person; thereafter, until all special declarant rights are transferred to a person acquiring title to any unit owned by the successor, or until an instrument permitting exercise of all those rights is recorded, the successor may not exercise any of those rights other than any right held by the successor's transferor to control the board as provided by Section 82.103(c) for the duration of the period of declarant control, and an attempt to exercise those rights is void; so long as a successor declarant may not exercise special declarant rights under this subdivision, the successor is not subject to any liability or obligation as a declarant other than liability for acts and omissions under Section 82.103(a).</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.104/f">
<num value="f">(f)</num>
<content>This section does not subject a successor to a special declarant right to any claims against or other obligations of a transferor declarant, other than claims and obligations arising under this chapter or the declaration.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scC/s82.105">
<num value="82.105">Sec. 82.105.</num>
<heading>TERMINATION OF CONTRACTS AND LEASES OF DECLARANT</heading>
<chapeau>An association in a residential or recreational condominium may terminate, without penalty, contracts or leases between the association and a declarant or an affiliate of a declarant if:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.105/1">
<num value="1">(1)</num>
<content>the contract is entered into by the association while controlled by the declarant;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.105/2">
<num value="2">(2)</num>
<content>the association terminates the contract or lease before the first anniversary of the date a board elected by the unit owners takes office; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.105/3">
<num value="3">(3)</num>
<content>the association gives at least 90 days' notice of its intent to terminate the contract or lease to the other party.</content>
</paragraph>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scC/s82.106">
<num value="82.106">Sec. 82.106.</num>
<heading>BYLAWS</heading>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.106/a">
<num value="a">(a)</num>
<chapeau>The administration and operation of the condominium are governed by the bylaws, which must provide for:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.106/1">
<num value="1">(1)</num>
<content>the number of members on the board and the titles of the officers of the association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.106/2">
<num value="2">(2)</num>
<content>election by the board of a president, treasurer, secretary, and any other officers the bylaws specify;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.106/3">
<num value="3">(3)</num>
<content>the qualifications, powers and duties, terms of office, and the manner of electing and removing a board member or officer and filling vacancies;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.106/4">
<num value="4">(4)</num>
<content>the powers, if any, that the board or an officer may delegate to other persons or to a managing agent;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.106/5">
<num value="5">(5)</num>
<content>the designation of officers who are authorized to prepare, execute, certify, and record amendments to the declaration on behalf of the association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.106/6">
<num value="6">(6)</num>
<content>the method of amending the bylaws; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.106/7">
<num value="7">(7)</num>
<content>the manner of notice of meetings of the association.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.106/b">
<num value="b">(b)</num>
<content>Subject to the declaration, the bylaws may provide for other matters the association considers desirable, necessary, or appropriate.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scC/s82.107">
<num value="82.107">Sec. 82.107.</num>
<heading>UPKEEP OF CONDOMINIUM</heading>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.107/a">
<num value="a">(a)</num>
<content>Except as provided by the declaration or Subsections (b) and (c), the association is responsible for maintenance, repair, and replacement of the common elements, and each unit owner is responsible for maintenance, repair, and replacement of the owner's unit. Each unit owner shall afford to the association and the other unit owners, and to their agents or employees, access through the owner's unit reasonably necessary for those purposes. If damage is inflicted on the common elements or on any unit through which access is taken, the unit owner responsible for the damage, or the association if it is responsible, is liable for the prompt repair of the damage.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.107/b">
<num value="b">(b)</num>
<content>Except as provided by the declaration, each unit owner is responsible for the cost of maintenance, repair, and replacement of any utility installation or equipment serving only the owner's unit, without regard to whether the installation or equipment is located wholly or partially outside the designated boundaries of the unit. For purposes of this subsection, utility installations and equipment include electricity, water, sewage, gas, water heaters, heating and air conditioning equipment, and television antennas.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.107/c">
<num value="c">(c)</num>
<content>Except as provided by the declaration, each unit owner is responsible for the cost of maintenance, repair, and replacement of windows and doors serving only the owner's unit.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.107/d">
<num value="d">(d)</num>
<chapeau>Unless otherwise provided by the declaration, the association may enter a unit, after giving notice to the owner and occupant of the unit, to:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.107/1">
<num value="1">(1)</num>
<content>prevent or terminate waste of water purchased by the association as a common expense; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.107/2">
<num value="2">(2)</num>
<content>perform maintenance and repairs of the condominium that, if not performed, may result in increased damage by water to components of the condominium that the association maintains.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scC/s82.108">
<num value="82.108">Sec. 82.108.</num>
<heading>MEETINGS</heading>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.108/a">
<num value="a">(a)</num>
<content>Meetings of the association must be held at least once each year. Unless the declaration provides otherwise, special meetings of the association may be called by the president, a majority of the board, or unit owners having at least 20 percent of the votes in the association.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.108/b">
<num value="b">(b)</num>
<content>Meetings of the association and board must be open to unit owners, subject to the right of the board to adjourn a meeting of the board and reconvene in closed executive session to consider actions involving personnel, pending litigation, contract negotiations, enforcement actions, matters involving the invasion of privacy of individual unit owners, or matters that are to remain confidential by request of the affected parties and agreement of the board. The general nature of any business to be considered in executive session must first be announced at the open meeting.</content>
<continuation>(b-1) A meeting of the association may be held by any method of communication, including electronic and telephonic means as provided by Section 6.002, Business Organizations Code.</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.108/c">
<num value="c">(c)</num>
<chapeau>A meeting of the board may be held by any method of communication, including electronic and telephonic means as provided by Section 6.002, Business Organizations Code, if:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.108/1">
<num value="1">(1)</num>
<content>notice of the meeting has been given in accordance with Subsection (e);</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.108/2">
<num value="2">(2)</num>
<content>each director may hear and be heard by every other director; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.108/3">
<num value="3">(3)</num>
<content>the meeting does not involve voting on a fine, damage assessment, appeal from a denial of architectural control approval, or suspension of a right of a particular association member before the member has an opportunity to attend a board meeting to present the member's position, including any defense, on the issue.</content>
<continuation>(c-1) The board may act by unanimous written consent of all the directors, without a meeting, if:</continuation>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.108/1">
<num value="1">(1)</num>
<content>the board action does not involve voting on a fine, damage assessment, appeal from a denial of architectural control approval, or suspension of a right of a particular association member before the member has an opportunity to attend a board meeting to present the member's position, including any defense, on the issue; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.108/2">
<num value="2">(2)</num>
<content>a record of the board action is filed with the minutes of board meetings.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.108/d">
<num value="d">(d)</num>
<content>Notice of a meeting of the association must be given as provided by the bylaws, or, if the bylaws do not provide for notice, notice must be given to each unit owner in the same manner in which notice is given to members of a nonprofit corporation under Sections 6.051 and 22.156, Business Organizations Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.108/e">
<num value="e">(e)</num>
<content>Notice of a meeting of the board must be given as provided by the bylaws, or, if the bylaws do not provide for notice, notice must be given to each board member in the same manner in which notice is given to members of the board of a nonprofit corporation under Sections 6.051, 6.052, and 22.217, Business Organizations Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.108/f">
<num value="f">(f)</num>
<content>An association, on the written request of a unit owner, shall inform the unit owner of the time and place of the next regular or special meeting of the board. If the association representative to whom the request is made does not know the time and place of the meeting, the association promptly shall obtain the information and disclose it to the unit owner or inform the unit owner where the information may be obtained.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994. Amended by Acts 1997, 75th Leg., ch. 956, Sec. 3, eff. Jan. 1, 1998.
Amended by:
Acts 2025, 89th Leg., R.S., Ch. 79 (S.B. 2629), Sec. 2, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scC/s82.109">
<num value="82.109">Sec. 82.109.</num>
<heading>QUORUMS</heading>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.109/a">
<num value="a">(a)</num>
<content>Unless the bylaws provide otherwise, a quorum is present throughout any meeting of the association if persons entitled to cast at least 20 percent of the votes that may be cast for election of the board are present in person or by proxy at the beginning of the meeting. The bylaws may not reduce the standard for a quorum to less than 10 percent.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.109/b">
<num value="b">(b)</num>
<content>Unless the bylaws specify a larger percentage, a quorum is present throughout a meeting of the board if persons entitled to cast at least 50 percent of the votes on the board are present at the beginning of the meeting.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scC/s82.110">
<num value="82.110">Sec. 82.110.</num>
<heading>VOTING AND PROXIES</heading>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.110/a">
<num value="a">(a)</num>
<content>If only one of the multiple owners of a unit is present at a meeting of the association, that person may cast the vote or votes allocated to that unit. If more than one of the multiple owners is present, the vote or votes allocated to that unit may be cast only in accordance with the owners' unanimous agreement unless the declaration provides otherwise. Multiple owners are in unanimous agreement if one of the multiple owners casts the votes allocated to a unit and none of the other owners makes prompt protest to the person presiding over the meeting.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.110/b">
<num value="b">(b)</num>
<content>Votes allocated to a unit may be cast under a written proxy duly executed by a unit owner. If a unit is owned by more than one person, each owner of the unit may vote or register protest to the casting of votes by the other owners of the unit through a proxy duly executed by the unit owner. A unit owner may not revoke a proxy given under this section except by giving actual notice of revocation to the person presiding over a meeting of the association. A proxy is void if it is not dated or if it purports to be revocable without notice. A proxy terminates one year after its date unless it specifies a shorter or longer time.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.110/c">
<num value="c">(c)</num>
<content>Cumulative voting is not allowed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.110/d">
<num value="d">(d)</num>
<content>Voting may be conducted electronically as provided by Section 6.002, Business Organizations Code.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.
Amended by:
Acts 2025, 89th Leg., R.S., Ch. 79 (S.B. 2629), Sec. 3, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scC/s82.111">
<num value="82.111">Sec. 82.111.</num>
<heading>INSURANCE</heading>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.111/a">
<num value="a">(a)</num>
<chapeau>Beginning not later than the time of the first conveyance of a unit to a person other than a declarant, the association shall maintain, to the extent reasonably available:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.111/1">
<num value="1">(1)</num>
<content>property insurance on the insurable common elements insuring against all risks of direct physical loss commonly insured against, including fire and extended coverage, in a total amount of at least 80 percent of the replacement cost or actual cash value of the insured property as of the effective date and at each renewal date of the policy; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.111/2">
<num value="2">(2)</num>
<content>commercial general liability insurance, including medical payments insurance, in an amount determined by the board but not less than any amount specified by the declaration covering all occurrences commonly insured against for death, bodily injury, and property damage arising out of or in connection with the use, ownership, or maintenance of the common elements.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.111/b">
<num value="b">(b)</num>
<content>If a building contains units having horizontal boundaries described in the declaration, the insurance maintained under Subsection (a)(1), to the extent reasonably available, must include the units, but need not include improvements and betterments installed by unit owners.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.111/c">
<num value="c">(c)</num>
<content>If the insurance described by Subsections (a) and (b) is not reasonably available, the association shall cause notice of that fact to be delivered or mailed to all unit owners and lienholders. The declaration may require the association to carry any other insurance, and the association in any event may carry any other insurance the board considers appropriate to protect the condominium, the association, or the unit owners. Insurance policies maintained under Subsection (a) may provide for commercially reasonable deductibles as the board determines appropriate or necessary. This section does not affect the right of a holder of a mortgage on a unit to require a unit owner to acquire insurance in addition to that provided by the association.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.111/d">
<num value="d">(d)</num>
<chapeau>Insurance policies carried under Subsection (a) must provide that:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.111/1">
<num value="1">(1)</num>
<content>each unit owner is an insured person under the policy with respect to liability arising out of the person's ownership of an undivided interest in the common elements or membership in the association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.111/2">
<num value="2">(2)</num>
<content>the insurer waives its right to subrogation under the policy against a unit owner;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.111/3">
<num value="3">(3)</num>
<content>no action or omission of a unit owner, unless within the scope of the unit owner's authority on behalf of the association, will void the policy or be a condition to recovery under the policy; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.111/4">
<num value="4">(4)</num>
<content>if, at the time of a loss under the policy, there is other insurance in the name of a unit owner covering the same property covered by the policy, the association's policy provides primary insurance.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.111/e">
<num value="e">(e)</num>
<content>A claim for any loss covered by the policy under Subsection (a)(1) must be submitted by and adjusted with the association. The insurance proceeds for that loss shall be payable to an insurance trustee designated by the association for that purpose, if the designation of an insurance trustee is considered by the board to be necessary or desirable, or otherwise to the association, and not to any unit owner or lienholder.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.111/f">
<num value="f">(f)</num>
<content>The insurance trustee or the association shall hold insurance proceeds in trust for unit owners and lienholders as their interests may appear. Subject to Subsection (i), the proceeds paid under a policy must be disbursed first for the repair or restoration of the damaged common elements and units, and unit owners and lienholders are not entitled to receive payment of any portion of the proceeds unless there is a surplus of proceeds after the property has been completely repaired or restored, or the condominium is terminated.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.111/g">
<num value="g">(g)</num>
<content>An insurance policy issued to the association does not prevent a unit owner from obtaining insurance for the owner's own benefit.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.111/h">
<num value="h">(h)</num>
<content>The insurer issuing the policy may not cancel or refuse to renew it less than 30 days after written notice of the proposed cancellation or nonrenewal has been mailed to the association.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.111/i">
<num value="i">(i)</num>
<content>Except as provided by this section, any portion of the condominium for which insurance is required that is damaged or destroyed shall be promptly repaired or replaced by the association unless the condominium is terminated, repair or replacement would be illegal under any state or local health or safety statute or ordinance, or at least 80 percent of the unit owners vote to not rebuild. Each owner of a unit may vote, regardless of whether the owner's unit or limited common element has been damaged or destroyed. A vote may be cast electronically or by written ballot if a meeting is not held for that purpose or in person or by proxy at a meeting called for that purpose. A vote to not rebuild does not increase an insurer's liability to loss payment obligation under a policy, and the vote does not cause a presumption of total loss. Except as provided by this section, the cost of repair or replacement in excess of the insurance proceeds is a common expense, and the board may levy an assessment to pay the expenses in accordance with each owner's common expense liability. If the entire condominium is not repaired or replaced, any insurance proceeds attributable to the damaged common elements shall be used to restore the damaged area to a condition compatible with the remainder of the condominium, the insurance proceeds attributable to units and limited common elements that are not rebuilt shall be distributed to the owners of those units and the owners of the units to which those limited common elements were assigned, or to their mortgagees, as their interests may appear, and the remainder of the proceeds shall be distributed to all the unit owners in accordance with each owner's undivided interest in the common elements unless otherwise provided in the declaration. If the unit owners vote to not rebuild any unit, that unit's allocated interests shall be automatically reallocated on the vote as if the unit had been condemned, and the association shall prepare, execute, and record an amendment to the declaration reflecting the reallocation. Section 82.068 governs the distribution of insurance proceeds if the condominium is terminated.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.111/j">
<num value="j">(j)</num>
<content>If the cost to repair damage to a unit or common element covered by the association's insurance is less than the amount of the applicable insurance deductible, the party who would be responsible for the repair in the absence of insurance shall pay the cost for the repair of the unit or common element.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.111/k">
<num value="k">(k)</num>
<content>If the association's insurance provides coverage for the loss and the cost to repair the damage to a unit or common element is more than the amount of the applicable insurance deductible, the dedicatory instruments determine payment for the cost of the association's deductible and costs incurred before insurance proceeds are available. If the dedicatory instruments are silent, the board of directors of the association by resolution shall determine the payment of those costs, or if the board does not approve a resolution, the costs are a common expense. A resolution under this subsection is considered a dedicatory instrument and must be recorded in each location in which the declaration is recorded.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.111/l">
<num value="l">(l)</num>
<content>If damage to a unit or the common elements is due wholly or partly to an act or omission of any unit owner or a guest or invitee of the unit owner, the association may assess the deductible expense and any other expense in excess of insurance proceeds against the owner and the owner's unit.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.111/m">
<num value="m">(m)</num>
<content>The provisions of this section may be varied or waived if all the units in a condominium are restricted to nonresidential use.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 678 (H.B. 2075), Sec. 4, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scC/s82.112">
<num value="82.112">Sec. 82.112.</num>
<heading>ASSESSMENTS FOR COMMON EXPENSES</heading>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.112/a">
<num value="a">(a)</num>
<content>Until an association makes a common expense assessment, a declarant shall pay all the expenses of the condominium as the expenses accrue. After an initial assessment by an association, assessments must be made at least annually and must be based on a budget adopted at least annually by the association. The association's reserves and the unit owners' working capital contributions may not be used to pay operational expenses until the declarant control terminates.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.112/b">
<num value="b">(b)</num>
<chapeau>From the date of the initial assessment until declarant control terminates, or three years from a declarant's first conveyance of a unit, whichever is earlier, the declarant shall periodically pay to the association:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.112/1">
<num value="1">(1)</num>
<content>an amount equal to all operational expenses of the association, less the operational expense portion of the assessments paid by unit owners other than declarant; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.112/2">
<num value="2">(2)</num>
<content>the common expense liability allocated to each unit owned by the declarant.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.112/c">
<num value="c">(c)</num>
<content>Common expenses shall be assessed against all units conveyed, rented, or used as models or offices by the declarant and against all units owned by a declarant after termination of a declarant's control or three years from a declarant's first conveyance of a unit, whichever is earlier, in accordance with the common expense liability allocated to each unit. A past due assessment or installment of an assessment may bear interest at a lawful rate established by the association.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.112/d">
<num value="d">(d)</num>
<content>Except as provided by the declaration and Section 82.107, a common expense for the maintenance, repair, or replacement of a limited common element shall be assessed against all the units as if it were for a general common element.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.112/e">
<num value="e">(e)</num>
<content>If common expense liabilities are reallocated, common expense assessments and an assessment installment not yet due shall be recomputed in accordance with the reallocated common expense liabilities.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.112/f">
<num value="f">(f)</num>
<content>A declaration may allow the accumulation of reserve funds for an unspecified period to provide for any anticipated expense of the condominium.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.112/g">
<num value="g">(g)</num>
<content>This section does not prevent a declarant from collecting from a purchaser at closing the prorated amount of any expenses, such as insurance or taxes, that the declarant has prepaid to the association or directly to others on behalf of the unit that is being purchased.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scC/s82.113">
<num value="82.113">Sec. 82.113.</num>
<heading>ASSOCIATION'S LIEN FOR ASSESSMENTS</heading>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.113/a">
<num value="a">(a)</num>
<content>An assessment levied by the association against a unit or unit owner is a personal obligation of the unit owner and is secured by a continuing lien on the unit and on rents and insurance proceeds received by the unit owner and relating to the owner's unit. In this section, "assessments" means regular and special assessments, dues, fees, charges, interest, late fees, fines, collection costs, attorney's fees, and any other amount due to the association by the unit owner or levied against the unit by the association, all of which are enforceable as assessments under this section unless the declaration provides otherwise.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.113/b">
<num value="b">(b)</num>
<chapeau>The association's lien for assessments has priority over any other lien except:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.113/1">
<num value="1">(1)</num>
<content>a lien for real property taxes and other governmental assessments or charges against the unit unless otherwise provided by Section 32.05, Tax Code;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.113/2">
<num value="2">(2)</num>
<content>a lien or encumbrance recorded before the declaration is recorded;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.113/3">
<num value="3">(3)</num>
<content>a first vendor's lien or first deed of trust lien recorded before the date on which the assessment sought to be enforced becomes delinquent under the declaration, bylaws, or rules; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.113/4">
<num value="4">(4)</num>
<content>unless the declaration provides otherwise, a lien for construction of improvements to the unit or an assignment of the right to insurance proceeds on the unit if the lien or assignment is recorded or duly perfected before the date on which the assessment sought to be enforced becomes delinquent under the declaration, bylaws, or rules.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.113/c">
<num value="c">(c)</num>
<content>The association's lien for assessments is created by recordation of the declaration, which constitutes record notice and perfection of the lien. Unless the declaration provides otherwise, no other recordation of a lien or notice of lien is required.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.113/d">
<num value="d">(d)</num>
<content>By acquiring a unit, a unit owner grants to the association a power of sale in connection with the association's lien. By written resolution, a board may appoint, from time to time, an officer, agent, trustee, or attorney of the association to exercise the power of sale on behalf of the association. Except as provided by the declaration, an association shall exercise its power of sale pursuant to Section 51.002.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.113/e">
<num value="e">(e)</num>
<content>The association has the right to foreclose its lien judicially or by nonjudicial foreclosure pursuant to the power of sale created by this chapter or the declaration, except that the association may not foreclose a lien for assessments consisting solely of fines. Costs of foreclosure may be added to the amount owed by the unit owner to the association. A unit owner may not petition a court to set aside a sale solely because the purchase price at the foreclosure sale was insufficient to fully satisfy the owner's debt.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.113/f">
<num value="f">(f)</num>
<content>The association may bid for and purchase the unit at foreclosure sale as a common expense. The association may own, lease, encumber, exchange, sell, or convey a unit.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.113/g">
<num value="g">(g)</num>
<content>The owner of a unit purchased at a foreclosure sale of the association's lien for assessments may redeem the unit not later than the 90th day after the date of the foreclosure sale. If the association is the purchaser, the owner must pay to the association to redeem the unit all amounts due the association at the time of the foreclosure sale, interest from the date of foreclosure sale to the date of redemption at the rate provided by the declaration for delinquent assessments, reasonable attorney's fees and costs incurred by the association in foreclosing the lien, any assessment levied against the unit by the association after the foreclosure sale, and any reasonable cost incurred by the association as owner of the unit, including costs of maintenance and leasing. If a party other than the association is the purchaser, the redeeming owner must pay to the purchaser of the unit at the foreclosure sale an amount equal to the amount bid at the sale, interest on the bid amount computed from the date of the foreclosure sale to the date of redemption at the rate of six percent, any assessment paid by the purchaser after the date of foreclosure, and any reasonable costs incurred by the purchaser as the owner of the unit, including costs of maintenance and leasing. The redeeming owner must also pay to the association all assessments that are due as of the date of the redemption and reasonable attorney's fees and costs incurred by the association in foreclosing the lien. On redemption, the purchaser of the unit at the foreclosure sale shall execute a deed with no warranty to the redeeming unit owner. The exercise of the right of redemption is not effective against a subsequent purchaser or lender for value without notice of the redemption after the redemption period expires unless the redeeming unit owner records the deed from the purchaser of the unit at the foreclosure sale or an affidavit stating that the owner has exercised the right of redemption. A unit that has been redeemed remains subject to all liens and encumbrances on the unit before foreclosure. All rents and other income collected from the unit by the purchaser of the unit at the foreclosure sale from the date of foreclosure sale to the date of redemption belong to the purchaser of the unit at the foreclosure sale, but the rents and income shall be credited against the redemption amount. The purchaser of a unit at a sale foreclosing an association's assessment lien may not transfer ownership of the unit during the redemption period to a person other than a redeeming owner.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.113/h">
<num value="h">(h)</num>
<content>If a unit owner defaults in the owner's monetary obligations to the association, the association may notify other lien holders of the default and the association's intent to foreclose its lien. The association shall notify any holder of a recorded lien or duly perfected mechanic's lien against a unit who has given the association a written request for notification of the unit owner's monetary default or the association's intent to foreclose its lien.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.113/i">
<num value="i">(i)</num>
<content>This section does not prohibit the association from taking a deed in lieu of foreclosure or from filing suit to recover a money judgment for sums that may be secured by the lien.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.113/j">
<num value="j">(j)</num>
<content>At any time before a nonjudicial foreclosure sale, a unit owner may avoid foreclosure by paying all amounts due the association.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.113/k">
<num value="k">(k)</num>
<content>If, on January 1, 1994, a unit is the homestead of the unit owner and is subject to a declaration that does not contain a valid assessment lien against the unit, the lien provided by this section does not attach against the unit until the unit ceases to be the homestead of the person owning it on January 1, 1994.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.113/l">
<num value="l">(l)</num>
<content>Foreclosure of a tax lien attaching against a unit under Chapter 32, Tax Code, does not discharge the association's lien for assessments under this section or under a declaration for amounts becoming due to the association after the date of foreclosure of the tax lien.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.113/m">
<num value="m">(m)</num>
<content>If a unit owner is delinquent in payment of assessments to an association, at the request of the association a holder of a recorded lien against the unit may provide the association with information about the unit owner's debt secured by the holder's lien against the unit and other relevant information. At the request of a lien holder, the association may furnish the lien holder with information about the condominium and the unit owner's obligations to the association.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 678 (H.B. 2075), Sec. 5, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scC/s82.114">
<num value="82.114">Sec. 82.114.</num>
<heading>ASSOCIATION RECORDS</heading>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.114/a">
<num value="a">(a)</num>
<chapeau>The association shall keep:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.114/1">
<num value="1">(1)</num>
<content>detailed financial records that comply with generally accepted accounting principles and that are sufficiently detailed to enable the association to prepare a resale certificate under Section 82.157;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.114/2">
<num value="2">(2)</num>
<content>the plans and specifications used to construct the condominium except for buildings originally constructed before January 1, 1994;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.114/3">
<num value="3">(3)</num>
<content>the condominium information statement prepared under Section 82.152 and any amendments;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.114/4">
<num value="4">(4)</num>
<content>the name and mailing address of each unit owner;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.114/5">
<num value="5">(5)</num>
<content>voting records, proxies, and correspondence relating to amendments to the declaration; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.114/6">
<num value="6">(6)</num>
<content>minutes of meetings of the association and board.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.114/b">
<num value="b">(b)</num>
<content>All financial and other records of the association shall be reasonably available at its registered office or its principal office in this state for examination and production in accordance with Section 82.1141.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.114/c">
<num value="c">(c)</num>
<content>The association shall, as a common expense, annually obtain an independent audit of the records. Copies of the audit must be made available to the unit owners. An audit required by this subsection shall be performed by a certified public accountant if required by the bylaws or a vote of the board of directors or a majority vote of the members of the association voting at a meeting of the association.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.114/d">
<num value="d">(d)</num>
<content>A declarant shall furnish copies to the association of the information required by Subsection (a) on the date the first unit is sold.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.114/e">
<num value="e">(e)</num>
<chapeau>Not later than the 30th day after the date of acquiring an interest in a unit, the unit owner shall provide the association with:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.114/1">
<num value="1">(1)</num>
<content>the unit owner's mailing address, telephone number, and driver's license number, if any;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.114/2">
<num value="2">(2)</num>
<content>the name and address of the holder of any lien against the unit, and any loan number;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.114/3">
<num value="3">(3)</num>
<content>the name and telephone number of any person occupying the unit other than the unit owner; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.114/4">
<num value="4">(4)</num>
<content>the name, address, and telephone number of any person managing the unit as agent of the unit owner.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.114/f">
<num value="f">(f)</num>
<content>A unit owner shall notify the association not later than the 30th day after the date the owner has notice of a change in any information required by Subsection (e), and shall provide the information on request by the association from time to time.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 555 (S.B. 318), Sec. 1, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scC/s82.1141">
<num value="82.1141">Sec. 82.1141.</num>
<heading>ACCESS TO ASSOCIATION RECORDS</heading>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.1141/a">
<num value="a">(a)</num>
<content>This section applies to all associations governed by this chapter and controls over other law not specifically applicable to an association.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.1141/b">
<num value="b">(b)</num>
<content>Notwithstanding a provision in a dedicatory instrument, an association shall make the books and records of the association, including financial records, open to and reasonably available for examination by a unit owner, or a person designated in a writing signed by the unit owner as the unit owner's agent, attorney, or certified public accountant, in accordance with this section. A unit owner is entitled to obtain from the association copies of information contained in the books and records.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.1141/c">
<num value="c">(c)</num>
<content>Except as provided by this subsection, an attorney's files and records relating to the association, excluding invoices requested by a unit owner for attorney's fees and other costs relating only to a matter for which the association seeks reimbursement of fees and costs from the unit owner, are not records of the association and are not subject to inspection by the unit owner or production in a legal proceeding. If a document in an attorney's files and records relating to the association would be responsive to a legally authorized request to inspect or copy association documents, the document shall be produced by using the copy from the attorney's files and records if the association has not maintained a separate copy of the document. This subsection does not require production of a document that constitutes attorney work product or that is privileged as an attorney-client communication.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.1141/d">
<num value="d">(d)</num>
<chapeau>A unit owner or the unit owner's authorized representative described by Subsection (b) must submit a written request for access or information under Subsection (b) by certified mail, with sufficient detail describing the association's books and records requested, to the mailing address of the association or authorized representative as reflected on the most current management certificate filed under Section 82.116. The request must contain an election either to inspect the books and records before obtaining copies or to have the association forward copies of the requested books and records and:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.1141/1">
<num value="1">(1)</num>
<content>if an inspection is requested, the association, on or before the 10th business day after the date the association receives the request, shall send written notice of dates during normal business hours that the unit owner may inspect the requested books and records to the extent those books and records are in the possession, custody, or control of the association; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.1141/2">
<num value="2">(2)</num>
<content>if copies of identified books and records are requested, the association shall, to the extent those books and records are in the possession, custody, or control of the association, produce the requested books and records for the requesting party on or before the 10th business day after the date the association receives the request, except as otherwise provided by this section.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.1141/e">
<num value="e">(e)</num>
<chapeau>If the association is unable to produce the books or records requested under Subsection (d) on or before the 10th business day after the date the association receives the request, the association must provide to the requestor written notice that:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.1141/1">
<num value="1">(1)</num>
<content>informs the requestor that the association is unable to produce the information on or before the 10th business day after the date the association received the request; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.1141/2">
<num value="2">(2)</num>
<content>states a date by which the information will be sent or made available for inspection to the requesting party that is not later than the 15th business day after the date notice under this subsection is given.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.1141/f">
<num value="f">(f)</num>
<content>If an inspection is requested or required, the inspection shall take place at a mutually agreed on time during normal business hours, and the requesting party shall identify the books and records for the association to copy and forward to the requesting party.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.1141/g">
<num value="g">(g)</num>
<content>An association may produce books and records requested under this section in hard copy, electronic, or other format reasonably available to the association.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.1141/h">
<num value="h">(h)</num>
<content>An association board must adopt a records production and copying policy that prescribes the costs the association will charge for the compilation, production, and reproduction of information requested under this section. The prescribed charges may include all reasonable costs of materials, labor, and overhead but may not exceed costs that would be applicable for an item under 1 T.A.C. Section 70.3 for an item produced by the association and may not exceed actual costs for an item produced by a third party. The policy required by this subsection must be recorded as a dedicatory instrument in accordance with Section 202.006. An association may not charge a unit owner for the compilation, production, or reproduction of information requested under this section unless the policy prescribing those costs has been recorded as required by this subsection. A unit owner is responsible for costs related to the compilation, production, and reproduction of the requested information in the amounts prescribed by the policy adopted under this subsection. The association may require advance payment of the estimated costs of compilation, production, and reproduction of the requested information. If the estimated costs are lesser or greater than the actual costs, the association shall submit a final invoice to the unit owner on or before the 30th business day after the date the information is delivered. If the final invoice includes additional amounts due from the unit owner, the additional amounts, if not reimbursed to the association before the 30th business day after the date the invoice is sent to the unit owner, may be added to the unit owner's account as an assessment. If the estimated costs exceeded the final invoice amount, the unit owner is entitled to a refund, and the refund shall be issued to the unit owner not later than the 30th business day after the date the invoice is sent to the unit owner.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.1141/i">
<num value="i">(i)</num>
<content>An association must estimate costs under this section using amounts prescribed by the policy adopted under Subsection (h).</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.1141/j">
<num value="j">(j)</num>
<content>Except as provided by Subsection (k) and to the extent the information is provided in the meeting minutes, the association is not required to release or allow inspection of any books or records that identify the dedicatory instrument violation history of an individual unit owner of an association, a unit owner's personal financial information, including records of payment or nonpayment of amounts due the association, a unit owner's contact information, a unit owner's address, or information related to an employee of the association, including personnel files. Information may be released in an aggregate or summary manner that would not identify an individual unit owner.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.1141/k">
<num value="k">(k)</num>
<chapeau>The books and records described by Subsection (j) shall be released or made available for inspection if:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.1141/1">
<num value="1">(1)</num>
<content>the express written approval of the unit owner whose records are the subject of the request for inspection is provided to the association; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.1141/2">
<num value="2">(2)</num>
<content>a court orders the release of the books and records or orders that the books and records be made available for inspection.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.1141/l">
<num value="l">(l)</num>
<chapeau>In addition to retaining records as necessary for compliance with Section 82.114, an association composed of eight or more units shall adopt and comply with a document retention policy that includes, at a minimum, the following requirements:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.1141/1">
<num value="1">(1)</num>
<content>certificates of formation, bylaws, dedicatory instruments, and all amendments to the certificates of formation, bylaws, and dedicatory instruments shall be retained permanently;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.1141/2">
<num value="2">(2)</num>
<content>financial books and records shall be retained for seven years;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.1141/3">
<num value="3">(3)</num>
<content>account records of current unit owners shall be retained for five years;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.1141/4">
<num value="4">(4)</num>
<content>contracts with a term of one year or more shall be retained for four years after the expiration of the contract term;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.1141/5">
<num value="5">(5)</num>
<content>minutes of meetings of the unit owners and the board shall be retained for seven years; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.1141/6">
<num value="6">(6)</num>
<content>tax returns and audit records shall be retained for seven years.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.1141/m">
<num value="m">(m)</num>
<chapeau>A member of an association who is denied access to or copies of association books or records to which the member is entitled under this section may file a petition with the justice of the peace of a justice precinct in which all or part of the condominium is located requesting relief in accordance with this subsection. If the justice of the peace finds that the member is entitled to access to or copies of the records, the justice of the peace may grant one or more of the following remedies:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.1141/1">
<num value="1">(1)</num>
<content>a judgment ordering the association to release or allow access to the books or records; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.1141/2">
<num value="2">(2)</num>
<content>a judgment against the association for court costs and attorney's fees incurred in connection with seeking a remedy under this section.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.1141/n">
<num value="n">(n)</num>
<content>If the association prevails in an action under Subsection (m), the association is entitled to a judgment for court costs and attorney's fees incurred by the association in connection with the action.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.1141/o">
<num value="o">(o)</num>
<chapeau>On or before the 10th business day before the date a person brings an action against an association under this section, the person must send written notice to the association of the person's intent to bring the action. The notice must:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.1141/1">
<num value="1">(1)</num>
<content>be sent certified mail, return receipt requested, or delivered by the United States Postal Service with signature confirmation service to the mailing address of the association or authorized representative as reflected on the most current management certificate filed under Section 82.116; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.1141/2">
<num value="2">(2)</num>
<content>describe with sufficient detail the books and records being requested.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.1141/p">
<num value="p">(p)</num>
<content>For the purposes of this section, "business day" means a day other than Saturday, Sunday, or a state or federal holiday.</content>
</subsection>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 555 (S.B. 318), Sec. 2, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scC/s82.1142">
<num value="82.1142">Sec. 82.1142.</num>
<heading>ONLINE ASSOCIATION INFORMATION REQUIRED</heading>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.1142/a">
<num value="a">(a)</num>
<chapeau>This section only applies to:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.1142/1">
<num value="1">(1)</num>
<content>the association of a condominium composed of at least 60 units; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.1142/2">
<num value="2">(2)</num>
<content>an association that has contracted with a management company.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.1142/b">
<num value="b">(b)</num>
<chapeau>An association to which this section applies shall make the current version of the association's dedicatory instruments relating to the association and filed in the county deed records available on an Internet website that is:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.1142/1">
<num value="1">(1)</num>
<content>maintained by the association or a management company on behalf of the association; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.1142/2">
<num value="2">(2)</num>
<content>accessible to association members.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 10 (S.B. 711), Sec. 2, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scC/s82.115">
<num value="82.115">Sec. 82.115.</num>
<heading>ASSOCIATION AS TRUSTEE</heading>
<content>A third person dealing with an association in the association's capacity as a trustee may assume without inquiry the existence of trust powers and their proper exercise by the association. A third person who lacks actual knowledge that an association is exceeding or improperly exercising its powers is fully protected in dealing with the association as if the association possessed and properly exercised the powers it purports to exercise. A third person is not bound to ensure the proper application of trust assets paid or delivered to an association in its capacity as trustee.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scC/s82.116">
<num value="82.116">Sec. 82.116.</num>
<heading>MANAGEMENT CERTIFICATE</heading>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.116/a">
<num value="a">(a)</num>
<chapeau>An association shall record in each county in which any portion of the condominium is located a management certificate, signed and acknowledged by an officer of the association, stating:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.116/1">
<num value="1">(1)</num>
<content>the name of the condominium;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.116/2">
<num value="2">(2)</num>
<content>the name of the association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.116/3">
<num value="3">(3)</num>
<content>the location of the condominium;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.116/4">
<num value="4">(4)</num>
<content>the recording data for the declaration and any amendments to the declaration;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.116/5">
<num value="5">(5)</num>
<content>the mailing address of the association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.116/6">
<num value="6">(6)</num>
<content>the name, mailing address, telephone number, and e-mail address of any management company;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.116/7">
<num value="7">(7)</num>
<content>the website address of any Internet website on which the association's dedicatory instruments are available in accordance with Section 82.1142;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.116/8">
<num value="8">(8)</num>
<content>the amount and description of a fee or fees charged to a unit seller or buyer relating to a transfer of a property interest in a unit of the condominium; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.116/9">
<num value="9">(9)</num>
<content>other information the association considers appropriate.</content>
<continuation>(a-1) The county clerk of each county in which a management certificate is filed as required by this section shall record the management certificate in the real property records of the county and index the document as a "Condominium Association Management Certificate."</continuation>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.116/b">
<num value="b">(b)</num>
<content>The association shall record an amended management certificate not later than the 30th day after the date the association has notice of a change in any information in a recorded certificate required by Subsection (a).</content>
<continuation>(b-1) Not later than the seventh day after the date an association files a management certificate for recording under Subsection (a) or files an amended management certificate for recording under Subsection (b), the association shall electronically file the management certificate or amended management certificate with the Texas Real Estate Commission. The Texas Real Estate Commission shall only collect the management certificate and amended management certificate for the purpose of making the data accessible to the public through an Internet website.</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.116/c">
<num value="c">(c)</num>
<content>Except as provided by Subsection (d), the association and its officers, directors, employees, and agents are not subject to liability to any person for delay or failure to record a management certificate with a county clerk's office or to electronically file the management certificate with the Texas Real Estate Commission, unless the delay or failure is wilful or caused by gross negligence.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.116/d">
<num value="d">(d)</num>
<content>A unit owner is not liable for attorney's fees incurred by an association relating to the collection of a delinquent assessment against the unit owner, or interest on the 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.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 678 (H.B. 2075), Sec. 6, eff. September 1, 2013.
Acts 2025, 89th Leg., R.S., Ch. 10 (S.B. 711), Sec. 3, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scC/s82.117">
<num value="82.117">Sec. 82.117.</num>
<heading>OBLIGATIONS OF UNIT OWNERS</heading>
<chapeau>Without limiting the obligations of the unit owners and except as provided by the declaration, bylaws, rules of the association, or this chapter, the unit owner:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.117/1">
<num value="1">(1)</num>
<content>shall pay assessments, interest, and other charges properly levied by the association against the owner or the owner's unit, and shall pay regular periodic assessments without demand by the association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.117/2">
<num value="2">(2)</num>
<content>shall comply with the declaration, bylaws, and rules of the association, including any amendments;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.117/3">
<num value="3">(3)</num>
<content>shall pay for damage to the condominium caused by the negligence or wilful misconduct of the owner, an occupant of the owner's unit, or the owner or occupant's family, guests, employees, contractors, agents, or invitees; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.117/4">
<num value="4">(4)</num>
<content>is liable to the association for violations of the declaration, bylaws, or rules of the association, including any amendments, by the owner, an occupant of the owner's unit, or the owner or occupant's family, guests, employees, agents, or invitees, and for costs incurred by the association to obtain compliance, including attorney's fees whether or not suit is filed.</content>
</paragraph>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scC/s82.118">
<num value="82.118">Sec. 82.118.</num>
<heading>SERVICE OF PROCESS ON UNIT OWNERS IN CERTAIN MUNICIPALITIES; CHANGE OF ADDRESS REQUIRED</heading>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.118/a">
<num value="a">(a)</num>
<content>A unit owner of a condominium located wholly or partly in a municipality with a population of more than 1.9 million may be served with process by the municipality or the municipality's agent for a judicial or administrative proceeding initiated by the municipality and directly related to the unit owner's property interest in the condominium by serving the unit owner at the unit owner's last known address, according to the records of the appraisal district in which the condominium is located, by any means permitted by Rule 21a, Texas Rules of Civil Procedure.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.118/b">
<num value="b">(b)</num>
<content>Notwithstanding Subsection (a), a unit owner may not offer proof in the judicial or administrative proceeding, or in a subsequent related proceeding, that otherwise proper service by mail of the notice was not received not later than three days after the date the notice was deposited in a post office or official depository under the care and custody of the United States Postal Service.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.118/c">
<num value="c">(c)</num>
<content>Not later than the 90th day after the date a unit owner changes the unit owner's mailing address, the owner must provide written notice of the owner's new address to the appraisal district in which the condominium is located.</content>
</subsection>
<sourceCredit>Added by Acts 2009, 81st Leg., R.S., Ch. 1323 (H.B. 3128), Sec. 2, eff. September 1, 2009.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 693 (H.B. 364), Sec. 2, eff. September 1, 2011.
Acts 2011, 82nd Leg., R.S., Ch. 693 (H.B. 364), Sec. 3, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scC/s82.119">
<num value="82.119">Sec. 82.119.</num>
<heading>PROCEDURES FOR FILING SUIT OR INITIATING ARBITRATION PROCEEDINGS FOR DEFECT OR DESIGN CLAIMS FOR CERTAIN ASSOCIATIONS</heading>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.119/a">
<num value="a">(a)</num>
<content>This section does not apply to an association with less than eight units.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.119/b">
<num value="b">(b)</num>
<chapeau>In addition to any preconditions to filing suit or initiating an arbitration proceeding included in the declaration, an association, before filing suit or initiating an arbitration proceeding to resolve a claim pertaining to the construction or design of a unit or the common elements, must:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.119/1">
<num value="1">(1)</num>
<chapeau>obtain an inspection and a written independent third-party report from a licensed professional engineer that:</chapeau>
<subparagraph identifier="/us/tx/pr/t7/c82/scC/s82.119/A">
<num value="A">(A)</num>
<content>identifies the specific units or common elements subject to the claim;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t7/c82/scC/s82.119/B">
<num value="B">(B)</num>
<content>describes the present physical condition of the units or common elements subject to the claim; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t7/c82/scC/s82.119/C">
<num value="C">(C)</num>
<content>describes any modifications, maintenance, or repairs to the units or common elements performed by the unit owners or the association; and</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.119/2">
<num value="2">(2)</num>
<content>obtain approval from unit owners holding more than 50 percent of the total votes allocated under the declaration, voting in person or by proxy as provided by Section 82.110, at a regular, annual, or special meeting called in accordance with the declaration or bylaws, as applicable.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.119/c">
<num value="c">(c)</num>
<chapeau>The association must provide written notice of the inspection to be conducted by the engineer to each party subject to a claim not later than the 10th day before the date the inspection occurs. The notice must:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.119/1">
<num value="1">(1)</num>
<content>identify the party engaged to prepare the report required by Subsection (b)(1);</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.119/2">
<num value="2">(2)</num>
<content>identify the specific units or common elements to be inspected; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.119/3">
<num value="3">(3)</num>
<content>include the date and time the inspection will occur.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.119/d">
<num value="d">(d)</num>
<content>Each party subject to a claim may attend the inspection conducted by the engineer, either personally or through an agent.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.119/e">
<num value="e">(e)</num>
<chapeau>Before providing the notice of the meeting under Subsection (f), an association must:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.119/1">
<num value="1">(1)</num>
<content>on completion of the independent third-party report, provide the report to each unit owner and each party subject to a claim; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.119/2">
<num value="2">(2)</num>
<content>allow each party subject to a claim at least 90 days after the date of completion of the report to inspect and correct any condition identified in the report.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.119/f">
<num value="f">(f)</num>
<chapeau>Not later than the 30th day before the date the meeting described by Subsection (b)(2) is held, the association must provide each unit owner with written notice of the date, time, and location of the meeting. The notice must also include:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.119/1">
<num value="1">(1)</num>
<content>a description of the nature of the claim, the relief sought, the anticipated duration of prosecuting the claim, and the likelihood of success;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.119/2">
<num value="2">(2)</num>
<content>a copy of the report required by Subsection (b)(1);</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.119/3">
<num value="3">(3)</num>
<content>a copy of the contract or proposed contract between the association and the attorney selected by the board to assert or provide assistance with the claim;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.119/4">
<num value="4">(4)</num>
<content>a description of the attorney's fees, consultant fees, expert witness fees, and court costs, whether incurred by the association directly or for which the association may be liable as a result of prosecuting the claim;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.119/5">
<num value="5">(5)</num>
<content>a summary of the steps previously taken by the association to resolve the claim;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.119/6">
<num value="6">(6)</num>
<content>a statement that initiating a lawsuit or arbitration proceeding to resolve a claim may affect the market value, marketability, or refinancing of a unit while the claim is prosecuted; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.119/7">
<num value="7">(7)</num>
<content>a description of the manner in which the association proposes to fund the cost of prosecuting the claim.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.119/g">
<num value="g">(g)</num>
<chapeau>The notice required by Subsection (f) must be prepared and signed by a person who is not:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.119/1">
<num value="1">(1)</num>
<content>the attorney who represents or will represent the association in the claim;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.119/2">
<num value="2">(2)</num>
<content>a member of the law firm of the attorney who represents or will represent the association in the claim; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.119/3">
<num value="3">(3)</num>
<content>employed by or otherwise affiliated with the law firm of the attorney who represents or will represent the association in the claim.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.119/h">
<num value="h">(h)</num>
<content>The period of limitations for filing a suit or initiating an arbitration proceeding for a claim described by Subsection (b) is tolled until the first anniversary of the date the procedures are initiated by the association under that subsection if the procedures are initiated during the final year of the applicable period of limitation.</content>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 730 (H.B. 1455), Sec. 1, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scC/s82.120">
<num value="82.120">Sec. 82.120.</num>
<heading>BINDING ARBITRATION FOR CERTAIN CLAIMS</heading>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.120/a">
<num value="a">(a)</num>
<content>A declaration may provide that a claim pertaining to the construction or design of a unit or the common elements must be resolved by binding arbitration and may provide for a process by which the claim is resolved.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.120/b">
<num value="b">(b)</num>
<content>An amendment to the declaration that modifies or removes the arbitration requirement or the process associated with resolution of a claim may not apply retroactively to a claim regarding the construction or design of units or common elements based on an alleged act or omission that occurred before the date of the amendment.</content>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 730 (H.B. 1455), Sec. 1, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scC/s82.121">
<num value="82.121">Sec. 82.121.</num>
<heading>POSSESSION OF FIREARM OR FIREARM AMMUNITION ON CONDOMINIUM PROPERTY</heading>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.121/a">
<num value="a">(a)</num>
<chapeau>Unless possession of a firearm or firearm ammunition on condominium property is prohibited by state or federal law, a condominium unit owner, or a tenant or guest of a condominium unit owner, or a guest of a tenant of a condominium unit owner may not be prohibited from lawfully possessing, carrying, transporting, or storing a firearm, any part of a firearm, or firearm ammunition:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.121/1">
<num value="1">(1)</num>
<content>in the condominium unit owner's unit;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.121/2">
<num value="2">(2)</num>
<content>in a vehicle located in a parking area provided for the residents or guests of the condominium property; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scC/s82.121/3">
<num value="3">(3)</num>
<chapeau>in other common element locations as necessary to:</chapeau>
<subparagraph identifier="/us/tx/pr/t7/c82/scC/s82.121/A">
<num value="A">(A)</num>
<content>enter or exit the condominium property;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t7/c82/scC/s82.121/B">
<num value="B">(B)</num>
<content>enter or exit the condominium unit owner's unit; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t7/c82/scC/s82.121/C">
<num value="C">(C)</num>
<content>enter or exit a vehicle on the condominium property or located in a parking area provided for residents or guests of the condominium property.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scC/s82.121/b">
<num value="b">(b)</num>
<content>This section applies notwithstanding any provision of a dedicatory instrument to the contrary and regardless of the date of the provision's adoption.</content>
</subsection>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 39 (H.B. 302), Sec. 5, eff. September 1, 2019.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t7/c82/scD">
<num value="D">SUBCHAPTER D.</num>
<heading>PROTECTION OF PURCHASERS</heading>
<section identifier="/us/tx/pr/t7/c82/scD/s82.151">
<num value="82.151">Sec. 82.151.</num>
<heading>APPLICABILITY</heading>
<subsection identifier="/us/tx/pr/t7/c82/scD/s82.151/a">
<num value="a">(a)</num>
<content>This subchapter applies to each unit subject to this chapter, except as provided by Subsection (b) or as modified or waived by the agreement of a purchaser of a unit in a condominium in which all units are restricted to nonresidential use.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scD/s82.151/b">
<num value="b">(b)</num>
<chapeau>A condominium information statement or resale certificate need not be prepared or delivered in the case of:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.151/1">
<num value="1">(1)</num>
<content>a gratuitous disposition of a unit;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.151/2">
<num value="2">(2)</num>
<content>a disposition pursuant to court order;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.151/3">
<num value="3">(3)</num>
<content>a disposition by a government or governmental agency;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.151/4">
<num value="4">(4)</num>
<content>a disposition by foreclosure or deed in lieu of foreclosure; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.151/5">
<num value="5">(5)</num>
<content>a disposition that may be canceled at any time, for any reason, and without penalty.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scD/s82.152">
<num value="82.152">Sec. 82.152.</num>
<heading>LIABILITY FOR CONDOMINIUM INFORMATION STATEMENT</heading>
<subsection identifier="/us/tx/pr/t7/c82/scD/s82.152/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (b), a declarant shall prepare a condominium information statement before offering to the public any interest in a unit.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scD/s82.152/b">
<num value="b">(b)</num>
<content>A declarant may transfer responsibility for preparation of all or a part of the condominium information statement to a successor declarant or to a person in the business of selling real property who intends to offer units in the condominium for the person's own account. On such transfer, the transferor shall provide the transferee with any information necessary to enable the transferee to prepare a condominium information statement.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scD/s82.152/c">
<num value="c">(c)</num>
<content>A declarant or other person in the business of selling real property who offers a unit for the person's own account to a purchaser shall provide a purchaser of a unit with a copy of the condominium information statement, as amended, before conveyance of the unit or the date of a contract of sale, whichever is earlier.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scD/s82.152/d">
<num value="d">(d)</num>
<content>The person preparing all or part of the condominium information statement is liable for any false or misleading statement or for any omission of material fact in the portion of the condominium information statement that the person prepared. If a declarant did not prepare any part of a condominium information statement that the declarant delivers, the declarant is not liable for any false or misleading statement or any omission of material fact unless the declarant actually knew or should have known of the statement or omission.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scD/s82.153">
<num value="82.153">Sec. 82.153.</num>
<heading>CONDOMINIUM INFORMATION STATEMENTS IN GENERAL</heading>
<subsection identifier="/us/tx/pr/t7/c82/scD/s82.153/a">
<num value="a">(a)</num>
<chapeau>A condominium information statement must contain or accurately disclose:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.153/1">
<num value="1">(1)</num>
<content>the name and principal address of the declarant and of the condominium;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.153/2">
<num value="2">(2)</num>
<content>a general description of the condominium that includes the types of units and the maximum number of units;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.153/3">
<num value="3">(3)</num>
<content>the minimum and maximum number of additional units, if any, that may be included in the condominium;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.153/4">
<num value="4">(4)</num>
<content>a brief narrative description of any development rights reserved by a declarant and of any conditions relating to or limitations upon the exercise of development rights;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.153/5">
<num value="5">(5)</num>
<content>copies of the declaration, articles of incorporation of the association, the bylaws, any rules of the association, and amendments to any of them, and copies of leases and contracts, other than loan documents, that are required by the declarant to be signed by purchasers at closing;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.153/6">
<num value="6">(6)</num>
<content>a projected or pro forma budget for the association that complies with Subsection (b) for the first fiscal year of the association following the date of the first conveyance to a purchaser, identification of the person who prepared the budget, and a statement of the budget's assumptions concerning occupancy and inflation factors;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.153/7">
<num value="7">(7)</num>
<content>a general description of each lien, lease, or encumbrance on or affecting the title to the condominium after conveyance by the declarant;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.153/8">
<num value="8">(8)</num>
<content>a copy of each written warranty provided by the declarant;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.153/9">
<num value="9">(9)</num>
<content>a description of any unsatisfied judgments against the association and any pending suits to which the association is a party or which are material to the land title and construction of the condominium of which a declarant has actual knowledge;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.153/10">
<num value="10">(10)</num>
<content>a general description of the insurance coverage provided for the benefit of unit owners;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.153/11">
<num value="11">(11)</num>
<content>current or expected fees or charges to be paid by unit owners for the use of the common elements and other facilities related to the condominium; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.153/12">
<num value="12">(12)</num>
<chapeau>for a condominium located wholly or partly in a municipality with a population of more than 1.9 million a statement that a unit owner:</chapeau>
<subparagraph identifier="/us/tx/pr/t7/c82/scD/s82.153/A">
<num value="A">(A)</num>
<content>as an alternative to personal service, may be served with process by the municipality or the municipality's agent for a judicial or administrative proceeding initiated by the municipality and directly related to the unit owner's property interest in the condominium by serving the unit owner at the unit owner's last known address, according to the records of the appraisal district in which the condominium is located, by any means permitted by Rule 21a, Texas Rules of Civil Procedure;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t7/c82/scD/s82.153/B">
<num value="B">(B)</num>
<content>shall notify the appraisal district in writing of a change in the unit owner's mailing address not later than the 90th day after the date the unit owner changes the address; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t7/c82/scD/s82.153/C">
<num value="C">(C)</num>
<content>may not offer proof in the judicial or administrative proceeding, or in a subsequent related proceeding, that otherwise proper service by mail of the notice was not received not later than three days after the date the notice was deposited in a post office or official depository under the care and custody of the United States Postal Service.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scD/s82.153/b">
<num value="b">(b)</num>
<chapeau>A budget under Subsection (a)(6) must be prepared in accordance with generally accepted accounting principles and a consideration of the physical condition of the condominium and be based on assumptions that, to the best of the declarant's knowledge and belief, are reasonable. The budget must include:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.153/1">
<num value="1">(1)</num>
<content>a statement of the amount included, or a statement that no amount is included, in the budget as a reserve; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.153/2">
<num value="2">(2)</num>
<content>the projected monthly common expense assessment for each type of unit.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scD/s82.153/c">
<num value="c">(c)</num>
<content>A declarant shall promptly amend the condominium information statement to reflect a material and substantial change in its contents. If the change may adversely affect a prospective purchaser who has received a condominium information statement, the declarant shall furnish a copy of the amendment to the prospective purchaser before closing.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1323 (H.B. 3128), Sec. 3, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 693 (H.B. 364), Sec. 4, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scD/s82.154">
<num value="82.154">Sec. 82.154.</num>
<heading>CONDOMINIUMS WITH CONVERSION BUILDINGS</heading>
<chapeau>If a building contains units that may be occupied for residential use, the condominium information statement of a condominium containing any conversion building must additionally contain:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.154/1">
<num value="1">(1)</num>
<content>a dated statement by the declarant, based on a report by an independent architect or engineer, describing the present condition of all structural components and mechanical and electrical installations material to the use and enjoyment of the building;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.154/2">
<num value="2">(2)</num>
<content>a dated statement by the declarant of the expected useful life of each item reported in Subdivision (1) or a statement that no representations are made in that regard; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.154/3">
<num value="3">(3)</num>
<content>a list of violations of building code or other governmental regulations of which the declarant has received notice and that have not been cured, together with the estimated cost of curing those violations.</content>
</paragraph>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scD/s82.155">
<num value="82.155">Sec. 82.155.</num>
<heading>CONDOMINIUM SECURITIES</heading>
<content>A declarant satisfies all requirements relating to preparation of a condominium information statement if an interest in the condominium is currently registered with the Securities and Exchange Commission of the United States and if the declarant delivers to the purchaser a copy of the public offering statement filed with the commission.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scD/s82.156">
<num value="82.156">Sec. 82.156.</num>
<heading>PURCHASER'S RIGHT TO CANCEL</heading>
<subsection identifier="/us/tx/pr/t7/c82/scD/s82.156/a">
<num value="a">(a)</num>
<content>If a purchaser of a unit from a unit owner other than a declarant has not received from the seller the declaration, bylaws, and association rules required by Section 82.157 before the purchaser executes a contract of sale or if the contract does not contain an underlined or bold-print provision acknowledging the purchaser's receipt of those documents and recommending that the purchaser read those documents before executing the contract, the purchaser may cancel the contract before the sixth day after the date the purchaser receives those documents. If a purchaser has not received a resale certificate before executing a contract of sale, the purchaser may cancel the contract before the sixth day after the date the purchaser receives the resale certificate or executes a waiver under Section 82.157, whichever occurs first.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scD/s82.156/b">
<num value="b">(b)</num>
<content>If a purchaser from a declarant has not received the condominium information statement before the purchaser executes a contract of sale or if a contract does not contain an underlined or bold-print provision acknowledging the purchaser's receipt of the condominium information statement and recommending that the purchaser read the condominium information statement before executing the contract, the purchaser may cancel the contract before the sixth day after the date the purchaser receives the condominium information statement.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scD/s82.156/c">
<num value="c">(c)</num>
<content>If a purchaser elects to cancel a contract under Subsection (a) or (b), the cancellation must be by hand-delivering written notice of cancellation to the declarant or selling unit owner or by mailing notice of cancellation by certified United States mail, return receipt requested, to the offeror or the offeror's agent for service of process within the five-day cancellation period. Cancellation is without penalty, and all payments made by the purchaser before cancellation must be refunded.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scD/s82.156/d">
<num value="d">(d)</num>
<content>A selling unit owner may not require a purchaser to close until the purchaser is given the declaration, bylaws, and any association rules. A declarant may not require a purchaser to close until a condominium information statement has been furnished to the purchaser.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scD/s82.157">
<num value="82.157">Sec. 82.157.</num>
<heading>RESALE OF UNIT</heading>
<subsection identifier="/us/tx/pr/t7/c82/scD/s82.157/a">
<num value="a">(a)</num>
<chapeau>Except as provided by Subsection (c), if a unit owner other than a declarant intends to sell a unit, before executing a contract or conveying the unit, the unit owner must furnish to the purchaser a current copy of the declaration, bylaws, any association rules, and a resale certificate that must have been prepared not earlier than three months before the date it is delivered to the purchaser. The resale certificate must be issued by the association and must contain the current operating budget of the association and statements of:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.157/1">
<num value="1">(1)</num>
<content>any right of first refusal or other restraint contained in the declaration that restricts the right to transfer a unit;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.157/2">
<num value="2">(2)</num>
<content>the amount of the periodic common expense assessment and the unpaid common expenses or special assessments currently due and payable from the selling unit owner;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.157/3">
<num value="3">(3)</num>
<content>other unpaid fees or amounts payable to the association by the selling unit owner;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.157/4">
<num value="4">(4)</num>
<content>capital expenditures, if any, approved by the association for the next 12 months;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.157/5">
<num value="5">(5)</num>
<content>the amount of reserves, if any, for capital expenditures and of portions of those reserves designated by the association for a specified project;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.157/6">
<num value="6">(6)</num>
<content>any unsatisfied judgments against the association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.157/7">
<num value="7">(7)</num>
<content>the nature of any pending suits against the association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.157/8">
<num value="8">(8)</num>
<content>insurance coverage provided for the benefit of unit owners;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.157/9">
<num value="9">(9)</num>
<content>whether the board has knowledge that any alterations or improvements to the unit or to the limited common elements assigned to that unit violate the declaration, bylaws, or association rules;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.157/10">
<num value="10">(10)</num>
<content>whether the board has received notice from a governmental authority concerning violations of health or building codes with respect to the unit, the limited common elements assigned to that unit, or any other portion of the condominium;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.157/11">
<num value="11">(11)</num>
<content>the remaining term of any leasehold estate that affects the condominium and the provisions governing an extension or renewal of the lease;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.157/12">
<num value="12">(12)</num>
<content>the name, mailing address, and telephone number of the association's managing agent, if any;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.157/13">
<num value="13">(13)</num>
<content>the association's current operating budget and balance sheet; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.157/14">
<num value="14">(14)</num>
<content>all fees payable to the association or an agent of the association that are associated with the transfer of ownership, including a description of each fee, to whom the fee is paid, and the amount of the fee.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scD/s82.157/b">
<num value="b">(b)</num>
<content>Not later than the 10th day after the date of receiving a written request by a unit owner, an association shall furnish to the selling unit owner or the owner's agent a resale certificate signed and dated by an officer or authorized agent of the association containing the information required by Subsection (a). A selling unit owner or the owner's agent is not liable to the purchaser for erroneous information provided by the association in the certificate. If an association does not furnish a resale certificate or any information required in the certificate within the 10-day period, the unit owner may provide the purchaser with a sworn affidavit signed by the unit owner in lieu of the certificate. An affidavit must state that the unit owner requested information from the association concerning its financial condition, as required by this section, and that the association did not timely provide a resale certificate or the information required in the certificate. If a unit owner has furnished an affidavit to a purchaser, the unit owner and the purchaser may agree in writing to waive the requirement to furnish a resale certificate. The association is not liable to a selling unit owner for delay or failure to furnish a resale certificate, and an officer or agent of the association is not liable for a delay or failure to furnish a certificate unless the officer or agent wilfully refuses to furnish the certificate or is grossly negligent in not furnishing the resale certificate. Failure to provide a resale certificate does not void a deed to a purchaser.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scD/s82.157/c">
<num value="c">(c)</num>
<content>If a properly executed resale certificate incorrectly states the total of delinquent sums owed by the selling unit owner to the association, the purchaser is not liable for payment of additional delinquencies that are unpaid on the date the certificate is prepared and that exceed the total sum stated in the certificate. A unit owner or the owner's agent is not liable to a purchaser for the failure or delay of the association to provide the certificate in a timely manner.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scD/s82.157/d">
<num value="d">(d)</num>
<chapeau>A resale certificate does not affect:</chapeau>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.157/1">
<num value="1">(1)</num>
<content>an association's right to recover debts or claims that arise or become due after the date the certificate is prepared; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t7/c82/scD/s82.157/2">
<num value="2">(2)</num>
<content>an association's lien on a unit securing payment of future assessments.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scD/s82.157/e">
<num value="e">(e)</num>
<content>A purchaser, lender, or title insurer who relies on a resale certificate is not liable for any debt or claim that is not disclosed in the certificate. An association may not deny the validity of any statement in the certificate.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scD/s82.157/f">
<num value="f">(f)</num>
<content>An association may charge a reasonable and necessary fee, not to exceed $375, to furnish a resale certificate under Subsection (a).</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1183 (S.B. 1168), Sec. 1, eff. September 1, 2015.
Acts 2025, 89th Leg., R.S., Ch. 10 (S.B. 711), Sec. 4, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scD/s82.158">
<num value="82.158">Sec. 82.158.</num>
<heading>ESCROW OF DEPOSITS</heading>
<content>A deposit made in connection with the purchase or reservation of a unit from a declarant shall be placed in escrow and held in this state in an account designated for that purpose by a real estate broker, an attorney, a title insurance company licensed in this state, an independent bonded escrow company, or an institution whose accounts are insured by a governmental agency or instrumentality until delivered to the declarant at closing, delivered to the declarant because of the purchaser's default under a contract to purchase the unit, or refunded to the purchaser. Escrow deposits may be placed in interest-bearing accounts, and the interest is payable as may be agreed in writing between the declarant and the purchaser.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scD/s82.159">
<num value="82.159">Sec. 82.159.</num>
<heading>RELEASE OF LIENS</heading>
<content>Before conveying real property to an association, a declarant shall have that real property released from all liens the foreclosure of which would deprive unit owners of any right of access to or easement of support of the owners' units, and all other liens on that real property unless the condominium information statement describes certain real property that may be conveyed subject to liens in specified amounts.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scD/s82.160">
<num value="82.160">Sec. 82.160.</num>
<heading>CONVERSION BUILDINGS</heading>
<subsection identifier="/us/tx/pr/t7/c82/scD/s82.160/a">
<num value="a">(a)</num>
<content>A declarant of a condominium containing a conversion building shall give each residential tenant or subtenant in possession of a portion of a conversion building notice of the conversion at least 60 days before the date the declarant will require the tenant or subtenant in possession to vacate. The notice must state generally the rights of tenants and subtenants under this section and shall be hand-delivered to the unit or mailed by certified United States mail, return receipt requested, to the tenant or subtenant at the address of the unit or any other mailing address provided by the tenant or subtenant. The declarant may not require a tenant or subtenant to vacate on less than 60 days' notice, except for nonpayment of rent, waste, or conduct that violates the rental agreement or is illegal, and the terms of a tenancy may not be altered during that period. Failure of a declarant to give notice as required by this section is a defense to an action for possession.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scD/s82.160/b">
<num value="b">(b)</num>
<content>If a notice of conversion specifies a date by which a unit or proposed unit must be vacated and otherwise complies with Section 24.005, the notice also constitutes legal notice to vacate on that date for purposes of Section 24.005. A declarant may not terminate a lease in violation of its terms.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scD/s82.160/c">
<num value="c">(c)</num>
<content>Unless expressly authorized by a rental agreement, a declarant may not make substantial alterations to the interior of a leased premises for purposes of a condominium conversion.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scD/s82.161">
<num value="82.161">Sec. 82.161.</num>
<heading>EFFECT OF VIOLATIONS ON RIGHTS OF ACTION AND ATTORNEY'S FEES</heading>
<subsection identifier="/us/tx/pr/t7/c82/scD/s82.161/a">
<num value="a">(a)</num>
<content>If a declarant or any other person subject to this chapter violates this chapter, the declaration, or the bylaws, any person or class of persons adversely affected by the violation has a claim for appropriate relief.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scD/s82.161/b">
<num value="b">(b)</num>
<content>The prevailing party in an action to enforce the declaration, bylaws, or rules is entitled to reasonable attorney's fees and costs of litigation from the nonprevailing party.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scD/s82.162">
<num value="82.162">Sec. 82.162.</num>
<heading>LABELING OF PROMOTIONAL MATERIAL</heading>
<content>If any improvement contemplated in a condominium is labeled "NEED NOT BE BUILT" on a plat or plan or is to be located within a portion of a condominium with respect to which the declarant has reserved a development right, no promotional material that describes or depicts the improvement may be displayed or delivered to prospective purchasers unless the description or depiction of the improvement is conspicuously labeled or identified as "NEED NOT BE BUILT."</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scD/s82.163">
<num value="82.163">Sec. 82.163.</num>
<heading>DECLARANT'S OBLIGATION TO COMPLETE AND RESTORE</heading>
<content>The declarant shall complete all improvements labeled "MUST BE BUILT" on plats or plans. The declarant is subject to liability for the prompt repair and restoration, to a condition compatible with the remainder of the condominium, of any portion of the condominium affected by the exercise of rights reserved pursuant to or created under this chapter.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t7/c82/scD/s82.164">
<num value="82.164">Sec. 82.164.</num>
<heading>LOANS AS ELIGIBLE INVESTMENTS</heading>
<subsection identifier="/us/tx/pr/t7/c82/scD/s82.164/a">
<num value="a">(a)</num>
<content>A loan on a condominium unit and the undivided interest in the common elements is an eligible investment for a bank, savings and loan association, trust company, life insurance company, or other lending institution that is authorized to make real property loans, and for an administrator, guardian, executor, trustee, individual, partnership, corporation, or other fiduciary that is authorized to make real property loans. In determining eligibility, the existence of a prior lien for taxes, assessments, or other similar charges not yet delinquent may not be considered in determining whether a mortgage or deed of trust on the security is a first lien. This section does not change any provision of law that would otherwise be applicable that limits mortgage investments based on a special fraction or percentage of the value of the mortgaged property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t7/c82/scD/s82.164/b">
<num value="b">(b)</num>
<content>An association's lien for assessments does not make a condominium unit ineligible for loans for which the unit would otherwise qualify.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994.</sourceCredit>
</section>
</subchapter>
</chapter>
<num value="8">TITLE 8.</num>
<heading>LANDLORD AND TENANT</heading>
<chapter identifier="/us/tx/pr/t8/c91">
<num value="91">CHAPTER 91.</num>
<heading>PROVISIONS GENERALLY APPLICABLE TO LANDLORDS AND TENANTS</heading>
<section identifier="/us/tx/pr/t8/c91/s91.001">
<num value="91.001">Sec. 91.001.</num>
<heading>NOTICE FOR TERMINATING CERTAIN TENANCIES</heading>
<subsection identifier="/us/tx/pr/t8/c91/s91.001/a">
<num value="a">(a)</num>
<content>A monthly tenancy or a tenancy from month to month may be terminated by the tenant or the landlord giving notice of termination to the other.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c91/s91.001/b">
<num value="b">(b)</num>
<chapeau>If a notice of termination is given under Subsection (a) and if the rent-paying period is at least one month, the tenancy terminates on whichever of the following days is the later:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c91/s91.001/1">
<num value="1">(1)</num>
<content>the day given in the notice for termination; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c91/s91.001/2">
<num value="2">(2)</num>
<content>one month after the day on which the notice is given.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c91/s91.001/c">
<num value="c">(c)</num>
<chapeau>If a notice of termination is given under Subsection (a) and if the rent-paying period is less than a month, the tenancy terminates on whichever of the following days is the later:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c91/s91.001/1">
<num value="1">(1)</num>
<content>the day given in the notice for termination; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c91/s91.001/2">
<num value="2">(2)</num>
<content>the day following the expiration of the period beginning on the day on which notice is given and extending for a number of days equal to the number of days in the rent-paying period.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c91/s91.001/d">
<num value="d">(d)</num>
<content>If a tenancy terminates on a day that does not correspond to the beginning or end of a rent-paying period, the tenant is liable for rent only up to the date of termination.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c91/s91.001/e">
<num value="e">(e)</num>
<chapeau>Subsections (a), (b), (c), and (d) do not apply if:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c91/s91.001/1">
<num value="1">(1)</num>
<content>a landlord and a tenant have agreed in an instrument signed by both parties on a different period of notice to terminate the tenancy or that no notice is required; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c91/s91.001/2">
<num value="2">(2)</num>
<content>there is a breach of contract recognized by law.</content>
</paragraph>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3625, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1985, 69th Leg., ch. 200, Sec. 3, eff. Aug. 26, 1985.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c91/s91.003">
<num value="91.003">Sec. 91.003.</num>
<heading>TERMINATION OF LEASE BECAUSE OF PUBLIC INDECENCY CONVICTION</heading>
<subsection identifier="/us/tx/pr/t8/c91/s91.003/a">
<num value="a">(a)</num>
<chapeau>A landlord may terminate a lease executed or renewed after June 15, 1981, if:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c91/s91.003/1">
<num value="1">(1)</num>
<content>the tenant or occupant of the leasehold uses the property for an activity for which the tenant or occupant or for which an agent or employee of the tenant or occupant is convicted under Chapter 43, Penal Code, as amended; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c91/s91.003/2">
<num value="2">(2)</num>
<content>the convicted person has exhausted or abandoned all avenues of direct appeal from the conviction.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c91/s91.003/b">
<num value="b">(b)</num>
<content>The fee owner or an intermediate lessor terminates the lease by giving written notice of termination to the tenant or occupant within six months after the right to terminate arises under this section. The right to possess the property reverts to the landlord on the 10th day after the date the notice is given.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c91/s91.003/c">
<num value="c">(c)</num>
<content>This section applies regardless of a term of the lease to the contrary.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3627, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c91/s91.004">
<num value="91.004">Sec. 91.004.</num>
<heading>LANDLORD'S BREACH OF LEASE; LIEN</heading>
<subsection identifier="/us/tx/pr/t8/c91/s91.004/a">
<num value="a">(a)</num>
<content>If the landlord of a tenant who is not in default under a lease fails to comply in any respect with the lease agreement, the landlord is liable to the tenant for damages resulting from the failure.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c91/s91.004/b">
<num value="b">(b)</num>
<content>To secure payment of the damages, the tenant has a lien on the landlord's nonexempt property in the tenant's possession and on the rent due to the landlord under the lease.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3627, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c91/s91.005">
<num value="91.005">Sec. 91.005.</num>
<heading>SUBLETTING PROHIBITED</heading>
<content>During the term of a lease, the tenant may not rent the leasehold to any other person without the prior consent of the landlord.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3627, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c91/s91.006">
<num value="91.006">Sec. 91.006.</num>
<heading>LANDLORD'S DUTY TO MITIGATE DAMAGES</heading>
<subsection identifier="/us/tx/pr/t8/c91/s91.006/a">
<num value="a">(a)</num>
<content>A landlord has a duty to mitigate damages if a tenant abandons the leased premises in violation of the lease.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c91/s91.006/b">
<num value="b">(b)</num>
<content>A provision of a lease that purports to waive a right or to exempt a landlord from a liability or duty under this section is void.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1205, Sec. 8, eff. Sept. 1, 1997.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t8/c92">
<num value="92">CHAPTER 92.</num>
<heading>RESIDENTIAL TENANCIES</heading>
<subchapter identifier="/us/tx/pr/t8/c92/scA">
<num value="A">SUBCHAPTER A.</num>
<heading>GENERAL PROVISIONS</heading>
<section identifier="/us/tx/pr/t8/c92/scA/s92.001">
<num value="92.001">Sec. 92.001.</num>
<heading>DEFINITIONS</heading>
<chapeau>Except as otherwise provided by this chapter, in this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.001/1">
<num value="1">(1)</num>
<content>"Dwelling" means one or more rooms rented for use as a permanent residence under a single lease to one or more tenants.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.001/2">
<num value="2">(2)</num>
<content>"Landlord" means the owner, lessor, or sublessor of a dwelling, but does not include a manager or agent of the landlord unless the manager or agent purports to be the owner, lessor, or sublessor in an oral or written lease.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.001/3">
<num value="3">(3)</num>
<content>"Lease" means any written or oral agreement between a landlord and tenant that establishes or modifies the terms, conditions, rules, or other provisions regarding the use and occupancy of a dwelling.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.001/4">
<num value="4">(4)</num>
<content>"Normal wear and tear" means deterioration that results from the intended use of a dwelling, including, for the purposes of Subchapters B and D, breakage or malfunction due to age or deteriorated condition, but the term does not include deterioration that results from negligence, carelessness, accident, or abuse of the premises, equipment, or chattels by the tenant, by a member of the tenant's household, or by a guest or invitee of the tenant.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.001/5">
<num value="5">(5)</num>
<content>"Premises" means a tenant's rental unit, any area or facility the lease authorizes the tenant to use, and the appurtenances, grounds, and facilities held out for the use of tenants generally.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.001/6">
<num value="6">(6)</num>
<content>"Tenant" means a person who is authorized by a lease to occupy a dwelling to the exclusion of others and, for the purposes of Subchapters D, E, and F, who is obligated under the lease to pay rent.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3630, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1993, 73rd Leg., ch. 48, Sec. 12, eff. Sept. 1, 1993; Acts 1993, 73rd Leg., ch. 357, Sec. 1, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scA/s92.002">
<num value="92.002">Sec. 92.002.</num>
<heading>APPLICATION</heading>
<content>This chapter applies only to the relationship between landlords and tenants of residential rental property.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3631, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scA/s92.003">
<num value="92.003">Sec. 92.003.</num>
<heading>LANDLORD'S AGENT FOR SERVICE OF PROCESS</heading>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.003/a">
<num value="a">(a)</num>
<content>In a lawsuit by a tenant under either a written or oral lease for a dwelling or in a suit to enforce a legal obligation of the owner as landlord of the dwelling, the owner's agent for service of process is determined according to this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.003/b">
<num value="b">(b)</num>
<content>If written notice of the name and business street address of the company that manages the dwelling has been given to the tenant, the management company is the owner's sole agent for service of process.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.003/c">
<num value="c">(c)</num>
<content>If Subsection (b) does not apply, the owner's management company, on-premise manager, or rent collector serving the dwelling is the owner's authorized agent for service of process unless the owner's name and business street address have been furnished in writing to the tenant.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3631, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scA/s92.004">
<num value="92.004">Sec. 92.004.</num>
<heading>HARASSMENT</heading>
<content>A party who files or prosecutes a suit under Subchapter B, D, E, or F in bad faith or for purposes of harassment is liable to the defendant for one month's rent plus $100 and for attorney's fees.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3631, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scA/s92.005">
<num value="92.005">Sec. 92.005.</num>
<heading>ATTORNEY'S FEES</heading>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.005/a">
<num value="a">(a)</num>
<content>A party who prevails in a suit brought under this subchapter or Subchapter B, E, or F may recover the party's costs of court and reasonable attorney's fees in relation to work reasonably expended.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.005/b">
<num value="b">(b)</num>
<content>This section does not authorize a recovery of attorney's fees in an action brought under Subchapter E or F for damages that relate to or arise from property damage, personal injury, or a criminal act.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3631, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1993, 73rd Leg., ch. 357, Sec. 2, eff. Sept. 1, 1993; Acts 1999, 76th Leg., ch. 1439, Sec. 2, eff. Sept. 1, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scA/s92.006">
<num value="92.006">Sec. 92.006.</num>
<heading>WAIVER OR EXPANSION OF DUTIES AND REMEDIES</heading>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.006/a">
<num value="a">(a)</num>
<content>A landlord's duty or a tenant's remedy concerning security deposits, security devices, the landlord's disclosure of ownership and management, or utility cutoffs, as provided by Subchapter C, D, E, or G, respectively, may not be waived. A landlord's duty to install a smoke alarm under Subchapter F may not be waived, nor may a tenant waive a remedy for the landlord's noninstallation or waive the tenant's limited right of installation and removal. The landlord's duty of inspection and repair of smoke alarms under Subchapter F may be waived only by written agreement.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.006/b">
<num value="b">(b)</num>
<content>A landlord's duties and the tenant's remedies concerning security devices, the landlord's disclosure of ownership and management, or smoke alarms, as provided by Subchapter D, E, or F, respectively, may be enlarged only by specific written agreement.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.006/c">
<num value="c">(c)</num>
<content>A landlord's duties and the tenant's remedies under Subchapter B, which covers conditions materially affecting the physical health or safety of the ordinary tenant, may not be waived except as provided in Subsections (d), (e), and (f) of this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.006/d">
<num value="d">(d)</num>
<content>A landlord and a tenant may agree for the tenant to repair or remedy, at the landlord's expense, any condition covered by Subchapter B.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.006/e">
<num value="e">(e)</num>
<chapeau>A landlord and a tenant may agree for the tenant to repair or remedy, at the tenant's expense, any condition covered by Subchapter B if all of the following conditions are met:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.006/1">
<num value="1">(1)</num>
<content>at the beginning of the lease term the landlord owns only one rental dwelling;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.006/2">
<num value="2">(2)</num>
<content>at the beginning of the lease term the dwelling is free from any condition which would materially affect the physical health or safety of an ordinary tenant;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.006/3">
<num value="3">(3)</num>
<content>at the beginning of the lease term the landlord has no reason to believe that any condition described in Subdivision (2) of this subsection is likely to occur or recur during the tenant's lease term or during a renewal or extension; and</content>
<continuation>(4)(A) the lease is in writing;</continuation>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.006/B">
<num value="B">(B)</num>
<content>the agreement for repairs by the tenant is either underlined or printed in boldface in the lease or in a separate written addendum;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.006/C">
<num value="C">(C)</num>
<content>the agreement is specific and clear; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.006/D">
<num value="D">(D)</num>
<content>the agreement is made knowingly, voluntarily, and for consideration.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.006/f">
<num value="f">(f)</num>
<chapeau>A landlord and tenant may agree that, except for those conditions caused by the negligence of the landlord, the tenant has the duty to pay for repair of the following conditions that may occur during the lease term or a renewal or extension:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.006/1">
<num value="1">(1)</num>
<content>damage from wastewater stoppages caused by foreign or improper objects in lines that exclusively serve the tenant's dwelling;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.006/2">
<num value="2">(2)</num>
<content>damage to doors, windows, or screens; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.006/3">
<num value="3">(3)</num>
<content>damage from windows or doors left open.</content>
<continuation>This subsection shall not affect the landlord's duty under Subchapter B to repair or remedy, at the landlord's expense, wastewater stoppages or backups caused by deterioration, breakage, roots, ground conditions, faulty construction, or malfunctioning equipment. A landlord and tenant may agree to the provisions of this subsection only if the agreement meets the requirements of Subdivision (4) of Subsection (e) of this section.</continuation>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.006/g">
<num value="g">(g)</num>
<content>A tenant's right to vacate a dwelling and avoid liability under Section 92.016 or 92.017 may not be waived by a tenant or a landlord, except as provided by those sections.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.006/h">
<num value="h">(h)</num>
<content>A tenant's right to a jury trial in an action brought under this chapter may not be waived in a lease or other written agreement.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3631, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 650, Sec. 1, eff. Aug. 28, 1989.
Amended by:
Acts 2005, 79th Leg., Ch. 348 (S.B. 1186), Sec. 2, eff. January 1, 2006.
Acts 2011, 82nd Leg., R.S., Ch. 257 (H.B. 1168), Sec. 1, eff. September 1, 2011.
Acts 2015, 84th Leg., R.S., Ch. 1198 (S.B. 1367), Sec. 3, eff. January 1, 2016.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scA/s92.007">
<num value="92.007">Sec. 92.007.</num>
<heading>VENUE</heading>
<content>Venue for an action under this chapter is governed by Section 15.0115, Civil Practice and Remedies Code.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3632, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 332, Sec. 1, eff. Sept. 1, 1989; Acts 1989, 71st Leg., ch. 650, Sec. 2, eff. Aug. 28, 1989; Acts 1993, 73rd Leg., ch. 48, Sec. 13, eff. Sept. 1, 1993; Acts 1995, 74th Leg., ch. 138, Sec. 9, eff. Aug. 28, 1995.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scA/s92.008">
<num value="92.008">Sec. 92.008.</num>
<heading>INTERRUPTION OF UTILITIES</heading>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.008/a">
<num value="a">(a)</num>
<content>A landlord or a landlord's agent may not interrupt or cause the interruption of utility service paid for directly to the utility company by a tenant unless the interruption results from bona fide repairs, construction, or an emergency.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.008/b">
<num value="b">(b)</num>
<content>Except as provided by this section, a landlord may not interrupt or cause the interruption of water, wastewater, gas, or electric service furnished to a tenant by the landlord as an incident of the tenancy or by other agreement unless the interruption results from bona fide repairs, construction, or an emergency.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.008/c">
<num value="c">(c)</num>
<content>Repealed by Acts 2009, 81st Leg., R.S., Ch. 1112, Sec. 3, eff. January 1, 2010.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.008/d">
<num value="d">(d)</num>
<content>Repealed by Acts 2009, 81st Leg., R.S., Ch. 1112, Sec. 3, eff. January 1, 2010.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.008/e">
<num value="e">(e)</num>
<content>Repealed by Acts 2009, 81st Leg., R.S., Ch. 1112, Sec. 3, eff. January 1, 2010.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.008/f">
<num value="f">(f)</num>
<chapeau>If a landlord or a landlord's agent violates this section, the tenant may:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.008/1">
<num value="1">(1)</num>
<content>either recover possession of the premises or terminate the lease; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.008/2">
<num value="2">(2)</num>
<content>in addition to other remedies available under law, recover from the landlord an amount equal to the sum of the tenant's actual damages, one month's rent plus $1,000, reasonable attorney's fees, and court costs, less any delinquent rents or other sums for which the tenant is liable to the landlord.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.008/g">
<num value="g">(g)</num>
<content>A provision of a lease that purports to waive a right or to exempt a party from a liability or duty under this section is void.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.008/h">
<num value="h">(h)</num>
<chapeau>Subject to Subsections (i), (j), (k), (m), and (o), a landlord who submeters electricity or allocates or prorates nonsubmetered master metered electricity may interrupt or cause the interruption of electric service for nonpayment by the tenant of an electric bill issued to the tenant if:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.008/1">
<num value="1">(1)</num>
<content>the landlord's right to interrupt electric service is provided by a written lease entered into by the tenant;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.008/2">
<num value="2">(2)</num>
<content>the tenant's electric bill is not paid on or before the 12th day after the date the electric bill is issued;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.008/3">
<num value="3">(3)</num>
<chapeau>advance written notice of the proposed interruption is delivered to the tenant by mail or hand delivery separately from any other written content that:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.008/A">
<num value="A">(A)</num>
<content>prominently displays the words "electricity termination notice" or similar language underlined or in bold;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.008/B">
<num value="B">(B)</num>
<content>includes:</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.008/i">
<num value="i">(i)</num>
<chapeau>the date on which the electric service will be interrupted;</chapeau>
<clause identifier="/us/tx/pr/t8/c92/scA/s92.008/ii">
<num value="ii">(ii)</num>
<content>a location where the tenant may go during the landlord's normal business hours to make arrangements to pay the bill to avoid interruption of electric service;</content>
</clause>
<clause identifier="/us/tx/pr/t8/c92/scA/s92.008/iii">
<num value="iii">(iii)</num>
<content>the amount that must be paid to avoid interruption of electric service;</content>
</clause>
<clause identifier="/us/tx/pr/t8/c92/scA/s92.008/iv">
<num value="iv">(iv)</num>
<content>a statement providing that when the tenant makes a payment to avoid interruption of electric service, the landlord may not apply that payment to rent or other amounts owed under the lease;</content>
</clause>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.008/v">
<num value="v">(v)</num>
<chapeau>a statement providing that the landlord may not evict a tenant for failure to pay an electric bill when the landlord has interrupted the tenant's electric service unless the tenant fails to pay for the electric service after the electric service has been interrupted for at least two days, not including weekends or state or federal holidays; and</chapeau>
<clause identifier="/us/tx/pr/t8/c92/scA/s92.008/vi">
<num value="vi">(vi)</num>
<content>a description of the tenant's rights under Subsection (j) to avoid interruption of electric service if the interruption will cause a person residing in the tenant's dwelling to become seriously ill or more seriously ill; and</content>
</clause>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.008/C">
<num value="C">(C)</num>
<content>is delivered not earlier than the first day after the bill is past due or later than the fifth day before the interruption date stated in the notice; and</content>
</subparagraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.008/4">
<num value="4">(4)</num>
<chapeau>the landlord, at the same time the service is interrupted, hand delivers or places on the tenant's front door a written notice that:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.008/A">
<num value="A">(A)</num>
<content>prominently displays the words "electricity termination notice" or similar language underlined or in bold; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.008/B">
<num value="B">(B)</num>
<content>includes:</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.008/i">
<num value="i">(i)</num>
<chapeau>the date the electric service has been interrupted;</chapeau>
<clause identifier="/us/tx/pr/t8/c92/scA/s92.008/ii">
<num value="ii">(ii)</num>
<content>a location where the tenant may go during the landlord's normal business hours to make arrangements to pay the bill to reestablish interrupted electric service;</content>
</clause>
<clause identifier="/us/tx/pr/t8/c92/scA/s92.008/iii">
<num value="iii">(iii)</num>
<content>the amount that must be paid to reestablish electric service;</content>
</clause>
<clause identifier="/us/tx/pr/t8/c92/scA/s92.008/iv">
<num value="iv">(iv)</num>
<content>a statement providing that when the tenant makes a payment to reestablish electric service, a landlord may not apply that payment to rent or other amounts owed under the lease;</content>
</clause>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.008/v">
<num value="v">(v)</num>
<chapeau>a statement providing that the landlord may not evict a tenant for failure to pay an electric bill when the landlord has interrupted the tenant's electric service unless the tenant fails to pay for the electric service after the electric service has been interrupted for at least two days, not including weekends or state or federal holidays; and</chapeau>
<clause identifier="/us/tx/pr/t8/c92/scA/s92.008/vi">
<num value="vi">(vi)</num>
<content>a description of the tenant's rights under Subsection (j) to avoid interruption of electric service if the interruption will cause a person residing in the tenant's dwelling to become seriously ill or more seriously ill.</content>
</clause>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.008/i">
<num value="i">(i)</num>
<chapeau>Unless a dangerous condition exists or the tenant requests disconnection, a landlord may not interrupt or cause the interruption of electric service under Subsection (h) on a day:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.008/1">
<num value="1">(1)</num>
<content>on which the landlord or a representative of the landlord is not available to collect electric bill payments and reestablish electric service;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.008/2">
<num value="2">(2)</num>
<content>that immediately precedes a day described by Subdivision (1); or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.008/3">
<num value="3">(3)</num>
<chapeau>on which:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.008/A">
<num value="A">(A)</num>
<content>the previous day's highest temperature did not exceed 32 degrees Fahrenheit and the temperature is predicted to remain at or below that level for the next 24 hours according to the nearest National Weather Service reports; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.008/B">
<num value="B">(B)</num>
<content>the National Weather Service issues a heat advisory for a county in which the premises is located or has issued such an advisory on one of the two preceding days.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.008/j">
<num value="j">(j)</num>
<chapeau>A landlord may not interrupt or cause the interruption of electric service under Subsection (h) of a tenant who, before the interruption date specified in the notice required by Subsection (h)(3), has:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.008/1">
<num value="1">(1)</num>
<content>established that the interruption will cause a person residing in the tenant's dwelling to become seriously ill or more seriously ill by having a physician, nurse, nurse practitioner, or other similar licensed health care practitioner attending to the person who is or may become ill provide a written statement to the landlord or a representative of the landlord stating that the person will become seriously ill or more seriously ill if the electric service is interrupted; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.008/2">
<num value="2">(2)</num>
<content>entered into a deferred payment plan that complies with Subsection (l).</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.008/k">
<num value="k">(k)</num>
<chapeau>If a tenant has established, in accordance with Subsection (j), the circumstances necessary to avoid electric service interruption under that subsection, the landlord may not interrupt or cause the interruption of the tenant's electric service under Subsection (h) before:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.008/1">
<num value="1">(1)</num>
<content>the 63rd day after the date those circumstances are established; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.008/2">
<num value="2">(2)</num>
<content>an earlier date agreed to by the landlord and the tenant.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.008/l">
<num value="l">(l)</num>
<content>A deferred payment plan for the purposes of this section must be in writing. The deferred payment plan must allow the tenant to pay the outstanding electric bill in installments that extend beyond the due date of the next electric bill and must provide that the delinquent amount may be paid in equal installments over a period equal to at least three electric service billing cycles.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.008/m">
<num value="m">(m)</num>
<content>A landlord may not interrupt or cause the interruption of electric service under Subsection (h) to a tenant who receives energy assistance for a billing period during which the landlord receives a pledge, letter of intent, purchase order, or other notification that the energy assistance provider is forwarding sufficient payment to continue the electric service.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.008/n">
<num value="n">(n)</num>
<content>If a delinquent electric bill is paid, or a deferred payment plan is entered into, during normal business hours, the landlord shall reconnect the tenant's electric service within two hours of payment or entry into the deferred payment plan.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.008/o">
<num value="o">(o)</num>
<chapeau>A landlord may not interrupt or cause the interruption of electric service under Subsection (h) for any of the following reasons:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.008/1">
<num value="1">(1)</num>
<content>a delinquency in payment for electric service furnished to a previous tenant;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.008/2">
<num value="2">(2)</num>
<content>failure to pay non-electric bills, rent, or other fees;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.008/3">
<num value="3">(3)</num>
<content>failure to pay electric bills that are six or more months delinquent; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.008/4">
<num value="4">(4)</num>
<content>failure to pay an electric bill disputed by the tenant, unless the landlord has conducted an investigation as required by the particular case and reported the results in writing to the tenant.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.008/p">
<num value="p">(p)</num>
<content>A landlord who provides notice in accordance with Subsection (h) may not apply a payment made by a tenant to avoid interruption of electric service or reestablish electric service to rent or any other amounts owed under the lease.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.008/q">
<num value="q">(q)</num>
<content>The landlord may not evict a tenant for failure to pay an electric bill when the landlord has interrupted the tenant's electric service under Subsection (h) unless the tenant fails to pay for the electric service after the electric service has been interrupted for at least two days, not including weekends or state or federal holidays.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.008/r">
<num value="r">(r)</num>
<content>Subject to this subsection, a reconnection fee may be applied if electric service to the tenant is disconnected for nonpayment of bills under Subsection (h). The reconnection fee must be computed based on the average cost to the landlord for the expenses associated with the reconnection, but may not exceed $10. A reconnection fee may not be applied unless agreed to by the tenant in a written lease that states the exact dollar amount of the reconnection fee. A fee may not be applied to a deferred payment plan entered into under this section.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3632, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1985, 69th Leg., ch. 200, Sec. 4, eff. Aug. 26, 1985. Renumbered from Sec. 91.002 by Acts 1987, 70th Leg., ch. 683, Sec. 2, eff. Aug. 31, 1987. Amended as Sec. 91.002 by Acts 1987, 70th Leg., ch. 826, Sec. 1, eff. Aug. 31, 1987. Renumbered from Sec. 91.002 and amended by Acts 1989, 71st Leg., ch. 689, Sec. 1, 3, eff. Sept. 1, 1989. Amended by Acts 1995, 74th Leg., ch. 869, Sec. 1, eff. Jan. 1, 1996; Acts 1995, 74th Leg., ch. 952, Sec. 1, eff. Sept. 1, 1995.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1112 (H.B. 882), Sec. 1, eff. January 1, 2010.
Acts 2009, 81st Leg., R.S., Ch. 1112 (H.B. 882), Sec. 3, eff. January 1, 2010.
Acts 2013, 83rd Leg., R.S., Ch. 899 (H.B. 1086), Sec. 1, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scA/s92.0081">
<num value="92.0081">Sec. 92.0081.</num>
<heading>REMOVAL OF PROPERTY AND EXCLUSION OF RESIDENTIAL TENANT</heading>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0081/a">
<num value="a">(a)</num>
<content>A landlord may not remove a door, window, or attic hatchway cover or a lock, latch, hinge, hinge pin, doorknob, or other mechanism connected to a door, window, or attic hatchway cover from premises leased to a tenant or remove furniture, fixtures, or appliances furnished by the landlord from premises leased to a tenant unless the landlord removes the item for a bona fide repair or replacement. If a landlord removes any of the items listed in this subsection for a bona fide repair or replacement, the repair or replacement must be promptly performed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0081/b">
<num value="b">(b)</num>
<chapeau>A landlord may not intentionally prevent a tenant from entering the leased premises except by judicial process unless the exclusion results from:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0081/1">
<num value="1">(1)</num>
<content>bona fide repairs, construction, or an emergency;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0081/2">
<num value="2">(2)</num>
<content>removing the contents of premises abandoned by a tenant; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0081/3">
<num value="3">(3)</num>
<content>changing the door locks on the door to the tenant's individual unit of a tenant who is delinquent in paying at least part of the rent.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0081/c">
<num value="c">(c)</num>
<chapeau>If a landlord or a landlord's agent changes the door lock of a tenant who is delinquent in paying rent, the landlord or the landlord's agent must place a written notice on the tenant's front door stating:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0081/1">
<num value="1">(1)</num>
<content>an on-site location where the tenant may go 24 hours a day to obtain the new key or a telephone number that is answered 24 hours a day that the tenant may call to have a key delivered within two hours after calling the number;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0081/2">
<num value="2">(2)</num>
<content>the fact that the landlord must provide the new key to the tenant at any hour, regardless of whether or not the tenant pays any of the delinquent rent; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0081/3">
<num value="3">(3)</num>
<content>the amount of rent and other charges for which the tenant is delinquent.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0081/d">
<num value="d">(d)</num>
<chapeau>A landlord may not intentionally prevent a tenant from entering the leased premises under Subsection (b)(3) unless:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0081/1">
<num value="1">(1)</num>
<content>the landlord's right to change the locks because of a tenant's failure to timely pay rent is placed in the lease;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0081/2">
<num value="2">(2)</num>
<content>the tenant is delinquent in paying all or part of the rent; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0081/3">
<num value="3">(3)</num>
<chapeau>the landlord has locally mailed not later than the fifth calendar day before the date on which the door locks are changed or hand-delivered to the tenant or posted on the inside of the main entry door of the tenant's dwelling not later than the third calendar day before the date on which the door locks are changed a written notice stating:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.0081/A">
<num value="A">(A)</num>
<content>the earliest date that the landlord proposes to change the door locks;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.0081/B">
<num value="B">(B)</num>
<content>the amount of rent the tenant must pay to prevent changing of the door locks;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.0081/C">
<num value="C">(C)</num>
<content>the name and street address of the individual to whom, or the location of the on-site management office at which, the delinquent rent may be discussed or paid during the landlord's normal business hours; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.0081/D">
<num value="D">(D)</num>
<content>in underlined or bold print, the tenant's right to receive a key to the new lock at any hour, regardless of whether the tenant pays the delinquent rent.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0081/e">
<num value="e">(e)</num>
<content>A landlord may not change the locks on the door of a tenant's dwelling under Subsection (b)(3) on a day, or on a day immediately before a day, on which the landlord or other designated individual is not available, or on which any on-site management office is not open, for the tenant to tender the delinquent rent.</content>
<continuation>(e-1) A landlord who changes the locks or otherwise prevents a tenant from entering the tenant's individual rental unit may not change the locks or otherwise prevent a tenant from entering a common area of residential rental property.</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0081/f">
<num value="f">(f)</num>
<content>A landlord who intentionally prevents a tenant from entering the tenant's dwelling under Subsection (b)(3) must provide the tenant with a key to the changed lock on the dwelling without regard to whether the tenant pays the delinquent rent.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0081/g">
<num value="g">(g)</num>
<content>If a landlord arrives at the dwelling in a timely manner in response to a tenant's telephone call to the number contained in the notice as described by Subsection (c)(1) and the tenant is not present to receive the key to the changed lock, the landlord shall leave a notice on the front door of the dwelling stating the time the landlord arrived with the key and the street address to which the tenant may go to obtain the key during the landlord's normal office hours.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0081/h">
<num value="h">(h)</num>
<chapeau>If a landlord violates this section, the tenant may:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0081/1">
<num value="1">(1)</num>
<content>either recover possession of the premises or terminate the lease; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0081/2">
<num value="2">(2)</num>
<content>recover from the landlord a civil penalty of one month's rent plus $1,000, actual damages, court costs, and reasonable attorney's fees in an action to recover property damages, actual expenses, or civil penalties, less any delinquent rent or other sums for which the tenant is liable to the landlord.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0081/i">
<num value="i">(i)</num>
<content>If a landlord violates Subsection (f), the tenant may recover, in addition to the remedies provided by Subsection (h), an additional civil penalty of one month's rent.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0081/j">
<num value="j">(j)</num>
<content>A provision of a lease that purports to waive a right or to exempt a party from a liability or duty under this section is void.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0081/k">
<num value="k">(k)</num>
<chapeau>A landlord may not change the locks on the door of a tenant's dwelling under Subsection (b)(3):</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0081/1">
<num value="1">(1)</num>
<content>when the tenant or any other legal occupant is in the dwelling; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0081/2">
<num value="2">(2)</num>
<content>more than once during a rental payment period.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0081/l">
<num value="l">(l)</num>
<content>This section does not affect the ability of a landlord to pursue other available remedies, including the remedies provided by Chapter 24.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3632, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1985, 69th Leg., ch. 200, Sec. 4, eff. Aug. 26, 1985. Renumbered from Sec. 91.002 by Acts 1987, 70th Leg., ch. 683, Sec. 2, eff. Aug. 31, 1987. Amended as Sec. 91.002 by Acts 1987, 70th Leg., ch. 826, Sec. 1, eff. Aug. 31, 1987. Renumbered from Sec. 91.002 and amended by Acts 1989, 71st Leg., ch. 689, Sec. 1, 3, eff. Sept. 1, 1989. Redesignated from Property Code Sec. 92.008(b) to (f) and amended by Acts 1995, 74th Leg., ch. 869, Sec. 1, eff. Jan. 1, 1996; Acts 1995, 74th Leg., ch. 952, Sec. 1, Sept. 1, 1995.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 917 (H.B. 3101), Sec. 1, eff. January 1, 2008.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scA/s92.009">
<num value="92.009">Sec. 92.009.</num>
<heading>RESIDENTIAL TENANT'S RIGHT OF REENTRY AFTER UNLAWFUL LOCKOUT</heading>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.009/a">
<num value="a">(a)</num>
<content>If a landlord has locked a tenant out of leased premises in violation of Section 92.0081, the tenant may recover possession of the premises as provided by this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.009/b">
<num value="b">(b)</num>
<content>The tenant must file with the justice court in the precinct in which the rental premises are located a sworn complaint for reentry, specifying the facts of the alleged unlawful lockout by the landlord or the landlord's agent. The tenant must also state orally under oath to the justice the facts of the alleged unlawful lockout.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.009/c">
<num value="c">(c)</num>
<content>If the tenant has complied with Subsection (b) and if the justice reasonably believes an unlawful lockout has likely occurred, the justice may issue, ex parte, a writ of reentry that entitles the tenant to immediate and temporary possession of the premises, pending a final hearing on the tenant's sworn complaint for reentry.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.009/d">
<num value="d">(d)</num>
<content>The writ of reentry must be served on either the landlord or the landlord's management company, on-premises manager, or rent collector in the same manner as a writ of possession in a forcible detainer action. A sheriff or constable may use reasonable force in executing a writ of reentry under this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.009/e">
<num value="e">(e)</num>
<content>The landlord is entitled to a hearing on the tenant's sworn complaint for reentry. The writ of reentry must notify the landlord of the right to a hearing. The hearing shall be held not earlier than the first day and not later than the seventh day after the date the landlord requests a hearing.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.009/f">
<num value="f">(f)</num>
<content>If the landlord fails to request a hearing on the tenant's sworn complaint for reentry before the eighth day after the date of service of the writ of reentry on the landlord under Subsection (d), a judgment for court costs may be rendered against the landlord.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.009/g">
<num value="g">(g)</num>
<content>A party may appeal from the court's judgment at the hearing on the sworn complaint for reentry in the same manner as a party may appeal a judgment in a forcible detainer suit.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.009/h">
<num value="h">(h)</num>
<content>If a writ of possession is issued, it supersedes a writ of reentry.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.009/i">
<num value="i">(i)</num>
<content>If the landlord or the person on whom a writ of reentry is served fails to immediately comply with the writ or later disobeys the writ, the failure is grounds for contempt of court against the landlord or the person on whom the writ was served, under Section 21.002, Government Code. If the writ is disobeyed, the tenant or the tenant's attorney may file in the court in which the reentry action is pending an affidavit stating the name of the person who has disobeyed the writ and describing the acts or omissions constituting the disobedience. On receipt of an affidavit, the justice shall issue a show cause order, directing the person to appear on a designated date and show cause why he should not be adjudged in contempt of court. If the justice finds, after considering the evidence at the hearing, that the person has directly or indirectly disobeyed the writ, the justice may commit the person to jail without bail until the person purges himself of the contempt in a manner and form as the justice may direct. If the person disobeyed the writ before receiving the show cause order but has complied with the writ after receiving the order, the justice may find the person in contempt and assess punishment under Section 21.002(c), Government Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.009/j">
<num value="j">(j)</num>
<content>This section does not affect a tenant's right to pursue a separate cause of action under Section 92.0081.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.009/k">
<num value="k">(k)</num>
<content>If a tenant in bad faith files a sworn complaint for reentry resulting in a writ of reentry being served on the landlord or landlord's agent, the landlord may in a separate cause of action recover from the tenant an amount equal to actual damages, one month's rent or $500, whichever is greater, reasonable attorney's fees, and costs of court, less any sums for which the landlord is liable to the tenant.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.009/l">
<num value="l">(l)</num>
<content>The fee for filing a sworn complaint for reentry is the same as that for filing a civil action in justice court. The fee for service of a writ of reentry is the same as that for service of a writ of possession. The fee for service of a show cause order is the same as that for service of a civil citation. The justice may defer payment of the tenant's filing fees and service costs for the sworn complaint for reentry and writ of reentry. Court costs may be waived only if the tenant executes a pauper's affidavit.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.009/m">
<num value="m">(m)</num>
<content>This section does not affect the rights of a landlord or tenant in a forcible detainer or forcible entry and detainer action.</content>
</subsection>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 687, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1997, 75th Leg., ch. 1205, Sec. 9, eff. Sept. 1, 1997.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 91 (S.B. 1303), Sec. 21.001, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scA/s92.0091">
<num value="92.0091">Sec. 92.0091.</num>
<heading>RESIDENTIAL TENANT'S RIGHT OF RESTORATION AFTER UNLAWFUL UTILITY DISCONNECTION</heading>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0091/a">
<num value="a">(a)</num>
<content>If a landlord has interrupted utility service in violation of Section 92.008, the tenant may obtain relief as provided by this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0091/b">
<num value="b">(b)</num>
<content>The tenant must file with the justice court in the precinct in which the rental premises are located a sworn complaint specifying the facts of the alleged unlawful utility disconnection by the landlord or the landlord's agent. The tenant must also state orally under oath to the justice the facts of the alleged unlawful utility disconnection.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0091/c">
<num value="c">(c)</num>
<content>If the tenant has complied with Subsection (b) and if the justice reasonably believes an unlawful utility disconnection has likely occurred, the justice may issue, ex parte, a writ of restoration of utility service that entitles the tenant to immediate and temporary restoration of the disconnected utility service, pending a final hearing on the tenant's sworn complaint.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0091/d">
<num value="d">(d)</num>
<content>The writ of restoration of utility service must be served on either the landlord or the landlord's management company, on-premises manager, or rent collector in the same manner as a writ of possession in a forcible detainer suit.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0091/e">
<num value="e">(e)</num>
<content>The landlord is entitled to a hearing on the tenant's sworn complaint for restoration of utility service. The writ of restoration of utility service must notify the landlord of the right to a hearing. The hearing shall be held not earlier than the first day and not later than the seventh day after the date the landlord requests a hearing.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0091/f">
<num value="f">(f)</num>
<content>If the landlord fails to request a hearing on the tenant's sworn complaint for restoration of utility service before the eighth day after the date of service of the writ of restoration of utility service on the landlord under Subsection (d), a judgment for court costs may be rendered against the landlord.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0091/g">
<num value="g">(g)</num>
<content>A party may appeal from the court's judgment at the hearing on the sworn complaint for restoration of utility service in the same manner as a party may appeal a judgment in a forcible detainer suit.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0091/h">
<num value="h">(h)</num>
<content>If a writ of possession is issued, it supersedes a writ of restoration of utility service.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0091/i">
<num value="i">(i)</num>
<content>If the landlord or the person on whom a writ of restoration of utility service is served fails to immediately comply with the writ or later disobeys the writ, the failure is grounds for contempt of court against the landlord or the person on whom the writ was served under Section 21.002, Government Code. If the writ is disobeyed, the tenant or the tenant's attorney may file in the court in which the action is pending an affidavit stating the name of the person who has disobeyed the writ and describing the acts or omissions constituting the disobedience. On receipt of an affidavit, the justice shall issue a show cause order, directing the person to appear on a designated date and show cause why the person should not be adjudged in contempt of court. If the justice finds, after considering the evidence at the hearing, that the person has directly or indirectly disobeyed the writ, the justice may commit the person to jail without bail until the person purges the contempt action or omission in a manner and form as the justice may direct. If the person disobeyed the writ before receiving the show cause order but has complied with the writ after receiving the order, the justice may find the person in contempt and assess punishment under Section 21.002(c), Government Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0091/j">
<num value="j">(j)</num>
<content>If a tenant in bad faith files a sworn complaint for restoration of utility service resulting in a writ being served on the landlord or landlord's agent, the landlord may in a separate cause of action recover from the tenant an amount equal to actual damages, one month's rent or $500, whichever is greater, reasonable attorney's fees, and costs of court, less any sums for which the landlord is liable to the tenant.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0091/k">
<num value="k">(k)</num>
<content>The fee for filing a sworn complaint for restoration of utility service is the same as that for filing a civil action in justice court. The fee for service of a writ of restoration of utility service is the same as that for service of a writ of possession. The fee for service of a show cause order is the same as that for service of a civil citation. The justice may defer payment of the tenant's filing fees and service costs for the sworn complaint for restoration of utility service and writ of restoration of utility service. Court costs may be waived only if the tenant executes a pauper's affidavit.</content>
</subsection>
<sourceCredit>Added by Acts 2009, 81st Leg., R.S., Ch. 1112 (H.B. 882), Sec. 2, eff. January 1, 2010.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scA/s92.010">
<num value="92.010">Sec. 92.010.</num>
<heading>OCCUPANCY LIMITS</heading>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.010/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (b), the maximum number of adults that a landlord may allow to occupy a dwelling is three times the number of bedrooms in the dwelling.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.010/b">
<num value="b">(b)</num>
<chapeau>A landlord may allow an occupancy rate of more than three adult tenants per bedroom:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.010/1">
<num value="1">(1)</num>
<content>to the extent that the landlord is required by a state or federal fair housing law to allow a higher occupancy rate; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.010/2">
<num value="2">(2)</num>
<content>if an adult whose occupancy causes a violation of Subsection (a) is seeking temporary sanctuary from family violence, as defined by Section 71.004, Family Code, for a period that does not exceed one month.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.010/c">
<num value="c">(c)</num>
<content>An individual who owns or leases a dwelling within 3,000 feet of a dwelling as to which a landlord has violated this section, or a governmental entity or civic association acting on behalf of the individual, may file suit against a landlord to enjoin the violation. A party who prevails in a suit under this subsection may recover court costs and reasonable attorney's fees from the other party. In addition to court costs and reasonable attorney's fees, a plaintiff who prevails under this subsection may recover from the landlord $500 for each violation of this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.010/d">
<num value="d">(d)</num>
<chapeau>In this section:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.010/1">
<num value="1">(1)</num>
<content>"Adult" means an individual 18 years of age or older.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.010/2">
<num value="2">(2)</num>
<content>"Bedroom" means an area of a dwelling intended as sleeping quarters. The term does not include a kitchen, dining room, bathroom, living room, utility room, or closet or storage area of a dwelling.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 937, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 7.002(o), eff. Sept. 1, 2003.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scA/s92.011">
<num value="92.011">Sec. 92.011.</num>
<heading>CASH RENTAL PAYMENTS</heading>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.011/a">
<num value="a">(a)</num>
<content>A landlord shall accept a tenant's timely cash rental payment unless a written lease between the landlord and tenant requires the tenant to make rental payments by check, money order, or other traceable or negotiable instrument.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.011/b">
<num value="b">(b)</num>
<chapeau>A landlord who receives a cash rental payment shall:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.011/1">
<num value="1">(1)</num>
<content>provide the tenant with a written receipt; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.011/2">
<num value="2">(2)</num>
<content>enter the payment date and amount in a record book maintained by the landlord.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.011/c">
<num value="c">(c)</num>
<content>A tenant or a governmental entity or civic association acting on the tenant's behalf may file suit against a landlord to enjoin a violation of this section. A party who prevails in a suit brought under this subsection may recover court costs and reasonable attorney's fees from the other party. In addition to court costs and reasonable attorney's fees, a tenant who prevails under this subsection may recover from the landlord the greater of one month's rent or $500 for each violation of this section.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 938, Sec. 1, eff. Sept. 1, 1993. Renumbered from Property Code Sec. 92.010 by Acts 1995, 74th Leg., ch. 76, Sec. 17.01(44), eff. Sept. 1, 1995.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scA/s92.012">
<num value="92.012">Sec. 92.012.</num>
<heading>NOTICE TO TENANT AT PRIMARY RESIDENCE</heading>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.012/a">
<num value="a">(a)</num>
<chapeau>If, at the time of signing a lease or lease renewal, a tenant gives written notice to the tenant's landlord that the tenant does not occupy the leased premises as a primary residence and requests in writing that the landlord send notices to the tenant at the tenant's primary residence and provides to the landlord the address of the tenant's primary residence, the landlord shall mail to the tenant's primary residence:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.012/1">
<num value="1">(1)</num>
<content>all notices of lease violations;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.012/2">
<num value="2">(2)</num>
<content>all notices of lease termination;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.012/3">
<num value="3">(3)</num>
<content>all notices of rental increases at the end of the lease term; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.012/4">
<num value="4">(4)</num>
<content>all notices to vacate.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.012/b">
<num value="b">(b)</num>
<content>The tenant shall notify the landlord in writing of any change in the tenant's primary residence address. Oral notices of change are insufficient.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.012/c">
<num value="c">(c)</num>
<content>A notice to a tenant's primary residence under Subsection (a) may be sent by regular United States mail and shall be considered as having been given on the date of postmark of the notice.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.012/d">
<num value="d">(d)</num>
<content>If there is more than one tenant on a lease, the landlord is not required under this section to send notices to the primary residence of more than one tenant.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.012/e">
<num value="e">(e)</num>
<content>This section does not apply if notice is actually hand delivered to and received by a person occupying the leased premises.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1205, Sec. 10, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scA/s92.013">
<num value="92.013">Sec. 92.013.</num>
<heading>NOTICE OF RULE OR POLICY CHANGE AFFECTING TENANT'S PERSONAL PROPERTY</heading>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.013/a">
<num value="a">(a)</num>
<content>A landlord shall give prior written notice to a tenant regarding a landlord rule or policy change that is not included in the lease agreement and that will affect any personal property owned by the tenant that is located outside the tenant's dwelling. A landlord shall provide to the tenant in a multiunit complex, as that term is defined by Section 92.151, a copy of any applicable vehicle towing or parking rules or policies of the landlord and any changes to those rules or policies as provided by Section 92.0131.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.013/b">
<num value="b">(b)</num>
<content>The notice must be given in person or by mail to the affected tenant. Notice in person may be by personal delivery to the tenant or any person residing at the tenant's dwelling who is 16 years of age or older or by personal delivery to the tenant's dwelling and affixing the notice to the inside of the main entry door. Notice by mail may be by regular mail, by registered mail, or by certified mail, return receipt requested. If the dwelling has no mailbox and has a keyless bolting device, alarm system, or dangerous animal that prevents the landlord from entering the premises to leave the notice on the inside of the main entry door, the landlord may securely affix the notice on the outside of the main entry door.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.013/c">
<num value="c">(c)</num>
<content>A landlord who fails to give notice as required by this section is liable to the tenant for any expense incurred by the tenant as a result of the landlord's failure to give the notice.</content>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 942, Sec. 1, eff. Sept. 1, 1999.
Amended by:
Acts 2005, 79th Leg., Ch. 1060 (H.B. 1399), Sec. 1, eff. January 1, 2006.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scA/s92.0131">
<num value="92.0131">Sec. 92.0131.</num>
<heading>NOTICE REGARDING VEHICLE TOWING OR PARKING RULES OR POLICIES</heading>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0131/a">
<num value="a">(a)</num>
<content>This section applies only to a tenant in a multiunit complex, as that term is defined by Section 92.151.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0131/b">
<num value="b">(b)</num>
<chapeau>If at the time a lease agreement is executed a landlord has vehicle towing or parking rules or policies that apply to the tenant, the landlord shall provide to the tenant a copy of the rules or policies before the lease agreement is executed. The copy of the rules or policies must be:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0131/1">
<num value="1">(1)</num>
<content>signed by the tenant;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0131/2">
<num value="2">(2)</num>
<content>included in a lease agreement signed by the tenant; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0131/3">
<num value="3">(3)</num>
<content>included in an attachment to the lease agreement that is signed by the tenant, but only if the attachment is expressly referred to in the lease agreement.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0131/c">
<num value="c">(c)</num>
<content>If the rules or policies are contained in the lease agreement or an attachment to the lease agreement, the title to the paragraph containing the rules or policies must read "Parking" or "Parking Rules" and be capitalized, underlined, or printed in bold print.</content>
<continuation>(c-1) As a precondition for allowing a tenant to park in a specific parking space or a common parking area that the landlord has made available for tenant use, the landlord may require a tenant to provide only the make, model, color, year, license number, and state of registration of the vehicle to be parked.</continuation>
<continuation>(c-2) Notwithstanding Subsection (c-1), a municipal housing authority located in a municipality that has a population of more than 500,000 and is not more than 50 miles from an international border, or a public facility corporation, affiliate, or subsidiary of the authority, may require that vehicles parked in a community of the authority, corporation, affiliate, or subsidiary be registered with the housing authority.</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0131/d">
<num value="d">(d)</num>
<chapeau>If a landlord changes the vehicle towing or parking rules or policies during the term of the lease agreement, the landlord shall provide written notice of the change to the tenant before the tenant is required to comply with the rule or policy change. The landlord has the burden of proving that the tenant received a copy of the rule or policy change. The landlord may satisfy that burden of proof by providing evidence that the landlord:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0131/1">
<num value="1">(1)</num>
<content>delivered the notice by certified mail, return receipt requested, addressed to the tenant at the tenant's dwelling; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0131/2">
<num value="2">(2)</num>
<chapeau>made a notation in the landlord's files of the time, place, and method of providing the notice and the name of the person who delivered the notice by:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.0131/A">
<num value="A">(A)</num>
<content>hand delivery to the tenant or any occupant of the tenant's dwelling over the age of 16 years at the tenant's dwelling;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.0131/B">
<num value="B">(B)</num>
<content>facsimile to a facsimile number the tenant provided to the landlord for the purpose of receiving notices; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.0131/C">
<num value="C">(C)</num>
<content>taping the notice to the inside of the main entry door of the tenant's dwelling.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0131/e">
<num value="e">(e)</num>
<chapeau>If a rule or policy change is made during the term of the lease agreement, the change:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0131/1">
<num value="1">(1)</num>
<chapeau>must:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.0131/A">
<num value="A">(A)</num>
<content>apply to all of the landlord's tenants in the same multiunit complex and be based on necessity, safety or security of tenants, reasonable requirements for construction on the premises, or respect for other tenants' parking rights; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.0131/B">
<num value="B">(B)</num>
<content>be adopted based on the tenant's written consent; and</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0131/2">
<num value="2">(2)</num>
<content>may not be effective before the 14th day after the date notice of the change is delivered to the tenant, unless the change is the result of a construction or utility emergency.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0131/f">
<num value="f">(f)</num>
<content>A landlord who violates Subsection (b), (c), (d), or (e) is liable for a civil penalty in the amount of $100 plus any towing or storage costs that the tenant incurs as a result of the towing of the tenant's vehicle. The nonprevailing party in a suit under this section is liable to the prevailing party for reasonable attorney's fees and court costs.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0131/g">
<num value="g">(g)</num>
<content>A landlord is liable for any damage to a tenant's vehicle resulting from the negligence of a towing service that contracts with the landlord or the landlord's agent to remove vehicles that are parked in violation of the landlord's rules and policies if the towing company that caused the damage does not carry insurance that covers the damage.</content>
</subsection>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 1060 (H.B. 1399), Sec. 2, eff. January 1, 2006.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 917 (H.B. 3101), Sec. 2, eff. January 1, 2008.
Acts 2011, 82nd Leg., R.S., Ch. 969 (H.B. 1371), Sec. 1, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scA/s92.0132">
<num value="92.0132">Sec. 92.0132.</num>
<heading>TERM OF PARKING PERMIT</heading>
<chapeau>A landlord who issues a parking permit to a tenant:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0132/1">
<num value="1">(1)</num>
<content>must issue the permit for a term that is coterminous with the tenant's lease term; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0132/2">
<num value="2">(2)</num>
<content>may not terminate or suspend the permit until the date the tenant's right of possession ends.</content>
</paragraph>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 409 (H.B. 1002), Sec. 1, eff. January 1, 2020.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scA/s92.0135">
<num value="92.0135">Sec. 92.0135.</num>
<heading>NOTICE FOR DWELLING LOCATED IN FLOODPLAIN</heading>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0135/a">
<num value="a">(a)</num>
<chapeau>In this section:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0135/1">
<num value="1">(1)</num>
<content>"100-year floodplain" means any area of land designated as a flood hazard area with a one percent or greater chance of flooding each year by the Federal Emergency Management Agency under the National Flood Insurance Act of 1968 (42 U.S.C. Section 4001 et seq.).</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0135/2">
<num value="2">(2)</num>
<chapeau>"Flooding" means a general or temporary condition of partial or complete inundation of a dwelling caused by:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.0135/A">
<num value="A">(A)</num>
<content>the overflow of inland or tidal waters;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.0135/B">
<num value="B">(B)</num>
<content>the unusual and rapid accumulation of runoff or surface waters from any established water source such as a river, stream, or drainage ditch; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.0135/C">
<num value="C">(C)</num>
<content>excessive rainfall.</content>
<continuation>(a-1) Notices under Subsections (b) and (d) are not required for a tenant under:</continuation>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0135/1">
<num value="1">(1)</num>
<content>a lease with a term of less than 30 days; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0135/2">
<num value="2">(2)</num>
<content>a temporary residential tenancy created by a contract for sale in which the buyer occupies the property before closing or the seller occupies the property after closing for a specific term not greater than 90 days.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0135/b">
<num value="b">(b)</num>
<content>A landlord shall provide to a tenant a written notice substantially equivalent to the following:</content>
<continuation>"(Landlord) ( ) is or ( ) is not aware that the dwelling you are renting is located in a 100-year floodplain. If neither box is checked, you should assume the dwelling is in a 100-year floodplain. Even if the dwelling is not in a 100-year floodplain, the dwelling may still be susceptible to flooding. The Federal Emergency Management Agency (FEMA) maintains a flood map on its Internet website that is searchable by address, at no cost, to determine if a dwelling is located in a flood hazard area. Most tenant insurance policies do not cover damages or loss incurred in a flood. You should seek insurance coverage that would cover losses caused by a flood."</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0135/c">
<num value="c">(c)</num>
<content>Notwithstanding Subsection (b), a landlord is not required to disclose on the notice that the landlord is aware that a dwelling is located in a 100-year floodplain if the elevation of the dwelling is raised above the 100-year floodplain flood levels in accordance with federal regulations.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0135/d">
<num value="d">(d)</num>
<content>If a landlord knows that flooding has damaged any portion of a dwelling at least once during the five-year period immediately preceding the effective date of the lease, the landlord shall provide a written notice to a tenant that is substantially equivalent to the following:</content>
<continuation>"(Landlord) ( ) is or ( ) is not aware that the dwelling you are renting has flooded at least once within the last five years."</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0135/e">
<num value="e">(e)</num>
<content>The notices required by Subsections (b) and (d) must be included in a paragraph of the lease, as an addendum to the lease, or in a separate written document given to the tenant at or before execution of the lease. The landlord and tenant must sign the document containing a required notice to evidence the provision and receipt of the notice.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0135/f">
<num value="f">(f)</num>
<content>If a landlord violates this section and a tenant suffers a substantial loss or damage to the tenant's personal property as a result of flooding, the tenant may terminate the lease by giving a written notice of termination to the landlord not later than the 30th day after the date the loss or damage occurred. For purposes of this subsection, a tenant suffers a substantial loss or damage to personal property if the total cost of repairs to or replacement of the personal property is 50 percent or more of the personal property's market value on the date the flooding occurred. Termination of a lease under this subsection is effective when the tenant surrenders possession of the dwelling.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0135/g">
<num value="g">(g)</num>
<content>Not later than the 30th day after the effective date of the termination of a lease under Subsection (f), the landlord shall refund to the tenant all rent or other amounts paid in advance under the lease for any period after the effective date of the termination of the lease.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0135/h">
<num value="h">(h)</num>
<content>This section does not affect a tenant's liability for delinquent, unpaid rent or other sums owed to the landlord before the date the lease was terminated by the tenant under this section.</content>
</subsection>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 921 (H.B. 531), Sec. 1, eff. January 1, 2022.
Amended by:
Acts 2025, 89th Leg., R.S., Ch. 78 (S.B. 2349), Sec. 1, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scA/s92.014">
<num value="92.014">Sec. 92.014.</num>
<heading>PERSONAL PROPERTY AND SECURITY DEPOSIT OF DECEASED TENANT</heading>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.014/a">
<num value="a">(a)</num>
<chapeau>Upon written request of a landlord, the landlord's tenant shall:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.014/1">
<num value="1">(1)</num>
<content>provide the landlord with the name, address, and telephone number of a person to contact in the event of the tenant's death; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.014/2">
<num value="2">(2)</num>
<chapeau>sign a statement authorizing the landlord in the event of the tenant's death to:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.014/A">
<num value="A">(A)</num>
<content>grant to the person designated under Subdivision (1) access to the premises at a reasonable time and in the presence of the landlord or the landlord's agent;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.014/B">
<num value="B">(B)</num>
<content>allow the person designated under Subdivision (1) to remove any of the tenant's property found at the leased premises; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.014/C">
<num value="C">(C)</num>
<content>refund the tenant's security deposit, less lawful deductions, to the person designated under Subdivision (1).</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.014/b">
<num value="b">(b)</num>
<content>A tenant may, without request from the landlord, provide the landlord with the information in Subsection (a).</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.014/c">
<num value="c">(c)</num>
<chapeau>Except as provided in Subsection (d), in the event of the death of a tenant who is the sole occupant of a rental dwelling:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.014/1">
<num value="1">(1)</num>
<content>the landlord may remove and store all property found in the tenant's leased premises;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.014/2">
<num value="2">(2)</num>
<content>the landlord shall turn over possession of the property to the person who was designated by the tenant under Subsection (a) or (b) or to any other person lawfully entitled to the property if the request is made prior to the property being discarded under Subdivision (5);</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.014/3">
<num value="3">(3)</num>
<content>the landlord shall refund the tenant's security deposit, less lawful deductions, including the cost of removing and storing the property, to the person designated under Subsection (a) or (b) or to any other person lawfully entitled to the refund;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.014/4">
<num value="4">(4)</num>
<content>the landlord may require any person who removes the property from the tenant's leased premises to sign an inventory of the property being removed; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.014/5">
<num value="5">(5)</num>
<chapeau>the landlord may discard the property removed by the landlord from the tenant's leased premises if:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.014/A">
<num value="A">(A)</num>
<content>the landlord has mailed a written request by certified mail, return receipt requested, to the person designated under Subsection (a) or (b), requesting that the property be removed;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.014/B">
<num value="B">(B)</num>
<content>the person failed to remove the property by the 30th day after the postmark date of the notice; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.014/C">
<num value="C">(C)</num>
<content>the landlord, prior to the date of discarding the property, has not been contacted by anyone claiming the property.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.014/d">
<num value="d">(d)</num>
<content>In a written lease or other agreement, a landlord and a tenant may agree to a procedure different than the procedure in this section for removing, storing, or disposing of property in the leased premises of a deceased tenant.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.014/e">
<num value="e">(e)</num>
<content>If a tenant, after being furnished with a copy of this subchapter, knowingly violates Subsection (a), the landlord shall have no responsibility after the tenant's death for removal, storage, disappearance, damage, or disposition of property in the tenant's leased premises.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.014/f">
<num value="f">(f)</num>
<content>If a landlord, after being furnished with a copy of this subchapter, knowingly violates Subsection (c), the landlord shall be liable to the estate of the deceased tenant for actual damages.</content>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1439, Sec. 1, eff. Sept. 1, 1999. Renumbered from Sec. 92.013 by Acts 2001, 77th Leg., ch. 1420, Sec. 21.001(97), eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scA/s92.015">
<num value="92.015">Sec. 92.015.</num>
<heading>TENANT'S RIGHT TO SUMMON POLICE OR EMERGENCY ASSISTANCE</heading>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.015/a">
<num value="a">(a)</num>
<chapeau>A landlord may not:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.015/1">
<num value="1">(1)</num>
<content>prohibit or limit a residential tenant's right to summon police or other emergency assistance based on the tenant's reasonable belief that an individual is in need of intervention or emergency assistance; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.015/2">
<num value="2">(2)</num>
<content>impose monetary or other penalties on a tenant who summons police or emergency assistance if the assistance was requested or dispatched based on the tenant's reasonable belief that an individual was in need of intervention or emergency assistance.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.015/b">
<num value="b">(b)</num>
<chapeau>A provision in a lease is void if the provision purports to:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.015/1">
<num value="1">(1)</num>
<content>waive a tenant's right to summon police or other emergency assistance based on the tenant's reasonable belief that an individual is in need of intervention or emergency assistance; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.015/2">
<num value="2">(2)</num>
<content>exempt any party from a liability or a duty under this section.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.015/c">
<num value="c">(c)</num>
<chapeau>In addition to other remedies provided by law, if a landlord violates this section, a tenant is entitled to recover from or against the landlord:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.015/1">
<num value="1">(1)</num>
<content>a civil penalty in an amount equal to one month's rent;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.015/2">
<num value="2">(2)</num>
<content>actual damages suffered by the tenant as a result of the landlord's violation of this section;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.015/3">
<num value="3">(3)</num>
<content>court costs;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.015/4">
<num value="4">(4)</num>
<content>injunctive relief; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.015/5">
<num value="5">(5)</num>
<content>reasonable attorney's fees incurred by the tenant in seeking enforcement of this section.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.015/d">
<num value="d">(d)</num>
<content>For purposes of this section, if a tenant's rent is subsidized in whole or in part by a governmental entity, "one month's rent" means one month's fair market rent.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.015/e">
<num value="e">(e)</num>
<content>Repealed by Acts 2017, 85th Leg., R.S., Ch. 337 (H.B. 1099), Sec. 2, eff. September 1, 2017.</content>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 794, Sec. 1, eff. June 20, 2003.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 337 (H.B. 1099), Sec. 1, eff. September 1, 2017.
Acts 2017, 85th Leg., R.S., Ch. 337 (H.B. 1099), Sec. 2, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scA/s92.016">
<num value="92.016">Sec. 92.016.</num>
<heading>RIGHT TO VACATE AND AVOID LIABILITY FOLLOWING FAMILY VIOLENCE</heading>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.016/a">
<num value="a">(a)</num>
<chapeau>For purposes of this section:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.016/1">
<num value="1">(1)</num>
<content>"Family violence" has the meaning assigned by Section 71.004, Family Code.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.016/2">
<num value="2">(2)</num>
<content>"Occupant" means a person who has the landlord's consent to occupy a dwelling but has no obligation to pay the rent for the dwelling.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.016/b">
<num value="b">(b)</num>
<content>A tenant may terminate the tenant's rights and obligations under a lease and may vacate the dwelling and avoid liability for future rent and any other sums due under the lease for terminating the lease and vacating the dwelling before the end of the lease term if the tenant complies with Subsection (c).</content>
<continuation>(b-1) A tenant may obtain relief under Subsection (b) if the tenant provides the landlord or the landlord's agent:</continuation>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.016/1">
<num value="1">(1)</num>
<chapeau>a copy of one or more of the following orders protecting the tenant or an occupant from family violence:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.016/A">
<num value="A">(A)</num>
<content>a temporary injunction issued under Subchapter F, Chapter 6, Family Code;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.016/B">
<num value="B">(B)</num>
<content>a temporary ex parte order issued under Chapter 83, Family Code;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.016/C">
<num value="C">(C)</num>
<content>a protective order issued under Chapter 85, Family Code; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.016/D">
<num value="D">(D)</num>
<content>an order of emergency protection under Article 17.292, Code of Criminal Procedure; or</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.016/2">
<num value="2">(2)</num>
<chapeau>a copy of documentation of the family violence against the tenant or an occupant from:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.016/A">
<num value="A">(A)</num>
<content>a licensed health care services provider who examined the victim;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.016/B">
<num value="B">(B)</num>
<content>a licensed mental health services provider who examined or evaluated the victim; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.016/C">
<num value="C">(C)</num>
<content>an advocate as defined by Section 93.001, Family Code, who assisted the victim.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.016/c">
<num value="c">(c)</num>
<chapeau>A tenant may exercise the rights to terminate the lease under Subsection (b), vacate the dwelling before the end of the lease term, and avoid liability beginning on the date after all of the following events have occurred:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.016/1">
<num value="1">(1)</num>
<content>a judge signs an order described by Subsection (b-1)(1) if the tenant obtained such an order;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.016/2">
<num value="2">(2)</num>
<content>the tenant provides a copy of the relevant documentation described by Subsection (b-1)(1) or (2), as applicable, to the landlord;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.016/3">
<num value="3">(3)</num>
<content>the tenant provides written notice of termination of the lease to the landlord on or before the 30th day before the date the lease terminates;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.016/4">
<num value="4">(4)</num>
<content>the 30th day after the date the tenant provided notice under Subdivision (3) expires; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.016/5">
<num value="5">(5)</num>
<content>the tenant vacates the dwelling.</content>
<continuation>(c-1) If the family violence is committed by a cotenant or occupant of the dwelling, a tenant may exercise the right to terminate the lease under the procedures provided by Subsection (b-1)(1)(A), (C), or (D) or (b-1)(2) and Subsection (c), except that the tenant is not required to provide the notice described by Subsection (c)(3).</continuation>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.016/d">
<num value="d">(d)</num>
<content>Except as provided by Subsection (f), this section does not affect a tenant's liability for delinquent, unpaid rent or other sums owed to the landlord before the lease was terminated by the tenant under this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.016/e">
<num value="e">(e)</num>
<content>A landlord who violates this section is liable to the tenant for actual damages, a civil penalty equal in amount to the amount of one month's rent plus $500, and attorney's fees.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.016/f">
<num value="f">(f)</num>
<content>A tenant who terminates a lease under Subsection (b) is released from all liability for any delinquent, unpaid rent owed to the landlord by the tenant on the effective date of the lease termination if the lease does not contain language substantially equivalent to the following:</content>
<continuation>"Tenants may have special statutory rights to terminate the lease early in certain situations involving family violence or a military deployment or transfer."</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.016/g">
<num value="g">(g)</num>
<content>A tenant's right to terminate a lease before the end of the lease term, vacate the dwelling, and avoid liability under this section may not be waived by a tenant.</content>
</subsection>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 348 (S.B. 1186), Sec. 1, eff. January 1, 2006.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 18 (S.B. 83), Sec. 1, eff. January 1, 2010.
Acts 2019, 86th Leg., R.S., Ch. 15 (S.B. 234), Sec. 1, eff. September 1, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scA/s92.0161">
<num value="92.0161">Sec. 92.0161.</num>
<heading>RIGHT TO VACATE AND AVOID LIABILITY FOLLOWING CERTAIN SEX OFFENSES OR STALKING</heading>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0161/a">
<num value="a">(a)</num>
<content>In this section, "occupant" has the meaning assigned by Section 92.016.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0161/b">
<num value="b">(b)</num>
<content>A tenant may terminate the tenant's rights and obligations under a lease and may vacate the dwelling and avoid liability for future rent and any other sums due under the lease for terminating the lease and vacating the dwelling before the end of the lease term after the tenant complies with Subsection (c) or (c-1).</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0161/c">
<num value="c">(c)</num>
<chapeau>If the tenant is a victim or a parent or guardian of a victim of sexual assault under Section 22.011, Penal Code, aggravated sexual assault under Section 22.021, Penal Code, indecency with a child under Section 21.11, Penal Code, sexual performance by a child under Section 43.25, Penal Code, continuous sexual abuse of young child or disabled individual under Section 21.02, Penal Code, or an attempt to commit any of the foregoing offenses under Section 15.01, Penal Code, that takes place during the preceding six-month period, the tenant shall provide to the landlord or the landlord's agent a copy of:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0161/1">
<num value="1">(1)</num>
<content>documentation of the assault or abuse, or attempted assault or abuse, of the victim from a licensed health care services provider who examined the victim;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0161/2">
<num value="2">(2)</num>
<content>documentation of the assault or abuse, or attempted assault or abuse, of the victim from a licensed mental health services provider who examined or evaluated the victim;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0161/3">
<num value="3">(3)</num>
<content>documentation of the assault or abuse, or attempted assault or abuse, of the victim from an individual authorized under Chapter 420, Government Code, who provided services to the victim; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0161/4">
<num value="4">(4)</num>
<content>documentation of a protective order issued under Subchapter A, Chapter 7B, Code of Criminal Procedure, except for a temporary ex parte order.</content>
<continuation>(c-1) If the tenant is a victim or a parent or guardian of a victim of stalking under Section 42.072, Penal Code, that takes place during the preceding six-month period on the premises or at any dwelling on the premises, the tenant shall provide to the landlord or the landlord's agent a copy of:</continuation>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0161/1">
<num value="1">(1)</num>
<content>documentation of a protective order issued under Subchapter A or B, Chapter 7B, Code of Criminal Procedure, except for a temporary ex parte order; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0161/2">
<num value="2">(2)</num>
<chapeau>documentation of the stalking from a provider of services described by Subsection (c)(1), (2), or (3) and:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.0161/A">
<num value="A">(A)</num>
<content>a law enforcement incident report or, if a law enforcement incident report is unavailable, another record maintained in the ordinary course of business by a law enforcement agency; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.0161/B">
<num value="B">(B)</num>
<content>if the report or record described by Paragraph (A) identifies the victim by means of a pseudonym, as defined by Article 58.001, Code of Criminal Procedure, a copy of a pseudonym form completed and returned under Article 58.152(a) of that code.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0161/d">
<num value="d">(d)</num>
<chapeau>A tenant may exercise the rights to terminate the lease under Subsection (b), vacate the dwelling before the end of the lease term, and avoid liability beginning on the date after all of the following events have occurred:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0161/1">
<num value="1">(1)</num>
<content>the tenant provides a copy of the relevant documentation described by Subsection (c) or (c-1) to the landlord;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0161/2">
<num value="2">(2)</num>
<content>the tenant provides written notice of termination of the lease to the landlord on or before the 30th day before the date the lease terminates;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0161/3">
<num value="3">(3)</num>
<content>the 30th day after the date the tenant provided notice under Subdivision (2) expires; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0161/4">
<num value="4">(4)</num>
<content>the tenant vacates the dwelling.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0161/e">
<num value="e">(e)</num>
<content>Except as provided by Subsection (g), this section does not affect a tenant's liability for delinquent, unpaid rent or other sums owed to the landlord before the lease was terminated by the tenant under this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0161/f">
<num value="f">(f)</num>
<content>A landlord who violates this section is liable to the tenant for actual damages, a civil penalty equal to the amount of one month's rent plus $500, and attorney's fees.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0161/g">
<num value="g">(g)</num>
<content>A tenant who terminates a lease under Subsection (b) is released from all liability for any delinquent, unpaid rent owed to the landlord by the tenant on the effective date of the lease termination if the lease does not contain language substantially equivalent to the following:</content>
<continuation>"Tenants may have special statutory rights to terminate the lease early in certain situations involving certain sexual offenses or stalking."</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0161/h">
<num value="h">(h)</num>
<content>A tenant may not waive a tenant's right to terminate a lease before the end of the lease term, vacate the dwelling, and avoid liability under this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0161/i">
<num value="i">(i)</num>
<content>For purposes of Subsections (c) and (c-1), a tenant who is a parent or guardian of a victim described by those subsections must reside with the victim to exercise the rights established by this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0161/j">
<num value="j">(j)</num>
<content>A person who receives information under Subsection (c), (c-1), or (d) may not disclose the information to any other person except for a legitimate or customary business purpose or as otherwise required by law.</content>
</subsection>
<sourceCredit>Added by Acts 2009, 81st Leg., R.S., Ch. 18 (S.B. 83), Sec. 2, eff. January 1, 2010.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 593 (S.B. 946), Sec. 1, eff. January 1, 2014.
Acts 2013, 83rd Leg., R.S., Ch. 593 (S.B. 946), Sec. 2, eff. January 1, 2014.
Acts 2015, 84th Leg., R.S., Ch. 394 (H.B. 1293), Sec. 2, eff. September 1, 2015.
Acts 2019, 86th Leg., R.S., Ch. 469 (H.B. 4173), Sec. 2.63, eff. January 1, 2021.
Acts 2021, 87th Leg., R.S., Ch. 221 (H.B. 375), Sec. 2.28, eff. September 1, 2021.
Acts 2025, 89th Leg., R.S., Ch. 365 (H.B. 47), Sec. 20, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scA/s92.0162">
<num value="92.0162">Sec. 92.0162.</num>
<heading>RIGHT TO VACATE AND AVOID LIABILITY FOLLOWING TENANT'S DEATH</heading>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0162/a">
<num value="a">(a)</num>
<chapeau>A representative of the estate of a tenant who dies before the expiration of the tenant's lease and was, at the time of the tenant's death, the sole occupant of a rental dwelling may terminate the tenant's rights and obligations under the lease and may vacate the leased premises and avoid liability for future rent and any other sums due under the lease for terminating the lease and vacating the leased premises before the end of the lease term if:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0162/1">
<num value="1">(1)</num>
<content>the representative provides to the landlord or the landlord's agent written notice of the termination of the lease under this section;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0162/2">
<num value="2">(2)</num>
<content>the deceased tenant's property is removed from the leased premises in accordance with Section 92.014(c) or (d); and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0162/3">
<num value="3">(3)</num>
<content>the representative signs an inventory of the removed property, if required by the landlord or the landlord's agent.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0162/b">
<num value="b">(b)</num>
<chapeau>Termination of a lease under this section is effective on the later of:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0162/1">
<num value="1">(1)</num>
<content>the 30th day after the date on which the notice under Subsection (a) was provided; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0162/2">
<num value="2">(2)</num>
<content>the date on which all of the conditions in Subsection (a) have been met.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0162/c">
<num value="c">(c)</num>
<content>After receipt of the notice provided under Subsection (a), the landlord shall provide a copy of the written lease agreement to the person who provided the notice on written request of that person.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0162/d">
<num value="d">(d)</num>
<chapeau>This section does not affect the obligations or liability of the tenant or the tenant's estate under the lease before the lease is terminated under this section, including the liability of the tenant or the tenant's estate for:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0162/1">
<num value="1">(1)</num>
<content>delinquent, unpaid rent; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.0162/2">
<num value="2">(2)</num>
<content>damages to the leased premises not caused by normal wear and tear.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.0162/e">
<num value="e">(e)</num>
<content>A landlord or landlord's agent who lawfully permits a person described by Subsection (a) to enter or facilitates the person's entry into the leased premises under this section is not liable for an act or omission that arises in connection with permitting or facilitating the entry.</content>
</subsection>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 1349 (H.B. 69), Sec. 1, eff. January 1, 2020.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scA/s92.017">
<num value="92.017">Sec. 92.017.</num>
<heading>RIGHT TO VACATE AND AVOID LIABILITY FOLLOWING CERTAIN DECISIONS RELATED TO MILITARY SERVICE</heading>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.017/a">
<num value="a">(a)</num>
<content>For purposes of this section, "dependent," "military service," and "servicemember" have the meanings assigned by 50 App. U.S.C. Section 511.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.017/b">
<num value="b">(b)</num>
<chapeau>A tenant who is a servicemember or a dependent of a servicemember may vacate the dwelling leased by the tenant and avoid liability for future rent and all other sums due under the lease for terminating the lease and vacating the dwelling before the end of the lease term if:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.017/1">
<num value="1">(1)</num>
<content>the lease was executed by or on behalf of a person who, after executing the lease or during the term of the lease, enters military service; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.017/2">
<num value="2">(2)</num>
<chapeau>a servicemember, while in military service, executes the lease and after executing the lease receives military orders:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.017/A">
<num value="A">(A)</num>
<content>for a permanent change of station; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.017/B">
<num value="B">(B)</num>
<content>to deploy with a military unit for a period of 90 days or more.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.017/c">
<num value="c">(c)</num>
<chapeau>A tenant who terminates a lease under Subsection (b) shall deliver to the landlord or landlord's agent:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.017/1">
<num value="1">(1)</num>
<content>a written notice of termination of the lease; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.017/2">
<num value="2">(2)</num>
<content>a copy of an appropriate government document providing evidence of the tenant's entrance into military service if Subsection (b)(1) applies or a copy of the servicemember's military orders if Subsection (b)(2) applies.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.017/d">
<num value="d">(d)</num>
<chapeau>Termination of a lease under this section is effective:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.017/1">
<num value="1">(1)</num>
<content>in the case of a lease that provides for monthly payment of rent, on the 30th day after the first date on which the next rental payment is due after the date on which the notice under Subsection (c)(1) is delivered; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.017/2">
<num value="2">(2)</num>
<content>in the case of a lease other than a lease described by Subdivision (1), on the last day of the month following the month in which the notice under Subsection (c)(1) is delivered.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.017/e">
<num value="e">(e)</num>
<content>A landlord, not later than the 30th day after the effective date of the termination of a lease under this section, shall refund to the residential tenant terminating the lease under Subsection (b) all rent or other amounts paid in advance under the lease for any period after the effective date of the termination of the lease.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.017/f">
<num value="f">(f)</num>
<content>Except as provided by Subsection (g), this section does not affect a tenant's liability for delinquent, unpaid rent or other sums owed to the landlord before the lease was terminated by the tenant under this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.017/g">
<num value="g">(g)</num>
<content>A tenant who terminates a lease under Subsection (b) is released from all liability for any delinquent, unpaid rent owed to the landlord by the tenant on the effective date of the lease termination if the lease does not contain language substantially equivalent to the following:</content>
<continuation>"Tenants may have special statutory rights to terminate the lease early in certain situations involving family violence or a military deployment or transfer."</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.017/h">
<num value="h">(h)</num>
<content>A landlord who violates this section is liable to the tenant for actual damages, a civil penalty in an amount equal to the amount of one month's rent plus $500, and attorney's fees.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.017/i">
<num value="i">(i)</num>
<content>Except as provided by Subsection (j), a tenant's right to terminate a lease before the end of the lease term, vacate the dwelling, and avoid liability under this section may not be waived by a tenant.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.017/j">
<num value="j">(j)</num>
<chapeau>A tenant and a landlord may agree that the tenant waives a tenant's rights under this section if the tenant or any dependent living with the tenant moves into base housing or other housing within 30 miles of the dwelling. A waiver under this section must be signed and in writing in a document separate from the lease and must comply with federal law. A waiver under this section does not apply if:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.017/1">
<num value="1">(1)</num>
<content>the tenant or the tenant's dependent moves into housing owned or occupied by family or relatives of the tenant or the tenant's dependent; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.017/2">
<num value="2">(2)</num>
<content>the tenant and the tenant's dependent move, wholly or partly, because of a significant financial loss of income caused by the tenant's military service.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.017/k">
<num value="k">(k)</num>
<content>For purposes of Subsection (j), "significant financial loss of income" means a reduction of 10 percent or more of the tenant's household income caused by the tenant's military service. A landlord is entitled to verify the significant financial loss of income in order to determine whether a tenant is entitled to terminate a lease if the tenant has signed a waiver under this section and moves within 30 miles of the dwelling into housing that is not owned or occupied by family or relatives of the tenant or the tenant's dependent. For purposes of this subsection, a pay stub or other statement of earnings issued by the tenant's employer is sufficient verification.</content>
</subsection>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 348 (S.B. 1186), Sec. 1, eff. June 17, 2005, except Subsec. (g) eff. January 1, 2006.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scA/s92.018">
<num value="92.018">Sec. 92.018.</num>
<heading>LIABILITY OF TENANT FOR GOVERNMENTAL FINES</heading>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.018/a">
<num value="a">(a)</num>
<content>In this section, "governmental entity" means the state, an agency of the state, or a political subdivision of the state.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.018/b">
<num value="b">(b)</num>
<content>A landlord or a landlord's manager or agent may not charge or seek reimbursement from the landlord's tenant for the amount of a fine imposed on the landlord by a governmental entity unless the tenant or another occupant of the tenant's dwelling actually caused the damage or other condition on which the fine is based.</content>
</subsection>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 1344 (S.B. 399), Sec. 1, eff. June 18, 2005.
Renumbered from Property Code, Section 92.016 by Acts 2007, 80th Leg., R.S., Ch. 921 (H.B. 3167), Sec. 17.001(64), eff. September 1, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scA/s92.019">
<num value="92.019">Sec. 92.019.</num>
<heading>LATE PAYMENT OF RENT; FEES</heading>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.019/a">
<num value="a">(a)</num>
<chapeau>A landlord may not collect from a tenant a late fee for failing to pay any portion of the tenant's rent unless:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.019/1">
<num value="1">(1)</num>
<content>notice of the fee is included in a written lease;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.019/2">
<num value="2">(2)</num>
<content>the fee is reasonable; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.019/3">
<num value="3">(3)</num>
<content>any portion of the tenant's rent has remained unpaid two full days after the date the rent was originally due.</content>
<continuation>(a-1) For purposes of this section, a late fee is considered reasonable if:</continuation>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.019/1">
<num value="1">(1)</num>
<chapeau>the late fee is not more than:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.019/A">
<num value="A">(A)</num>
<content>12 percent of the amount of rent for the rental period under the lease for a dwelling located in a structure that contains not more than four dwelling units; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.019/B">
<num value="B">(B)</num>
<content>10 percent of the amount of rent for the rental period under the lease for a dwelling located in a structure that contains more than four dwelling units; or</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.019/2">
<num value="2">(2)</num>
<content>the late fee is more than the applicable amount under Subdivision (1), but not more than uncertain damages to the landlord related to the late payment of rent, including direct or indirect expenses, direct or indirect costs, or overhead associated with the collection of late payment.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.019/b">
<num value="b">(b)</num>
<content>A late fee under this section may include an initial fee and a daily fee for each day any portion of the tenant's rent continues to remain unpaid, and the combined fees are considered a single late fee for purposes of this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.019/c">
<num value="c">(c)</num>
<content>A landlord who violates this section is liable to the tenant for an amount equal to the sum of $100, three times the amount of the late fee collected in violation of this section, and the tenant's reasonable attorney's fees.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.019/d">
<num value="d">(d)</num>
<content>A provision of a lease that purports to waive a right or exempt a party from a liability or duty under this section is void.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.019/e">
<num value="e">(e)</num>
<content>This section relates only to a fee, charge, or other sum of money required to be paid under the lease if rent is not paid as provided by Subsection (a)(3), and does not affect the landlord's right to terminate the lease or take other action permitted by the lease or other law. Payment of the fee, charge, or other sum of money by a tenant does not waive the right or remedies provided by this section.</content>
</subsection>
<sourceCredit>Added by Acts 2007, 80th Leg., R.S., Ch. 917 (H.B. 3101), Sec. 3, eff. January 1, 2008.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1268 (H.B. 1109), Sec. 1, eff. June 19, 2009.
Acts 2019, 86th Leg., R.S., Ch. 629 (S.B. 1414), Sec. 1, eff. September 1, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scA/s92.0191">
<num value="92.0191">Sec. 92.0191.</num>
<heading>STATEMENT OF LATE FEES</heading>
<content>A tenant may request that the landlord provide to the tenant a written statement of whether the tenant owes a late fee to the landlord and, if so, the amount of the late fee. On request of the tenant, the landlord shall provide the statement to the tenant by any established means regularly used for written communication between the landlord and the tenant. A landlord's failure to respond does not affect the tenant's liability for any late fee owed to the landlord.</content>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 629 (S.B. 1414), Sec. 2, eff. September 1, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scA/s92.020">
<num value="92.020">Sec. 92.020.</num>
<heading>EMERGENCY PHONE NUMBER</heading>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.020/a">
<num value="a">(a)</num>
<content>A landlord that has an on-site management or superintendent's office for a residential rental property must provide to a tenant a telephone number that will be answered 24 hours a day for the purpose of reporting emergencies related to a condition of the leased premises that materially affects the physical health or safety of an ordinary tenant.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.020/b">
<num value="b">(b)</num>
<content>The landlord must post the phone number required by Subsection (a) prominently outside the management or superintendent's office.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.020/c">
<num value="c">(c)</num>
<content>This section does not apply to or affect a local ordinance governing a landlord's obligation to provide a 24-hour emergency contact number to a tenant that is adopted before January 1, 2008, if the ordinance conforms with or is amended to conform with this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.020/d">
<num value="d">(d)</num>
<content>A landlord to whom Subsection (a) does not apply must provide to a tenant a telephone number for the purpose of reporting emergencies described by that subsection.</content>
</subsection>
<sourceCredit>Added by Acts 2007, 80th Leg., R.S., Ch. 917 (H.B. 3101), Sec. 4, eff. January 1, 2008.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scA/s92.021">
<num value="92.021">Sec. 92.021.</num>
<heading>LIABILITY OF CERTAIN GUARANTORS UNDER LEASE</heading>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.021/a">
<num value="a">(a)</num>
<content>A person other than a tenant who guarantees a lease is liable only for the original lease term except that a person may specify that the person agrees to guarantee a renewal of the lease as provided by Subsection (b).</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.021/b">
<num value="b">(b)</num>
<chapeau>A person may specify in writing in an original lease that the person will guarantee a renewal of the lease only if the original lease states:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.021/1">
<num value="1">(1)</num>
<content>the last date, as specified by the guarantor, on which the renewal of the lease will renew the obligation of the guarantor;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.021/2">
<num value="2">(2)</num>
<content>that the guarantor is liable under a renewal of the lease that occurs on or before that date; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.021/3">
<num value="3">(3)</num>
<chapeau>that the guarantor is liable under a renewal of the lease only if the renewal:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.021/A">
<num value="A">(A)</num>
<content>involves the same parties as the original lease; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.021/B">
<num value="B">(B)</num>
<content>does not increase the guarantor's potential financial obligation for rent that existed under the original lease.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.021/c">
<num value="c">(c)</num>
<content>Subsection (b) does not prohibit a guarantor from voluntarily entering into an agreement at the time of the renewal of a lease, in a separate written document, to guarantee an increased amount of rent.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.021/d">
<num value="d">(d)</num>
<content>This section does not release a guarantor from the obligations of the guarantor under the terms of the original lease or a valid renewal for costs and damages owed to the lessor that arise after the date specified by the guarantor in the original lease in accordance with Subsection (b), if the costs or damages relate to actions of the tenant before that date or arise as a result of the tenant refusing to vacate the leased premises.</content>
</subsection>
<sourceCredit>Added by Acts 2009, 81st Leg., R.S., Ch. 601 (H.B. 534), Sec. 1, eff. January 1, 2010.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scA/s92.023">
<num value="92.023">Sec. 92.023.</num>
<heading>TENANT'S REMEDIES REGARDING REVOCATION OF CERTIFICATE OF OCCUPANCY</heading>
<chapeau>If a municipality or a county revokes a certificate of occupancy for a leased premises because of the landlord's failure to maintain the premises, the landlord is liable to a tenant who is not in default under the lease for:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.023/1">
<num value="1">(1)</num>
<content>the full amount of the tenant's security deposit;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.023/2">
<num value="2">(2)</num>
<content>the pro rata portion of any rental payment the tenant has paid in advance;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.023/3">
<num value="3">(3)</num>
<content>the tenant's actual damages, including any moving costs, utility connection fees, storage fees, and lost wages; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.023/4">
<num value="4">(4)</num>
<content>court costs and attorney's fees arising from any related cause of action by the tenant against the landlord.</content>
</paragraph>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 512 (H.B. 1862), Sec. 1, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scA/s92.024">
<num value="92.024">Sec. 92.024.</num>
<heading>LANDLORD'S DUTY TO PROVIDE COPY OF LEASE</heading>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.024/a">
<num value="a">(a)</num>
<content>Not later than the third business day after the date the lease is signed by each party to the lease, a landlord shall provide at least one complete copy of the lease to at least one tenant who is a party to the lease.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.024/b">
<num value="b">(b)</num>
<content>If more than one tenant is a party to the lease, not later than the third business day after the date a landlord receives a written request for a copy of a lease from a tenant who has not received a copy of the lease under Subsection (a), the landlord shall provide one complete copy of the lease to the requesting tenant.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.024/c">
<num value="c">(c)</num>
<content>A landlord's failure to provide a complete copy of the lease as described by Subsection (a) or (b) does not invalidate the lease or, subject to Subsection (d), prevent the landlord from prosecuting or defending a legal action or proceeding to enforce the lease.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.024/d">
<num value="d">(d)</num>
<content>A landlord may not continue to prosecute and a court shall abate an action to enforce the lease, other than an action for nonpayment of rent, only until the landlord provides to a tenant a complete copy of the lease if the tenant submits to the court evidence in a plea in abatement or otherwise that the landlord failed to comply with Subsection (a) or (b).</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.024/e">
<num value="e">(e)</num>
<chapeau>A landlord may comply with this section by providing to a tenant a complete copy of the lease:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.024/1">
<num value="1">(1)</num>
<content>in a paper format;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.024/2">
<num value="2">(2)</num>
<content>in an electronic format if requested by the tenant; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.024/3">
<num value="3">(3)</num>
<content>by e-mail if the parties have communicated by e-mail regarding the lease.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 588 (S.B. 630), Sec. 1, eff. January 1, 2014.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scA/s92.025">
<num value="92.025">Sec. 92.025.</num>
<heading>LIABILITY FOR LEASING TO PERSON WITH CRIMINAL RECORD</heading>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.025/a">
<num value="a">(a)</num>
<content>A cause of action does not accrue against a landlord or a landlord's manager or agent solely for leasing a dwelling to a tenant convicted of, or arrested or placed on deferred adjudication for, an offense.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.025/b">
<num value="b">(b)</num>
<chapeau>This section does not preclude a cause of action for negligence in leasing of a dwelling by a landlord or a landlord's manager or agent to a tenant, if:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.025/1">
<num value="1">(1)</num>
<chapeau>the tenant:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.025/A">
<num value="A">(A)</num>
<content>was convicted of an offense listed in Article 42A.054, Code of Criminal Procedure; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.025/B">
<num value="B">(B)</num>
<content>has a reportable conviction or adjudication, as defined by Article 62.001, Code of Criminal Procedure; and</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.025/2">
<num value="2">(2)</num>
<content>the person against whom the action is filed knew or should have known of the conviction or adjudication.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scA/s92.025/c">
<num value="c">(c)</num>
<content>This section does not create a cause of action or expand an existing cause of action.</content>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 651 (H.B. 1510), Sec. 1, eff. January 1, 2016.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 324 (S.B. 1488), Sec. 23.011, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scA/s92.026">
<num value="92.026">Sec. 92.026.</num>
<heading>POSSESSION OF FIREARMS OR FIREARM AMMUNITION ON LEASED PREMISES</heading>
<chapeau>Unless possession of a firearm or firearm ammunition on a landlord's property is prohibited by state or federal law, a landlord may not prohibit a tenant or a tenant's guest from lawfully possessing, carrying, transporting, or storing a firearm, any part of a firearm, or firearm ammunition:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.026/1">
<num value="1">(1)</num>
<content>in the tenant's rental unit;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.026/2">
<num value="2">(2)</num>
<content>in a vehicle located in a parking area provided for tenants or guests by the landlord of the leased premises; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scA/s92.026/3">
<num value="3">(3)</num>
<chapeau>in other locations controlled by the landlord as necessary to:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.026/A">
<num value="A">(A)</num>
<content>enter or exit the tenant's rental unit;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.026/B">
<num value="B">(B)</num>
<content>enter or exit the leased premises; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scA/s92.026/C">
<num value="C">(C)</num>
<content>enter or exit a vehicle on the leased premises or located in a parking area provided by the landlord for tenants or guests.</content>
</subparagraph>
</paragraph>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 39 (H.B. 302), Sec. 6, eff. September 1, 2019.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t8/c92/scB">
<num value="B">SUBCHAPTER B.</num>
<heading>REPAIR OR CLOSING OF LEASEHOLD</heading>
<section identifier="/us/tx/pr/t8/c92/scB/s92.051">
<num value="92.051">Sec. 92.051.</num>
<heading>APPLICATION</heading>
<content>This subchapter applies to a lease executed, entered into, renewed, or extended on or after September 1, 1979.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3632, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scB/s92.052">
<num value="92.052">Sec. 92.052.</num>
<heading>LANDLORD'S DUTY TO REPAIR OR REMEDY</heading>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.052/a">
<num value="a">(a)</num>
<chapeau>A landlord shall make a diligent effort to repair or remedy a condition if:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.052/1">
<num value="1">(1)</num>
<content>the tenant specifies the condition in a notice to the person to whom or to the place where rent is normally paid;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.052/2">
<num value="2">(2)</num>
<content>the tenant is not delinquent in the payment of rent at the time notice is given; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.052/3">
<num value="3">(3)</num>
<chapeau>the condition:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c92/scB/s92.052/A">
<num value="A">(A)</num>
<content>materially affects the physical health or safety of an ordinary tenant; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scB/s92.052/B">
<num value="B">(B)</num>
<content>arises from the landlord's failure to provide and maintain in good operating condition a device to supply hot water of a minimum temperature of 120 degrees Fahrenheit.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.052/b">
<num value="b">(b)</num>
<chapeau>Unless the condition was caused by normal wear and tear, the landlord does not have a duty during the lease term or a renewal or extension to repair or remedy a condition caused by:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.052/1">
<num value="1">(1)</num>
<content>the tenant;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.052/2">
<num value="2">(2)</num>
<content>a lawful occupant in the tenant's dwelling;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.052/3">
<num value="3">(3)</num>
<content>a member of the tenant's family; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.052/4">
<num value="4">(4)</num>
<content>a guest or invitee of the tenant.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.052/c">
<num value="c">(c)</num>
<chapeau>This subchapter does not require the landlord:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.052/1">
<num value="1">(1)</num>
<content>to furnish utilities from a utility company if as a practical matter the utility lines of the company are not reasonably available; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.052/2">
<num value="2">(2)</num>
<content>to furnish security guards.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.052/d">
<num value="d">(d)</num>
<content>The tenant's notice under Subsection (a) must be in writing only if the tenant's lease is in writing and requires written notice.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3632, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 650, Sec. 3, eff. Aug. 28, 1989; Acts 1993, 73rd Leg., ch. 48, Sec. 14, eff. Sept. 1, 1993.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 600 (H.B. 177), Sec. 1, eff. September 1, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scB/s92.053">
<num value="92.053">Sec. 92.053.</num>
<heading>BURDEN OF PROOF</heading>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.053/a">
<num value="a">(a)</num>
<content>Except as provided by this section, the tenant has the burden of proof in a judicial action to enforce a right resulting from the landlord's failure to repair or remedy a condition under Section 92.052.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.053/b">
<num value="b">(b)</num>
<content>If the landlord does not provide a written explanation for delay in performing a duty to repair or remedy on or before the fifth day after receiving from the tenant a written demand for an explanation, the landlord has the burden of proving that he made a diligent effort to repair and that a reasonable time for repair did not elapse.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3633, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scB/s92.054">
<num value="92.054">Sec. 92.054.</num>
<heading>CASUALTY LOSS</heading>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.054/a">
<num value="a">(a)</num>
<content>If a condition results from an insured casualty loss, such as fire, smoke, hail, explosion, or a similar cause, the period for repair does not begin until the landlord receives the insurance proceeds.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.054/b">
<num value="b">(b)</num>
<content>If after a casualty loss the rental premises are as a practical matter totally unusable for residential purposes and if the casualty loss is not caused by the negligence or fault of the tenant, a member of the tenant's family, or a guest or invitee of the tenant, either the landlord or the tenant may terminate the lease by giving written notice to the other any time before repairs are completed. If the lease is terminated, the tenant is entitled only to a pro rata refund of rent from the date the tenant moves out and to a refund of any security deposit otherwise required by law.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.054/c">
<num value="c">(c)</num>
<content>If after a casualty loss the rental premises are partially unusable for residential purposes and if the casualty loss is not caused by the negligence or fault of the tenant, a member of the tenant's family, or a guest or invitee of the tenant, the tenant is entitled to reduction in the rent in an amount proportionate to the extent the premises are unusable because of the casualty, but only on judgment of a county or district court. A landlord and tenant may agree otherwise in a written lease.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3633, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1993, 73rd Leg., ch. 48, Sec. 15, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scB/s92.055">
<num value="92.055">Sec. 92.055.</num>
<heading>CLOSING THE RENTAL PREMISES</heading>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.055/a">
<num value="a">(a)</num>
<chapeau>A landlord may close a rental unit at any time by giving written notice by certified mail, return receipt requested, to the tenant and to the local health officer and local building inspector, if any, stating that:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.055/1">
<num value="1">(1)</num>
<content>the landlord is terminating the tenancy as soon as legally possible; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.055/2">
<num value="2">(2)</num>
<content>after the tenant moves out the landlord will either immediately demolish the rental unit or no longer use the unit for residential purposes.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.055/b">
<num value="b">(b)</num>
<chapeau>After a tenant receives the notice and moves out:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.055/1">
<num value="1">(1)</num>
<content>the local health officer or building inspector may not allow occupancy of or utility service by separate meter to the rental unit until the officer certifies that he knows of no condition that materially affects the physical health or safety of an ordinary tenant; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.055/2">
<num value="2">(2)</num>
<content>the landlord may not allow reoccupancy or reconnection of utilities by separate meter within six months after the date the tenant moves out.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.055/c">
<num value="c">(c)</num>
<chapeau>If the landlord gives the tenant the notice closing the rental unit:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.055/1">
<num value="1">(1)</num>
<content>before the tenant gives a repair notice to the landlord, the remedies of this subchapter do not apply;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.055/2">
<num value="2">(2)</num>
<content>after the tenant gives a repair notice to the landlord but before the landlord has had a reasonable time to make repairs, the tenant is entitled only to the remedies under Subsection (d) of this section and Subdivisions (3), (4), and (5) of Subsection (a) of Section 92.0563; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.055/3">
<num value="3">(3)</num>
<content>after the tenant gives a repair notice to the landlord and after the landlord has had a reasonable time to make repairs, the tenant is entitled only to the remedies under Subsection (d) of this section and Subdivisions (3), (4), and (5) of Subsection (a) of Section 92.0563.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.055/d">
<num value="d">(d)</num>
<content>If the landlord closes the rental unit after the tenant gives the landlord a notice to repair and the tenant moves out on or before the end of the rental term, the landlord must pay the tenant's actual and reasonable moving expenses, refund a pro rata portion of the tenant's rent from the date the tenant moves out, and, if otherwise required by law, return the tenant's security deposit.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.055/e">
<num value="e">(e)</num>
<content>A landlord who violates Subsection (b) or (d) is liable to the tenant for an amount equal to the total of one month's rent plus $100 and attorney's fees.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.055/f">
<num value="f">(f)</num>
<content>The closing of a rental unit does not prohibit the occupancy of other apartments, nor does this subchapter prohibit occupancy of or utility service by master or individual meter to other rental units in an apartment complex that have not been closed under this section. If another provision of this subchapter conflicts with this section, this section controls.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3634, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 650, Sec. 4, eff. Aug. 28, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scB/s92.056">
<num value="92.056">Sec. 92.056.</num>
<heading>LANDLORD LIABILITY AND TENANT REMEDIES; NOTICE AND TIME FOR REPAIR</heading>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.056/a">
<num value="a">(a)</num>
<content>A landlord's liability under this section is subject to Section 92.052(b) regarding conditions that are caused by a tenant and Section 92.054 regarding conditions that are insured casualties.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.056/b">
<num value="b">(b)</num>
<chapeau>A landlord is liable to a tenant as provided by this subchapter if:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.056/1">
<num value="1">(1)</num>
<content>the tenant has given the landlord notice to repair or remedy a condition by giving that notice to the person to whom or to the place where the tenant's rent is normally paid;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.056/2">
<num value="2">(2)</num>
<content>the condition materially affects the physical health or safety of an ordinary tenant;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.056/3">
<num value="3">(3)</num>
<content>the tenant has given the landlord a subsequent written notice to repair or remedy the condition after a reasonable time to repair or remedy the condition following the notice given under Subdivision (1) or the tenant has given the notice under Subdivision (1) by sending that notice by certified mail, return receipt requested, by registered mail, or by another form of mail that allows tracking of delivery from the United States Postal Service or a private delivery service;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.056/4">
<num value="4">(4)</num>
<content>the landlord has had a reasonable time to repair or remedy the condition after the landlord received the tenant's notice under Subdivision (1) and, if applicable, the tenant's subsequent notice under Subdivision (3);</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.056/5">
<num value="5">(5)</num>
<content>the landlord has not made a diligent effort to repair or remedy the condition after the landlord received the tenant's notice under Subdivision (1) and, if applicable, the tenant's notice under Subdivision (3); and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.056/6">
<num value="6">(6)</num>
<content>the tenant was not delinquent in the payment of rent at the time any notice required by this subsection was given.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.056/c">
<num value="c">(c)</num>
<content>For purposes of Subsection (b)(4) or (5), a landlord is considered to have received the tenant's notice when the landlord or the landlord's agent or employee has actually received the notice or when the United States Postal Service has attempted to deliver the notice to the landlord.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.056/d">
<num value="d">(d)</num>
<content>For purposes of Subsection (b)(3) or (4), in determining whether a period of time is a reasonable time to repair or remedy a condition, there is a rebuttable presumption that seven days is a reasonable time. To rebut that presumption, the date on which the landlord received the tenant's notice, the severity and nature of the condition, and the reasonable availability of materials and labor and of utilities from a utility company must be considered.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.056/e">
<num value="e">(e)</num>
<chapeau>Except as provided in Subsection (f), a tenant to whom a landlord is liable under Subsection (b) of this section may:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.056/1">
<num value="1">(1)</num>
<content>terminate the lease;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.056/2">
<num value="2">(2)</num>
<content>have the condition repaired or remedied according to Section 92.0561;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.056/3">
<num value="3">(3)</num>
<content>deduct from the tenant's rent, without necessity of judicial action, the cost of the repair or remedy according to Section 92.0561; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.056/4">
<num value="4">(4)</num>
<content>obtain judicial remedies according to Section 92.0563.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.056/f">
<num value="f">(f)</num>
<chapeau>A tenant who elects to terminate the lease under Subsection (e) is:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.056/1">
<num value="1">(1)</num>
<content>entitled to a pro rata refund of rent from the date of termination or the date the tenant moves out, whichever is later;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.056/2">
<num value="2">(2)</num>
<content>entitled to deduct the tenant's security deposit from the tenant's rent without necessity of lawsuit or obtain a refund of the tenant's security deposit according to law; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.056/3">
<num value="3">(3)</num>
<content>not entitled to the other repair and deduct remedies under Section 92.0561 or the judicial remedies under Subdivisions (1) and (2) of Subsection (a) of Section 92.0563.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.056/g">
<num value="g">(g)</num>
<content>A lease must contain language in underlined or bold print that informs the tenant of the remedies available under this section and Section 92.0561.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3635, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 650, Sec. 5, eff. Aug. 28, 1989; Acts 1997, 75th Leg., ch. 1205, Sec. 11, eff. Jan. 1, 1998.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 917 (H.B. 3101), Sec. 5, eff. January 1, 2008.
Acts 2015, 84th Leg., R.S., Ch. 1198 (S.B. 1367), Sec. 4, eff. January 1, 2016.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scB/s92.0561">
<num value="92.0561">Sec. 92.0561.</num>
<heading>TENANT'S REPAIR AND DEDUCT REMEDIES</heading>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.0561/a">
<num value="a">(a)</num>
<content>If the landlord is liable to the tenant under Section 92.056(b), the tenant may have the condition repaired or remedied and may deduct the cost from a subsequent rent payment as provided in this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.0561/b">
<num value="b">(b)</num>
<content>The tenant's deduction for the cost of the repair or remedy may not exceed the amount of one month's rent under the lease or $500, whichever is greater. However, if the tenant's rent is subsidized in whole or in part by a governmental agency, the deduction limitation of one month's rent shall mean the fair market rent for the dwelling and not the rent that the tenant pays. The fair market rent shall be determined by the governmental agency subsidizing the rent, or in the absence of such a determination, it shall be a reasonable amount of rent under the circumstances.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.0561/c">
<num value="c">(c)</num>
<content>Repairs and deductions under this section may be made as often as necessary so long as the total repairs and deductions in any one month do not exceed one month's rent or $500, whichever is greater.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.0561/d">
<num value="d">(d)</num>
<chapeau>Repairs under this section may be made only if all of the following requirements are met:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.0561/1">
<num value="1">(1)</num>
<content>The landlord has a duty to repair or remedy the condition under Section 92.052, and the duty has not been waived in a written lease by the tenant under Subsection (e) or (f) of Section 92.006.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.0561/2">
<num value="2">(2)</num>
<content>The tenant has given notice to the landlord as required by Section 92.056(b)(1), and, if required, a subsequent notice under Section 92.056(b)(3), and at least one of those notices states that the tenant intends to repair or remedy the condition. The notice shall also contain a reasonable description of the intended repair or remedy.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.0561/3">
<num value="3">(3)</num>
<chapeau>Any one of the following events has occurred:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c92/scB/s92.0561/A">
<num value="A">(A)</num>
<content>The landlord has failed to remedy the backup or overflow of raw sewage inside the tenant's dwelling or the flooding from broken pipes or natural drainage inside the dwelling.</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scB/s92.0561/B">
<num value="B">(B)</num>
<content>The landlord has expressly or impliedly agreed in the lease to furnish potable water to the tenant's dwelling and the water service to the dwelling has totally ceased.</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scB/s92.0561/C">
<num value="C">(C)</num>
<content>The landlord has expressly or impliedly agreed in the lease to furnish heating or cooling equipment; the equipment is producing inadequate heat or cooled air; and the landlord has been notified in writing by the appropriate local housing, building, or health official or other official having jurisdiction that the lack of heat or cooling materially affects the health or safety of an ordinary tenant.</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scB/s92.0561/D">
<num value="D">(D)</num>
<content>The landlord has been notified in writing by the appropriate local housing, building, or health official or other official having jurisdiction that the condition materially affects the health or safety of an ordinary tenant.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.0561/e">
<num value="e">(e)</num>
<chapeau>If the requirements of Subsection (d) of this section are met, a tenant may:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.0561/1">
<num value="1">(1)</num>
<content>have the condition repaired or remedied immediately following the tenant's notice of intent to repair if the condition involves sewage or flooding as referred to in Paragraph (A) of Subdivision (3) of Subsection (d) of this section;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.0561/2">
<num value="2">(2)</num>
<content>have the condition repaired or remedied if the condition involves a cessation of potable water as referred to in Paragraph (A) of Subdivision (3) of Subsection (d) of this section and if the landlord has failed to repair or remedy the condition within three days following the tenant's delivery of notice of intent to repair;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.0561/3">
<num value="3">(3)</num>
<content>have the condition repaired or remedied if the condition involves inadequate heat or cooled air as referred to in Paragraph (C) of Subdivision (3) of Subsection (d) of this section and if the landlord has failed to repair the condition within three days after delivery of the tenant's notice of intent to repair; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.0561/4">
<num value="4">(4)</num>
<content>have the condition repaired or remedied if the condition is not covered by Paragraph (A), (B), or (C) of Subdivision (3) of Subsection (d) of this section and involves a condition affecting the physical health or safety of the ordinary tenant as referred to in Paragraph (D) of Subdivision (3) of Subsection (d) of this section and if the landlord has failed to repair or remedy the condition within seven days after delivery of the tenant's notice of intent to repair.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.0561/f">
<num value="f">(f)</num>
<content>Repairs made pursuant to the tenant's notice must be made by an independent company, contractor, or repairman. If the rental unit is located in a municipality requiring the company, contractor, or repairman to be licensed, the person or entity performing the repair must be licensed in accordance with the municipality's requirements. Unless the landlord and tenant agree otherwise under Subsection (g), repairs may not be made by the tenant, the tenant's immediate family, the tenant's employer or employees, or a company in which the tenant has an ownership interest. Repairs may not be made to the foundation or load-bearing structural elements of the building if it contains two or more dwelling units.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.0561/g">
<num value="g">(g)</num>
<content>A landlord and a tenant may mutually agree for the tenant to repair or remedy, at the landlord's expense, any condition of the dwelling regardless of whether it materially affects the health or safety of an ordinary tenant. However, the landlord's duty to repair or remedy conditions covered by this subchapter may not be waived except as provided by Subsection (e) or (f) of Section 92.006.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.0561/h">
<num value="h">(h)</num>
<content>Repairs made pursuant to the tenant's notice must be made in compliance with applicable building codes, including a building permit when required.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.0561/i">
<num value="i">(i)</num>
<content>The tenant shall not have authority to contract for labor or materials in excess of what the tenant may deduct under this section. The landlord is not liable to repairmen, contractors, or material suppliers who furnish labor or materials to repair or remedy the condition. A repairman or supplier shall not have a lien for materials or services arising out of repairs contracted for by the tenant under this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.0561/j">
<num value="j">(j)</num>
<content>When deducting the cost of repairs from the rent payment, the tenant shall furnish the landlord, along with payment of the balance of the rent, a copy of the repair bill and the receipt for its payment. A repair bill and receipt may be the same document.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.0561/k">
<num value="k">(k)</num>
<content>If the landlord repairs or remedies the condition or delivers an affidavit for delay under Section 92.0562 to the tenant after the tenant has contacted a repairman but before the repairman commences work, the landlord shall be liable for the cost incurred by the tenant for the repairman's trip charge, and the tenant may deduct the charge from the tenant's rent as if it were a repair cost.</content>
</subsection>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 650, Sec. 6, eff. Aug. 28, 1989. Amended by Acts 1997, 75th Leg., ch. 1205, Sec. 12, eff. Jan. 1, 1998.
Amended by:
Acts 2025, 89th Leg., R.S., Ch. 732 (H.B. 2037), Sec. 1, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scB/s92.0562">
<num value="92.0562">Sec. 92.0562.</num>
<heading>LANDLORD AFFIDAVIT FOR DELAY</heading>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.0562/a">
<num value="a">(a)</num>
<content>The tenant must delay contracting for repairs under Section 92.0561 if, before the tenant contracts for the repairs, the landlord delivers to the tenant an affidavit, signed and sworn to under oath by the landlord or his authorized agent and complying with this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.0562/b">
<num value="b">(b)</num>
<content>The affidavit must summarize the reasons for the delay and the diligent efforts made by the landlord up to the date of the affidavit to get the repairs done. The affidavit must state facts showing that the landlord has made and is making diligent efforts to repair the condition, and it must contain dates, names, addresses, and telephone numbers of contractors, suppliers, and repairmen contacted by the owner.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.0562/c">
<num value="c">(c)</num>
<chapeau>Affidavits under this section may delay repair by the tenant for:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.0562/1">
<num value="1">(1)</num>
<content>15 days if the landlord's failure to repair is caused by a delay in obtaining necessary parts for which the landlord is not at fault; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.0562/2">
<num value="2">(2)</num>
<content>30 days if the landlord's failure to repair is caused by a general shortage of labor or materials for repair following a natural disaster such as a hurricane, tornado, flood, extended freeze, or widespread windstorm.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.0562/d">
<num value="d">(d)</num>
<content>Affidavits for delay based on grounds other than those listed in Subsection (c) of this section are unlawful, and if used, they are of no effect. The landlord may file subsequent affidavits, provided that the total delay of the repair or remedy extends no longer than six months from the date the landlord delivers the first affidavit to the tenant.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.0562/e">
<num value="e">(e)</num>
<chapeau>The affidavit must be delivered to the tenant by any of the following methods:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.0562/1">
<num value="1">(1)</num>
<content>personal delivery to the tenant;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.0562/2">
<num value="2">(2)</num>
<content>certified mail, return receipt requested, to the tenant; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.0562/3">
<num value="3">(3)</num>
<content>leaving the notice inside the dwelling in a conspicuous place if notice in that manner is authorized in a written lease.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.0562/f">
<num value="f">(f)</num>
<content>Affidavits for delay by a landlord under this section must be submitted in good faith. Following delivery of the affidavit, the landlord must continue diligent efforts to repair or remedy the condition. There shall be a rebuttable presumption that the landlord acted in good faith and with continued diligence for the first affidavit for delay the landlord delivers to the tenant. The landlord shall have the burden of pleading and proving good faith and continued diligence for subsequent affidavits for delay. A landlord who violates this section shall be liable to the tenant for all judicial remedies under Section 92.0563 except that the civil penalty under Subdivision (3) of Subsection (a) of Section 92.0563 shall be one month's rent plus $1,000.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.0562/g">
<num value="g">(g)</num>
<chapeau>If the landlord is liable to the tenant under Section 92.056 and if a new landlord, in good faith and without knowledge of the tenant's notice of intent to repair, has acquired title to the tenant's dwelling by foreclosure, deed in lieu of foreclosure, or general warranty deed in a bona fide purchase, then the following shall apply:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.0562/1">
<num value="1">(1)</num>
<content>The tenant's right to terminate the lease under this subchapter shall not be affected, and the tenant shall have no duty to give additional notice to the new landlord.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.0562/2">
<num value="2">(2)</num>
<content>The tenant's right to repair and deduct for conditions involving sewage backup or overflow, flooding inside the dwelling, or a cutoff of potable water under Subsection (e) of Section 92.0561 shall not be affected, and the tenant shall have no duty to give additional notice to the new landlord.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.0562/3">
<num value="3">(3)</num>
<content>For conditions other than those specified in Subdivision (2) of this subsection, if the new landlord acquires title as described in this subsection and has notified the tenant of the name and address of the new landlord or the new landlord's authorized agent and if the tenant has not already contracted for the repair or remedy at the time the tenant is so notified, the tenant must deliver to the new landlord a written notice of intent to repair or remedy the condition, and the new landlord shall have a reasonable time to complete the repair before the tenant may repair or remedy the condition. No further notice from the tenant is necessary in order for the tenant to repair or remedy the condition after a reasonable time has elapsed.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.0562/4">
<num value="4">(4)</num>
<content>The tenant's judicial remedies under Section 92.0563 shall be limited to recovery against the landlord to whom the tenant gave the required notices until the tenant has given the new landlord the notices required by this section and otherwise complied with Section 92.056 as to the new landlord.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.0562/5">
<num value="5">(5)</num>
<content>If the new landlord violates this subsection, the new landlord is liable to the tenant for a civil penalty of one month's rent plus $2,000, actual damages, and attorney's fees.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.0562/6">
<num value="6">(6)</num>
<content>No provision of this section shall affect any right of a foreclosing superior lienholder to terminate, according to law, any interest in the premises held by the holders of subordinate liens, encumbrances, leases, or other interests and shall not affect any right of the tenant to terminate the lease according to law.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 650, Sec. 7, eff. Aug. 28, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scB/s92.0563">
<num value="92.0563">Sec. 92.0563.</num>
<heading>TENANT'S JUDICIAL REMEDIES</heading>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.0563/a">
<num value="a">(a)</num>
<chapeau>A tenant's judicial remedies under Section 92.056 shall include:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.0563/1">
<num value="1">(1)</num>
<content>an order directing the landlord to take reasonable action to repair or remedy the condition;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.0563/2">
<num value="2">(2)</num>
<content>an order reducing the tenant's rent, from the date of the first repair notice, in proportion to the reduced rental value resulting from the condition until the condition is repaired or remedied;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.0563/3">
<num value="3">(3)</num>
<content>a judgment against the landlord for a civil penalty of one month's rent plus $500;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.0563/4">
<num value="4">(4)</num>
<content>a judgment against the landlord for the amount of the tenant's actual damages; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scB/s92.0563/5">
<num value="5">(5)</num>
<content>court costs and attorney's fees, excluding any attorney's fees for a cause of action for damages relating to a personal injury.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.0563/b">
<num value="b">(b)</num>
<content>A landlord who knowingly violates Section 92.006 by contracting orally or in writing with a tenant to waive the landlord's duty to repair under this subchapter shall be liable to the tenant for actual damages, a civil penalty of one month's rent plus $2,000, and reasonable attorney's fees. For purposes of this subsection, there shall be a rebuttable presumption that the landlord acted without knowledge of the violation. The tenant shall have the burden of pleading and proving a knowing violation. If the lease is in writing and is not in violation of Section 92.006, the tenant's proof of a knowing violation must be clear and convincing. A mutual agreement for tenant repair under Subsection (g) of Section 92.0561 is not a violation of Section 92.006.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.0563/c">
<num value="c">(c)</num>
<content>The justice, county, and district courts have concurrent jurisdiction in an action under Subsection (a).</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.0563/d">
<num value="d">(d)</num>
<content>If a suit is filed in a justice court requesting relief under Subsection (a), the justice court shall conduct a hearing on the request not earlier than the sixth day after the date of service of citation and not later than the 10th day after that date.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.0563/e">
<num value="e">(e)</num>
<content>A justice court may not award a judgment under this section, including an order of repair, that exceeds $20,000, excluding interest and costs of court.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.0563/f">
<num value="f">(f)</num>
<content>An appeal of a judgment of a justice court under this section takes precedence in county court and may be held at any time after the eighth day after the date the transcript is filed in the county court. An owner of real property who files a notice of appeal of a judgment of a justice court to the county court perfects the owner's appeal and stays the effect of the judgment without the necessity of posting an appeal bond.</content>
</subsection>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 650, Sec. 8, eff. Aug. 28, 1989.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 225 (S.B. 1448), Sec. 1, eff. January 1, 2010.
Acts 2023, 88th Leg., R.S., Ch. 89 (S.B. 1259), Sec. 1, eff. September 1, 2023.
Acts 2023, 88th Leg., R.S., Ch. 861 (H.B. 3474), Sec. 3.003(a), eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scB/s92.058">
<num value="92.058">Sec. 92.058.</num>
<heading>LANDLORD REMEDY FOR TENANT VIOLATION</heading>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.058/a">
<num value="a">(a)</num>
<content>If the tenant withholds rents, causes repairs to be performed, or makes rent deductions for repairs in violation of this subchapter, the landlord may recover actual damages from the tenant. If, after a landlord has notified a tenant in writing of (1) the illegality of the tenant's rent withholding or the tenant's proposed repair and (2) the penalties of this subchapter, the tenant withholds rent, causes repairs to be performed, or makes rent deductions for repairs in bad faith violation of this subchapter, the landlord may recover from the tenant a civil penalty of one month's rent plus $500.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.058/b">
<num value="b">(b)</num>
<content>Notice under this section must be in writing and may be given in person, by mail, or by delivery to the premises.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scB/s92.058/c">
<num value="c">(c)</num>
<content>The landlord has the burden of pleading and proving, by clear and convincing evidence, that the landlord gave the tenant the required notice of the illegality and the penalties and that the tenant's violation was done in bad faith. In any litigation under this subsection, the prevailing party shall recover reasonable attorney's fees from the nonprevailing party.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3638, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 650, Sec. 10, eff. Aug. 28, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scB/s92.060">
<num value="92.060">Sec. 92.060.</num>
<heading>AGENTS FOR DELIVERY OF NOTICE</heading>
<content>A managing agent, leasing agent, or resident manager is the agent of the landlord for purposes of notice and other communications required or permitted by this subchapter.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3639, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scB/s92.061">
<num value="92.061">Sec. 92.061.</num>
<heading>EFFECT ON OTHER RIGHTS</heading>
<content>The duties of a landlord and the remedies of a tenant under this subchapter are in lieu of existing common law and other statutory law warranties and duties of landlords for maintenance, repair, security, habitability, and nonretaliation, and remedies of tenants for a violation of those warranties and duties. Otherwise, this subchapter does not affect any other right of a landlord or tenant under contract, statutory law, or common law that is consistent with the purposes of this subchapter or any right a landlord or tenant may have to bring an action for personal injury or property damage under the law of this state. This subchapter does not impose obligations on a landlord or tenant other than those expressly stated in this subchapter.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3639, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1985, 69th Leg., ch. 200, Sec. 5, eff. Aug. 26, 1985.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scB/s92.062">
<num value="92.062">Sec. 92.062.</num>
<heading>LEASE TERM AFTER NATURAL DISASTER</heading>
<content>If a rental premises is, as a practical matter, totally unusable for residential purposes as a result of a natural disaster such as a hurricane, tornado, flood, extended freeze, or widespread windstorm, a landlord that allows a tenant to move to another rental unit owned by the landlord may not require the tenant to execute a lease for a term longer than the term remaining on the tenant's lease on the date the premises was rendered unusable as a result of the natural disaster.</content>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 475 (S.B. 1120), Sec. 1, eff. January 1, 2014.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t8/c92/scC">
<num value="C">SUBCHAPTER C.</num>
<heading>SECURITY DEPOSITS</heading>
<section identifier="/us/tx/pr/t8/c92/scC/s92.101">
<num value="92.101">Sec. 92.101.</num>
<heading>APPLICATION</heading>
<content>This subchapter applies to all residential leases.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3639, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1995, 74th Leg., ch. 744, Sec. 1, eff. Jan. 1, 1996.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scC/s92.102">
<num value="92.102">Sec. 92.102.</num>
<heading>SECURITY DEPOSIT</heading>
<content>A security deposit is any advance of money, other than a rental application deposit or an advance payment of rent, that is intended primarily to secure performance under a lease of a dwelling that has been entered into by a landlord and a tenant.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3639, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1995, 74th Leg., ch. 744, Sec. 2, eff. Jan. 1, 1996.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scC/s92.103">
<num value="92.103">Sec. 92.103.</num>
<heading>OBLIGATION TO REFUND</heading>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.103/a">
<num value="a">(a)</num>
<content>Except as provided by Section 92.107, the landlord shall refund a security deposit to the tenant on or before the 30th day after the date the tenant surrenders the premises.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.103/b">
<num value="b">(b)</num>
<content>A requirement that a tenant give advance notice of surrender as a condition for refunding the security deposit is effective only if the requirement is underlined or is printed in conspicuous bold print in the lease.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.103/c">
<num value="c">(c)</num>
<content>The tenant's claim to the security deposit takes priority over the claim of any creditor of the landlord, including a trustee in bankruptcy.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3639, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1995, 74th Leg., ch. 744, Sec. 3, eff. Jan. 1, 1996.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scC/s92.1031">
<num value="92.1031">Sec. 92.1031.</num>
<heading>CONDITIONS FOR RETENTION OF SECURITY DEPOSIT OR RENT PREPAYMENT</heading>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.1031/a">
<num value="a">(a)</num>
<chapeau>Except as provided in Subsection (b), a landlord who receives a security deposit or rent prepayment for a dwelling from a tenant who fails to occupy the dwelling according to a lease between the landlord and the tenant may not retain the security deposit or rent prepayment if:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scC/s92.1031/1">
<num value="1">(1)</num>
<content>the tenant secures a replacement tenant satisfactory to the landlord and the replacement tenant occupies the dwelling on or before the commencement date of the lease; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scC/s92.1031/2">
<num value="2">(2)</num>
<content>the landlord secures a replacement tenant satisfactory to the landlord and the replacement tenant occupies the dwelling on or before the commencement date of the lease.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.1031/b">
<num value="b">(b)</num>
<chapeau>If the landlord secures the replacement tenant, the landlord may retain and deduct from the security deposit or rent prepayment either:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scC/s92.1031/1">
<num value="1">(1)</num>
<content>a sum agreed to in the lease as a lease cancellation fee; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scC/s92.1031/2">
<num value="2">(2)</num>
<content>actual expenses incurred by the landlord in securing the replacement, including a reasonable amount for the time of the landlord in securing the replacement tenant.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 869, Sec. 13, eff. Jan. 1, 1996.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scC/s92.104">
<num value="92.104">Sec. 92.104.</num>
<heading>RETENTION OF SECURITY DEPOSIT; ACCOUNTING</heading>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.104/a">
<num value="a">(a)</num>
<content>Before returning a security deposit, the landlord may deduct from the deposit damages and charges for which the tenant is legally liable under the lease or as a result of breaching the lease.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.104/b">
<num value="b">(b)</num>
<content>The landlord may not retain any portion of a security deposit to cover normal wear and tear.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.104/c">
<num value="c">(c)</num>
<chapeau>If the landlord retains all or part of a security deposit under this section, the landlord shall give to the tenant the balance of the security deposit, if any, together with a written description and itemized list of all deductions. The landlord is not required to give the tenant a description and itemized list of deductions if:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scC/s92.104/1">
<num value="1">(1)</num>
<content>the tenant owes rent when he surrenders possession of the premises; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scC/s92.104/2">
<num value="2">(2)</num>
<content>there is no controversy concerning the amount of rent owed.</content>
</paragraph>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3640, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scC/s92.1041">
<num value="92.1041">Sec. 92.1041.</num>
<heading>PRESUMPTION OF REFUND OR ACCOUNTING</heading>
<content>A landlord is presumed to have refunded a security deposit or made an accounting of security deposit deductions if, on or before the date required under this subchapter, the refund or accounting is placed in the United States mail and postmarked on or before the required date.</content>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 744, Sec. 4, eff. Jan. 1, 1996.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scC/s92.105">
<num value="92.105">Sec. 92.105.</num>
<heading>CESSATION OF OWNER'S INTEREST</heading>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.105/a">
<num value="a">(a)</num>
<content>If the owner's interest in the premises is terminated by sale, assignment, death, appointment of a receiver, bankruptcy, or otherwise, the new owner is liable for the return of security deposits according to this subchapter from the date title to the premises is acquired.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.105/b">
<num value="b">(b)</num>
<content>The new owner shall deliver to the tenant a signed statement acknowledging that the new owner has acquired the property and is responsible for the tenant's security deposit and specifying the exact dollar amount of the deposit.</content>
<continuation>(b-1) The person who no longer owns an interest in the rental premises is liable for a security deposit received while the person was the owner until the new owner has received the deposit or has assumed the liability for the deposit, unless otherwise specified by the parties in a written contract.</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.105/c">
<num value="c">(c)</num>
<content>Subsection (a) does not apply to a real estate mortgage lienholder who acquires title by foreclosure.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3640, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1985, 69th Leg., ch. 305, Sec. 2, eff. Aug. 26, 1985.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1198 (S.B. 1367), Sec. 5, eff. January 1, 2016.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scC/s92.106">
<num value="92.106">Sec. 92.106.</num>
<heading>RECORDS</heading>
<content>The landlord shall keep accurate records of all security deposits.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3641, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scC/s92.107">
<num value="92.107">Sec. 92.107.</num>
<heading>TENANT'S FORWARDING ADDRESS</heading>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.107/a">
<num value="a">(a)</num>
<content>The landlord is not obligated to return a tenant's security deposit or give the tenant a written description of damages and charges until the tenant gives the landlord a written statement of the tenant's forwarding address for the purpose of refunding the security deposit.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.107/b">
<num value="b">(b)</num>
<content>The tenant does not forfeit the right to a refund of the security deposit or the right to receive a description of damages and charges merely for failing to give a forwarding address to the landlord.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3641, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scC/s92.108">
<num value="92.108">Sec. 92.108.</num>
<heading>LIABILITY FOR WITHHOLDING LAST MONTH'S RENT</heading>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.108/a">
<num value="a">(a)</num>
<content>The tenant may not withhold payment of any portion of the last month's rent on grounds that the security deposit is security for unpaid rent.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.108/b">
<num value="b">(b)</num>
<content>A tenant who violates this section is presumed to have acted in bad faith. A tenant who in bad faith violates this section is liable to the landlord for an amount equal to three times the rent wrongfully withheld and the landlord's reasonable attorney's fees in a suit to recover the rent.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3641, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scC/s92.109">
<num value="92.109">Sec. 92.109.</num>
<heading>LIABILITY OF LANDLORD</heading>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.109/a">
<num value="a">(a)</num>
<content>A landlord who in bad faith retains a security deposit in violation of this subchapter is liable for an amount equal to the sum of $100, three times the portion of the deposit wrongfully withheld, and the tenant's reasonable attorney's fees in a suit to recover the deposit.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.109/b">
<num value="b">(b)</num>
<chapeau>A landlord who in bad faith does not provide a written description and itemized list of damages and charges in violation of this subchapter:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scC/s92.109/1">
<num value="1">(1)</num>
<content>forfeits the right to withhold any portion of the security deposit or to bring suit against the tenant for damages to the premises; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scC/s92.109/2">
<num value="2">(2)</num>
<content>is liable for the tenant's reasonable attorney's fees in a suit to recover the deposit.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.109/c">
<num value="c">(c)</num>
<content>In an action brought by a tenant under this subchapter, the landlord has the burden of proving that the retention of any portion of the security deposit was reasonable.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.109/d">
<num value="d">(d)</num>
<content>A landlord who fails either to return a security deposit or to provide a written description and itemization of deductions on or before the 30th day after the date the tenant surrenders possession is presumed to have acted in bad faith.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3641, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scC/s92.110">
<num value="92.110">Sec. 92.110.</num>
<heading>LEASE WITHOUT SECURITY DEPOSIT; REQUIRED NOTICE</heading>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.110/a">
<num value="a">(a)</num>
<content>If a security deposit was not required by a residential lease and the tenant is liable for damages and charges on surrender of the premises, the landlord shall notify the tenant in writing of the landlord's claim for damages and charges on or before the date the landlord reports the claim to a consumer reporting agency or third-party debt collector.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.110/b">
<num value="b">(b)</num>
<content>A landlord is not required to provide the notice under Subsection (a) if the tenant has not given the landlord the tenant's forwarding address as provided by Section 92.107.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.110/c">
<num value="c">(c)</num>
<content>If a landlord does not provide the tenant the notice as required by this section, the landlord forfeits the right to collect damages and charges from the tenant. Forfeiture of the right to collect damages and charges from the tenant is the exclusive remedy for the failure to provide the proper notice to the tenant.</content>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 1198 (S.B. 1367), Sec. 6, eff. January 1, 2016.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scC/s92.111">
<num value="92.111">Sec. 92.111.</num>
<heading>FEE IN LIEU OF SECURITY DEPOSIT</heading>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.111/a">
<num value="a">(a)</num>
<chapeau>If a security deposit is required by a residential lease, the landlord may choose to offer the tenant an option to pay a fee in lieu of a security deposit. If a landlord offers a tenant the option of paying a fee in lieu of a security deposit, the landlord:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scC/s92.111/1">
<num value="1">(1)</num>
<content>shall offer the tenant the option to instead pay a security deposit; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scC/s92.111/2">
<num value="2">(2)</num>
<content>may not use a prospective tenant's choice to pay a fee in lieu of a security deposit or a security deposit as a criterion in the determination of whether to approve an application for occupancy.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.111/b">
<num value="b">(b)</num>
<chapeau>At the time a landlord offers to a tenant the option of paying a fee in lieu of a security deposit, the landlord shall notify the tenant in writing:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scC/s92.111/1">
<num value="1">(1)</num>
<content>that the tenant has the option to instead pay a security deposit;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scC/s92.111/2">
<num value="2">(2)</num>
<content>that the tenant has the option to terminate the agreement to pay the fee in lieu of a security deposit at any time and stop paying the fee, and instead, to pay a security deposit in the amount that is otherwise offered to new tenants for substantially similar housing on the date the tenant chooses to pay the security deposit; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scC/s92.111/3">
<num value="3">(3)</num>
<content>of the charges for each option described by Subdivision (1) or (2).</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.111/c">
<num value="c">(c)</num>
<chapeau>If the tenant decides to pay a fee in lieu of a security deposit, an agreement to collect the fee must be in writing and signed by:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scC/s92.111/1">
<num value="1">(1)</num>
<content>the landlord or the landlord's legal representative; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scC/s92.111/2">
<num value="2">(2)</num>
<content>the tenant.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.111/d">
<num value="d">(d)</num>
<chapeau>A fee in lieu of a security deposit must be:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scC/s92.111/1">
<num value="1">(1)</num>
<content>a recurring fee of equivalent amount; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scC/s92.111/2">
<num value="2">(2)</num>
<content>payable at the time each rent payment is due during the lease.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.111/e">
<num value="e">(e)</num>
<content>A fee collected under this section may be used to purchase insurance coverage for damages and charges for which the tenant is legally liable under the lease or as a result of breaching the lease. A landlord may not charge the tenant a fee that is more than the reasonable cost of obtaining and administering the insurance purchased under this subsection.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.111/f">
<num value="f">(f)</num>
<chapeau>If the tenant decides to pay a fee in lieu of a security deposit and the landlord purchases insurance coverage as described by Subsection (e), an agreement required under Subsection (c) must clearly specify the following terms:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scC/s92.111/1">
<num value="1">(1)</num>
<content>the fee is being paid only to secure occupancy without a requirement of paying a security deposit;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scC/s92.111/2">
<num value="2">(2)</num>
<content>the fee, unless otherwise specified, is not refundable;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scC/s92.111/3">
<num value="3">(3)</num>
<chapeau>payment of the fee, unless otherwise specified, does not eliminate, release, or otherwise limit the requirements of the lease, including that the tenant must pay for:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c92/scC/s92.111/A">
<num value="A">(A)</num>
<content>rent as the rent becomes due; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scC/s92.111/B">
<num value="B">(B)</num>
<content>damages for which the tenant is legally liable under the lease, other than normal wear and tear; and</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scC/s92.111/4">
<num value="4">(4)</num>
<content>the fee, unless otherwise specified, is not paying for insurance that covers the tenant or otherwise changes the tenant's obligation to pay rent and damages beyond normal wear and tear.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.111/g">
<num value="g">(g)</num>
<content>Except as provided by Subsection (h), a fee collected under this section is a security deposit for purposes of this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.111/h">
<num value="h">(h)</num>
<chapeau>A fee collected under this section is not a security deposit for purposes of this chapter if:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scC/s92.111/1">
<num value="1">(1)</num>
<content>an agreement was signed under Subsection (c); and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scC/s92.111/2">
<num value="2">(2)</num>
<content>the fee is used to purchase insurance coverage for damages and unpaid rent for which the tenant is legally liable under the lease or as a result of breaching the lease.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.111/i">
<num value="i">(i)</num>
<content>A landlord may not charge a tenant for normal wear and tear of a dwelling.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.111/j">
<num value="j">(j)</num>
<content>A landlord may not submit a claim for damages or unpaid rent to an insurer for insurance described by Subsection (e) unless the landlord notifies the tenant of the damages or unpaid rent indebtedness not later than the 30th day after the date the tenant surrendered possession of the dwelling. The notice must include a written description and itemized list of all damages, if any, and of unpaid rent, if any, including the dates the rent payments were due.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.111/k">
<num value="k">(k)</num>
<content>If the tenant challenges the claim for damages or unpaid rent and that challenge results in a determination by the landlord or by a court that the notice of indebtedness is incorrect, the indebtedness is void and the landlord may not file an insurance claim for insurance purchased under Subsection (e) in the amount of the voided indebtedness. If the landlord has already submitted to the insurer a claim for the voided indebtedness, the claim must be withdrawn. If the insurance company has already paid the landlord for the invalidated claim, the landlord shall return the payment.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.111/l">
<num value="l">(l)</num>
<chapeau>If an insurer compensates a landlord for a tenant's damages or unpaid rent under a valid claim:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scC/s92.111/1">
<num value="1">(1)</num>
<content>the landlord may not seek or collect reimbursement from the tenant of the amounts that the insurer paid to the landlord;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scC/s92.111/2">
<num value="2">(2)</num>
<content>the insurer that has paid a landlord after receipt of a claim filed by a landlord, if allowed by a subrogation clause in the insurance described by Subsection (e) and before the first anniversary of the termination of the tenant's occupancy, may seek reimbursement from the tenant of only the amounts paid to the landlord; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scC/s92.111/3">
<num value="3">(3)</num>
<content>the tenant is entitled to any defenses to payment against the insurer as against the landlord.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.111/m">
<num value="m">(m)</num>
<chapeau>If an insurer seeks reimbursement under Subsection (l)(2), the insurer must include in the reimbursement demand:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scC/s92.111/1">
<num value="1">(1)</num>
<content>evidence of damages or unpaid rent that the landlord submitted to the insurer;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scC/s92.111/2">
<num value="2">(2)</num>
<content>evidence of damage repair costs that the landlord submitted to the insurer; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scC/s92.111/3">
<num value="3">(3)</num>
<content>a copy of the settled claim that documents payments made by the insurer to the landlord.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 189 (S.B. 1783), Sec. 1, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scC/s92.112">
<num value="92.112">Sec. 92.112.</num>
<heading>AGENTS FOR DELIVERY OF NOTICE</heading>
<content>A managing agent, leasing agent, or resident manager is the agent of the landlord for purposes of notice and other communications required or permitted by this subchapter.</content>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 732 (H.B. 2037), Sec. 2, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scC/s92.113">
<num value="92.113">Sec. 92.113.</num>
<heading>NOTICE BY E-MAIL</heading>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.113/a">
<num value="a">(a)</num>
<content>Notice and other communications required or permitted by this subchapter may be sent by e-mail if the tenant and the landlord or landlord's agent have previously communicated by e-mail.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scC/s92.113/b">
<num value="b">(b)</num>
<content>The landlord or landlord's agent may designate a specific e-mail address for a tenant to use for the purpose of Subsection (a).</content>
</subsection>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 732 (H.B. 2037), Sec. 2, eff. September 1, 2025.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t8/c92/scD">
<num value="D">SUBCHAPTER D.</num>
<heading>SECURITY DEVICES</heading>
<section identifier="/us/tx/pr/t8/c92/scD/s92.151">
<num value="92.151">Sec. 92.151.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this subchapter:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.151/1">
<num value="1">(1)</num>
<content>"Doorknob lock" means a lock in a doorknob, with the lock operated from the exterior by a key, card, or combination and from the interior without a key, card, or combination.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.151/2">
<num value="2">(2)</num>
<chapeau>"Door viewer" means a permanently installed device in an exterior door that allows a person inside the dwelling to view a person outside the door. The device must be:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c92/scD/s92.151/A">
<num value="A">(A)</num>
<content>a clear glass pane or one-way mirror; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scD/s92.151/B">
<num value="B">(B)</num>
<content>a peephole having a barrel with a one-way lens of glass or other substance providing an angle view of not less than 160 degrees.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.151/3">
<num value="3">(3)</num>
<content>"Exterior door" means a door providing access from a dwelling interior to the exterior. The term includes a door between a living area and a garage but does not include a sliding glass door or a screen door.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.151/4">
<num value="4">(4)</num>
<content>"French doors" means a set of two exterior doors in which each door is hinged and abuts the other door when closed. The term includes double-hinged patio doors.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.151/5">
<num value="5">(5)</num>
<chapeau>"Keyed dead bolt" means:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c92/scD/s92.151/A">
<num value="A">(A)</num>
<content>a door lock not in the doorknob that:</content>
</subparagraph>
</paragraph>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.151/i">
<num value="i">(i)</num>
<chapeau>locks with a bolt into the doorjamb; and</chapeau>
<clause identifier="/us/tx/pr/t8/c92/scD/s92.151/ii">
<num value="ii">(ii)</num>
<content>is operated from the exterior by a key, card, or combination and from the interior by a knob or lever without a key, card, or combination; or</content>
</clause>
<subparagraph identifier="/us/tx/pr/t8/c92/scD/s92.151/B">
<num value="B">(B)</num>
<content>a doorknob lock that contains a bolt with at least a one-inch throw.</content>
</subparagraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.151/6">
<num value="6">(6)</num>
<chapeau>"Keyless bolting device" means a door lock not in the doorknob that locks:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c92/scD/s92.151/A">
<num value="A">(A)</num>
<content>with a bolt into a strike plate screwed into the portion of the doorjamb surface that faces the edge of the door when the door is closed or into a metal doorjamb that serves as the strike plate, operable only by knob or lever from the door's interior and not in any manner from the door's exterior, and that is commonly known as a keyless dead bolt;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scD/s92.151/B">
<num value="B">(B)</num>
<content>by a drop bolt system operated by placing a central metal plate over a metal doorjamb restraint that protrudes from the doorjamb and that is affixed to the doorjamb frame by means of three case-hardened screws at least three inches in length. One-half of the central plate must overlap the interior surface of the door and the other half of the central plate must overlap the doorjamb when the plate is placed over the doorjamb restraint. The drop bolt system must prevent the door from being opened unless the central plate is lifted off of the doorjamb restraint by a person who is on the interior side of the door.</content>
<continuation>The term "keyless bolting device" does not include a chain latch, flip latch, surface-mounted slide bolt, mortise door bolt, surface-mounted barrel bolt, surface-mounted swing bar door guard, spring-loaded nightlatch, foot bolt, or other lock or latch; or</continuation>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scD/s92.151/C">
<num value="C">(C)</num>
<content>by a metal bar or metal tube that is placed across the entire interior side of the door and secured in place at each end of the bar or tube by heavy-duty metal screw hooks. The screw hooks must be at least three inches in length and must be screwed into the door frame stud or wall stud on each side of the door. The bar or tube must be capable of being secured to both of the screw hooks and must be permanently attached in some way to the door frame stud or wall stud. When secured to the screw hooks, the bar or tube must prevent the door from being opened unless the bar or tube is removed by a person who is on the interior side of the door.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.151/7">
<num value="7">(7)</num>
<content>"Landlord" means a dwelling owner, lessor, sublessor, management company, or managing agent, including an on-site manager.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.151/8">
<num value="8">(8)</num>
<chapeau>"Multiunit complex" means two or more dwellings in one or more buildings that are:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c92/scD/s92.151/A">
<num value="A">(A)</num>
<content>under common ownership;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scD/s92.151/B">
<num value="B">(B)</num>
<content>managed by the same owner, agent, or management company; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scD/s92.151/C">
<num value="C">(C)</num>
<content>located on the same lot or tract or adjacent lots or tracts of land.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.151/9">
<num value="9">(9)</num>
<content>"Possession of a dwelling" means occupancy by a tenant under a lease, including occupancy until the time the tenant moves out or a writ of possession is issued by a court. The term does not include occupancy before the initial occupancy date authorized under a lease.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.151/10">
<num value="10">(10)</num>
<content>"Rekey" means to change or alter a security device that is operated by a key, card, or combination so that a different key, card, or combination is necessary to operate the security device.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.151/11">
<num value="11">(11)</num>
<content>"Security device" means a doorknob lock, door viewer, keyed dead bolt, keyless bolting device, sliding door handle latch, sliding door pin lock, sliding door security bar, or window latch in a dwelling.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.151/12">
<num value="12">(12)</num>
<chapeau>"Sliding door handle latch" means a latch or lock:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c92/scD/s92.151/A">
<num value="A">(A)</num>
<content>located near the handle on a sliding glass door;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scD/s92.151/B">
<num value="B">(B)</num>
<content>operated with or without a key; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scD/s92.151/C">
<num value="C">(C)</num>
<content>designed to prevent the door from being opened.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.151/13">
<num value="13">(13)</num>
<content>"Sliding door pin lock" means a lock on a sliding glass door that consists of a pin or nail inserted from the interior side of the door at the side opposite the door's handle and that is designed to prevent the door from being opened or lifted.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.151/14">
<num value="14">(14)</num>
<content>"Sliding door security bar" means a bar or rod that can be placed at the bottom of or across the interior side of the fixed panel of a sliding glass door and that is designed to prevent the door from being opened.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.151/15">
<num value="15">(15)</num>
<content>"Tenant turnover date" means the date a tenant moves into a dwelling under a lease after all previous occupants have moved out. The term does not include dates of entry or occupation not authorized by the landlord.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.151/16">
<num value="16">(16)</num>
<content>"Window latch" means a device on a window that prevents the window from being opened and that is operated without a key and only from the interior.</content>
</paragraph>
</subsection>
<sourceCredit>Amended by Acts 1993, 73rd Leg., ch. 357, Sec. 3, eff. Sept. 1, 1993; Acts 1999, 76th Leg., ch. 16, Sec. 1, eff. Sept. 1, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scD/s92.152">
<num value="92.152">Sec. 92.152.</num>
<heading>APPLICATION OF SUBCHAPTER</heading>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.152/a">
<num value="a">(a)</num>
<chapeau>This subchapter does not apply to:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.152/1">
<num value="1">(1)</num>
<content>a room in a hotel, motel, or inn or to similar transient housing;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.152/2">
<num value="2">(2)</num>
<content>residential housing owned or operated by a public or private college or university accredited by a recognized accrediting agency as defined under Section 61.003, Education Code;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.152/3">
<num value="3">(3)</num>
<content>residential housing operated by preparatory schools accredited by the Texas Education Agency, a regional accrediting agency, or any accrediting agency recognized by the commissioner of education; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.152/4">
<num value="4">(4)</num>
<content>a temporary residential tenancy created by a contract for sale in which the buyer occupies the property before closing or the seller occupies the property after closing for a specific term not to exceed 90 days.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.152/b">
<num value="b">(b)</num>
<chapeau>Except as provided by Subsection (a), a dwelling to which this subchapter applies includes:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.152/1">
<num value="1">(1)</num>
<content>a room in a dormitory or rooming house;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.152/2">
<num value="2">(2)</num>
<content>a mobile home;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.152/3">
<num value="3">(3)</num>
<content>a single family house, duplex, or triplex; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.152/4">
<num value="4">(4)</num>
<content>a living unit in an apartment, condominium, cooperative, or townhome project.</content>
</paragraph>
</subsection>
<sourceCredit>Amended by Acts 1993, 73rd Leg., ch. 357, Sec. 3, eff. Sept. 1, 1993; Acts 1995, 74th Leg., ch. 126, Sec. 1, eff. Aug. 28, 1995; Acts 1995, 74th Leg., ch. 869, Sec. 2, eff. Jan. 1, 1996.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scD/s92.153">
<num value="92.153">Sec. 92.153.</num>
<heading>SECURITY DEVICES REQUIRED WITHOUT NECESSITY OF TENANT REQUEST</heading>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.153/a">
<num value="a">(a)</num>
<chapeau>Except as provided by Subsections (b), (e), (f), (g), and (h) and without necessity of request by the tenant, a dwelling must be equipped with:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.153/1">
<num value="1">(1)</num>
<content>a window latch on each exterior window of the dwelling;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.153/2">
<num value="2">(2)</num>
<content>a doorknob lock or keyed dead bolt on each exterior door;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.153/3">
<num value="3">(3)</num>
<content>a sliding door pin lock on each exterior sliding glass door of the dwelling;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.153/4">
<num value="4">(4)</num>
<content>a sliding door handle latch or a sliding door security bar on each exterior sliding glass door of the dwelling; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.153/5">
<num value="5">(5)</num>
<content>a keyless bolting device and a door viewer on each exterior door of the dwelling.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.153/b">
<num value="b">(b)</num>
<chapeau>If the dwelling has French doors, one door of each pair of French doors must meet the requirements of Subsection (a) and the other door must have:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.153/1">
<num value="1">(1)</num>
<content>a keyed dead bolt or keyless bolting device capable of insertion into the doorjamb above the door and a keyless bolting device capable of insertion into the floor or threshold, each with a bolt having a throw of one inch or more; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.153/2">
<num value="2">(2)</num>
<content>a bolt installed inside the door and operated from the edge of the door, capable of insertion into the doorjamb above the door, and another bolt installed inside the door and operated from the edge of the door capable of insertion into the floor or threshold, each bolt having a throw of three-fourths inch or more.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.153/c">
<num value="c">(c)</num>
<content>A security device required by Subsection (a) or (b) must be installed at the landlord's expense.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.153/d">
<num value="d">(d)</num>
<content>Subsections (a) and (b) apply only when a tenant is in possession of a dwelling.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.153/e">
<num value="e">(e)</num>
<chapeau>A keyless bolting device is not required to be installed at the landlord's expense on an exterior door if:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.153/1">
<num value="1">(1)</num>
<content>the dwelling is part of a multiunit complex in which the majority of dwelling units are leased to tenants who are over 55 years of age or who have a physical or mental disability;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.153/2">
<num value="2">(2)</num>
<content>a tenant or occupant in the dwelling is over 55 years of age or has a physical or mental disability; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.153/3">
<num value="3">(3)</num>
<content>the landlord is expressly required or permitted to periodically check on the well-being or health of the tenant as a part of a written lease or other written agreement.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.153/f">
<num value="f">(f)</num>
<content>A keyless bolting device is not required to be installed at the landlord's expense if a tenant or occupant in the dwelling is over 55 years of age or has a physical or mental disability, the tenant requests, in writing, that the landlord deactivate or not install the keyless bolting device, and the tenant certifies in the request that the tenant or occupant is over 55 years of age or has a physical or mental disability. The request must be a separate document and may not be included as part of a lease agreement. A landlord is not exempt as provided by this subsection if the landlord knows or has reason to know that the requirements of this subsection are not fulfilled.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.153/g">
<num value="g">(g)</num>
<chapeau>A keyed dead bolt or a doorknob lock is not required to be installed at the landlord's expense on an exterior door if at the time the tenant agrees to lease the dwelling:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.153/1">
<num value="1">(1)</num>
<content>at least one exterior door usable for normal entry into the dwelling has both a keyed dead bolt and a keyless bolting device, installed in accordance with the height, strike plate, and throw requirements of Section 92.154; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.153/2">
<num value="2">(2)</num>
<content>all other exterior doors have a keyless bolting device installed in accordance with the height, strike plate, and throw requirements of Section 92.154.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.153/h">
<num value="h">(h)</num>
<content>A security device required by this section must be operable throughout the time a tenant is in possession of a dwelling. However, a landlord may deactivate or remove the locking mechanism of a doorknob lock or remove any device not qualifying as a keyless bolting device if a keyed dead bolt has been installed on the same door.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.153/i">
<num value="i">(i)</num>
<chapeau>A landlord is subject to the tenant remedies provided by Section 92.164(a)(4) if the landlord:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.153/1">
<num value="1">(1)</num>
<content>deactivates or does not install a keyless bolting device, claiming an exemption under Subsection (e), (f), or (g); and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.153/2">
<num value="2">(2)</num>
<content>knows or has reason to know that the requirements of the subsection granting the exemption are not fulfilled.</content>
</paragraph>
</subsection>
<sourceCredit>Amended by Acts 1993, 73rd Leg., ch. 357, Sec. 3, eff. Sept. 1, 1993; Acts 1995, 74th Leg., ch. 869, Sec. 3, eff. Jan. 1, 1996.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scD/s92.154">
<num value="92.154">Sec. 92.154.</num>
<heading>HEIGHT, STRIKE PLATE, AND THROW REQUIREMENTS--KEYED DEAD BOLT OR KEYLESS BOLTING DEVICE</heading>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.154/a">
<num value="a">(a)</num>
<chapeau>A keyed dead bolt or a keyless bolting device required by this subchapter must be installed at a height:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.154/1">
<num value="1">(1)</num>
<content>not lower than 36 inches from the floor; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.154/2">
<num value="2">(2)</num>
<chapeau>not higher than:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c92/scD/s92.154/A">
<num value="A">(A)</num>
<content>54 inches from the floor, if installed before September 1, 1993; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scD/s92.154/B">
<num value="B">(B)</num>
<content>48 inches from the floor, if installed on or after September 1, 1993.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.154/b">
<num value="b">(b)</num>
<chapeau>A keyed dead bolt or a keyless bolting device described in Section 92.151(6)(A) or (B) in a dwelling must:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.154/1">
<num value="1">(1)</num>
<content>have a strike plate screwed into the portion of the doorjamb surface that faces the edge of the door when the door is closed; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.154/2">
<num value="2">(2)</num>
<content>be installed in a door with a metal doorjamb that serves as the strike plate.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.154/c">
<num value="c">(c)</num>
<content>A keyed dead bolt or keyless dead bolt, as described by Section 92.151(6)(A), installed in a dwelling on or after September 1, 1993, must have a bolt with a throw of not less than one inch.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.154/d">
<num value="d">(d)</num>
<content>The requirements of this section do not apply to a keyed dead bolt or a keyless bolting device in one door of a pair of French doors that is installed in accordance with the requirements of Section 92.153(b)(1) or (2).</content>
</subsection>
<sourceCredit>Amended by Acts 1993, 73rd Leg., ch. 357, Sec. 3, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scD/s92.155">
<num value="92.155">Sec. 92.155.</num>
<heading>HEIGHT REQUIREMENTS--SLIDING DOOR SECURITY DEVICES</heading>
<chapeau>A sliding door pin lock or sliding door security bar required by this subchapter must be installed at a height not higher than:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.155/1">
<num value="1">(1)</num>
<content>54 inches from the floor, if installed before September 1, 1993; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.155/2">
<num value="2">(2)</num>
<content>48 inches from the floor, if installed on or after September 1, 1993.</content>
</paragraph>
<sourceCredit>Amended by Acts 1993, 73rd Leg., ch. 357, Sec. 3, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scD/s92.156">
<num value="92.156">Sec. 92.156.</num>
<heading>REKEYING OR CHANGE OF SECURITY DEVICES</heading>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.156/a">
<num value="a">(a)</num>
<content>Except as otherwise provided by Subsection (e), a security device operated by a key, card, or combination shall be rekeyed by the landlord at the landlord's expense not later than the seventh day after each tenant turnover date.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.156/b">
<num value="b">(b)</num>
<content>A landlord shall perform additional rekeying or change a security device at the tenant's expense if requested by the tenant. A tenant may make an unlimited number of requests under this subsection.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.156/c">
<num value="c">(c)</num>
<content>The expense of rekeying security devices for purposes of the use or change of the landlord's master key must be paid by the landlord.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.156/d">
<num value="d">(d)</num>
<content>This section does not apply to locks on closet doors or other interior doors.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.156/e">
<num value="e">(e)</num>
<content>If a tenant vacates the premises in breach of a written lease, the landlord may deduct from the tenant's security deposit the reasonable cost incurred by the landlord to rekey a security device as required by this section only if the lease includes a provision that is underlined or printed in boldface type authorizing the deduction.</content>
</subsection>
<sourceCredit>Amended by Acts 1993, 73rd Leg., ch. 357, Sec. 3, eff. Sept. 1, 1993.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1072 (H.B. 2404), Sec. 1, eff. January 1, 2016.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scD/s92.157">
<num value="92.157">Sec. 92.157.</num>
<heading>SECURITY DEVICES REQUESTED BY TENANT</heading>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.157/a">
<num value="a">(a)</num>
<chapeau>At a tenant's request made at any time, a landlord, at the tenant's expense, shall install:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.157/1">
<num value="1">(1)</num>
<chapeau>a keyed dead bolt on an exterior door if the door has:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c92/scD/s92.157/A">
<num value="A">(A)</num>
<content>a doorknob lock but not a keyed dead bolt; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scD/s92.157/B">
<num value="B">(B)</num>
<content>a keyless bolting device but not a keyed dead bolt or doorknob lock; and</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.157/2">
<num value="2">(2)</num>
<content>a sliding door handle latch or sliding door security bar if the door is an exterior sliding glass door without a sliding door handle latch or sliding door security bar.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.157/b">
<num value="b">(b)</num>
<chapeau>At a tenant's request made before January 1, 1995, a landlord, at the tenant's expense, shall install on an exterior door of a dwelling constructed before September 1, 1993:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.157/1">
<num value="1">(1)</num>
<content>a keyless bolting device if the door does not have a keyless bolting device; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.157/2">
<num value="2">(2)</num>
<content>a door viewer if the door does not have a door viewer.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.157/c">
<num value="c">(c)</num>
<content>If a security device required by Section 92.153 to be installed on or after January 1, 1995, without necessity of a tenant's request has not been installed by the landlord, the tenant may request the landlord to immediately install it, and the landlord shall immediately install it at the landlord's expense.</content>
</subsection>
<sourceCredit>Amended by Acts 1993, 73rd Leg., ch. 357, Sec. 3, eff. Sept. 1, 1993.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1072 (H.B. 2404), Sec. 2, eff. January 1, 2016.
Acts 2015, 84th Leg., R.S., Ch. 1198 (S.B. 1367), Sec. 7, eff. January 1, 2016.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scD/s92.158">
<num value="92.158">Sec. 92.158.</num>
<heading>LANDLORD'S DUTY TO REPAIR OR REPLACE SECURITY DEVICE</heading>
<content>During the lease term and any renewal period, a landlord shall repair or replace a security device on request or notification by the tenant that the security device is inoperable or in need of repair or replacement.</content>
<sourceCredit>Amended by Acts 1993, 73rd Leg., ch. 357, Sec. 3, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scD/s92.159">
<num value="92.159">Sec. 92.159.</num>
<heading>WHEN TENANT'S REQUEST OR NOTICE MUST BE IN WRITING</heading>
<content>A tenant's request or notice under this subchapter may be given orally unless the tenant has a written lease that requires the request or notice to be in writing and that requirement is underlined or in boldfaced print in the lease.</content>
<sourceCredit>Amended by Acts 1993, 73rd Leg., ch. 357, Sec. 3, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scD/s92.160">
<num value="92.160">Sec. 92.160.</num>
<heading>TYPE, BRAND, AND MANNER OF INSTALLATION</heading>
<content>Except as otherwise required by this subchapter, a landlord may select the type, brand, and manner of installation, including placement, of a security device installed under this subchapter. This section does not apply to a security device installed, repaired, changed, replaced, or rekeyed by a tenant under Section 92.164(a)(1) or 92.165(1).</content>
<sourceCredit>Amended by Acts 1993, 73rd Leg., ch. 357, Sec. 3, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scD/s92.161">
<num value="92.161">Sec. 92.161.</num>
<heading>COMPLIANCE WITH TENANT REQUEST REQUIRED WITHIN REASONABLE TIME</heading>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.161/a">
<num value="a">(a)</num>
<content>Except as provided by Subsections (b) and (c), a landlord must comply with a tenant's request for rekeying, changing, installing, repairing, or replacing a security device under Section 92.156, 92.157, or 92.158 within a reasonable time. A reasonable time for purposes of this subsection is presumed to be not later than the seventh day after the date the request is received by the landlord.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.161/b">
<num value="b">(b)</num>
<content>If within the time allowed under Section 92.162(c) a landlord requests advance payment of charges that the landlord is entitled to collect under that section, the landlord shall comply with a tenant's request under Section 92.156(b), 92.157(a), or 92.157(b) within a reasonable time. A reasonable time for purposes of this subsection is presumed to be not later than the seventh day after the date a tenant's advance payment is received by the landlord, except as provided by Subsection (c).</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.161/c">
<num value="c">(c)</num>
<chapeau>A reasonable time for purposes of Subsections (a) and (b) is presumed to be not later than 72 hours after the time of receipt of the tenant's request and any required advance payment if at the time of making the request the tenant informed the landlord that:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.161/1">
<num value="1">(1)</num>
<content>an unauthorized entry occurred or was attempted in the tenant's dwelling;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.161/2">
<num value="2">(2)</num>
<content>an unauthorized entry occurred or was attempted in another unit in the multiunit complex in which the tenant's dwelling is located during the two months preceding the date of the request; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.161/3">
<num value="3">(3)</num>
<content>a crime of personal violence occurred in the multiunit complex in which the tenant's dwelling is located during the two months preceding the date of the request.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.161/d">
<num value="d">(d)</num>
<chapeau>A landlord may rebut the presumption provided by Subsection (a) or (b) if despite the diligence of the landlord:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.161/1">
<num value="1">(1)</num>
<content>the landlord did not know of the tenant's request, without the fault of the landlord;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.161/2">
<num value="2">(2)</num>
<content>materials, labor, or utilities were unavailable; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.161/3">
<num value="3">(3)</num>
<content>a delay was caused by circumstances beyond the landlord's control, including the illness or death of the landlord or a member of the landlord's immediate family.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.161/e">
<num value="e">(e)</num>
<content>This section does not apply to a landlord's duty to install or rekey, without necessity of a tenant's request, a security device under Section 92.153 or 92.156(a).</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 357, Sec. 3, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scD/s92.162">
<num value="92.162">Sec. 92.162.</num>
<heading>PAYMENT OF CHARGES; LIMITS ON AMOUNT CHARGED</heading>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.162/a">
<num value="a">(a)</num>
<content>A landlord may not require a tenant to pay for repair or replacement of a security device due to normal wear and tear. A landlord may not require a tenant to pay for other repairs or replacements of a security device except as provided by Subsections (b), (c), and (d).</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.162/b">
<num value="b">(b)</num>
<content>A landlord may require a tenant to pay for repair or replacement of a security device if an underlined provision in a written lease authorizes the landlord to do so and the repair or replacement is necessitated by misuse or damage by the tenant, a member of the tenant's family, an occupant, or a guest, and not by normal wear and tear. Misuse of or damage to a security device that occurs during the tenant's occupancy is presumed to be caused by the tenant, a family member, an occupant, or a guest. The tenant has the burden of proving that the misuse or damage was caused by another party.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.162/c">
<num value="c">(c)</num>
<chapeau>A landlord may require a tenant to pay in advance charges for which the tenant is liable under this subchapter if a written lease authorizes the landlord to require advance payment, and the landlord notifies the tenant within a reasonable time after the tenant's request that advance payment is required, and:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.162/1">
<num value="1">(1)</num>
<content>the tenant is more than 30 days delinquent in reimbursing the landlord for charges to which the landlord is entitled under Subsection (b); or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.162/2">
<num value="2">(2)</num>
<content>the tenant requested that the landlord repair, install, change, or rekey the same security device during the 30 days preceding the tenant's request, and the landlord complied with the request.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.162/d">
<num value="d">(d)</num>
<content>A landlord authorized by this subchapter to charge a tenant for repairing, installing, changing, or rekeying a security device under this subchapter may not require the tenant to pay more than the total cost charged by a third-party contractor for material, labor, taxes, and extra keys. If the landlord's employees perform the work, the charge may include a reasonable amount for overhead but may not include a profit to the landlord. If management company employees perform the work, the charge may include reasonable overhead and profit but may not exceed the cost charged to the owner by the management company for comparable security devices installed by management company employees at the owner's request and expense.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.162/e">
<num value="e">(e)</num>
<content>The owner of a dwelling shall reimburse a management company, managing agent, or on-site manager for costs expended by that person in complying with this subchapter. A management company, managing agent, or on-site manager may reimburse itself for the costs from the owner's funds in its possession or control.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 357, Sec. 3, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scD/s92.163">
<num value="92.163">Sec. 92.163.</num>
<heading>REMOVAL OR ALTERATION OF SECURITY DEVICE BY TENANT</heading>
<content>A security device that is installed, changed, or rekeyed under this subchapter becomes a fixture of the dwelling. Except as provided by Section 92.164(a)(1) or 92.165(1) regarding the remedy of repair-and-deduct, a tenant may not remove, change, rekey, replace, or alter a security device or have it removed, changed, rekeyed, replaced, or altered without permission of the landlord.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 357, Sec. 3, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scD/s92.164">
<num value="92.164">Sec. 92.164.</num>
<heading>TENANT REMEDIES FOR LANDLORD'S FAILURE TO INSTALL OR REKEY CERTAIN SECURITY DEVICES</heading>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.164/a">
<num value="a">(a)</num>
<chapeau>If a landlord does not comply with Section 92.153 or 92.156(a) regarding installation or rekeying of a security device, the tenant may:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.164/1">
<num value="1">(1)</num>
<content>install or rekey the security device as required by this subchapter and deduct the reasonable cost of material, labor, taxes, and extra keys from the tenant's next rent payment, in accordance with Section 92.166;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.164/2">
<num value="2">(2)</num>
<content>serve a written request for compliance on the landlord, and, except as provided by Subsections (b) and (c), if the landlord does not comply on or before the third day after the date the notice is received, unilaterally terminate the lease without court proceedings;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.164/3">
<num value="3">(3)</num>
<chapeau>file suit against the landlord without serving a request for compliance and obtain a judgment for:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c92/scD/s92.164/A">
<num value="A">(A)</num>
<content>a court order directing the landlord to comply, if the tenant is in possession of the dwelling;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scD/s92.164/B">
<num value="B">(B)</num>
<content>the tenant's actual damages;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scD/s92.164/C">
<num value="C">(C)</num>
<content>court costs; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scD/s92.164/D">
<num value="D">(D)</num>
<content>attorney's fees except in suits for recovery of property damages, personal injuries, or wrongful death; and</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.164/4">
<num value="4">(4)</num>
<chapeau>serve a written request for compliance on the landlord, and, except as provided by Subsections (b) and (c), if the landlord does not comply on or before the third day after the date the notice is received, file suit against the landlord and obtain a judgment for:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c92/scD/s92.164/A">
<num value="A">(A)</num>
<content>a court order directing the landlord to comply and bring all dwellings owned by the landlord into compliance, if the tenant serving the written request is in possession of the dwelling;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scD/s92.164/B">
<num value="B">(B)</num>
<content>the tenant's actual damages;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scD/s92.164/C">
<num value="C">(C)</num>
<content>punitive damages if the tenant suffers actual damages;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scD/s92.164/D">
<num value="D">(D)</num>
<content>a civil penalty of one month's rent plus $500;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scD/s92.164/E">
<num value="E">(E)</num>
<content>court costs; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scD/s92.164/F">
<num value="F">(F)</num>
<content>attorney's fees except in suits for recovery of property damages, personal injuries, or wrongful death.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.164/b">
<num value="b">(b)</num>
<chapeau>A tenant may not unilaterally terminate the lease under Subsection (a)(2) or file suit against the landlord to obtain a judgment under Subsection (a)(4) unless the landlord does not comply on or before the seventh day after the date the written request for compliance is received if the lease includes language underlined or in boldface print that in substance provides the tenant with notice that:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.164/1">
<num value="1">(1)</num>
<content>the landlord at the landlord's expense is required to equip the dwelling, when the tenant takes possession, with the security devices described by Sections 92.153(a)(1)-(4) and (6);</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.164/2">
<num value="2">(2)</num>
<content>the landlord is not required to install a doorknob lock or keyed dead bolt at the landlord's expense if the exterior doors meet the requirements of Section 92.153(f);</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.164/3">
<num value="3">(3)</num>
<content>the landlord is not required to install a keyless bolting device at the landlord's expense on an exterior door if the landlord is expressly required or permitted to periodically check on the well-being or health of the tenant as provided by Section 92.153(e)(3); and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.164/4">
<num value="4">(4)</num>
<content>the tenant has the right to install or rekey a security device required by this subchapter and deduct the reasonable cost from the tenant's next rent payment, as provided by Subsection (a)(1).</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.164/c">
<num value="c">(c)</num>
<chapeau>Regardless of whether the lease contains language complying with the requirements of Subsection (b), the additional time for landlord compliance provided by Subsection (b) does not apply if at the time the tenant served the written request for compliance on the landlord the tenant informed the landlord that an unauthorized entry occurred or was attempted in the tenant's dwelling, an unauthorized entry occurred or was attempted in another unit in the multiunit complex in which the tenant's dwelling is located during the two months preceding the date of the request, or a crime of personal violence occurred in the multiunit complex in which the tenant's dwelling is located during the two months preceding the date of the request, unless despite the diligence of the landlord:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.164/1">
<num value="1">(1)</num>
<content>the landlord did not know of the tenant's request, without the fault of the landlord;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.164/2">
<num value="2">(2)</num>
<content>materials, labor, or utilities were unavailable; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.164/3">
<num value="3">(3)</num>
<content>a delay was caused by circumstances beyond the landlord's control, including the illness or death of the landlord or a member of the landlord's immediate family.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 357, Sec. 3, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scD/s92.1641">
<num value="92.1641">Sec. 92.1641.</num>
<heading>LANDLORD'S DEFENSES RELATING TO INSTALLING OR REKEYING CERTAIN SECURITY DEVICES</heading>
<chapeau>The landlord has a defense to liability under Section 92.164 if:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.1641/1">
<num value="1">(1)</num>
<content>the tenant has not fully paid all rent then due from the tenant on the date the tenant gives a request under Section 92.157(c) or the notice required by Section 92.164; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.1641/2">
<num value="2">(2)</num>
<content>on the date the tenant terminates the lease or files suit the tenant has not fully paid costs requested by the landlord and authorized by Section 92.162.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3645, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1993, 73rd Leg., ch. 48, Sec. 17, eff. Sept. 1, 1993. Renumbered from Sec. 92.158 and amended 2001, 77th Leg., ch. 1420, Sec. 17.001(a), eff. Sept. 1, 2001.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1072 (H.B. 2404), Sec. 3, eff. January 1, 2016.
Acts 2015, 84th Leg., R.S., Ch. 1198 (S.B. 1367), Sec. 8, eff. January 1, 2016.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scD/s92.165">
<num value="92.165">Sec. 92.165.</num>
<heading>TENANT REMEDIES FOR OTHER LANDLORD VIOLATIONS</heading>
<chapeau>If a landlord does not comply with a tenant's request regarding rekeying, changing, adding, repairing, or replacing a security device under Section 92.156(b), 92.157, or 92.158 in accordance with the time limits and other requirements of this subchapter, the tenant may:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.165/1">
<num value="1">(1)</num>
<content>install, repair, change, replace, or rekey the security devices as required by this subchapter and deduct the reasonable cost of material, labor, taxes, and extra keys from the tenant's next rent payment in accordance with Section 92.166;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.165/2">
<num value="2">(2)</num>
<content>unilaterally terminate the lease without court proceedings; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.165/3">
<num value="3">(3)</num>
<chapeau>file suit against the landlord and obtain a judgment for:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c92/scD/s92.165/A">
<num value="A">(A)</num>
<content>a court order directing the landlord to comply, if the tenant is in possession of the dwelling;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scD/s92.165/B">
<num value="B">(B)</num>
<content>the tenant's actual damages;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scD/s92.165/C">
<num value="C">(C)</num>
<content>punitive damages if the tenant suffers actual damages and the landlord's failure to comply is intentional, malicious, or grossly negligent;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scD/s92.165/D">
<num value="D">(D)</num>
<content>a civil penalty of one month's rent plus $500;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scD/s92.165/E">
<num value="E">(E)</num>
<content>court costs; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scD/s92.165/F">
<num value="F">(F)</num>
<content>attorney's fees except in suits for recovery of property damages, personal injuries, or wrongful death.</content>
</subparagraph>
</paragraph>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 357, Sec. 3, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scD/s92.166">
<num value="92.166">Sec. 92.166.</num>
<heading>NOTICE OF TENANT'S DEDUCTION OF REPAIR COSTS FROM RENT</heading>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.166/a">
<num value="a">(a)</num>
<content>A tenant shall notify the landlord of a rent deduction attributable to the tenant's installing, repairing, changing, replacing, or rekeying of a security device under Section 92.164(a)(1) or 92.165(1) after the landlord's failure to comply with this subchapter. The notice must be given at the time of the reduced rent payment.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.166/b">
<num value="b">(b)</num>
<content>Unless otherwise provided in a written lease, a tenant shall provide one duplicate of the key to any key-operated security device installed or rekeyed by the tenant under Section 92.164(a)(1) or 92.165(1) within a reasonable time after the landlord's written request for the key.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 357, Sec. 3, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scD/s92.167">
<num value="92.167">Sec. 92.167.</num>
<heading>LANDLORD'S DEFENSES RELATING TO COMPLIANCE WITH TENANT'S REQUEST</heading>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.167/a">
<num value="a">(a)</num>
<content>A landlord has a defense to liability under Section 92.165 if on the date the tenant terminates the lease or files suit the tenant has not fully paid costs requested by the landlord and authorized by this subchapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scD/s92.167/b">
<num value="b">(b)</num>
<chapeau>A management company or managing agent who is not the owner of a dwelling and who has not purported to be the owner in the lease has a defense to liability under Sections 92.164 and 92.165 if before the date the tenant is in possession of the dwelling or the date of the tenant's request for installation, repair, replacement, change, or rekeying and before any property damage or personal injury to the tenant, the management company or managing agent:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.167/1">
<num value="1">(1)</num>
<content>did not have funds of the dwelling owner in its possession or control with which to comply with this subchapter;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.167/2">
<num value="2">(2)</num>
<content>made written request to the dwelling owner that the owner fund and allow installation, repair, change, replacement, or rekeying of security devices as required under this subchapter and mailed the request, certified mail return receipt requested, to the dwelling owner; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scD/s92.167/3">
<num value="3">(3)</num>
<chapeau>not later than the third day after the date of receipt of the tenant's request, provided the tenant with a written notice:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c92/scD/s92.167/A">
<num value="A">(A)</num>
<content>stating that the management company or managing agent has taken the actions in Subdivisions (1) and (2);</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scD/s92.167/B">
<num value="B">(B)</num>
<content>stating that the owner has not provided or will not provide the necessary funds; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scD/s92.167/C">
<num value="C">(C)</num>
<content>explaining the remedies available to the tenant for the landlord's failure to comply.</content>
</subparagraph>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 357, Sec. 3, eff. Sept. 1, 1993. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 17.001(b), eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scD/s92.168">
<num value="92.168">Sec. 92.168.</num>
<heading>TENANT'S REMEDY ON NOTICE FROM MANAGEMENT COMPANY</heading>
<content>The tenant may unilaterally terminate the lease or exercise other remedies under Sections 92.164 and 92.165 after receiving written notice from a management company that the owner of the dwelling has not provided or will not provide funds to repair, install, change, replace, or rekey a security device as required by this subchapter.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 357, Sec. 3, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scD/s92.169">
<num value="92.169">Sec. 92.169.</num>
<heading>AGENT FOR DELIVERY OF NOTICE</heading>
<content>A managing agent or an agent to whom rent is regularly paid, whether residing or maintaining an office on-site or off-site, is the agent of the landlord for purposes of notice and other communications required or permitted by this subchapter.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 357, Sec. 3, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scD/s92.170">
<num value="92.170">Sec. 92.170.</num>
<heading>EFFECT ON OTHER LANDLORD DUTIES AND TENANT REMEDIES</heading>
<content>The duties of a landlord and the remedies of a tenant under this subchapter are in lieu of common law, other statutory law, and local ordinances relating to a residential landlord's duty to install, change, rekey, repair, or replace security devices and a tenant's remedies for the landlord's failure to install, change, rekey, repair, or replace security devices, except that a municipal ordinance adopted before January 1, 1993, may require installation of security devices at the landlord's expense by an earlier date than a date required by this subchapter. This subchapter does not affect a duty of a landlord or a remedy of a tenant under Subchapter B regarding habitability.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 357, Sec. 3, eff. Sept. 1, 1993.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t8/c92/scE">
<num value="E">SUBCHAPTER E.</num>
<heading>DISCLOSURE OF OWNERSHIP AND MANAGEMENT</heading>
<section identifier="/us/tx/pr/t8/c92/scE/s92.201">
<num value="92.201">Sec. 92.201.</num>
<heading>DISCLOSURE OF OWNERSHIP AND MANAGEMENT</heading>
<subsection identifier="/us/tx/pr/t8/c92/scE/s92.201/a">
<num value="a">(a)</num>
<chapeau>A landlord shall disclose to a tenant, or to any government official or employee acting in an official capacity, according to this subchapter:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scE/s92.201/1">
<num value="1">(1)</num>
<content>the name and either a street or post office box address of the holder of record title, according to the deed records in the county clerk's office, of the dwelling rented by the tenant or inquired about by the government official or employee acting in an official capacity; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scE/s92.201/2">
<num value="2">(2)</num>
<content>if an entity located off-site from the dwelling is primarily responsible for managing the dwelling, the name and street address of the management company.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scE/s92.201/b">
<num value="b">(b)</num>
<chapeau>Disclosure to a tenant under Subsection (a) must be made by:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scE/s92.201/1">
<num value="1">(1)</num>
<content>giving the information in writing to the tenant on or before the seventh day after the day the landlord receives the tenant's request for the information;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scE/s92.201/2">
<num value="2">(2)</num>
<content>continuously posting the information in a conspicuous place in the dwelling or the office of the on-site manager or on the outside of the entry door to the office of the on-site manager on or before the seventh day after the date the landlord receives the tenant's request for the information; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scE/s92.201/3">
<num value="3">(3)</num>
<content>including the information in a copy of the tenant's lease or in written rules given to the tenant before the tenant requests the information.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scE/s92.201/c">
<num value="c">(c)</num>
<content>Disclosure of information to a tenant may be made under Subdivision (1) or (2) of Subsection (b) before the tenant requests the information.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scE/s92.201/d">
<num value="d">(d)</num>
<content>Disclosure of information to a government official or employee must be made by giving the information in writing to the official or employee on or before the seventh day after the date the landlord receives the request from the official or employee for the information.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scE/s92.201/e">
<num value="e">(e)</num>
<content>A correction to the information may be made by any of the methods authorized for providing the information.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scE/s92.201/f">
<num value="f">(f)</num>
<content>For the purposes of this section, an owner or property manager may disclose either an actual name or names or an assumed name if an assumed name certificate has been recorded with the county clerk.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3646, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1995, 74th Leg., ch. 869, Sec. 4, eff. Jan. 1, 1996.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scE/s92.202">
<num value="92.202">Sec. 92.202.</num>
<heading>LANDLORD'S FAILURE TO DISCLOSE INFORMATION</heading>
<subsection identifier="/us/tx/pr/t8/c92/scE/s92.202/a">
<num value="a">(a)</num>
<chapeau>A landlord is liable to a tenant or a governmental body according to this subchapter if:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scE/s92.202/1">
<num value="1">(1)</num>
<content>after the tenant or government official or employee makes a request for information under Section 92.201, the landlord does not provide the information; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scE/s92.202/2">
<num value="2">(2)</num>
<content>the landlord does not give the information to the tenant or government official or employee before the eighth day after the date the tenant, official, or employee gives the landlord written notice that the tenant, official, or employee may exercise remedies under this subchapter if the landlord does not comply with the request by the tenant, official, or employee for the information within seven days.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scE/s92.202/b">
<num value="b">(b)</num>
<content>If the tenant's lease is in writing, the lease may require the tenant's initial request for information to be written. A request by a government official or employee for information must be in writing.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3647, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1995, 74th Leg., ch. 869, Sec. 4, eff. Jan. 1, 1996.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scE/s92.203">
<num value="92.203">Sec. 92.203.</num>
<heading>LANDLORD'S FAILURE TO CORRECT INFORMATION</heading>
<chapeau>A landlord who has provided information under Subdivision (2) or (3) of Subsection (b) of Section 92.201 is liable to a tenant according to this subchapter if:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scE/s92.203/1">
<num value="1">(1)</num>
<content>the information becomes incorrect because a name or address changes; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scE/s92.203/2">
<num value="2">(2)</num>
<content>the landlord fails to correct the information on or before the seventh day after the date the tenant gives the landlord written notice that the tenant may exercise the remedies under this subchapter if the corrected information is not provided within seven days.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3647, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1995, 74th Leg., ch. 869, Sec. 4, eff. Jan. 1, 1996.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scE/s92.204">
<num value="92.204">Sec. 92.204.</num>
<heading>BAD FAITH VIOLATION</heading>
<chapeau>A landlord acts in bad faith and is liable according to this subchapter if the landlord gives an incorrect name or address under Subsection (a) of Section 92.201 by wilfully:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scE/s92.204/1">
<num value="1">(1)</num>
<content>disclosing incorrect information under Section 92.201(b)(1) or (2) or Section 92.201(d); or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scE/s92.204/2">
<num value="2">(2)</num>
<content>failing to correct information given under Section 92.201(b)(1) or (2) or Section 92.201(d) that the landlord knows is incorrect.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3647, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1993, 73rd Leg., ch. 48, Sec. 18, eff. Sept. 1, 1993; Acts 1995, 74th Leg., ch. 869, Sec. 4, eff. Jan. 1, 1996.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scE/s92.205">
<num value="92.205">Sec. 92.205.</num>
<heading>REMEDIES</heading>
<subsection identifier="/us/tx/pr/t8/c92/scE/s92.205/a">
<num value="a">(a)</num>
<chapeau>A tenant of a landlord who is liable under Section 92.202, 92.203, or 92.204 may obtain or exercise one or more of the following remedies:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scE/s92.205/1">
<num value="1">(1)</num>
<content>a court order directing the landlord to make a disclosure required by this subchapter;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scE/s92.205/2">
<num value="2">(2)</num>
<content>a judgment against the landlord for an amount equal to the tenant's actual costs in discovering the information required to be disclosed by this subchapter;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scE/s92.205/3">
<num value="3">(3)</num>
<content>a judgment against the landlord for one month's rent plus $100;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scE/s92.205/4">
<num value="4">(4)</num>
<content>a judgment against the landlord for court costs and attorney's fees; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scE/s92.205/5">
<num value="5">(5)</num>
<content>unilateral termination of the lease without a court proceeding.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scE/s92.205/b">
<num value="b">(b)</num>
<chapeau>A governmental body whose official or employee has requested information from a landlord who is liable under Section 92.202 or 92.204 may obtain or exercise one or more of the following remedies:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scE/s92.205/1">
<num value="1">(1)</num>
<content>a court order directing the landlord to make a disclosure required by this subchapter;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scE/s92.205/2">
<num value="2">(2)</num>
<content>a judgment against the landlord for an amount equal to the governmental body's actual costs in discovering the information required to be disclosed by this subchapter;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scE/s92.205/3">
<num value="3">(3)</num>
<content>a judgment against the landlord for $500; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scE/s92.205/4">
<num value="4">(4)</num>
<content>a judgment against the landlord for court costs and attorney's fees.</content>
</paragraph>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3648, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1995, 74th Leg., ch. 869, Sec. 4, eff. Jan. 1, 1996.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scE/s92.206">
<num value="92.206">Sec. 92.206.</num>
<heading>LANDLORD'S DEFENSE</heading>
<content>A landlord has a defense to liability under Section 92.202 or 92.203 if the tenant owes rent on the date the tenant gives a notice required by either of those sections. Rent delinquency is not a defense for a violation of Section 92.204.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3648, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scE/s92.207">
<num value="92.207">Sec. 92.207.</num>
<heading>AGENTS FOR DELIVERY OF NOTICE</heading>
<subsection identifier="/us/tx/pr/t8/c92/scE/s92.207/a">
<num value="a">(a)</num>
<chapeau>A managing or leasing agent, whether residing or maintaining an office on-site or off-site, is the agent of the landlord for purposes of:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scE/s92.207/1">
<num value="1">(1)</num>
<content>notice and other communications required or permitted by this subchapter;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scE/s92.207/2">
<num value="2">(2)</num>
<chapeau>notice and other communications from a governmental body relating to a violation of health, sanitation, safety, or nuisance laws on the landlord's property where the dwelling is located, including notices of:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c92/scE/s92.207/A">
<num value="A">(A)</num>
<content>demands for abatement of nuisances;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scE/s92.207/B">
<num value="B">(B)</num>
<content>repair of a substandard dwelling;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scE/s92.207/C">
<num value="C">(C)</num>
<content>remedy of dangerous conditions;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scE/s92.207/D">
<num value="D">(D)</num>
<content>reimbursement of costs incurred by the governmental body in curing the violation;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scE/s92.207/E">
<num value="E">(E)</num>
<content>fines; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scE/s92.207/F">
<num value="F">(F)</num>
<content>service of process.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scE/s92.207/b">
<num value="b">(b)</num>
<content>If the landlord's name and business street address in this state have not been furnished in writing to the tenant or government official or employee, the person who collects the rent from a tenant is the landlord's authorized agent for purposes of Subsection (a).</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3648, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1995, 74th Leg., ch. 869, Sec. 4, eff. Jan. 1, 1996.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scE/s92.208">
<num value="92.208">Sec. 92.208.</num>
<heading>ADDITIONAL ENFORCEMENT BY LOCAL ORDINANCE</heading>
<content>The duties of a landlord and the remedies of a tenant under this subchapter are in lieu of the common law, other statutory law, and local ordinances relating to the disclosure of ownership and management of a dwelling by a landlord to a tenant. However, this subchapter does not prohibit the adoption of a local ordinance that conforms to this subchapter but which contains additional enforcement provisions.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3648, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t8/c92/scF">
<num value="F">SUBCHAPTER F.</num>
<heading>SMOKE ALARMS AND FIRE EXTINGUISHERS</heading>
<section identifier="/us/tx/pr/t8/c92/scF/s92.251">
<num value="92.251">Sec. 92.251.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this subchapter:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.251/1">
<num value="1">(1)</num>
<content>"Bedroom" means a room designed with the intent that it be used for sleeping purposes.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.251/2">
<num value="2">(2)</num>
<content>"Dwelling unit" means a home, mobile home, duplex unit, apartment unit, condominium unit, or any dwelling unit in a multiunit residential structure. It also means a "dwelling" as defined by Section 92.001.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.251/3">
<num value="3">(3)</num>
<content>"Smoke alarm" means a device designed to detect and to alert occupants of a dwelling unit to the visible and invisible products of combustion by means of an audible alarm.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3649, ch. 576, Sec. 1, eff. Jan. 1, 1984.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 257 (H.B. 1168), Sec. 3, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scF/s92.252">
<num value="92.252">Sec. 92.252.</num>
<heading>APPLICATION OF OTHER LAW; MUNICIPAL REGULATION</heading>
<subsection identifier="/us/tx/pr/t8/c92/scF/s92.252/a">
<num value="a">(a)</num>
<chapeau>The duties of a landlord and the remedies of a tenant under this subchapter are in lieu of common law, other statutory law, and local ordinances regarding a residential landlord's duty to install, inspect, or repair a fire extinguisher or smoke alarm in a dwelling unit. However, this subchapter does not:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.252/1">
<num value="1">(1)</num>
<content>affect a local ordinance adopted before September 1, 1981, that requires landlords to install smoke alarms in new or remodeled dwelling units before September 1, 1981, if the ordinance conforms with or is amended to conform with this subchapter;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.252/2">
<num value="2">(2)</num>
<content>limit or prevent adoption or enforcement of a local ordinance relating to fire safety as a part of a building, fire, or housing code, including any requirements relating to the installation of smoke alarms or the type of smoke alarms;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.252/3">
<num value="3">(3)</num>
<content>otherwise limit or prevent the adoption of a local ordinance that conforms to this subchapter but which contains additional enforcement provisions, except as provided by Subsection (b); or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.252/4">
<num value="4">(4)</num>
<content>affect a local ordinance that requires regular inspections by local officials of smoke alarms in dwelling units and that requires smoke alarms to be operational at the time of inspection.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scF/s92.252/b">
<num value="b">(b)</num>
<chapeau>If a smoke alarm powered by battery has been installed in a dwelling unit built before September 1, 1987, in compliance with this subchapter and local ordinances, a local ordinance may not require that a smoke alarm powered by alternating current be installed in the unit unless:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.252/1">
<num value="1">(1)</num>
<chapeau>the interior of the unit is repaired, remodeled, or rebuilt at a projected cost of more than $5,000 and:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c92/scF/s92.252/A">
<num value="A">(A)</num>
<content>the repair, remodeling, or rebuilding requires a municipal building permit; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scF/s92.252/B">
<num value="B">(B)</num>
<content>either:</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scF/s92.252/i">
<num value="i">(i)</num>
<chapeau>the repair, remodeling, or rebuilding results in the removal of interior walls or ceiling finishes exposing the structure; or</chapeau>
<clause identifier="/us/tx/pr/t8/c92/scF/s92.252/ii">
<num value="ii">(ii)</num>
<content>the interior of the unit provides access for building wiring through an attic, crawl space, or basement without the removal of interior walls or ceiling finishes;</content>
</clause>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.252/2">
<num value="2">(2)</num>
<content>an addition occurs to the unit at a projected cost of more than $5,000;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.252/3">
<num value="3">(3)</num>
<content>a smoke alarm powered by alternating current was actually installed in the unit at any time prior to September 1, 1987; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.252/4">
<num value="4">(4)</num>
<content>a smoke alarm powered by alternating current was required by lawful city ordinance at the time of initial construction of the unit.</content>
</paragraph>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3649, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1987, 70th Leg., ch. 475, Sec. 1, eff. Sept. 1, 1987; Acts 1997, 75th Leg., ch. 1205, Sec. 13, eff. Sept. 1, 1997.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 257 (H.B. 1168), Sec. 3, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scF/s92.253">
<num value="92.253">Sec. 92.253.</num>
<heading>EXEMPTIONS</heading>
<subsection identifier="/us/tx/pr/t8/c92/scF/s92.253/a">
<num value="a">(a)</num>
<chapeau>This subchapter does not apply to:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.253/1">
<num value="1">(1)</num>
<content>a dwelling unit that is occupied by its owner, no part of which is leased to a tenant;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.253/2">
<num value="2">(2)</num>
<content>a dwelling unit in a building five or more stories in height in which smoke alarms are required or regulated by local ordinance; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.253/3">
<num value="3">(3)</num>
<content>a nursing or convalescent home licensed by the Department of State Health Services and certified to meet the Life Safety Code under federal law and regulations.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scF/s92.253/b">
<num value="b">(b)</num>
<content>Notwithstanding this subchapter, a person licensed to install fire alarms or fire detection devices under Chapter 6002, Insurance Code, shall comply with that chapter when installing smoke alarms.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3649, ch. 576, Sec. 1, eff. Jan. 1, 1984.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 257 (H.B. 1168), Sec. 3, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scF/s92.254">
<num value="92.254">Sec. 92.254.</num>
<heading>SMOKE ALARM</heading>
<subsection identifier="/us/tx/pr/t8/c92/scF/s92.254/a">
<num value="a">(a)</num>
<chapeau>A smoke alarm must be:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.254/1">
<num value="1">(1)</num>
<content>designed to detect both the visible and invisible products of combustion;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.254/2">
<num value="2">(2)</num>
<content>designed with an alarm audible to a person in the bedrooms it serves; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.254/3">
<num value="3">(3)</num>
<content>tested and listed for use as a smoke alarm by Underwriters Laboratories, Inc., Factory Mutual Research Corporation, or United States Testing Company, Inc.</content>
<continuation>(a-1) If requested by a tenant as an accommodation for a person with a hearing-impairment disability or as required by law as a reasonable accommodation for a person with a hearing-impairment disability, a smoke alarm must, in addition to complying with Subsection (a), be capable of alerting a hearing-impaired person in the bedrooms it serves.</continuation>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scF/s92.254/b">
<num value="b">(b)</num>
<content>Except as provided by Section 92.255(b), a smoke alarm may be powered by battery, alternating current, or other power source as required by local ordinance. The power system and installation procedure of a security device that is electrically operated rather than battery operated must comply with applicable local ordinances.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3650, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1987, 70th Leg., ch. 475, Sec. 2, eff. Sept. 1, 1987.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 824 (S.B. 1715), Sec. 2, eff. January 1, 2010.
Acts 2011, 82nd Leg., R.S., Ch. 257 (H.B. 1168), Sec. 3, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scF/s92.255">
<num value="92.255">Sec. 92.255.</num>
<heading>INSTALLATION AND LOCATION</heading>
<subsection identifier="/us/tx/pr/t8/c92/scF/s92.255/a">
<num value="a">(a)</num>
<chapeau>A landlord shall install at least one smoke alarm in each separate bedroom in a dwelling unit. In addition:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.255/1">
<num value="1">(1)</num>
<content>if the dwelling unit is designed to use a single room for dining, living, and sleeping, the smoke alarm must be located inside the room;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.255/2">
<num value="2">(2)</num>
<content>if multiple bedrooms are served by the same corridor, at least one smoke alarm must be installed in the corridor in the immediate vicinity of the bedrooms; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.255/3">
<num value="3">(3)</num>
<content>if the dwelling unit has multiple levels, at least one smoke alarm must be located on each level.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scF/s92.255/b">
<num value="b">(b)</num>
<content>If a dwelling unit was occupied as a residence before September 1, 2011, or a certificate of occupancy was issued for the dwelling unit before that date, a smoke alarm installed in accordance with Subsection (a) may be powered by battery and is not required to be interconnected with other smoke alarms, except that a smoke alarm that is installed to replace a smoke alarm that was in place on the date the dwelling unit was first occupied as a residence must comply with residential building code standards that applied to the dwelling unit on that date or Section 92.252(b).</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3650, ch. 576, Sec. 1, eff. Jan. 1, 1984.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 257 (H.B. 1168), Sec. 3, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scF/s92.257">
<num value="92.257">Sec. 92.257.</num>
<heading>INSTALLATION PROCEDURE</heading>
<subsection identifier="/us/tx/pr/t8/c92/scF/s92.257/a">
<num value="a">(a)</num>
<content>Subject to Subsections (b) and (c), a smoke alarm must be installed according to the manufacturer's recommended procedures.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scF/s92.257/b">
<num value="b">(b)</num>
<content>A smoke alarm must be installed on a ceiling or wall. If on a ceiling, it must be no closer than six inches to a wall or otherwise located in accordance with the manufacturer's installation instructions. If on a wall, it must be no closer than six inches and no farther than 12 inches from the ceiling or otherwise located in accordance with the manufacturer's installation instructions.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scF/s92.257/c">
<num value="c">(c)</num>
<content>A smoke alarm may be located other than as required by Subsection (a) or (b) if a local ordinance or a local or state fire marshal approves.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3651, ch. 576, Sec. 1, eff. Jan. 1, 1984.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 257 (H.B. 1168), Sec. 3, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scF/s92.2571">
<num value="92.2571">Sec. 92.2571.</num>
<heading>ALTERNATIVE COMPLIANCE</heading>
<chapeau>A landlord complies with the requirements of this subchapter relating to the provision of smoke alarms in the dwelling unit if the landlord:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.2571/1">
<num value="1">(1)</num>
<content>has a fire detection device, as defined by Section 6002.002, Insurance Code, that includes a fire alarm device, as defined by Section 6002.002, Insurance Code, installed in a dwelling unit; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.2571/2">
<num value="2">(2)</num>
<content>for a dwelling unit that is a one-family or two-family dwelling unit, installs smoke detectors in compliance with Chapter 766, Health and Safety Code.</content>
</paragraph>
<sourceCredit>Added by Acts 2007, 80th Leg., R.S., Ch. 1051 (H.B. 2118), Sec. 12, eff. September 1, 2007.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 257 (H.B. 1168), Sec. 3, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scF/s92.258">
<num value="92.258">Sec. 92.258.</num>
<heading>INSPECTION AND REPAIR</heading>
<subsection identifier="/us/tx/pr/t8/c92/scF/s92.258/a">
<num value="a">(a)</num>
<content>The landlord shall inspect and repair a smoke alarm according to this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scF/s92.258/b">
<num value="b">(b)</num>
<content>The landlord shall determine that the smoke alarm is in good working order at the beginning of the tenant's possession by testing the smoke alarm with smoke, by operating the testing button on the smoke alarm, or by following other recommended test procedures of the manufacturer for the particular model.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scF/s92.258/c">
<num value="c">(c)</num>
<content>During the term of a lease or during a renewal or extension, the landlord has a duty to inspect and repair a smoke alarm, but only if the tenant gives the landlord notice of a malfunction or requests to the landlord that the smoke alarm be inspected or repaired. This duty does not exist with respect to damage or a malfunction caused by the tenant, the tenant's family, or the tenant's guests or invitees during the term of the lease or a renewal or extension, except that the landlord has a duty to repair or replace the smoke alarm if the tenant pays in advance the reasonable repair or replacement cost, including labor, materials, taxes, and overhead.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scF/s92.258/d">
<num value="d">(d)</num>
<content>The landlord must comply with the tenant's request for inspection or repair of a smoke alarm within a reasonable time, considering the availability of material, labor, and utilities.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scF/s92.258/e">
<num value="e">(e)</num>
<content>The landlord has met the duty to inspect and repair if the smoke alarm is in good working order after the landlord tests the smoke alarm with smoke, operates the testing button on the smoke alarm, or follows other recommended test procedures of the manufacturer for the particular model.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scF/s92.258/f">
<num value="f">(f)</num>
<content>The landlord is not obligated to provide batteries for a battery-operated smoke alarm after a tenant takes possession if the smoke alarm was in good working order at the time the tenant took possession.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scF/s92.258/g">
<num value="g">(g)</num>
<content>A smoke alarm that is in good working order at the beginning of a tenant's possession is presumed to be in good working order until the tenant requests repair of the smoke alarm as provided by this subchapter.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3651, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1993, 73rd Leg., ch. 48, Sec. 19, eff. Sept. 1, 1993; Acts 1995, 74th Leg., ch. 869, Sec. 7, eff. Sept. 1, 1995; Acts 1995, 74th Leg., ch. 918, Sec. 1, eff. Sept. 1, 1995.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 257 (H.B. 1168), Sec. 3, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scF/s92.259">
<num value="92.259">Sec. 92.259.</num>
<heading>LANDLORD'S FAILURE TO INSTALL, INSPECT, OR REPAIR</heading>
<subsection identifier="/us/tx/pr/t8/c92/scF/s92.259/a">
<num value="a">(a)</num>
<chapeau>A landlord is liable according to this subchapter if:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.259/1">
<num value="1">(1)</num>
<content>the landlord did not install a smoke alarm at the time of initial occupancy by the tenant as required by this subchapter or a municipal ordinance permitted by this subchapter; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.259/2">
<num value="2">(2)</num>
<content>the landlord does not install, inspect, or repair the smoke alarm on or before the seventh day after the date the tenant gives the landlord written notice that the tenant may exercise his remedies under this subchapter if the landlord does not comply with the request within seven days.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scF/s92.259/b">
<num value="b">(b)</num>
<content>If the tenant gives notice under Subsection (a)(2) and the tenant's lease is in writing, the lease may require the tenant to make the initial request for installation, inspection, or repair of a smoke alarm in writing.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3652, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1995, 74th Leg., ch. 869, Sec. 8, eff. Sept. 1, 1995; Acts 1995, 74th Leg., ch. 918, Sec. 2, eff. Sept. 1, 1995.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 257 (H.B. 1168), Sec. 3, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scF/s92.260">
<num value="92.260">Sec. 92.260.</num>
<heading>TENANT REMEDIES</heading>
<chapeau>A tenant of a landlord who is liable under Section 92.259 may obtain or exercise one or more of the following remedies:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.260/1">
<num value="1">(1)</num>
<content>a court order directing the landlord to comply with the tenant's request if the tenant is in possession of the dwelling unit;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.260/2">
<num value="2">(2)</num>
<content>a judgment against the landlord for damages suffered by the tenant because of the landlord's violation;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.260/3">
<num value="3">(3)</num>
<content>a judgment against the landlord for a civil penalty of one month's rent plus $100 if the landlord violates Section 92.259(a)(2);</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.260/4">
<num value="4">(4)</num>
<content>a judgment against the landlord for court costs;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.260/5">
<num value="5">(5)</num>
<content>a judgment against the landlord for attorney's fees in an action under Subdivision (1) or (3); and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.260/6">
<num value="6">(6)</num>
<content>unilateral termination of the lease without a court proceeding if the landlord violates Section 92.259(a)(2).</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3653, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1995, 74th Leg., ch. 869, Sec. 9, eff. Sept. 1, 1995; Acts 1995, 74th Leg., ch. 918, Sec. 3, eff. Sept. 1, 1995.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scF/s92.261">
<num value="92.261">Sec. 92.261.</num>
<heading>LANDLORD'S DEFENSES</heading>
<chapeau>The landlord has a defense to liability under Section 92.259 if:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.261/1">
<num value="1">(1)</num>
<content>on the date the tenant gives the notice required by Section 92.259 the tenant has not paid all rent due from the tenant; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.261/2">
<num value="2">(2)</num>
<content>on the date the tenant terminates the lease or files suit the tenant has not fully paid costs requested by the landlord and authorized by Section 92.258.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3653, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scF/s92.2611">
<num value="92.2611">Sec. 92.2611.</num>
<heading>TENANT'S DISABLING OF A SMOKE ALARM</heading>
<subsection identifier="/us/tx/pr/t8/c92/scF/s92.2611/a">
<num value="a">(a)</num>
<content>A tenant is liable according to this subchapter if the tenant removes a battery from a smoke alarm without immediately replacing it with a working battery or knowingly disconnects or intentionally damages a smoke alarm, causing it to malfunction.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scF/s92.2611/b">
<num value="b">(b)</num>
<content>Except as provided in Subsection (c), a landlord of a tenant who is liable under Subsection (a) may obtain a judgment against the tenant for damages suffered by the landlord because the tenant removed a battery from a smoke alarm without immediately replacing it with a working battery or knowingly disconnected or intentionally damaged the smoke alarm, causing it to malfunction.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scF/s92.2611/c">
<num value="c">(c)</num>
<content>A tenant is not liable for damages suffered by the landlord if the damage is caused by the landlord's failure to repair the smoke alarm within a reasonable time after the tenant requests it to be repaired, considering the availability of material, labor, and utilities.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scF/s92.2611/d">
<num value="d">(d)</num>
<chapeau>A landlord of a tenant who is liable under Subsection (a) may obtain or exercise one or more of the remedies in Subsection (e) if:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.2611/1">
<num value="1">(1)</num>
<content>a lease between the landlord and tenant contains a notice, in underlined or boldfaced print, which states in substance that the tenant must not disconnect or intentionally damage a smoke alarm or remove the battery without immediately replacing it with a working battery and that the tenant may be subject to damages, civil penalties, and attorney's fees under Section 92.2611 of the Property Code for not complying with the notice; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.2611/2">
<num value="2">(2)</num>
<content>the landlord has given notice to the tenant that the landlord intends to exercise the landlord's remedies under this subchapter if the tenant does not reconnect, repair, or replace the smoke alarm or replace the removed battery within seven days after being notified by the landlord to do so.</content>
<continuation>(d-1) The notice in Subsection (d)(2) must be in a separate document furnished to the tenant after the landlord has discovered that the tenant has disconnected or damaged the smoke alarm or removed a battery from it.</continuation>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scF/s92.2611/e">
<num value="e">(e)</num>
<chapeau>If a tenant is liable under Subsection (a) and the tenant does not comply with the landlord's notice under Subsection (d), the landlord shall have the following remedies against the tenant:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.2611/1">
<num value="1">(1)</num>
<content>a court order directing the tenant to comply with the landlord's notice;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.2611/2">
<num value="2">(2)</num>
<content>a judgment against the tenant for a civil penalty of one month's rent plus $100;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.2611/3">
<num value="3">(3)</num>
<content>a judgment against the tenant for court costs; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.2611/4">
<num value="4">(4)</num>
<content>a judgment against the tenant for reasonable attorney's fees.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scF/s92.2611/f">
<num value="f">(f)</num>
<content>A tenant's guest or invitee who suffers damage because of a landlord's failure to install, inspect, or repair a smoke alarm as required by this subchapter may recover a judgment against the landlord for the damage. A tenant's guest or invitee who suffers damage because the tenant removed a battery without immediately replacing it with a working battery or because the tenant knowingly disconnected or intentionally damaged the smoke alarm, causing it to malfunction, may recover a judgment against the tenant for the damage.</content>
</subsection>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 869, Sec. 10, eff. Sept. 1, 1995; Acts 1995, 74th Leg., ch. 918, Sec. 4, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 165, Sec. 28.01, eff. Sept. 1, 1997.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 257 (H.B. 1168), Sec. 4, eff. September 1, 2011.
Acts 2011, 82nd Leg., R.S., Ch. 257 (H.B. 1168), Sec. 5, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scF/s92.262">
<num value="92.262">Sec. 92.262.</num>
<heading>AGENTS FOR DELIVERY OF NOTICE</heading>
<content>A managing or leasing agent, whether residing or maintaining an office on-site or off-site, is the agent of the landlord for purposes of notice and other communications required or permitted by this subchapter.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3653, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scF/s92.263">
<num value="92.263">Sec. 92.263.</num>
<heading>INSPECTION OF RESIDENTIAL FIRE EXTINGUISHER</heading>
<subsection identifier="/us/tx/pr/t8/c92/scF/s92.263/a">
<num value="a">(a)</num>
<chapeau>If a landlord has installed a 1A10BC residential fire extinguisher as defined by the National Fire Protection Association or other non-rechargeable fire extinguisher in accordance with a local ordinance or other law, the landlord or the landlord's agent shall inspect the fire extinguisher:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.263/1">
<num value="1">(1)</num>
<content>at the beginning of a tenant's possession; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.263/2">
<num value="2">(2)</num>
<content>within a reasonable time after receiving a written request by a tenant.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scF/s92.263/b">
<num value="b">(b)</num>
<chapeau>At a minimum, an inspection under this section must include:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.263/1">
<num value="1">(1)</num>
<content>checking to ensure the fire extinguisher is present; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.263/2">
<num value="2">(2)</num>
<content>checking to ensure the fire extinguisher gauge or pressure indicator indicates the correct pressure as recommended by the manufacturer of the fire extinguisher.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scF/s92.263/c">
<num value="c">(c)</num>
<content>A fire extinguisher that satisfies the inspection requirements of Subsection (b) at the beginning of a tenant's possession is presumed to be in good working order until the tenant requests an inspection in writing.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 257 (H.B. 1168), Sec. 6, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scF/s92.264">
<num value="92.264">Sec. 92.264.</num>
<heading>DUTY TO REPAIR OR REPLACE</heading>
<subsection identifier="/us/tx/pr/t8/c92/scF/s92.264/a">
<num value="a">(a)</num>
<chapeau>The landlord shall repair or replace a fire extinguisher at the landlord's expense if:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.264/1">
<num value="1">(1)</num>
<chapeau>on inspection, the fire extinguisher is found:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c92/scF/s92.264/A">
<num value="A">(A)</num>
<content>not to be functioning; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scF/s92.264/B">
<num value="B">(B)</num>
<content>not to have the correct pressure indicated on the gauge or pressure indicator as recommended by the manufacturer of the fire extinguisher; or</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.264/2">
<num value="2">(2)</num>
<content>a tenant has notified the landlord that the tenant has used the fire extinguisher for a legitimate purpose.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scF/s92.264/b">
<num value="b">(b)</num>
<chapeau>If the tenant or the tenant's invited guest removes, misuses, damages, or otherwise disables a fire extinguisher:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.264/1">
<num value="1">(1)</num>
<content>the landlord is not required to repair or replace the fire extinguisher at the landlord's expense; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scF/s92.264/2">
<num value="2">(2)</num>
<content>the landlord is required to repair or replace the fire extinguisher within a reasonable time if the tenant pays in advance the reasonable repair or replacement cost, including labor, materials, taxes, and overhead.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 257 (H.B. 1168), Sec. 6, eff. September 1, 2011.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t8/c92/scG">
<num value="G">SUBCHAPTER G.</num>
<heading>UTILITY CUTOFF</heading>
<section identifier="/us/tx/pr/t8/c92/scG/s92.301">
<num value="92.301">Sec. 92.301.</num>
<heading>LANDLORD LIABILITY TO TENANT FOR UTILITY CUTOFF</heading>
<subsection identifier="/us/tx/pr/t8/c92/scG/s92.301/a">
<num value="a">(a)</num>
<content>A landlord who has expressly or impliedly agreed in the lease to furnish and pay for water, gas, or electric service to the tenant's dwelling is liable to the tenant if the utility company has cut off utility service to the tenant's dwelling or has given written notice to the tenant that such utility service is about to be cut off because of the landlord's nonpayment of the utility bill.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scG/s92.301/b">
<num value="b">(b)</num>
<chapeau>If a landlord is liable to the tenant under Subsection (a) of this section, the tenant may:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scG/s92.301/1">
<num value="1">(1)</num>
<content>pay the utility company money to reconnect or avert the cutoff of utilities according to this section;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scG/s92.301/2">
<num value="2">(2)</num>
<content>terminate the lease if the termination notice is in writing and move-out is to be within 30 days from the date the tenant has notice from the utility company of a future cutoff or notice of an actual cutoff, whichever is sooner;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scG/s92.301/3">
<num value="3">(3)</num>
<content>deduct from the tenant's rent, without necessity of judicial action, the amounts paid to the utility company to reconnect or avert a cutoff;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scG/s92.301/4">
<num value="4">(4)</num>
<content>if the lease is terminated by the tenant, deduct the tenant's security deposit from the tenant's rent without necessity of lawsuit or obtain a refund of the tenant's security deposit pursuant to law;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scG/s92.301/5">
<num value="5">(5)</num>
<content>if the lease is terminated by the tenant, recover a pro rata refund of any advance rentals paid from the date of termination or the date the tenant moves out, whichever is later;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scG/s92.301/6">
<num value="6">(6)</num>
<content>recover actual damages, including but not limited to moving costs, utility connection fees, storage fees, and lost wages from work; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scG/s92.301/7">
<num value="7">(7)</num>
<content>recover court costs and attorney's fees, excluding any attorney's fees for a cause of action for damages relating to a personal injury.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scG/s92.301/c">
<num value="c">(c)</num>
<content>When deducting for the tenant's payment of the landlord's utility bill under this section, the tenant shall submit to the landlord a copy of a receipt from the utility company which evidences the amount of payment made by the tenant to reconnect or avert cutoff of utilities.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scG/s92.301/d">
<num value="d">(d)</num>
<chapeau>The tenant remedies under this section are effective on the date the tenant has notice from the utility company of a future cutoff or notice of an actual cutoff, whichever is sooner. However, the tenant's remedies under this section shall cease if:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scG/s92.301/1">
<num value="1">(1)</num>
<content>the landlord provides the tenant with written evidence from the utility that all delinquent sums due the utility have been paid in full; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scG/s92.301/2">
<num value="2">(2)</num>
<content>at the time the tenant receives such evidence, the tenant has not yet terminated the lease or filed suit under this section.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 650, Sec. 12, eff. Aug. 28, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scG/s92.302">
<num value="92.302">Sec. 92.302.</num>
<heading>NOTICE OF UTILITY DISCONNECTION OF NONSUBMETERED MASTER METERED MULTIFAMILY PROPERTY TO MUNICIPALITIES, OWNERS, AND TENANTS</heading>
<subsection identifier="/us/tx/pr/t8/c92/scG/s92.302/a">
<num value="a">(a)</num>
<chapeau>In this section:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scG/s92.302/1">
<num value="1">(1)</num>
<content>"Customer" means a person who is responsible for bills received for electric utility service or gas utility service provided to nonsubmetered master metered multifamily property.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scG/s92.302/2">
<num value="2">(2)</num>
<content>"Nonsubmetered master metered multifamily property" means an apartment, a leased or owner-occupied condominium, or one or more buildings containing at least 10 dwellings that receive electric utility service or gas utility service that is master metered but not submetered.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scG/s92.302/b">
<num value="b">(b)</num>
<content>A customer shall provide written notice of a service disconnection to each tenant or owner at a nonsubmetered master metered multifamily property not later than the fifth day after the date the customer receives a notice of service disconnection from an electric service provider or a gas utility. The customer must provide the notice by mail to the tenant's or owner's preferred mailing address or hand deliver the notice to the tenant or owner. The written notice must include the customer's contact information and the tenant's remedies under Section 92.301. The notice must include the following text in both English and Spanish:</content>
<continuation>"Notice to residents of (name and address of nonsubmetered master metered multifamily property): Electric (or gas) service to this property is scheduled for disconnection on (date) because (reason for disconnection)."</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scG/s92.302/c">
<num value="c">(c)</num>
<content>If the property is located in a municipality, the customer shall provide the same notice described by Subsection (b) to the governing body of that municipality by certified mail. The governing body of the municipality may provide additional notice to the property's tenants and owners after receipt of the service disconnection notice under this subsection.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scG/s92.302/d">
<num value="d">(d)</num>
<content>A customer is not required to provide the notices described by this section if the customer avoids the disconnection by paying the bill.</content>
</subsection>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 322 (H.B. 1772), Sec. 1, eff. January 1, 2014.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t8/c92/scH">
<num value="H">SUBCHAPTER H.</num>
<heading>RETALIATION</heading>
<section identifier="/us/tx/pr/t8/c92/scH/s92.331">
<num value="92.331">Sec. 92.331.</num>
<heading>RETALIATION BY LANDLORD</heading>
<subsection identifier="/us/tx/pr/t8/c92/scH/s92.331/a">
<num value="a">(a)</num>
<chapeau>A landlord may not retaliate against a tenant by taking an action described by Subsection (b) because the tenant:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scH/s92.331/1">
<num value="1">(1)</num>
<content>in good faith exercises or attempts to exercise against a landlord a right or remedy granted to the tenant by lease, municipal ordinance, or federal or state statute;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scH/s92.331/2">
<num value="2">(2)</num>
<content>gives a landlord a notice to repair or exercise a remedy under this chapter;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scH/s92.331/3">
<num value="3">(3)</num>
<chapeau>complains to a governmental entity responsible for enforcing building or housing codes, a public utility, or a civic or nonprofit agency, and the tenant:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c92/scH/s92.331/A">
<num value="A">(A)</num>
<content>claims a building or housing code violation or utility problem; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scH/s92.331/B">
<num value="B">(B)</num>
<content>believes in good faith that the complaint is valid and that the violation or problem occurred; or</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scH/s92.331/4">
<num value="4">(4)</num>
<content>establishes, attempts to establish, or participates in a tenant organization.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scH/s92.331/b">
<num value="b">(b)</num>
<chapeau>A landlord may not, within six months after the date of the tenant's action under Subsection (a), retaliate against the tenant by:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scH/s92.331/1">
<num value="1">(1)</num>
<content>filing an eviction proceeding, except for the grounds stated by Section 92.332;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scH/s92.331/2">
<num value="2">(2)</num>
<content>depriving the tenant of the use of the premises, except for reasons authorized by law;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scH/s92.331/3">
<num value="3">(3)</num>
<content>decreasing services to the tenant;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scH/s92.331/4">
<num value="4">(4)</num>
<content>increasing the tenant's rent or terminating the tenant's lease; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scH/s92.331/5">
<num value="5">(5)</num>
<content>engaging, in bad faith, in a course of conduct that materially interferes with the tenant's rights under the tenant's lease.</content>
</paragraph>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3637, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 650, Sec. 9, eff. Aug. 28, 1989; Acts 1993, 73rd Leg., ch. 48, Sec. 16, eff. Sept. 1, 1993. Redesignated from Property Code Sec. 92.057(a) and amended by Acts 1995, 74th Leg., ch. 869, Sec. 5, eff. Jan. 1, 1996.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 588 (S.B. 630), Sec. 2, eff. January 1, 2014.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scH/s92.332">
<num value="92.332">Sec. 92.332.</num>
<heading>NONRETALIATION</heading>
<subsection identifier="/us/tx/pr/t8/c92/scH/s92.332/a">
<num value="a">(a)</num>
<chapeau>The landlord is not liable for retaliation under this subchapter if the landlord proves that the action was not made for purposes of retaliation, nor is the landlord liable, unless the action violates a prior court order under Section 92.0563, for:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scH/s92.332/1">
<num value="1">(1)</num>
<content>increasing rent under an escalation clause in a written lease for utilities, taxes, or insurance; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scH/s92.332/2">
<num value="2">(2)</num>
<content>increasing rent or reducing services as part of a pattern of rent increases or service reductions for an entire multidwelling project.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scH/s92.332/b">
<num value="b">(b)</num>
<chapeau>An eviction or lease termination based on the following circumstances, which are valid grounds for eviction or lease termination in any event, does not constitute retaliation:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scH/s92.332/1">
<num value="1">(1)</num>
<content>the tenant is delinquent in rent when the landlord gives notice to vacate or files an eviction action;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scH/s92.332/2">
<num value="2">(2)</num>
<content>the tenant, a member of the tenant's family, or a guest or invitee of the tenant intentionally damages property on the premises or by word or conduct threatens the personal safety of the landlord, the landlord's employees, or another tenant;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scH/s92.332/3">
<num value="3">(3)</num>
<content>the tenant has materially breached the lease, other than by holding over, by an action such as violating written lease provisions prohibiting serious misconduct or criminal acts, except as provided by this section;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scH/s92.332/4">
<num value="4">(4)</num>
<content>the tenant holds over after giving notice of termination or intent to vacate;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scH/s92.332/5">
<num value="5">(5)</num>
<content>the tenant holds over after the landlord gives notice of termination at the end of the rental term and the tenant does not take action under Section 92.331 until after the landlord gives notice of termination; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scH/s92.332/6">
<num value="6">(6)</num>
<chapeau>the tenant holds over and the landlord's notice of termination is motivated by a good faith belief that the tenant, a member of the tenant's family, or a guest or invitee of the tenant might:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c92/scH/s92.332/A">
<num value="A">(A)</num>
<content>adversely affect the quiet enjoyment by other tenants or neighbors;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scH/s92.332/B">
<num value="B">(B)</num>
<content>materially affect the health or safety of the landlord, other tenants, or neighbors; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c92/scH/s92.332/C">
<num value="C">(C)</num>
<content>damage the property of the landlord, other tenants, or neighbors.</content>
</subparagraph>
</paragraph>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3637, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 650, Sec. 9, eff. Aug. 28, 1989; Acts 1993, 73rd Leg., ch. 48, Sec. 16, eff. Sept. 1, 1993. Redesignated from Property Code Sec. 92.057(b), (c) and amended by Acts 1995, 74th Leg., ch. 869, Sec. 5, eff. Jan. 1, 1996.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scH/s92.333">
<num value="92.333">Sec. 92.333.</num>
<heading>TENANT REMEDIES</heading>
<content>In addition to other remedies provided by law, if a landlord retaliates against a tenant under this subchapter, the tenant may recover from the landlord a civil penalty of one month's rent plus $500, actual damages, court costs, and reasonable attorney's fees in an action for recovery of property damages, moving costs, actual expenses, civil penalties, or declaratory or injunctive relief, less any delinquent rents or other sums for which the tenant is liable to the landlord. If the tenant's rent payment to the landlord is subsidized in whole or in part by a governmental entity, the civil penalty granted under this section shall reflect the fair market rent of the dwelling plus $500.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3637, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 650, Sec. 9, eff. Aug. 28, 1989; Acts 1993, 73rd Leg., ch. 48, Sec. 16, eff. Sept. 1, 1993. Redesignated from Property Code Sec. 92.057(d) and amended by Acts 1995, 74th Leg., ch. 869, Sec. 5, eff. Jan. 1, 1996.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scH/s92.334">
<num value="92.334">Sec. 92.334.</num>
<heading>INVALID COMPLAINTS</heading>
<subsection identifier="/us/tx/pr/t8/c92/scH/s92.334/a">
<num value="a">(a)</num>
<content>If a tenant files or prosecutes a suit for retaliatory action based on a complaint asserted under Section 92.331(a)(3), and the government building or housing inspector or utility company representative visits the premises and determines in writing that a violation of a building or housing code does not exist or that a utility problem does not exist, there is a rebuttable presumption that the tenant acted in bad faith.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scH/s92.334/b">
<num value="b">(b)</num>
<content>If a tenant files or prosecutes a suit under this subchapter in bad faith, the landlord may recover possession of the dwelling unit and may recover from the tenant a civil penalty of one month's rent plus $500, court costs, and reasonable attorney's fees. If the tenant's rent payment to the landlord is subsidized in whole or in part by a governmental entity, the civil penalty granted under this section shall reflect the fair market rent of the dwelling plus $500.</content>
</subsection>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 869, Sec. 5, eff. Jan. 1, 1996.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scH/s92.335">
<num value="92.335">Sec. 92.335.</num>
<heading>EVICTION SUITS</heading>
<content>In an eviction suit, retaliation by the landlord under Section 92.331 is a defense and a rent deduction lawfully made by the tenant under this chapter is a defense for nonpayment of the rent to the extent allowed by this chapter. Other judicial actions under this chapter may not be joined with an eviction suit or asserted as a defense or crossclaim in an eviction suit.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3638, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1989, 71st Leg., ch. 650, Sec. 11, eff. Aug. 28, 1989. Renumbered from Property Code Sec. 92.059 and amended by Acts 1995, 74th Leg., ch. 869, Sec. 5, eff. Jan. 1, 1996.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t8/c92/scI">
<num value="I">SUBCHAPTER I.</num>
<heading>RENTAL APPLICATION</heading>
<section identifier="/us/tx/pr/t8/c92/scI/s92.351">
<num value="92.351">Sec. 92.351.</num>
<heading>DEFINITIONS</heading>
<chapeau>For purposes of this subchapter:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scI/s92.351/1">
<num value="1">(1)</num>
<content>"Application deposit" means a sum of money that is given to the landlord in connection with a rental application and that is refundable to the applicant if the applicant is rejected as a tenant.</content>
<continuation>(1-a) "Application fee" means a nonrefundable sum of money that is given to the landlord to offset the costs of screening an applicant for acceptance as a tenant.</continuation>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scI/s92.351/2">
<num value="2">(2)</num>
<content>"Applicant" or "rental applicant" means a person who makes an application to a landlord for rental of a dwelling.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scI/s92.351/3">
<num value="3">(3)</num>
<content>"Co-applicant" means a person who makes an application for rental of a dwelling with other applicants and who plans to live in the dwelling with other applicants.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scI/s92.351/4">
<num value="4">(4)</num>
<content>"Deposited" means deposited in an account of the landlord or the landlord's agent in a bank or other financial institution.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scI/s92.351/5">
<num value="5">(5)</num>
<content>"Landlord" means a prospective landlord to whom a person makes application for rental of a dwelling.</content>
<continuation>(5-a) "Rental application" means a written request made by an applicant to a landlord to lease premises from the landlord.</continuation>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scI/s92.351/6">
<num value="6">(6)</num>
<content>"Required date" means the required date for any acceptance of the applicant under Section 92.352.</content>
</paragraph>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 744, Sec. 5, eff. Jan. 1, 1996. Renumbered from Property Code Sec. 92.331 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(71), eff. Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 917 (H.B. 3101), Sec. 7, eff. January 1, 2008.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scI/s92.3515">
<num value="92.3515">Sec. 92.3515.</num>
<heading>NOTICE OF ELIGIBILITY REQUIREMENTS</heading>
<subsection identifier="/us/tx/pr/t8/c92/scI/s92.3515/a">
<num value="a">(a)</num>
<chapeau>At the time an applicant is provided with a rental application, the landlord shall make available to the applicant printed notice of the landlord's tenant selection criteria and the grounds for which the rental application may be denied, including the applicant's:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scI/s92.3515/1">
<num value="1">(1)</num>
<content>criminal history;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scI/s92.3515/2">
<num value="2">(2)</num>
<content>previous rental history;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scI/s92.3515/3">
<num value="3">(3)</num>
<content>current income;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scI/s92.3515/4">
<num value="4">(4)</num>
<content>credit history; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scI/s92.3515/5">
<num value="5">(5)</num>
<content>failure to provide accurate or complete information on the application form.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scI/s92.3515/b">
<num value="b">(b)</num>
<content>If the landlord makes the notice available under Subsection (a), the applicant shall sign an acknowledgment indicating the notice was made available. If the acknowledgment is not signed, there is a rebuttable presumption that the notice was not made available to the applicant.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scI/s92.3515/c">
<num value="c">(c)</num>
<content>The acknowledgment required by Subsection (b) must include a statement substantively equivalent to the following: "Signing this acknowledgment indicates that you have had the opportunity to review the landlord's tenant selection criteria. The tenant selection criteria may include factors such as criminal history, credit history, current income, and rental history. If you do not meet the selection criteria, or if you provide inaccurate or incomplete information, your application may be rejected and your application fee will not be refunded."</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scI/s92.3515/d">
<num value="d">(d)</num>
<content>The acknowledgment may be part of the rental application if the notice is underlined or in bold print.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scI/s92.3515/e">
<num value="e">(e)</num>
<content>If the landlord rejects an applicant and the landlord has not made the notice required by Subsection (a) available, the landlord shall return the application fee and any application deposit.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scI/s92.3515/f">
<num value="f">(f)</num>
<content>If an applicant requests a landlord to mail a refund of the applicant's application fee to the applicant, the landlord shall mail the refund check to the applicant at the address furnished by the applicant.</content>
</subsection>
<sourceCredit>Added by Acts 2007, 80th Leg., R.S., Ch. 917 (H.B. 3101), Sec. 8, eff. January 1, 2008.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scI/s92.352">
<num value="92.352">Sec. 92.352.</num>
<heading>REJECTION OF APPLICANT</heading>
<subsection identifier="/us/tx/pr/t8/c92/scI/s92.352/a">
<num value="a">(a)</num>
<chapeau>The applicant is deemed rejected by the landlord if the landlord does not give notice of acceptance of the applicant on or before the seventh day after the:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scI/s92.352/1">
<num value="1">(1)</num>
<content>date the applicant submits a completed rental application to the landlord on an application form furnished by the landlord; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scI/s92.352/2">
<num value="2">(2)</num>
<content>date the landlord accepts an application deposit if the landlord does not furnish the applicant an application form.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scI/s92.352/b">
<num value="b">(b)</num>
<content>A landlord's rejection of one co-applicant shall be deemed as a rejection of all co-applicants.</content>
</subsection>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 744, Sec. 5, eff. Jan. 1, 1996. Renumbered from Property Code Sec. 92.332 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(71), eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scI/s92.353">
<num value="92.353">Sec. 92.353.</num>
<heading>PROCEDURES FOR NOTICE OR REFUND</heading>
<subsection identifier="/us/tx/pr/t8/c92/scI/s92.353/a">
<num value="a">(a)</num>
<chapeau>Except as provided in Subsection (b), a landlord is presumed to have given notice of an applicant's acceptance or rejection if the notice is by:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c92/scI/s92.353/1">
<num value="1">(1)</num>
<content>telephone to the applicant, co-applicant, or a person living with the applicant or co-applicant on or before the required date; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c92/scI/s92.353/2">
<num value="2">(2)</num>
<content>United States mail, addressed to the applicant and postmarked on or before the required date.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scI/s92.353/b">
<num value="b">(b)</num>
<content>If a rental applicant requests that any acceptance of the applicant or any refund of the applicant's application deposit be mailed to the applicant, the landlord must mail the refund check to the applicant at the address furnished by the applicant.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c92/scI/s92.353/c">
<num value="c">(c)</num>
<content>If the date of required notice of acceptance or required refund of an application deposit is a Saturday, Sunday, or state or federal holiday, the required date shall be extended to the end of the next day following the Saturday, Sunday, or holiday.</content>
</subsection>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 744, Sec. 5, eff. Jan. 1, 1996. Renumbered from Property Code Sec. 92.333 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(71), eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scI/s92.354">
<num value="92.354">Sec. 92.354.</num>
<heading>LIABILITY OF LANDLORD</heading>
<content>A landlord who in bad faith fails to refund an application fee or deposit in violation of this subchapter is liable for an amount equal to the sum of $100, three times the amount wrongfully retained, and the applicant's reasonable attorney's fees.</content>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 744, Sec. 5, eff. Jan. 1, 1996. Renumbered from Property Code Sec. 92.334 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(71), eff. Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 917 (H.B. 3101), Sec. 9, eff. January 1, 2008.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c92/scI/s92.355">
<num value="92.355">Sec. 92.355.</num>
<heading>WAIVER</heading>
<content>A provision of a rental application that purports to waive a right or exempt a party from a liability or duty under this subchapter is void.</content>
<sourceCredit>Added by Acts 2007, 80th Leg., R.S., Ch. 917 (H.B. 3101), Sec. 10, eff. January 1, 2008.</sourceCredit>
</section>
</subchapter>
</chapter>
<chapter identifier="/us/tx/pr/t8/c93">
<num value="93">CHAPTER 93.</num>
<heading>COMMERCIAL TENANCIES</heading>
<section identifier="/us/tx/pr/t8/c93/s93.001">
<num value="93.001">Sec. 93.001.</num>
<heading>APPLICABILITY OF CHAPTER</heading>
<subsection identifier="/us/tx/pr/t8/c93/s93.001/a">
<num value="a">(a)</num>
<content>This chapter applies only to the relationship between landlords and tenants of commercial rental property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.001/b">
<num value="b">(b)</num>
<content>For purposes of this chapter, "commercial rental property" means rental property that is not covered by Chapter 92.</content>
</subsection>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 687, Sec. 2, eff. Sept. 1, 1989; Acts 1989, 71st Leg., ch. 689, Sec. 2, eff. Sept. 1, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c93/s93.002">
<num value="93.002">Sec. 93.002.</num>
<heading>INTERRUPTION OF UTILITIES, REMOVAL OF PROPERTY, AND EXCLUSION OF COMMERCIAL TENANT</heading>
<subsection identifier="/us/tx/pr/t8/c93/s93.002/a">
<num value="a">(a)</num>
<content>A landlord or a landlord's agent may not interrupt or cause the interruption of utility service paid for directly to the utility company by a tenant unless the interruption results from bona fide repairs, construction, or an emergency.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.002/b">
<num value="b">(b)</num>
<content>A landlord may not remove a door, window, or attic hatchway cover or a lock, latch, hinge, hinge pin, doorknob, or other mechanism connected to a door, window, or attic hatchway cover from premises leased to a tenant or remove furniture, fixtures, or appliances furnished by the landlord from premises leased to a tenant unless the landlord removes the item for a bona fide repair or replacement. If a landlord removes any of the items listed in this subsection for a bona fide repair or replacement, the repair or replacement must be promptly performed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.002/c">
<num value="c">(c)</num>
<chapeau>A landlord may not intentionally prevent a tenant from entering the leased premises except by judicial process unless the exclusion results from:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c93/s93.002/1">
<num value="1">(1)</num>
<content>bona fide repairs, construction, or an emergency;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c93/s93.002/2">
<num value="2">(2)</num>
<content>removing the contents of premises abandoned by a tenant; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c93/s93.002/3">
<num value="3">(3)</num>
<content>changing the door locks of a tenant who is delinquent in paying at least part of the rent.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.002/d">
<num value="d">(d)</num>
<content>A tenant is presumed to have abandoned the premises if goods, equipment, or other property, in an amount substantial enough to indicate a probable intent to abandon the premises, is being or has been removed from the premises and the removal is not within the normal course of the tenant's business.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.002/e">
<num value="e">(e)</num>
<content>A landlord may remove and store any property of a tenant that remains on premises that are abandoned. In addition to the landlord's other rights, the landlord may dispose of the stored property if the tenant does not claim the property within 60 days after the date the property is stored. The landlord shall deliver by certified mail to the tenant at the tenant's last known address a notice stating that the landlord may dispose of the tenant's property if the tenant does not claim the property within 60 days after the date the property is stored.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.002/f">
<num value="f">(f)</num>
<content>If a landlord or a landlord's agent changes the door lock of a tenant who is delinquent in paying rent, the landlord or agent must place a written notice on the tenant's front door stating the name and the address or telephone number of the individual or company from which the new key may be obtained. The new key is required to be provided only during the tenant's regular business hours and only if the tenant pays the delinquent rent.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.002/g">
<num value="g">(g)</num>
<chapeau>If a landlord or a landlord's agent violates this section, the tenant may:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c93/s93.002/1">
<num value="1">(1)</num>
<content>either recover possession of the premises or terminate the lease; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c93/s93.002/2">
<num value="2">(2)</num>
<content>recover from the landlord an amount equal to the sum of the tenant's actual damages, one month's rent or $500, whichever is greater, reasonable attorney's fees, and court costs, less any delinquent rents or other sums for which the tenant is liable to the landlord.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.002/h">
<num value="h">(h)</num>
<content>A lease supersedes this section to the extent of any conflict.</content>
</subsection>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 689, Sec. 2, eff. Sept. 1, 1989. Amended by Acts 1993, 73rd Leg., ch. 44, Sec. 1, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c93/s93.003">
<num value="93.003">Sec. 93.003.</num>
<heading>COMMERCIAL TENANT'S RIGHT OF REENTRY AFTER UNLAWFUL LOCKOUT</heading>
<subsection identifier="/us/tx/pr/t8/c93/s93.003/a">
<num value="a">(a)</num>
<content>If a landlord has locked a tenant out of leased premises in violation of Section 93.002, the tenant may recover possession of the premises as provided by this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.003/b">
<num value="b">(b)</num>
<content>The tenant must file with the justice court in the precinct in which the rental premises are located a sworn complaint for reentry, specifying the facts of the alleged unlawful lockout by the landlord or the landlord's agent. The tenant must also state orally under oath to the justice the facts of the alleged unlawful lockout.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.003/c">
<num value="c">(c)</num>
<content>If the tenant has complied with Subsection (b) and if the justice reasonably believes an unlawful lockout has likely occurred, the justice may issue, ex parte, a writ of reentry that entitles the tenant to immediate and temporary possession of the premises, pending a final hearing on the tenant's sworn complaint for reentry.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.003/d">
<num value="d">(d)</num>
<content>The writ of reentry must be served on either the landlord or the landlord's management company, on-premises manager, or rent collector in the same manner as a writ of possession in a forcible detainer action. A sheriff or constable may use reasonable force in executing a writ of reentry under this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.003/e">
<num value="e">(e)</num>
<content>The landlord is entitled to a hearing on the tenant's sworn complaint for reentry. The writ of reentry must notify the landlord of the right to a hearing. The hearing shall be held not earlier than the first day and not later than the seventh day after the date the landlord requests a hearing.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.003/f">
<num value="f">(f)</num>
<content>If the landlord fails to request a hearing on the tenant's sworn complaint for reentry before the eighth day after the date of service of the writ of reentry on the landlord under Subsection (d), a judgment for court costs may be rendered against the landlord.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.003/g">
<num value="g">(g)</num>
<content>A party may appeal from the court's judgment at the hearing on the sworn complaint for reentry in the same manner as a party may appeal a judgment in a forcible detainer suit.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.003/h">
<num value="h">(h)</num>
<content>If a writ of possession is issued, it supersedes a writ of reentry.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.003/i">
<num value="i">(i)</num>
<content>If the landlord or the person on whom a writ of reentry is served fails to immediately comply with the writ or later disobeys the writ, the failure is grounds for contempt of court against the landlord or the person on whom the writ was served, under Section 21.002, Government Code. If the writ is disobeyed, the tenant or the tenant's attorney may file in the court in which the reentry action is pending an affidavit stating the name of the person who has disobeyed the writ and describing the acts or omissions constituting the disobedience. On receipt of an affidavit, the justice shall issue a show cause order, directing the person to appear on a designated date and show cause why he should not be adjudged in contempt of court. If the justice finds, after considering the evidence at the hearing, that the person has directly or indirectly disobeyed the writ, the justice may commit the person to jail without bail until the person purges himself of the contempt in a manner and form as the justice may direct. If the person disobeyed the writ before receiving the show cause order but has complied with the writ after receiving the order, the justice may find the person in contempt and assess punishment under Section 21.002(c), Government Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.003/j">
<num value="j">(j)</num>
<content>This section does not affect a tenant's right to pursue a separate cause of action under Section 93.002.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.003/k">
<num value="k">(k)</num>
<content>If a tenant in bad faith files a sworn complaint for reentry resulting in a writ of reentry being served on the landlord or landlord's agent, the landlord may in a separate cause of action recover from the tenant an amount equal to actual damages, one month's rent or $500, whichever is greater, reasonable attorney's fees, and costs of court, less any sums for which the landlord is liable to the tenant.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.003/l">
<num value="l">(l)</num>
<content>The fee for filing a sworn complaint for reentry is the same as that for filing a civil action in justice court. The fee for service of a writ of reentry is the same as that for service of a writ of possession. The fee for service of a show cause order is the same as that for service of a civil citation. The justice may defer payment of the tenant's filing fees and service costs for the sworn complaint for reentry and writ of reentry. Court costs may be waived only if the tenant executes a pauper's affidavit.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.003/m">
<num value="m">(m)</num>
<content>This section does not affect the rights of a landlord or tenant in a forcible detainer or forcible entry and detainer action.</content>
</subsection>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 687, Sec. 2, eff. Sept. 1, 1989. Amended by Acts 2001, 77th Leg., ch. 595, Sec. 1, eff. June 11, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c93/s93.004">
<num value="93.004">Sec. 93.004.</num>
<heading>SECURITY DEPOSIT</heading>
<content>A security deposit is any advance of money, other than a rental application deposit or an advance payment of rent, that is intended primarily to secure performance under a lease of commercial rental property.</content>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 1460, Sec. 1, eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c93/s93.005">
<num value="93.005">Sec. 93.005.</num>
<heading>OBLIGATION TO REFUND SECURITY DEPOSIT</heading>
<subsection identifier="/us/tx/pr/t8/c93/s93.005/a">
<num value="a">(a)</num>
<content>The landlord shall refund the security deposit to the tenant not later than the 60th day after the date the tenant surrenders the premises and provides notice to the landlord or the landlord's agent of the tenant's forwarding address under Section 93.009.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.005/b">
<num value="b">(b)</num>
<content>The tenant's claim to the security deposit takes priority over the claim of any creditor of the landlord, including a trustee in bankruptcy.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 1460, Sec. 1, eff. Sept. 1, 2001. Amended by Acts 2003, 78th Leg., ch. 1143, Sec. 1, eff. Sept. 1, 2003.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c93/s93.006">
<num value="93.006">Sec. 93.006.</num>
<heading>RETENTION OF SECURITY DEPOSIT; ACCOUNTING</heading>
<subsection identifier="/us/tx/pr/t8/c93/s93.006/a">
<num value="a">(a)</num>
<content>Before returning a security deposit, the landlord may deduct from the deposit damages and charges for which the tenant is legally liable under the lease or damages and charges that result from a breach of the lease.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.006/b">
<num value="b">(b)</num>
<content>The landlord may not retain any portion of a security deposit to cover normal wear and tear. In this subsection, "normal wear and tear" means deterioration that results from the intended use of the commercial premises, including breakage or malfunction due to age or deteriorated condition, but the term does not include deterioration that results from negligence, carelessness, accident, or abuse of the premises, equipment, or chattels by the tenant or by a guest or invitee of the tenant.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.006/c">
<num value="c">(c)</num>
<chapeau>If the landlord retains all or part of a security deposit under this section, the landlord shall give to the tenant the balance of the security deposit, if any, together with a written description and itemized list of all deductions. The landlord is not required to give the tenant a description and itemized list of deductions if:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c93/s93.006/1">
<num value="1">(1)</num>
<content>the tenant owes rent when the tenant surrenders possession of the premises; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c93/s93.006/2">
<num value="2">(2)</num>
<content>no controversy exists concerning the amount of rent owed.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 1460, Sec. 1, eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c93/s93.007">
<num value="93.007">Sec. 93.007.</num>
<heading>CESSATION OF OWNER'S INTEREST</heading>
<subsection identifier="/us/tx/pr/t8/c93/s93.007/a">
<num value="a">(a)</num>
<content>If the owner's interest in the premises is terminated by sale, assignment, death, appointment of a receiver, bankruptcy, or otherwise, the new owner is liable for the return of the security deposit according to this chapter from the date title to the premises is acquired, regardless of whether an acknowledgement is given to the tenant under Subsection (b).</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.007/b">
<num value="b">(b)</num>
<chapeau>The person who no longer owns an interest in the rental premises remains liable for a security deposit received while the person was the owner until the new owner delivers to the tenant a signed statement acknowledging that the new owner has received and is responsible for the tenant's security deposit and specifying the exact dollar amount of the deposit. The amount of the security deposit is the greater of:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c93/s93.007/1">
<num value="1">(1)</num>
<content>the amount provided in the tenant's lease; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c93/s93.007/2">
<num value="2">(2)</num>
<content>the amount provided in an estoppel certificate prepared by the owner at the time the lease was executed or prepared by the new owner at the time the commercial property is transferred.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.007/c">
<num value="c">(c)</num>
<content>Subsection (a) does not apply to a real estate mortgage lienholder who acquires title by foreclosure.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 1460, Sec. 1, eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c93/s93.008">
<num value="93.008">Sec. 93.008.</num>
<heading>RECORDS</heading>
<content>The landlord shall keep accurate records of all security deposits.</content>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 1460, Sec. 1, eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c93/s93.009">
<num value="93.009">Sec. 93.009.</num>
<heading>TENANT'S FORWARDING ADDRESS</heading>
<subsection identifier="/us/tx/pr/t8/c93/s93.009/a">
<num value="a">(a)</num>
<content>The landlord is not obligated to return a tenant's security deposit or give the tenant a written description of damages and charges until the tenant gives the landlord a written statement of the tenant's forwarding address for the purpose of refunding the security deposit.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.009/b">
<num value="b">(b)</num>
<content>The tenant does not forfeit the right to a refund of the security deposit or the right to receive a description of damages and charges for failing to give a forwarding address to the landlord.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 1460, Sec. 1, eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c93/s93.010">
<num value="93.010">Sec. 93.010.</num>
<heading>LIABILITY FOR WITHHOLDING LAST MONTH'S RENT</heading>
<subsection identifier="/us/tx/pr/t8/c93/s93.010/a">
<num value="a">(a)</num>
<content>The tenant may not withhold payment of any portion of the last month's rent on grounds that the security deposit is security for unpaid rent.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.010/b">
<num value="b">(b)</num>
<content>A tenant who violates this section is presumed to have acted in bad faith. A tenant who in bad faith violates this section is liable to the landlord for an amount equal to three times the rent wrongfully withheld and the landlord's reasonable attorney's fees in a suit to recover the rent.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 1460, Sec. 1, eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c93/s93.011">
<num value="93.011">Sec. 93.011.</num>
<heading>LIABILITY OF LANDLORD</heading>
<subsection identifier="/us/tx/pr/t8/c93/s93.011/a">
<num value="a">(a)</num>
<content>A landlord who in bad faith retains a security deposit in violation of this chapter is liable for an amount equal to the sum of $100, three times the portion of the deposit wrongfully withheld, and the tenant's reasonable attorney's fees incurred in a suit to recover the deposit after the period prescribed for returning the deposit expires.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.011/b">
<num value="b">(b)</num>
<chapeau>A landlord who in bad faith does not provide a written description and itemized list of damages and charges in violation of this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c93/s93.011/1">
<num value="1">(1)</num>
<content>forfeits the right to withhold any portion of the security deposit or to bring suit against the tenant for damages to the premises; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c93/s93.011/2">
<num value="2">(2)</num>
<content>is liable for the tenant's reasonable attorney's fees in a suit to recover the deposit.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.011/c">
<num value="c">(c)</num>
<content>In a suit brought by a tenant under this chapter, the landlord has the burden of proving that the retention of any portion of the security deposit was reasonable.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.011/d">
<num value="d">(d)</num>
<content>A landlord who fails to return a security deposit or to provide a written description and itemized list of deductions on or before the 60th day after the date the tenant surrenders possession is presumed to have acted in bad faith.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 1460, Sec. 1, eff. Sept. 1, 2001. Amended by Acts 2003, 78th Leg., ch. 1143, Sec. 2, eff. Sept. 1, 2003.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c93/s93.012">
<num value="93.012">Sec. 93.012.</num>
<heading>ASSESSMENT OF CHARGES</heading>
<subsection identifier="/us/tx/pr/t8/c93/s93.012/a">
<num value="a">(a)</num>
<content>A landlord may not assess a charge, excluding a charge for rent or physical damage to the leased premises, to a tenant unless the amount of the charge or the method by which the charge is to be computed is stated in the lease, an exhibit or attachment that is part of the lease, or an amendment to the lease.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.012/b">
<num value="b">(b)</num>
<content>This section does not affect a landlord's right to assess a charge or obtain a remedy allowed under a statute or common law.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.012/c">
<num value="c">(c)</num>
<content>This section does not affect the contractual right of a landlord that is a governmental entity created under Subchapter D, Chapter 22, Transportation Code, whose constituent municipalities are populous home-rule municipalities to assess charges under a lease to fully compensate the governmental entity for the governmental entity's operating costs.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 1397, Sec. 1, eff. Sept. 1, 2001. Renumbered from Property Code Sec. 93.004 by Acts 2003, 78th Leg., ch. 1275, Sec. 2(119), eff. Sept. 1, 2003.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 71 (H.B. 1382), Sec. 1, eff. May 20, 2009.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c93/s93.013">
<num value="93.013">Sec. 93.013.</num>
<heading>CERTAIN UNLAWFUL USES OF PREMISES; TERMINATION OF TENANT'S RIGHT OF POSSESSION</heading>
<subsection identifier="/us/tx/pr/t8/c93/s93.013/a">
<num value="a">(a)</num>
<chapeau>Notwithstanding a provision in a lease to the contrary, a tenant's right of possession terminates and the landlord has a right to recover possession of the leased premises if the tenant is using the premises or allowing the premises to be used for the purposes of:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c93/s93.013/1">
<num value="1">(1)</num>
<content>prostitution as described by Section 43.02, Penal Code, solicitation of prostitution as described by Section 43.021, Penal Code, promotion of prostitution as described by Section 43.03, Penal Code, aggravated promotion of prostitution as described by Section 43.04, Penal Code, or compelling prostitution as described by Section 43.05, Penal Code;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c93/s93.013/2">
<num value="2">(2)</num>
<content>trafficking of persons as described by Section 20A.02, Penal Code; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c93/s93.013/3">
<num value="3">(3)</num>
<chapeau>operating, maintaining, or advertising a massage establishment, as defined by Section 455.001, Occupations Code, that:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c93/s93.013/A">
<num value="A">(A)</num>
<content>is not exempt from licensing requirements under state or federal law and:</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.013/i">
<num value="i">(i)</num>
<chapeau>has never been issued a license by the Texas Department of Licensing and Regulation; or</chapeau>
<clause identifier="/us/tx/pr/t8/c93/s93.013/ii">
<num value="ii">(ii)</num>
<content>the license for which was suspended, revoked, or refused renewal by the Texas Department of Licensing and Regulation after the establishment obtained a right of possession in the leased premises; or</content>
</clause>
<subparagraph identifier="/us/tx/pr/t8/c93/s93.013/B">
<num value="B">(B)</num>
<content>was issued a citation, administrative penalty, civil penalty, or other civil or criminal sanction for:</content>
</subparagraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.013/i">
<num value="i">(i)</num>
<chapeau>violating a local ordinance that relates to an offense listed in Subdivision (1) or (2) of this subsection;</chapeau>
<clause identifier="/us/tx/pr/t8/c93/s93.013/ii">
<num value="ii">(ii)</num>
<content>operating a sexually oriented business; or</content>
</clause>
<clause identifier="/us/tx/pr/t8/c93/s93.013/iii">
<num value="iii">(iii)</num>
<content>violating Section 455.202, Occupations Code.</content>
</clause>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.013/b">
<num value="b">(b)</num>
<content>A landlord who reasonably believes a tenant is using the leased premises or allowing the leased premises to be used for a purpose described by Subsection (a) may file a forcible detainer suit under Chapter 24 seeking possession of the premises and unpaid rent, including rent for any period of occupancy after the tenant's right of possession terminates.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.013/c">
<num value="c">(c)</num>
<chapeau>Notwithstanding Section 24.005 or 91.001 or any other law or a provision in the lease to the contrary, the landlord is not required for purposes of a forcible detainer suit authorized by this section:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c93/s93.013/1">
<num value="1">(1)</num>
<content>to give a notice of proposed eviction or a notice of termination before giving notice to vacate; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c93/s93.013/2">
<num value="2">(2)</num>
<content>to give the tenant more than three days' notice to vacate before filing the suit.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.013/d">
<num value="d">(d)</num>
<content>A pending suit brought by the attorney general or a district, county, or city attorney under Chapter 125, Civil Practice and Remedies Code, alleging that a common nuisance is being maintained on the leased premises with respect to an activity described by Subsection (a) is prima facie evidence that the tenant's right of possession has terminated and the landlord has a right to recover possession of the premises under Subsection (a).</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c93/s93.013/e">
<num value="e">(e)</num>
<content>A final, nonappealable determination by a court under Chapter 125, Civil Practice and Remedies Code, that a common nuisance is being maintained on the leased premises with respect to an activity described by Subsection (a) creates an irrebuttable presumption that the tenant's right of possession has terminated and the landlord has a right to recover possession of the premises under Subsection (a).</content>
</subsection>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 858 (H.B. 2552), Sec. 19, eff. September 1, 2017.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 807 (H.B. 1540), Sec. 57, eff. September 1, 2021.
Acts 2023, 88th Leg., R.S., Ch. 606 (H.B. 3536), Sec. 1, eff. September 1, 2023.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t8/c94">
<num value="94">CHAPTER 94.</num>
<heading>MANUFACTURED HOME TENANCIES</heading>
<subchapter identifier="/us/tx/pr/t8/c94/scA">
<num value="A">SUBCHAPTER A.</num>
<heading>GENERAL PROVISIONS</heading>
<section identifier="/us/tx/pr/t8/c94/scA/s94.001">
<num value="94.001">Sec. 94.001.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scA/s94.001/1">
<num value="1">(1)</num>
<content>"Landlord" means the owner or manager of a manufactured home community and includes an employee or agent of the landlord.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scA/s94.001/2">
<num value="2">(2)</num>
<content>"Lease agreement" means a written agreement between a landlord and a tenant that establishes the terms, conditions, and other provisions for placing a manufactured home on the premises of a manufactured home community.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scA/s94.001/3">
<num value="3">(3)</num>
<content>"Manufactured home" has the meaning assigned by Section 1201.003, Occupations Code.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scA/s94.001/4">
<num value="4">(4)</num>
<content>"Manufactured home community" means a parcel of land on which four or more lots are offered for lease for installing and occupying manufactured homes.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scA/s94.001/5">
<num value="5">(5)</num>
<content>"Manufactured home community rules" means the rules provided in a written document that establish the policies and regulations of the manufactured home community, including regulations relating to the use, occupancy, and quiet enjoyment of and the health, safety, and welfare of tenants of the manufactured home community.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scA/s94.001/6">
<num value="6">(6)</num>
<content>"Manufactured home lot" means the space allocated in the lease agreement for the placement of the tenant's manufactured home and the area adjacent to that space designated in the lease agreement for the tenant's exclusive use.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scA/s94.001/7">
<num value="7">(7)</num>
<content>"Normal wear and tear" means deterioration that results from intended use of the premises, including breakage or malfunction due to age or deteriorated condition, but the term does not include deterioration that results from negligence, carelessness, accident, or abuse of the premises, equipment, or chattels by the tenant, a member of the tenant's household, or a guest or invitee of the tenant.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scA/s94.001/8">
<num value="8">(8)</num>
<content>Repealed by Acts 2013, 83rd Leg., R.S., Ch. 613, Sec. 8, eff. September 1, 2013.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scA/s94.001/9">
<num value="9">(9)</num>
<content>"Premises" means a tenant's manufactured home lot, any area or facility the lease authorizes the tenant to use, and the appurtenances, grounds, and facilities held out for the use of tenants generally.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scA/s94.001/10">
<num value="10">(10)</num>
<content>Repealed by Acts 2013, 83rd Leg., R.S., Ch. 613, Sec. 8, eff. September 1, 2013.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scA/s94.001/11">
<num value="11">(11)</num>
<chapeau>"Tenant" means a person who is:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c94/scA/s94.001/A">
<num value="A">(A)</num>
<content>authorized by a lease agreement to occupy a lot to the exclusion of others in a manufactured home community; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c94/scA/s94.001/B">
<num value="B">(B)</num>
<content>obligated under the lease agreement to pay rent, fees, and other charges.</content>
</subparagraph>
</paragraph>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002. Amended by Acts 2003, 78th Leg., ch. 75, Sec. 1, eff. May 16, 2003; Acts 2003, 78th Leg., ch. 1276, Sec. 14A.808, eff. Sept. 1, 2003.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 613 (S.B. 1268), Sec. 2, eff. September 1, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 613 (S.B. 1268), Sec. 8, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scA/s94.002">
<num value="94.002">Sec. 94.002.</num>
<heading>APPLICABILITY</heading>
<subsection identifier="/us/tx/pr/t8/c94/scA/s94.002/a">
<num value="a">(a)</num>
<content>This chapter applies only to the relationship between a landlord who leases property in a manufactured home community and a tenant leasing property in the manufactured home community for the purpose of situating a manufactured home on the property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scA/s94.002/b">
<num value="b">(b)</num>
<chapeau>This chapter does not apply to the relationship between:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scA/s94.002/1">
<num value="1">(1)</num>
<content>a landlord who owns a manufactured home and a tenant who leases the manufactured home from the landlord;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scA/s94.002/2">
<num value="2">(2)</num>
<content>a landlord who leases property in a manufactured home community and a tenant leasing property in the manufactured home community for the placement of personal property to be used for human habitation, excluding a manufactured home; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scA/s94.002/3">
<num value="3">(3)</num>
<content>a landlord and an employee or an agent of the landlord.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 613 (S.B. 1268), Sec. 3, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scA/s94.003">
<num value="94.003">Sec. 94.003.</num>
<heading>WAIVER OF RIGHTS AND DUTIES</heading>
<content>A provision in a lease agreement or a manufactured home community rule that purports to waive a right or to exempt a landlord or a tenant from a duty or from liability under this chapter is void.</content>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scA/s94.004">
<num value="94.004">Sec. 94.004.</num>
<heading>LANDLORD'S RIGHT OF ENTRY</heading>
<subsection identifier="/us/tx/pr/t8/c94/scA/s94.004/a">
<num value="a">(a)</num>
<chapeau>Except as provided by this chapter, the landlord may not enter a tenant's manufactured home unless:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scA/s94.004/1">
<num value="1">(1)</num>
<content>the tenant is present and gives consent; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scA/s94.004/2">
<num value="2">(2)</num>
<content>the tenant has previously given written consent.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scA/s94.004/b">
<num value="b">(b)</num>
<content>The written consent under Subsection (a)(2) must specify the date and time entry is permitted and is valid only for the date and time specified. The tenant may revoke the consent without penalty at any time by notifying the landlord in writing that the consent has been revoked.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scA/s94.004/c">
<num value="c">(c)</num>
<chapeau>The landlord may enter the tenant's manufactured home in a reasonable manner and at a reasonable time if:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scA/s94.004/1">
<num value="1">(1)</num>
<content>an emergency exists; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scA/s94.004/2">
<num value="2">(2)</num>
<content>the tenant abandons the manufactured home.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scA/s94.005">
<num value="94.005">Sec. 94.005.</num>
<heading>COMMON AREA FACILITIES</heading>
<content>Each common area facility, if any, must be open or available to tenants. The landlord shall post the hours of operation or availability of the facility in a conspicuous place at the facility.</content>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scA/s94.006">
<num value="94.006">Sec. 94.006.</num>
<heading>TENANT MEETINGS</heading>
<subsection identifier="/us/tx/pr/t8/c94/scA/s94.006/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (b), a landlord may not interfere with meetings by tenants of the manufactured home community related to manufactured home living.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scA/s94.006/b">
<num value="b">(b)</num>
<content>Any limitations on meetings by tenants in the common area facilities must be included in the manufactured home community rules.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scA/s94.007">
<num value="94.007">Sec. 94.007.</num>
<heading>CASH RENTAL PAYMENTS</heading>
<subsection identifier="/us/tx/pr/t8/c94/scA/s94.007/a">
<num value="a">(a)</num>
<content>A landlord shall accept a tenant's cash rental payment unless the lease agreement requires the tenant to make rental payments by check, money order, or other traceable or negotiable instrument.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scA/s94.007/b">
<num value="b">(b)</num>
<chapeau>A landlord who receives a cash rental payment shall:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scA/s94.007/1">
<num value="1">(1)</num>
<content>provide the tenant with a written receipt; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scA/s94.007/2">
<num value="2">(2)</num>
<content>enter the payment date and amount in a record book maintained by the landlord.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scA/s94.007/c">
<num value="c">(c)</num>
<content>A tenant or a governmental entity or civic association acting on the tenant's behalf may file suit against a landlord to enjoin a violation of this section.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scA/s94.008">
<num value="94.008">Sec. 94.008.</num>
<heading>MANUFACTURED HOME COMMUNITY RULES</heading>
<subsection identifier="/us/tx/pr/t8/c94/scA/s94.008/a">
<num value="a">(a)</num>
<content>A landlord may adopt manufactured home community rules that are not arbitrary or capricious.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scA/s94.008/b">
<num value="b">(b)</num>
<content>Manufactured home community rules are considered part of the lease agreement.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scA/s94.008/c">
<num value="c">(c)</num>
<chapeau>The landlord may add to or amend manufactured home community rules. If the landlord adds or amends a rule:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scA/s94.008/1">
<num value="1">(1)</num>
<content>the rule is not effective until the 30th day after the date each tenant is provided with a written copy of the added or amended rule; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scA/s94.008/2">
<num value="2">(2)</num>
<content>if a tenant is required to take any action that requires the expenditure of funds in excess of $25 to comply with the rule, the landlord shall give the tenant at least 90 days after the date each tenant is provided with a written copy of the added or amended rule to comply with the rule.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scA/s94.009">
<num value="94.009">Sec. 94.009.</num>
<heading>NOTICE TO TENANT AT PRIMARY RESIDENCE</heading>
<subsection identifier="/us/tx/pr/t8/c94/scA/s94.009/a">
<num value="a">(a)</num>
<content>If, at the time of signing a lease agreement or lease renewal, a tenant gives written notice to the tenant's landlord that the tenant does not occupy the manufactured home lot as a primary residence and requests in writing that the landlord send notices to the tenant at the tenant's primary residence and provides to the landlord the address of the tenant's primary residence, the landlord shall mail to the tenant's primary residence all notices required by the lease agreement, by this chapter, or by Chapter 24.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scA/s94.009/b">
<num value="b">(b)</num>
<content>The tenant shall notify the landlord in writing of any change in the tenant's primary residence address. Oral notices of change are insufficient.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scA/s94.009/c">
<num value="c">(c)</num>
<content>A notice to a tenant's primary residence under Subsection (a) may be sent by regular United States mail and is considered as having been given on the date of postmark of the notice.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scA/s94.009/d">
<num value="d">(d)</num>
<content>If there is more than one tenant on a lease agreement, the landlord is not required under this section to send notices to the primary residence of more than one tenant.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scA/s94.009/e">
<num value="e">(e)</num>
<content>This section does not apply if notice is actually hand delivered to and received by a person 16 years of age or older occupying the leased premises.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scA/s94.010">
<num value="94.010">Sec. 94.010.</num>
<heading>DISCLOSURE OF OWNERSHIP AND MANAGEMENT</heading>
<subsection identifier="/us/tx/pr/t8/c94/scA/s94.010/a">
<num value="a">(a)</num>
<chapeau>A landlord shall disclose to a tenant, or to any governmental official or employee acting in an official capacity, according to this section:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scA/s94.010/1">
<num value="1">(1)</num>
<content>the name and either a street or post office box address of the holder of record title, according to the deed records in the county clerk's office, of the premises leased by the tenant or inquired about by the governmental official or employee acting in an official capacity; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scA/s94.010/2">
<num value="2">(2)</num>
<content>if an entity located off-site from the manufactured home community is primarily responsible for managing the leased premises, the name and street address of that entity.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scA/s94.010/b">
<num value="b">(b)</num>
<chapeau>Disclosure to a tenant under Subsection (a) must be made by:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scA/s94.010/1">
<num value="1">(1)</num>
<content>giving the information in writing to the tenant on or before the seventh day after the date the landlord receives the tenant's written request for the information;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scA/s94.010/2">
<num value="2">(2)</num>
<content>continuously posting the information in a conspicuous place in the manufactured home community or the office of the on-site manager or on the outside of the entry door to the office of the on-site manager on or before the seventh day after the date the landlord receives the tenant's written request for the information; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scA/s94.010/3">
<num value="3">(3)</num>
<content>including the information in a copy of the tenant's lease or in written manufactured home community rules given to the tenant before the tenant requests the information.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scA/s94.010/c">
<num value="c">(c)</num>
<content>Disclosure of information to a tenant may be made under Subsection (b)(1) or (2) before the tenant requests the information.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scA/s94.010/d">
<num value="d">(d)</num>
<content>Disclosure of information to a governmental official or employee must be made by giving the information in writing to the official or employee on or before the seventh day after the date the landlord receives a written request for the information from the official or employee.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scA/s94.010/e">
<num value="e">(e)</num>
<content>A correction to the information may be made by any of the methods authorized and must be made within the period prescribed by this section for providing the information.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scA/s94.010/f">
<num value="f">(f)</num>
<content>For the purposes of this section, an owner or property manager may disclose either an actual name or an assumed name if an assumed name certificate has been recorded with the county clerk.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scA/s94.010/g">
<num value="g">(g)</num>
<chapeau>A landlord who provides information under this section violates this section if:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scA/s94.010/1">
<num value="1">(1)</num>
<content>the information becomes incorrect because a name or address changes; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scA/s94.010/2">
<num value="2">(2)</num>
<content>the landlord fails to correct the information given to a tenant on or before the 15th day after the date the information becomes incorrect.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scA/s94.011">
<num value="94.011">Sec. 94.011.</num>
<heading>LANDLORD'S AGENT FOR SERVICE OF PROCESS</heading>
<subsection identifier="/us/tx/pr/t8/c94/scA/s94.011/a">
<num value="a">(a)</num>
<content>In a lawsuit by a tenant to enforce a legal obligation of the owner as landlord of the manufactured home community, the owner's agent for service of process is determined according to this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scA/s94.011/b">
<num value="b">(b)</num>
<content>The owner's management company, on-site manager, or rent collector for the manufactured home community is the owner's authorized agent for service of process unless the owner's name and business street address have been furnished in writing to the tenant.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scA/s94.012">
<num value="94.012">Sec. 94.012.</num>
<heading>VENUE</heading>
<content>Venue for an action under this chapter is governed by Section 15.0115, Civil Practice and Remedies Code.</content>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t8/c94/scB">
<num value="B">SUBCHAPTER B.</num>
<heading>LEASE AGREEMENT</heading>
<section identifier="/us/tx/pr/t8/c94/scB/s94.051">
<num value="94.051">Sec. 94.051.</num>
<heading>INFORMATION TO BE PROVIDED TO PROSPECTIVE TENANT</heading>
<chapeau>At the time the landlord receives an application from a prospective tenant, the landlord shall give the tenant a copy of:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scB/s94.051/1">
<num value="1">(1)</num>
<content>the proposed lease agreement for the manufactured home community;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scB/s94.051/2">
<num value="2">(2)</num>
<content>any manufactured home community rules; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scB/s94.051/3">
<num value="3">(3)</num>
<content>a separate disclosure statement with the following prominently printed in at least 10-point type:</content>
<continuation>"You have the legal right to an initial lease term of six months. If you prefer a different lease period, you and your landlord may negotiate a shorter or longer lease period. After the initial lease period expires, you and your landlord may negotiate a new lease term by mutual agreement. Regardless of the term of the lease, the landlord must give you at least 60 days' notice of a nonrenewal of the lease, except that if the manufactured home community's land use will change, the landlord must give you at least 180 days' notice. During the applicable period, you must continue to pay all rent and other amounts due under the lease agreement, including late charges, if any, after receiving notice of the nonrenewal."</continuation>
</paragraph>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002. Amended by Acts 2003, 78th Leg., ch. 75, Sec. 2, eff. May 16, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 863 (H.B. 1460), Sec. 65, eff. January 1, 2008.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scB/s94.052">
<num value="94.052">Sec. 94.052.</num>
<heading>TERM OF LEASE</heading>
<subsection identifier="/us/tx/pr/t8/c94/scB/s94.052/a">
<num value="a">(a)</num>
<content>A landlord shall offer the tenant a lease agreement with an initial lease term of at least six months. If the tenant requests a lease agreement with a different lease period, the landlord and the tenant may mutually agree to a shorter or longer lease period. The landlord and the tenant may mutually agree to subsequent lease periods of any length for each renewal of the lease agreement.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scB/s94.052/b">
<num value="b">(b)</num>
<content>Except as provided by Section 94.204, regardless of the term of the lease, the landlord must provide notice to the tenant not later than the 60th day before the date of the expiration of the lease if the landlord chooses not to renew the lease. During the applicable period, the tenant must pay all rent and other amounts due under the lease agreement, including late charges, if any, after receiving notice of the nonrenewal.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 863 (H.B. 1460), Sec. 66, eff. January 1, 2008.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scB/s94.053">
<num value="94.053">Sec. 94.053.</num>
<heading>LEASE REQUIREMENTS AND DISCLOSURES</heading>
<subsection identifier="/us/tx/pr/t8/c94/scB/s94.053/a">
<num value="a">(a)</num>
<chapeau>A lease agreement must be:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scB/s94.053/1">
<num value="1">(1)</num>
<content>typed or printed in legible handwriting; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scB/s94.053/2">
<num value="2">(2)</num>
<content>signed by the landlord and the tenant.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scB/s94.053/b">
<num value="b">(b)</num>
<content>The landlord shall provide the tenant with a copy of the lease agreement and a current copy of the manufactured home community rules after the lease has been signed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scB/s94.053/c">
<num value="c">(c)</num>
<chapeau>A lease agreement must contain the following information:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scB/s94.053/1">
<num value="1">(1)</num>
<content>the address or number of the manufactured home lot and the number and location of any accompanying parking spaces;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scB/s94.053/2">
<num value="2">(2)</num>
<content>the lease term;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scB/s94.053/3">
<num value="3">(3)</num>
<content>the rental amount;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scB/s94.053/4">
<num value="4">(4)</num>
<content>the interval at which rent must be paid and the date on which periodic rental payments are due;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scB/s94.053/5">
<num value="5">(5)</num>
<content>any late charge or fee or charge for any service or facility;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scB/s94.053/6">
<num value="6">(6)</num>
<content>the amount of any security deposit;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scB/s94.053/7">
<num value="7">(7)</num>
<content>a description of the landlord's maintenance responsibilities;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scB/s94.053/8">
<num value="8">(8)</num>
<content>the telephone number of the person who may be contacted for emergency maintenance;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scB/s94.053/9">
<num value="9">(9)</num>
<content>the name and address of the person designated to accept official notices for the landlord;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scB/s94.053/10">
<num value="10">(10)</num>
<content>the penalty the landlord may impose for the tenant's early termination as provided by Section 94.201;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scB/s94.053/11">
<num value="11">(11)</num>
<content>the grounds for eviction as provided by Subchapter E;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scB/s94.053/12">
<num value="12">(12)</num>
<content>a disclosure of the landlord's right to choose not to renew the lease agreement if there is a change in the land use of the manufactured home community during the lease term as provided by Section 94.204;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scB/s94.053/13">
<num value="13">(13)</num>
<content>a disclosure of any incorporation by reference of an addendum relating to submetering of utility services;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scB/s94.053/14">
<num value="14">(14)</num>
<content>a prominent disclosure informing the tenant that Chapter 94, Property Code, governs certain rights granted to the tenant and obligations imposed on the landlord by law;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scB/s94.053/15">
<num value="15">(15)</num>
<content>if there is a temporary zoning permit for the land use of the manufactured home community, the date the zoning permit expires; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scB/s94.053/16">
<num value="16">(16)</num>
<content>any other terms or conditions of occupancy not expressly included in the manufactured home community rules.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scB/s94.053/d">
<num value="d">(d)</num>
<content>A lease provision requiring an increase in rent or in fees or charges during the lease term must be initialed by the tenant or the provision is void.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scB/s94.053/e">
<num value="e">(e)</num>
<content>Any illegal or unconscionable provision in a lease is void. If a lease provision is determined void, the invalidity of the provision does not affect other provisions of the lease that can be given effect without reference to the invalid provision.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 863 (H.B. 1460), Sec. 67, eff. January 1, 2008.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scB/s94.054">
<num value="94.054">Sec. 94.054.</num>
<heading>DISCLOSURE BY TENANT REQUIRED</heading>
<content>A tenant shall disclose to the landlord before the lease agreement is signed the name and address of any person who holds a lien on the tenant's manufactured home.</content>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scB/s94.055">
<num value="94.055">Sec. 94.055.</num>
<heading>NOTICE OF LEASE RENEWAL</heading>
<subsection identifier="/us/tx/pr/t8/c94/scB/s94.055/a">
<num value="a">(a)</num>
<chapeau>The landlord shall provide a tenant a notice to vacate the leased premises or an offer of lease renewal:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scB/s94.055/1">
<num value="1">(1)</num>
<content>not later than the 60th day before the date the current lease term expires; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scB/s94.055/2">
<num value="2">(2)</num>
<content>if the lease is a month-to-month lease, not later than the 60th day before the date the landlord intends to terminate the current term of the lease.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scB/s94.055/b">
<num value="b">(b)</num>
<content>If the landlord offers to renew the lease, the landlord shall notify the tenant of the proposed rent amount and any change in the lease terms. The notice must also include a statement informing the tenant that the tenant's failure to reject the landlord's offer to renew the lease within the 30-day period prescribed by Subsection (c) will result in the renewal of the lease under the modified terms as provided by Subsection (c).</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scB/s94.055/c">
<num value="c">(c)</num>
<content>If the landlord offers to renew the lease, the tenant must notify the landlord not later than the 30th day before the date the current lease expires whether the tenant rejects the terms of the offer and intends to vacate the leased premises on the date the current lease term expires. If the tenant fails to provide the notice within the period prescribed by this subsection, the lease is renewed under the modified terms beginning on the first day after the date of the expiration of the current lease term.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scB/s94.055/d">
<num value="d">(d)</num>
<content>Notwithstanding Subsection (a), the landlord may request a tenant to vacate the leased premises before the end of the notice period prescribed by Subsection (a) only if the landlord compensates the tenant in advance for relocation expenses, including the cost of moving and installing the manufactured home at a new location.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scB/s94.056">
<num value="94.056">Sec. 94.056.</num>
<heading>PENALTY FOR LATE PAYMENT</heading>
<content>A landlord may assess a penalty for late payment of rent or another fee or charge if the payment is not remitted on or before the date stipulated in the lease agreement.</content>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scB/s94.057">
<num value="94.057">Sec. 94.057.</num>
<heading>ASSIGNMENT OF LEASE AND SUBLEASE</heading>
<subsection identifier="/us/tx/pr/t8/c94/scB/s94.057/a">
<num value="a">(a)</num>
<content>A landlord may prohibit a tenant from assigning a lease agreement or subleasing the leased premises if the prohibition is included in the lease agreement.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scB/s94.057/b">
<num value="b">(b)</num>
<content>If the landlord permits a tenant to assign a lease agreement or sublease the leased premises, the lease agreement must specify the conditions under which the tenant may enter into an assignment or sublease agreement.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t8/c94/scC">
<num value="C">SUBCHAPTER C.</num>
<heading>SECURITY DEPOSIT</heading>
<section identifier="/us/tx/pr/t8/c94/scC/s94.101">
<num value="94.101">Sec. 94.101.</num>
<heading>SECURITY DEPOSIT</heading>
<content>In this chapter, "security deposit" means any advance of money, other than a rental application deposit or an advance payment of rent, that is intended primarily to secure performance under a lease of a lot in a manufactured home community that has been entered into by a landlord and a tenant.</content>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scC/s94.102">
<num value="94.102">Sec. 94.102.</num>
<heading>SECURITY DEPOSIT PERMITTED</heading>
<subsection identifier="/us/tx/pr/t8/c94/scC/s94.102/a">
<num value="a">(a)</num>
<content>At the time the tenant executes the initial lease agreement, the landlord may require a security deposit.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scC/s94.102/b">
<num value="b">(b)</num>
<content>The landlord shall keep accurate records relating to security deposits.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scC/s94.103">
<num value="94.103">Sec. 94.103.</num>
<heading>OBLIGATION TO REFUND</heading>
<subsection identifier="/us/tx/pr/t8/c94/scC/s94.103/a">
<num value="a">(a)</num>
<content>Except as provided by this subchapter, the landlord shall refund the security deposit not later than the 30th day after the date the tenant surrenders the manufactured home lot.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scC/s94.103/b">
<num value="b">(b)</num>
<content>A requirement that a tenant give advance notice of surrender as a condition for refunding the security deposit is effective only if the requirement is underlined or is printed in conspicuous bold print in the lease.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scC/s94.103/c">
<num value="c">(c)</num>
<content>The tenant's claim to the security deposit takes priority over the claim of any creditor of the landlord, including a trustee in bankruptcy.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scC/s94.104">
<num value="94.104">Sec. 94.104.</num>
<heading>CONDITIONS FOR RETENTION OF SECURITY DEPOSIT OR RENT PREPAYMENT</heading>
<subsection identifier="/us/tx/pr/t8/c94/scC/s94.104/a">
<num value="a">(a)</num>
<chapeau>Except as provided by Subsection (b), a landlord who receives a security deposit or rent prepayment for a manufactured home lot from a tenant who fails to occupy the lot according to a lease agreement between the landlord and the tenant may not retain the security deposit or rent prepayment if:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scC/s94.104/1">
<num value="1">(1)</num>
<content>the tenant secures a replacement tenant satisfactory to the landlord and the replacement tenant occupies the lot on or before the commencement date of the lease; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scC/s94.104/2">
<num value="2">(2)</num>
<content>the landlord secures a replacement tenant satisfactory to the landlord and the replacement tenant occupies the lot on or before the commencement date of the lease.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scC/s94.104/b">
<num value="b">(b)</num>
<chapeau>If the landlord secures the replacement tenant, the landlord may retain and deduct from the security deposit or rent prepayment either:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scC/s94.104/1">
<num value="1">(1)</num>
<content>an amount agreed to in the lease agreement as a lease cancellation fee; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scC/s94.104/2">
<num value="2">(2)</num>
<content>actual expenses incurred by the landlord in securing the replacement tenant, including a reasonable amount for the time spent by the landlord in securing the replacement tenant.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scC/s94.105">
<num value="94.105">Sec. 94.105.</num>
<heading>RETENTION OF SECURITY DEPOSIT; ACCOUNTING</heading>
<subsection identifier="/us/tx/pr/t8/c94/scC/s94.105/a">
<num value="a">(a)</num>
<content>Before returning a security deposit, the landlord may deduct from the deposit damages and charges for which the tenant is legally liable under the lease agreement or as a result of breaching the lease.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scC/s94.105/b">
<num value="b">(b)</num>
<content>The landlord may not retain any portion of a security deposit to cover normal wear and tear.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scC/s94.105/c">
<num value="c">(c)</num>
<chapeau>If the landlord retains all or part of a security deposit under this section, the landlord shall give to the tenant the balance of the security deposit, if any, together with a written description and itemized list of all deductions. The landlord is not required to give the tenant a description and itemized list of deductions if:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scC/s94.105/1">
<num value="1">(1)</num>
<content>the tenant owes rent when the tenant surrenders possession of the manufactured home lot; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scC/s94.105/2">
<num value="2">(2)</num>
<content>no controversy exists concerning the amount of rent owed.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scC/s94.106">
<num value="94.106">Sec. 94.106.</num>
<heading>CESSATION OF OWNER'S INTEREST</heading>
<subsection identifier="/us/tx/pr/t8/c94/scC/s94.106/a">
<num value="a">(a)</num>
<content>If the owner's interest in the premises is terminated by sale, assignment, death, appointment of a receiver, bankruptcy, or otherwise, the new owner is liable for the return of security deposits according to this subchapter from the date title to the premises is acquired, regardless of whether notice is given to the tenant under Subsection (b).</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scC/s94.106/b">
<num value="b">(b)</num>
<content>The person who no longer owns an interest in the leased premises remains liable for a security deposit received while the person was the owner until the new owner delivers to the tenant a signed statement acknowledging that the new owner has received and is responsible for the tenant's security deposit and specifying the exact dollar amount of the deposit.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scC/s94.106/c">
<num value="c">(c)</num>
<content>Subsection (a) does not apply to a real estate mortgage lienholder who acquires title by foreclosure.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scC/s94.107">
<num value="94.107">Sec. 94.107.</num>
<heading>TENANT'S FORWARDING ADDRESS</heading>
<subsection identifier="/us/tx/pr/t8/c94/scC/s94.107/a">
<num value="a">(a)</num>
<content>A landlord is not obligated to return a tenant's security deposit or give the tenant a written description of damages and charges until the tenant gives the landlord a written statement of the tenant's forwarding address for the purpose of refunding the security deposit.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scC/s94.107/b">
<num value="b">(b)</num>
<content>The tenant does not forfeit the right to a refund of the security deposit or the right to receive a description of damages and charges merely for failing to give a forwarding address to the landlord.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scC/s94.108">
<num value="94.108">Sec. 94.108.</num>
<heading>LIABILITY FOR WITHHOLDING LAST MONTH'S RENT</heading>
<subsection identifier="/us/tx/pr/t8/c94/scC/s94.108/a">
<num value="a">(a)</num>
<content>A tenant may not withhold payment of any portion of the last month's rent on grounds that the security deposit is security for unpaid rent.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scC/s94.108/b">
<num value="b">(b)</num>
<content>A tenant who violates this section is presumed to have acted in bad faith. A tenant who in bad faith violates this section is liable to the landlord for an amount equal to three times the rent wrongfully withheld and the landlord's reasonable attorney's fees in a suit to recover the rent.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scC/s94.109">
<num value="94.109">Sec. 94.109.</num>
<heading>LIABILITY OF LANDLORD</heading>
<subsection identifier="/us/tx/pr/t8/c94/scC/s94.109/a">
<num value="a">(a)</num>
<content>A landlord who in bad faith retains a security deposit in violation of this subchapter is liable for an amount equal to the sum of $100, three times the portion of the deposit wrongfully withheld, and the tenant's reasonable attorney's fees in a suit to recover the deposit.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scC/s94.109/b">
<num value="b">(b)</num>
<chapeau>A landlord who in bad faith does not provide a written description and itemized list of damages and charges in violation of this subchapter:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scC/s94.109/1">
<num value="1">(1)</num>
<content>forfeits the right to withhold any portion of the security deposit or to bring suit against the tenant for damages to the premises; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scC/s94.109/2">
<num value="2">(2)</num>
<content>is liable for the tenant's reasonable attorney's fees in a suit to recover the deposit.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scC/s94.109/c">
<num value="c">(c)</num>
<content>In an action brought by a tenant under this subchapter, the landlord has the burden of proving that the retention of any portion of the security deposit was reasonable.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scC/s94.109/d">
<num value="d">(d)</num>
<content>A landlord who fails either to return a security deposit or to provide a written description and itemization of deductions on or before the 30th day after the date the tenant surrenders possession is presumed to have acted in bad faith.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scC/s94.110">
<num value="94.110">Sec. 94.110.</num>
<heading>AGENTS FOR DELIVERY OF NOTICE</heading>
<content>A managing agent, leasing agent, or resident manager is the agent of the landlord for purposes of notice and other communications required or permitted by this subchapter.</content>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 732 (H.B. 2037), Sec. 3, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scC/s94.111">
<num value="94.111">Sec. 94.111.</num>
<heading>NOTICE BY E-MAIL</heading>
<subsection identifier="/us/tx/pr/t8/c94/scC/s94.111/a">
<num value="a">(a)</num>
<content>Notice and other communications required or permitted by this subchapter may be sent by e-mail if the tenant and the landlord or landlord's agent have previously communicated by e-mail.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scC/s94.111/b">
<num value="b">(b)</num>
<content>The landlord or landlord's agent may designate a specific e-mail address for a tenant to use for the purpose of Subsection (a).</content>
</subsection>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 732 (H.B. 2037), Sec. 3, eff. September 1, 2025.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t8/c94/scD">
<num value="D">SUBCHAPTER D.</num>
<heading>PREMISES CONDITION, MAINTENANCE, AND REPAIRS</heading>
<section identifier="/us/tx/pr/t8/c94/scD/s94.151">
<num value="94.151">Sec. 94.151.</num>
<heading>WARRANTY OF SUITABILITY</heading>
<content>By executing a lease agreement, the landlord warrants that the manufactured home lot is suitable for the installation of a manufactured home during the term of the lease agreement.</content>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scD/s94.152">
<num value="94.152">Sec. 94.152.</num>
<heading>LANDLORD'S MAINTENANCE OBLIGATIONS</heading>
<chapeau>The landlord shall:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.152/1">
<num value="1">(1)</num>
<content>comply with any code, statute, ordinance, and administrative rule applicable to the manufactured home community;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.152/2">
<num value="2">(2)</num>
<content>maintain all common areas, if any, of the manufactured home community in a clean and useable condition;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.152/3">
<num value="3">(3)</num>
<content>maintain all utility lines installed in the manufactured home community by the landlord unless the utility lines are maintained by a public utility or political subdivision, including a municipality;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.152/4">
<num value="4">(4)</num>
<content>maintain individual mailboxes for the tenants in accordance with United States Postal Service regulations unless mailboxes are permitted to be located on the tenant's manufactured home lot;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.152/5">
<num value="5">(5)</num>
<content>maintain roads in the manufactured home community to the extent necessary to provide access to each tenant's manufactured home lot;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.152/6">
<num value="6">(6)</num>
<content>provide services for the common collection and removal of garbage and solid waste from within the manufactured home community; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.152/7">
<num value="7">(7)</num>
<content>repair or remedy conditions on the premises that materially affect the physical health or safety of an ordinary tenant of the manufactured home community.</content>
</paragraph>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scD/s94.153">
<num value="94.153">Sec. 94.153.</num>
<heading>LANDLORD'S REPAIR OBLIGATIONS</heading>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.153/a">
<num value="a">(a)</num>
<content>This section does not apply to a condition present in or on a tenant's manufactured home.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.153/b">
<num value="b">(b)</num>
<chapeau>A landlord shall make a diligent effort to repair or remedy a condition if:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.153/1">
<num value="1">(1)</num>
<content>the tenant specifies the condition in a notice to the person to whom or to the place at which rent is normally paid;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.153/2">
<num value="2">(2)</num>
<content>the tenant is not delinquent in the payment of rent at the time notice is given; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.153/3">
<num value="3">(3)</num>
<content>the condition materially affects the physical health or safety of an ordinary tenant.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.153/c">
<num value="c">(c)</num>
<chapeau>Unless the condition was caused by normal wear and tear, the landlord does not have a duty during the lease term or a renewal or extension to repair or remedy a condition caused by:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.153/1">
<num value="1">(1)</num>
<content>the tenant;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.153/2">
<num value="2">(2)</num>
<content>a lawful occupant of the tenant's manufactured home lot;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.153/3">
<num value="3">(3)</num>
<content>a member of the tenant's family; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.153/4">
<num value="4">(4)</num>
<content>a guest or invitee of the tenant.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.153/d">
<num value="d">(d)</num>
<chapeau>This subchapter does not require the landlord:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.153/1">
<num value="1">(1)</num>
<content>to furnish utilities from a utility company if as a practical matter the utility lines of the company are not reasonably available; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.153/2">
<num value="2">(2)</num>
<content>to furnish security guards.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scD/s94.154">
<num value="94.154">Sec. 94.154.</num>
<heading>BURDEN OF PROOF</heading>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.154/a">
<num value="a">(a)</num>
<content>Except as provided by this section, the tenant has the burden of proof in a judicial action to enforce a right resulting from the landlord's failure to repair or remedy a condition under Section 94.153.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.154/b">
<num value="b">(b)</num>
<content>If the landlord does not provide a written explanation for delay in performing a duty to repair or remedy on or before the fifth day after receiving from the tenant a written demand for an explanation, the landlord has the burden of proving that the landlord made a diligent effort to repair and that a reasonable time for repair did not elapse.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scD/s94.155">
<num value="94.155">Sec. 94.155.</num>
<heading>CASUALTY LOSS</heading>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.155/a">
<num value="a">(a)</num>
<content>If a condition results from an insured casualty loss, such as fire, smoke, hail, explosion, or a similar cause, the period for repair does not begin until the landlord receives the insurance proceeds.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.155/b">
<num value="b">(b)</num>
<content>If after a casualty loss the leased premises are as a practical matter totally unusable for the purposes for which the premises were leased and if the casualty loss is not caused by the negligence or fault of the tenant, a member of the tenant's family, or a guest or invitee of the tenant, either the landlord or the tenant may terminate the lease by giving written notice to the other any time before repairs are completed. If the lease is terminated, the tenant is entitled only to a pro rata refund of rent from the date the tenant moves out and to a refund of any security deposit otherwise required by law.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.155/c">
<num value="c">(c)</num>
<content>If after a casualty loss the leased premises are partially unusable for the purposes for which the premises were leased and if the casualty loss is not caused by the negligence or fault of the tenant, a member of the tenant's family, or a guest or invitee of the tenant, the tenant is entitled to reduction in the rent in an amount proportionate to the extent the premises are unusable because of the casualty, but only on judgment of a county or district court. A landlord and tenant may agree otherwise in a written lease.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scD/s94.156">
<num value="94.156">Sec. 94.156.</num>
<heading>LANDLORD LIABILITY AND TENANT REMEDIES; NOTICE AND TIME FOR REPAIR</heading>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.156/a">
<num value="a">(a)</num>
<content>A landlord's liability under this section is subject to Section 94.153(c) regarding conditions that are caused by a tenant.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.156/b">
<num value="b">(b)</num>
<chapeau>A landlord is liable to a tenant as provided by this subchapter if:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.156/1">
<num value="1">(1)</num>
<content>the tenant has given the landlord notice to repair or remedy a condition by giving that notice to the person to whom or to the place where the tenant's rent is normally paid;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.156/2">
<num value="2">(2)</num>
<content>the condition materially affects the physical health or safety of an ordinary tenant;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.156/3">
<num value="3">(3)</num>
<content>the tenant has given the landlord a subsequent written notice to repair or remedy the condition after a reasonable time to repair or remedy the condition following the notice given under Subdivision (1) or the tenant has given the notice under Subdivision (1) by sending that notice by certified mail, return receipt requested, or by registered mail;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.156/4">
<num value="4">(4)</num>
<content>the landlord has had a reasonable time to repair or remedy the condition after the landlord received the tenant's notice under Subdivision (1) and, if applicable, the tenant's subsequent notice under Subdivision (3);</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.156/5">
<num value="5">(5)</num>
<content>the landlord has not made a diligent effort to repair or remedy the condition after the landlord received the tenant's notice under Subdivision (1) and, if applicable, the tenant's notice under Subdivision (3); and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.156/6">
<num value="6">(6)</num>
<content>the tenant was not delinquent in the payment of rent at the time any notice required by this subsection was given.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.156/c">
<num value="c">(c)</num>
<content>For purposes of Subsection (b)(4) or (5), a landlord is considered to have received the tenant's notice when the landlord or the landlord's agent or employee has actually received the notice or when the United States Postal Service has attempted to deliver the notice to the landlord.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.156/d">
<num value="d">(d)</num>
<content>For purposes of Subsection (b)(3) or (4), in determining whether a period of time is a reasonable time to repair or remedy a condition, there is a rebuttable presumption that seven days is a reasonable time. To rebut that presumption, the date on which the landlord received the tenant's notice, the severity and nature of the condition, and the reasonable availability of materials and labor and of utilities from a utility company must be considered.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.156/e">
<num value="e">(e)</num>
<chapeau>Except as provided by Subsection (f), a tenant to whom a landlord is liable under Subsection (b) may:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.156/1">
<num value="1">(1)</num>
<content>terminate the lease;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.156/2">
<num value="2">(2)</num>
<content>have the condition repaired or remedied according to Section 94.157;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.156/3">
<num value="3">(3)</num>
<content>deduct from the tenant's rent, without necessity of judicial action, the cost of the repair or remedy according to Section 94.157; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.156/4">
<num value="4">(4)</num>
<content>obtain judicial remedies according to Section 94.159.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.156/f">
<num value="f">(f)</num>
<chapeau>A tenant who elects to terminate the lease under Subsection (e) is:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.156/1">
<num value="1">(1)</num>
<content>entitled to a pro rata refund of rent from the date of termination or the date the tenant moves out, whichever is later;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.156/2">
<num value="2">(2)</num>
<content>entitled to deduct the tenant's security deposit from the tenant's rent without necessity of lawsuit or to obtain a refund of the tenant's security deposit according to law; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.156/3">
<num value="3">(3)</num>
<content>not entitled to the other repair and deduct remedies under Section 94.157 or the judicial remedies under Sections 94.159(a)(1) and (2).</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scD/s94.157">
<num value="94.157">Sec. 94.157.</num>
<heading>TENANT'S REPAIR AND DEDUCT REMEDIES</heading>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.157/a">
<num value="a">(a)</num>
<content>If the landlord is liable to the tenant under Section 94.156(b), the tenant may have the condition repaired or remedied and may deduct the cost from a subsequent rent payment as provided by this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.157/b">
<num value="b">(b)</num>
<content>Except as provided by this subsection, the tenant's deduction for the cost of the repair or remedy may not exceed the amount of one month's rent under the lease agreement or $500, whichever is greater. If the tenant's rent is subsidized in whole or in part by a governmental agency, the deduction limitation of one month's rent means the fair market rent for the manufactured home lot and not the rent that the tenant pays. The governmental agency subsidizing the rent shall determine the fair market rent. If the governmental agency does not make a determination, the fair market rent means a reasonable amount of rent under the circumstances.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.157/c">
<num value="c">(c)</num>
<content>Repairs and deductions under this section may be made as often as necessary provided that the total repairs and deductions in any one month may not exceed one month's rent or $500, whichever is greater.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.157/d">
<num value="d">(d)</num>
<chapeau>Repairs under this section may be made only if all of the following requirements are met:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.157/1">
<num value="1">(1)</num>
<content>the landlord has a duty to repair or remedy the condition under Section 94.153;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.157/2">
<num value="2">(2)</num>
<content>the tenant has given notice to the landlord in the same manner as prescribed by Section 92.056(b)(1) and, if required under Section 92.056(b)(3), a subsequent notice in the same manner as prescribed by that subsection; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.157/3">
<num value="3">(3)</num>
<chapeau>any one of the following events has occurred:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c94/scD/s94.157/A">
<num value="A">(A)</num>
<content>the landlord has failed to remedy the backup or overflow of raw sewage inside the tenant's manufactured home that results from a condition in the utility lines installed in the manufactured home community by the landlord;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c94/scD/s94.157/B">
<num value="B">(B)</num>
<content>the landlord has expressly or impliedly agreed in the lease agreement to furnish potable water to the tenant's manufactured home lot and the water service to the lot has totally ceased; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c94/scD/s94.157/C">
<num value="C">(C)</num>
<content>the landlord has been notified in writing by the appropriate local housing, building, or health official or other official having jurisdiction that a condition existing on the manufactured home lot materially affects the health or safety of an ordinary tenant.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.157/e">
<num value="e">(e)</num>
<content>At least one of the notices given under Subsection (d)(2) must state that the tenant intends to repair or remedy the condition. The notice must also contain a reasonable description of the intended repair or remedy.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.157/f">
<num value="f">(f)</num>
<chapeau>If the requirements prescribed by Subsections (d) and (e) are met, a tenant may:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.157/1">
<num value="1">(1)</num>
<content>have the condition repaired or remedied immediately following the tenant's notice of intent to repair if the condition involves the backup or overflow of sewage;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.157/2">
<num value="2">(2)</num>
<content>have the condition repaired or remedied if the condition involves a cessation of potable water if the landlord has failed to repair or remedy the condition before the fourth day after the date the tenant delivers a notice of intent to repair; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.157/3">
<num value="3">(3)</num>
<content>have the condition repaired or remedied if the condition is not covered by Subsection (d)(3)(A) or (B) and involves a condition affecting the physical health or safety of the ordinary tenant if the landlord has failed to repair or remedy the condition before the eighth day after the date the tenant delivers a notice of intent to repair.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.157/g">
<num value="g">(g)</num>
<content>Repairs made based on a tenant's notice must be made by an independent company, contractor, or repairman. If the rental unit is located in a municipality requiring the company, contractor, or repairman to be licensed, the person or entity performing the repair must be licensed in accordance with the municipality's requirements. Unless the landlord and tenant agree otherwise under Subsection (i), repairs may not be made by the tenant, the tenant's immediate family, the tenant's employer or employees, or a company in which the tenant has an ownership interest. Repairs may not be made to the foundation or load-bearing structural elements of the manufactured home lot.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.157/h">
<num value="h">(h)</num>
<content>Repairs made based on a tenant's notice must comply with applicable building codes, including any required building permit.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.157/i">
<num value="i">(i)</num>
<content>A landlord and a tenant may mutually agree for the tenant to repair or remedy, at the landlord's expense, any condition on the manufactured home lot regardless of whether it materially affects the health or safety of an ordinary tenant.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.157/j">
<num value="j">(j)</num>
<content>The tenant may not contract for labor or materials in excess of the amount the tenant may deduct under this section. The landlord is not liable to repairmen, contractors, or material suppliers who furnish labor or materials to repair or remedy the condition. A repairman or supplier does not have a lien for materials or services arising out of repairs contracted for by the tenant under this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.157/k">
<num value="k">(k)</num>
<content>When deducting the cost of repairs from the rent payment, the tenant shall furnish the landlord, along with payment of the balance of the rent, a copy of the repair bill and the receipt for its payment. A repair bill and receipt may be the same document.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.157/l">
<num value="l">(l)</num>
<content>If the landlord repairs or remedies the condition after the tenant has contacted a repairman but before the repairman commences work, the landlord is liable for the cost incurred by the tenant for the repairman's charge for traveling to the premises, and the tenant may deduct the charge from the tenant's rent as if it were a repair cost.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.
Amended by:
Acts 2025, 89th Leg., R.S., Ch. 732 (H.B. 2037), Sec. 4, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scD/s94.158">
<num value="94.158">Sec. 94.158.</num>
<heading>LANDLORD AFFIDAVIT FOR DELAY</heading>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.158/a">
<num value="a">(a)</num>
<content>The tenant must delay contracting for repairs under Section 94.157 if, before the tenant contracts for the repairs, the landlord delivers to the tenant an affidavit signed and sworn to under oath by the landlord or the landlord's authorized agent and complying with this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.158/b">
<num value="b">(b)</num>
<content>The affidavit must summarize the reasons for the delay and the diligent efforts made by the landlord up to the date of the affidavit to get the repairs done. The affidavit must state facts showing that the landlord has made and is making diligent efforts to repair the condition, and it must contain dates, names, addresses, and telephone numbers of contractors, suppliers, and repairers contacted by the owner.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.158/c">
<num value="c">(c)</num>
<chapeau>Affidavits under this section may delay repair by the tenant for:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.158/1">
<num value="1">(1)</num>
<content>15 days if the landlord's failure to repair is caused by a delay in obtaining necessary parts for which the landlord is not at fault; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.158/2">
<num value="2">(2)</num>
<content>30 days if the landlord's failure to repair is caused by a general shortage of labor or materials for repair following a natural disaster such as a hurricane, tornado, flood, extended freeze, or widespread windstorm.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.158/d">
<num value="d">(d)</num>
<content>Affidavits for delay based on grounds other than those listed in Subsection (c) are unlawful and, if used, are of no effect. The landlord may file subsequent affidavits, provided that the total delay of the repair or remedy extends no longer than six months from the date the landlord delivers the first affidavit to the tenant.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.158/e">
<num value="e">(e)</num>
<chapeau>The affidavit must be delivered to the tenant by any of the following methods:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.158/1">
<num value="1">(1)</num>
<content>personal delivery to the tenant;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.158/2">
<num value="2">(2)</num>
<content>certified mail, return receipt requested, to the tenant; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.158/3">
<num value="3">(3)</num>
<content>leaving the notice securely fixed on the outside of the main entry door of the manufactured home if notice in that manner is authorized in a written lease.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.158/f">
<num value="f">(f)</num>
<content>Affidavits for delay by a landlord under this section must be submitted in good faith. Following delivery of the affidavit, the landlord must continue diligent efforts to repair or remedy the condition. There shall be a rebuttable presumption that the landlord acted in good faith and with continued diligence for the first affidavit for delay the landlord delivers to the tenant. The landlord shall have the burden of pleading and proving good faith and continued diligence for subsequent affidavits for delay. A landlord who violates this section shall be liable to the tenant for all judicial remedies under Section 94.159, except that the civil penalty under Section 94.159(a)(3) shall be one month's rent plus $1,000.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.158/g">
<num value="g">(g)</num>
<chapeau>If the landlord is liable to the tenant under Section 94.156 and if a new landlord, in good faith and without knowledge of the tenant's notice of intent to repair, has acquired title to the tenant's dwelling by foreclosure, deed in lieu of foreclosure, or general warranty deed in a bona fide purchase, then the following shall apply:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.158/1">
<num value="1">(1)</num>
<content>The tenant's right to terminate the lease under this subchapter shall not be affected, and the tenant shall have no duty to give additional notice to the new landlord.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.158/2">
<num value="2">(2)</num>
<content>The tenant's right to repair and deduct for conditions involving sewage backup or overflow or a cutoff of potable water under Section 94.157(f) shall not be affected, and the tenant shall have no duty to give additional notice to the new landlord.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.158/3">
<num value="3">(3)</num>
<content>For conditions other than those specified in Subdivision (2), if the new landlord acquires title as described by this subsection and has notified the tenant of the name and address of the new landlord or the new landlord's authorized agent and if the tenant has not already contracted for the repair or remedy at the time the tenant is so notified, the tenant must deliver to the new landlord a written notice of intent to repair or remedy the condition, and the new landlord shall have a reasonable time to complete the repair before the tenant may repair or remedy the condition. No further notice from the tenant is necessary in order for the tenant to repair or remedy the condition after a reasonable time has elapsed.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.158/4">
<num value="4">(4)</num>
<content>The tenant's judicial remedies under Section 94.159 shall be limited to recovery against the landlord to whom the tenant gave the required notices until the tenant has given the new landlord the notices required by this section and otherwise complied with Section 94.156 as to the new landlord.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.158/5">
<num value="5">(5)</num>
<content>If the new landlord violates this subsection, the new landlord is liable to the tenant for a civil penalty of one month's rent plus $2,000, actual damages, and attorney's fees.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.158/6">
<num value="6">(6)</num>
<content>No provision of this section shall affect any right of a foreclosing superior lienholder to terminate, according to law, any interest in the premises held by the holders of subordinate liens, encumbrances, leases, or other interests and shall not affect any right of the tenant to terminate the lease according to law.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scD/s94.159">
<num value="94.159">Sec. 94.159.</num>
<heading>TENANT'S JUDICIAL REMEDIES</heading>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.159/a">
<num value="a">(a)</num>
<chapeau>A tenant's judicial remedies under Section 94.156 shall include:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.159/1">
<num value="1">(1)</num>
<content>an order directing the landlord to take reasonable action to repair or remedy the condition;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.159/2">
<num value="2">(2)</num>
<content>an order reducing the tenant's rent, from the date of the first repair notice, in proportion to the reduced rental value resulting from the condition until the condition is repaired or remedied;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.159/3">
<num value="3">(3)</num>
<content>a judgment against the landlord for a civil penalty of one month's rent plus $500;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.159/4">
<num value="4">(4)</num>
<content>a judgment against the landlord for the amount of the tenant's actual damages; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scD/s94.159/5">
<num value="5">(5)</num>
<content>court costs and attorney's fees, excluding any attorney's fees for a cause of action for damages relating to a personal injury.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.159/b">
<num value="b">(b)</num>
<content>A landlord who knowingly violates Section 94.003 by contracting with a tenant to waive the landlord's duty to repair under this subchapter shall be liable to the tenant for actual damages, a civil penalty of one month's rent plus $2,000, and reasonable attorney's fees. For purposes of this subsection, there shall be a rebuttable presumption that the landlord acted without knowledge of the violation. The tenant shall have the burden of pleading and proving a knowing violation. If the lease is not in violation of Section 94.003, the tenant's proof of a knowing violation must be clear and convincing. A mutual agreement for tenant repair under Section 94.157(i) is not a violation of Section 94.003.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.159/c">
<num value="c">(c)</num>
<content>The justice, county, and district courts have concurrent jurisdiction of an action under Subsection (a), except that the justice court may not order repairs under Subsection (a)(1).</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scD/s94.160">
<num value="94.160">Sec. 94.160.</num>
<heading>LANDLORD REMEDY FOR TENANT VIOLATION</heading>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.160/a">
<num value="a">(a)</num>
<content>If a tenant withholds rent, causes repairs to be performed, or makes rent deductions for repairs in violation of this subchapter, the landlord may recover actual damages from the tenant. If, after a landlord has notified a tenant in writing of the illegality of the tenant's rent withholding or the tenant's proposed repair and the penalties of this subchapter, the tenant withholds rent, causes repairs to be performed, or makes rent deductions for repairs in bad faith violation of this subchapter, the landlord may recover from the tenant a civil penalty of one month's rent plus $500.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.160/b">
<num value="b">(b)</num>
<content>Notice under this section must be in writing and may be given in person, by mail, or by delivery to the premises.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scD/s94.160/c">
<num value="c">(c)</num>
<content>The landlord has the burden of pleading and proving, by clear and convincing evidence, that the landlord gave the tenant the required notice of the illegality and the penalties and that the tenant's violation was done in bad faith. In any litigation under this subsection, the prevailing party shall recover reasonable attorney's fees from the nonprevailing party.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scD/s94.161">
<num value="94.161">Sec. 94.161.</num>
<heading>AGENTS FOR DELIVERY OF NOTICE</heading>
<content>A managing agent, leasing agent, or resident manager is the agent of the landlord for purposes of notice and other communications required or permitted by this subchapter.</content>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scD/s94.162">
<num value="94.162">Sec. 94.162.</num>
<heading>EFFECT ON OTHER RIGHTS</heading>
<content>The duties of a landlord and the remedies of a tenant under this subchapter are in lieu of existing common law and other statutory law warranties and duties of landlords for maintenance, repair, security, suitability, and nonretaliation, and remedies of tenants for a violation of those warranties and duties. Otherwise, this subchapter does not affect any other right of a landlord or tenant under contract, statutory law, or common law that is consistent with the purposes of this subchapter or any right a landlord or tenant may have to bring an action for personal injury or property damage under the law of this state. This subchapter does not impose obligations on a landlord or tenant other than those expressly stated in this subchapter.</content>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t8/c94/scE">
<num value="E">SUBCHAPTER E.</num>
<heading>TERMINATION, EVICTION, AND FORECLOSURE</heading>
<section identifier="/us/tx/pr/t8/c94/scE/s94.201">
<num value="94.201">Sec. 94.201.</num>
<heading>LANDLORD'S REMEDY FOR EARLY TERMINATION</heading>
<subsection identifier="/us/tx/pr/t8/c94/scE/s94.201/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (b), the maximum amount a landlord may recover as damages for a tenant's early termination of a lease agreement is an amount equal to the amount of rent that remains outstanding for the term of the lease and any other amounts owed for the remainder of the lease under the terms of the lease.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scE/s94.201/b">
<num value="b">(b)</num>
<content>If the tenant's manufactured home lot is reoccupied before the 21st day after the date the tenant surrenders the lot, the maximum amount the landlord may obtain as damages is an amount equal to one month's rent.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scE/s94.202">
<num value="94.202">Sec. 94.202.</num>
<heading>LANDLORD'S DUTY TO MITIGATE DAMAGES</heading>
<subsection identifier="/us/tx/pr/t8/c94/scE/s94.202/a">
<num value="a">(a)</num>
<content>A landlord has a duty to mitigate damages if a tenant vacates the manufactured home lot before the end of the lease term.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scE/s94.202/b">
<num value="b">(b)</num>
<content>A provision of a lease agreement that purports to waive a right or to exempt a landlord from a liability or duty under this section is void.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scE/s94.203">
<num value="94.203">Sec. 94.203.</num>
<heading>EVICTION PROCEDURES GENERALLY</heading>
<subsection identifier="/us/tx/pr/t8/c94/scE/s94.203/a">
<num value="a">(a)</num>
<content>A landlord may prevent a tenant from entering the manufactured home lot, evict a tenant, or require the removal of a manufactured home from the manufactured home lot only after obtaining a writ of possession under Chapter 24.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scE/s94.203/b">
<num value="b">(b)</num>
<content>If the tenant has disclosed the name of a lienholder as provided by Section 94.054, the landlord shall give written notice of eviction proceedings to the lienholder of the manufactured home not later than the third day after the date the landlord files an application or petition for a judgment for possession.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scE/s94.203/c">
<num value="c">(c)</num>
<content>If the court finds that the landlord initiated the eviction proceeding to retaliate against the tenant in violation of Section 94.251, the court may not approve the eviction of the tenant.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scE/s94.203/d">
<num value="d">(d)</num>
<content>Notwithstanding other law, a court may not issue a writ of possession in favor of a landlord before the 30th day after the date the judgment for possession is rendered if the tenant has paid the rent amount due under the lease for that 30-day period.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scE/s94.203/e">
<num value="e">(e)</num>
<content>The court shall notify a tenant in writing of a default judgment for possession by sending a copy of the judgment to the leased premises by first class mail not later than 48 hours after the entry of the judgment. In addition, the court shall send a copy of the judgment to the owner of the manufactured home if the tenant is not the owner and to any person who holds a lien on the manufactured home if the court has been notified in writing of the name and address of the owner and lienholder.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scE/s94.203/f">
<num value="f">(f)</num>
<content>If, after executing a writ of possession for the manufactured home lot, the landlord removes the manufactured home from the lot, the landlord not later than the 10th day after the date the manufactured home is removed shall send a written notice regarding the location of the manufactured home to the tenant at the tenant's most recent mailing address as reflected in the landlord's records and, if different, to the owner if the landlord is given written notice of the owner's name and address.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scE/s94.204">
<num value="94.204">Sec. 94.204.</num>
<heading>NONRENEWAL OF LEASE FOR CHANGE IN LAND USE</heading>
<subsection identifier="/us/tx/pr/t8/c94/scE/s94.204/a">
<num value="a">(a)</num>
<chapeau>A landlord may choose not to renew a lease agreement to change the manufactured home community's land use only if not later than the 180th day before the date the land use will change:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scE/s94.204/1">
<num value="1">(1)</num>
<chapeau>the landlord sends notice to the tenant, to the owner of the manufactured home if the owner is not the tenant, and to the holder of any lien on the manufactured home:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c94/scE/s94.204/A">
<num value="A">(A)</num>
<content>specifying the date that the land use will change; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c94/scE/s94.204/B">
<num value="B">(B)</num>
<content>informing the tenant, owner, and lienholder, if any, that the owner must relocate the manufactured home; and</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scE/s94.204/2">
<num value="2">(2)</num>
<content>the landlord posts in a conspicuous place in the manufactured home community a notice stating that the land use will change and specifying the date that the land use will change.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scE/s94.204/b">
<num value="b">(b)</num>
<content>The landlord is required to give the owner and lienholder, if any, of the manufactured home notice under Subsection (a)(1) only if the landlord is given written notice of the name and address of the owner and lienholder.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 863 (H.B. 1460), Sec. 68, eff. January 1, 2008.
Acts 2007, 80th Leg., R.S., Ch. 863 (H.B. 1460), Sec. 69, eff. January 1, 2008.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scE/s94.205">
<num value="94.205">Sec. 94.205.</num>
<heading>TERMINATION AND EVICTION FOR VIOLATION OF LEASE</heading>
<content>A landlord may terminate the lease agreement and evict a tenant for a violation of a lease provision, including a manufactured home community rule incorporated in the lease.</content>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scE/s94.206">
<num value="94.206">Sec. 94.206.</num>
<heading>TERMINATION AND EVICTION FOR NONPAYMENT OF RENT</heading>
<chapeau>A landlord may terminate the lease agreement and evict a tenant if:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scE/s94.206/1">
<num value="1">(1)</num>
<content>the tenant fails to timely pay rent or other amounts due under the lease that in the aggregate equal the amount of at least one month's rent;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scE/s94.206/2">
<num value="2">(2)</num>
<content>the landlord notifies the tenant in writing that the payment is delinquent; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scE/s94.206/3">
<num value="3">(3)</num>
<content>the tenant has not tendered the delinquent payment in full to the landlord before the 10th day after the date the tenant receives the notice.</content>
</paragraph>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t8/c94/scF">
<num value="F">SUBCHAPTER F.</num>
<heading>PROHIBITED ACTS</heading>
<section identifier="/us/tx/pr/t8/c94/scF/s94.251">
<num value="94.251">Sec. 94.251.</num>
<heading>RETALIATION BY LANDLORD</heading>
<subsection identifier="/us/tx/pr/t8/c94/scF/s94.251/a">
<num value="a">(a)</num>
<chapeau>A landlord may not retaliate against a tenant by taking an action described by Subsection (b) because the tenant:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scF/s94.251/1">
<num value="1">(1)</num>
<content>in good faith exercises or attempts to exercise against a landlord a right or remedy granted to the tenant by the lease agreement, a municipal ordinance, or a federal or state statute;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scF/s94.251/2">
<num value="2">(2)</num>
<content>gives the landlord a notice to repair or exercise a remedy under this chapter; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scF/s94.251/3">
<num value="3">(3)</num>
<chapeau>complains to a governmental entity responsible for enforcing building or housing codes, a public utility, or a civic or nonprofit agency, and the tenant:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c94/scF/s94.251/A">
<num value="A">(A)</num>
<content>claims a building or housing code violation or utility problem; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c94/scF/s94.251/B">
<num value="B">(B)</num>
<content>believes in good faith that the complaint is valid and that the violation or problem occurred.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scF/s94.251/b">
<num value="b">(b)</num>
<chapeau>A landlord may not, within six months after the date of the tenant's action under Subsection (a), retaliate against the tenant by:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scF/s94.251/1">
<num value="1">(1)</num>
<content>filing an eviction proceeding, except for the grounds stated by Subchapter E;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scF/s94.251/2">
<num value="2">(2)</num>
<content>depriving the tenant of the use of the premises, except for reasons authorized by law;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scF/s94.251/3">
<num value="3">(3)</num>
<content>decreasing services to the tenant;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scF/s94.251/4">
<num value="4">(4)</num>
<content>increasing the tenant's rent;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scF/s94.251/5">
<num value="5">(5)</num>
<content>terminating the tenant's lease agreement; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scF/s94.251/6">
<num value="6">(6)</num>
<content>engaging, in bad faith, in a course of conduct that materially interferes with the tenant's rights under the tenant's lease agreement.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scF/s94.252">
<num value="94.252">Sec. 94.252.</num>
<heading>RESTRICTION ON SALE OF MANUFACTURED HOME</heading>
<subsection identifier="/us/tx/pr/t8/c94/scF/s94.252/a">
<num value="a">(a)</num>
<chapeau>The owner of a manufactured home may sell a home located on the leased premises if:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scF/s94.252/1">
<num value="1">(1)</num>
<content>the purchaser is approved in writing by the landlord; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scF/s94.252/2">
<num value="2">(2)</num>
<content>a lease agreement is signed by the purchaser.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scF/s94.252/b">
<num value="b">(b)</num>
<chapeau>Unless the owner of a manufactured home has agreed in writing, the landlord may not:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scF/s94.252/1">
<num value="1">(1)</num>
<content>require the owner to contract with the landlord to act as an agent or broker in selling the home; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scF/s94.252/2">
<num value="2">(2)</num>
<content>require the owner to pay a commission or fee from the sale of the home.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scF/s94.253">
<num value="94.253">Sec. 94.253.</num>
<heading>NONRETALIATION</heading>
<subsection identifier="/us/tx/pr/t8/c94/scF/s94.253/a">
<num value="a">(a)</num>
<chapeau>A landlord is not liable for retaliation under this subchapter if the landlord proves that the action was not made for purposes of retaliation, nor is the landlord liable, unless the action violates a prior court order under Section 94.159, for:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scF/s94.253/1">
<num value="1">(1)</num>
<content>increasing rent under an escalation clause in a written lease for utilities, taxes, or insurance; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scF/s94.253/2">
<num value="2">(2)</num>
<content>increasing rent or reducing services as part of a pattern of rent increases or service reductions for an entire manufactured home community.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scF/s94.253/b">
<num value="b">(b)</num>
<chapeau>An eviction or lease termination based on the following circumstances, which are valid grounds for eviction or lease termination in any event, does not constitute retaliation:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scF/s94.253/1">
<num value="1">(1)</num>
<content>the tenant is delinquent in rent or other amounts due under the lease that in the aggregate equal the amount of at least one month's rent when the landlord gives notice to vacate or files an eviction action;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scF/s94.253/2">
<num value="2">(2)</num>
<content>the tenant, a member of the tenant's family, or a guest or invitee of the tenant intentionally damages property on the premises or by word or conduct threatens the personal safety of the landlord, the landlord's employees, or another tenant;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scF/s94.253/3">
<num value="3">(3)</num>
<content>the tenant has materially breached the lease, other than by holding over, by an action such as violating written lease provisions prohibiting serious misconduct or criminal acts, except as provided by this section;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scF/s94.253/4">
<num value="4">(4)</num>
<content>the tenant holds over after giving notice of termination or intent to vacate;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scF/s94.253/5">
<num value="5">(5)</num>
<content>the tenant holds over after the landlord gives notice of termination at the end of the rental term and the tenant does not take action under Section 94.251 until after the landlord gives notice of termination; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scF/s94.253/6">
<num value="6">(6)</num>
<chapeau>the tenant holds over and the landlord's notice of termination is motivated by a good faith belief that the tenant, a member of the tenant's family, or a guest or invitee of the tenant might:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c94/scF/s94.253/A">
<num value="A">(A)</num>
<content>adversely affect the quiet enjoyment by other tenants or neighbors;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c94/scF/s94.253/B">
<num value="B">(B)</num>
<content>materially affect the health or safety of the landlord, other tenants, or neighbors; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c94/scF/s94.253/C">
<num value="C">(C)</num>
<content>damage the property of the landlord, other tenants, or neighbors.</content>
</subparagraph>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scF/s94.254">
<num value="94.254">Sec. 94.254.</num>
<heading>TENANT REMEDIES</heading>
<content>In addition to other remedies provided by law, if a landlord retaliates against a tenant under this subchapter, the tenant may recover from the landlord a civil penalty of one month's rent plus $500, actual damages, court costs, and reasonable attorney's fees in an action for recovery of property damages, moving costs, actual expenses, civil penalties, or declaratory or injunctive relief, less any delinquent rents or other sums for which the tenant is liable to the landlord. If the tenant's rent payment to the landlord is subsidized in whole or in part by a governmental entity, the civil penalty granted under this section shall reflect the fair market rent of the leased premises plus $500.</content>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scF/s94.255">
<num value="94.255">Sec. 94.255.</num>
<heading>INVALID COMPLAINTS</heading>
<subsection identifier="/us/tx/pr/t8/c94/scF/s94.255/a">
<num value="a">(a)</num>
<content>If a tenant files or prosecutes a suit for retaliatory action based on a complaint asserted under Section 94.251(a)(3), and a government building or housing inspector or utility company representative visits the manufactured home community and determines in writing that a violation of a building or housing code does not exist or that a utility problem does not exist, there is a rebuttable presumption that the tenant acted in bad faith.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scF/s94.255/b">
<num value="b">(b)</num>
<content>If a tenant files or prosecutes a suit under this subchapter in bad faith, the landlord may recover possession of the leased premises and may recover from the tenant a civil penalty of one month's rent plus $500, court costs, and reasonable attorney's fees. If the tenant's rent payment to the landlord is subsidized in whole or in part by a governmental entity, the civil penalty granted under this subsection shall reflect the fair market rent of the leased premises plus $500.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scF/s94.256">
<num value="94.256">Sec. 94.256.</num>
<heading>EVICTION SUITS</heading>
<content>In an eviction suit, retaliation by the landlord under Section 94.251 is a defense and a rent deduction lawfully made by the tenant under this chapter is a defense for nonpayment of the rent to the extent allowed by this chapter. Other judicial actions under this chapter, excluding an action that would be permitted under Chapter 24, may not be joined with an eviction suit or asserted as a defense or cross-claim in an eviction suit.</content>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scF/s94.257">
<num value="94.257">Sec. 94.257.</num>
<heading>POSSESSION OF FIREARM OR FIREARM AMMUNITION ON LEASED PREMISES</heading>
<chapeau>Unless possession of a firearm or firearm ammunition on a landlord's property is prohibited by state or federal law, a landlord may not prohibit a tenant or a tenant's guest from lawfully possessing, carrying, transporting, or storing a firearm, any part of a firearm, or firearm ammunition:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scF/s94.257/1">
<num value="1">(1)</num>
<content>in the tenant's manufactured home;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scF/s94.257/2">
<num value="2">(2)</num>
<content>in a vehicle located in a parking area provided for tenants or tenants' guests by the landlord of the leased premises; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scF/s94.257/3">
<num value="3">(3)</num>
<chapeau>in other locations controlled by the landlord as necessary to:</chapeau>
<subparagraph identifier="/us/tx/pr/t8/c94/scF/s94.257/A">
<num value="A">(A)</num>
<content>enter or exit the tenant's manufactured home;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c94/scF/s94.257/B">
<num value="B">(B)</num>
<content>enter or exit the leased premises; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t8/c94/scF/s94.257/C">
<num value="C">(C)</num>
<content>enter or exit a vehicle on the leased premises or located in a parking area provided by the landlord for tenants or tenants' guests.</content>
</subparagraph>
</paragraph>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 39 (H.B. 302), Sec. 7, eff. September 1, 2019.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t8/c94/scG">
<num value="G">SUBCHAPTER G.</num>
<heading>REMEDIES</heading>
<section identifier="/us/tx/pr/t8/c94/scG/s94.301">
<num value="94.301">Sec. 94.301.</num>
<heading>TENANT'S REMEDIES</heading>
<chapeau>A person may recover from a landlord who violates this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scG/s94.301/1">
<num value="1">(1)</num>
<content>actual damages;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scG/s94.301/2">
<num value="2">(2)</num>
<content>a civil penalty in an amount equal to two months' rent and $500; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scG/s94.301/3">
<num value="3">(3)</num>
<content>reasonable attorney's fees and costs.</content>
</paragraph>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scG/s94.302">
<num value="94.302">Sec. 94.302.</num>
<heading>LANDLORD'S REMEDIES</heading>
<chapeau>If the court finds that a tenant filed or prosecuted a suit under this chapter in bad faith or for purposes of harassment, the court shall award the landlord:</chapeau>
<paragraph identifier="/us/tx/pr/t8/c94/scG/s94.302/1">
<num value="1">(1)</num>
<content>an amount equal to two months' rent and $500; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t8/c94/scG/s94.302/2">
<num value="2">(2)</num>
<content>reasonable attorney's fees and costs.</content>
</paragraph>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t8/c94/scG/s94.303">
<num value="94.303">Sec. 94.303.</num>
<heading>CUMULATIVE REMEDIES</heading>
<subsection identifier="/us/tx/pr/t8/c94/scG/s94.303/a">
<num value="a">(a)</num>
<content>The provisions of this chapter are not exclusive and are in addition to any other remedy provided by other law.</content>
</subsection>
<subsection identifier="/us/tx/pr/t8/c94/scG/s94.303/b">
<num value="b">(b)</num>
<content>A specific remedy provided by this chapter supersedes the general remedy provided by this subchapter and is in addition to any other remedy provided by other law.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 801, Sec. 1, eff. April 1, 2002.</sourceCredit>
</section>
</subchapter>
</chapter>
<num value="9">TITLE 9.</num>
<heading>TRUSTS</heading>
<chapter identifier="/us/tx/pr/t9/c101">
<num value="101">CHAPTER 101.</num>
<heading>PROVISIONS GENERALLY APPLICABLE TO TRUSTS</heading>
<section identifier="/us/tx/pr/t9/c101/s101.001">
<num value="101.001">Sec. 101.001.</num>
<heading>CONVEYANCE BY PERSON DESIGNATED AS TRUSTEE</heading>
<content>If property is conveyed or transferred to a person designated as a trustee but the conveyance or transfer does not identify a trust or disclose the name of any beneficiary, the person designated as trustee may convey, transfer, or encumber the title of the property without subsequent question by a person who claims to be a beneficiary under a trust or who claims by, through, or under any undisclosed beneficiary or by, through, or under the person designated as trustee in that person's individual capacity.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3654, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1987, 70th Leg., ch. 683, Sec. 3, eff. Aug. 31, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c101/s101.002">
<num value="101.002">Sec. 101.002.</num>
<heading>LIABILITY OF TRUST PROPERTY</heading>
<content>Although trust property is held by the trustee without identifying the trust or its beneficiaries, the trust property is not liable to satisfy the personal obligations of the trustee.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3654, ch. 576, Sec. 1, eff. Jan. 1, 1984. Renumbered from Sec. 101.001(b) by Acts 1987, 70th Leg., ch. 683, Sec. 3, eff. Aug. 31, 1987.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t9/c111">
<num value="111">CHAPTER 111.</num>
<heading>GENERAL PROVISIONS</heading>
<section identifier="/us/tx/pr/t9/c111/s111.001">
<num value="111.001">Sec. 111.001.</num>
<heading>SHORT TITLE</heading>
<content>This subtitle may be cited as the Texas Trust Code.</content>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c111/s111.002">
<num value="111.002">Sec. 111.002.</num>
<heading>CONSTRUCTION OF SUBTITLE</heading>
<content>This subtitle and the Texas Trust Act, as amended (Articles 7425b-1 through 7425b-48, Vernon's Texas Civil Statutes), shall be considered one continuous statute, and for the purposes of any statute or of any instrument creating a trust that refers to the Texas Trust Act, this subtitle shall be considered an amendment to the Texas Trust Act.</content>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
Amended by:
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 1, eff. January 1, 2006.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c111/s111.003">
<num value="111.003">Sec. 111.003.</num>
<heading>TRUSTS SUBJECT TO THIS SUBTITLE</heading>
<chapeau>For the purposes of this subtitle, a "trust" is an express trust only and does not include:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c111/s111.003/1">
<num value="1">(1)</num>
<content>a resulting trust;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c111/s111.003/2">
<num value="2">(2)</num>
<content>a constructive trust;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c111/s111.003/3">
<num value="3">(3)</num>
<content>a business trust; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c111/s111.003/4">
<num value="4">(4)</num>
<content>a security instrument such as a deed of trust, mortgage, or security interest as defined by the Business & Commerce Code.</content>
</paragraph>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c111/s111.0035">
<num value="111.0035">Sec. 111.0035.</num>
<heading>DEFAULT AND MANDATORY RULES; CONFLICT BETWEEN TERMS AND STATUTE</heading>
<subsection identifier="/us/tx/pr/t9/c111/s111.0035/a">
<num value="a">(a)</num>
<chapeau>Except as provided by the terms of a trust and Subsection (b), this subtitle governs:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c111/s111.0035/1">
<num value="1">(1)</num>
<content>the duties and powers of a trustee;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c111/s111.0035/2">
<num value="2">(2)</num>
<content>relations among trustees; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c111/s111.0035/3">
<num value="3">(3)</num>
<content>the rights and interests of a beneficiary.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c111/s111.0035/b">
<num value="b">(b)</num>
<chapeau>The terms of a trust prevail over any provision of this subtitle, except that the terms of a trust may not limit:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c111/s111.0035/1">
<num value="1">(1)</num>
<content>the requirements imposed under Section 112.031;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c111/s111.0035/2">
<num value="2">(2)</num>
<content>the applicability of Section 114.007 to an exculpation term of a trust;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c111/s111.0035/3">
<num value="3">(3)</num>
<content>the periods of limitation for commencing a judicial proceeding regarding a trust;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c111/s111.0035/4">
<num value="4">(4)</num>
<chapeau>a trustee's duty:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c111/s111.0035/A">
<num value="A">(A)</num>
<content>with regard to an irrevocable trust, to respond to a demand for accounting made under Section 113.151 if the demand is from a beneficiary who, at the time of the demand:</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c111/s111.0035/i">
<num value="i">(i)</num>
<chapeau>is entitled or permitted to receive distributions from the trust; or</chapeau>
<clause identifier="/us/tx/pr/t9/c111/s111.0035/ii">
<num value="ii">(ii)</num>
<content>would receive a distribution from the trust if the trust terminated at the time of the demand; and</content>
</clause>
<subparagraph identifier="/us/tx/pr/t9/c111/s111.0035/B">
<num value="B">(B)</num>
<content>to act in good faith and in accordance with the purposes of the trust;</content>
</subparagraph>
<paragraph identifier="/us/tx/pr/t9/c111/s111.0035/5">
<num value="5">(5)</num>
<chapeau>the power of a court, in the interest of justice, to take action or exercise jurisdiction, including the power to:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c111/s111.0035/A">
<num value="A">(A)</num>
<content>modify, reform, or terminate a trust or take other action under Section 112.054;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c111/s111.0035/B">
<num value="B">(B)</num>
<content>remove a trustee under Section 113.082;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c111/s111.0035/C">
<num value="C">(C)</num>
<content>exercise jurisdiction under Section 115.001;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c111/s111.0035/D">
<num value="D">(D)</num>
<content>require, dispense with, modify, or terminate a trustee's bond;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c111/s111.0035/E">
<num value="E">(E)</num>
<content>adjust, deny, or order disgorgement of a trustee's compensation if the trustee commits a breach of trust; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c111/s111.0035/F">
<num value="F">(F)</num>
<content>make an award of costs and attorney's fees under Section 114.064; or</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c111/s111.0035/6">
<num value="6">(6)</num>
<content>the applicability of Section 112.038.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c111/s111.0035/c">
<num value="c">(c)</num>
<chapeau>The terms of a trust may not limit any common-law duty to keep a beneficiary of an irrevocable trust who is 25 years of age or older informed at any time during which the beneficiary:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c111/s111.0035/1">
<num value="1">(1)</num>
<content>is entitled or permitted to receive distributions from the trust; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c111/s111.0035/2">
<num value="2">(2)</num>
<content>would receive a distribution from the trust if the trust were terminated.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 2, eff. January 1, 2006.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 451 (H.B. 564), Sec. 2, eff. June 16, 2007.
Acts 2009, 81st Leg., R.S., Ch. 414 (H.B. 1969), Sec. 2, eff. June 19, 2009.
Acts 2017, 85th Leg., R.S., Ch. 62 (S.B. 617), Sec. 1, eff. September 1, 2017.
Acts 2019, 86th Leg., R.S., Ch. 1112 (H.B. 2245), Sec. 1, eff. September 1, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c111/s111.004">
<num value="111.004">Sec. 111.004.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this subtitle:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c111/s111.004/1">
<num value="1">(1)</num>
<chapeau>"Affiliate" includes:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c111/s111.004/A">
<num value="A">(A)</num>
<content>a person who directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with another person; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c111/s111.004/B">
<num value="B">(B)</num>
<content>any officer, director, partner, employee, or relative of a person, and any corporation or partnership of which a person is an officer, director, or partner.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c111/s111.004/2">
<num value="2">(2)</num>
<content>"Beneficiary" means a person for whose benefit property is held in trust, regardless of the nature of the interest.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c111/s111.004/3">
<num value="3">(3)</num>
<content>"Court" means a court of appropriate jurisdiction.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c111/s111.004/4">
<num value="4">(4)</num>
<chapeau>"Express trust" means a fiduciary relationship with respect to property which arises as a manifestation by the settlor of an intention to create the relationship and which subjects the person holding title to the property to equitable duties to deal with the property:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c111/s111.004/A">
<num value="A">(A)</num>
<content>for the benefit of another person; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c111/s111.004/B">
<num value="B">(B)</num>
<content>for a particular purpose, in the case of a trust subject to Subchapter F.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c111/s111.004/5">
<num value="5">(5)</num>
<content>"Income" is defined in Section 116.002.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c111/s111.004/6">
<num value="6">(6)</num>
<content>"Interest" means any interest, whether legal or equitable or both, present or future, vested or contingent, defeasible or indefeasible.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c111/s111.004/7">
<num value="7">(7)</num>
<content>"Interested person" means a trustee, beneficiary, or any other person having an interest in or a claim against the trust or any person who is affected by the administration of the trust. Whether a person, excluding a trustee or named beneficiary, is an interested person may vary from time to time and must be determined according to the particular purposes of and matter involved in any proceeding.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c111/s111.004/8">
<num value="8">(8)</num>
<content>"Internal Revenue Code" means the Internal Revenue Code of 1954, as amended, or any corresponding statute subsequently in effect.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c111/s111.004/9">
<num value="9">(9)</num>
<content>"Inventory value" means the cost of property purchased by a trustee, the market value of property at the time it became subject to the trust, or, in the case of a testamentary trust, any value used by the trustee that is finally determined for the purposes of an estate or inheritance tax.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c111/s111.004/10">
<num value="10">(10)</num>
<chapeau>"Person" means:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c111/s111.004/A">
<num value="A">(A)</num>
<content>an individual;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c111/s111.004/B">
<num value="B">(B)</num>
<content>a corporation;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c111/s111.004/C">
<num value="C">(C)</num>
<content>a limited liability company;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c111/s111.004/D">
<num value="D">(D)</num>
<content>a partnership;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c111/s111.004/E">
<num value="E">(E)</num>
<content>a joint venture;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c111/s111.004/F">
<num value="F">(F)</num>
<content>an association;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c111/s111.004/G">
<num value="G">(G)</num>
<content>a joint-stock company;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c111/s111.004/H">
<num value="H">(H)</num>
<content>a business trust;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c111/s111.004/I">
<num value="I">(I)</num>
<content>an unincorporated organization;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c111/s111.004/J">
<num value="J">(J)</num>
<content>two or more persons having a joint or common interest, including an individual or a corporation acting as a personal representative or in any other fiduciary capacity;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c111/s111.004/K">
<num value="K">(K)</num>
<content>a government;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c111/s111.004/L">
<num value="L">(L)</num>
<content>a governmental subdivision, agency, or instrumentality;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c111/s111.004/M">
<num value="M">(M)</num>
<content>a public corporation; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c111/s111.004/N">
<num value="N">(N)</num>
<content>any other legal or commercial entity.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c111/s111.004/11">
<num value="11">(11)</num>
<content>"Principal" is defined in Section 116.002.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c111/s111.004/12">
<num value="12">(12)</num>
<content>"Property" means any type of property, whether real, tangible or intangible, legal, or equitable, including property held in any digital or electronic medium. The term also includes choses in action, claims, and contract rights, including a contractual right to receive death benefits as designated beneficiary under a policy of insurance, contract, employees' trust, retirement account, or other arrangement.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c111/s111.004/13">
<num value="13">(13)</num>
<content>"Relative" means a spouse or, whether by blood or adoption, an ancestor, descendant, brother, sister, or spouse of any of them.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c111/s111.004/14">
<num value="14">(14)</num>
<content>"Settlor" means a person who creates a trust or contributes property to a trustee of a trust. If more than one person contributes property to a trustee of a trust, each person is a settlor of the portion of the property in the trust attributable to that person's contribution to the trust. The terms "grantor" and "trustor" mean the same as "settlor."</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c111/s111.004/15">
<num value="15">(15)</num>
<content>"Terms of the trust" means the manifestation of intention of the settlor with respect to the trust expressed in a manner that admits of its proof in judicial proceedings.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c111/s111.004/16">
<num value="16">(16)</num>
<content>"Transaction" means any act performed by a settlor, trustee, or beneficiary in relation to a trust, including the creation or termination of a trust, the investment of trust property, a breach of duty, the receipt of trust property, the receipt of income or the incurring of expense, a distribution of trust property, an entry in the books and records of the trust, and an accounting by a trustee to any person entitled to receive an accounting.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c111/s111.004/17">
<num value="17">(17)</num>
<content>"Trust property" means property placed in trust by one of the methods specified in Section 112.001 or property otherwise transferred to or acquired or retained by the trustee for the trust.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c111/s111.004/18">
<num value="18">(18)</num>
<content>"Trustee" means the person holding the property in trust, including an original, additional, or successor trustee, whether or not the person is appointed or confirmed by a court.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c111/s111.004/19">
<num value="19">(19)</num>
<chapeau>"Employees' trust" means:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c111/s111.004/A">
<num value="A">(A)</num>
<content>a trust that forms a part of a stock-bonus, pension, or profit-sharing plan under Section 401, Internal Revenue Code of 1954 (26 U.S.C.A. Sec. 401 (1986));</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c111/s111.004/B">
<num value="B">(B)</num>
<content>a pension trust under Chapter 111; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c111/s111.004/C">
<num value="C">(C)</num>
<content>an employer-sponsored benefit plan or program, or any other retirement savings arrangement, including a pension plan created under Section 3, Employee Retirement Income Security Act of 1974 (29 U.S.C.A. Sec. 1002 (1986)), regardless of whether the plan, program, or arrangement is funded through a trust.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c111/s111.004/20">
<num value="20">(20)</num>
<content>"Individual retirement account" means a trust, custodial arrangement, or annuity under Section 408(a) or (b), Internal Revenue Code of 1954 (26 U.S.C.A. Sec. 408 (1986)).</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c111/s111.004/21">
<num value="21">(21)</num>
<content>"Retirement account" means a retirement-annuity contract, an individual retirement account, a simplified employee pension, or any other retirement savings arrangement.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c111/s111.004/22">
<num value="22">(22)</num>
<content>"Retirement-annuity contract" means an annuity contract under Section 403, Internal Revenue Code of 1954 (26 U.S.C.A. Sec. 403 (1986)).</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c111/s111.004/23">
<num value="23">(23)</num>
<content>"Simplified employee pension" means a trust, custodial arrangement, or annuity under Section 408, Internal Revenue Code of 1954 (26 U.S.C.A. Sec. 408 (1986)).</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c111/s111.004/24">
<num value="24">(24)</num>
<content>"Environmental law" means any federal, state, or local law, rule, regulation, or ordinance relating to protection of the environment.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c111/s111.004/25">
<num value="25">(25)</num>
<content>"Breach of trust" means a violation by a trustee of a duty the trustee owes to a beneficiary.</content>
</paragraph>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984. Amended by Acts 1987, 70th Leg., ch. 741, Sec. 1, 2, eff. Aug. 31, 1987; Acts 1993, 73rd Leg., ch. 846, Sec. 28, eff. Sept. 1, 1993; Acts 1995, 74th Leg., ch. 642, Sec. 14, eff. Sept. 1, 1995; Acts 2003, 78th Leg., ch. 659, Sec. 2, eff. Jan. 1, 2004; Acts 2003, 78th Leg., ch. 1103, Sec. 2, eff. Jan. 1, 2004.
Amended by:
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 3, eff. January 1, 2006.
Acts 2007, 80th Leg., R.S., Ch. 451 (H.B. 564), Sec. 3, eff. September 1, 2007.
Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 1, eff. September 1, 2013.
Acts 2023, 88th Leg., R.S., Ch. 1121 (H.B. 2333), Sec. 1, eff. June 18, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c111/s111.005">
<num value="111.005">Sec. 111.005.</num>
<heading>REENACTMENT OF COMMON LAW</heading>
<content>If the law codified in this subtitle repealed a statute that abrogated or restated a common law rule, that common law rule is reestablished, except as the contents of the rule are changed by this subtitle.</content>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c111/s111.006">
<num value="111.006">Sec. 111.006.</num>
<heading>APPLICATION</heading>
<chapeau>This subtitle applies:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c111/s111.006/1">
<num value="1">(1)</num>
<content>to all trusts created on or after January 1, 1984, and to all transactions relating to such trusts; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c111/s111.006/2">
<num value="2">(2)</num>
<content>to all transactions occurring on or after January 1, 1984, relating to trusts created before January 1, 1984; provided that transactions entered into before January 1, 1984, and which were subject to the Texas Trust Act, as amended (Articles 7425b-1 through 7425b-48, Vernon's Texas Civil Statutes), and the rights, duties, and interests flowing from such transactions remain valid on and after January 1, 1984, and must be terminated, consummated, or enforced as required or permitted by this subtitle.</content>
</paragraph>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t9/c112">
<num value="112">CHAPTER 112.</num>
<heading>CREATION, VALIDITY, MODIFICATION, AND TERMINATION OF TRUSTS</heading>
<subchapter identifier="/us/tx/pr/t9/c112/scA">
<num value="A">SUBCHAPTER A.</num>
<heading>CREATION</heading>
<section identifier="/us/tx/pr/t9/c112/scA/s112.001">
<num value="112.001">Sec. 112.001.</num>
<heading>METHODS OF CREATING TRUST</heading>
<chapeau>A trust may be created by:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c112/scA/s112.001/1">
<num value="1">(1)</num>
<content>a property owner's declaration that the owner holds the property as trustee for another person;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scA/s112.001/2">
<num value="2">(2)</num>
<content>a property owner's inter vivos transfer of the property to another person as trustee for the transferor or a third person;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scA/s112.001/3">
<num value="3">(3)</num>
<content>a property owner's testamentary transfer to another person as trustee for a third person;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scA/s112.001/4">
<num value="4">(4)</num>
<content>an appointment under a power of appointment to another person as trustee for the donee of the power or for a third person; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scA/s112.001/5">
<num value="5">(5)</num>
<content>a promise to another person whose rights under the promise are to be held in trust for a third person.</content>
</paragraph>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scA/s112.002">
<num value="112.002">Sec. 112.002.</num>
<heading>INTENTION TO CREATE TRUST</heading>
<content>A trust is created only if the settlor manifests an intention to create a trust.</content>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scA/s112.003">
<num value="112.003">Sec. 112.003.</num>
<heading>CONSIDERATION</heading>
<content>Consideration is not required for the creation of a trust. A promise to create a trust in the future is enforceable only if the requirements for an enforceable contract are present.</content>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scA/s112.004">
<num value="112.004">Sec. 112.004.</num>
<heading>STATUTE OF FRAUDS</heading>
<chapeau>A trust in either real or personal property is enforceable only if there is written evidence of the trust's terms bearing the signature of the settlor or the settlor's authorized agent. A trust consisting of personal property, however, is enforceable if created by:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c112/scA/s112.004/1">
<num value="1">(1)</num>
<content>a transfer of the trust property to a trustee who is neither settlor nor beneficiary if the transferor expresses simultaneously with or prior to the transfer the intention to create a trust; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scA/s112.004/2">
<num value="2">(2)</num>
<content>a declaration in writing by the owner of property that the owner holds the property as trustee for another person or for the owner and another person as a beneficiary.</content>
</paragraph>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scA/s112.005">
<num value="112.005">Sec. 112.005.</num>
<heading>TRUST PROPERTY</heading>
<content>A trust cannot be created unless there is trust property.</content>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scA/s112.006">
<num value="112.006">Sec. 112.006.</num>
<heading>ADDITIONS TO TRUST PROPERTY</heading>
<content>Property may be added to an existing trust from any source in any manner unless the addition is prohibited by the terms of the trust or the property is unacceptable to the trustee.</content>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scA/s112.007">
<num value="112.007">Sec. 112.007.</num>
<heading>CAPACITY OF SETTLOR</heading>
<content>A person has the same capacity to create a trust by declaration, inter vivos or testamentary transfer, or appointment that the person has to transfer, will, or appoint free of trust.</content>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scA/s112.008">
<num value="112.008">Sec. 112.008.</num>
<heading>CAPACITY OF TRUSTEE</heading>
<subsection identifier="/us/tx/pr/t9/c112/scA/s112.008/a">
<num value="a">(a)</num>
<content>The trustee must have the legal capacity to take, hold, and transfer the trust property. If the trustee is a corporation, it must have the power to act as a trustee in this state.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scA/s112.008/b">
<num value="b">(b)</num>
<content>Except as provided by Section 112.034, the fact that the person named as trustee is also a beneficiary does not disqualify the person from acting as trustee if he is otherwise qualified.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scA/s112.008/c">
<num value="c">(c)</num>
<content>The settlor of a trust may be the trustee of the trust.</content>
</subsection>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scA/s112.009">
<num value="112.009">Sec. 112.009.</num>
<heading>ACCEPTANCE BY TRUSTEE</heading>
<subsection identifier="/us/tx/pr/t9/c112/scA/s112.009/a">
<num value="a">(a)</num>
<chapeau>The signature of the person named as trustee on the writing evidencing the trust or on a separate written acceptance is conclusive evidence that the person accepted the trust. A person named as trustee who exercises power or performs duties under the trust is presumed to have accepted the trust, except that a person named as trustee may engage in the following conduct without accepting the trust:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c112/scA/s112.009/1">
<num value="1">(1)</num>
<chapeau>acting to preserve the trust property if, within a reasonable time after acting, the person gives notice of the rejection of the trust to:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c112/scA/s112.009/A">
<num value="A">(A)</num>
<content>the settlor; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c112/scA/s112.009/B">
<num value="B">(B)</num>
<content>if the settlor is deceased or incapacitated, all beneficiaries then entitled to receive trust distributions from the trust; and</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scA/s112.009/2">
<num value="2">(2)</num>
<content>inspecting or investigating trust property for any purpose, including determining the potential liability of the trust under environmental or other law.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scA/s112.009/b">
<num value="b">(b)</num>
<content>A person named as trustee who does not accept the trust incurs no liability with respect to the trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scA/s112.009/c">
<num value="c">(c)</num>
<content>If the person named as the original trustee does not accept the trust or if the person is dead or does not have capacity to act as trustee, the person named as the alternate trustee under the terms of the trust or the person selected as alternate trustee according to a method prescribed in the terms of the trust may accept the trust. If a trustee is not named or if there is no alternate trustee designated or selected in the manner prescribed in the terms of the trust, the court shall appoint a trustee on a petition of any interested person.</content>
</subsection>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
Amended by:
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 4, eff. January 1, 2006.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scA/s112.010">
<num value="112.010">Sec. 112.010.</num>
<heading>PRESUMED ACCEPTANCE BY BENEFICIARY; DISCLAIMER</heading>
<subsection identifier="/us/tx/pr/t9/c112/scA/s112.010/a">
<num value="a">(a)</num>
<content>Acceptance by a beneficiary of an interest in a trust is presumed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scA/s112.010/b">
<num value="b">(b)</num>
<content>A disclaimer of an interest in or power over trust property is governed by Chapter 240.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scA/s112.010/c">
<num value="c">(c)</num>
<content>Repealed by Acts 2015, 84th Leg., R.S., Ch. 562 , Sec. 16(4), eff. September 1, 2015.</content>
<continuation>(c-1) Repealed by Acts 2015, 84th Leg., R.S., Ch. 562 , Sec. 16(4), eff. September 1, 2015.</continuation>
<continuation>(c-2) Repealed by Acts 2015, 84th Leg., R.S., Ch. 562 , Sec. 16(4), eff. September 1, 2015.</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scA/s112.010/d">
<num value="d">(d)</num>
<content>Repealed by Acts 2015, 84th Leg., R.S., Ch. 562 , Sec. 16(4), eff. September 1, 2015.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scA/s112.010/e">
<num value="e">(e)</num>
<content>Repealed by Acts 2015, 84th Leg., R.S., Ch. 562 , Sec. 16(4), eff. September 1, 2015.</content>
</subsection>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984. Amended by Acts 1987, 70th Leg., ch. 467, Sec. 3, eff. Sept. 1, 1987; Acts 1993, 73rd Leg., ch. 846, Sec. 3, eff. Sept. 1, 1993.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 672 (H.B. 2368), Sec. 2, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 657 (S.B. 1197), Sec. 1, eff. September 1, 2011.
Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428), Sec. 13, eff. September 1, 2015.
Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428), Sec. 14, eff. September 1, 2015.
Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428), Sec. 16(4), eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scA/s112.011">
<num value="112.011">Sec. 112.011.</num>
<heading>POSTHUMOUS CLASS GIFTS MEMBERSHIP</heading>
<subsection identifier="/us/tx/pr/t9/c112/scA/s112.011/a">
<num value="a">(a)</num>
<content>A right to take as a member under a class gift does not accrue to any person unless the person is born before, or is in gestation at, the time of death of the person by which the class is measured and survives that person by at least 120 hours.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scA/s112.011/b">
<num value="b">(b)</num>
<chapeau>For purposes of Subsection (a), a person is:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c112/scA/s112.011/1">
<num value="1">(1)</num>
<content>considered to be in gestation if insemination or implantation occurs at or before the time of death of the person by which the class is measured; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scA/s112.011/2">
<num value="2">(2)</num>
<content>presumed to be in gestation at the time of death of the person by which the class is measured if the person was born before the 301st day after the date of the person's death.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scA/s112.011/c">
<num value="c">(c)</num>
<content>A provision in the trust instrument that is contrary to this section prevails over this section.</content>
</subsection>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 844 (H.B. 2271), Sec. 37, eff. September 1, 2017.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t9/c112/scB">
<num value="B">SUBCHAPTER B.</num>
<heading>VALIDITY</heading>
<section identifier="/us/tx/pr/t9/c112/scB/s112.031">
<num value="112.031">Sec. 112.031.</num>
<heading>TRUST PURPOSES</heading>
<content>A trust may be created for any purpose that is not illegal. The terms of the trust may not require the trustee to commit a criminal or tortious act or an act that is contrary to public policy.</content>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scB/s112.032">
<num value="112.032">Sec. 112.032.</num>
<heading>ACTIVE AND PASSIVE TRUSTS; STATUTE OF USES</heading>
<subsection identifier="/us/tx/pr/t9/c112/scB/s112.032/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (b), title to real property held in trust vests directly in the beneficiary if the trustee has neither a power nor a duty related to the administration of the trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scB/s112.032/b">
<num value="b">(b)</num>
<content>The title of a trustee in real property is not divested if the trustee's title is not merely nominal but is subject to a power or duty in relation to the property.</content>
</subsection>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scB/s112.033">
<num value="112.033">Sec. 112.033.</num>
<heading>RESERVATION OF INTERESTS AND POWERS BY SETTLOR</heading>
<chapeau>If during the life of the settlor an interest in a trust or the trust property is created in a beneficiary other than the settlor, the disposition is not invalid as an attempted testamentary disposition merely because the settlor reserves or retains, either in himself or another person who is not the trustee, any or all of the other interests in or powers over the trust or trust property, such as:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c112/scB/s112.033/1">
<num value="1">(1)</num>
<content>a beneficial life interest for himself;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scB/s112.033/2">
<num value="2">(2)</num>
<content>the power to revoke, modify, or terminate the trust in whole or in part;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scB/s112.033/3">
<num value="3">(3)</num>
<content>the power to designate the person to whom or on whose behalf the income or principal is to be paid or applied;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scB/s112.033/4">
<num value="4">(4)</num>
<content>the power to control the administration of the trust in whole or in part;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scB/s112.033/5">
<num value="5">(5)</num>
<content>the right to exercise a power or option over property in the trust or over interests made payable to the trust under an employee benefit plan, life insurance policy, or otherwise; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scB/s112.033/6">
<num value="6">(6)</num>
<content>the power to add property or cause additional employee benefits, life insurance, or other interests to be made payable to the trust at any time.</content>
</paragraph>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scB/s112.0335">
<num value="112.0335">Sec. 112.0335.</num>
<heading>CONSTRUCTION OF CERTAIN TRUSTS</heading>
<subsection identifier="/us/tx/pr/t9/c112/scB/s112.0335/a">
<num value="a">(a)</num>
<content>Unless the terms of the trust provide otherwise, if a trust is created and amendable or revocable by the settlor, or by the settlor and the settlor's spouse, Chapter 255, Estates Code, applies at the settlor's death to the construction and interpretation of at-death transfers as if the settlor of the trust is the testator, the beneficiaries of the at-death transfer are devisees, and the at-death transfers are devises.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scB/s112.0335/b">
<num value="b">(b)</num>
<content>Section 355.109, Estates Code, applies to the abatement of at-death transfers.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scB/s112.0335/c">
<num value="c">(c)</num>
<content>For purposes of this section, "at-death transfer" means a transfer pursuant to the terms of a trust described by Subsection (a) that is intended to take effect or become irrevocable by reason of the settlor's death.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scB/s112.0335/d">
<num value="d">(d)</num>
<chapeau>For purposes of the Estates Code provisions specified by this section:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c112/scB/s112.0335/1">
<num value="1">(1)</num>
<content>an at-death transfer of specifically identifiable trust property is a specific bequest, devise, or legacy;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scB/s112.0335/2">
<num value="2">(2)</num>
<content>an at-death transfer from the general assets of the trust that does not transfer specifically identifiable property is a general bequest, devise, or legacy; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scB/s112.0335/3">
<num value="3">(3)</num>
<content>an at-death transfer of trust property that remains after all specific and general transfers have been satisfied is the residuary estate.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 1112 (H.B. 2245), Sec. 2, eff. September 1, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scB/s112.034">
<num value="112.034">Sec. 112.034.</num>
<heading>MERGER</heading>
<subsection identifier="/us/tx/pr/t9/c112/scB/s112.034/a">
<num value="a">(a)</num>
<content>If a settlor transfers both the legal title and all equitable interests in property to the same person or retains both the legal title and all equitable interests in property in himself as both the sole trustee and the sole beneficiary, a trust is not created and the transferee holds the property as his own. This subtitle does not invalidate a trust account validly created and in effect under Chapter 113, Estates Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scB/s112.034/b">
<num value="b">(b)</num>
<content>Except as provided by Subsection (c) of this section, a trust terminates if the legal title to the trust property and all equitable interests in the trust become united in one person.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scB/s112.034/c">
<num value="c">(c)</num>
<content>The title to trust property and all equitable interests in the trust property may not become united in a beneficiary, other than the settlor, whose interest is protected under a spendthrift trust, and in that case the court shall appoint a new trustee or cotrustee to administer the trust for the benefit of the beneficiary.</content>
</subsection>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 846 (H.B. 2780), Sec. 13, eff. September 1, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scB/s112.035">
<num value="112.035">Sec. 112.035.</num>
<heading>SPENDTHRIFT TRUSTS</heading>
<subsection identifier="/us/tx/pr/t9/c112/scB/s112.035/a">
<num value="a">(a)</num>
<content>A settlor may provide in the terms of the trust that the interest of a beneficiary in the income or in the principal or in both may not be voluntarily or involuntarily transferred before payment or delivery of the interest to the beneficiary by the trustee.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scB/s112.035/b">
<num value="b">(b)</num>
<content>A declaration in a trust instrument that the interest of a beneficiary shall be held subject to a "spendthrift trust" is sufficient to restrain voluntary or involuntary alienation of the interest by a beneficiary to the maximum extent permitted by this subtitle.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scB/s112.035/c">
<num value="c">(c)</num>
<content>A trust containing terms authorized under Subsection (a) or (b) of this section may be referred to as a spendthrift trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scB/s112.035/d">
<num value="d">(d)</num>
<chapeau>If the settlor is also a beneficiary of the trust, a provision restraining the voluntary or involuntary transfer of the settlor's beneficial interest does not prevent the settlor's creditors from satisfying claims from the settlor's interest in the trust estate. A settlor is not considered a beneficiary of a trust solely because:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c112/scB/s112.035/1">
<num value="1">(1)</num>
<content>a trustee who is not the settlor is authorized under the trust instrument to pay or reimburse the settlor for, or pay directly to the taxing authorities, any tax on trust income or principal that is payable by the settlor under the law imposing the tax; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scB/s112.035/2">
<num value="2">(2)</num>
<content>the settlor's interest in the trust was created by the exercise of a power of appointment by a third party.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scB/s112.035/e">
<num value="e">(e)</num>
<chapeau>A beneficiary of the trust may not be considered a settlor merely because of a lapse, waiver, or release of:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c112/scB/s112.035/1">
<num value="1">(1)</num>
<content>a power described by Subsection (f); or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scB/s112.035/2">
<num value="2">(2)</num>
<chapeau>the beneficiary's right to withdraw a part of the trust property to the extent that the value of the property affected by the lapse, waiver, or release in any calendar year does not exceed the greater of:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c112/scB/s112.035/A">
<num value="A">(A)</num>
<content>the amount specified in Section 2041(b)(2) or 2514(e), Internal Revenue Code of 1986; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c112/scB/s112.035/B">
<num value="B">(B)</num>
<content>the amount specified in Section 2503(b), Internal Revenue Code of 1986, with respect to the contributions by each donor.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scB/s112.035/f">
<num value="f">(f)</num>
<chapeau>A beneficiary of the trust may not be considered to be a settlor, to have made a voluntary or involuntary transfer of the beneficiary's interest in the trust, or to have the power to make a voluntary or involuntary transfer of the beneficiary's interest in the trust, merely because the beneficiary, in any capacity, holds or exercises:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c112/scB/s112.035/1">
<num value="1">(1)</num>
<chapeau>a presently exercisable power to:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c112/scB/s112.035/A">
<num value="A">(A)</num>
<content>consume, invade, appropriate, or distribute property to or for the benefit of the beneficiary, if the power is:</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scB/s112.035/i">
<num value="i">(i)</num>
<chapeau>exercisable only on consent of another person holding an interest adverse to the beneficiary's interest; or</chapeau>
<clause identifier="/us/tx/pr/t9/c112/scB/s112.035/ii">
<num value="ii">(ii)</num>
<content>limited by an ascertainable standard, including health, education, support, or maintenance of the beneficiary; or</content>
</clause>
<subparagraph identifier="/us/tx/pr/t9/c112/scB/s112.035/B">
<num value="B">(B)</num>
<content>appoint any property of the trust to or for the benefit of a person other than the beneficiary, a creditor of the beneficiary, the beneficiary's estate, or a creditor of the beneficiary's estate;</content>
</subparagraph>
<paragraph identifier="/us/tx/pr/t9/c112/scB/s112.035/2">
<num value="2">(2)</num>
<content>a testamentary power of appointment; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scB/s112.035/3">
<num value="3">(3)</num>
<content>a presently exercisable right described by Subsection (e)(2).</content>
<continuation>(f-1) A beneficiary of the trust or the estate of a beneficiary of the trust may not be considered to be a settlor merely because the beneficiary, in any capacity:</continuation>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scB/s112.035/1">
<num value="1">(1)</num>
<content>held or exercised a testamentary power of appointment other than a general power of appointment;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scB/s112.035/2">
<num value="2">(2)</num>
<content>held a testamentary general power of appointment; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scB/s112.035/3">
<num value="3">(3)</num>
<content>exercised a testamentary general power of appointment in favor of or for the benefit of the takers in default of the appointive assets.</content>
<continuation>(f-2) If a beneficiary of the trust exercised a testamentary general power of appointment in favor of or for the benefit of any appointee other than the takers in default of the appointive assets, the appointive assets are:</continuation>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scB/s112.035/1">
<num value="1">(1)</num>
<content>subject to the claims of creditors of the beneficiary, but only to the extent the beneficiary's own property is insufficient to meet the beneficiary's debts; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scB/s112.035/2">
<num value="2">(2)</num>
<chapeau>unless appointed to the beneficiary's estate, not subject to:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c112/scB/s112.035/A">
<num value="A">(A)</num>
<content>administration as a part of the beneficiary's estate;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c112/scB/s112.035/B">
<num value="B">(B)</num>
<content>recovery by the personal representative of the beneficiary's estate, except as provided by Section 2207B, Internal Revenue Code of 1986; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c112/scB/s112.035/C">
<num value="C">(C)</num>
<content>the payment of taxes or administration expenses of the beneficiary's estate.</content>
<continuation>(f-3) For the purposes of Subsections (f-1) and (f-2), "general power of appointment" has the meaning assigned by Section 2041(b)(1), Internal Revenue Code of 1986.</continuation>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scB/s112.035/g">
<num value="g">(g)</num>
<chapeau>For the purposes of this section, property contributed to the following trusts is not considered to have been contributed by the settlor, and a person who would otherwise be treated as a settlor or a deemed settlor of the following trusts may not be treated as a settlor:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c112/scB/s112.035/1">
<num value="1">(1)</num>
<chapeau>an irrevocable inter vivos marital trust if:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c112/scB/s112.035/A">
<num value="A">(A)</num>
<content>the settlor is a beneficiary of the trust after the death of the settlor's spouse; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c112/scB/s112.035/B">
<num value="B">(B)</num>
<content>the trust is treated as:</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scB/s112.035/i">
<num value="i">(i)</num>
<chapeau>qualified terminable interest property under Section 2523(f), Internal Revenue Code of 1986; or</chapeau>
<clause identifier="/us/tx/pr/t9/c112/scB/s112.035/ii">
<num value="ii">(ii)</num>
<content>a general power of appointment trust under Section 2523(e), Internal Revenue Code of 1986;</content>
</clause>
<paragraph identifier="/us/tx/pr/t9/c112/scB/s112.035/2">
<num value="2">(2)</num>
<content>an irrevocable inter vivos trust for the settlor's spouse if the settlor is a beneficiary of the trust after the death of the settlor's spouse; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scB/s112.035/3">
<num value="3">(3)</num>
<chapeau>an irrevocable trust for the benefit of a person:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c112/scB/s112.035/A">
<num value="A">(A)</num>
<content>if the settlor is the person's spouse, regardless of whether or when the person was the settlor of an irrevocable trust for the benefit of that spouse; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c112/scB/s112.035/B">
<num value="B">(B)</num>
<content>to the extent that the property of the trust was subject to a general power of appointment in another person.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scB/s112.035/h">
<num value="h">(h)</num>
<chapeau>For the purposes of Subsection (g), a person is a beneficiary whether named a beneficiary:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c112/scB/s112.035/1">
<num value="1">(1)</num>
<content>under the initial trust instrument; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scB/s112.035/2">
<num value="2">(2)</num>
<chapeau>through the exercise of a limited or general power of appointment by:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c112/scB/s112.035/A">
<num value="A">(A)</num>
<content>that person's spouse; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c112/scB/s112.035/B">
<num value="B">(B)</num>
<content>another person.</content>
</subparagraph>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984. Amended by Acts 1997, 75th Leg., ch. 109, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 5, eff. January 1, 2006.
Acts 2007, 80th Leg., R.S., Ch. 451 (H.B. 564), Sec. 4, eff. September 1, 2007.
Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 2, eff. September 1, 2013.
Acts 2017, 85th Leg., R.S., Ch. 62 (S.B. 617), Sec. 2, eff. September 1, 2017.
Acts 2023, 88th Leg., R.S., Ch. 446 (H.B. 2196), Sec. 2, eff. June 9, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scB/s112.036">
<num value="112.036">Sec. 112.036.</num>
<heading>RULE AGAINST PERPETUITIES</heading>
<subsection identifier="/us/tx/pr/t9/c112/scB/s112.036/a">
<num value="a">(a)</num>
<content>The rule against perpetuities applies to an interest in a trust other than a charitable trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scB/s112.036/b">
<num value="b">(b)</num>
<content>For purposes of this section, the effective date is the date the governing instrument creating an interest in the trust becomes irrevocable with respect to that interest. If an interest in one trust is distributed to another trust with a different effective date, the effective date of that interest in the second trust becomes the earlier of the effective dates of the two trusts.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scB/s112.036/c">
<num value="c">(c)</num>
<chapeau>An interest in a trust must vest, if at all:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c112/scB/s112.036/1">
<num value="1">(1)</num>
<chapeau>if the effective date is on or after September 1, 2021, not later than the later of:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c112/scB/s112.036/A">
<num value="A">(A)</num>
<content>300 years after the effective date; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c112/scB/s112.036/B">
<num value="B">(B)</num>
<content>21 years after some life in being at the time of the effective date, plus a period of gestation; or</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scB/s112.036/2">
<num value="2">(2)</num>
<content>if the effective date is before September 1, 2021, except as provided by Subsection (d), not later than 21 years after some life in being at the time of the effective date, plus a period of gestation.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scB/s112.036/d">
<num value="d">(d)</num>
<content>An interest in a trust that has an effective date before September 1, 2021, may vest as described by Subsection (c)(1) if the trust instrument provides that an interest in the trust vests under the provisions of this section applicable to trusts on the date that the interest vests.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scB/s112.036/e">
<num value="e">(e)</num>
<content>Any interest in a trust may be reformed or construed to the extent and as provided by Section 5.043.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scB/s112.036/f">
<num value="f">(f)</num>
<content>Under this section, a settlor of a trust may not direct that a real property asset be retained or refuse that a real property asset may be sold for a period longer than 100 years.</content>
</subsection>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 18, Sec. 10, eff. Oct. 2, 1984.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 792 (H.B. 654), Sec. 1, eff. September 1, 2021.
Acts 2023, 88th Leg., R.S., Ch. 446 (H.B. 2196), Sec. 3, eff. June 9, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scB/s112.037">
<num value="112.037">Sec. 112.037.</num>
<heading>TRUST FOR CARE OF ANIMAL</heading>
<subsection identifier="/us/tx/pr/t9/c112/scB/s112.037/a">
<num value="a">(a)</num>
<content>A trust may be created to provide for the care of an animal alive during the settlor's lifetime. The trust terminates on the death of the animal or, if the trust is created to provide for the care of more than one animal alive during the settlor's lifetime, on the death of the last surviving animal.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scB/s112.037/b">
<num value="b">(b)</num>
<content>A trust authorized by this section may be enforced by a person appointed in the terms of the trust or, if a person is not appointed in the terms of the trust, by a person appointed by the court. A person having an interest in the welfare of an animal that is the subject of a trust authorized by this section may request the court to appoint a person to enforce the trust or to remove a person appointed to enforce the trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scB/s112.037/c">
<num value="c">(c)</num>
<content>Except as provided by Subsections (d) and (e), property of a trust authorized by this section may be applied only to the property's intended use under the trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scB/s112.037/d">
<num value="d">(d)</num>
<content>Property of a trust authorized by this section may be applied to a use other than the property's intended use under the trust to the extent the court determines that the value of the trust property exceeds the amount required for the intended use.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scB/s112.037/e">
<num value="e">(e)</num>
<chapeau>Except as otherwise provided by the terms of the trust, property not required for the trust's intended use must be distributed to:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c112/scB/s112.037/1">
<num value="1">(1)</num>
<content>if the settlor is living at the time the trust property is distributed, the settlor; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scB/s112.037/2">
<num value="2">(2)</num>
<chapeau>if the settlor is not living at the time the trust property is distributed:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c112/scB/s112.037/A">
<num value="A">(A)</num>
<content>if the settlor has a will, beneficiaries under the settlor's will; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c112/scB/s112.037/B">
<num value="B">(B)</num>
<content>in the absence of an effective provision in a will, the settlor's heirs.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scB/s112.037/f">
<num value="f">(f)</num>
<chapeau>For purposes of Section 112.036, the lives in being used to determine the maximum duration of a trust authorized by this section are:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c112/scB/s112.037/1">
<num value="1">(1)</num>
<content>the individual beneficiaries of the trust;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scB/s112.037/2">
<num value="2">(2)</num>
<content>the individuals named in the instrument creating the trust; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scB/s112.037/3">
<num value="3">(3)</num>
<content>if the settlor or settlors are living at the time the trust becomes irrevocable, the settlor or settlors of the trust or, if the settlor or settlors are not living at the time the trust becomes irrevocable, the individuals who would inherit the settlor or settlors' property under the law of this state had the settlor or settlors died intestate at the time the trust becomes irrevocable.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 6, eff. January 1, 2006.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scB/s112.038">
<num value="112.038">Sec. 112.038.</num>
<heading>FORFEITURE CLAUSE</heading>
<subsection identifier="/us/tx/pr/t9/c112/scB/s112.038/a">
<num value="a">(a)</num>
<chapeau>A provision in a trust that would cause a forfeiture of or void an interest for bringing any court action, including contesting a trust, is enforceable unless in a court action determining whether the forfeiture clause should be enforced, the person who brought the action contrary to the forfeiture clause establishes by a preponderance of the evidence that:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c112/scB/s112.038/1">
<num value="1">(1)</num>
<content>just cause existed for bringing the action; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scB/s112.038/2">
<num value="2">(2)</num>
<content>the action was brought and maintained in good faith.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scB/s112.038/b">
<num value="b">(b)</num>
<content>This section is not intended to and does not repeal any law, recognizing that forfeiture clauses generally will not be construed to prevent a beneficiary from seeking to compel a fiduciary to perform the fiduciary's duties, seeking redress against a fiduciary for a breach of the fiduciary's duties, or seeking a judicial construction of a will or trust.</content>
</subsection>
<sourceCredit>Added by Acts 2009, 81st Leg., R.S., Ch. 414 (H.B. 1969), Sec. 3, eff. June 19, 2009.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 657 (S.B. 1197), Sec. 2, eff. September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 351 (H.B. 2380), Sec. 3.01, eff. September 1, 2013.
Acts 2017, 85th Leg., R.S., Ch. 62 (S.B. 617), Sec. 3, eff. September 1, 2017.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t9/c112/scC">
<num value="C">SUBCHAPTER C.</num>
<heading>REVOCATION, MODIFICATION, AND TERMINATION OF TRUSTS</heading>
<section identifier="/us/tx/pr/t9/c112/scC/s112.051">
<num value="112.051">Sec. 112.051.</num>
<heading>REVOCATION, MODIFICATION, OR AMENDMENT BY SETTLOR</heading>
<subsection identifier="/us/tx/pr/t9/c112/scC/s112.051/a">
<num value="a">(a)</num>
<content>A settlor may revoke the trust unless it is irrevocable by the express terms of the instrument creating it or of an instrument modifying it.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scC/s112.051/b">
<num value="b">(b)</num>
<content>The settlor may modify or amend a trust that is revocable, but the settlor may not enlarge the duties of the trustee without the trustee's express consent.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scC/s112.051/c">
<num value="c">(c)</num>
<content>If the trust was created by a written instrument, a revocation, modification, or amendment of the trust must be in writing.</content>
</subsection>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scC/s112.052">
<num value="112.052">Sec. 112.052.</num>
<heading>TERMINATION</heading>
<content>A trust terminates if by its terms the trust is to continue only until the expiration of a certain period or until the happening of a certain event and the period of time has elapsed or the event has occurred. If an event of termination occurs, the trustee may continue to exercise the powers of the trustee for the reasonable period of time required to wind up the affairs of the trust and to make distribution of its assets to the appropriate beneficiaries. The continued exercise of the trustee's powers after an event of termination does not affect the vested rights of beneficiaries of the trust.</content>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scC/s112.053">
<num value="112.053">Sec. 112.053.</num>
<heading>DISPOSITION OF TRUST PROPERTY ON FAILURE OF TRUST</heading>
<content>The settlor may provide in the trust instrument how property may or may not be disposed of in the event of failure, termination, or revocation of the trust.</content>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984. Amended by Acts 1991, 72nd Leg., ch. 895, Sec. 17, eff. Sept. 1, 1991.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scC/s112.054">
<num value="112.054">Sec. 112.054.</num>
<heading>JUDICIAL MODIFICATION, REFORMATION, OR TERMINATION OF TRUSTS</heading>
<subsection identifier="/us/tx/pr/t9/c112/scC/s112.054/a">
<num value="a">(a)</num>
<chapeau>On the petition of a trustee or a beneficiary, a court may order that the trustee be changed, that the terms of the trust be modified, that the trustee be directed or permitted to do acts that are not authorized or that are forbidden by the terms of the trust, that the trustee be prohibited from performing acts required by the terms of the trust, or that the trust be terminated in whole or in part, if:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c112/scC/s112.054/1">
<num value="1">(1)</num>
<content>the purposes of the trust have been fulfilled or have become illegal or impossible to fulfill;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scC/s112.054/2">
<num value="2">(2)</num>
<content>because of circumstances not known to or anticipated by the settlor, the order will further the purposes of the trust;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scC/s112.054/3">
<num value="3">(3)</num>
<content>modification of administrative, nondispositive terms of the trust is necessary or appropriate to prevent waste or impairment of the trust's administration;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scC/s112.054/4">
<num value="4">(4)</num>
<content>the order is necessary or appropriate to achieve the settlor's tax objectives or to qualify a distributee for governmental benefits and is not contrary to the settlor's intentions; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scC/s112.054/5">
<num value="5">(5)</num>
<chapeau>subject to Subsection (d):</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c112/scC/s112.054/A">
<num value="A">(A)</num>
<content>continuance of the trust is not necessary to achieve any material purpose of the trust; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c112/scC/s112.054/B">
<num value="B">(B)</num>
<content>the order is not inconsistent with a material purpose of the trust.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scC/s112.054/b">
<num value="b">(b)</num>
<content>The court shall exercise its discretion to order a modification or termination under Subsection (a) or reformation under Subsection (b-1) in the manner that conforms as nearly as possible to the probable intention of the settlor. The court shall consider spendthrift provisions as a factor in making its decision whether to modify, terminate, or reform, but the court is not precluded from exercising its discretion to modify, terminate, or reform solely because the trust is a spendthrift trust.</content>
<continuation>(b-1) On the petition of a trustee or a beneficiary, a court may order that the terms of the trust be reformed if:</continuation>
<paragraph identifier="/us/tx/pr/t9/c112/scC/s112.054/1">
<num value="1">(1)</num>
<content>reformation of administrative, nondispositive terms of the trust is necessary or appropriate to prevent waste or impairment of the trust's administration;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scC/s112.054/2">
<num value="2">(2)</num>
<content>reformation is necessary or appropriate to achieve the settlor's tax objectives or to qualify a distributee for governmental benefits and is not contrary to the settlor's intentions; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scC/s112.054/3">
<num value="3">(3)</num>
<content>reformation is necessary to correct a scrivener's error in the governing document, even if unambiguous, to conform the terms to the settlor's intent.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scC/s112.054/c">
<num value="c">(c)</num>
<content>The court may direct that an order described by Subsection (a)(4) has retroactive effect. The reformation of a trust under an order described by Subsection (b-1) is effective as of the creation of the trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scC/s112.054/d">
<num value="d">(d)</num>
<content>The court may not take the action permitted by Subsection (a)(5) unless all beneficiaries of the trust have consented to the order or are deemed to have consented to the order. A minor, incapacitated, unborn, or unascertained beneficiary is deemed to have consented if a person representing the beneficiary's interest under Section 115.013(c) has consented or if a guardian ad litem appointed to represent the beneficiary's interest under Section 115.014 consents on the beneficiary's behalf.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scC/s112.054/e">
<num value="e">(e)</num>
<content>An order described by Subsection (b-1)(3) may be issued only if the settlor's intent is established by clear and convincing evidence.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scC/s112.054/f">
<num value="f">(f)</num>
<content>Subsection (b-1) is not intended to state the exclusive basis for reformation of trusts, and the bases for reformation of trusts in equity or common law are not affected by this section.</content>
</subsection>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984. Amended by Acts 1985, 69th Leg., ch. 149, Sec. 1, eff. May 24, 1985.
Amended by:
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 7, eff. January 1, 2006.
Acts 2017, 85th Leg., R.S., Ch. 62 (S.B. 617), Sec. 4, eff. September 1, 2017.
Acts 2017, 85th Leg., R.S., Ch. 62 (S.B. 617), Sec. 5, eff. September 1, 2017.
Acts 2019, 86th Leg., R.S., Ch. 1112 (H.B. 2245), Sec. 3, eff. September 1, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scC/s112.055">
<num value="112.055">Sec. 112.055.</num>
<heading>AMENDMENT OF CHARITABLE TRUSTS BY OPERATION OF LAW</heading>
<subsection identifier="/us/tx/pr/t9/c112/scC/s112.055/a">
<num value="a">(a)</num>
<chapeau>Except as provided by Section 112.056 and Subsection (b) of this section, the governing instrument of a trust that is a private foundation under Section 509, Internal Revenue Code, as amended, a nonexempt charitable trust that is treated as a private foundation under Section 4947(a)(1), Internal Revenue Code, as amended, or, to the extent that Section 508(e), Internal Revenue Code, is applicable to it, a nonexempt split-interest trust under Section 4947(a)(2), Internal Revenue Code, as amended, is considered to contain provisions stating that the trust:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c112/scC/s112.055/1">
<num value="1">(1)</num>
<content>shall make distributions at times and in a manner as not to subject the trust to tax under Section 4942, Internal Revenue Code;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scC/s112.055/2">
<num value="2">(2)</num>
<content>may not engage in an act of self-dealing that would be subject to tax under Section 4941, Internal Revenue Code;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scC/s112.055/3">
<num value="3">(3)</num>
<content>may not retain excess business holdings that would subject it to tax under Section 4943, Internal Revenue Code;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scC/s112.055/4">
<num value="4">(4)</num>
<content>may not make an investment that would subject it to tax under Section 4944, Internal Revenue Code; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scC/s112.055/5">
<num value="5">(5)</num>
<content>may not make a taxable expenditure that would subject it to tax under Section 4945, Internal Revenue Code.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scC/s112.055/b">
<num value="b">(b)</num>
<content>If a trust was created before January 1, 1970, this section applies to it only for its taxable years that begin on or after January 1, 1972.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scC/s112.055/c">
<num value="c">(c)</num>
<content>This section applies regardless of any provision in a trust's governing instrument and regardless of any other law of this state, including the provisions of this title.</content>
</subsection>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scC/s112.056">
<num value="112.056">Sec. 112.056.</num>
<heading>PERMISSIVE AMENDMENT BY TRUSTEE OF CHARITABLE TRUST</heading>
<subsection identifier="/us/tx/pr/t9/c112/scC/s112.056/a">
<num value="a">(a)</num>
<content>If the settlor of a trust that is described under Subsection (a) of Section 112.055 of this Act is living and competent and consents, the trustee may, without judicial proceedings, amend the trust to expressly include or exclude the provisions required by Subsection (a) of Section 112.055 of this Act.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scC/s112.056/b">
<num value="b">(b)</num>
<content>The amendment must be in writing, and it is effective when a duplicate original is filed with the attorney general's office.</content>
</subsection>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scC/s112.057">
<num value="112.057">Sec. 112.057.</num>
<heading>DIVISION AND COMBINATION OF TRUSTS</heading>
<subsection identifier="/us/tx/pr/t9/c112/scC/s112.057/a">
<num value="a">(a)</num>
<chapeau>The trustee may, unless expressly prohibited by the terms of the instrument establishing the trust, divide a trust into two or more separate trusts without a judicial proceeding if the result does not impair the rights of any beneficiary or adversely affect achievement of the purposes of the original trust. The trustee may make a division under this subsection by:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c112/scC/s112.057/1">
<num value="1">(1)</num>
<content>giving written notice of the division, not later than the 30th day before the date of a division under this subsection, to each beneficiary who might then be entitled to receive distributions from the trust or may be entitled to receive distributions from the trust once it is funded; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scC/s112.057/2">
<num value="2">(2)</num>
<content>executing a written instrument, acknowledged before a notary public or other person authorized to take acknowledgements of conveyances of real estate stating that the trust has been divided pursuant to this section and that the notice requirements of this subsection have been satisfied.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scC/s112.057/b">
<num value="b">(b)</num>
<content>A trustee, in the written instrument dividing a trust, shall allocate trust property among the separate trusts on a fractional basis, by identifying the assets and liabilities passing to each separate trust, or in any other reasonable manner. The trustee shall allocate undesignated trust property received after the trustee has divided the trust into separate trusts in the manner provided by the written instrument dividing the trust or, in the absence of a provision in the written instrument, in a manner determined by the trustee.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scC/s112.057/c">
<num value="c">(c)</num>
<chapeau>The trustee may, unless expressly prohibited by the terms of the instrument establishing a trust, combine two or more trusts into a single trust without a judicial proceeding if the result does not impair the rights of any beneficiary or adversely affect achievement of the purposes of one of the separate trusts. The trustee shall complete the trust combination by:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c112/scC/s112.057/1">
<num value="1">(1)</num>
<content>giving a written notice of the combination, not later than the 30th day before the effective date of the combination, to each beneficiary who might then be entitled to receive distributions from the separate trusts being combined or to each beneficiary who might be entitled to receive distributions from the separate trusts once the trusts are funded; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scC/s112.057/2">
<num value="2">(2)</num>
<content>executing a written instrument, acknowledged before a notary public or other person authorized to take acknowledgments of conveyances of real estate stating that the trust has been combined pursuant to this section and that the notice requirements of this subsection have been satisfied.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scC/s112.057/d">
<num value="d">(d)</num>
<content>The trustee may divide or combine a testamentary trust after the will establishing the trust has been admitted to probate, even if the trust will not be funded until a later date. The trustee may divide or combine any other trust before it is funded.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scC/s112.057/e">
<num value="e">(e)</num>
<content>A beneficiary to whom written notice is required to be given under this section may waive the notice requirement in a writing delivered to the trustee. If all beneficiaries to whom notice would otherwise be required to be given under this section waive the notice requirement, notice is not required.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scC/s112.057/f">
<num value="f">(f)</num>
<content>Notice required under this section shall be given to a guardian of the estate, guardian ad litem, or parent of a minor or incapacitated beneficiary. A guardian of the estate, guardian ad litem, or parent of a minor or incapacitated beneficiary may waive the notice requirement in accordance with this section on behalf of the minor or incapacitated beneficiary.</content>
</subsection>
<sourceCredit>Added by Acts 1991, 72nd Leg., ch. 895, Sec. 18, eff. Sept. 1, 1991.
Amended by:
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 8, eff. January 1, 2006.
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 9, eff. January 1, 2006.
Acts 2011, 82nd Leg., R.S., Ch. 657 (S.B. 1197), Sec. 3, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scC/s112.058">
<num value="112.058">Sec. 112.058.</num>
<heading>CONVERSION OF COMMUNITY TRUST TO NONPROFIT CORPORATION</heading>
<subsection identifier="/us/tx/pr/t9/c112/scC/s112.058/a">
<num value="a">(a)</num>
<chapeau>In this section:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c112/scC/s112.058/1">
<num value="1">(1)</num>
<content>"Assets" means the assets of the component trust funds of a community trust.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scC/s112.058/2">
<num value="2">(2)</num>
<content>"Community trust" means a community trust as described by 26 C.F.R. Section 1.170A-9 (2008), including subsequent amendments.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scC/s112.058/b">
<num value="b">(b)</num>
<content>A community trust with court approval may transfer the assets of the trust to a nonprofit corporation and terminate the trust as provided by this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scC/s112.058/c">
<num value="c">(c)</num>
<content>The community trust may transfer assets of the trust to a nonprofit corporation only if the nonprofit corporation is organized under the Texas Nonprofit Corporation Law, as described by Section 1.008(d), Business Organizations Code, and organized for the same purpose as the community trust. The charter of the nonprofit corporation must describe the purpose of the corporation and the proposed use of the assets transferred using language substantially similar to the language used in the instrument creating the community trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scC/s112.058/d">
<num value="d">(d)</num>
<chapeau>To transfer the assets of and terminate a community trust under this section, the governing body of the community trust must:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c112/scC/s112.058/1">
<num value="1">(1)</num>
<chapeau>file a petition in a probate court, county court, or district court requesting:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c112/scC/s112.058/A">
<num value="A">(A)</num>
<content>the transfer of the assets of the trust to a nonprofit corporation established for the purpose of receiving and administering the assets of the trust; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c112/scC/s112.058/B">
<num value="B">(B)</num>
<content>the termination of the trust;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scC/s112.058/2">
<num value="2">(2)</num>
<content>send by first class mail to each trust settlor and each trustee of each component trust of the community trust who can be located by the exercise of reasonable diligence a copy of the governing body's petition and a notice specifying the time and place of the court-scheduled hearing on the petition; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scC/s112.058/3">
<num value="3">(3)</num>
<content>publish once in a newspaper of general circulation in the county in which the proceeding is pending a notice that reads substantially similar to the following:</content>
</paragraph>
</subsection>
<sourceCredit>TO ALL INTERESTED PERSONS:
(NAME OF COMMUNITY TRUST) HAS FILED A PETITION IN (NAME OF COURT) OF (NAME OF COUNTY), TEXAS, REQUESTING PERMISSION TO CONVERT TO A NONPROFIT CORPORATION. IF PERMITTED TO CONVERT:
(1) THE (NAME OF COMMUNITY TRUST) WILL BE TERMINATED; AND
(2) THE ASSETS OF THE TRUST WILL BE:
(A) TRANSFERRED TO A NONPROFIT CORPORATION WITH THE SAME NAME AND CREATED FOR THE SAME PURPOSE AS THE (NAME OF COMMUNITY TRUST); AND
(B) HELD AND ADMINISTERED BY THE CORPORATION AS PROVIDED BY THE TEXAS NONPROFIT CORPORATION LAW.
THE PURPOSE OF THE CONVERSION IS TO ACHIEVE SAVINGS AND USE THE MONEY SAVED TO FURTHER THE PURPOSES FOR WHICH THE (NAME OF COMMUNITY TRUST) WAS CREATED.
A HEARING ON THE PETITION IS SCHEDULED ON (DATE AND TIME) AT (LOCATION OF COURT).
FOR ADDITIONAL INFORMATION, YOU MAY CONTACT THE GOVERNING BODY OF THE (NAME OF COMMUNITY TRUST) AT (ADDRESS AND TELEPHONE NUMBER) OR THE COURT.
(e) The court shall schedule a hearing on the petition to be held after the 10th day after the date the notices required by Subsection (d)(2) are deposited in the mail or the date the notice required by Subsection (d)(3) is published, whichever is later. The hearing must be held at the time and place stated in the notices unless the court, for good cause, postpones the hearing. If the hearing is postponed, a notice of the rescheduled hearing date and time must be posted at the courthouse of the county in which the proceeding is pending or at the place in or near the courthouse where public notices are customarily posted.
(f) The court, on a request from the governing body of the community trust, may by order require approval from the Internal Revenue Service for an asset transfer under this section. If the court orders approval from the Internal Revenue Service, the asset transfer may occur on the date the governing body of the community trust files a notice with the court indicating that the Internal Revenue Service has approved the asset transfer. The notice required by this subsection must be filed on or before the first anniversary of the date the court's order approving the asset transfer is signed. If the notice is not filed within the period prescribed by this subsection, the court's order is dissolved.
(g) A court order transferring the assets of and terminating a community trust must provide that the duties of each trustee of each component trust fund of the community trust are terminated on the date the assets are transferred. This subsection does not affect the liability of a trustee for acts or omissions that occurred before the duties of the trustee are terminated.
Added by Acts 1999, 76th Leg., ch. 1035, Sec. 1, eff. Sept. 1, 1999.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 62 (S.B. 617), Sec. 6, eff. September 1, 2017.
Acts 2023, 88th Leg., R.S., Ch. 291 (S.B. 1768), Sec. 8, eff. May 29, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scC/s112.059">
<num value="112.059">Sec. 112.059.</num>
<heading>TERMINATION OF UNECONOMIC TRUST</heading>
<subsection identifier="/us/tx/pr/t9/c112/scC/s112.059/a">
<num value="a">(a)</num>
<content>After notice to beneficiaries who are distributees or permissible distributees of trust income or principal or who would be distributees or permissible distributees if the interests of the distributees or the trust were to terminate and no powers of appointment were exercised, the trustee of a trust consisting of trust property having a total value of less than $50,000 may terminate the trust if the trustee concludes after considering the purpose of the trust and the nature of the trust assets that the value of the trust property is insufficient to justify the continued cost of administration.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scC/s112.059/b">
<num value="b">(b)</num>
<content>On termination of a trust under this section, the trustee shall distribute the trust property in a manner consistent with the purposes of the trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scC/s112.059/c">
<num value="c">(c)</num>
<content>A trustee may not exercise a power described by Subsection (a) if the trustee's possession of the power would cause the assets of the trust to be included in the trustee's estate for federal estate tax purposes.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scC/s112.059/d">
<num value="d">(d)</num>
<content>This section does not apply to an easement for conservation or preservation.</content>
</subsection>
<sourceCredit>Added by Acts 2007, 80th Leg., R.S., Ch. 451 (H.B. 564), Sec. 5, eff. September 1, 2007.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t9/c112/scD">
<num value="D">SUBCHAPTER D.</num>
<heading>DISTRIBUTION OF TRUST PRINCIPAL IN FURTHER TRUST</heading>
<section identifier="/us/tx/pr/t9/c112/scD/s112.071">
<num value="112.071">Sec. 112.071.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this subchapter:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.071/1">
<num value="1">(1)</num>
<content>"Authorized trustee" means a person, other than the settlor, who has authority under the terms of a first trust to distribute the principal of the trust to or for the benefit of one or more current beneficiaries.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.071/2">
<num value="2">(2)</num>
<content>"Charity" means a charitable entity or a charitable trust, as those terms are defined by Section 123.001.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.071/3">
<num value="3">(3)</num>
<content>"Current beneficiary," with respect to a particular date, means a person who is receiving or is eligible to receive a distribution of income or principal from a trust on that date.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.071/4">
<num value="4">(4)</num>
<content>"First trust" means an existing irrevocable inter vivos or testamentary trust all or part of the principal of which is distributed in further trust under Section 112.072 or 112.073.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.071/5">
<num value="5">(5)</num>
<content>"Full discretion" means a power to distribute principal to or for the benefit of one or more of the beneficiaries of a trust that is not a trust with limited discretion.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.071/6">
<num value="6">(6)</num>
<chapeau>"Limited discretion" means:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c112/scD/s112.071/A">
<num value="A">(A)</num>
<content>a power to distribute principal according to mandatory distribution provisions under which the trustee has no discretion; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c112/scD/s112.071/B">
<num value="B">(B)</num>
<content>a power to distribute principal to or for the benefit of one or more beneficiaries of a trust that is limited by an ascertainable standard, including the health, education, support, or maintenance of the beneficiary.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.071/7">
<num value="7">(7)</num>
<chapeau>"Presumptive remainder beneficiary," with respect to a particular date, means a beneficiary of a trust on that date who, in the absence of notice to the trustee of the exercise of the power of appointment and assuming that any other powers of appointment under the trust are not exercised, would be eligible to receive a distribution from the trust if:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c112/scD/s112.071/A">
<num value="A">(A)</num>
<content>the trust terminated on that date; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c112/scD/s112.071/B">
<num value="B">(B)</num>
<content>the interests of all current beneficiaries ended on that date without causing the trust to terminate.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.071/8">
<num value="8">(8)</num>
<content>"Principal" means property held in trust for distribution to a remainder beneficiary when the trust terminates and includes income of the trust that, at the time of the exercise of a power of distribution under Section 112.072 or 112.073, is not currently required to be distributed.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.071/9">
<num value="9">(9)</num>
<content>"Second trust" means any irrevocable trust to which principal is distributed under Section 112.072 or 112.073.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.071/10">
<num value="10">(10)</num>
<content>"Successor beneficiary" means a beneficiary other than a current or presumptive remainder beneficiary. The term does not include a potential appointee under a power of appointment held by a beneficiary.</content>
</paragraph>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 3, eff. September 1, 2013.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 62 (S.B. 617), Sec. 7, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scD/s112.0715">
<num value="112.0715">Sec. 112.0715.</num>
<heading>CREATION OF SECOND TRUST</heading>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.0715/a">
<num value="a">(a)</num>
<content>A second trust may be created by a distribution of principal under Section 112.072 or 112.073 to a second trust that retains the name used by the first trust. The second trust may retain, subject to applicable federal law, the tax identification number of the first trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.0715/b">
<num value="b">(b)</num>
<content>If a second trust is created by a distribution of principal under Section 112.072 or 112.073 to a trust that retains the name of the first trust, the property is not required to be retitled.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.0715/c">
<num value="c">(c)</num>
<content>Repealed by Acts 2023, 88th Leg., R.S., Ch. 446 (H.B. 2196), Sec. 6, eff. June 9, 2023.</content>
</subsection>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 1112 (H.B. 2245), Sec. 4, eff. September 1, 2019.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 446 (H.B. 2196), Sec. 4, eff. June 9, 2023.
Acts 2023, 88th Leg., R.S., Ch. 446 (H.B. 2196), Sec. 6, eff. June 9, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scD/s112.072">
<num value="112.072">Sec. 112.072.</num>
<heading>DISTRIBUTION TO SECOND TRUST: TRUSTEE WITH FULL DISCRETION</heading>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.072/a">
<num value="a">(a)</num>
<content>An authorized trustee who has the full discretion to distribute the principal of a trust may distribute all or part of the principal of that trust in favor of a trustee of a second trust for the benefit of one, more than one, or all of the current beneficiaries of the first trust and for the benefit of one, more than one, or all of the successor or presumptive remainder beneficiaries of the first trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.072/b">
<num value="b">(b)</num>
<content>The authorized trustee may, in connection with the exercise of a power of distribution under this section, grant a power of appointment, including a currently exercisable power of appointment, in the second trust to one or more of the current beneficiaries of the first trust who, at the time the power of appointment is granted, is eligible to receive the principal outright under the terms of the first trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.072/c">
<num value="c">(c)</num>
<content>If the authorized trustee grants a power of appointment to a beneficiary under Subsection (b), the class of permissible appointees in whose favor the beneficiary may appoint under that power may be broader or different than the current, successor, and presumptive remainder beneficiaries of the first trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.072/d">
<num value="d">(d)</num>
<content>If the beneficiaries of the first trust are described as a class of persons, the beneficiaries of the second trust may include one or more persons who become members of that class after the distribution to the second trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.072/e">
<num value="e">(e)</num>
<content>The authorized trustee shall exercise a power to distribute under this section in good faith, in accordance with the terms and purposes of the trust, and in the interests of the beneficiaries.</content>
</subsection>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 3, eff. September 1, 2013.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 62 (S.B. 617), Sec. 8, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scD/s112.073">
<num value="112.073">Sec. 112.073.</num>
<heading>DISTRIBUTION TO SECOND TRUST: TRUSTEE WITH LIMITED DISCRETION</heading>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.073/a">
<num value="a">(a)</num>
<content>An authorized trustee who has limited discretion to distribute the principal of a trust may distribute all or part of the principal of that trust in favor of a trustee of a second trust as provided by this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.073/b">
<num value="b">(b)</num>
<content>The current beneficiaries of the second trust must be the same as the current beneficiaries of the first trust, and the successor and presumptive remainder beneficiaries of the second trust must be the same as the successor and presumptive remainder beneficiaries of the first trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.073/c">
<num value="c">(c)</num>
<content>The second trust must include the same language authorizing the trustee to distribute the income or principal of the trust that was included in the first trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.073/d">
<num value="d">(d)</num>
<content>If the beneficiaries of the first trust are described as a class of persons, the beneficiaries of the second trust must include all persons who become members of that class after the distribution to the second trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.073/e">
<num value="e">(e)</num>
<content>If the first trust grants a power of appointment to a beneficiary of the trust, the second trust must grant the power of appointment to the beneficiary in the second trust, and the class of permissible appointees under that power must be the same as the class of permissible appointees under the power granted by the first trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.073/f">
<num value="f">(f)</num>
<content>The authorized trustee shall exercise a power of distribution under this section in good faith, in accordance with the terms and purposes of the trust, and in the interests of the beneficiaries.</content>
</subsection>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 3, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scD/s112.074">
<num value="112.074">Sec. 112.074.</num>
<heading>NOTICE REQUIRED</heading>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.074/a">
<num value="a">(a)</num>
<content>An authorized trustee may exercise a power of distribution under Section 112.072 or 112.073 without the consent of the settlor or beneficiaries of the first trust and without court approval if the trustee provides to all of the current beneficiaries and presumptive remainder beneficiaries written notice of the trustee's decision to exercise the power.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.074/b">
<num value="b">(b)</num>
<content>For the purpose of determining who is a current beneficiary or presumptive remainder beneficiary entitled to the notice, a beneficiary is determined as of the date the notice is sent. A beneficiary includes a person entitled to receive property under the terms of the first trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.074/c">
<num value="c">(c)</num>
<chapeau>Except as provided by Subsection (e-1), in addition to the notice required under Subsection (a), the authorized trustee shall give written notice of the trustee's decision to the attorney general if:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.074/1">
<num value="1">(1)</num>
<content>a charity is entitled to notice;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.074/2">
<num value="2">(2)</num>
<content>a charity entitled to notice is no longer in existence;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.074/3">
<num value="3">(3)</num>
<content>the trustee has the authority to distribute trust assets to one or more charities that are not named in the trust instrument; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.074/4">
<num value="4">(4)</num>
<content>the trustee has the authority to make distributions for a charitable purpose described in the trust instrument, but no charity is named as a beneficiary for that purpose.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.074/d">
<num value="d">(d)</num>
<content>If the beneficiary has a court-appointed guardian or conservator, the notice required to be given by this section must be given to that guardian or conservator. If the beneficiary is a minor for whom no guardian or conservator has been appointed, the notice required to be given by this section must be given to a parent of the minor.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.074/e">
<num value="e">(e)</num>
<chapeau>The authorized trustee is not required to provide the notice to a beneficiary who:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.074/1">
<num value="1">(1)</num>
<content>is known to the trustee and cannot be located by the trustee after reasonable diligence;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.074/2">
<num value="2">(2)</num>
<content>is not known to the trustee;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.074/3">
<num value="3">(3)</num>
<content>waives the requirement of the notice under this section; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.074/4">
<num value="4">(4)</num>
<content>is a descendant of a beneficiary to whom the trustee has given notice if the beneficiary and the beneficiary's ancestor have similar interests in the trust and no apparent conflict of interest exists between them.</content>
<continuation>(e-1) The trustee is not required to give notice to the attorney general under Subsection (c) if the attorney general waives that requirement in writing.</continuation>
<continuation>(e-2) For purposes of Subsection (e)(3), a beneficiary is considered to have waived the requirement that notice be given under this section if a person to whom notice is required to be given with respect to that beneficiary under Subsection (d) waives the requirement that notice be given under this section.</continuation>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.074/f">
<num value="f">(f)</num>
<chapeau>The notice required under Subsection (a) must:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.074/1">
<num value="1">(1)</num>
<chapeau>include a statement that:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c112/scD/s112.074/A">
<num value="A">(A)</num>
<content>the authorized trustee intends to exercise the power of distribution;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c112/scD/s112.074/B">
<num value="B">(B)</num>
<content>the beneficiary has the right to object to the exercise of the power; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c112/scD/s112.074/C">
<num value="C">(C)</num>
<content>the beneficiary may petition a court to approve, modify, or deny the exercise of the trustee's power to make a distribution under this subchapter;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.074/2">
<num value="2">(2)</num>
<content>describe the manner in which the trustee intends to exercise the power;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.074/3">
<num value="3">(3)</num>
<content>specify the date the trustee proposes to distribute the first trust to the second trust;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.074/4">
<num value="4">(4)</num>
<content>include the name and mailing address of the trustee;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.074/5">
<num value="5">(5)</num>
<content>include copies of the agreements of the first trust and the proposed second trust;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.074/6">
<num value="6">(6)</num>
<content>be given not later than the 30th day before the proposed date of distribution to the second trust; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.074/7">
<num value="7">(7)</num>
<content>be sent by registered or certified mail, return receipt requested, or delivered in person, unless the notice is waived in writing by the person to whom notice is required to be given.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 3, eff. September 1, 2013.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 62 (S.B. 617), Sec. 9, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scD/s112.075">
<num value="112.075">Sec. 112.075.</num>
<heading>WRITTEN INSTRUMENT REQUIRED</heading>
<content>A distribution under Section 112.072 or 112.073 must be made by a written instrument that is signed and acknowledged by the authorized trustee and filed with the records of the first trust and the second trust.</content>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 3, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scD/s112.076">
<num value="112.076">Sec. 112.076.</num>
<heading>REFERENCE TO TRUST TERMS</heading>
<content>A reference to the governing instrument or terms of the governing instrument of a trust includes the terms of a second trust to which that trust's principal was distributed under this subchapter.</content>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 3, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scD/s112.077">
<num value="112.077">Sec. 112.077.</num>
<heading>SETTLOR OF SECOND TRUST</heading>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.077/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (b), the settlor of a first trust is considered to be the settlor of a second trust established under this subchapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.077/b">
<num value="b">(b)</num>
<content>If a settlor of a first trust is not also the settlor of a second trust into which principal of that first trust is distributed, the settlor of the first trust is considered the settlor of the portion of the second trust distributed to the second trust from that first trust under this subchapter.</content>
</subsection>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 3, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scD/s112.078">
<num value="112.078">Sec. 112.078.</num>
<heading>COURT-ORDERED DISTRIBUTION</heading>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.078/a">
<num value="a">(a)</num>
<content>An authorized trustee may petition a court to order a distribution under this subchapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.078/b">
<num value="b">(b)</num>
<content>If the authorized trustee receives a written objection to a distribution under this subchapter from a beneficiary before the proposed effective date of the distribution specified in the notice provided to the beneficiary under Section 112.074, the trustee or the beneficiary may petition a court to approve, modify, or deny the exercise of the trustee's power to make a distribution under this subchapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.078/c">
<num value="c">(c)</num>
<content>If the authorized trustee receives a written objection to the distribution from the attorney general not later than the 30th day after the date the notice required by Section 112.074 was received by the attorney general, the trustee may not make a distribution under Section 112.072 or 112.073 without petitioning a court to approve or modify the exercise of the trustee's power to make a distribution under this subchapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.078/d">
<num value="d">(d)</num>
<content>In a judicial proceeding under this section, the authorized trustee may present the trustee's reasons for supporting or opposing a proposed distribution, including whether the trustee believes the distribution would enable the trustee to better carry out the purposes of the trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.078/e">
<num value="e">(e)</num>
<content>The authorized trustee has the burden of proving that the proposed distribution furthers the purposes of the trust, is in accordance with the terms of the trust, and is in the interests of the beneficiaries.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.078/f">
<num value="f">(f)</num>
<content>This section does not limit a beneficiary's right to bring an action against a trustee for a breach of trust.</content>
</subsection>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 3, eff. September 1, 2013.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 62 (S.B. 617), Sec. 10, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scD/s112.079">
<num value="112.079">Sec. 112.079.</num>
<heading>DIVIDED DISCRETION</heading>
<content>If an authorized trustee has full discretion to distribute the principal of a trust and another trustee has limited discretion to distribute principal under the trust instrument, the authorized trustee having full discretion may exercise the power to distribute the trust's principal under Section 112.072.</content>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 3, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scD/s112.080">
<num value="112.080">Sec. 112.080.</num>
<heading>LATER DISCOVERED ASSETS</heading>
<chapeau>To the extent the authorized trustee does not provide otherwise:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.080/1">
<num value="1">(1)</num>
<content>the distribution of all of the principal of a first trust to a second trust includes subsequently discovered assets otherwise belonging to the first trust and principal paid to or acquired by the first trust after the distribution of the first trust's principal to the second trust; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.080/2">
<num value="2">(2)</num>
<content>the distribution of part of the principal of a first trust to a second trust does not include subsequently discovered assets belonging to the first trust or principal paid to or acquired by the first trust after the distribution of principal from the first trust to the second trust, and those assets or that principal remain the assets or principal of the first trust.</content>
</paragraph>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 3, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scD/s112.081">
<num value="112.081">Sec. 112.081.</num>
<heading>OTHER AUTHORITY TO DISTRIBUTE IN FURTHER TRUST NOT LIMITED</heading>
<content>This subchapter may not be construed to limit the power of an authorized trustee to distribute property in further trust under the terms of the governing instrument of a trust, other law, or a court order.</content>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 3, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scD/s112.082">
<num value="112.082">Sec. 112.082.</num>
<heading>NEED FOR DISTRIBUTION NOT REQUIRED</heading>
<content>An authorized trustee may exercise the power to distribute principal to a second trust under Section 112.072 or 112.073 regardless of whether there is a current need to distribute principal under the terms of the first trust.</content>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 3, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scD/s112.083">
<num value="112.083">Sec. 112.083.</num>
<heading>DUTIES NOT CREATED</heading>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.083/a">
<num value="a">(a)</num>
<content>This subchapter does not create or imply a duty for an authorized trustee to exercise a power to distribute principal, and impropriety may not be inferred as a result of the trustee not exercising a power conferred by Section 112.072 or 112.073.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.083/b">
<num value="b">(b)</num>
<content>An authorized trustee does not have a duty to inform beneficiaries about the availability of the authority provided by this subchapter or a duty to review the trust to determine whether any action should be taken under this subchapter.</content>
</subsection>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 3, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scD/s112.084">
<num value="112.084">Sec. 112.084.</num>
<heading>CERTAIN DISTRIBUTIONS PROHIBITED</heading>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.084/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (b), an authorized trustee may not exercise a power to distribute principal of a trust otherwise provided by Section 112.072 or 112.073 if the distribution is expressly prohibited by the terms of the governing instrument of the trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.084/b">
<num value="b">(b)</num>
<content>A general prohibition of the amendment or revocation of a trust or a provision that constitutes a spendthrift clause does not preclude the exercise of a power to distribute principal of a trust under Section 112.072 or 112.073.</content>
</subsection>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 3, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scD/s112.085">
<num value="112.085">Sec. 112.085.</num>
<heading>EXCEPTIONS TO POWER OF DISTRIBUTION</heading>
<chapeau>An authorized trustee may not exercise a power to distribute principal of a trust under Section 112.072 or 112.073 to:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.085/1">
<num value="1">(1)</num>
<chapeau>reduce, limit, or modify a beneficiary's current, vested right to:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c112/scD/s112.085/A">
<num value="A">(A)</num>
<content>receive a mandatory distribution of income or principal;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c112/scD/s112.085/B">
<num value="B">(B)</num>
<content>receive a mandatory annuity or unitrust interest;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c112/scD/s112.085/C">
<num value="C">(C)</num>
<content>withdraw a percentage of the value of the trust; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c112/scD/s112.085/D">
<num value="D">(D)</num>
<content>withdraw a specified dollar amount from the trust;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.085/2">
<num value="2">(2)</num>
<chapeau>materially limit a trustee's fiduciary duty:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c112/scD/s112.085/A">
<num value="A">(A)</num>
<content>under the terms of the trust; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c112/scD/s112.085/B">
<num value="B">(B)</num>
<content>in a manner that would be prohibited by Section 111.0035;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.085/3">
<num value="3">(3)</num>
<content>decrease or indemnify against a trustee's liability;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.085/4">
<num value="4">(4)</num>
<content>add a provision exonerating a trustee from liability for failure to exercise reasonable care, diligence, and prudence;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.085/5">
<num value="5">(5)</num>
<content>eliminate a provision granting another person the right to remove or replace the authorized trustee exercising the distribution power under Section 112.072 or 112.073; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.085/6">
<num value="6">(6)</num>
<content>reduce, limit, or modify in the second trust a perpetuities provision included in the first trust, unless expressly permitted by the terms of the first trust.</content>
</paragraph>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 3, eff. September 1, 2013.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 62 (S.B. 617), Sec. 11, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scD/s112.086">
<num value="112.086">Sec. 112.086.</num>
<heading>TAX-RELATED LIMITATIONS</heading>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.086/a">
<num value="a">(a)</num>
<chapeau>The authorized trustee may not distribute the principal of a trust under Section 112.072 or 112.073 in a manner that would prevent a contribution to that trust from qualifying for or that would reduce the exclusion, deduction, or other federal tax benefit that was originally claimed for that contribution, including:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.086/1">
<num value="1">(1)</num>
<content>the annual exclusion under Section 2503(b), Internal Revenue Code of 1986;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.086/2">
<num value="2">(2)</num>
<content>a marital deduction under Section 2056(a) or 2523(a), Internal Revenue Code of 1986;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.086/3">
<num value="3">(3)</num>
<content>the charitable deduction under Section 170(a), 642(c), 2055(a), or 2522(a), Internal Revenue Code of 1986;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.086/4">
<num value="4">(4)</num>
<content>direct skip treatment under Section 2642(c), Internal Revenue Code of 1986; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scD/s112.086/5">
<num value="5">(5)</num>
<content>any other tax benefit for income, gift, estate, or generation-skipping transfer tax purposes under the Internal Revenue Code of 1986.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.086/b">
<num value="b">(b)</num>
<content>Notwithstanding Subsection (a), an authorized trustee may distribute the principal of a first trust to a second trust regardless of whether the settlor is treated as the owner of either or both trusts under Sections 671-679, Internal Revenue Code of 1986.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.086/c">
<num value="c">(c)</num>
<content>If S corporation stock is held in trust, an authorized trustee may not distribute all or part of that stock under Section 112.072 or 112.073 to a second trust that is not a permitted shareholder under Section 1361(c)(2), Internal Revenue Code of 1986.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.086/d">
<num value="d">(d)</num>
<content>If an interest in property that is subject to the minimum distribution rules of Section 401(a)(9), Internal Revenue Code of 1986, is held in trust, an authorized trustee may not distribute the trust's interest in the property to a second trust under Section 112.072 or 112.073 if the distribution would shorten the minimum distribution period applicable to the property.</content>
</subsection>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 3, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scD/s112.087">
<num value="112.087">Sec. 112.087.</num>
<heading>COMPENSATION OF TRUSTEE</heading>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.087/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (b) and unless a court, on application of the authorized trustee, directs otherwise, the trustee may not exercise a power under Section 112.072 or 112.073 solely to change trust provisions regarding the determination of the compensation of any trustee.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.087/b">
<num value="b">(b)</num>
<content>An authorized trustee, in connection with the exercise of a power under Section 112.072 or 112.073 for another valid and reasonable purpose, may bring the trustee's compensation into conformance with reasonable limits authorized by state law.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.087/c">
<num value="c">(c)</num>
<content>The compensation payable to an authorized trustee of the first trust may continue to be paid to the trustee of the second trust during the term of the second trust and may be determined in the same manner as the compensation would have been determined in the first trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scD/s112.087/d">
<num value="d">(d)</num>
<content>An authorized trustee may not receive a commission or other compensation for the distribution of a particular asset from a first trust to a second trust under Section 112.072 or 112.073.</content>
</subsection>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 3, eff. September 1, 2013.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t9/c112/scE">
<num value="E">SUBCHAPTER E.</num>
<heading>EFFECT OF DISSOLUTION OF MARRIAGE ON CERTAIN TRANSFERS IN TRUST</heading>
<section identifier="/us/tx/pr/t9/c112/scE/s112.101">
<num value="112.101">Sec. 112.101.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this subchapter:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c112/scE/s112.101/1">
<num value="1">(1)</num>
<content>"Disposition or appointment of property" includes a transfer of property to or a provision of another benefit to a beneficiary under a trust instrument.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scE/s112.101/2">
<num value="2">(2)</num>
<content>"Divorced individual" means an individual whose marriage has been dissolved by divorce, annulment, or a declaration that the marriage is void.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scE/s112.101/3">
<num value="3">(3)</num>
<content>"Relative" means an individual who is related to another individual by consanguinity or affinity, as determined under Sections 573.022 and 573.024, Government Code, respectively.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scE/s112.101/4">
<num value="4">(4)</num>
<content>"Revocable," with respect to a disposition, appointment, provision, or nomination, means a disposition to, appointment of, provision in favor of, or nomination of an individual's spouse or any relative of the individual's spouse who is not a relative of the individual that is contained in a trust instrument executed by the individual before the dissolution of the individual's marriage to the spouse and that the individual was solely empowered by law or by the trust instrument to revoke regardless of whether the individual had the capacity to exercise the power at that time.</content>
</paragraph>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 1112 (H.B. 2245), Sec. 5, eff. September 1, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scE/s112.102">
<num value="112.102">Sec. 112.102.</num>
<heading>REVOCATION OF CERTAIN NONTESTAMENTARY TRANSFERS; TREATMENT OF FORMER SPOUSE OR FORMER SPOUSE'S RELATIVE AS BENEFICIARY UNDER CERTAIN POLICIES OR PLANS</heading>
<subsection identifier="/us/tx/pr/t9/c112/scE/s112.102/a">
<num value="a">(a)</num>
<chapeau>The dissolution of the marriage revokes a provision in a trust instrument that was executed by a divorced individual as settlor before the divorced individual's marriage was dissolved and that:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c112/scE/s112.102/1">
<num value="1">(1)</num>
<content>is a revocable disposition or appointment of property made to the divorced individual's former spouse or any relative of the former spouse who is not a relative of the divorced individual;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scE/s112.102/2">
<num value="2">(2)</num>
<content>revocably confers a general or special power of appointment on the divorced individual's former spouse or any relative of the former spouse who is not a relative of the divorced individual; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scE/s112.102/3">
<num value="3">(3)</num>
<chapeau>revocably nominates the divorced individual's former spouse or any relative of the former spouse who is not a relative of the divorced individual to serve:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c112/scE/s112.102/A">
<num value="A">(A)</num>
<content>as a personal representative, trustee, conservator, agent, or guardian; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c112/scE/s112.102/B">
<num value="B">(B)</num>
<content>in another fiduciary or representative capacity.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scE/s112.102/b">
<num value="b">(b)</num>
<chapeau>Subsection (a) does not apply if one of the following provides otherwise:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c112/scE/s112.102/1">
<num value="1">(1)</num>
<content>a court order;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scE/s112.102/2">
<num value="2">(2)</num>
<content>the express terms of a trust instrument executed by the divorced individual before the individual's marriage was dissolved; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scE/s112.102/3">
<num value="3">(3)</num>
<content>an express provision of a contract relating to the division of the marital estate entered into between the divorced individual and the individual's former spouse before, during, or after the marriage.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scE/s112.102/c">
<num value="c">(c)</num>
<content>Sections 9.301 and 9.302, Family Code, govern the designation of a former spouse as a beneficiary of certain life insurance policies or as a beneficiary under certain retirement benefit plans or other financial plans.</content>
</subsection>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 1112 (H.B. 2245), Sec. 5, eff. September 1, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scE/s112.103">
<num value="112.103">Sec. 112.103.</num>
<heading>EFFECT OF REVOCATION</heading>
<subsection identifier="/us/tx/pr/t9/c112/scE/s112.103/a">
<num value="a">(a)</num>
<content>An interest granted in a provision of a trust instrument that is revoked under Section 112.102(a)(1) or (2) passes as if the former spouse of the divorced individual who executed the trust instrument and each relative of the former spouse who is not a relative of the divorced individual disclaimed the interest granted in the provision.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scE/s112.103/b">
<num value="b">(b)</num>
<content>An interest granted in a provision of a trust instrument that is revoked under Section 112.102(a)(3) passes as if the former spouse and each relative of the former spouse who is not a relative of the divorced individual died immediately before the dissolution of the marriage.</content>
</subsection>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 1112 (H.B. 2245), Sec. 5, eff. September 1, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scE/s112.104">
<num value="112.104">Sec. 112.104.</num>
<heading>LIABILITY OF CERTAIN PURCHASERS OR RECIPIENTS OF CERTAIN PAYMENTS, BENEFITS, OR PROPERTY</heading>
<chapeau>A bona fide purchaser of property from a divorced individual's former spouse or any relative of the former spouse who is not a relative of the divorced individual or a person who receives from the former spouse or any relative of the former spouse who is not a relative of the divorced individual a payment, benefit, or property in partial or full satisfaction of an enforceable obligation:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c112/scE/s112.104/1">
<num value="1">(1)</num>
<content>is not required by this subchapter to return the payment, benefit, or property; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scE/s112.104/2">
<num value="2">(2)</num>
<content>is not liable under this subchapter for the amount of the payment or the value of the property or benefit.</content>
</paragraph>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 1112 (H.B. 2245), Sec. 5, eff. September 1, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scE/s112.105">
<num value="112.105">Sec. 112.105.</num>
<heading>LIABILITY OF FORMER SPOUSE OR FORMER SPOUSE'S RELATIVE FOR CERTAIN PAYMENTS, BENEFITS, OR PROPERTY</heading>
<chapeau>A divorced individual's former spouse or any relative of the former spouse who is not a relative of the divorced individual who, not for value, receives a payment, benefit, or property to which the former spouse or the relative of the former spouse who is not a relative of the divorced individual is not entitled as a result of Sections 112.102(a) and (b):</chapeau>
<paragraph identifier="/us/tx/pr/t9/c112/scE/s112.105/1">
<num value="1">(1)</num>
<content>shall return the payment, benefit, or property to the person who is entitled to the payment, benefit, or property under this subchapter; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scE/s112.105/2">
<num value="2">(2)</num>
<content>is personally liable to the person described by Subdivision (1) for the amount of the payment or the value of the benefit or property received, as applicable.</content>
</paragraph>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 1112 (H.B. 2245), Sec. 5, eff. September 1, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scE/s112.106">
<num value="112.106">Sec. 112.106.</num>
<heading>CERTAIN TRUSTS WITH DIVORCED INDIVIDUALS AS JOINT SETTLORS</heading>
<subsection identifier="/us/tx/pr/t9/c112/scE/s112.106/a">
<num value="a">(a)</num>
<chapeau>This section applies only to a trust created under a trust instrument that:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c112/scE/s112.106/1">
<num value="1">(1)</num>
<content>was executed by two married individuals as settlors whose marriage to each other is subsequently dissolved; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scE/s112.106/2">
<num value="2">(2)</num>
<content>includes a provision described by Section 112.102(a).</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scE/s112.106/b">
<num value="b">(b)</num>
<content>On the death of one of the divorced individuals who is a settlor of a trust to which this section applies, the trustee shall divide the trust into two trusts, each of which shall be composed of the property attributable to the contributions of only one of the divorced individuals.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scE/s112.106/c">
<num value="c">(c)</num>
<content>An action authorized in a trust instrument described by Subsection (a) that requires the actions of both divorced individuals may be taken with respect to a trust established in accordance with Subsection (b) from the surviving divorced individual's contributions solely by that divorced individual.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scE/s112.106/d">
<num value="d">(d)</num>
<content>The provisions of this subchapter apply independently to each trust established in accordance with Subsection (b) as if the divorced individual from whose contributions the trust was established had been the only settlor to execute the trust instrument described by Subsection (a).</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scE/s112.106/e">
<num value="e">(e)</num>
<chapeau>This section does not apply if one of the following provides otherwise:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c112/scE/s112.106/1">
<num value="1">(1)</num>
<content>a court order;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scE/s112.106/2">
<num value="2">(2)</num>
<content>the express terms of a trust instrument executed by the two divorced individuals before their marriage was dissolved; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scE/s112.106/3">
<num value="3">(3)</num>
<content>an express provision of a contract relating to the division of the marital estate entered into between the two divorced individuals before, during, or after their marriage.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 1112 (H.B. 2245), Sec. 5, eff. September 1, 2019.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t9/c112/scF">
<num value="F">SUBCHAPTER F.</num>
<heading>NONCHARITABLE TRUST WITHOUT ASCERTAINABLE BENEFICIARY</heading>
<section identifier="/us/tx/pr/t9/c112/scF/s112.121">
<num value="112.121">Sec. 112.121.</num>
<heading>VALIDITY OF TRUST; APPLICABILITY</heading>
<subsection identifier="/us/tx/pr/t9/c112/scF/s112.121/a">
<num value="a">(a)</num>
<content>A trust may be created for a noncharitable purpose without a definite or definitely ascertainable beneficiary. A noncharitable purpose may include seeking economic or noneconomic benefits.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scF/s112.121/b">
<num value="b">(b)</num>
<content>This subchapter does not apply to a trust created under Section 112.037.</content>
</subsection>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 1121 (H.B. 2333), Sec. 2, eff. June 18, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scF/s112.122">
<num value="112.122">Sec. 112.122.</num>
<heading>ENFORCEMENT OF TRUST</heading>
<subsection identifier="/us/tx/pr/t9/c112/scF/s112.122/a">
<num value="a">(a)</num>
<content>A trust created under this subchapter must be enforced by one or more persons appointed in the terms of the trust to serve as a trust enforcer.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scF/s112.122/b">
<num value="b">(b)</num>
<content>A trust enforcer shall enforce the purpose and terms of the trust. The trust enforcer is not a beneficiary of the trust, but has the rights of a beneficiary provided under this title and the common law of this state, or as otherwise provided by the terms of the trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scF/s112.122/c">
<num value="c">(c)</num>
<content>A trust enforcer shall exercise any authority granted under the terms of the trust or the provisions of this section as a fiduciary owing a duty to the trust and is entitled to reasonable compensation for serving as trust enforcer.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scF/s112.122/d">
<num value="d">(d)</num>
<content>A trust enforcer may consent to, waive, object to, or petition an appropriate court concerning any matter regarding the purpose or administration of the trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scF/s112.122/e">
<num value="e">(e)</num>
<content>Except as otherwise provided by the terms of the trust, if more than one person is acting as a trust enforcer, any action in that capacity must be decided by the majority vote of the persons acting as trust enforcers. If there are an even number of trust enforcers and a majority vote cannot be established, the decision of the trustee controls.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scF/s112.122/f">
<num value="f">(f)</num>
<content>The terms of the trust may provide for the succession of a trust enforcer or a process of appointing any successor trust enforcer.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scF/s112.122/g">
<num value="g">(g)</num>
<content>If no person is serving as a trust enforcer for a trust created under this subchapter, a court properly exercising jurisdiction shall appoint one or more persons to serve as the trust enforcer.</content>
</subsection>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 1121 (H.B. 2333), Sec. 2, eff. June 18, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c112/scF/s112.123">
<num value="112.123">Sec. 112.123.</num>
<heading>APPLICATION OR DISTRIBUTION OF TRUST PROPERTY</heading>
<subsection identifier="/us/tx/pr/t9/c112/scF/s112.123/a">
<num value="a">(a)</num>
<content>Property of a trust created under this subchapter may be applied only to the intended purpose of the trust, except to the extent that a court finds that the value of the trust property exceeds the amount required for the intended purpose of the trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c112/scF/s112.123/b">
<num value="b">(b)</num>
<chapeau>Except as provided by the terms of the trust, property found by a court not to be required for the trust's intended purpose shall be distributed:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c112/scF/s112.123/1">
<num value="1">(1)</num>
<content>as provided by the terms of the trust; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c112/scF/s112.123/2">
<num value="2">(2)</num>
<content>if the trust does not provide for the distribution of such property, to the settlor if then living or to the settlor's successors in interest.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 1121 (H.B. 2333), Sec. 2, eff. June 18, 2023.</sourceCredit>
</section>
</subchapter>
</chapter>
<chapter identifier="/us/tx/pr/t9/c113">
<num value="113">CHAPTER 113.</num>
<heading>ADMINISTRATION</heading>
<subchapter identifier="/us/tx/pr/t9/c113/scA">
<num value="A">SUBCHAPTER A.</num>
<heading>POWERS OF TRUSTEE</heading>
<section identifier="/us/tx/pr/t9/c113/scA/s113.001">
<num value="113.001">Sec. 113.001.</num>
<heading>LIMITATION OF POWERS</heading>
<content>A power given to a trustee by this subchapter does not apply to a trust to the extent that the instrument creating the trust, a subsequent court order, or another provision of this subtitle conflicts with or limits the power.</content>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scA/s113.002">
<num value="113.002">Sec. 113.002.</num>
<heading>GENERAL POWERS</heading>
<content>Except as provided by Section 113.001, a trustee may exercise any powers in addition to the powers authorized by this subchapter that are necessary or appropriate to carry out the purposes of the trust.</content>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scA/s113.003">
<num value="113.003">Sec. 113.003.</num>
<heading>OPTIONS</heading>
<chapeau>A trustee may:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.003/1">
<num value="1">(1)</num>
<content>grant an option involving a sale, lease, or other disposition of trust property, including an option exercisable beyond the duration of the trust; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.003/2">
<num value="2">(2)</num>
<content>acquire and exercise an option for the acquisition of property, including an option exercisable beyond the duration of the trust.</content>
</paragraph>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 10, eff. January 1, 2006.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scA/s113.004">
<num value="113.004">Sec. 113.004.</num>
<heading>ADDITIONS TO TRUST ASSETS</heading>
<content>A trustee may receive from any source additions to the assets of the trust.</content>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scA/s113.005">
<num value="113.005">Sec. 113.005.</num>
<heading>ACQUISITION OF UNDIVIDED INTERESTS</heading>
<content>A trustee may acquire all or a portion of the remaining undivided interest in property in which the trust holds an undivided interest.</content>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scA/s113.006">
<num value="113.006">Sec. 113.006.</num>
<heading>GENERAL AUTHORITY TO MANAGE AND INVEST TRUST PROPERTY</heading>
<content>Subject to the requirements of Chapter 117, a trustee may manage the trust property and invest and reinvest in property of any character on the conditions and for the lengths of time as the trustee considers proper, notwithstanding that the time may extend beyond the term of the trust.</content>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984. Amended by Acts 2003, 78th Leg., ch. 1103, Sec. 3, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scA/s113.007">
<num value="113.007">Sec. 113.007.</num>
<heading>TEMPORARY DEPOSITS OF FUNDS</heading>
<content>A trustee may deposit trust funds that are being held pending investment, distribution, or the payment of debts in a bank that is subject to supervision by state or federal authorities. However, a corporate trustee depositing funds with itself is subject to the requirements of Section 113.057 of this code.</content>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984; Acts 1984, 68th Leg., 2nd C.S., ch. 18, Sec. 11, eff. Oct. 2, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scA/s113.008">
<num value="113.008">Sec. 113.008.</num>
<heading>BUSINESS ENTITIES</heading>
<content>A trustee may invest in, continue, or participate in the operation of any business or other investment enterprise in any form, including a sole proprietorship, partnership, limited partnership, corporation, or association, and the trustee may effect any change in the organization of the business or enterprise.</content>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scA/s113.009">
<num value="113.009">Sec. 113.009.</num>
<heading>REAL PROPERTY MANAGEMENT</heading>
<chapeau>A trustee may:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.009/1">
<num value="1">(1)</num>
<content>exchange, subdivide, develop, improve, or partition real property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.009/2">
<num value="2">(2)</num>
<content>make or vacate public plats;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.009/3">
<num value="3">(3)</num>
<content>adjust boundaries;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.009/4">
<num value="4">(4)</num>
<content>adjust differences in valuation by giving or receiving value;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.009/5">
<num value="5">(5)</num>
<content>dedicate real property to public use or, if the trustee considers it in the best interest of the trust, dedicate easements to public use without consideration;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.009/6">
<num value="6">(6)</num>
<content>raze existing walls or buildings;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.009/7">
<num value="7">(7)</num>
<content>erect new party walls or buildings alone or jointly with an owner of adjacent property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.009/8">
<num value="8">(8)</num>
<content>make repairs; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.009/9">
<num value="9">(9)</num>
<content>make extraordinary alterations or additions in structures as necessary to make property more productive.</content>
</paragraph>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scA/s113.010">
<num value="113.010">Sec. 113.010.</num>
<heading>SALE OF PROPERTY</heading>
<content>A trustee may contract to sell, sell and convey, or grant an option to sell real or personal property at public auction or private sale for cash or for credit or for part cash and part credit, with or without security.</content>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scA/s113.011">
<num value="113.011">Sec. 113.011.</num>
<heading>LEASES</heading>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.011/a">
<num value="a">(a)</num>
<content>A trustee may grant or take a lease of real or personal property for any term, with or without options to purchase and with or without covenants relating to erection of buildings or renewals, including the lease of a right or privilege above or below the surface of real property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.011/b">
<num value="b">(b)</num>
<content>A trustee may execute a lease containing terms or options that extend beyond the duration of the trust.</content>
</subsection>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scA/s113.012">
<num value="113.012">Sec. 113.012.</num>
<heading>MINERALS</heading>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.012/a">
<num value="a">(a)</num>
<chapeau>A trustee may enter into mineral transactions, including:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.012/1">
<num value="1">(1)</num>
<content>negotiating and making oil, gas, and other mineral leases covering any land, mineral, or royalty interest at any time forming a part of a trust;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.012/2">
<num value="2">(2)</num>
<content>pooling and unitizing part or all of the land, mineral leasehold, mineral, royalty, or other interest of a trust estate with land, mineral leasehold, mineral, royalty, or other interest of one or more persons or entities for the purpose of developing and producing oil, gas, or other minerals, and making leases or assignments granting the right to pool and unitize;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.012/3">
<num value="3">(3)</num>
<content>entering into contracts and agreements concerning the installation and operation of plants or other facilities for the cycling, repressuring, processing, or other treating or handling of oil, gas, or other minerals;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.012/4">
<num value="4">(4)</num>
<content>conducting or contracting for the conducting of seismic evaluation operations;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.012/5">
<num value="5">(5)</num>
<content>drilling or contracting for the drilling of wells for oil, gas, or other minerals;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.012/6">
<num value="6">(6)</num>
<content>contracting for and making "dry hole" and "bottom hole" contributions of cash, leasehold interests, or other interests towards the drilling of wells;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.012/7">
<num value="7">(7)</num>
<content>using or contracting for the use of any method of secondary or tertiary recovery of any mineral, including the injection of water, gas, air, or other substances;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.012/8">
<num value="8">(8)</num>
<content>purchasing oil, gas, or other mineral leases, leasehold interests, or other interests for any type of consideration, including farmout agreements requiring the drilling or reworking of wells or participation therein;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.012/9">
<num value="9">(9)</num>
<content>entering into farmout contracts or agreements committing a trust estate to assign oil, gas, or other mineral leases or interests in consideration for the drilling of wells or other oil, gas, or mineral operations;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.012/10">
<num value="10">(10)</num>
<content>negotiating the transfer of and transferring oil, gas, or other mineral leases or interests for any consideration, such as retained overriding royalty interests of any nature, drilling or reworking commitments, or production interests; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.012/11">
<num value="11">(11)</num>
<content>executing and entering into contracts, conveyances, and other agreements or transfers considered necessary or desirable to carry out the powers granted in this section, whether or not the action is now or subsequently recognized or considered as a common or proper practice by those engaged in the business of prospecting for, developing, producing, processing, transporting, or marketing minerals, including entering into and executing division orders, oil, gas, or other mineral sales contracts, exploration agreements, processing agreements, and other contracts relating to the processing, handling, treating, transporting, and marketing of oil, gas, or other mineral production from or accruing to a trust and receiving and receipting for the proceeds thereof on behalf of a trust.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.012/b">
<num value="b">(b)</num>
<content>A trustee may enter into mineral transactions that extend beyond the term of the trust.</content>
</subsection>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scA/s113.013">
<num value="113.013">Sec. 113.013.</num>
<heading>INSURANCE</heading>
<content>A trustee may purchase insurance of any nature, form, or amount to protect the trust property and the trustee.</content>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scA/s113.014">
<num value="113.014">Sec. 113.014.</num>
<heading>PAYMENT OF TAXES</heading>
<content>A trustee may pay taxes and assessments levied or assessed against the trust estate or the trustee by governmental taxing or assessing authorities.</content>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scA/s113.015">
<num value="113.015">Sec. 113.015.</num>
<heading>AUTHORITY TO BORROW</heading>
<content>A trustee may borrow money from any source, including a trustee, purchase property on credit, and mortgage, pledge, or in any other manner encumber all or any part of the assets of the trust as is advisable in the judgment of the trustee for the advantageous administration of the trust.</content>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scA/s113.016">
<num value="113.016">Sec. 113.016.</num>
<heading>MANAGEMENT OF SECURITIES</heading>
<chapeau>A trustee may:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.016/1">
<num value="1">(1)</num>
<content>pay calls, assessments, or other charges against or because of securities or other investments held by the trust;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.016/2">
<num value="2">(2)</num>
<content>sell or exercise stock subscription or conversion rights;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.016/3">
<num value="3">(3)</num>
<content>vote corporate stock, general or limited partnership interests, or other securities in person or by general or limited proxy;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.016/4">
<num value="4">(4)</num>
<content>consent directly or through a committee or other agent to the reorganization, consolidation, merger, dissolution, or liquidation of a corporation or other business enterprise; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.016/5">
<num value="5">(5)</num>
<content>participate in voting trusts and deposit stocks, bonds, or other securities with any protective or other committee formed by or at the instance of persons holding similar securities, under such terms and conditions respecting the deposit thereof as the trustee may approve; sell any stock or other securities obtained by conversion, reorganization, consolidation, merger, liquidation, or the exercise of subscription rights free of any restrictions upon sale otherwise contained in the trust instrument relative to the securities originally held; assent to corporate sales, leases, encumbrances, and other transactions.</content>
</paragraph>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scA/s113.017">
<num value="113.017">Sec. 113.017.</num>
<heading>CORPORATE STOCK OR OTHER SECURITIES HELD IN NAME OF NOMINEE</heading>
<chapeau>A trustee may:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.017/1">
<num value="1">(1)</num>
<content>hold corporate stock or other securities in the name of a nominee;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.017/2">
<num value="2">(2)</num>
<content>under Subchapter B, Chapter 161, or other law, employ a bank incorporated in this state or a national bank located in this state as custodian of any corporate stock or other securities held in trust; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.017/3">
<num value="3">(3)</num>
<content>under Subchapter C, Chapter 161, or other law, deposit or arrange for the deposit of securities with a Federal Reserve Bank or in a clearing corporation.</content>
</paragraph>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scA/s113.018">
<num value="113.018">Sec. 113.018.</num>
<heading>EMPLOYMENT AND APPOINTMENT OF AGENTS</heading>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.018/a">
<num value="a">(a)</num>
<content>A trustee may employ attorneys, accountants, agents, including investment agents, and brokers reasonably necessary in the administration of the trust estate.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.018/b">
<num value="b">(b)</num>
<content>Without limiting the trustee's discretion under Subsection (a), a trustee may grant an agent powers with respect to property of the trust to act for the trustee in any lawful manner for purposes of real property transactions.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.018/c">
<num value="c">(c)</num>
<chapeau>A trustee acting under Subsection (b) may delegate any or all of the duties and powers to:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.018/1">
<num value="1">(1)</num>
<content>execute and deliver any legal instruments relating to the sale and conveyance of the property, including affidavits, notices, disclosures, waivers, or designations or general or special warranty deeds binding the trustee with vendor's liens retained or disclaimed, as applicable, or transferred to a third-party lender;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.018/2">
<num value="2">(2)</num>
<content>accept notes, deeds of trust, or other legal instruments;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.018/3">
<num value="3">(3)</num>
<content>approve closing statements authorizing deductions from the sale price;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.018/4">
<num value="4">(4)</num>
<content>receive trustee's net sales proceeds by check payable to the trustee;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.018/5">
<num value="5">(5)</num>
<content>indemnify and hold harmless any third party who accepts and acts under a power of attorney with respect to the sale;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.018/6">
<num value="6">(6)</num>
<content>take any action, including signing any document, necessary or appropriate to sell the property and accomplish the delegated powers;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.018/7">
<num value="7">(7)</num>
<content>contract to purchase the property for any price on any terms;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.018/8">
<num value="8">(8)</num>
<content>execute, deliver, or accept any legal instruments relating to the purchase of the property or to any financing of the purchase, including deeds, notes, deeds of trust, guaranties, or closing statements;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.018/9">
<num value="9">(9)</num>
<content>approve closing statements authorizing payment of prorations and expenses;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.018/10">
<num value="10">(10)</num>
<content>pay the trustee's net purchase price from funds provided by the trustee;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.018/11">
<num value="11">(11)</num>
<content>indemnify and hold harmless any third party who accepts and acts under a power of attorney with respect to the purchase; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.018/12">
<num value="12">(12)</num>
<content>take any action, including signing any document, necessary or appropriate to purchase the property and accomplish the delegated powers.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.018/d">
<num value="d">(d)</num>
<content>A trustee who delegates a power under Subsection (b) is liable to the beneficiaries or to the trust for an action of the agent to whom the power was delegated.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.018/e">
<num value="e">(e)</num>
<content>A delegation by the trustee under Subsection (b) must be documented in a written instrument acknowledged by the trustee before an officer authorized under the law of this state or another state to take acknowledgments to deeds of conveyance and administer oaths. A signature on a delegation by a trustee for purposes of this subsection is presumed to be genuine if the trustee acknowledges the signature in accordance with Chapter 121, Civil Practice and Remedies Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.018/f">
<num value="f">(f)</num>
<chapeau>A delegation to an agent under Subsection (b) terminates six months from the date of the acknowledgment of the written delegation unless terminated earlier by:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.018/1">
<num value="1">(1)</num>
<content>the death or incapacity of the trustee;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.018/2">
<num value="2">(2)</num>
<content>the resignation or removal of the trustee; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.018/3">
<num value="3">(3)</num>
<content>a date specified in the written delegation.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.018/g">
<num value="g">(g)</num>
<chapeau>A person who in good faith accepts a delegation under Subsection (b) without actual knowledge that the delegation is void, invalid, or terminated, that the purported agent's authority is void, invalid, or terminated, or that the agent is exceeding or improperly exercising the agent's authority may rely on the delegation as if:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.018/1">
<num value="1">(1)</num>
<content>the delegation were genuine, valid, and still in effect;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.018/2">
<num value="2">(2)</num>
<content>the agent's authority were genuine, valid, and still in effect; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.018/3">
<num value="3">(3)</num>
<content>the agent had not exceeded and had properly exercised the authority.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.018/h">
<num value="h">(h)</num>
<content>A trustee may delegate powers under Subsection (b) if the governing instrument does not affirmatively permit the trustee to hire agents or expressly prohibit the trustee from hiring agents.</content>
</subsection>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984. Amended by Acts 1999, 76th Leg., ch. 794, Sec. 1, eff. Sept. 1, 1999.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 62 (S.B. 617), Sec. 12, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scA/s113.019">
<num value="113.019">Sec. 113.019.</num>
<heading>CLAIMS</heading>
<content>A trustee may compromise, contest, arbitrate, or settle claims of or against the trust estate or the trustee.</content>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scA/s113.020">
<num value="113.020">Sec. 113.020.</num>
<heading>BURDENSOME OR WORTHLESS PROPERTY</heading>
<content>A trustee may abandon property the trustee considers burdensome or worthless.</content>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scA/s113.021">
<num value="113.021">Sec. 113.021.</num>
<heading>DISTRIBUTION TO MINOR OR INCAPACITATED BENEFICIARY</heading>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.021/a">
<num value="a">(a)</num>
<chapeau>A trustee may make a distribution required or permitted to be made to any beneficiary in any of the following ways when the beneficiary is a minor or a person who in the judgment of the trustee is incapacitated by reason of legal incapacity or physical or mental illness or infirmity:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.021/1">
<num value="1">(1)</num>
<content>to the beneficiary directly;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.021/2">
<num value="2">(2)</num>
<content>to the guardian of the beneficiary's person or estate;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.021/3">
<num value="3">(3)</num>
<content>by utilizing the distribution, without the interposition of a guardian, for the health, support, maintenance, or education of the beneficiary;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.021/4">
<num value="4">(4)</num>
<content>to a custodian for the minor beneficiary under the Texas Uniform Transfers to Minors Act (Chapter 141) or a uniform gifts or transfers to minors act of another state;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.021/5">
<num value="5">(5)</num>
<content>by reimbursing the person who is actually taking care of the beneficiary, even though the person is not the legal guardian, for expenditures made by the person for the benefit of the beneficiary; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.021/6">
<num value="6">(6)</num>
<content>by managing the distribution as a separate fund on the beneficiary's behalf, subject to the beneficiary's continuing right to withdraw the distribution.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.021/b">
<num value="b">(b)</num>
<content>The written receipts of persons receiving distributions under Subsection (a) of this section are full and complete acquittances to the trustee.</content>
</subsection>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
Amended by:
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 11, eff. January 1, 2006.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scA/s113.0211">
<num value="113.0211">Sec. 113.0211.</num>
<heading>ADJUSTMENT OF CHARITABLE TRUST</heading>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.0211/a">
<num value="a">(a)</num>
<chapeau>In this section:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.0211/1">
<num value="1">(1)</num>
<content>"Charitable entity" has the meaning assigned by Section 123.001(1).</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.0211/2">
<num value="2">(2)</num>
<chapeau>"Charitable trust" means a trust:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c113/scA/s113.0211/A">
<num value="A">(A)</num>
<content>the stated purpose of which is to benefit only one or more charitable entities; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c113/scA/s113.0211/B">
<num value="B">(B)</num>
<content>that qualifies as a charitable entity.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.0211/b">
<num value="b">(b)</num>
<content>The trustee of a charitable trust may acquire, exchange, sell, supervise, manage, or retain any type of investment, subject to restrictions and procedures established by the trustee and in an amount considered appropriate by the trustee, that a prudent investor, exercising reasonable skill, care, and caution, would acquire or retain in light of the purposes, terms, distribution requirements, and other circumstances of the trust. The prudence of a trustee's actions under this subsection is judged with reference to the investment of all of the trust assets rather than with reference to a single trust investment.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.0211/c">
<num value="c">(c)</num>
<chapeau>The trustee of a charitable trust may make one or more adjustments between the principal and the income portions of a trust to the extent that the trustee considers the adjustments necessary:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.0211/1">
<num value="1">(1)</num>
<content>to comply with the terms of the trust, if any, that describe the amount that may or must be distributed to a charitable entity beneficiary by referring to the income portion of the trust; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.0211/2">
<num value="2">(2)</num>
<content>to administer the trust in order to carry out the purposes of the charitable trust.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.0211/d">
<num value="d">(d)</num>
<content>The authority to make adjustments under Subsection (c) includes the authority to allocate all or part of a capital gain to trust income.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.0211/e">
<num value="e">(e)</num>
<chapeau>In making adjustments under Subsection (c), the trustee shall consider:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.0211/1">
<num value="1">(1)</num>
<content>except to the extent that the terms of the trust clearly manifest an intention that the trustee shall or may favor one or more charitable entity beneficiaries, the needs of a charitable entity beneficiary, based on what is fair and reasonable to all other charitable entity beneficiaries of the trust, if any; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.0211/2">
<num value="2">(2)</num>
<content>the need of the trust to maintain the purchasing power of the trust's investments over time.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 550, Sec. 1, eff. Sept. 1, 2003.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scA/s113.022">
<num value="113.022">Sec. 113.022.</num>
<heading>POWER TO PROVIDE RESIDENCE AND PAY FUNERAL EXPENSES</heading>
<chapeau>A trustee of a trust that is not a charitable remainder unitrust, annuity trust, or pooled income fund that is intended to qualify for a federal tax deduction under Section 664, Internal Revenue Code, after giving consideration to the probable intention of the settlor and finding that the trustee's action would be consistent with that probable intention, may:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.022/1">
<num value="1">(1)</num>
<content>permit real estate held in trust to be occupied by a beneficiary who is currently eligible to receive distributions from the trust estate;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.022/2">
<num value="2">(2)</num>
<content>if reasonably necessary for the maintenance of a beneficiary who is currently eligible to receive distributions from the trust estate, invest trust funds in real property to be used for a home by the beneficiary; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.022/3">
<num value="3">(3)</num>
<content>in the trustee's discretion, pay funeral expenses of a beneficiary who at the time of the beneficiary's death was eligible to receive distributions from the trust estate.</content>
</paragraph>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984. Amended by Acts 1985, 69th Leg., ch. 149, Sec. 2, eff. May 24, 1985.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scA/s113.023">
<num value="113.023">Sec. 113.023.</num>
<heading>ANCILLARY TRUSTEE</heading>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.023/a">
<num value="a">(a)</num>
<content>If trust property is situated outside this state, a Texas trustee may name in writing an individual or corporation qualified to act in the foreign jurisdiction in connection with trust property as ancillary trustee.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.023/b">
<num value="b">(b)</num>
<content>Within the limits of the authority of the Texas trustee, the ancillary trustee has the rights, powers, discretions, and duties the Texas trustee delegates, subject to the limitations and directions of the Texas trustee specified in the instrument evidencing the appointment of the ancillary trustee.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.023/c">
<num value="c">(c)</num>
<content>The Texas trustee may remove an ancillary trustee and appoint a successor at any time as to all or part of the trust assets.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.023/d">
<num value="d">(d)</num>
<content>The Texas trustee may require security of the ancillary trustee, who is answerable to the Texas trustee for all trust property entrusted to or received by the ancillary trustee in connection with the administration of the trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.023/e">
<num value="e">(e)</num>
<content>If the law of the foreign jurisdiction requires a certain procedure or a judicial order for the appointment of an ancillary trustee or to authorize an ancillary trustee to act, the Texas trustee and the ancillary trustee must satisfy the requirements.</content>
</subsection>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scA/s113.024">
<num value="113.024">Sec. 113.024.</num>
<heading>IMPLIED POWERS</heading>
<content>The powers, duties, and responsibilities under this subtitle do not exclude other implied powers, duties, or responsibilities that are not inconsistent with this subtitle.</content>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scA/s113.025">
<num value="113.025">Sec. 113.025.</num>
<heading>POWERS OF TRUSTEE REGARDING ENVIRONMENTAL LAWS</heading>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.025/a">
<num value="a">(a)</num>
<content>A trustee or a potential trustee may inspect, investigate, cause to be inspected, or cause to be investigated trust property, property that the trustee or potential trustee has been asked to hold, or property owned or operated by an entity in which the trustee or potential trustee holds or has been asked to hold any interest or for the purpose of determining the potential application of environmental law with respect to the property. This subsection does not grant any person the right of access to any property. The taking of any action under this subsection with respect to a trust or an addition to a trust is not evidence that a person has accepted the trust or the addition to the trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.025/b">
<num value="b">(b)</num>
<content>A trustee may take on behalf of the trust any action before or after the initiation of an enforcement action or other legal proceeding that the trustee reasonably believes will help to prevent, abate, or otherwise remedy any actual or potential violation of any environmental law affecting property held directly or indirectly by the trustee.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 846, Sec. 29, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scA/s113.026">
<num value="113.026">Sec. 113.026.</num>
<heading>AUTHORITY TO DESIGNATE NEW CHARITABLE BENEFICIARY</heading>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.026/a">
<num value="a">(a)</num>
<chapeau>In this section:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.026/1">
<num value="1">(1)</num>
<content>"Charitable entity" has the meaning assigned by Section 123.001.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.026/2">
<num value="2">(2)</num>
<chapeau>"Failed charitable beneficiary" means a charitable entity that is named as a beneficiary of a trust and that:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c113/scA/s113.026/A">
<num value="A">(A)</num>
<content>does not exist at the time the charitable entity's interest in the trust becomes vested;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c113/scA/s113.026/B">
<num value="B">(B)</num>
<content>ceases to exist during the term of the trust; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c113/scA/s113.026/C">
<num value="C">(C)</num>
<content>ceases to be a charitable entity during the term of the trust.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.026/b">
<num value="b">(b)</num>
<content>This section applies only to an express written trust created by an individual with a charitable entity as a beneficiary. If the trust instrument provides a means for replacing a failed charitable beneficiary, the trust instrument governs the replacement of a failed charitable beneficiary, and this section does not apply.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.026/c">
<num value="c">(c)</num>
<content>The trustee of a trust may select one or more replacement charitable beneficiaries for a failed charitable beneficiary in accordance with this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.026/d">
<num value="d">(d)</num>
<chapeau>Each replacement charitable beneficiary selected under this section by any person must:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.026/1">
<num value="1">(1)</num>
<content>be a charitable entity and an entity described under Sections 170(b)(1)(A), 170(c), 2055(a), and 2522(a) of the Internal Revenue Code of 1986, as amended; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.026/2">
<num value="2">(2)</num>
<content>have the same or similar charitable purpose as the failed charitable beneficiary.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.026/e">
<num value="e">(e)</num>
<content>If the settlor of the trust is living and not incapacitated at the time a trustee is selecting a replacement charitable beneficiary, the trustee shall consult with the settlor concerning the selection of one or more replacement charitable beneficiaries.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.026/f">
<num value="f">(f)</num>
<content>If the trustee and the settlor agree on the selection of one or more replacement charitable beneficiaries, the trustee shall send notice of the selection to the attorney general. If the attorney general determines that one or more replacement charitable beneficiaries do not have the same or similar charitable purpose as the failed charitable beneficiary, not later than the 21st day after the date the attorney general receives notice of the selection, the attorney general shall request in writing that a district court in the county in which the trust was created review the selection. If the court agrees with the attorney general's determination, any remaining replacement charitable beneficiary agreed on by the trustee and the settlor is the replacement charitable beneficiary. If there is not a remaining replacement charitable beneficiary agreed on by the trustee and the settlor, the court shall select one or more replacement charitable beneficiaries. If the court finds that the attorney general's request for a review is unreasonable, the replacement charitable beneficiary is the charitable beneficiary agreed on by the trustee and the settlor, and the court may require the attorney general to pay all court costs of the parties involved. Not later than the 30th day after the date the selection is final, the trustee shall provide to each replacement charitable beneficiary selected notice of the selection by certified mail, return receipt requested.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.026/g">
<num value="g">(g)</num>
<content>If the trustee and the settlor cannot agree on the selection of a replacement charitable beneficiary, the trustee shall send notice of that fact to the attorney general not later than the 21st day after the date the trustee determines that an agreement cannot be reached. The attorney general shall refer the matter to a district court in the county in which the trust was created. The trustee and the settlor may each recommend to the court one or more replacement charitable beneficiaries. The court shall select a replacement charitable beneficiary and, not later than the 30th day after the date of the selection, provide to each charitable beneficiary selected notice of the selection by certified mail, return receipt requested.</content>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 63, Sec. 1, eff. Aug. 30, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scA/s113.027">
<num value="113.027">Sec. 113.027.</num>
<heading>DISTRIBUTIONS GENERALLY</heading>
<chapeau>When distributing trust property or dividing or terminating a trust, a trustee may:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.027/1">
<num value="1">(1)</num>
<content>make distributions in divided or undivided interests;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.027/2">
<num value="2">(2)</num>
<content>allocate particular assets in proportionate or disproportionate shares;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.027/3">
<num value="3">(3)</num>
<content>value the trust property for the purposes of acting under Subdivision (1) or (2); and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.027/4">
<num value="4">(4)</num>
<content>adjust the distribution, division, or termination for resulting differences in valuation.</content>
</paragraph>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 12, eff. January 1, 2006.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scA/s113.028">
<num value="113.028">Sec. 113.028.</num>
<heading>CERTAIN CLAIMS AND CAUSES OF ACTION PROHIBITED</heading>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.028/a">
<num value="a">(a)</num>
<content>A trustee may not prosecute or assert a claim for damages in a cause of action against a party who is not a beneficiary of the trust if each beneficiary of the trust provides written notice to the trustee of the beneficiary's opposition to the trustee's prosecuting or asserting the claim in the cause of action.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.028/b">
<num value="b">(b)</num>
<content>This section does not apply to a cause of action that is prosecuted by a trustee in the trustee's individual capacity.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.028/c">
<num value="c">(c)</num>
<content>The trustee is not liable for failing to prosecute or assert a claim in a cause of action if prohibited by the beneficiaries under Subsection (a).</content>
</subsection>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 765 (H.B. 3434), Sec. 3, eff. June 17, 2005.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scA/s113.029">
<num value="113.029">Sec. 113.029.</num>
<heading>DISCRETIONARY POWERS; TAX SAVINGS</heading>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.029/a">
<num value="a">(a)</num>
<content>Notwithstanding the breadth of discretion granted to a trustee in the terms of the trust, including the use of terms such as "absolute," "sole," or "uncontrolled," the trustee shall exercise a discretionary power in good faith and in accordance with the terms and purposes of the trust and the interests of the beneficiaries.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.029/b">
<num value="b">(b)</num>
<chapeau>Subject to Subsection (d), and unless the terms of the trust expressly indicate that a requirement provided by this subsection does not apply:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.029/1">
<num value="1">(1)</num>
<content>a person, other than a settlor, who is a beneficiary and trustee, trustee affiliate, or discretionary power holder of a trust that confers on the trustee a power to make discretionary distributions to or for the trustee's, the trustee affiliate's, or the discretionary power holder's personal benefit may exercise the power only in accordance with an ascertainable standard relating to the trustee's, the trustee affiliate's, or the discretionary power holder's individual health, education, support, or maintenance within the meaning of Section 2041(b)(1)(A) or 2514(c)(1), Internal Revenue Code of 1986; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.029/2">
<num value="2">(2)</num>
<content>a trustee may not exercise a power to make discretionary distributions to satisfy a legal obligation of support that the trustee personally owes another person.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.029/c">
<num value="c">(c)</num>
<content>A power the exercise of which is limited or prohibited by Subsection (b) may be exercised by a majority of the remaining trustees whose exercise of the power is not limited or prohibited by Subsection (b). If the power of all trustees is limited or prohibited by Subsection (b), the court may appoint a special fiduciary with authority to exercise the power.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.029/d">
<num value="d">(d)</num>
<chapeau>Subsection (b) does not apply to:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.029/1">
<num value="1">(1)</num>
<content>a power held by the settlor's spouse who is the trustee of a trust for which a marital deduction, as defined by Section 2056(b)(5) or 2523(e), Internal Revenue Code of 1986, was previously allowed;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.029/2">
<num value="2">(2)</num>
<content>any trust during any period that the trust may be revoked or amended by its settlor; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.029/3">
<num value="3">(3)</num>
<content>a trust if contributions to the trust qualify for the annual exclusion under Section 2503(c), Internal Revenue Code of 1986.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.029/e">
<num value="e">(e)</num>
<content>In this section, "discretionary power holder" means a person who has the sole power or power shared with another person to make discretionary decisions on behalf of a trustee with respect to distributions from a trust.</content>
</subsection>
<sourceCredit>Added by Acts 2009, 81st Leg., R.S., Ch. 672 (H.B. 2368), Sec. 3, eff. September 1, 2009.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 4, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scA/s113.030">
<num value="113.030">Sec. 113.030.</num>
<heading>RELOCATION OF ADMINISTRATION OF CHARITABLE TRUST</heading>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.030/a">
<num value="a">(a)</num>
<chapeau>In this section:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.030/1">
<num value="1">(1)</num>
<content>"Charitable entity" has the meaning assigned by Section 123.001.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.030/2">
<num value="2">(2)</num>
<chapeau>"Charitable trust" means a trust:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c113/scA/s113.030/A">
<num value="A">(A)</num>
<content>the stated purpose of which is to benefit only one or more charitable entities; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c113/scA/s113.030/B">
<num value="B">(B)</num>
<content>that qualifies as a charitable entity.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.030/3">
<num value="3">(3)</num>
<content>"Trust administration" means the grant-making function of the trust.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.030/b">
<num value="b">(b)</num>
<content>Except as provided by this section or specifically authorized by the terms of a trust, the trustee of a charitable trust may not change the location in which the trust administration takes place from a location in this state to a location outside this state.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.030/c">
<num value="c">(c)</num>
<chapeau>If the trustee decides to change the location in which the trust is administered from a location in this state to a location outside this state, the trustee shall:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.030/1">
<num value="1">(1)</num>
<chapeau>if the settlor is living and not incapacitated:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c113/scA/s113.030/A">
<num value="A">(A)</num>
<content>consult the settlor concerning the selection of a new location for the administration of the trust; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c113/scA/s113.030/B">
<num value="B">(B)</num>
<content>submit the selection to the attorney general; or</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.030/2">
<num value="2">(2)</num>
<chapeau>if the settlor is not living or is incapacitated:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c113/scA/s113.030/A">
<num value="A">(A)</num>
<content>propose a new location; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c113/scA/s113.030/B">
<num value="B">(B)</num>
<content>submit the proposal to the attorney general.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.030/d">
<num value="d">(d)</num>
<content>The trustee may file an action in the district court or statutory probate court in which the trust was created seeking a court order authorizing the trustee to change the location in which the trust is administered to a location outside this state. The court may exercise its equitable powers to effectuate the original purpose of the trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.030/e">
<num value="e">(e)</num>
<chapeau>Except as provided by Subsection (b), the location in which the administration of the trust takes place may not be changed to a location outside this state unless:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.030/1">
<num value="1">(1)</num>
<content>the charitable purposes of the trust would not be impaired if the trust administration is moved; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scA/s113.030/2">
<num value="2">(2)</num>
<content>a district court or statutory probate court authorizes the relocation.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.030/f">
<num value="f">(f)</num>
<content>The attorney general may bring an action to enforce the provisions of this section. If a trustee of a charitable trust fails to comply with the provisions of this section, the district court or statutory probate court in the county in which the trust administration was originally located may remove the trustee and appoint a new trustee. Costs of a proceeding to remove a trustee, including reasonable attorney's fees, may be assessed against the removed trustee. This provision is in addition to and does not supersede the provisions of Chapter 123.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.030/g">
<num value="g">(g)</num>
<content>This section does not affect a trustee's authority to sell real estate owned by a charitable trust.</content>
</subsection>
<sourceCredit>Added by Acts 2009, 81st Leg., R.S., Ch. 754 (S.B. 666), Sec. 1, eff. September 1, 2009.
Redesignated from Property Code, Section 113.029 by Acts 2011, 82nd Leg., R.S., Ch. 91 (S.B. 1303), Sec. 27.001(52), eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scA/s113.031">
<num value="113.031">Sec. 113.031.</num>
<heading>DIGITAL ASSETS</heading>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.031/a">
<num value="a">(a)</num>
<content>In this section, "digital asset" has the meaning assigned by Section 2001.002, Estates Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scA/s113.031/b">
<num value="b">(b)</num>
<content>A trustee may access digital assets as provided by Chapter 2001, Estates Code.</content>
</subsection>
<sourceCredit>Added by Acts 2017, 85th Leg., R.S., Ch. 400 (S.B. 1193), Sec. 6, eff. September 1, 2017.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t9/c113/scB">
<num value="B">SUBCHAPTER B.</num>
<heading>DUTIES OF TRUSTEE</heading>
<section identifier="/us/tx/pr/t9/c113/scB/s113.051">
<num value="113.051">Sec. 113.051.</num>
<heading>GENERAL DUTY</heading>
<content>The trustee shall administer the trust in good faith according to its terms and this subtitle. In the absence of any contrary terms in the trust instrument or contrary provisions of this subtitle, in administering the trust the trustee shall perform all of the duties imposed on trustees by the common law.</content>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
Amended by:
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 13, eff. January 1, 2006.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scB/s113.052">
<num value="113.052">Sec. 113.052.</num>
<heading>LOAN OF TRUST FUNDS TO TRUSTEE</heading>
<subsection identifier="/us/tx/pr/t9/c113/scB/s113.052/a">
<num value="a">(a)</num>
<chapeau>Except as provided by Subsection (b) of this section, a trustee may not lend trust funds to:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c113/scB/s113.052/1">
<num value="1">(1)</num>
<content>the trustee or an affiliate;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scB/s113.052/2">
<num value="2">(2)</num>
<content>a director, officer, or employee of the trustee or an affiliate;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scB/s113.052/3">
<num value="3">(3)</num>
<content>a relative of the trustee; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scB/s113.052/4">
<num value="4">(4)</num>
<content>the trustee's employer, employee, partner, or other business associate.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scB/s113.052/b">
<num value="b">(b)</num>
<chapeau>This section does not prohibit:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c113/scB/s113.052/1">
<num value="1">(1)</num>
<content>a loan by a trustee to a beneficiary of the trust if the loan is expressly authorized or directed by the instrument or transaction establishing the trust; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scB/s113.052/2">
<num value="2">(2)</num>
<content>a deposit by a corporate trustee with itself under Section 113.057 of this Act.</content>
</paragraph>
</subsection>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scB/s113.053">
<num value="113.053">Sec. 113.053.</num>
<heading>PURCHASE OR SALE OF TRUST PROPERTY BY TRUSTEE</heading>
<subsection identifier="/us/tx/pr/t9/c113/scB/s113.053/a">
<num value="a">(a)</num>
<chapeau>Except as provided by Subsections (b), (c), (d), (e), (f), and (g), a trustee shall not directly or indirectly buy or sell trust property from or to:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c113/scB/s113.053/1">
<num value="1">(1)</num>
<content>the trustee or an affiliate;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scB/s113.053/2">
<num value="2">(2)</num>
<content>a director, officer, or employee of the trustee or an affiliate;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scB/s113.053/3">
<num value="3">(3)</num>
<content>a relative of the trustee; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scB/s113.053/4">
<num value="4">(4)</num>
<content>the trustee's employer, partner, or other business associate.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scB/s113.053/b">
<num value="b">(b)</num>
<chapeau>A national banking association or a state-chartered corporation with the right to exercise trust powers that is serving as executor, administrator, guardian, trustee, or receiver may sell shares of its own capital stock held by it for an estate to one or more of its officers or directors if a court:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c113/scB/s113.053/1">
<num value="1">(1)</num>
<content>finds that the sale is in the best interest of the estate that owns the shares;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scB/s113.053/2">
<num value="2">(2)</num>
<content>fixes or approves the sales price of the shares and the other terms of the sale; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scB/s113.053/3">
<num value="3">(3)</num>
<content>enters an order authorizing and directing the sale.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scB/s113.053/c">
<num value="c">(c)</num>
<content>If a corporate trustee, executor, administrator, or guardian is legally authorized to retain its own capital stock in trust, the trustee may exercise rights to purchase its own stock if increases in the stock are offered pro rata to shareholders.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scB/s113.053/d">
<num value="d">(d)</num>
<content>If the exercise of rights or the receipt of a stock dividend results in a fractional share holding and the acquisition meets the investment standard required by this subchapter, the trustee may purchase additional fractional shares to round out the holding to a full share.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scB/s113.053/e">
<num value="e">(e)</num>
<chapeau>A trustee may:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c113/scB/s113.053/1">
<num value="1">(1)</num>
<content>comply with the terms of a written executory contract signed by the settlor, including a contract for deed, earnest money contract, buy/sell agreement, or stock purchase or redemption agreement; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scB/s113.053/2">
<num value="2">(2)</num>
<content>sell the stock, bonds, obligations, or other securities of a corporation to the issuing corporation or to its corporate affiliate if the sale is made under an agreement described in Subdivision (1) or complies with the duties imposed by Chapter 117.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scB/s113.053/f">
<num value="f">(f)</num>
<chapeau>A national banking association, a state-chartered corporation, including a state-chartered bank or trust company, a state or federal savings and loan association that has the right to exercise trust powers and that is serving as trustee, or such an institution that is serving as custodian with respect to an individual retirement account, as defined by Section 408, Internal Revenue Code, or an employee benefit plan, as defined by Section 3(3), Employee Retirement Income Security Act of 1974 (29 U.S.C. Section 1002(3)), regardless of whether the custodial account is, or would otherwise be, considered a trust for purposes of this subtitle, may, subject to its fiduciary duties:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c113/scB/s113.053/1">
<num value="1">(1)</num>
<content>employ an affiliate or division within a financial institution to provide brokerage, investment, administrative, custodial, or other account services for the trust or custodial account and charge the trust or custodial account for the services;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scB/s113.053/2">
<num value="2">(2)</num>
<chapeau>unless the instrument governing the fiduciary relationship expressly prohibits the purchase or charge, purchase insurance underwritten or otherwise distributed by an affiliate, a division within the financial institution, or a syndicate or selling group that includes the financial institution or an affiliate and charge the trust or custodial account for the insurance premium, provided that:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c113/scB/s113.053/A">
<num value="A">(A)</num>
<content>the person conducting the insurance transaction is appropriately licensed if required by applicable licensing and regulatory requirements administered by a functional regulatory agency of this state; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c113/scB/s113.053/B">
<num value="B">(B)</num>
<content>the insurance product and premium are the same or similar to a product and premium offered by organizations that are not an affiliate, a division within the financial institution, or a syndicate or selling group that includes the financial institution or an affiliate; and</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scB/s113.053/3">
<num value="3">(3)</num>
<content>receive a fee or compensation, directly or indirectly, on account of the services performed or the insurance product sold by the affiliate, division within the financial institution, or syndicate or selling group that includes the financial institution or an affiliate, whether in the form of shared commissions, fees, or otherwise, provided that any amount charged by the affiliate, division, or syndicate or selling group that includes the financial institution or an affiliate for the services or insurance product is disclosed and does not exceed the customary or prevailing amount that is charged by the affiliate, division, or syndicate or selling group that includes the financial institution or an affiliate, or a comparable entity, for comparable services rendered or insurance provided to a person other than the trust.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scB/s113.053/g">
<num value="g">(g)</num>
<content>In addition to other investments authorized by law for the investment of funds held by a fiduciary or by the instrument governing the fiduciary relationship, and notwithstanding any other provision of law and subject to the standard contained in Chapter 117, a bank or trust company acting as a fiduciary, agent, or otherwise, in the exercise of its investment discretion or at the direction of another person authorized to direct the investment of funds held by the bank or trust company as fiduciary, may invest and reinvest in the securities of an open-end or closed-end management investment company or investment trust registered under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.) if the portfolio of the investment company or investment trust consists substantially of investments that are not prohibited by the governing instrument. The fact that the bank or trust company or an affiliate of the bank or trust company provides services to the investment company or investment trust, such as those of an investment advisor, custodian, transfer agent, registrar, sponsor, distributor, manager, or otherwise, and receives compensation for those services does not preclude the bank or trust company from investing or reinvesting in the securities if the compensation is disclosed by prospectus, account statement, or otherwise. An executor or administrator of an estate under a dependent administration or a guardian of an estate shall not so invest or reinvest unless specifically authorized by the court in which such estate or guardianship is pending.</content>
</subsection>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984. Amended by Acts 1985, 69th Leg., ch. 974, Sec. 1, 2, eff. Aug. 26, 1985; Acts 1989, 71st Leg., ch. 341, Sec. 1, eff. Aug. 28, 1989; Acts 1993, 73rd Leg., ch. 933, Sec. 1, eff. Aug. 30, 1993; Acts 2003, 78th Leg., ch. 1103, Sec. 4, eff. Jan. 1, 2004.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 1337 (S.B. 778), Sec. 1, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scB/s113.054">
<num value="113.054">Sec. 113.054.</num>
<heading>SALES FROM ONE TRUST TO ANOTHER</heading>
<chapeau>A trustee of one trust may not sell property to another trust of which it is also trustee unless the property is:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c113/scB/s113.054/1">
<num value="1">(1)</num>
<content>a bond, note, bill, or other obligation issued or fully guaranteed as to principal and interest by the United States; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scB/s113.054/2">
<num value="2">(2)</num>
<content>sold for its current market price.</content>
</paragraph>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scB/s113.055">
<num value="113.055">Sec. 113.055.</num>
<heading>PURCHASE OF TRUSTEE'S SECURITIES</heading>
<subsection identifier="/us/tx/pr/t9/c113/scB/s113.055/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (b) of this section, a corporate trustee may not purchase for the trust the stock, bonds, obligations, or other securities of the trustee or an affiliate, and a noncorporate trustee may not purchase for the trust the stock, bonds, obligations, or other securities of a corporation with which the trustee is connected as director, owner, manager, or any other executive capacity.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scB/s113.055/b">
<num value="b">(b)</num>
<chapeau>A trustee may:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c113/scB/s113.055/1">
<num value="1">(1)</num>
<content>retain stock already owned by the trust unless the retention does not satisfy the requirements prescribed by Chapter 117; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scB/s113.055/2">
<num value="2">(2)</num>
<content>exercise stock rights or purchase fractional shares under Section 113.053 of this Act.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984. Amended by Acts 2003, 78th Leg., ch. 1103, Sec. 5, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scB/s113.056">
<num value="113.056">Sec. 113.056.</num>
<heading>AUTHORIZATION TO MAKE CERTAIN INVESTMENTS</heading>
<subsection identifier="/us/tx/pr/t9/c113/scB/s113.056/a">
<num value="a">(a)</num>
<content>Unless the terms of the trust instrument provide otherwise, and subject to the investment standards provided by this subtitle and any investment standards provided by the trust instrument, the trustee may invest all or part of the trust assets in an investment vehicle authorized for the collective investment of trust funds pursuant to Part 9, Title 12, of the Code of Federal Regulations.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scB/s113.056/d">
<num value="d">(d)</num>
<content>Subject to any investment standards provided by this chapter, Chapter 117, or the trust instrument, whenever the instrument directs, requires, authorizes, or permits investment in obligations of the United States government, the trustee may invest in and hold such obligations either directly or in the form of interests in an open-end management type investment company or investment trust registered under the Investment Company Act of 1940, 15 U.S.C. 80a-1 et seq., or in an investment vehicle authorized for the collective investment of trust funds pursuant to Part 9, Title 12 of the Code of Federal Regulations, so long as the portfolio of such investment company, investment trust, or collective investment vehicle is limited to such obligations and to repurchase agreements fully collateralized by such obligations.</content>
</subsection>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984. Amended by Acts 1985, 69th Leg., ch. 341, Sec. 1, eff. June 10, 1985; Acts 1991, 72nd Leg., ch. 876, Sec. 1, eff. June 16, 1991; Acts 2003, 78th Leg., ch. 1103, Sec. 6, 7, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scB/s113.057">
<num value="113.057">Sec. 113.057.</num>
<heading>DEPOSITS BY CORPORATE TRUSTEE WITH ITSELF</heading>
<subsection identifier="/us/tx/pr/t9/c113/scB/s113.057/a">
<num value="a">(a)</num>
<content>A corporate trustee may deposit trust funds with itself as a permanent investment if authorized by the settlor in the instrument creating the trust or if authorized in a writing delivered to the trustee by a beneficiary currently eligible to receive distributions from a trust created before January 1, 1988.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scB/s113.057/b">
<num value="b">(b)</num>
<chapeau>A corporate trustee may deposit with itself trust funds that are being held pending investment, distribution, or payment of debts if, except as provided by Subsection (d) of this section:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c113/scB/s113.057/1">
<num value="1">(1)</num>
<content>it maintains under control of its trust department as security for the deposit a separate fund of securities legal for trust investments;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scB/s113.057/2">
<num value="2">(2)</num>
<content>the total market value of the security is at all times at least equal to the amount of the deposit; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scB/s113.057/3">
<num value="3">(3)</num>
<content>the separate fund is marked as such.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scB/s113.057/c">
<num value="c">(c)</num>
<content>The trustee may make periodic withdrawals from or additions to the securities fund required by Subsection (b) of this section as long as the required value is maintained. Income from securities in the fund belongs to the trustee.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scB/s113.057/d">
<num value="d">(d)</num>
<content>Security for a deposit under this section is not required for a deposit under Subsection (a) or under Subsection (b) of this section to the extent the deposit is insured or otherwise secured under state or federal law.</content>
</subsection>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984. Amended by Acts 1985, 69th Leg., ch. 149, Sec. 3, eff. May 24, 1985.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scB/s113.058">
<num value="113.058">Sec. 113.058.</num>
<heading>BOND</heading>
<subsection identifier="/us/tx/pr/t9/c113/scB/s113.058/a">
<num value="a">(a)</num>
<content>A corporate trustee is not required to provide a bond to secure performance of its duties as trustee.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scB/s113.058/b">
<num value="b">(b)</num>
<chapeau>Unless the instrument creating the trust provides otherwise, a noncorporate trustee must give bond:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c113/scB/s113.058/1">
<num value="1">(1)</num>
<content>payable to the trust estate of the trust, the registry of the court, or each person interested in the trust, as their interests may appear; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scB/s113.058/2">
<num value="2">(2)</num>
<content>conditioned on the faithful performance of the trustee's duties.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scB/s113.058/c">
<num value="c">(c)</num>
<content>The bond must be in an amount and with the sureties required by order of a court in a proceeding brought for this determination.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scB/s113.058/d">
<num value="d">(d)</num>
<content>Any interested person may bring an action to increase or decrease the amount of a bond, require a bond, or substitute or add sureties. Notwithstanding Subsection (b), for cause shown, a court may require a bond even if the instrument creating the trust provides otherwise.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scB/s113.058/e">
<num value="e">(e)</num>
<content>The trustee shall deposit the bond with the clerk of the court that issued the order requiring the bond. A suit on the bond may be maintained on a certified copy. Appropriate proof of a recovery on a bond reduces the liability of the sureties pro tanto.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scB/s113.058/f">
<num value="f">(f)</num>
<content>Failure to comply with this section does not make void or voidable or otherwise affect an act or transaction of a trustee with any third person.</content>
</subsection>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
Amended by:
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 14, eff. January 1, 2006.
Acts 2007, 80th Leg., R.S., Ch. 451 (H.B. 564), Sec. 6, eff. September 1, 2007.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t9/c113/scC">
<num value="C">SUBCHAPTER C.</num>
<heading>RESIGNATION OR REMOVAL OF TRUSTEE, AND AUTHORITY OF MULTIPLE AND SUCCESSOR TRUSTEES</heading>
<section identifier="/us/tx/pr/t9/c113/scC/s113.081">
<num value="113.081">Sec. 113.081.</num>
<heading>RESIGNATION OF TRUSTEE</heading>
<subsection identifier="/us/tx/pr/t9/c113/scC/s113.081/a">
<num value="a">(a)</num>
<content>A trustee may resign in accordance with the terms of the trust instrument, or a trustee may petition a court for permission to resign as trustee.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scC/s113.081/b">
<num value="b">(b)</num>
<content>The court may accept a trustee's resignation and discharge the trustee from the trust on the terms and conditions necessary to protect the rights of other interested persons.</content>
</subsection>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scC/s113.082">
<num value="113.082">Sec. 113.082.</num>
<heading>REMOVAL OF TRUSTEE</heading>
<subsection identifier="/us/tx/pr/t9/c113/scC/s113.082/a">
<num value="a">(a)</num>
<chapeau>A trustee may be removed in accordance with the terms of the trust instrument, or, on the petition of an interested person and after hearing, a court may, in its discretion, remove a trustee and deny part or all of the trustee's compensation if:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c113/scC/s113.082/1">
<num value="1">(1)</num>
<content>the trustee materially violated or attempted to violate the terms of the trust and the violation or attempted violation results in a material financial loss to the trust;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scC/s113.082/2">
<num value="2">(2)</num>
<content>the trustee becomes incapacitated or insolvent;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scC/s113.082/3">
<num value="3">(3)</num>
<content>the trustee fails to make an accounting that is required by law or by the terms of the trust; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scC/s113.082/4">
<num value="4">(4)</num>
<content>the court finds other cause for removal.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scC/s113.082/b">
<num value="b">(b)</num>
<content>A beneficiary, cotrustee, or successor trustee may treat a violation resulting in removal as a breach of trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scC/s113.082/c">
<num value="c">(c)</num>
<content>A trustee of a charitable trust may not be removed solely on the grounds that the trustee exercised the trustee's power to adjust between principal and income under Section 113.0211.</content>
</subsection>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984. Amended by Acts 2003, 78th Leg., ch. 550, Sec. 2, eff. Sept. 1, 2003.
Amended by:
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 16, eff. January 1, 2006.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scC/s113.083">
<num value="113.083">Sec. 113.083.</num>
<heading>APPOINTMENT OF SUCCESSOR TRUSTEE</heading>
<subsection identifier="/us/tx/pr/t9/c113/scC/s113.083/a">
<num value="a">(a)</num>
<content>On the death, resignation, incapacity, or removal of a sole or surviving trustee, a successor trustee shall be selected according to the method, if any, prescribed in the trust instrument. If for any reason a successor is not selected under the terms of the trust instrument, a court may and on petition of any interested person shall appoint a successor in whom the trust shall vest.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scC/s113.083/b">
<num value="b">(b)</num>
<content>If a vacancy occurs in the number of trustees originally appointed under a valid charitable trust agreement and the trust agreement does not provide for filling the vacancy, the remaining trustees may fill the vacancy by majority vote.</content>
</subsection>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scC/s113.084">
<num value="113.084">Sec. 113.084.</num>
<heading>POWERS OF SUCCESSOR TRUSTEE</heading>
<content>Unless otherwise provided in the trust instrument or by order of the court appointing a successor trustee, the successor trustee has the rights, powers, authority, discretion, and title to trust property conferred on the trustee.</content>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scC/s113.085">
<num value="113.085">Sec. 113.085.</num>
<heading>EXERCISE OF POWERS BY MULTIPLE TRUSTEES</heading>
<subsection identifier="/us/tx/pr/t9/c113/scC/s113.085/a">
<num value="a">(a)</num>
<content>Cotrustees may act by majority decision.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scC/s113.085/b">
<num value="b">(b)</num>
<content>If a vacancy occurs in a cotrusteeship, the remaining cotrustees may act for the trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scC/s113.085/c">
<num value="c">(c)</num>
<chapeau>A cotrustee shall participate in the performance of a trustee's function unless the cotrustee:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c113/scC/s113.085/1">
<num value="1">(1)</num>
<content>is unavailable to perform the function because of absence, illness, suspension under this code or other law, disqualification, if any, under this code, disqualification under other law, or other temporary incapacity; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scC/s113.085/2">
<num value="2">(2)</num>
<content>has delegated the performance of the function to another trustee in accordance with the terms of the trust or applicable law, has communicated the delegation to all other cotrustees, and has filed the delegation in the records of the trust.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scC/s113.085/d">
<num value="d">(d)</num>
<content>If a cotrustee is unavailable to participate in the performance of a trustee's function for a reason described by Subsection (c)(1) and prompt action is necessary to achieve the efficient administration or purposes of the trust or to avoid injury to the trust property or a beneficiary, the remaining cotrustee or a majority of the remaining cotrustees may act for the trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scC/s113.085/e">
<num value="e">(e)</num>
<content>A trustee may delegate to a cotrustee the performance of a trustee's function unless the settlor specifically directs that the function be performed jointly. Unless a cotrustee's delegation under this subsection is irrevocable, the cotrustee making the delegation may revoke the delegation.</content>
</subsection>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
Amended by:
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 17, eff. January 1, 2006.
Acts 2007, 80th Leg., R.S., Ch. 451 (H.B. 564), Sec. 7, eff. September 1, 2007.
Acts 2009, 81st Leg., R.S., Ch. 973 (H.B. 3635), Sec. 1, eff. September 1, 2009.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t9/c113/scE">
<num value="E">SUBCHAPTER E.</num>
<heading>ACCOUNTING BY TRUSTEE</heading>
<section identifier="/us/tx/pr/t9/c113/scE/s113.151">
<num value="113.151">Sec. 113.151.</num>
<heading>DEMAND FOR ACCOUNTING</heading>
<subsection identifier="/us/tx/pr/t9/c113/scE/s113.151/a">
<num value="a">(a)</num>
<content>A beneficiary by written demand may request the trustee to deliver to each beneficiary of the trust a written statement of accounts covering all transactions since the last accounting or since the creation of the trust, whichever is later. If the trustee fails or refuses to deliver the statement on or before the 90th day after the date the trustee receives the demand or after a longer period ordered by a court, any beneficiary of the trust may file suit to compel the trustee to deliver the statement to all beneficiaries of the trust. The court may require the trustee to deliver a written statement of account to all beneficiaries on finding that the nature of the beneficiary's interest in the trust or the effect of the administration of the trust on the beneficiary's interest is sufficient to require an accounting by the trustee. However, the trustee is not obligated or required to account to the beneficiaries of a trust more frequently than once every 12 months unless a more frequent accounting is required by the court. If a beneficiary is successful in the suit to compel a statement under this section, the court may, in its discretion, award all or part of the costs of court and all of the suing beneficiary's reasonable and necessary attorney's fees and costs against the trustee in the trustee's individual capacity or in the trustee's capacity as trustee.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scE/s113.151/b">
<num value="b">(b)</num>
<content>An interested person may file suit to compel the trustee to account to the interested person. The court may require the trustee to deliver a written statement of account to the interested person on finding that the nature of the interest in the trust of, the claim against the trust by, or the effect of the administration of the trust on the interested person is sufficient to require an accounting by the trustee.</content>
</subsection>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984. Amended by Acts 2003, 78th Leg., ch. 550, Sec. 3, eff. Sept. 1, 2003.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scE/s113.152">
<num value="113.152">Sec. 113.152.</num>
<heading>CONTENTS OF ACCOUNTING</heading>
<chapeau>A written statement of accounts shall show:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c113/scE/s113.152/1">
<num value="1">(1)</num>
<content>all trust property that has come to the trustee's knowledge or into the trustee's possession and that has not been previously listed or inventoried as property of the trust;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scE/s113.152/2">
<num value="2">(2)</num>
<content>a complete account of receipts, disbursements, and other transactions regarding the trust property for the period covered by the account, including their source and nature, with receipts of principal and income shown separately;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scE/s113.152/3">
<num value="3">(3)</num>
<content>a listing of all property being administered, with an adequate description of each asset;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scE/s113.152/4">
<num value="4">(4)</num>
<content>the cash balance on hand and the name and location of the depository where the balance is kept; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scE/s113.152/5">
<num value="5">(5)</num>
<content>all known liabilities owed by the trust.</content>
</paragraph>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t9/c113/scF">
<num value="F">SUBCHAPTER F.</num>
<heading>COMMON TRUST FUNDS</heading>
<section identifier="/us/tx/pr/t9/c113/scF/s113.171">
<num value="113.171">Sec. 113.171.</num>
<heading>COMMON TRUST FUNDS</heading>
<subsection identifier="/us/tx/pr/t9/c113/scF/s113.171/a">
<num value="a">(a)</num>
<content>A bank or trust company qualified to act as a fiduciary in this state may establish common trust funds to provide investments to itself as a fiduciary, including as a custodian under the Texas Uniform Transfers to Minors Act (Chapter 141) or a uniform gifts or transfers to minors act of another state or to itself and others as cofiduciaries.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scF/s113.171/b">
<num value="b">(b)</num>
<chapeau>The fiduciary or cofiduciary may place investment funds in interests in common trust funds if:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c113/scF/s113.171/1">
<num value="1">(1)</num>
<content>the investment is not prohibited by the instrument or order creating the fiduciary relationship; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scF/s113.171/2">
<num value="2">(2)</num>
<content>if there are cofiduciaries, the cofiduciaries consent to the investment.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c113/scF/s113.171/c">
<num value="c">(c)</num>
<chapeau>A common trust fund includes a fund:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c113/scF/s113.171/1">
<num value="1">(1)</num>
<content>qualified for exemption from federal income taxation as a common trust fund and maintained exclusively for eligible fiduciary accounts; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c113/scF/s113.171/2">
<num value="2">(2)</num>
<content>consisting solely of assets of retirement, pension, profit sharing, stock bonus, or other employees' trusts that are exempt from federal income taxation.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
Amended by:
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 18, eff. January 1, 2006.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c113/scF/s113.172">
<num value="113.172">Sec. 113.172.</num>
<heading>AFFILIATED INSTITUTIONS</heading>
<content>A bank or trust company that is a member of an affiliated group under Section 1504, Internal Revenue Code of 1954 (26 U.S.C. 1504), with a bank or trust company maintaining common trust funds may participate in one or more of the funds.</content>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
</subchapter>
</chapter>
<chapter identifier="/us/tx/pr/t9/c114">
<num value="114">CHAPTER 114.</num>
<heading>LIABILITIES, RIGHTS, AND REMEDIES OF TRUSTEES, BENEFICIARIES, AND THIRD PERSONS</heading>
<subchapter identifier="/us/tx/pr/t9/c114/scA">
<num value="A">SUBCHAPTER A.</num>
<heading>LIABILITY OF TRUSTEE</heading>
<section identifier="/us/tx/pr/t9/c114/scA/s114.001">
<num value="114.001">Sec. 114.001.</num>
<heading>LIABILITY OF TRUSTEE TO BENEFICIARY</heading>
<subsection identifier="/us/tx/pr/t9/c114/scA/s114.001/a">
<num value="a">(a)</num>
<content>The trustee is accountable to a beneficiary for the trust property and for any profit made by the trustee through or arising out of the administration of the trust, even though the profit does not result from a breach of trust; provided, however, that the trustee is not required to return to a beneficiary the trustee's compensation as provided by this subtitle, by the terms of the trust instrument, or by a writing delivered to the trustee and signed by all beneficiaries of the trust who have full legal capacity.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scA/s114.001/b">
<num value="b">(b)</num>
<content>The trustee is not liable to the beneficiary for a loss or depreciation in value of the trust property or for a failure to make a profit that does not result from a failure to perform the duties set forth in this subtitle or from any other breach of trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scA/s114.001/c">
<num value="c">(c)</num>
<chapeau>A trustee who commits a breach of trust is chargeable with any damages resulting from such breach of trust, including but not limited to:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c114/scA/s114.001/1">
<num value="1">(1)</num>
<content>any loss or depreciation in value of the trust estate as a result of the breach of trust;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scA/s114.001/2">
<num value="2">(2)</num>
<content>any profit made by the trustee through the breach of trust; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scA/s114.001/3">
<num value="3">(3)</num>
<content>any profit that would have accrued to the trust estate if there had been no breach of trust.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scA/s114.001/d">
<num value="d">(d)</num>
<content>The trustee is not liable to the beneficiary for a loss or depreciation in value of the trust property or for acting or failing to act under Section 113.025 or under any other provision of this subtitle if the action or failure to act relates to compliance with an environmental law and if there is no gross negligence or bad faith on the part of the trustee. The provision of any instrument governing trustee liability does not increase the liability of the trustee as provided by this section unless the settlor expressly makes reference to this subsection.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scA/s114.001/e">
<num value="e">(e)</num>
<content>The trustee has the same protection from liability provided for a fiduciary under 42 U.S.C. Section 9607(n).</content>
</subsection>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 18, Sec. 13, eff. Oct. 2, 1984; Acts 1989, 71st Leg., ch. 341, Sec. 2, eff. Aug. 28, 1989; Acts 1993, 73rd Leg., ch. 846, Sec. 30, eff. Sept. 1, 1993; Acts 1997, 75th Leg., ch. 263, Sec. 1, eff. Sept. 1, 1997; Acts 2003, 78th Leg., ch. 1103, Sec. 8, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c114/scA/s114.002">
<num value="114.002">Sec. 114.002.</num>
<heading>LIABILITY OF SUCCESSOR TRUSTEE FOR BREACH OF TRUST BY PREDECESSOR</heading>
<chapeau>A successor trustee is liable for a breach of trust of a predecessor only if he knows or should know of a situation constituting a breach of trust committed by the predecessor and the successor trustee:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c114/scA/s114.002/1">
<num value="1">(1)</num>
<content>improperly permits it to continue;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scA/s114.002/2">
<num value="2">(2)</num>
<content>fails to make a reasonable effort to compel the predecessor trustee to deliver the trust property; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scA/s114.002/3">
<num value="3">(3)</num>
<content>fails to make a reasonable effort to compel a redress of a breach of trust committed by the predecessor trustee.</content>
</paragraph>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c114/scA/s114.003">
<num value="114.003">Sec. 114.003.</num>
<heading>POWERS TO DIRECT: CHARITABLE TRUSTS</heading>
<subsection identifier="/us/tx/pr/t9/c114/scA/s114.003/a">
<num value="a">(a)</num>
<content>In this section, "charitable trust" has the meaning assigned by Section 123.001.</content>
<continuation>(a-1) The terms of a charitable trust may give a trustee or other person a power to direct the modification or termination of the trust.</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scA/s114.003/b">
<num value="b">(b)</num>
<chapeau>If the terms of a charitable trust give a person the power to direct certain actions of the trustee, the trustee shall act in accordance with the person's direction unless:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c114/scA/s114.003/1">
<num value="1">(1)</num>
<content>the direction is manifestly contrary to the terms of the trust; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scA/s114.003/2">
<num value="2">(2)</num>
<content>the trustee knows the direction would constitute a serious breach of a fiduciary duty that the person holding the power to direct owes to the beneficiaries of the trust.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scA/s114.003/c">
<num value="c">(c)</num>
<content>A person, other than a beneficiary, who holds a power to direct with respect to a charitable trust is presumptively a fiduciary required to act in good faith with regard to the purposes of the trust and the interests of the beneficiaries. The holder of a power to direct with respect to a charitable trust is liable for any loss that results from a breach of the person's fiduciary duty.</content>
</subsection>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
Amended by:
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 19, eff. January 1, 2006.
Acts 2015, 84th Leg., R.S., Ch. 1108 (H.B. 3190), Sec. 1, eff. June 19, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c114/scA/s114.0031">
<num value="114.0031">Sec. 114.0031.</num>
<heading>DIRECTED TRUSTS; ADVISORS</heading>
<subsection identifier="/us/tx/pr/t9/c114/scA/s114.0031/a">
<num value="a">(a)</num>
<chapeau>In this section:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c114/scA/s114.0031/1">
<num value="1">(1)</num>
<content>"Advisor" includes protector.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scA/s114.0031/2">
<num value="2">(2)</num>
<content>"Investment decision" means, with respect to any investment, the retention, purchase, sale, exchange, tender, or other transaction affecting the ownership of the investment or rights in the investment and, with respect to a nonpublicly traded investment, the valuation of the investment.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scA/s114.0031/b">
<num value="b">(b)</num>
<content>This section does not apply to a charitable trust as defined by Section 123.001.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scA/s114.0031/c">
<num value="c">(c)</num>
<content>For purposes of this section, an advisor with authority with respect to investment decisions is an investment advisor.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scA/s114.0031/d">
<num value="d">(d)</num>
<chapeau>A protector has all the power and authority granted to the protector by the trust terms, which may include:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c114/scA/s114.0031/1">
<num value="1">(1)</num>
<content>the power to remove and appoint trustees, advisors, trust committee members, and other protectors;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scA/s114.0031/2">
<num value="2">(2)</num>
<content>the power to modify or amend the trust terms to achieve favorable tax status or to facilitate the efficient administration of the trust; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scA/s114.0031/3">
<num value="3">(3)</num>
<content>the power to modify, expand, or restrict the terms of a power of appointment granted to a beneficiary by the trust terms.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scA/s114.0031/e">
<num value="e">(e)</num>
<chapeau>If the terms of a trust give a person the authority to direct, consent to, or disapprove a trustee's actual or proposed investment decisions, distribution decisions, or other decisions, the person is an advisor. An advisor is a fiduciary regardless of trust terms to the contrary except that the trust terms may provide that an advisor acts in a nonfiduciary capacity if:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c114/scA/s114.0031/1">
<num value="1">(1)</num>
<content>the advisor's only power is to remove and appoint trustees, advisors, trust committee members, or other protectors; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scA/s114.0031/2">
<num value="2">(2)</num>
<content>the advisor does not exercise that power to appoint the advisor's self to a position described by Subdivision (1).</content>
<continuation>(e-1) Subsection (e) does not prohibit the exercise of a power in a nonfiduciary capacity as required by the Internal Revenue Code for a grantor or other person to be treated as the owner of any portion of the trust for federal income tax purposes.</continuation>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scA/s114.0031/f">
<num value="f">(f)</num>
<content>A trustee who acts in accordance with the direction of an advisor, as prescribed by the trust terms, is not liable, except in cases of wilful misconduct on the part of the trustee so directed, for any loss resulting directly or indirectly from that act.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scA/s114.0031/g">
<num value="g">(g)</num>
<content>If the trust terms provide that a trustee must make decisions with the consent of an advisor, the trustee is not liable, except in cases of wilful misconduct or gross negligence on the part of the trustee, for any loss resulting directly or indirectly from any act taken or not taken as a result of the advisor's failure to provide the required consent after having been requested to do so by the trustee.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scA/s114.0031/h">
<num value="h">(h)</num>
<chapeau>If the trust terms provide that a trustee must act in accordance with the direction of an advisor with respect to investment decisions, distribution decisions, or other decisions of the trustee, the trustee does not, except to the extent the trust terms provide otherwise, have the duty to:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c114/scA/s114.0031/1">
<num value="1">(1)</num>
<content>monitor the conduct of the advisor;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scA/s114.0031/2">
<num value="2">(2)</num>
<content>provide advice to the advisor or consult with the advisor; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scA/s114.0031/3">
<num value="3">(3)</num>
<content>communicate with or warn or apprise any beneficiary or third party concerning instances in which the trustee would or might have exercised the trustee's own discretion in a manner different from the manner directed by the advisor.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scA/s114.0031/i">
<num value="i">(i)</num>
<content>Absent clear and convincing evidence to the contrary, the actions of a trustee pertaining to matters within the scope of the advisor's authority, such as confirming that the advisor's directions have been carried out and recording and reporting actions taken at the advisor's direction, are presumed to be administrative actions taken by the trustee solely to allow the trustee to perform those duties assigned to the trustee under the trust terms, and such administrative actions are not considered to constitute an undertaking by the trustee to monitor the advisor or otherwise participate in actions within the scope of the advisor's authority.</content>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 1108 (H.B. 3190), Sec. 2, eff. June 19, 2015.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 312 (H.B. 2246), Sec. 1, eff. September 1, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c114/scA/s114.004">
<num value="114.004">Sec. 114.004.</num>
<heading>ACTIONS TAKEN PRIOR TO KNOWLEDGE OR NOTICE OF FACTS</heading>
<content>A trustee is not liable for a mistake of fact made before the trustee has actual knowledge or receives written notice of the happening of any event that determines or affects the distribution of the income or principal of the trust, including marriage, divorce, attainment of a certain age, performance of education requirements, or death.</content>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c114/scA/s114.005">
<num value="114.005">Sec. 114.005.</num>
<heading>RELEASE OF LIABILITY BY BENEFICIARY</heading>
<subsection identifier="/us/tx/pr/t9/c114/scA/s114.005/a">
<num value="a">(a)</num>
<content>A beneficiary who has full legal capacity and is acting on full information may relieve a trustee from any duty, responsibility, restriction, or liability as to the beneficiary that would otherwise be imposed on the trustee by this subtitle, including liability for past violations.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scA/s114.005/b">
<num value="b">(b)</num>
<content>The release must be in writing and delivered to the trustee.</content>
</subsection>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 451 (H.B. 564), Sec. 8, eff. September 1, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c114/scA/s114.006">
<num value="114.006">Sec. 114.006.</num>
<heading>LIABILITY OF COTRUSTEES FOR ACTS OF OTHER COTRUSTEES</heading>
<subsection identifier="/us/tx/pr/t9/c114/scA/s114.006/a">
<num value="a">(a)</num>
<content>A trustee who does not join in an action of a cotrustee is not liable for the cotrustee's action, unless the trustee does not exercise reasonable care as provided by Subsection (b).</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scA/s114.006/b">
<num value="b">(b)</num>
<chapeau>Each trustee shall exercise reasonable care to:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c114/scA/s114.006/1">
<num value="1">(1)</num>
<content>prevent a cotrustee from committing a serious breach of trust; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scA/s114.006/2">
<num value="2">(2)</num>
<content>compel a cotrustee to redress a serious breach of trust.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scA/s114.006/c">
<num value="c">(c)</num>
<content>Subject to Subsection (b), a dissenting trustee who joins in an action at the direction of the majority of the trustees and who has notified any cotrustee of the dissent in writing at or before the time of the action is not liable for the action.</content>
</subsection>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
Amended by:
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 20, eff. January 1, 2006.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c114/scA/s114.007">
<num value="114.007">Sec. 114.007.</num>
<heading>EXCULPATION OF TRUSTEE</heading>
<subsection identifier="/us/tx/pr/t9/c114/scA/s114.007/a">
<num value="a">(a)</num>
<chapeau>A term of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that the term relieves a trustee of liability for:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c114/scA/s114.007/1">
<num value="1">(1)</num>
<chapeau>a breach of trust committed:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c114/scA/s114.007/A">
<num value="A">(A)</num>
<content>in bad faith;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c114/scA/s114.007/B">
<num value="B">(B)</num>
<content>intentionally; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c114/scA/s114.007/C">
<num value="C">(C)</num>
<content>with reckless indifference to the interest of a beneficiary; or</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scA/s114.007/2">
<num value="2">(2)</num>
<content>any profit derived by the trustee from a breach of trust.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scA/s114.007/b">
<num value="b">(b)</num>
<content>A term in a trust instrument relieving the trustee of liability for a breach of trust is ineffective to the extent that the term is inserted in the trust instrument as a result of an abuse by the trustee of a fiduciary duty to or confidential relationship with the settlor.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scA/s114.007/c">
<num value="c">(c)</num>
<chapeau>This section applies only to a term of a trust that may otherwise relieve a trustee from liability for a breach of trust. Except as provided in Section 111.0035, this section does not prohibit the settlor, by the terms of the trust, from expressly:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c114/scA/s114.007/1">
<num value="1">(1)</num>
<content>relieving the trustee from a duty or restriction imposed by this subtitle or by common law; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scA/s114.007/2">
<num value="2">(2)</num>
<content>directing or permitting the trustee to do or not to do an action that would otherwise violate a duty or restriction imposed by this subtitle or by common law.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 21, eff. January 1, 2006.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c114/scA/s114.008">
<num value="114.008">Sec. 114.008.</num>
<heading>REMEDIES FOR BREACH OF TRUST</heading>
<subsection identifier="/us/tx/pr/t9/c114/scA/s114.008/a">
<num value="a">(a)</num>
<chapeau>To remedy a breach of trust that has occurred or might occur, the court may:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c114/scA/s114.008/1">
<num value="1">(1)</num>
<content>compel the trustee to perform the trustee's duty or duties;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scA/s114.008/2">
<num value="2">(2)</num>
<content>enjoin the trustee from committing a breach of trust;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scA/s114.008/3">
<num value="3">(3)</num>
<content>compel the trustee to redress a breach of trust, including compelling the trustee to pay money or to restore property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scA/s114.008/4">
<num value="4">(4)</num>
<content>order a trustee to account;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scA/s114.008/5">
<num value="5">(5)</num>
<content>appoint a receiver to take possession of the trust property and administer the trust;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scA/s114.008/6">
<num value="6">(6)</num>
<content>suspend the trustee;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scA/s114.008/7">
<num value="7">(7)</num>
<content>remove the trustee as provided under Section 113.082;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scA/s114.008/8">
<num value="8">(8)</num>
<content>reduce or deny compensation to the trustee;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scA/s114.008/9">
<num value="9">(9)</num>
<content>subject to Subsection (b), void an act of the trustee, impose a lien or a constructive trust on trust property, or trace trust property of which the trustee wrongfully disposed and recover the property or the proceeds from the property; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scA/s114.008/10">
<num value="10">(10)</num>
<content>order any other appropriate relief.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scA/s114.008/b">
<num value="b">(b)</num>
<content>Notwithstanding Subsection (a)(9), a person other than a beneficiary who, without knowledge that a trustee is exceeding or improperly exercising the trustee's powers, in good faith assists a trustee or in good faith and for value deals with a trustee is protected from liability as if the trustee had or properly exercised the power exercised by the trustee.</content>
</subsection>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 21, eff. January 1, 2006.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t9/c114/scB">
<num value="B">SUBCHAPTER B.</num>
<heading>LIABILITY OF BENEFICIARY</heading>
<section identifier="/us/tx/pr/t9/c114/scB/s114.031">
<num value="114.031">Sec. 114.031.</num>
<heading>LIABILITY OF BENEFICIARY TO TRUSTEE</heading>
<subsection identifier="/us/tx/pr/t9/c114/scB/s114.031/a">
<num value="a">(a)</num>
<chapeau>A beneficiary is liable for loss to the trust if the beneficiary has:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c114/scB/s114.031/1">
<num value="1">(1)</num>
<content>misappropriated or otherwise wrongfully dealt with the trust property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scB/s114.031/2">
<num value="2">(2)</num>
<content>expressly consented to, participated in, or agreed with the trustee to be liable for a breach of trust committed by the trustee;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scB/s114.031/3">
<num value="3">(3)</num>
<content>failed to repay an advance or loan of trust funds;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scB/s114.031/4">
<num value="4">(4)</num>
<content>failed to repay a distribution or disbursement from the trust in excess of that to which the beneficiary is entitled; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scB/s114.031/5">
<num value="5">(5)</num>
<content>breached a contract to pay money or deliver property to the trustee to be held by the trustee as part of the trust.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scB/s114.031/b">
<num value="b">(b)</num>
<content>Unless the terms of the trust provide otherwise, the trustee is authorized to offset a liability of the beneficiary to the trust estate against the beneficiary's interest in the trust estate, regardless of a spendthrift provision in the trust.</content>
</subsection>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c114/scB/s114.032">
<num value="114.032">Sec. 114.032.</num>
<heading>LIABILITY FOR WRITTEN AGREEMENTS</heading>
<subsection identifier="/us/tx/pr/t9/c114/scB/s114.032/a">
<num value="a">(a)</num>
<chapeau>A written agreement between a trustee and a beneficiary, including a release, consent, or other agreement relating to a trustee's duty, power, responsibility, restriction, or liability, is final and binding on the beneficiary and any person represented by a beneficiary as provided by this section if:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c114/scB/s114.032/1">
<num value="1">(1)</num>
<content>the instrument is signed by the beneficiary;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scB/s114.032/2">
<num value="2">(2)</num>
<content>the beneficiary has legal capacity to sign the instrument; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scB/s114.032/3">
<num value="3">(3)</num>
<content>the beneficiary has full knowledge of the circumstances surrounding the agreement.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scB/s114.032/b">
<num value="b">(b)</num>
<content>A written agreement signed by a beneficiary who has the power to revoke the trust or the power to appoint, including the power to appoint through a power of amendment, the income or principal of the trust to or for the benefit of the beneficiary, the beneficiary's creditors, the beneficiary's estate, or the creditors of the beneficiary's estate is final and binding on any person who takes under the power of appointment or who takes in default if the power of appointment is not executed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scB/s114.032/c">
<num value="c">(c)</num>
<chapeau>A written instrument is final and binding on a beneficiary who is a minor if:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c114/scB/s114.032/1">
<num value="1">(1)</num>
<content>the minor's parent, including a parent who is also a trust beneficiary, signs the instrument on behalf of the minor;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scB/s114.032/2">
<num value="2">(2)</num>
<content>no conflict of interest exists; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scB/s114.032/3">
<num value="3">(3)</num>
<content>no guardian, including a guardian ad litem, has been appointed to act on behalf of the minor.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scB/s114.032/d">
<num value="d">(d)</num>
<content>A written instrument is final and binding on an unborn or unascertained beneficiary if a beneficiary who has an interest substantially identical to the interest of the unborn or unascertained beneficiary signs the instrument. For purposes of this subsection, an unborn or unascertained beneficiary has a substantially identical interest only with a trust beneficiary from whom the unborn or unascertained beneficiary descends.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scB/s114.032/e">
<num value="e">(e)</num>
<content>This section does not apply to a written instrument that modifies or terminates a trust in whole or in part unless the instrument is otherwise permitted by law.</content>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 794, Sec. 3, eff. Sept. 1, 1999.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t9/c114/scC">
<num value="C">SUBCHAPTER C.</num>
<heading>RIGHTS OF TRUSTEE</heading>
<section identifier="/us/tx/pr/t9/c114/scC/s114.061">
<num value="114.061">Sec. 114.061.</num>
<heading>COMPENSATION</heading>
<subsection identifier="/us/tx/pr/t9/c114/scC/s114.061/a">
<num value="a">(a)</num>
<content>Unless the terms of the trust provide otherwise and except as provided in Subsection (b) of this section, the trustee is entitled to reasonable compensation from the trust for acting as trustee.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scC/s114.061/b">
<num value="b">(b)</num>
<content>If the trustee commits a breach of trust, the court may in its discretion deny him all or part of his compensation.</content>
</subsection>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c114/scC/s114.062">
<num value="114.062">Sec. 114.062.</num>
<heading>EXONERATION OR REIMBURSEMENT FOR TORT</heading>
<subsection identifier="/us/tx/pr/t9/c114/scC/s114.062/a">
<num value="a">(a)</num>
<chapeau>Except as provided in Subsection (b) of this section, a trustee who incurs personal liability for a tort committed in the administration of the trust is entitled to exoneration from the trust property if the trustee has not paid the claim or to reimbursement from the trust property if the trustee has paid the claim, if:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c114/scC/s114.062/1">
<num value="1">(1)</num>
<content>the trustee was properly engaged in a business activity for the trust and the tort is a common incident of that kind of activity;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scC/s114.062/2">
<num value="2">(2)</num>
<content>the trustee was properly engaged in a business activity for the trust and neither the trustee nor an officer or employee of the trustee is guilty of actionable negligence or intentional misconduct in incurring the liability; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scC/s114.062/3">
<num value="3">(3)</num>
<content>the tort increased the value of the trust property.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scC/s114.062/b">
<num value="b">(b)</num>
<content>A trustee who is entitled to exoneration or reimbursement under Subdivision (3) of Subsection (a) is entitled to exoneration or reimbursement only to the extent of the increase in the value of the trust property.</content>
</subsection>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c114/scC/s114.063">
<num value="114.063">Sec. 114.063.</num>
<heading>GENERAL RIGHT TO REIMBURSEMENT</heading>
<subsection identifier="/us/tx/pr/t9/c114/scC/s114.063/a">
<num value="a">(a)</num>
<chapeau>A trustee may discharge or reimburse himself from trust principal or income or partly from both for:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c114/scC/s114.063/1">
<num value="1">(1)</num>
<content>advances made for the convenience, benefit, or protection of the trust or its property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scC/s114.063/2">
<num value="2">(2)</num>
<content>expenses incurred while administering or protecting the trust or because of the trustee's holding or owning any of the trust property; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scC/s114.063/3">
<num value="3">(3)</num>
<content>expenses incurred for any action taken under Section 113.025.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scC/s114.063/b">
<num value="b">(b)</num>
<content>The trustee has a lien against trust property to secure reimbursement under Subsection (a).</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scC/s114.063/c">
<num value="c">(c)</num>
<chapeau>A potential trustee is entitled to reimbursement from trust principal or income or partly from both for reasonable expenses incurred for any action taken under Section 113.025(a) if:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c114/scC/s114.063/1">
<num value="1">(1)</num>
<content>a court orders reimbursement or the potential trustee has entered into a written agreement providing for reimbursement with the personal representative of the estate, the trustee of the trust, the settlor, the settlor's attorney-in-fact, the settlor's personal representative, or the person or entity designated in the trust instrument or will to appoint a trustee; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scC/s114.063/2">
<num value="2">(2)</num>
<content>the potential trustee has been appointed trustee under the terms of the trust instrument or will or has received a written request to accept the trust from the settlor, the settlor's attorney-in-fact, the settlor's personal representative, or the person or entity designated in the trust instrument or will to appoint a trustee.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984. Amended by Acts 1993, 73rd Leg., ch. 846, Sec. 31, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c114/scC/s114.064">
<num value="114.064">Sec. 114.064.</num>
<heading>COSTS</heading>
<subsection identifier="/us/tx/pr/t9/c114/scC/s114.064/a">
<num value="a">(a)</num>
<content>In any proceeding under this code the court may make such award of costs and reasonable and necessary attorney's fees as may seem equitable and just.</content>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 149, Sec. 4, eff. May 24, 1985.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t9/c114/scD">
<num value="D">SUBCHAPTER D.</num>
<heading>THIRD PERSONS</heading>
<section identifier="/us/tx/pr/t9/c114/scD/s114.081">
<num value="114.081">Sec. 114.081.</num>
<heading>PROTECTION OF PERSON DEALING WITH TRUSTEE</heading>
<subsection identifier="/us/tx/pr/t9/c114/scD/s114.081/a">
<num value="a">(a)</num>
<content>A person who deals with a trustee in good faith and for fair value actually received by the trust is not liable to the trustee or the beneficiaries of the trust if the trustee has exceeded the trustee's authority in dealing with the person.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scD/s114.081/b">
<num value="b">(b)</num>
<chapeau>A person other than a beneficiary is not required to inquire into the extent of the trustee's powers or the propriety of the exercise of those powers if the person:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c114/scD/s114.081/1">
<num value="1">(1)</num>
<content>deals with the trustee in good faith; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scD/s114.081/2">
<num value="2">(2)</num>
<chapeau>obtains:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c114/scD/s114.081/A">
<num value="A">(A)</num>
<content>a certification of trust described by Section 114.086; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c114/scD/s114.081/B">
<num value="B">(B)</num>
<content>a copy of the trust instrument.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scD/s114.081/c">
<num value="c">(c)</num>
<content>A person who in good faith delivers money or other assets to a trustee is not required to ensure the proper application of the money or other assets.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scD/s114.081/d">
<num value="d">(d)</num>
<content>A person other than a beneficiary who in good faith assists a former trustee, or who in good faith and for value deals with a former trustee, without knowledge that the trusteeship has terminated, is protected from liability as if the former trustee were still a trustee.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scD/s114.081/e">
<num value="e">(e)</num>
<content>Comparable protective provisions of other laws relating to commercial transactions or transfer of securities by fiduciaries prevail over the protection provided by this section.</content>
</subsection>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 451 (H.B. 564), Sec. 9, eff. September 1, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c114/scD/s114.082">
<num value="114.082">Sec. 114.082.</num>
<heading>CONVEYANCE BY TRUSTEE</heading>
<content>If property is conveyed or transferred to a trustee in trust but the conveyance or transfer does not identify the trust or disclose the names of the beneficiaries, the trustee may convey, transfer, or encumber the title of the property without subsequent question by a person who claims to be a beneficiary under the trust or who claims by, through, or under an undisclosed beneficiary.</content>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984. Amended by Acts 1987, 70th Leg., ch. 683, Sec. 4, eff. Aug. 31, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c114/scD/s114.0821">
<num value="114.0821">Sec. 114.0821.</num>
<heading>LIABILITY OF TRUST PROPERTY</heading>
<content>Although trust property is held by the trustee without identifying the trust or its beneficiaries, the trust property is not liable to satisfy the personal obligations of the trustee.</content>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984. Renumbered from Sec. 114.082(b) by Acts 1987, 70th Leg., ch. 683, Sec. 4, eff. Aug. 31, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c114/scD/s114.083">
<num value="114.083">Sec. 114.083.</num>
<heading>RIGHTS AND LIABILITIES FOR COMMITTING TORTS</heading>
<subsection identifier="/us/tx/pr/t9/c114/scD/s114.083/a">
<num value="a">(a)</num>
<chapeau>A personal liability of a trustee or a predecessor trustee for a tort committed in the course of the administration of the trust may be collected from the trust property if the trustee is sued in a representative capacity and the court finds that:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c114/scD/s114.083/1">
<num value="1">(1)</num>
<content>the trustee was properly engaged in a business activity for the trust and the tort is a common incident of that kind of activity;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scD/s114.083/2">
<num value="2">(2)</num>
<content>the trustee was properly engaged in a business activity for the trust and neither the trustee nor an officer or employee of the trustee is guilty of actionable negligence or intentional misconduct in incurring the liability; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scD/s114.083/3">
<num value="3">(3)</num>
<content>the tort increased the value of the trust property.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scD/s114.083/b">
<num value="b">(b)</num>
<content>A trust that is liable for the trustee's tort under Subdivision (3) of Subsection (a) is liable only to the extent of the permanent increase in value of the trust property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scD/s114.083/c">
<num value="c">(c)</num>
<content>A plaintiff in an action against the trustee as the representative of the trust does not have to prove that the trustee could have been reimbursed by the trust if the trustee had paid the claim.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scD/s114.083/d">
<num value="d">(d)</num>
<content>Subject to the rights of exoneration or reimbursement under Section 114.062, the trustee is personally liable for a tort committed by the trustee or by the trustee's agents or employees in the course of their employment.</content>
</subsection>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c114/scD/s114.084">
<num value="114.084">Sec. 114.084.</num>
<heading>CONTRACTS OF TRUSTEE</heading>
<subsection identifier="/us/tx/pr/t9/c114/scD/s114.084/a">
<num value="a">(a)</num>
<content>If a trustee or a predecessor trustee makes a contract that is within his power as trustee and a cause of action arises on the contract, the plaintiff may sue the trustee in his representative capacity, and a judgment rendered in favor of the plaintiff is collectible by execution against the trust property. The plaintiff may sue the trustee individually if the trustee made the contract and the contract does not exclude the trustee's personal liability.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scD/s114.084/b">
<num value="b">(b)</num>
<content>The addition of "trustee" or "as trustee" after the signature of a trustee who is party to a contract is prima facie evidence of an intent to exclude the trustee from personal liability.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scD/s114.084/c">
<num value="c">(c)</num>
<content>In an action on a contract against a trustee in the trustee's representative capacity the plaintiff does not have to prove that the trustee could have been reimbursed by the trust if the trustee had paid the claim.</content>
</subsection>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c114/scD/s114.085">
<num value="114.085">Sec. 114.085.</num>
<heading>PARTNERSHIPS</heading>
<subsection identifier="/us/tx/pr/t9/c114/scD/s114.085/a">
<num value="a">(a)</num>
<chapeau>To the extent allowed by law, a trustee who takes the place of a deceased partner in a general partnership in accordance with the articles of partnership is liable to third persons only to the extent of the:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c114/scD/s114.085/1">
<num value="1">(1)</num>
<content>deceased partner's capital in the partnership; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scD/s114.085/2">
<num value="2">(2)</num>
<content>trust funds held by the trustee.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scD/s114.085/b">
<num value="b">(b)</num>
<chapeau>A trustee who contracts to enter a general partnership in its capacity as trustee shall limit, to the extent allowed by law, the trust's liability to:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c114/scD/s114.085/1">
<num value="1">(1)</num>
<content>the trust assets contributed to the partnership; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scD/s114.085/2">
<num value="2">(2)</num>
<content>other assets of the trust under the management of the contracting trustee.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scD/s114.085/c">
<num value="c">(c)</num>
<content>If another provision of this subtitle conflicts with this section, this section controls. This section does not exonerate a trustee from liability for negligence.</content>
</subsection>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c114/scD/s114.086">
<num value="114.086">Sec. 114.086.</num>
<heading>CERTIFICATION OF TRUST</heading>
<subsection identifier="/us/tx/pr/t9/c114/scD/s114.086/a">
<num value="a">(a)</num>
<chapeau>As an alternative to providing a copy of the trust instrument to a person other than a beneficiary, the trustee may provide to the person a certification of trust containing the following information:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c114/scD/s114.086/1">
<num value="1">(1)</num>
<content>a statement that the trust exists and the date the trust instrument was executed;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scD/s114.086/2">
<num value="2">(2)</num>
<content>the identity of the settlor;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scD/s114.086/3">
<num value="3">(3)</num>
<content>the identity and mailing address of the currently acting trustee;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scD/s114.086/4">
<num value="4">(4)</num>
<content>one or more powers of the trustee or a statement that the trust powers include at least all the powers granted a trustee by Subchapter A, Chapter 113;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scD/s114.086/5">
<num value="5">(5)</num>
<content>the revocability or irrevocability of the trust and the identity of any person holding a power to revoke the trust;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scD/s114.086/6">
<num value="6">(6)</num>
<content>the authority of cotrustees to sign or otherwise authenticate and whether all or less than all of the cotrustees are required in order to exercise powers of the trustee; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scD/s114.086/7">
<num value="7">(7)</num>
<content>the manner in which title to trust property should be taken.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scD/s114.086/b">
<num value="b">(b)</num>
<content>A certification of trust may be signed or otherwise authenticated by any trustee.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scD/s114.086/c">
<num value="c">(c)</num>
<content>A certification of trust must state that the trust has not been revoked, modified, or amended in any manner that would cause the representations contained in the certification to be incorrect.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scD/s114.086/d">
<num value="d">(d)</num>
<chapeau>A certification of trust:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c114/scD/s114.086/1">
<num value="1">(1)</num>
<content>is not required to contain the dispositive terms of a trust; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scD/s114.086/2">
<num value="2">(2)</num>
<content>may contain information in addition to the information required by Subsection (a).</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scD/s114.086/e">
<num value="e">(e)</num>
<content>A recipient of a certification of trust may require the trustee to furnish copies of the excerpts from the original trust instrument and later amendments to the trust instrument that designate the trustee and confer on the trustee the power to act in the pending transaction.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scD/s114.086/f">
<num value="f">(f)</num>
<content>A person who acts in reliance on a certification of trust without knowledge that the representations contained in the certification are incorrect is not liable to any person for the action and may assume without inquiry the existence of the facts contained in the certification.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scD/s114.086/g">
<num value="g">(g)</num>
<content>If a person has actual knowledge that the trustee is acting outside the scope of the trust, and the actual knowledge was acquired by the person before the person entered into the transaction with the trustee or made a binding commitment to enter into the transaction, the transaction is not enforceable against the trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scD/s114.086/h">
<num value="h">(h)</num>
<chapeau>A person who in good faith enters into a transaction relying on a certification of trust may enforce the transaction against the trust property as if the representations contained in the certification are correct. This section does not create an implication that a person is liable for acting in reliance on a certification of trust that fails to contain all the information required by Subsection (a). A person's failure to demand a certification of trust does not:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c114/scD/s114.086/1">
<num value="1">(1)</num>
<content>affect the protection provided to the person by Section 114.081; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c114/scD/s114.086/2">
<num value="2">(2)</num>
<content>create an inference as to whether the person has acted in good faith.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scD/s114.086/i">
<num value="i">(i)</num>
<content>A person making a demand for the trust instrument in addition to a certification of trust or excerpts as described by Subsection (e) is liable for damages if the court determines that the person did not act in good faith in making the demand.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scD/s114.086/j">
<num value="j">(j)</num>
<content>This section does not limit the right of a person to obtain a copy of the trust instrument in a judicial proceeding concerning the trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scD/s114.086/k">
<num value="k">(k)</num>
<content>This section does not limit the rights of a beneficiary of the trust against the trustee.</content>
</subsection>
<sourceCredit>Added by Acts 2007, 80th Leg., R.S., Ch. 451 (H.B. 564), Sec. 10, eff. September 1, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c114/scD/s114.087">
<num value="114.087">Sec. 114.087.</num>
<heading>INSTRUMENT NAMING TRUST AS PARTY</heading>
<subsection identifier="/us/tx/pr/t9/c114/scD/s114.087/a">
<num value="a">(a)</num>
<content>The trustee of a trust is considered for all purposes to be the named party to an instrument that names the trust as a party to the instrument in any capacity, unless the trust is a legal entity under state law.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scD/s114.087/b">
<num value="b">(b)</num>
<content>Subsection (a) is effective as of the effective date of the original instrument.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scD/s114.087/c">
<num value="c">(c)</num>
<content>The trustee of a trust that is the named party to a recorded instrument may be, but is not required to be, identified by a correction instrument under Section 5.028.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c114/scD/s114.087/d">
<num value="d">(d)</num>
<content>A document purporting to be a certification of trust under Section 114.086 that is recorded in the county in which real property of the trust is located is presumed to correctly identify the trust and the trustee and may be relied upon by a good faith purchaser or lender for value.</content>
</subsection>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 345 (S.B. 801), Sec. 1, eff. September 1, 2023.</sourceCredit>
</section>
</subchapter>
</chapter>
<chapter identifier="/us/tx/pr/t9/c115">
<num value="115">CHAPTER 115.</num>
<heading>JURISDICTION, VENUE, AND PROCEEDINGS</heading>
<subchapter identifier="/us/tx/pr/t9/c115/scA">
<num value="A">SUBCHAPTER A.</num>
<heading>JURISDICTION AND VENUE</heading>
<section identifier="/us/tx/pr/t9/c115/scA/s115.001">
<num value="115.001">Sec. 115.001.</num>
<heading>JURISDICTION</heading>
<subsection identifier="/us/tx/pr/t9/c115/scA/s115.001/a">
<num value="a">(a)</num>
<chapeau>Except as provided by Subsection (d) of this section, a district court has original and exclusive jurisdiction over all proceedings by or against a trustee and all proceedings concerning trusts, including proceedings to:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c115/scA/s115.001/1">
<num value="1">(1)</num>
<content>construe a trust instrument;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c115/scA/s115.001/2">
<num value="2">(2)</num>
<content>determine the law applicable to a trust instrument;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c115/scA/s115.001/3">
<num value="3">(3)</num>
<content>appoint or remove a trustee;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c115/scA/s115.001/4">
<num value="4">(4)</num>
<content>determine the powers, responsibilities, duties, and liability of a trustee;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c115/scA/s115.001/5">
<num value="5">(5)</num>
<content>ascertain beneficiaries;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c115/scA/s115.001/6">
<num value="6">(6)</num>
<content>make determinations of fact affecting the administration, distribution, or duration of a trust;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c115/scA/s115.001/7">
<num value="7">(7)</num>
<content>determine a question arising in the administration or distribution of a trust;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c115/scA/s115.001/8">
<num value="8">(8)</num>
<content>relieve a trustee from any or all of the duties, limitations, and restrictions otherwise existing under the terms of the trust instrument or of this subtitle;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c115/scA/s115.001/9">
<num value="9">(9)</num>
<content>require an accounting by a trustee, review trustee fees, and settle interim or final accounts; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c115/scA/s115.001/10">
<num value="10">(10)</num>
<content>surcharge a trustee.</content>
<continuation>(a-1) The list of proceedings described by Subsection (a) over which a district court has exclusive and original jurisdiction is not exhaustive. A district court has exclusive and original jurisdiction over a proceeding by or against a trustee or a proceeding concerning a trust under Subsection (a) whether or not the proceeding is listed in Subsection (a).</continuation>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c115/scA/s115.001/b">
<num value="b">(b)</num>
<content>The district court may exercise the powers of a court of equity in matters pertaining to trusts.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c115/scA/s115.001/c">
<num value="c">(c)</num>
<content>The court may intervene in the administration of a trust to the extent that the court's jurisdiction is invoked by an interested person or as otherwise provided by law. A trust is not subject to continuing judicial supervision unless the court orders continuing judicial supervision.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c115/scA/s115.001/d">
<num value="d">(d)</num>
<chapeau>The jurisdiction of the district court is exclusive except for jurisdiction conferred by law on:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c115/scA/s115.001/1">
<num value="1">(1)</num>
<content>a statutory probate court;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c115/scA/s115.001/2">
<num value="2">(2)</num>
<content>a court that creates a trust under Subchapter B, Chapter 1301, Estates Code;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c115/scA/s115.001/3">
<num value="3">(3)</num>
<content>a court that creates a trust under Section 142.005;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c115/scA/s115.001/4">
<num value="4">(4)</num>
<content>a justice court under Chapter 27, Government Code; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c115/scA/s115.001/5">
<num value="5">(5)</num>
<content>a county court at law.</content>
</paragraph>
</subsection>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984; Acts 1997, 75th Leg., ch. 1375, Sec. 5, eff. Sept. 1, 1997.
Amended by:
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 22, eff. January 1, 2006.
Acts 2007, 80th Leg., R.S., Ch. 451 (H.B. 564), Sec. 11, eff. September 1, 2007.
Acts 2011, 82nd Leg., R.S., Ch. 657 (S.B. 1197), Sec. 4, eff. September 1, 2011.
Acts 2017, 85th Leg., R.S., Ch. 324 (S.B. 1488), Sec. 22.060, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c115/scA/s115.002">
<num value="115.002">Sec. 115.002.</num>
<heading>VENUE</heading>
<subsection identifier="/us/tx/pr/t9/c115/scA/s115.002/a">
<num value="a">(a)</num>
<content>The venue of an action under Section 115.001 of this Act is determined according to this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c115/scA/s115.002/b">
<num value="b">(b)</num>
<chapeau>If there is a single, noncorporate trustee, an action shall be brought in the county in which:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c115/scA/s115.002/1">
<num value="1">(1)</num>
<content>the trustee resides or has resided at any time during the four-year period preceding the date the action is filed; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c115/scA/s115.002/2">
<num value="2">(2)</num>
<content>the situs of administration of the trust is maintained or has been maintained at any time during the four-year period preceding the date the action is filed.</content>
<continuation>(b-1) If there are multiple trustees none of whom is a corporate trustee and the trustees maintain a principal office in this state, an action shall be brought in the county in which:</continuation>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c115/scA/s115.002/1">
<num value="1">(1)</num>
<content>the situs of administration of the trust is maintained or has been maintained at any time during the four-year period preceding the date the action is filed; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c115/scA/s115.002/2">
<num value="2">(2)</num>
<content>the trustees maintain the principal office.</content>
<continuation>(b-2) If there are multiple trustees none of whom is a corporate trustee and the trustees do not maintain a principal office in this state, an action shall be brought in the county in which:</continuation>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c115/scA/s115.002/1">
<num value="1">(1)</num>
<content>the situs of administration of the trust is maintained or has been maintained at any time during the four-year period preceding the date the action is filed; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c115/scA/s115.002/2">
<num value="2">(2)</num>
<content>any trustee resides or has resided at any time during the four-year period preceding the date the action is filed.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c115/scA/s115.002/c">
<num value="c">(c)</num>
<chapeau>If there are one or more corporate trustees, an action shall be brought in the county in which:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c115/scA/s115.002/1">
<num value="1">(1)</num>
<content>the situs of administration of the trust is maintained or has been maintained at any time during the four-year period preceding the date the action is filed; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c115/scA/s115.002/2">
<num value="2">(2)</num>
<content>any corporate trustee maintains its principal office in this state.</content>
<continuation>(c-1) Notwithstanding Subsections (b), (b-1), (b-2), and (c), if the settlor is deceased and an administration of the settlor's estate is pending in this state, an action involving the interpretation and administration of an inter vivos trust created by the settlor or a testamentary trust created by the settlor's will may be brought:</continuation>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c115/scA/s115.002/1">
<num value="1">(1)</num>
<content>in a county in which venue is proper under Subsection (b), (b-1), (b-2), or (c); or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c115/scA/s115.002/2">
<num value="2">(2)</num>
<content>in the county in which the administration of the settlor's estate is pending.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c115/scA/s115.002/d">
<num value="d">(d)</num>
<chapeau>For just and reasonable cause, including the location of the records and the convenience of the parties and witnesses, the court may transfer an action from a county of proper venue under this section to another county of proper venue:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c115/scA/s115.002/1">
<num value="1">(1)</num>
<content>on motion of a defendant or joined party, filed concurrently with or before the filing of the answer or other initial responsive pleading, and served in accordance with law; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c115/scA/s115.002/2">
<num value="2">(2)</num>
<content>on motion of an intervening party, filed not later than the 20th day after the court signs the order allowing the intervention, and served in accordance with law.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c115/scA/s115.002/e">
<num value="e">(e)</num>
<content>Notwithstanding any other provision of this section, on agreement by all parties the court may transfer an action from a county of proper venue under this section to any other county.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c115/scA/s115.002/f">
<num value="f">(f)</num>
<chapeau>For the purposes of this section:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c115/scA/s115.002/1">
<num value="1">(1)</num>
<content>"Corporate trustee" means an entity organized as a financial institution or a corporation with the authority to act in a fiduciary capacity.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c115/scA/s115.002/2">
<num value="2">(2)</num>
<chapeau>"Principal office" means:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c115/scA/s115.002/A">
<num value="A">(A)</num>
<content>if there are one or more corporate trustees, an office of a corporate trustee in this state where the decision makers for the corporate trustee within this state conduct the daily affairs of the corporate trustee; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c115/scA/s115.002/B">
<num value="B">(B)</num>
<content>if there are multiple trustees, none of which is a corporate trustee, an office in this state that is not maintained within the personal residence of any trustee, and in which one or more trustees conducts the daily affairs of the trustees.</content>
<continuation>(2-a) The mere presence of an agent or representative of a trustee does not establish a principal office as defined by Subdivision (2). The principal office of a corporate trustee or the principal office maintained by multiple noncorporate trustees may also be but is not necessarily the same as the situs of administration of the trust.</continuation>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c115/scA/s115.002/3">
<num value="3">(3)</num>
<content>"Situs of administration" means the location in this state where the trustee maintains the office that is primarily responsible for dealing with the settlor and beneficiaries of the trust. The situs of administration may also be but is not necessarily the same as the principal office of a corporate trustee or the principal office maintained by multiple noncorporate trustees.</content>
</paragraph>
</subsection>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984; Acts 1999, 76th Leg., ch. 344, Sec. 4.026, eff. Sept. 1, 1999; Acts 1999, 76th Leg., ch. 933, Sec. 1, eff. Sept. 1, 1999.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 657 (S.B. 1197), Sec. 5, eff. September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 699 (H.B. 2913), Sec. 5, eff. September 1, 2013.
Acts 2017, 85th Leg., R.S., Ch. 62 (S.B. 617), Sec. 13, eff. September 1, 2017.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t9/c115/scB">
<num value="B">SUBCHAPTER B.</num>
<heading>PARTIES, PROCEDURE, AND JUDGMENTS</heading>
<section identifier="/us/tx/pr/t9/c115/scB/s115.011">
<num value="115.011">Sec. 115.011.</num>
<heading>PARTIES</heading>
<subsection identifier="/us/tx/pr/t9/c115/scB/s115.011/a">
<num value="a">(a)</num>
<content>Any interested person may bring an action under Section 115.001 of this Act.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c115/scB/s115.011/b">
<num value="b">(b)</num>
<chapeau>Contingent beneficiaries designated as a class are not necessary parties to an action under Section 115.001. The only necessary parties to such an action are:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c115/scB/s115.011/1">
<num value="1">(1)</num>
<content>a beneficiary of the trust on whose act or obligation the action is predicated;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c115/scB/s115.011/2">
<num value="2">(2)</num>
<content>a beneficiary of the trust designated by name, other than a beneficiary whose interest has been distributed, extinguished, terminated, or paid;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c115/scB/s115.011/3">
<num value="3">(3)</num>
<content>a person who is actually receiving distributions from the trust estate at the time the action is filed; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c115/scB/s115.011/4">
<num value="4">(4)</num>
<content>the trustee, if a trustee is serving at the time the action is filed.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c115/scB/s115.011/c">
<num value="c">(c)</num>
<content>The attorney general shall be given notice of any proceeding involving a charitable trust as provided by Chapter 123 of this code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c115/scB/s115.011/d">
<num value="d">(d)</num>
<content>A beneficiary of a trust may intervene and contest the right of the plaintiff to recover in an action against the trustee as representative of the trust for a tort committed in the course of the trustee's administration or on a contract executed by the trustee.</content>
</subsection>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984; Acts 1995, 74th Leg., ch. 172, Sec. 1, eff. Sept. 1, 1995.
Amended by:
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 23, eff. January 1, 2006.
Acts 2011, 82nd Leg., R.S., Ch. 657 (S.B. 1197), Sec. 6, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c115/scB/s115.012">
<num value="115.012">Sec. 115.012.</num>
<heading>RULES OF PROCEDURE</heading>
<content>Except as otherwise provided, all actions instituted under this subtitle are governed by the Texas Rules of Civil Procedure and the other statutes and rules that are applicable to civil actions generally.</content>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c115/scB/s115.013">
<num value="115.013">Sec. 115.013.</num>
<heading>PLEADINGS AND JUDGMENTS</heading>
<subsection identifier="/us/tx/pr/t9/c115/scB/s115.013/a">
<num value="a">(a)</num>
<content>Actions and proceedings involving trusts are governed by this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c115/scB/s115.013/b">
<num value="b">(b)</num>
<content>An affected interest shall be described in pleadings that give reasonable information to an owner by name or class, by reference to the instrument creating the interest, or in other appropriate manner.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c115/scB/s115.013/c">
<num value="c">(c)</num>
<chapeau>A person is bound by an order binding another in the following cases:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c115/scB/s115.013/1">
<num value="1">(1)</num>
<content>an order binding the sole holder or all coholders of a power of revocation or a presently exercisable general power of appointment, including one in the form of a power of amendment, binds other persons to the extent their interests, as objects, takers in default, or otherwise are subject to the power;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c115/scB/s115.013/2">
<num value="2">(2)</num>
<chapeau>to the extent there is no conflict of interest between them or among persons represented:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c115/scB/s115.013/A">
<num value="A">(A)</num>
<content>an order binding a guardian of the estate or a guardian ad litem binds the ward; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c115/scB/s115.013/B">
<num value="B">(B)</num>
<content>an order binding a trustee binds beneficiaries of the trust in proceedings to review the acts or accounts of a prior fiduciary and in proceedings involving creditors or other third parties;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c115/scB/s115.013/3">
<num value="3">(3)</num>
<content>if there is no conflict of interest and no guardian of the estate or guardian ad litem has been appointed, a parent may represent his minor child as guardian ad litem or as next friend; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c115/scB/s115.013/4">
<num value="4">(4)</num>
<content>an unborn or unascertained person who is not otherwise represented is bound by an order to the extent his interest is adequately represented by another party having a substantially identical interest in the proceeding.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c115/scB/s115.013/d">
<num value="d">(d)</num>
<content>Notice under Section 115.015 shall be given either to a person who will be bound by the judgment or to one who can bind that person under this section, and notice may be given to both. Notice may be given to unborn or unascertained persons who are not represented under Subdivision (1) or (2) of Subsection (c) by giving notice to all known persons whose interests in the proceedings are substantially identical to those of the unborn or unascertained persons.</content>
</subsection>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 672 (H.B. 2368), Sec. 4, eff. September 1, 2009.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c115/scB/s115.014">
<num value="115.014">Sec. 115.014.</num>
<heading>GUARDIAN OR ATTORNEY AD LITEM</heading>
<subsection identifier="/us/tx/pr/t9/c115/scB/s115.014/a">
<num value="a">(a)</num>
<content>At any point in a proceeding a court may appoint a guardian ad litem to represent the interest of a minor, an incapacitated, unborn, or unascertained person, or person whose identity or address is unknown, if the court determines that representation of the interest otherwise would be inadequate. If there is not a conflict of interests, a guardian ad litem may be appointed to represent several persons or interests.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c115/scB/s115.014/b">
<num value="b">(b)</num>
<content>At any point in a proceeding a court may appoint an attorney ad litem to represent any interest that the court considers necessary, including an attorney ad litem to defend an action under Section 114.083 for a beneficiary of the trust who is a minor or who has been adjudged incompetent, if the court determines that representation of the interest otherwise would be inadequate.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c115/scB/s115.014/c">
<num value="c">(c)</num>
<content>A guardian ad litem may consider general benefit accruing to the living members of a person's family.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c115/scB/s115.014/d">
<num value="d">(d)</num>
<content>A guardian ad litem is entitled to reasonable compensation for services in the amount set by the court to be taxed as costs in the proceeding.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c115/scB/s115.014/e">
<num value="e">(e)</num>
<content>An attorney ad litem is entitled to reasonable compensation for services in the amount set by the court in the manner provided by Section 114.064.</content>
</subsection>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
Amended by:
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 24, eff. January 1, 2006.
Acts 2009, 81st Leg., R.S., Ch. 672 (H.B. 2368), Sec. 5, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 672 (H.B. 2368), Sec. 6, eff. September 1, 2009.
Acts 2023, 88th Leg., R.S., Ch. 446 (H.B. 2196), Sec. 5, eff. June 9, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c115/scB/s115.015">
<num value="115.015">Sec. 115.015.</num>
<heading>NOTICE TO BENEFICIARIES OF TORT OR CONTRACT PROCEEDING</heading>
<subsection identifier="/us/tx/pr/t9/c115/scB/s115.015/a">
<num value="a">(a)</num>
<chapeau>A court may not render judgment in favor of a plaintiff in an action on a contract executed by the trustee or in an action against the trustee as representative of the trust for a tort committed in the course of the trustee's administration unless the plaintiff proves that before the 31st day after the date the action began or within any other period fixed by the court that is more than 30 days before the date of the judgment, the plaintiff gave notice of the existence and nature of the action to:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c115/scB/s115.015/1">
<num value="1">(1)</num>
<content>each beneficiary known to the trustee who then had a present or contingent interest; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c115/scB/s115.015/2">
<num value="2">(2)</num>
<content>in an action on a contract involving a charitable trust, the attorney general and any corporation that is a beneficiary or agency in the performance of the trust.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c115/scB/s115.015/b">
<num value="b">(b)</num>
<content>The plaintiff shall give the notice required by Subsection (a) of this section by registered mail or by certified mail, return receipt requested, addressed to the party to be notified at the party's last known address. The trustee shall give the plaintiff a list of the beneficiaries or persons having an interest in the trust estate and their addresses, if known to the trustee, before the 11th day after the date the plaintiff makes a written request for the information.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c115/scB/s115.015/c">
<num value="c">(c)</num>
<content>The plaintiff satisfies the notice requirements of this section by notifying the persons on the list provided by the trustee.</content>
</subsection>
<sourceCredit>Amended by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c115/scB/s115.016">
<num value="115.016">Sec. 115.016.</num>
<heading>NOTICE</heading>
<subsection identifier="/us/tx/pr/t9/c115/scB/s115.016/a">
<num value="a">(a)</num>
<content>If notice of hearing on a motion or other proceeding is required, the notice may be given in the manner prescribed by law or the Texas Rules of Civil Procedure, or, alternatively, notice may be given to any party or to his attorney if the party has appeared by attorney or requested that notice be sent to his attorney.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c115/scB/s115.016/b">
<num value="b">(b)</num>
<content>If the address or identity of a party is not known and cannot be ascertained with reasonable diligence, on order of the court notice may be given by publishing a copy of the notice at least three times in a newspaper having general circulation in the county where the hearing is to be held. The first publication of the notice must be at least 10 days before the time set for the hearing. If there is no newspaper of general circulation in the county where the hearing is to be held, the publication shall be made in a newspaper of general circulation in an adjoining county.</content>
</subsection>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c115/scB/s115.017">
<num value="115.017">Sec. 115.017.</num>
<heading>WAIVER OF NOTICE</heading>
<content>A person, including a guardian of the estate, a guardian ad litem, or other fiduciary, may waive notice by a writing signed by the person or his attorney and filed in the proceedings.</content>
<sourceCredit>Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.</sourceCredit>
</section>
</subchapter>
</chapter>
<chapter identifier="/us/tx/pr/t9/c116">
<num value="116">CHAPTER 116.</num>
<heading>UNIFORM PRINCIPAL AND INCOME ACT</heading>
<subchapter identifier="/us/tx/pr/t9/c116/scA">
<num value="A">SUBCHAPTER A.</num>
<heading>DEFINITIONS, FIDUCIARY DUTIES, AND OTHER MISCELLANEOUS PROVISIONS</heading>
<section identifier="/us/tx/pr/t9/c116/scA/s116.001">
<num value="116.001">Sec. 116.001.</num>
<heading>SHORT TITLE</heading>
<content>This chapter may be cited as the Uniform Principal and Income Act.</content>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c116/scA/s116.002">
<num value="116.002">Sec. 116.002.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.002/1">
<num value="1">(1)</num>
<content>"Accounting period" means a calendar year unless another 12-month period is selected by a fiduciary. The term includes a portion of a calendar year or other 12-month period that begins when an income interest begins or ends when an income interest ends.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.002/2">
<num value="2">(2)</num>
<content>"Beneficiary" includes, in the case of a decedent's estate, an heir, legatee, and devisee and, in the case of a trust, an income beneficiary and a remainder beneficiary.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.002/3">
<num value="3">(3)</num>
<content>"Fiduciary" means a personal representative or a trustee. The term includes an executor, administrator, successor personal representative, special administrator, and a person performing substantially the same function.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.002/4">
<num value="4">(4)</num>
<content>"Income" means money or property that a fiduciary receives as current return from a principal asset. The term includes a portion of receipts from a sale, exchange, or liquidation of a principal asset, to the extent provided in Subchapter D.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.002/5">
<num value="5">(5)</num>
<content>"Income beneficiary" means a person to whom net income of a trust is or may be payable.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.002/6">
<num value="6">(6)</num>
<content>"Income interest" means the right of an income beneficiary to receive all or part of net income, whether the terms of the trust require it to be distributed or authorize it to be distributed in the trustee's discretion.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.002/7">
<num value="7">(7)</num>
<content>"Mandatory income interest" means the right of an income beneficiary to receive net income that the terms of the trust require the fiduciary to distribute.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.002/8">
<num value="8">(8)</num>
<content>"Net income" means the total receipts allocated to income during an accounting period minus the disbursements made from income during the period, plus or minus transfers under this chapter to or from income during the period.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.002/9">
<num value="9">(9)</num>
<content>"Person" has the meaning assigned by Section 111.004.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.002/10">
<num value="10">(10)</num>
<content>"Principal" means property held in trust for distribution to a remainder beneficiary when the trust terminates.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.002/11">
<num value="11">(11)</num>
<content>"Remainder beneficiary" means a person entitled to receive principal when an income interest ends.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.002/12">
<num value="12">(12)</num>
<content>"Terms of a trust" means the manifestation of the intent of a settlor or decedent with respect to the trust, expressed in a manner that admits of its proof in a judicial proceeding, whether by written or spoken words or by conduct.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.002/13">
<num value="13">(13)</num>
<content>"Trustee" has the meaning assigned by Section 111.004.</content>
</paragraph>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 451 (H.B. 564), Sec. 12, eff. September 1, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c116/scA/s116.003">
<num value="116.003">Sec. 116.003.</num>
<heading>UNIFORMITY OF APPLICATION AND CONSTRUCTION</heading>
<content>In applying and construing this Uniform Act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.</content>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c116/scA/s116.004">
<num value="116.004">Sec. 116.004.</num>
<heading>FIDUCIARY DUTIES; GENERAL PRINCIPLES</heading>
<subsection identifier="/us/tx/pr/t9/c116/scA/s116.004/a">
<num value="a">(a)</num>
<chapeau>In allocating receipts and disbursements to or between principal and income, and with respect to any matter within the scope of Subchapters B and C, a fiduciary:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.004/1">
<num value="1">(1)</num>
<content>shall administer a trust or estate in accordance with the terms of the trust or the will, even if there is a different provision in this chapter;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.004/2">
<num value="2">(2)</num>
<content>may administer a trust or estate by the exercise of a discretionary power of administration given to the fiduciary by the terms of the trust or the will, even if the exercise of the power produces a result different from a result required or permitted by this chapter;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.004/3">
<num value="3">(3)</num>
<content>shall administer a trust or estate in accordance with this chapter if the terms of the trust or the will do not contain a different provision or do not give the fiduciary a discretionary power of administration; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.004/4">
<num value="4">(4)</num>
<content>shall add a receipt or charge a disbursement to principal to the extent that the terms of the trust and this chapter do not provide a rule for allocating the receipt or disbursement to or between principal and income.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scA/s116.004/b">
<num value="b">(b)</num>
<content>In exercising the power to adjust under Section 116.005(a) or a discretionary power of administration regarding a matter within the scope of this chapter, whether granted by the terms of a trust, a will, or this chapter, a fiduciary shall administer a trust or estate impartially, based on what is fair and reasonable to all of the beneficiaries, except to the extent that the terms of the trust or the will clearly manifest an intention that the fiduciary shall or may favor one or more of the beneficiaries. A determination in accordance with this chapter is presumed to be fair and reasonable to all of the beneficiaries.</content>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c116/scA/s116.005">
<num value="116.005">Sec. 116.005.</num>
<heading>TRUSTEE'S POWER TO ADJUST</heading>
<subsection identifier="/us/tx/pr/t9/c116/scA/s116.005/a">
<num value="a">(a)</num>
<content>A trustee may adjust between principal and income to the extent the trustee considers necessary if the trustee invests and manages trust assets as a prudent investor, the terms of the trust describe the amount that may or must be distributed to a beneficiary by referring to the trust's income, and the trustee determines, after applying the rules in Section 116.004(a), that the trustee is unable to comply with Section 116.004(b). The power to adjust conferred by this subsection includes the power to allocate all or part of a capital gain to trust income.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scA/s116.005/b">
<num value="b">(b)</num>
<chapeau>In deciding whether and to what extent to exercise the power conferred by Subsection (a), a trustee shall consider all factors relevant to the trust and its beneficiaries, including the following factors to the extent they are relevant:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.005/1">
<num value="1">(1)</num>
<content>the nature, purpose, and expected duration of the trust;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.005/2">
<num value="2">(2)</num>
<content>the intent of the settlor;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.005/3">
<num value="3">(3)</num>
<content>the identity and circumstances of the beneficiaries;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.005/4">
<num value="4">(4)</num>
<content>the needs for liquidity, regularity of income, and preservation and appreciation of capital;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.005/5">
<num value="5">(5)</num>
<content>the assets held in the trust; the extent to which they consist of financial assets, interests in closely held enterprises, tangible and intangible personal property, or real property; the extent to which an asset is used by a beneficiary; and whether an asset was purchased by the trustee or received from the settlor;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.005/6">
<num value="6">(6)</num>
<content>the net amount allocated to income under the other sections of this chapter and the increase or decrease in the value of the principal assets, which the trustee may estimate as to assets for which market values are not readily available;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.005/7">
<num value="7">(7)</num>
<content>whether and to what extent the terms of the trust give the trustee the power to invade principal or accumulate income or prohibit the trustee from invading principal or accumulating income, and the extent to which the trustee has exercised a power from time to time to invade principal or accumulate income;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.005/8">
<num value="8">(8)</num>
<content>the actual and anticipated effect of economic conditions on principal and income and effects of inflation and deflation; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.005/9">
<num value="9">(9)</num>
<content>the anticipated tax consequences of an adjustment.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scA/s116.005/c">
<num value="c">(c)</num>
<chapeau>A trustee may not make an adjustment:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.005/1">
<num value="1">(1)</num>
<content>that reduces the actuarial value of the income interest in a trust to which a person transfers property with the intent to qualify for a gift tax exclusion;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.005/2">
<num value="2">(2)</num>
<content>that changes the amount payable to a beneficiary as a fixed annuity or a fixed fraction of the value of the trust assets;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.005/3">
<num value="3">(3)</num>
<content>from any amount that is permanently set aside for charitable purposes under a will or the terms of a trust unless both income and principal are so set aside;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.005/4">
<num value="4">(4)</num>
<content>if possessing or exercising the power to make an adjustment causes an individual to be treated as the owner of all or part of the trust for income tax purposes, and the individual would not be treated as the owner if the trustee did not possess the power to make an adjustment;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.005/5">
<num value="5">(5)</num>
<content>if possessing or exercising the power to make an adjustment causes all or part of the trust assets to be included for estate tax purposes in the estate of an individual who has the power to remove a trustee or appoint a trustee, or both, and the assets would not be included in the estate of the individual if the trustee did not possess the power to make an adjustment;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.005/6">
<num value="6">(6)</num>
<content>if the trustee is a beneficiary of the trust; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.005/7">
<num value="7">(7)</num>
<content>if the trustee is not a beneficiary, but the adjustment would benefit the trustee directly or indirectly.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scA/s116.005/d">
<num value="d">(d)</num>
<content>If Subsection (c)(4), (5), (6), or (7) applies to a trustee and there is more than one trustee, a cotrustee to whom the provision does not apply may make the adjustment unless the exercise of the power by the remaining trustee or trustees is not permitted by the terms of the trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scA/s116.005/e">
<num value="e">(e)</num>
<content>A trustee may release the entire power conferred by Subsection (a) or may release only the power to adjust from income to principal or the power to adjust from principal to income if the trustee is uncertain about whether possessing or exercising the power will cause a result described in Subsections (c)(1)-(5) or Subsection (c)(7) or if the trustee determines that possessing or exercising the power will or may deprive the trust of a tax benefit or impose a tax burden not described in Subsection (c). The release may be permanent or for a specified period, including a period measured by the life of an individual.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scA/s116.005/f">
<num value="f">(f)</num>
<content>Terms of a trust that limit the power of a trustee to make an adjustment between principal and income do not affect the application of this section unless it is clear from the terms of the trust that the terms are intended to deny the trustee the power of adjustment conferred by Subsection (a).</content>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.
Amended by:
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 25, eff. January 1, 2006.
Acts 2011, 82nd Leg., R.S., Ch. 91 (S.B. 1303), Sec. 21.002, eff. September 1, 2011.
Acts 2011, 82nd Leg., R.S., Ch. 657 (S.B. 1197), Sec. 7, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c116/scA/s116.006">
<num value="116.006">Sec. 116.006.</num>
<heading>JUDICIAL CONTROL OF DISCRETIONARY POWER</heading>
<subsection identifier="/us/tx/pr/t9/c116/scA/s116.006/a">
<num value="a">(a)</num>
<content>The court may not order a trustee to change a decision to exercise or not to exercise a discretionary power conferred by Section 116.005 of this chapter unless the court determines that the decision was an abuse of the trustee's discretion. A trustee's decision is not an abuse of discretion merely because the court would have exercised the power in a different manner or would not have exercised the power.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scA/s116.006/b">
<num value="b">(b)</num>
<chapeau>The decisions to which Subsection (a) applies include:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.006/1">
<num value="1">(1)</num>
<content>a decision under Section 116.005(a) as to whether and to what extent an amount should be transferred from principal to income or from income to principal; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.006/2">
<num value="2">(2)</num>
<content>a decision regarding the factors that are relevant to the trust and its beneficiaries, the extent to which the factors are relevant, and the weight, if any, to be given to those factors in deciding whether and to what extent to exercise the discretionary power conferred by Section 116.005(a).</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scA/s116.006/c">
<num value="c">(c)</num>
<chapeau>If the court determines that a trustee has abused the trustee's discretion, the court may place the income and remainder beneficiaries in the positions they would have occupied if the discretion had not been abused, according to the following rules:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.006/1">
<num value="1">(1)</num>
<content>to the extent that the abuse of discretion has resulted in no distribution to a beneficiary or in a distribution that is too small, the court shall order the trustee to distribute from the trust to the beneficiary an amount that the court determines will restore the beneficiary, in whole or in part, to the beneficiary's appropriate position;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.006/2">
<num value="2">(2)</num>
<content>to the extent that the abuse of discretion has resulted in a distribution to a beneficiary which is too large, the court shall place the beneficiaries, the trust, or both, in whole or in part, in their appropriate positions by ordering the trustee to withhold an amount from one or more future distributions to the beneficiary who received the distribution that was too large or ordering that beneficiary to return some or all of the distribution to the trust; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.006/3">
<num value="3">(3)</num>
<content>to the extent that the court is unable, after applying Subdivisions (1) and (2), to place the beneficiaries, the trust, or both, in the positions they would have occupied if the discretion had not been abused, the court may order the trustee to pay an appropriate amount from its own funds to one or more of the beneficiaries or the trust or both.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scA/s116.006/d">
<num value="d">(d)</num>
<content>If the trustee of a trust reasonably believes that one or more beneficiaries of such trust will object to the manner in which the trustee intends to exercise or not exercise a discretionary power conferred by Section 116.005, the trustee may petition the court having jurisdiction over the trust, and the court shall determine whether the proposed exercise or nonexercise by the trustee of such discretionary power will result in an abuse of the trustee's discretion. The trustee shall state in such petition the basis for its belief that a beneficiary would object. The failure or refusal of a beneficiary to sign a waiver or release is not reasonable grounds for a trustee to believe the beneficiary will object. The court may appoint one or more guardians ad litem or attorneys ad litem pursuant to Section 115.014. If the petition describes the proposed exercise or nonexercise of the power and contains sufficient information to inform the beneficiaries of the reasons for the proposal, the facts upon which the trustee relies, and an explanation of how the income and remainder beneficiaries will be affected by the proposed exercise or nonexercise of the power, a beneficiary who challenges the proposed exercise or nonexercise has the burden of establishing that it will result in an abuse of discretion. The trustee shall advance from the trust principal all costs incident to the judicial determination, including the reasonable attorney's fees and costs of the trustee, any beneficiary or beneficiaries who are parties to the action and who retain counsel, any guardian ad litem, and any attorney ad litem. At the conclusion of the proceeding, the court may award costs and reasonable and necessary attorney's fees as provided in Section 114.064, including, if the court considers it appropriate, awarding part or all of such costs against the trust principal or income, awarding part or all of such costs against one or more beneficiaries or such beneficiary's or beneficiaries' share of the trust, or awarding part or all of such costs against the trustee in the trustee's individual capacity, if the court determines that the trustee's exercise or nonexercise of discretionary power would have resulted in an abuse of discretion or that the trustee did not have reasonable grounds for believing one or more beneficiaries would object to the proposed exercise or nonexercise of the discretionary power.</content>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 672 (H.B. 2368), Sec. 7, eff. September 1, 2009.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c116/scA/s116.007">
<num value="116.007">Sec. 116.007.</num>
<heading>PROVISIONS REGARDING NONCHARITABLE UNITRUSTS</heading>
<subsection identifier="/us/tx/pr/t9/c116/scA/s116.007/a">
<num value="a">(a)</num>
<content>This section does not apply to a charitable remainder unitrust as defined by Section 664(d), Internal Revenue Code of 1986 (26 U.S.C. Section 664), as amended.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scA/s116.007/b">
<num value="b">(b)</num>
<chapeau>In this section:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.007/1">
<num value="1">(1)</num>
<content>"Unitrust" means a trust the terms of which require distribution of a unitrust amount.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.007/2">
<num value="2">(2)</num>
<content>"Unitrust amount" means a distribution mandated by the terms of a trust in an amount equal to a fixed percentage of not less than three or more than five percent per year of the net fair market value of the trust's assets, valued at least annually. The unitrust amount may be determined by reference to the net fair market value of the trust's assets in one year or more than one year.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scA/s116.007/c">
<num value="c">(c)</num>
<content>Distribution of the unitrust amount is considered a distribution of all of the income of the unitrust and shall not be considered a fundamental departure from applicable state law. A distribution of the unitrust amount reasonably apportions the total return of a unitrust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scA/s116.007/d">
<num value="d">(d)</num>
<chapeau>Unless the terms of the trust specifically provide otherwise, a distribution of the unitrust amount shall be treated as first being made from the following sources in order of priority:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.007/1">
<num value="1">(1)</num>
<content>from net accounting income determined as if the trust were not a unitrust;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.007/2">
<num value="2">(2)</num>
<content>from ordinary accounting income not allocable to net accounting income;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.007/3">
<num value="3">(3)</num>
<content>from net realized short-term capital gains;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.007/4">
<num value="4">(4)</num>
<content>from net realized long-term capital gains; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scA/s116.007/5">
<num value="5">(5)</num>
<content>from the principal of the trust estate.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t9/c116/scB">
<num value="B">SUBCHAPTER B.</num>
<heading>DECEDENT'S ESTATE OR TERMINATING INCOME INTEREST</heading>
<section identifier="/us/tx/pr/t9/c116/scB/s116.051">
<num value="116.051">Sec. 116.051.</num>
<heading>DETERMINATION AND DISTRIBUTION OF NET INCOME</heading>
<chapeau>After a decedent dies, in the case of an estate, or after an income interest in a trust ends, the following rules apply:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c116/scB/s116.051/1">
<num value="1">(1)</num>
<content>A fiduciary of an estate or of a terminating income interest shall determine the amount of net income and net principal receipts received from property specifically given to a beneficiary under the rules in Subchapters C, D, and E which apply to trustees and the rules in Subdivision (5). The fiduciary shall distribute the net income and net principal receipts to the beneficiary who is to receive the specific property.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scB/s116.051/2">
<num value="2">(2)</num>
<chapeau>A fiduciary shall determine the remaining net income of a decedent's estate or a terminating income interest under the rules in Subchapters C, D, and E which apply to trustees and by:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c116/scB/s116.051/A">
<num value="A">(A)</num>
<content>including in net income all income from property used to discharge liabilities;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c116/scB/s116.051/B">
<num value="B">(B)</num>
<content>paying from income or principal, in the fiduciary's discretion, fees of attorneys, accountants, and fiduciaries; court costs and other expenses of administration; and interest on death taxes, but the fiduciary may pay those expenses from income of property passing to a trust for which the fiduciary claims an estate tax marital or charitable deduction only to the extent that the payment of those expenses from income will not cause the reduction or loss of the deduction; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c116/scB/s116.051/C">
<num value="C">(C)</num>
<content>paying from principal all other disbursements made or incurred in connection with the settlement of a decedent's estate or the winding up of a terminating income interest, including debts, funeral expenses, disposition of remains, family allowances, and death taxes and related penalties that are apportioned to the estate or terminating income interest by the will, the terms of the trust, or applicable law.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scB/s116.051/3">
<num value="3">(3)</num>
<chapeau>A fiduciary shall distribute to a beneficiary who receives a pecuniary amount outright the interest or any other amount provided by the will, the terms of the trust, or applicable law from net income determined under Subdivision (2) or from principal to the extent that net income is insufficient. If a beneficiary is to receive a pecuniary amount outright from a trust after an income interest ends and no interest or other amount is provided for by the terms of the trust or applicable law, the fiduciary shall distribute the interest or other amount to which the beneficiary would be entitled under applicable law if the pecuniary amount were required to be paid under a will. Unless otherwise provided by the will or the terms of the trust, a beneficiary who receives a pecuniary amount, regardless of whether in trust, shall be paid interest on the pecuniary amount at the legal rate of interest as provided by Section 302.002, Finance Code. Interest on the pecuniary amount is payable:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c116/scB/s116.051/A">
<num value="A">(A)</num>
<content>under a will, beginning on the first anniversary of the date of the decedent's death; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c116/scB/s116.051/B">
<num value="B">(B)</num>
<content>under a trust, beginning on the first anniversary of the date on which an income interest ends.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scB/s116.051/4">
<num value="4">(4)</num>
<content>A fiduciary shall distribute the net income remaining after distributions required by Subdivision (3) in the manner described in Section 116.052 to all other beneficiaries even if the beneficiary holds an unqualified power to withdraw assets from the trust or other presently exercisable general power of appointment over the trust.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scB/s116.051/5">
<num value="5">(5)</num>
<content>A fiduciary may not reduce principal or income receipts from property described in Subdivision (1) because of a payment described in Section 116.201 or 116.202 to the extent that the will, the terms of the trust, or applicable law requires the fiduciary to make the payment from assets other than the property or to the extent that the fiduciary recovers or expects to recover the payment from a third party. The net income and principal receipts from the property are determined by including all of the amounts the fiduciary receives or pays with respect to the property, whether those amounts accrued or became due before, on, or after the date of a decedent's death or an income interest's terminating event, and by making a reasonable provision for amounts that the fiduciary believes the estate or terminating income interest may become obligated to pay after the property is distributed.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scB/s116.051/6">
<num value="6">(6)</num>
<content>A fiduciary, without reduction for taxes, shall pay to a charitable organization that is entitled to receive income under Subdivision (4) any amount allowed as a tax deduction to the estate or trust for income payable to the charitable organization.</content>
</paragraph>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c116/scB/s116.052">
<num value="116.052">Sec. 116.052.</num>
<heading>DISTRIBUTION TO RESIDUARY AND REMAINDER BENEFICIARIES</heading>
<subsection identifier="/us/tx/pr/t9/c116/scB/s116.052/a">
<num value="a">(a)</num>
<content>Each beneficiary described in Section 116.051(4) is entitled to receive a portion of the net income equal to the beneficiary's fractional interest in undistributed principal assets, using values as of the distribution date. If a fiduciary makes more than one distribution of assets to beneficiaries to whom this section applies, each beneficiary, including one who does not receive part of the distribution, is entitled, as of each distribution date, to the net income the fiduciary has received after the date of death or terminating event or earlier distribution date but has not distributed as of the current distribution date.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scB/s116.052/b">
<num value="b">(b)</num>
<chapeau>In determining a beneficiary's share of net income, the following rules apply:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c116/scB/s116.052/1">
<num value="1">(1)</num>
<content>The beneficiary is entitled to receive a portion of the net income equal to the beneficiary's fractional interest in the undistributed principal assets immediately before the distribution date, including assets that later may be sold to meet principal obligations.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scB/s116.052/2">
<num value="2">(2)</num>
<content>The beneficiary's fractional interest in the undistributed principal assets must be calculated without regard to property specifically given to a beneficiary and property required to pay pecuniary amounts not in trust.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scB/s116.052/3">
<num value="3">(3)</num>
<content>The beneficiary's fractional interest in the undistributed principal assets must be calculated on the basis of the aggregate value of those assets as of the distribution date without reducing the value by any unpaid principal obligation.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scB/s116.052/4">
<num value="4">(4)</num>
<content>The distribution date for purposes of this section may be the date as of which the fiduciary calculates the value of the assets if that date is reasonably near the date on which assets are actually distributed.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scB/s116.052/c">
<num value="c">(c)</num>
<content>If a fiduciary does not distribute all of the collected but undistributed net income to each person as of a distribution date, the fiduciary shall maintain appropriate records showing the interest of each beneficiary in that net income.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scB/s116.052/d">
<num value="d">(d)</num>
<content>A fiduciary may apply the rules in this section, to the extent that the fiduciary considers it appropriate, to net gain or loss realized after the date of death or terminating event or earlier distribution date from the disposition of a principal asset if this section applies to the income from the asset.</content>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t9/c116/scC">
<num value="C">SUBCHAPTER C.</num>
<heading>APPORTIONMENT AT BEGINNING AND END OF INCOME INTEREST</heading>
<section identifier="/us/tx/pr/t9/c116/scC/s116.101">
<num value="116.101">Sec. 116.101.</num>
<heading>WHEN RIGHT TO INCOME BEGINS AND ENDS</heading>
<subsection identifier="/us/tx/pr/t9/c116/scC/s116.101/a">
<num value="a">(a)</num>
<content>An income beneficiary is entitled to net income from the date on which the income interest begins. An income interest begins on the date specified in the terms of the trust or, if no date is specified, on the date an asset becomes subject to a trust or successive income interest.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scC/s116.101/b">
<num value="b">(b)</num>
<chapeau>An asset becomes subject to a trust:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c116/scC/s116.101/1">
<num value="1">(1)</num>
<content>on the date it is transferred to the trust in the case of an asset that is transferred to a trust during the transferor's life;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scC/s116.101/2">
<num value="2">(2)</num>
<content>on the date of a testator's death in the case of an asset that becomes subject to a trust by reason of a will, even if there is an intervening period of administration of the testator's estate; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scC/s116.101/3">
<num value="3">(3)</num>
<content>on the date of an individual's death in the case of an asset that is transferred to a fiduciary by a third party because of the individual's death.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scC/s116.101/c">
<num value="c">(c)</num>
<content>An asset becomes subject to a successive income interest on the day after the preceding income interest ends, as determined under Subsection (d), even if there is an intervening period of administration to wind up the preceding income interest.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scC/s116.101/d">
<num value="d">(d)</num>
<content>An income interest ends on the day before an income beneficiary dies or another terminating event occurs, or on the last day of a period during which there is no beneficiary to whom a trustee may distribute income.</content>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c116/scC/s116.102">
<num value="116.102">Sec. 116.102.</num>
<heading>APPORTIONMENT OF RECEIPTS AND DISBURSEMENTS WHEN DECEDENT DIES OR INCOME INTEREST BEGINS</heading>
<subsection identifier="/us/tx/pr/t9/c116/scC/s116.102/a">
<num value="a">(a)</num>
<content>A trustee shall allocate an income receipt or disbursement other than one to which Section 116.051(1) applies to principal if its due date occurs before a decedent dies in the case of an estate or before an income interest begins in the case of a trust or successive income interest.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scC/s116.102/b">
<num value="b">(b)</num>
<content>A trustee shall allocate an income receipt or disbursement to income if its due date occurs on or after the date on which a decedent dies or an income interest begins and it is a periodic due date. An income receipt or disbursement must be treated as accruing from day to day if its due date is not periodic or it has no due date. The portion of the receipt or disbursement accruing before the date on which a decedent dies or an income interest begins must be allocated to principal and the balance must be allocated to income.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scC/s116.102/c">
<num value="c">(c)</num>
<content>An item of income or an obligation is due on the date the payer is required to make a payment. If a payment date is not stated, there is no due date for the purposes of this chapter. Distributions to shareholders or other owners from an entity to which Section 116.151 applies are deemed to be due on the date fixed by the entity for determining who is entitled to receive the distribution or, if no date is fixed, on the declaration date for the distribution. A due date is periodic for receipts or disbursements that must be paid at regular intervals under a lease or an obligation to pay interest or if an entity customarily makes distributions at regular intervals.</content>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c116/scC/s116.103">
<num value="116.103">Sec. 116.103.</num>
<heading>APPORTIONMENT WHEN INCOME INTEREST ENDS</heading>
<subsection identifier="/us/tx/pr/t9/c116/scC/s116.103/a">
<num value="a">(a)</num>
<content>In this section, "undistributed income" means net income received before the date on which an income interest ends. The term does not include an item of income or expense that is due or accrued or net income that has been added or is required to be added to principal under the terms of the trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scC/s116.103/b">
<num value="b">(b)</num>
<content>When a mandatory income interest ends, the trustee shall pay to a mandatory income beneficiary who survives that date, or the estate of a deceased mandatory income beneficiary whose death causes the interest to end, the beneficiary's share of the undistributed income that is not disposed of under the terms of the trust unless the beneficiary has an unqualified power to revoke more than five percent of the trust immediately before the income interest ends. In the latter case, the undistributed income from the portion of the trust that may be revoked must be added to principal.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scC/s116.103/c">
<num value="c">(c)</num>
<content>When a trustee's obligation to pay a fixed annuity or a fixed fraction of the value of the trust's assets ends, the trustee shall prorate the final payment if and to the extent required by applicable law to accomplish a purpose of the trust or its settlor relating to income, gift, estate, or other tax requirements.</content>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t9/c116/scD">
<num value="D">SUBCHAPTER D.</num>
<heading>ALLOCATION OF RECEIPTS DURING ADMINISTRATION OF TRUST</heading>
<section identifier="/us/tx/pr/t9/c116/scD/s63505.54623">
<num value="63505.54623">Sec. 63505.54623.</num>
<heading></heading>
<content>PART 1. RECEIPTS FROM ENTITIES</content>
</section>
<section identifier="/us/tx/pr/t9/c116/scD/s116.151">
<num value="116.151">Sec. 116.151.</num>
<heading>CHARACTER OF RECEIPTS</heading>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.151/a">
<num value="a">(a)</num>
<content>In this section, "entity" means a corporation, partnership, limited liability company, regulated investment company, real estate investment trust, common trust fund, or any other organization in which a trustee has an interest other than a trust or estate to which Section 116.152 applies, a business or activity to which Section 116.153 applies, or an asset-backed security to which Section 116.178 applies.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.151/b">
<num value="b">(b)</num>
<content>Except as otherwise provided in this section, a trustee shall allocate to income money received from an entity.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.151/c">
<num value="c">(c)</num>
<chapeau>A trustee shall allocate the following receipts from an entity to principal:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c116/scD/s116.151/1">
<num value="1">(1)</num>
<content>property other than money;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scD/s116.151/2">
<num value="2">(2)</num>
<content>money received in one distribution or a series of related distributions in exchange for part or all of a trust's interest in the entity;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scD/s116.151/3">
<num value="3">(3)</num>
<content>money received in total or partial liquidation of the entity; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scD/s116.151/4">
<num value="4">(4)</num>
<content>money received from an entity that is a regulated investment company or a real estate investment trust if the money distributed is a capital gain dividend for federal income tax purposes.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.151/d">
<num value="d">(d)</num>
<chapeau>Money is received in partial liquidation:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c116/scD/s116.151/1">
<num value="1">(1)</num>
<content>to the extent that the entity, at or near the time of a distribution, indicates that it is a distribution in partial liquidation; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scD/s116.151/2">
<num value="2">(2)</num>
<content>if the total amount of money and property received in a distribution or series of related distributions is greater than 20 percent of the entity's gross assets, as shown by the entity's year-end financial statements immediately preceding the initial receipt.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.151/e">
<num value="e">(e)</num>
<content>Money is not received in partial liquidation, nor may it be taken into account under Subsection (d)(2), to the extent that it does not exceed the amount of income tax that a trustee or beneficiary must pay on taxable income of the entity that distributes the money.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.151/f">
<num value="f">(f)</num>
<content>A trustee may rely upon a statement made by an entity about the source or character of a distribution if the statement is made at or near the time of distribution by the entity's board of directors or other person or group of persons authorized to exercise powers to pay money or transfer property comparable to those of a corporation's board of directors.</content>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c116/scD/s116.152">
<num value="116.152">Sec. 116.152.</num>
<heading>DISTRIBUTION FROM TRUST OR ESTATE</heading>
<content>A trustee shall allocate to income an amount received as a distribution of income from a trust or an estate in which the trust has an interest other than a purchased interest, and shall allocate to principal an amount received as a distribution of principal from such a trust or estate. If a trustee purchases an interest in a trust that is an investment entity, or a decedent or donor transfers an interest in such a trust to a trustee, Section 116.151 or 116.178 applies to a receipt from the trust.</content>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c116/scD/s116.153">
<num value="116.153">Sec. 116.153.</num>
<heading>BUSINESS AND OTHER ACTIVITIES CONDUCTED BY TRUSTEE</heading>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.153/a">
<num value="a">(a)</num>
<content>If a trustee who conducts a business or other activity determines that it is in the best interest of all the beneficiaries to account separately for the business or activity instead of accounting for it as part of the trust's general accounting records, the trustee may maintain separate accounting records for its transactions, whether or not its assets are segregated from other trust assets.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.153/b">
<num value="b">(b)</num>
<content>A trustee who accounts separately for a business or other activity may determine the extent to which its net cash receipts must be retained for working capital, the acquisition or replacement of fixed assets, and other reasonably foreseeable needs of the business or activity, and the extent to which the remaining net cash receipts are accounted for as principal or income in the trust's general accounting records. If a trustee sells assets of the business or other activity, other than in the ordinary course of the business or activity, the trustee shall account for the net amount received as principal in the trust's general accounting records to the extent the trustee determines that the amount received is no longer required in the conduct of the business.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.153/c">
<num value="c">(c)</num>
<chapeau>Activities for which a trustee may maintain separate accounting records include:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c116/scD/s116.153/1">
<num value="1">(1)</num>
<content>retail, manufacturing, service, and other traditional business activities;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scD/s116.153/2">
<num value="2">(2)</num>
<content>farming;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scD/s116.153/3">
<num value="3">(3)</num>
<content>raising and selling livestock and other animals;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scD/s116.153/4">
<num value="4">(4)</num>
<content>management of rental properties;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scD/s116.153/5">
<num value="5">(5)</num>
<content>extraction of minerals and other natural resources;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scD/s116.153/6">
<num value="6">(6)</num>
<content>timber operations; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scD/s116.153/7">
<num value="7">(7)</num>
<content>activities to which Section 116.177 applies.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c116/scD/s63509.54626">
<num value="63509.54626">Sec. 63509.54626.</num>
<heading></heading>
<content>PART 2. RECEIPTS NOT NORMALLY APPORTIONED</content>
</section>
<section identifier="/us/tx/pr/t9/c116/scD/s116.161">
<num value="116.161">Sec. 116.161.</num>
<heading>PRINCIPAL RECEIPTS</heading>
<chapeau>A trustee shall allocate to principal:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c116/scD/s116.161/1">
<num value="1">(1)</num>
<content>to the extent not allocated to income under this chapter, assets received from a transferor during the transferor's lifetime, a decedent's estate, a trust with a terminating income interest, or a payer under a contract naming the trust or its trustee as beneficiary;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scD/s116.161/2">
<num value="2">(2)</num>
<content>money or other property received from the sale, exchange, liquidation, or change in form of a principal asset, including realized profit, subject to this subchapter;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scD/s116.161/3">
<num value="3">(3)</num>
<content>amounts recovered from third parties to reimburse the trust because of disbursements described in Section 116.202(a)(7) or for other reasons to the extent not based on the loss of income;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scD/s116.161/4">
<num value="4">(4)</num>
<content>proceeds of property taken by eminent domain, but a separate award made for the loss of income with respect to an accounting period during which a current income beneficiary had a mandatory income interest is income;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scD/s116.161/5">
<num value="5">(5)</num>
<content>net income received in an accounting period during which there is no beneficiary to whom a trustee may or must distribute income; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scD/s116.161/6">
<num value="6">(6)</num>
<content>other receipts as provided in Part 3.</content>
</paragraph>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c116/scD/s116.162">
<num value="116.162">Sec. 116.162.</num>
<heading>RENTAL PROPERTY</heading>
<content>To the extent that a trustee accounts for receipts from rental property pursuant to this section, the trustee shall allocate to income an amount received as rent of real or personal property, including an amount received for cancellation or renewal of a lease. An amount received as a refundable deposit, including a security deposit or a deposit that is to be applied as rent for future periods, must be added to principal and held subject to the terms of the lease and is not available for distribution to a beneficiary until the trustee's contractual obligations have been satisfied with respect to that amount.</content>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c116/scD/s116.163">
<num value="116.163">Sec. 116.163.</num>
<heading>OBLIGATION TO PAY MONEY</heading>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.163/a">
<num value="a">(a)</num>
<content>An amount received as interest, whether determined at a fixed, variable, or floating rate, on an obligation to pay money to the trustee, including an amount received as consideration for prepaying principal, must be allocated to income without any provision for amortization of premium.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.163/b">
<num value="b">(b)</num>
<content>A trustee shall allocate to principal an amount received from the sale, redemption, or other disposition of an obligation to pay money to the trustee more than one year after it is purchased or acquired by the trustee, including an obligation whose purchase price or value when it is acquired is less than its value at maturity. If the obligation matures within one year after it is purchased or acquired by the trustee, an amount received in excess of its purchase price or its value when acquired by the trust must be allocated to income.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.163/c">
<num value="c">(c)</num>
<content>This section does not apply to an obligation to which Section 116.172, 116.173, 116.174, 116.175, 116.177, or 116.178 applies.</content>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c116/scD/s116.164">
<num value="116.164">Sec. 116.164.</num>
<heading>INSURANCE POLICIES AND SIMILAR CONTRACTS</heading>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.164/a">
<num value="a">(a)</num>
<content>Except as otherwise provided in Subsection (b), a trustee shall allocate to principal the proceeds of a life insurance policy or other contract in which the trust or its trustee is named as beneficiary, including a contract that insures the trust or its trustee against loss for damage to, destruction of, or loss of title to a trust asset. The trustee shall allocate dividends on an insurance policy to income if the premiums on the policy are paid from income, and to principal if the premiums are paid from principal.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.164/b">
<num value="b">(b)</num>
<content>A trustee shall allocate to income proceeds of a contract that insures the trustee against loss of occupancy or other use by an income beneficiary, loss of income, or, subject to Section 116.153, loss of profits from a business.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.164/c">
<num value="c">(c)</num>
<content>This section does not apply to a contract to which Section 116.172 applies.</content>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c116/scD/s63514.54630">
<num value="63514.54630">Sec. 63514.54630.</num>
<heading></heading>
<content>PART 3. RECEIPTS NORMALLY APPORTIONED</content>
</section>
<section identifier="/us/tx/pr/t9/c116/scD/s116.171">
<num value="116.171">Sec. 116.171.</num>
<heading>INSUBSTANTIAL ALLOCATIONS NOT REQUIRED</heading>
<content>If a trustee determines that an allocation between principal and income required by Section 116.172, 116.173, 116.174, 116.175, or 116.178 is insubstantial, the trustee may allocate the entire amount to principal unless one of the circumstances described in Section 116.005(c) applies to the allocation. This power may be exercised by a cotrustee in the circumstances described in Section 116.005(d) and may be released for the reasons and in the manner described in Section 116.005(e).</content>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c116/scD/s116.172">
<num value="116.172">Sec. 116.172.</num>
<heading>DEFERRED COMPENSATION, ANNUITIES, AND SIMILAR PAYMENTS</heading>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.172/a">
<num value="a">(a)</num>
<chapeau>In this section:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c116/scD/s116.172/1">
<num value="1">(1)</num>
<content>"Future payment asset" means the asset from which a payment is derived.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scD/s116.172/2">
<num value="2">(2)</num>
<content>"Payment" means a payment that a trustee may receive over a fixed number of years or during the life of one or more individuals because of services rendered or property transferred to the payer in exchange for future payments. The term includes a payment made in money or property from the payer's general assets or from a separate fund created by the payer.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scD/s116.172/3">
<num value="3">(3)</num>
<content>"Separate fund" includes a private or commercial annuity, an individual retirement account, and a pension, profit-sharing, stock-bonus, or stock-ownership plan.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.172/b">
<num value="b">(b)</num>
<content>To the extent that the payer characterizes a payment as interest or a dividend or a payment made in lieu of interest or a dividend, a trustee shall allocate it to income. The trustee shall allocate to principal the balance of the payment and any other payment received in the same accounting period that is not characterized as interest, a dividend, or an equivalent payment.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.172/c">
<num value="c">(c)</num>
<chapeau>If no part of a payment is characterized as interest, a dividend, or an equivalent payment, and all or part of the payment is required to be made, a trustee shall allocate to income the part of the payment that does not exceed an amount equal to:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c116/scD/s116.172/1">
<num value="1">(1)</num>
<content>four percent of the fair market value of the future payment asset on the date specified in Subsection (d); less</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scD/s116.172/2">
<num value="2">(2)</num>
<content>the total amount that the trustee has allocated to income for all previous payments received from the future payment asset during the same accounting period in which the payment is received.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.172/d">
<num value="d">(d)</num>
<chapeau>For purposes of Subsection (c)(1), the determination of the fair market value of a future payment asset is made on the later of:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c116/scD/s116.172/1">
<num value="1">(1)</num>
<content>the date on which the future payment asset first becomes subject to the trust; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scD/s116.172/2">
<num value="2">(2)</num>
<content>the last day of the accounting period of the trust that immediately precedes the accounting period during which the payment is received.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.172/e">
<num value="e">(e)</num>
<content>For each accounting period a payment is received, the amount determined under Subsection (c)(1) must be prorated on a daily basis unless the determination of the fair market value of a future payment asset is made under Subsection (d)(2) and is for an accounting period of 365 days or more.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.172/f">
<num value="f">(f)</num>
<content>A trustee shall allocate to principal the part of the payment described by Subsection (c) that is not allocated to income.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.172/g">
<num value="g">(g)</num>
<content>If no part of a payment is required to be made or the payment received is the entire amount to which the trustee is entitled, the trustee shall allocate the entire payment to principal. For purposes of Subsection (c) and this subsection, a payment is not "required to be made" to the extent that it is made only because the trustee exercises a right of withdrawal.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.172/h">
<num value="h">(h)</num>
<chapeau>Subsections (j) and (k) apply and Subsections (b) and (c) do not apply in determining the allocation of a payment made from a separate fund to:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c116/scD/s116.172/1">
<num value="1">(1)</num>
<content>a trust to which an election to qualify for a marital deduction under Section 2056(b)(7), Internal Revenue Code of 1986, has been made; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scD/s116.172/2">
<num value="2">(2)</num>
<content>a trust that qualifies for the marital deduction under Section 2056(b)(5), Internal Revenue Code of 1986.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.172/i">
<num value="i">(i)</num>
<content>Subsections (h), (j), and (k) do not apply if and to the extent that a series of payments would, without the application of Subsection (h), qualify for the marital deduction under Section 2056(b)(7)(C), Internal Revenue Code of 1986.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.172/j">
<num value="j">(j)</num>
<content>The trustee shall determine the internal income of the separate fund for the accounting period as if the separate fund were a trust subject to this code. On request of the surviving spouse, the trustee shall demand of the person administering the separate fund that this internal income be distributed to the trust. The trustee shall allocate a payment from the separate fund to income to the extent of the internal income of the separate fund, and the balance to the principal. On request of the surviving spouse, the trustee shall allocate principal to income to the extent the internal income of the separate fund exceeds payments made to the trust during the accounting period from the separate fund.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.172/k">
<num value="k">(k)</num>
<content>If the trustee cannot determine the internal income of the separate fund but can determine the value of the separate fund, the internal income of the separate fund shall be four percent of the fund's value, according to the most recent statement of value preceding the beginning of the accounting period. If the trustee can determine neither the internal income of the separate fund nor the fund's value, the internal income of the fund shall be the product of the interest rate and the present value of the expected future payments, as determined under Section 7520, Internal Revenue Code of 1986, for the month preceding the accounting period for which the computation is made.</content>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.
Amended by:
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 26, eff. January 1, 2006.
Acts 2007, 80th Leg., R.S., Ch. 451 (H.B. 564), Sec. 13, eff. September 1, 2007.
Acts 2009, 81st Leg., R.S., Ch. 672 (H.B. 2368), Sec. 8, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 672 (H.B. 2368), Sec. 9, eff. September 1, 2009.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c116/scD/s116.173">
<num value="116.173">Sec. 116.173.</num>
<heading>LIQUIDATING ASSET</heading>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.173/a">
<num value="a">(a)</num>
<content>In this section, "liquidating asset" means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a period of limited duration. The term includes a leasehold, patent, copyright, royalty right, and right to receive payments during a period of more than one year under an arrangement that does not provide for the payment of interest on the unpaid balance. The term does not include a payment subject to Section 116.172, resources subject to Section 116.174, timber subject to Section 116.175, an activity subject to Section 116.177, an asset subject to Section 116.178, or any asset for which the trustee establishes a reserve for depreciation under Section 116.203.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.173/b">
<num value="b">(b)</num>
<content>A trustee shall allocate to income 10 percent of the receipts from a liquidating asset and the balance to principal.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.173/c">
<num value="c">(c)</num>
<content>The trustee may allocate a receipt from any interest in a liquidating asset the trust owns on January 1, 2004, in the manner provided by this chapter or in any lawful manner used by the trustee before January 1, 2004, to make the same allocation.</content>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c116/scD/s116.174">
<num value="116.174">Sec. 116.174.</num>
<heading>MINERALS, WATER, AND OTHER NATURAL RESOURCES</heading>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.174/a">
<num value="a">(a)</num>
<chapeau>To the extent that a trustee accounts for receipts from an interest in minerals or other natural resources pursuant to this section, the trustee shall allocate them as follows:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c116/scD/s116.174/1">
<num value="1">(1)</num>
<content>If received as delay rental or annual rent on a lease, a receipt must be allocated to income.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scD/s116.174/2">
<num value="2">(2)</num>
<content>If received from a production payment, a receipt must be allocated to income if and to the extent that the agreement creating the production payment provides a factor for interest or its equivalent. The balance must be allocated to principal.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scD/s116.174/3">
<num value="3">(3)</num>
<content>If received as a royalty, shut-in-well payment, take-or-pay payment, or bonus, the trustee shall allocate the receipt equitably.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scD/s116.174/4">
<num value="4">(4)</num>
<content>If an amount is received from a working interest or any other interest not provided for in Subdivision (1), (2), or (3), the trustee must allocate the receipt equitably.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.174/b">
<num value="b">(b)</num>
<content>An amount received on account of an interest in water that is renewable must be allocated to income. If the water is not renewable, the trustee must allocate the receipt equitably.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.174/c">
<num value="c">(c)</num>
<content>This chapter applies whether or not a decedent or donor was extracting minerals, water, or other natural resources before the interest became subject to the trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.174/d">
<num value="d">(d)</num>
<content>The trustee may allocate a receipt from any interest in minerals, water, or other natural resources the trust owns on January 1, 2004, in the manner provided by this chapter or in any lawful manner used by the trustee before January 1, 2004, to make the same allocation. The trustee shall allocate a receipt from any interest in minerals, water, or other natural resources acquired by the trust after January 1, 2004, in the manner provided by this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.174/e">
<num value="e">(e)</num>
<content>An allocation of a receipt under this section is presumed to be equitable if the amount allocated to principal is equal to the amount allowed by the Internal Revenue Code of 1986 as a deduction for depletion of the interest.</content>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 451 (H.B. 564), Sec. 14, eff. September 1, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c116/scD/s116.175">
<num value="116.175">Sec. 116.175.</num>
<heading>TIMBER</heading>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.175/a">
<num value="a">(a)</num>
<chapeau>To the extent that a trustee accounts for receipts from the sale of timber and related products pursuant to this section, the trustee shall allocate the net receipts:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c116/scD/s116.175/1">
<num value="1">(1)</num>
<content>to income to the extent that the amount of timber removed from the land does not exceed the rate of growth of the timber during the accounting periods in which a beneficiary has a mandatory income interest;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scD/s116.175/2">
<num value="2">(2)</num>
<content>to principal to the extent that the amount of timber removed from the land exceeds the rate of growth of the timber or the net receipts are from the sale of standing timber;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scD/s116.175/3">
<num value="3">(3)</num>
<content>to or between income and principal if the net receipts are from the lease of timberland or from a contract to cut timber from land owned by a trust, by determining the amount of timber removed from the land under the lease or contract and applying the rules in Subdivisions (1) and (2); or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scD/s116.175/4">
<num value="4">(4)</num>
<content>to principal to the extent that advance payments, bonuses, and other payments are not allocated pursuant to Subdivision (1), (2), or (3).</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.175/b">
<num value="b">(b)</num>
<content>In determining net receipts to be allocated pursuant to Subsection (a), a trustee shall deduct and transfer to principal a reasonable amount for depletion.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.175/c">
<num value="c">(c)</num>
<content>This chapter applies whether or not a decedent or transferor was harvesting timber from the property before it became subject to the trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.175/d">
<num value="d">(d)</num>
<content>If a trust owns an interest in timberland on January 1, 2004, the trustee may allocate a net receipt from the sale of timber and related products in the manner provided by this chapter or in any lawful manner used by the trustee before January 1, 2004, to make the same allocation. If the trust acquires an interest in timberland after January 1, 2004, the trustee shall allocate net receipts from the sale of timber and related products in the manner provided by this chapter.</content>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c116/scD/s116.176">
<num value="116.176">Sec. 116.176.</num>
<heading>PROPERTY NOT PRODUCTIVE OF INCOME</heading>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.176/a">
<num value="a">(a)</num>
<content>If a marital deduction is allowed for all or part of a trust whose assets consist substantially of property that does not provide the spouse with sufficient income from or use of the trust assets, and if the amounts that the trustee transfers from principal to income under Section 116.005 and distributes to the spouse from principal pursuant to the terms of the trust are insufficient to provide the spouse with the beneficial enjoyment required to obtain the marital deduction, the spouse may require the trustee to make property productive of income, convert property within a reasonable time, or exercise the power conferred by Section 116.005(a). The trustee may decide which action or combination of actions to take.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.176/b">
<num value="b">(b)</num>
<content>In cases not governed by Subsection (a), proceeds from the sale or other disposition of an asset are principal without regard to the amount of income the asset produces during any accounting period.</content>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c116/scD/s116.177">
<num value="116.177">Sec. 116.177.</num>
<heading>DERIVATIVES AND OPTIONS</heading>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.177/a">
<num value="a">(a)</num>
<content>In this section, "derivative" means a contract or financial instrument or a combination of contracts and financial instruments which gives a trust the right or obligation to participate in some or all changes in the price of a tangible or intangible asset or group of assets, or changes in a rate, an index of prices or rates, or other market indicator for an asset or a group of assets.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.177/b">
<num value="b">(b)</num>
<content>To the extent that a trustee does not account under Section 116.153 for transactions in derivatives, the trustee shall allocate to principal receipts from and disbursements made in connection with those transactions.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.177/c">
<num value="c">(c)</num>
<content>If a trustee grants an option to buy property from the trust, whether or not the trust owns the property when the option is granted, grants an option that permits another person to sell property to the trust, or acquires an option to buy property for the trust or an option to sell an asset owned by the trust, and the trustee or other owner of the asset is required to deliver the asset if the option is exercised, an amount received for granting the option must be allocated to principal. An amount paid to acquire the option must be paid from principal. A gain or loss realized upon the exercise of an option, including an option granted to a settlor of the trust for services rendered, must be allocated to principal.</content>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c116/scD/s116.178">
<num value="116.178">Sec. 116.178.</num>
<heading>ASSET-BACKED SECURITIES</heading>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.178/a">
<num value="a">(a)</num>
<content>In this section, "asset-backed security" means an asset whose value is based upon the right it gives the owner to receive distributions from the proceeds of financial assets that provide collateral for the security. The term includes an asset that gives the owner the right to receive from the collateral financial assets only the interest or other current return or only the proceeds other than interest or current return. The term does not include an asset to which Section 116.151 or 116.172 applies.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.178/b">
<num value="b">(b)</num>
<content>If a trust receives a payment from interest or other current return and from other proceeds of the collateral financial assets, the trustee shall allocate to income the portion of the payment which the payer identifies as being from interest or other current return and shall allocate the balance of the payment to principal.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scD/s116.178/c">
<num value="c">(c)</num>
<content>If a trust receives one or more payments in exchange for the trust's entire interest in an asset-backed security in one accounting period, the trustee shall allocate the payments to principal. If a payment is one of a series of payments that will result in the liquidation of the trust's interest in the security over more than one accounting period, the trustee shall allocate 10 percent of the payment to income and the balance to principal.</content>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t9/c116/scE">
<num value="E">SUBCHAPTER E.</num>
<heading>ALLOCATION OF DISBURSEMENTS DURING ADMINISTRATION OF TRUST</heading>
<section identifier="/us/tx/pr/t9/c116/scE/s116.201">
<num value="116.201">Sec. 116.201.</num>
<heading>DISBURSEMENTS FROM INCOME</heading>
<chapeau>A trustee shall make the following disbursements from income to the extent that they are not disbursements to which Section 116.051(2)(B) or (C) applies:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c116/scE/s116.201/1">
<num value="1">(1)</num>
<content>one-half of the regular compensation of the trustee and of any person providing investment advisory or custodial services to the trustee unless, consistent with the trustee's fiduciary duties, the trustee determines that a different portion, none, or all of the compensation should be allocated to income;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scE/s116.201/2">
<num value="2">(2)</num>
<content>one-half of all expenses for accountings, judicial proceedings, or other matters that involve both the income and remainder interests;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scE/s116.201/3">
<num value="3">(3)</num>
<content>all of the other ordinary expenses incurred in connection with the administration, management, or preservation of trust property and the distribution of income, including interest, ordinary repairs, regularly recurring taxes assessed against principal, and expenses of a proceeding or other matter that concerns primarily the income interest; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scE/s116.201/4">
<num value="4">(4)</num>
<content>recurring premiums on insurance covering the loss of a principal asset or the loss of income from or use of the asset.</content>
</paragraph>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 1337 (S.B. 778), Sec. 2, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c116/scE/s116.202">
<num value="116.202">Sec. 116.202.</num>
<heading>DISBURSEMENTS FROM PRINCIPAL</heading>
<subsection identifier="/us/tx/pr/t9/c116/scE/s116.202/a">
<num value="a">(a)</num>
<chapeau>A trustee shall make the following disbursements from principal:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c116/scE/s116.202/1">
<num value="1">(1)</num>
<content>the remaining one-half of the disbursements described in Section 116.201(1) unless, consistent with the trustee's fiduciary duties, the trustee determines that a different portion, none, or all of those disbursements should be allocated to income, in which case that portion of the disbursements that are not allocated to income shall be allocated to principal;</content>
<continuation>(1-a) the remaining one-half of the disbursements described in Section 116.201(2);</continuation>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scE/s116.202/2">
<num value="2">(2)</num>
<content>all of the trustee's compensation calculated on principal as a fee for acceptance, distribution, or termination, and disbursements made to prepare property for sale;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scE/s116.202/3">
<num value="3">(3)</num>
<content>payments on the principal of a trust debt;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scE/s116.202/4">
<num value="4">(4)</num>
<content>expenses of a proceeding that concerns primarily principal, including a proceeding to construe the trust or to protect the trust or its property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scE/s116.202/5">
<num value="5">(5)</num>
<content>premiums paid on a policy of insurance not described in Section 116.201(4) of which the trust is the owner and beneficiary;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scE/s116.202/6">
<num value="6">(6)</num>
<content>estate, inheritance, and other transfer taxes, including penalties, apportioned to the trust; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scE/s116.202/7">
<num value="7">(7)</num>
<content>disbursements related to environmental matters, including reclamation, assessing environmental conditions, remedying and removing environmental contamination, monitoring remedial activities and the release of substances, preventing future releases of substances, collecting amounts from persons liable or potentially liable for the costs of those activities, penalties imposed under environmental laws or regulations and other payments made to comply with those laws or regulations, statutory or common law claims by third parties, and defending claims based on environmental matters.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scE/s116.202/b">
<num value="b">(b)</num>
<content>If a principal asset is encumbered with an obligation that requires income from that asset to be paid directly to the creditor, the trustee shall transfer from principal to income an amount equal to the income paid to the creditor in reduction of the principal balance of the obligation.</content>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 1337 (S.B. 778), Sec. 3, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c116/scE/s116.203">
<num value="116.203">Sec. 116.203.</num>
<heading>TRANSFERS FROM INCOME TO PRINCIPAL FOR DEPRECIATION</heading>
<subsection identifier="/us/tx/pr/t9/c116/scE/s116.203/a">
<num value="a">(a)</num>
<content>In this section, "depreciation" means a reduction in value due to wear, tear, decay, corrosion, or gradual obsolescence of a fixed asset having a useful life of more than one year.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scE/s116.203/b">
<num value="b">(b)</num>
<chapeau>A trustee may transfer to principal a reasonable amount of the net cash receipts from a principal asset that is subject to depreciation, but may not transfer any amount for depreciation:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c116/scE/s116.203/1">
<num value="1">(1)</num>
<content>of that portion of real property used or available for use by a beneficiary as a residence or of tangible personal property held or made available for the personal use or enjoyment of a beneficiary;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scE/s116.203/2">
<num value="2">(2)</num>
<content>during the administration of a decedent's estate; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scE/s116.203/3">
<num value="3">(3)</num>
<content>under this section if the trustee is accounting under Section 116.153 for the business or activity in which the asset is used.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scE/s116.203/c">
<num value="c">(c)</num>
<content>An amount transferred to principal need not be held as a separate fund.</content>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c116/scE/s116.204">
<num value="116.204">Sec. 116.204.</num>
<heading>TRANSFERS FROM INCOME TO REIMBURSE PRINCIPAL</heading>
<subsection identifier="/us/tx/pr/t9/c116/scE/s116.204/a">
<num value="a">(a)</num>
<content>If a trustee makes or expects to make a principal disbursement described in this section, the trustee may transfer an appropriate amount from income to principal in one or more accounting periods to reimburse principal or to provide a reserve for future principal disbursements.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scE/s116.204/b">
<num value="b">(b)</num>
<chapeau>Principal disbursements to which Subsection (a) applies include the following, but only to the extent that the trustee has not been and does not expect to be reimbursed by a third party:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c116/scE/s116.204/1">
<num value="1">(1)</num>
<content>an amount chargeable to income but paid from principal because it is unusually large, including extraordinary repairs;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scE/s116.204/2">
<num value="2">(2)</num>
<content>a capital improvement to a principal asset, whether in the form of changes to an existing asset or the construction of a new asset, including special assessments;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scE/s116.204/3">
<num value="3">(3)</num>
<content>disbursements made to prepare property for rental, including tenant allowances, leasehold improvements, and broker's commissions;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scE/s116.204/4">
<num value="4">(4)</num>
<content>periodic payments on an obligation secured by a principal asset to the extent that the amount transferred from income to principal for depreciation is less than the periodic payments; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scE/s116.204/5">
<num value="5">(5)</num>
<content>disbursements described in Section 116.202(a)(7).</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scE/s116.204/c">
<num value="c">(c)</num>
<content>If the asset whose ownership gives rise to the disbursements becomes subject to a successive income interest after an income interest ends, a trustee may continue to transfer amounts from income to principal as provided in Subsection (a).</content>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c116/scE/s116.205">
<num value="116.205">Sec. 116.205.</num>
<heading>INCOME TAXES</heading>
<subsection identifier="/us/tx/pr/t9/c116/scE/s116.205/a">
<num value="a">(a)</num>
<content>A tax required to be paid by a trustee based on receipts allocated to income must be paid from income.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scE/s116.205/b">
<num value="b">(b)</num>
<content>A tax required to be paid by a trustee based on receipts allocated to principal must be paid from principal, even if the tax is called an income tax by the taxing authority.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scE/s116.205/c">
<num value="c">(c)</num>
<chapeau>A tax required to be paid by a trustee on the trust's share of an entity's taxable income must be paid:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c116/scE/s116.205/1">
<num value="1">(1)</num>
<content>from income to the extent that receipts from the entity are allocated only to income;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scE/s116.205/2">
<num value="2">(2)</num>
<content>from principal to the extent that receipts from the entity are allocated only to principal;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scE/s116.205/3">
<num value="3">(3)</num>
<content>proportionately from principal and income to the extent that receipts from the entity are allocated to both principal and income; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scE/s116.205/4">
<num value="4">(4)</num>
<content>from principal to the extent that the tax exceeds the total receipts from the entity.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scE/s116.205/d">
<num value="d">(d)</num>
<content>After applying the other provisions of this section, the trustee shall adjust income or principal receipts to the extent that the trust's taxes are reduced because the trust receives a deduction for payments made to a beneficiary.</content>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 657 (S.B. 1197), Sec. 8, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c116/scE/s116.206">
<num value="116.206">Sec. 116.206.</num>
<heading>ADJUSTMENTS BETWEEN PRINCIPAL AND INCOME BECAUSE OF TAXES</heading>
<subsection identifier="/us/tx/pr/t9/c116/scE/s116.206/a">
<num value="a">(a)</num>
<chapeau>A fiduciary may make adjustments between principal and income to offset the shifting of economic interests or tax benefits between income beneficiaries and remainder beneficiaries which arise from:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c116/scE/s116.206/1">
<num value="1">(1)</num>
<content>elections and decisions, other than those described in Subsection (b), that the fiduciary makes from time to time regarding tax matters;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scE/s116.206/2">
<num value="2">(2)</num>
<content>an income tax or any other tax that is imposed upon the fiduciary or a beneficiary as a result of a transaction involving or a distribution from the estate or trust; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c116/scE/s116.206/3">
<num value="3">(3)</num>
<content>the ownership by an estate or trust of an interest in an entity whose taxable income, whether or not distributed, is includable in the taxable income of the estate, trust, or a beneficiary.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c116/scE/s116.206/b">
<num value="b">(b)</num>
<content>If the amount of an estate tax marital deduction or charitable contribution deduction is reduced because a fiduciary deducts an amount paid from principal for income tax purposes instead of deducting it for estate tax purposes, and as a result estate taxes paid from principal are increased and income taxes paid by an estate, trust, or beneficiary are decreased, each estate, trust, or beneficiary that benefits from the decrease in income tax shall reimburse the principal from which the increase in estate tax is paid. The total reimbursement must equal the increase in the estate tax to the extent that the principal used to pay the increase would have qualified for a marital deduction or charitable contribution deduction but for the payment. The proportionate share of the reimbursement for each estate, trust, or beneficiary whose income taxes are reduced must be the same as its proportionate share of the total decrease in income tax. An estate or trust shall reimburse principal from income.</content>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 659, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
</subchapter>
</chapter>
<chapter identifier="/us/tx/pr/t9/c117">
<num value="117">CHAPTER 117.</num>
<heading>UNIFORM PRUDENT INVESTOR ACT</heading>
<section identifier="/us/tx/pr/t9/c117/s117.001">
<num value="117.001">Sec. 117.001.</num>
<heading>SHORT TITLE</heading>
<content>This chapter may be cited as the "Uniform Prudent Investor Act."</content>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 1103, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c117/s117.002">
<num value="117.002">Sec. 117.002.</num>
<heading>UNIFORMITY OF APPLICATION AND CONSTRUCTION</heading>
<content>This chapter shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of this chapter among the states enacting it.</content>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 1103, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c117/s117.003">
<num value="117.003">Sec. 117.003.</num>
<heading>PRUDENT INVESTOR RULE</heading>
<subsection identifier="/us/tx/pr/t9/c117/s117.003/a">
<num value="a">(a)</num>
<content>Except as otherwise provided in Subsection (b), a trustee who invests and manages trust assets owes a duty to the beneficiaries of the trust to comply with the prudent investor rule set forth in this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c117/s117.003/b">
<num value="b">(b)</num>
<content>The prudent investor rule, a default rule, may be expanded, restricted, eliminated, or otherwise altered by the provisions of a trust. A trustee is not liable to a beneficiary to the extent that the trustee acted in reasonable reliance on the provisions of the trust.</content>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 1103, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c117/s117.004">
<num value="117.004">Sec. 117.004.</num>
<heading>STANDARD OF CARE; PORTFOLIO STRATEGY; RISK AND RETURN OBJECTIVES</heading>
<subsection identifier="/us/tx/pr/t9/c117/s117.004/a">
<num value="a">(a)</num>
<content>A trustee shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c117/s117.004/b">
<num value="b">(b)</num>
<content>A trustee's investment and management decisions respecting individual assets must be evaluated not in isolation but in the context of the trust portfolio as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c117/s117.004/c">
<num value="c">(c)</num>
<chapeau>Among circumstances that a trustee shall consider in investing and managing trust assets are such of the following as are relevant to the trust or its beneficiaries:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c117/s117.004/1">
<num value="1">(1)</num>
<content>general economic conditions;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c117/s117.004/2">
<num value="2">(2)</num>
<content>the possible effect of inflation or deflation;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c117/s117.004/3">
<num value="3">(3)</num>
<content>the expected tax consequences of investment decisions or strategies;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c117/s117.004/4">
<num value="4">(4)</num>
<content>the role that each investment or course of action plays within the overall trust portfolio, which may include financial assets, interests in closely held enterprises, tangible and intangible personal property, and real property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c117/s117.004/5">
<num value="5">(5)</num>
<content>the expected total return from income and the appreciation of capital;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c117/s117.004/6">
<num value="6">(6)</num>
<content>other resources of the beneficiaries;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c117/s117.004/7">
<num value="7">(7)</num>
<content>needs for liquidity, regularity of income, and preservation or appreciation of capital; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c117/s117.004/8">
<num value="8">(8)</num>
<content>an asset's special relationship or special value, if any, to the purposes of the trust or to one or more of the beneficiaries.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c117/s117.004/d">
<num value="d">(d)</num>
<content>A trustee shall make a reasonable effort to verify facts relevant to the investment and management of trust assets.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c117/s117.004/e">
<num value="e">(e)</num>
<content>Except as otherwise provided by and subject to this subtitle, a trustee may invest in any kind of property or type of investment consistent with the standards of this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c117/s117.004/f">
<num value="f">(f)</num>
<content>A trustee who has special skills or expertise, or is named trustee in reliance upon the trustee's representation that the trustee has special skills or expertise, has a duty to use those special skills or expertise.</content>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 1103, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c117/s117.005">
<num value="117.005">Sec. 117.005.</num>
<heading>DIVERSIFICATION</heading>
<content>A trustee shall diversify the investments of the trust unless the trustee reasonably determines that, because of special circumstances, the purposes of the trust are better served without diversifying.</content>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 1103, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c117/s117.006">
<num value="117.006">Sec. 117.006.</num>
<heading>DUTIES AT INCEPTION OF TRUSTEESHIP</heading>
<content>Within a reasonable time after accepting a trusteeship or receiving trust assets, a trustee shall review the trust assets and make and implement decisions concerning the retention and disposition of assets, in order to bring the trust portfolio into compliance with the purposes, terms, distribution requirements, and other circumstances of the trust, and with the requirements of this chapter.</content>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 1103, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c117/s117.007">
<num value="117.007">Sec. 117.007.</num>
<heading>LOYALTY</heading>
<content>A trustee shall invest and manage the trust assets solely in the interest of the beneficiaries.</content>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 1103, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c117/s117.008">
<num value="117.008">Sec. 117.008.</num>
<heading>IMPARTIALITY</heading>
<content>If a trust has two or more beneficiaries, the trustee shall act impartially in investing and managing the trust assets, taking into account any differing interests of the beneficiaries.</content>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 1103, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c117/s117.009">
<num value="117.009">Sec. 117.009.</num>
<heading>INVESTMENT COSTS</heading>
<content>In investing and managing trust assets, a trustee may only incur costs that are appropriate and reasonable in relation to the assets, the purposes of the trust, and the skills of the trustee.</content>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 1103, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c117/s117.010">
<num value="117.010">Sec. 117.010.</num>
<heading>REVIEWING COMPLIANCE</heading>
<content>Compliance with the prudent investor rule is determined in light of the facts and circumstances existing at the time of a trustee's decision or action and not by hindsight.</content>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 1103, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c117/s117.011">
<num value="117.011">Sec. 117.011.</num>
<heading>DELEGATION OF INVESTMENT AND MANAGEMENT FUNCTIONS</heading>
<subsection identifier="/us/tx/pr/t9/c117/s117.011/a">
<num value="a">(a)</num>
<chapeau>A trustee may delegate investment and management functions that a prudent trustee of comparable skills could properly delegate under the circumstances. The trustee shall exercise reasonable care, skill, and caution in:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c117/s117.011/1">
<num value="1">(1)</num>
<content>selecting an agent;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c117/s117.011/2">
<num value="2">(2)</num>
<content>establishing the scope and terms of the delegation, consistent with the purposes and terms of the trust; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c117/s117.011/3">
<num value="3">(3)</num>
<content>periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the terms of the delegation.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c117/s117.011/b">
<num value="b">(b)</num>
<content>In performing a delegated function, an agent owes a duty to the trust to exercise reasonable care to comply with the terms of the delegation.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c117/s117.011/c">
<num value="c">(c)</num>
<chapeau>A trustee who complies with the requirements of Subsection (a) is not liable to the beneficiaries or to the trust for the decisions or actions of the agent to whom the function was delegated, unless:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c117/s117.011/1">
<num value="1">(1)</num>
<content>the agent is an affiliate of the trustee; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c117/s117.011/2">
<num value="2">(2)</num>
<chapeau>under the terms of the delegation:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c117/s117.011/A">
<num value="A">(A)</num>
<content>the trustee or a beneficiary of the trust is required to arbitrate disputes with the agent; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c117/s117.011/B">
<num value="B">(B)</num>
<content>the period for bringing an action by the trustee or a beneficiary of the trust with respect to an agent's actions is shortened from that which is applicable to trustees under the law of this state.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c117/s117.011/d">
<num value="d">(d)</num>
<content>By accepting the delegation of a trust function from the trustee of a trust that is subject to the law of this state, an agent submits to the jurisdiction of the courts of this state.</content>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 1103, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c117/s117.012">
<num value="117.012">Sec. 117.012.</num>
<heading>LANGUAGE INVOKING STANDARD OF CHAPTER</heading>
<content>The following terms or comparable language in the provisions of a trust, unless otherwise limited or modified, authorizes any investment or strategy permitted under this chapter: "investments permissible by law for investment of trust funds," "legal investments," "authorized investments," "using the judgment and care under the circumstances then prevailing that persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital," "prudent man rule," "prudent trustee rule," "prudent person rule," and "prudent investor rule."</content>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 1103, Sec. 1, eff. Jan. 1, 2004.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t9/c121">
<num value="121">CHAPTER 121.</num>
<heading>EMPLOYEES' TRUSTS</heading>
<subchapter identifier="/us/tx/pr/t9/c121/scA">
<num value="A">SUBCHAPTER A.</num>
<heading>PENSION TRUSTS</heading>
<section identifier="/us/tx/pr/t9/c121/scA/s121.001">
<num value="121.001">Sec. 121.001.</num>
<heading>PENSION TRUSTS</heading>
<subsection identifier="/us/tx/pr/t9/c121/scA/s121.001/a">
<num value="a">(a)</num>
<chapeau>For the purposes of this subchapter, a pension trust is an express trust:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c121/scA/s121.001/1">
<num value="1">(1)</num>
<content>containing or relating to property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c121/scA/s121.001/2">
<num value="2">(2)</num>
<content>created by an employer as part of a stock-bonus plan, pension plan, disability or death benefit plan, or profit-sharing plan for the benefit of some or all of the employer's employees;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c121/scA/s121.001/3">
<num value="3">(3)</num>
<content>to which contributions are made by the employer, by some or all of the employees, or by both; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c121/scA/s121.001/4">
<num value="4">(4)</num>
<content>created for the principal purpose of distributing to the employees, or the successor to their beneficial interest in the trust, the principal or income, or both, of the property held in trust.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c121/scA/s121.001/b">
<num value="b">(b)</num>
<content>This subchapter applies to a pension trust regardless of when the trust was created.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3691, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c121/scA/s121.002">
<num value="121.002">Sec. 121.002.</num>
<heading>EMPLOYEES OF CONTROLLED CORPORATIONS</heading>
<content>For the purposes of this subchapter, the relationship of employer and employee exists between a corporation and its own employees, and between a corporation and the employees of each other corporation that it controls, by which it is controlled, or with which it is under common control through the exercise by one or more persons of a majority of voting rights in one or more corporations.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3691, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c121/scA/s121.003">
<num value="121.003">Sec. 121.003.</num>
<heading>APPLICATION OF TEXAS TRUST CODE</heading>
<content>The Texas Trust Code (Chapters 111 through 117) applies to a pension trust.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3691, ch. 576, Sec. 1, eff. Jan. 1, 1984.
Amended by:
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 27, eff. January 1, 2006.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c121/scA/s121.004">
<num value="121.004">Sec. 121.004.</num>
<heading>RULE AGAINST PERPETUITIES</heading>
<content>A pension trust may continue for as long as is necessary to accomplish the purposes of the trust and is not invalid under the rule against perpetuities or any other law restricting or limiting the duration of a trust.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3691, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c121/scA/s121.005">
<num value="121.005">Sec. 121.005.</num>
<heading>ACCUMULATION OF INCOME</heading>
<content>Notwithstanding any law limiting the time during which trust income may be accumulated, the income of a pension trust may be accumulated under the terms of the trust for as long as is necessary to accomplish the purposes of the trust.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3692, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t9/c121/scB">
<num value="B">SUBCHAPTER B.</num>
<heading>DEATH BENEFITS UNDER EMPLOYEES' TRUSTS</heading>
<section identifier="/us/tx/pr/t9/c121/scB/s121.051">
<num value="121.051">Sec. 121.051.</num>
<heading>DEFINITIONS</heading>
<subsection identifier="/us/tx/pr/t9/c121/scB/s121.051/a">
<num value="a">(a)</num>
<chapeau>In this subchapter:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c121/scB/s121.051/1">
<num value="1">(1)</num>
<content>"Death benefit" means a benefit of any kind, including the proceeds of a life insurance policy or any other payment, in cash or property, under an employees' trust or a retirement account, a contract purchased by an employees' trust or a retirement account, or a retirement-annuity contract that is payable because of an employee's, participant's, or beneficiary's death to or for the benefit of the employee's, participant's, or beneficiary's beneficiary.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c121/scB/s121.051/2">
<num value="2">(2)</num>
<content>"Employee" means a person covered by an employees' trust or a retirement account that provides a death benefit or a person whose interest in an employees' trust or a retirement account has not been fully distributed.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c121/scB/s121.051/3">
<num value="3">(3)</num>
<chapeau>"Employees' trust" means:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c121/scB/s121.051/A">
<num value="A">(A)</num>
<content>a trust forming a part of a stock-bonus, pension, or profit-sharing plan under Section 401, Internal Revenue Code of 1954 (26 U.S.C.A. Sec. 401 (1986));</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c121/scB/s121.051/B">
<num value="B">(B)</num>
<content>a pension trust under Chapter 111; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c121/scB/s121.051/C">
<num value="C">(C)</num>
<content>an employer-sponsored benefit plan or program, or any other retirement savings arrangement, including a pension plan created under Section 3, Employee Retirement Income Security Act of 1974 (29 U.S.C.A. Sec. 1002 (1986)), regardless of whether the plan, program, or arrangement is funded through a trust.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c121/scB/s121.051/4">
<num value="4">(4)</num>
<content>"Individual retirement account" means a trust, custodial arrangement, or annuity under Section 408(a) or (b), Internal Revenue Code of 1954 (26 U.S.C.A. Sec. 408 (1986)).</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c121/scB/s121.051/5">
<num value="5">(5)</num>
<content>"Participant" means a person covered by an employees' trust or a retirement account that provides a death benefit or a person whose interest in an employees' trust or a retirement account has not been fully distributed.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c121/scB/s121.051/6">
<num value="6">(6)</num>
<content>"Retirement account" means a retirement-annuity contract, an individual retirement account, a simplified employee pension, or any other retirement savings arrangement.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c121/scB/s121.051/7">
<num value="7">(7)</num>
<content>"Retirement-annuity contract" means an annuity contract under Section 403, Internal Revenue Code of 1954 (26 U.S.C.A. Sec. 403 (1986)).</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c121/scB/s121.051/8">
<num value="8">(8)</num>
<content>"Simplified employee pension" means a trust, custodial arrangement, or annuity under Section 408, Internal Revenue Code of 1954 (26 U.S.C.A. Sec. 408 (1986)).</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c121/scB/s121.051/9">
<num value="9">(9)</num>
<content>"Trust" and "trustee" have the meanings assigned by the Texas Trust Code (Chapters 111 through 115), except that "trust" includes any trust, regardless of when it is created.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c121/scB/s121.051/b">
<num value="b">(b)</num>
<content>References to specific provisions of the Internal Revenue Code of 1954 (26 U.S.C.A.) include corresponding provisions of any subsequent federal tax laws.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3692, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1987, 70th Leg., ch. 741, Sec. 3, eff. Aug. 31, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c121/scB/s121.052">
<num value="121.052">Sec. 121.052.</num>
<heading>PAYMENT OF DEATH BENEFIT TO TRUSTEE</heading>
<subsection identifier="/us/tx/pr/t9/c121/scB/s121.052/a">
<num value="a">(a)</num>
<content>A death benefit is payable to a trustee of a trust evidenced by a written instrument or declaration existing on the date of an employee's or participant's death, or to a trustee named or to be named as trustee of a trust created under an employee's or participant's will, if the trustee is designated as beneficiary under the plan containing the employees' trust or under the retirement account.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c121/scB/s121.052/b">
<num value="b">(b)</num>
<content>A trustee of a testamentary trust may be designated under Subsection (a) prior to the execution of the will.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c121/scB/s121.052/c">
<num value="c">(c)</num>
<content>A death benefit under a will is not payable until the will is probated.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c121/scB/s121.052/d">
<num value="d">(d)</num>
<content>The trustee shall hold, administer, and dispose of a death benefit payable under this section in accordance with the terms of the trust on the date of the employee's death.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c121/scB/s121.052/e">
<num value="e">(e)</num>
<chapeau>A death benefit is payable to a trustee of a trust created by the will of a person other than the employee if:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c121/scB/s121.052/1">
<num value="1">(1)</num>
<content>the will has been probated at the time of the employee's death; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c121/scB/s121.052/2">
<num value="2">(2)</num>
<content>the death benefit is payable to the trustee to be held, administered, and disposed of in accordance with the terms of the testamentary trust.</content>
</paragraph>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3693, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1987, 70th Leg., ch. 741, Sec. 4, eff. Aug. 31, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c121/scB/s121.053">
<num value="121.053">Sec. 121.053.</num>
<heading>VALIDITY OF TRUST DECLARATION</heading>
<chapeau>The validity of a trust agreement or declaration is not affected by:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c121/scB/s121.053/1">
<num value="1">(1)</num>
<content>the absence of a corpus other than the right of the trustee to receive a death benefit as beneficiary;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c121/scB/s121.053/2">
<num value="2">(2)</num>
<content>the employee's reservation of the right to designate another beneficiary of the death benefit; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c121/scB/s121.053/3">
<num value="3">(3)</num>
<content>the existence of authority to amend, modify, revoke, or terminate the agreement or declaration.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3693, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c121/scB/s121.054">
<num value="121.054">Sec. 121.054.</num>
<heading>UNCLAIMED BENEFITS</heading>
<chapeau>If a trustee does not claim a death benefit on or before the first anniversary of the employee's or participant's death or if satisfactory evidence is provided to a trustee, custodian, other fiduciary, or other obligor of the employees' trust, contract purchased by the employees' trust, or the retirement account before the first anniversary of the employee's or participant's death that there is or will be no trustee to receive the death benefit, the death benefit shall be paid:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c121/scB/s121.054/1">
<num value="1">(1)</num>
<content>according to the beneficiary designation under the plan, trust, contract, or arrangement providing the death benefit under the employees' trust or retirement account; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c121/scB/s121.054/2">
<num value="2">(2)</num>
<content>if there is no designation in the employees' trust or retirement account, to the personal representative of the deceased employee's or participant's estate.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3693, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1987, 70th Leg., ch. 741, Sec. 5, eff. Aug. 31, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c121/scB/s121.055">
<num value="121.055">Sec. 121.055.</num>
<heading>EXEMPTION FROM TAXES AND DEBTS</heading>
<chapeau>Unless the trust agreement, declaration of trust, or will provides otherwise, a death benefit payable to a trustee under this subchapter is not:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c121/scB/s121.055/1">
<num value="1">(1)</num>
<content>part of the deceased employee's estate;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c121/scB/s121.055/2">
<num value="2">(2)</num>
<content>subject to the debts of the deceased employee or the employee's estate, or to other charges enforceable against the estate; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c121/scB/s121.055/3">
<num value="3">(3)</num>
<content>subject to the payment of taxes enforceable against the deceased employee's estate to a greater extent than if the death benefit is payable, free of trust, to a beneficiary other than the executor or administrator of the estate of the employee.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3694, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c121/scB/s121.056">
<num value="121.056">Sec. 121.056.</num>
<heading>COMMINGLING OF ASSETS</heading>
<content>A trustee who receives a death benefit under this subchapter may commingle the property with other assets accepted by the trustee and held in trust, either before or after the death benefit is received.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3694, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c121/scB/s121.057">
<num value="121.057">Sec. 121.057.</num>
<heading>PRIOR DESIGNATIONS NOT AFFECTED</heading>
<content>This subchapter does not affect the validity of a beneficiary designation made by an employee before April 3, 1975, that names a trustee as beneficiary of a death benefit.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3694, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c121/scB/s121.058">
<num value="121.058">Sec. 121.058.</num>
<heading>CONSTRUCTION</heading>
<subsection identifier="/us/tx/pr/t9/c121/scB/s121.058/a">
<num value="a">(a)</num>
<content>This subchapter is intended to be declaratory of the common law of this state.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c121/scB/s121.058/b">
<num value="b">(b)</num>
<content>A court shall liberally construe this subchapter to effect the intent that a death benefit received by a trustee under this subchapter is not subject to the obligations of the employee or the employee's estate unless the trust receiving the benefit expressly provides otherwise.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c121/scB/s121.058/c">
<num value="c">(c)</num>
<content>A death benefit shall not be included in property administered as part of a testator's estate or in an inventory filed with the county court because of a reference in a will to the death benefit or because of the naming of the trustee of a testamentary trust.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3694, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
</subchapter>
</chapter>
<chapter identifier="/us/tx/pr/t9/c123">
<num value="123">CHAPTER 123.</num>
<heading>ATTORNEY GENERAL PARTICIPATION IN PROCEEDINGS INVOLVING CHARITABLE TRUSTS</heading>
<section identifier="/us/tx/pr/t9/c123/s123.001">
<num value="123.001">Sec. 123.001.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c123/s123.001/1">
<num value="1">(1)</num>
<content>"Charitable entity" means a corporation, trust, community chest, fund, foundation, or other entity organized for scientific, educational, philanthropic, or environmental purposes, social welfare, the arts and humanities, or another civic or public purpose described by Section 501(c)(3) of the Internal Revenue Code of 1986 (26 U.S.C. 501(c)(3)).</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c123/s123.001/2">
<num value="2">(2)</num>
<content>"Charitable trust" means a charitable entity, a trust the stated purpose of which is to benefit a charitable entity, or an inter vivos or testamentary gift to a charitable entity.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c123/s123.001/3">
<num value="3">(3)</num>
<chapeau>"Proceeding involving a charitable trust" means a suit or other judicial proceeding the object of which is to:</chapeau>
<subparagraph identifier="/us/tx/pr/t9/c123/s123.001/A">
<num value="A">(A)</num>
<content>terminate a charitable trust or distribute its assets to other than charitable donees;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c123/s123.001/B">
<num value="B">(B)</num>
<content>depart from the objects of the charitable trust stated in the instrument creating the trust, including a proceeding in which the doctrine of cy-pres is invoked;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c123/s123.001/C">
<num value="C">(C)</num>
<content>construe, nullify, or impair the provisions of a testamentary or other instrument creating or affecting a charitable trust;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c123/s123.001/D">
<num value="D">(D)</num>
<content>contest or set aside the probate of an alleged will under which money, property, or another thing of value is given for charitable purposes;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c123/s123.001/E">
<num value="E">(E)</num>
<content>allow a charitable trust to contest or set aside the probate of an alleged will;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c123/s123.001/F">
<num value="F">(F)</num>
<content>determine matters relating to the probate and administration of an estate involving a charitable trust; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t9/c123/s123.001/G">
<num value="G">(G)</num>
<content>obtain a declaratory judgment involving a charitable trust.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c123/s123.001/4">
<num value="4">(4)</num>
<content>"Fiduciary or managerial agent" means an individual, corporation, or other entity acting either as a trustee, a member of the board of directors, an officer, an executor, or an administrator for a charitable trust.</content>
</paragraph>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 147, Sec. 4, eff. Sept. 1, 1987. Amended by Acts 1995, 74th Leg., ch. 172, Sec. 2, eff. Sept. 1, 1995.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c123/s123.002">
<num value="123.002">Sec. 123.002.</num>
<heading>ATTORNEY GENERAL'S PARTICIPATION</heading>
<content>For and on behalf of the interest of the general public of this state in charitable trusts, the attorney general is a proper party and may intervene in a proceeding involving a charitable trust. The attorney general may join and enter into a compromise, settlement agreement, contract, or judgment relating to a proceeding involving a charitable trust.</content>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 147, Sec. 4, eff. Sept. 1, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c123/s123.003">
<num value="123.003">Sec. 123.003.</num>
<heading>NOTICE</heading>
<subsection identifier="/us/tx/pr/t9/c123/s123.003/a">
<num value="a">(a)</num>
<chapeau>Any party initiating a proceeding involving a charitable trust shall give notice of the proceeding to the attorney general by sending to the attorney general, by registered or certified mail, a true copy of the petition or other instrument initiating the proceeding involving a charitable trust within 30 days of the filing of such petition or other instrument, but no less than 25 days prior to a hearing in such a proceeding. This subsection does not apply to a proceeding that is initiated by an application that exclusively seeks the admission of a will to probate, regardless of whether the application seeks the appointment of a personal representative, if the application:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c123/s123.003/1">
<num value="1">(1)</num>
<content>is uncontested; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c123/s123.003/2">
<num value="2">(2)</num>
<content>is not subject to Subchapter C, Chapter 256, Estates Code.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t9/c123/s123.003/b">
<num value="b">(b)</num>
<content>Notice shall be given to the attorney general of any pleading which adds new causes of action or additional parties to a proceeding involving a charitable trust in which the attorney general has previously waived participation or in which the attorney general has otherwise failed to intervene. Notice shall be given by sending to the attorney general by registered or certified mail a true copy of the pleading within 30 days of the filing of the pleading, but no less than 25 days prior to a hearing in the proceeding.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c123/s123.003/c">
<num value="c">(c)</num>
<content>The party or the party's attorney shall execute and file in the proceeding an affidavit stating the facts of the notice and shall attach to the affidavit the customary postal receipts signed by the attorney general or an assistant attorney general.</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 147, Sec. 4, eff. Sept. 1, 1987. Amended by Acts 1995, 74th Leg., ch. 172, Sec. 3, eff. Sept. 1, 1995.
Amended by:
Acts 2005, 79th Leg., Ch. 1017 (H.B. 934), Sec. 1, eff. September 1, 2005.
Acts 2007, 80th Leg., R.S., Ch. 451 (H.B. 564), Sec. 15, eff. September 1, 2007.
Acts 2017, 85th Leg., R.S., Ch. 324 (S.B. 1488), Sec. 22.061, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c123/s123.004">
<num value="123.004">Sec. 123.004.</num>
<heading>VOIDABLE JUDGMENT OR AGREEMENT</heading>
<subsection identifier="/us/tx/pr/t9/c123/s123.004/a">
<num value="a">(a)</num>
<content>A judgment in a proceeding involving a charitable trust is voidable if the attorney general is not given notice of the proceeding as required by this chapter. On motion of the attorney general after the judgment is rendered, the judgment shall be set aside.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c123/s123.004/b">
<num value="b">(b)</num>
<chapeau>A compromise, settlement agreement, contract, or judgment relating to a proceeding involving a charitable trust is voidable on motion of the attorney general if the attorney general is not given notice as required by this chapter unless the attorney general has:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c123/s123.004/1">
<num value="1">(1)</num>
<content>declined in writing to be a party to the proceeding; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c123/s123.004/2">
<num value="2">(2)</num>
<content>approved and joined in the compromise, settlement agreement, contract, or judgment.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 147, Sec. 4, eff. Sept. 1, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c123/s123.005">
<num value="123.005">Sec. 123.005.</num>
<heading>BREACH OF FIDUCIARY DUTY: VENUE; JURISDICTION</heading>
<subsection identifier="/us/tx/pr/t9/c123/s123.005/a">
<num value="a">(a)</num>
<content>Venue in a proceeding brought by the attorney general alleging breach of a fiduciary duty by a charitable entity or a fiduciary or managerial agent of a charitable trust shall be a court of competent jurisdiction in Travis County or in the county where the defendant resides or has its principal office. To the extent of a conflict between this subsection and any provision of the Estates Code providing for venue of a proceeding brought with respect to a charitable trust created by a will that has been admitted to probate, this subsection controls.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c123/s123.005/b">
<num value="b">(b)</num>
<content>A statutory probate court of Travis County has concurrent jurisdiction with any other court on which jurisdiction is conferred by Section 32.001, Estates Code, in a proceeding brought by the attorney general alleging breach of a fiduciary duty with respect to a charitable trust created by a will that has been admitted to probate.</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 147, Sec. 4, eff. Sept. 1, 1987. Amended by Acts 1995, 74th Leg., ch. 172, Sec. 4, eff. Sept. 1, 1995.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 133 (S.B. 918), Sec. 1, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 1351 (S.B. 408), Sec. 12(g), eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 401 (S.B. 587), Sec. 1, eff. June 17, 2011.
Acts 2017, 85th Leg., R.S., Ch. 324 (S.B. 1488), Sec. 22.062, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c123/s123.006">
<num value="123.006">Sec. 123.006.</num>
<heading>ATTORNEY'S FEES</heading>
<subsection identifier="/us/tx/pr/t9/c123/s123.006/a">
<num value="a">(a)</num>
<content>In a proceeding subject to Section 123.005, the attorney general, if successful in the proceeding, is entitled to recover from the charitable entity or fiduciary or managerial agent of the charitable trust actual costs incurred in bringing the suit and may recover reasonable attorney's fees.</content>
</subsection>
<subsection identifier="/us/tx/pr/t9/c123/s123.006/b">
<num value="b">(b)</num>
<content>In a proceeding in which the attorney general intervenes under this chapter, other than a proceeding subject to Section 123.005, a court may award the attorney general court costs and reasonable and necessary attorney's fees as may seem equitable and just.</content>
</subsection>
<sourceCredit>Added by Acts 2009, 81st Leg., R.S., Ch. 133 (S.B. 918), Sec. 2, eff. September 1, 2009.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t9/c124">
<num value="124">CHAPTER 124.</num>
<heading>PARTITION OF MINERAL INTERESTS OF CHARITABLE TRUST</heading>
<section identifier="/us/tx/pr/t9/c124/s124.001">
<num value="124.001">Sec. 124.001.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t9/c124/s124.001/1">
<num value="1">(1)</num>
<content>"Charitable entity" means a corporation, trust, community chest, fund, foundation, or other entity organized for scientific, educational, philanthropic, or environmental purposes, social welfare, the arts and humanities, or another civic or public purpose described by Section 501(c)(3), Internal Revenue Code of 1986.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c124/s124.001/2">
<num value="2">(2)</num>
<content>"Charitable trust" means a charitable entity, a trust the stated purpose of which is to benefit a charitable entity, or an inter vivos or testamentary gift to a charitable entity.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t9/c124/s124.001/3">
<num value="3">(3)</num>
<content>"Mineral interest" means an interest in oil, gas, or other mineral substance in place or that otherwise constitutes real property without regard to the depth at which such mineral substance is found.</content>
</paragraph>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 480 (S.B. 1240), Sec. 1, eff. June 14, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t9/c124/s124.002">
<num value="124.002">Sec. 124.002.</num>
<heading>COMPULSORY DIVESTMENT PROHIBITED</heading>
<content>In a suit or other judicial proceeding the object or effect of which is to compel the partition of a mineral interest owned or claimed by a charitable trust, a sale or other action that would divest the charitable trust of the trust's ownership of a mineral interest may not be ordered unless the trust has refused to execute a mineral lease, the terms of which are fair and reasonable, to the plaintiff or petitioner in the proceeding.</content>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 480 (S.B. 1240), Sec. 1, eff. June 14, 2013.</sourceCredit>
</section>
</chapter>
<num value="10">TITLE 10.</num>
<heading>MISCELLANEOUS BENEFICIAL PROPERTY INTERESTS</heading>
<chapter identifier="/us/tx/pr/t10/c141">
<num value="141">CHAPTER 141.</num>
<heading>TRANSFERS TO MINORS</heading>
<section identifier="/us/tx/pr/t10/c141/s141.001">
<num value="141.001">Sec. 141.001.</num>
<heading>SHORT TITLE</heading>
<content>This chapter may be cited as the Texas Uniform Transfers to Minors Act.</content>
<sourceCredit>Amended by Acts 1995, 74th Leg., ch. 1043, Sec. 1, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 1 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(72), eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c141/s141.002">
<num value="141.002">Sec. 141.002.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c141/s141.002/1">
<num value="1">(1)</num>
<content>"Adult" means an individual who is at least 21 years of age.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.002/2">
<num value="2">(2)</num>
<content>"Benefit plan" means a retirement plan, including an interest described by Sections 111.004(19)-(23).</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.002/3">
<num value="3">(3)</num>
<content>"Broker" means a person lawfully engaged in the business of effecting transactions in securities or commodities for the person's own account or for the account of another.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.002/4">
<num value="4">(4)</num>
<content>"Court" means a court with original probate jurisdiction.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.002/5">
<num value="5">(5)</num>
<chapeau>"Custodial property" means:</chapeau>
<subparagraph identifier="/us/tx/pr/t10/c141/s141.002/A">
<num value="A">(A)</num>
<content>any interest in property transferred to a custodian under this chapter; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t10/c141/s141.002/B">
<num value="B">(B)</num>
<content>the income from and proceeds of that interest in property.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.002/6">
<num value="6">(6)</num>
<content>"Custodian" means a person designated as a custodian under Section 141.010 or a successor or substitute custodian designated under Section 141.019.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.002/7">
<num value="7">(7)</num>
<content>"Financial institution" means a bank, trust company, savings institution, or credit union chartered and supervised under state or federal law.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.002/8">
<num value="8">(8)</num>
<content>"Guardian" means a person appointed or qualified by a court to act as general, limited, or temporary guardian of a minor's property or a person legally authorized to perform substantially the same functions.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.002/9">
<num value="9">(9)</num>
<content>"Legal representative" means an executor, independent executor, administrator or independent administrator of a decedent's estate, an obligor under a benefit plan or other governing instrument, a successor legal representative, or a person legally authorized to perform substantially the same functions.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.002/10">
<num value="10">(10)</num>
<content>"Member of the minor's family" means the minor's parent, stepparent, spouse, grandparent, brother, sister, uncle, or aunt, whether of whole or half blood or by adoption.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.002/11">
<num value="11">(11)</num>
<content>"Minor" means an individual who is younger than 21 years of age.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.002/12">
<num value="12">(12)</num>
<content>"Transfer" means a transaction that creates custodial property under Section 141.010.</content>
<continuation>(12-a) "Qualified minor's trust" means a trust to which a gift is considered a present interest under Section 2503(c), Internal Revenue Code of 1986.</continuation>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.002/13">
<num value="13">(13)</num>
<content>"Transferor" means a person who makes a transfer under this chapter.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.002/14">
<num value="14">(14)</num>
<content>"Trust company" means a financial institution, corporation, or other legal entity authorized to exercise general trust powers.</content>
</paragraph>
<sourceCredit>Amended by Acts 1995, 74th Leg., ch. 1043, Sec. 1, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 2 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(72), eff. Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 451 (H.B. 564), Sec. 16, eff. September 1, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c141/s141.003">
<num value="141.003">Sec. 141.003.</num>
<heading>SCOPE AND JURISDICTION</heading>
<subsection identifier="/us/tx/pr/t10/c141/s141.003/a">
<num value="a">(a)</num>
<content>This chapter applies to a transfer that refers to the Texas Uniform Transfers to Minors Act in the designation under Section 141.010(a) by which the transfer is made if at the time of the transfer, the transferor, the minor, or the custodian is a resident of this state or the custodial property is located in this state. The custodianship created under Section 141.010 remains subject to this chapter despite a subsequent change in residence of a transferor, the minor, or the custodian or the removal of custodial property from this state.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c141/s141.003/b">
<num value="b">(b)</num>
<content>A person designated as custodian under this chapter is subject to personal jurisdiction in this state with respect to any matter relating to the custodianship.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c141/s141.003/c">
<num value="c">(c)</num>
<content>A transfer that purports to be made and that is valid under the Uniform Transfers to Minors Act, the Uniform Gifts to Minors Act, or a substantially similar act of another state is governed by the law of the designated state and may be executed and is enforceable in this state if at the time of the transfer, the transferor, the minor, or the custodian is a resident of the designated state or the custodial property is located in the designated state.</content>
</subsection>
<sourceCredit>Amended by Acts 1995, 74th Leg., ch. 1043, Sec. 1, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 3 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(72), eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c141/s141.004">
<num value="141.004">Sec. 141.004.</num>
<heading>NOMINATION OF CUSTODIAN</heading>
<subsection identifier="/us/tx/pr/t10/c141/s141.004/a">
<num value="a">(a)</num>
<content>A person having the right to designate the recipient of property transferable on the occurrence of a future event may revocably nominate a custodian to receive the property for a minor beneficiary on the occurrence of that event by naming the custodian followed in substance by the words: "as custodian for (name of minor) under the Texas Uniform Transfers to Minors Act." The nomination may name one or more persons as substitute custodians to whom the property must be transferred, in the order named, if the first nominated custodian dies before the transfer or is unable, declines, or is ineligible to serve. The nomination may be made in a will, a trust, a deed, an instrument exercising a power of appointment, or in a writing designating a beneficiary of contractual rights, including the right to receive payments from a benefit plan, that is registered with or delivered to the payor, issuer, or other obligor of the contractual rights.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c141/s141.004/b">
<num value="b">(b)</num>
<content>A custodian nominated under this section must be a person to whom a transfer of property of that kind may be made under Section 141.010(a).</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c141/s141.004/c">
<num value="c">(c)</num>
<content>The nomination of a custodian under this section does not create custodial property until the nominating instrument becomes irrevocable or a transfer to the nominated custodian is completed under Section 141.010. Unless the nomination of a custodian has been revoked, the custodianship becomes effective on the occurrence of the future event, and the custodian shall enforce a transfer of the custodial property under Section 141.010.</content>
</subsection>
<sourceCredit>Amended by Acts 1995, 74th Leg., ch. 1043, Sec. 1, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 4 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(72), eff. Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 451 (H.B. 564), Sec. 17, eff. September 1, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c141/s141.005">
<num value="141.005">Sec. 141.005.</num>
<heading>TRANSFER BY GIFT OR EXERCISE OF POWER OF APPOINTMENT</heading>
<content>A person may make a transfer by irrevocable gift to, or the irrevocable exercise of a power of appointment in favor of, a custodian for the benefit of a minor under Section 141.010.</content>
<sourceCredit>Amended by Acts 1995, 74th Leg., ch. 1043, Sec. 1, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 5 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(72), eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c141/s141.006">
<num value="141.006">Sec. 141.006.</num>
<heading>TRANSFER AUTHORIZED BY WILL OR TRUST</heading>
<subsection identifier="/us/tx/pr/t10/c141/s141.006/a">
<num value="a">(a)</num>
<content>A legal representative or trustee may make an irrevocable transfer under Section 141.010 to a custodian for a minor's benefit as authorized in the governing will or trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c141/s141.006/b">
<num value="b">(b)</num>
<content>If the testator or settlor has nominated a custodian under Section 141.004 to receive the custodial property, the transfer must be made to that person.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c141/s141.006/c">
<num value="c">(c)</num>
<content>If the testator or settlor has not nominated a custodian under Section 141.004, or all persons nominated as custodian die before the transfer or are unable, decline, or are ineligible to serve, the legal representative or the trustee shall designate the custodian from among those persons eligible to serve as custodian for property of that kind under Section 141.010(a).</content>
</subsection>
<sourceCredit>Amended by Acts 1995, 74th Leg., ch. 1043, Sec. 1, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 6 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(72), eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c141/s141.007">
<num value="141.007">Sec. 141.007.</num>
<heading>OTHER TRANSFER BY FIDUCIARY</heading>
<subsection identifier="/us/tx/pr/t10/c141/s141.007/a">
<num value="a">(a)</num>
<content>Subject to Subsections (b) and (c), a guardian, legal representative, or trustee may make an irrevocable transfer to another adult or trust company as custodian for a minor's benefit under Section 141.010 in the absence of a will or under a will or trust that does not contain an authorization to do so.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c141/s141.007/b">
<num value="b">(b)</num>
<content>With the approval of the court supervising the guardianship, a guardian may make an irrevocable transfer to another adult or trust company as custodian for the minor's benefit under Section 141.010.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c141/s141.007/c">
<num value="c">(c)</num>
<chapeau>A transfer under Subsection (a) or (b) may be made only if:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c141/s141.007/1">
<num value="1">(1)</num>
<content>the legal representative or trustee considers the transfer to be in the best interest of the minor;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.007/2">
<num value="2">(2)</num>
<content>the transfer is not prohibited by or inconsistent with provisions of the applicable will, trust agreement, or other governing instrument; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.007/3">
<num value="3">(3)</num>
<content>the transfer is authorized by the court if it exceeds $25,000 in value.</content>
</paragraph>
</subsection>
<sourceCredit>Amended by Acts 1995, 74th Leg., ch. 1043, Sec. 1, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 7 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(72), eff. Sept. 1, 1997.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 622 (S.B. 1202), Sec. 1, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c141/s141.008">
<num value="141.008">Sec. 141.008.</num>
<heading>TRANSFER BY OBLIGOR</heading>
<subsection identifier="/us/tx/pr/t10/c141/s141.008/a">
<num value="a">(a)</num>
<content>Subject to Subsections (b) and (c), a person who is not subject to Section 141.006 or 141.007 and who holds property, including a benefit plan of a minor who does not have a guardian, or who owes a liquidated debt to a minor who does not have a guardian may make an irrevocable transfer to a custodian for the benefit of the minor under Section 141.010.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c141/s141.008/b">
<num value="b">(b)</num>
<content>If a person who has the right to nominate a custodian under Section 141.004 has nominated a custodian under that section to receive the custodial property, the transfer must be made to that person.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c141/s141.008/c">
<num value="c">(c)</num>
<content>If a custodian has not been nominated under Section 141.004, or all persons nominated as custodian die before the transfer or are unable, decline, or are ineligible to serve, a transfer under this section may be made to an adult member of the minor's family or to a trust company unless the property exceeds $25,000 in value.</content>
</subsection>
<sourceCredit>Amended by Acts 1995, 74th Leg., ch. 1043, Sec. 1, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 8 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(72), eff. Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 451 (H.B. 564), Sec. 18, eff. September 1, 2007.
Acts 2015, 84th Leg., R.S., Ch. 622 (S.B. 1202), Sec. 2, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c141/s141.009">
<num value="141.009">Sec. 141.009.</num>
<heading>RECEIPT FOR CUSTODIAL PROPERTY</heading>
<content>A written acknowledgment of delivery by a custodian constitutes a sufficient receipt and discharge for custodial property transferred to the custodian under this chapter.</content>
<sourceCredit>Amended by Acts 1995, 74th Leg., ch. 1043, Sec. 1, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 9 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(72), eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c141/s141.010">
<num value="141.010">Sec. 141.010.</num>
<heading>MANNER OF CREATING CUSTODIAL PROPERTY AND EFFECTING TRANSFER; DESIGNATION OF INITIAL CUSTODIAN; CONTROL</heading>
<subsection identifier="/us/tx/pr/t10/c141/s141.010/a">
<num value="a">(a)</num>
<chapeau>Custodial property is created and a transfer is made when:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c141/s141.010/1">
<num value="1">(1)</num>
<chapeau>an uncertificated security or a certificated security in registered form is:</chapeau>
<subparagraph identifier="/us/tx/pr/t10/c141/s141.010/A">
<num value="A">(A)</num>
<content>registered in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: "as custodian for (name of minor) under the Texas Uniform Transfers to Minors Act"; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t10/c141/s141.010/B">
<num value="B">(B)</num>
<content>delivered if in certificated form, or any document necessary for the transfer of an uncertificated security is delivered, with any necessary endorsement to an adult other than the transferor or to a trust company as custodian, accompanied by an instrument in substantially the form set forth in Subsection (b);</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.010/2">
<num value="2">(2)</num>
<content>money is paid or delivered, or a security held in the name of a broker, financial institution, or its nominee is transferred, to a broker or financial institution for credit to an account in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: "as custodian for (name of minor) under the Texas Uniform Transfers to Minors Act";</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.010/3">
<num value="3">(3)</num>
<chapeau>the ownership of a life or endowment insurance policy or annuity contract is:</chapeau>
<subparagraph identifier="/us/tx/pr/t10/c141/s141.010/A">
<num value="A">(A)</num>
<content>registered with the issuer in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: "as custodian for (name of minor) under the Texas Uniform Transfers to Minors Act"; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t10/c141/s141.010/B">
<num value="B">(B)</num>
<content>assigned in a writing delivered to an adult other than the transferor or to a trust company whose name in the assignment is followed in substance by the words: "as custodian for (name of minor) under the Texas Uniform Transfers to Minors Act";</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.010/4">
<num value="4">(4)</num>
<content>an irrevocable exercise of a power of appointment or an irrevocable present right to future payment under a contract is the subject of a written notification delivered to the payor, issuer, or other obligor that the right is transferred to the transferor, an adult other than the transferor, or a trust company, whose name in the notification is followed in substance by the words: "as custodian for (name of minor) under the Texas Uniform Transfers to Minors Act";</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.010/5">
<num value="5">(5)</num>
<content>an interest in real property is conveyed by instrument recorded in the real property records in the county in which the real property is located to the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: "as custodian for (name of minor) under the Texas Uniform Transfers to Minors Act";</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.010/6">
<num value="6">(6)</num>
<chapeau>a certificate of title issued by a department or agency of a state or of the United States that evidences title to tangible personal property is:</chapeau>
<subparagraph identifier="/us/tx/pr/t10/c141/s141.010/A">
<num value="A">(A)</num>
<content>issued in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: "as custodian for (name of minor) under the Texas Uniform Transfers to Minors Act"; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t10/c141/s141.010/B">
<num value="B">(B)</num>
<content>delivered to an adult other than the transferor or to a trust company, endorsed to that person followed in substance by the words: "as a custodian for (name of minor) under the Texas Uniform Transfers to Minors Act"; or</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.010/7">
<num value="7">(7)</num>
<content>an interest in any property not described in Subdivisions (1)-(6) is transferred to an adult other than the transferor or to a trust company by a written instrument in substantially the form set forth in Subsection (b).</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t10/c141/s141.010/b">
<num value="b">(b)</num>
<content>An instrument in the following form satisfies the requirements of Subsections (a)(1)(B) and (7):</content>
</subsection>
<sourceCredit>TRANSFER UNDER THE TEXAS UNIFORM TRANSFERS TO MINORS ACT
I, ____________________ (name of transferor or name and representative capacity if a fiduciary) hereby transfer to ____________________ (name of custodian), as custodian for ____________________ (name of minor) under the Texas Uniform Transfers to Minors Act, the following: (insert a description of the custodial property sufficient to identify it).
Dated: ____________________
____________________(Signature)
____________________ (name of custodian) acknowledges receipt of the property described above as custodian for the minor named above under the Texas Uniform Transfers to Minors Act.
Dated: ____________________
____________________
____________________(Signature of Custodian)
(c) A transferor shall place the custodian in control of the custodial property as soon as practicable.
Amended by Acts 1995, 74th Leg., ch. 1043, Sec. 1, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 10 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(72), eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c141/s141.011">
<num value="141.011">Sec. 141.011.</num>
<heading>SINGLE CUSTODIANSHIP</heading>
<content>A transfer may be made only for one minor, and only one person may be the custodian. All custodial property held under this chapter by the same custodian for the benefit of the same minor constitutes a single custodianship.</content>
<sourceCredit>Amended by Acts 1995, 74th Leg., ch. 1043, Sec. 1, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 11 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(72), eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c141/s141.012">
<num value="141.012">Sec. 141.012.</num>
<heading>VALIDITY AND EFFECT OF TRANSFER</heading>
<subsection identifier="/us/tx/pr/t10/c141/s141.012/a">
<num value="a">(a)</num>
<chapeau>The validity of a transfer made in a manner prescribed by this chapter is not affected by the:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c141/s141.012/1">
<num value="1">(1)</num>
<content>transferor's failure to comply with Section 141.010(c) concerning possession and control;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.012/2">
<num value="2">(2)</num>
<content>designation of an ineligible custodian, except designation of the transferor in the case of property for which the transferor is ineligible to serve as custodian under Section 141.010(a); or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.012/3">
<num value="3">(3)</num>
<content>death or incapacity of a person nominated under Section 141.004 or designated under Section 141.010 as custodian or the disclaimer of the office by that person.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t10/c141/s141.012/b">
<num value="b">(b)</num>
<content>A transfer made under Section 141.010 is irrevocable, and the custodial property is indefeasibly vested in the minor. The custodian has all the rights, powers, duties, and authority provided in this chapter, and the minor or the minor's legal representative does not have any right, power, duty, or authority with respect to the custodial property except as provided by this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c141/s141.012/c">
<num value="c">(c)</num>
<content>By making a transfer, the transferor incorporates all the provisions of this chapter in the disposition and grants to the custodian, or to any third person dealing with a person designated as custodian, the respective powers, rights and immunities provided by this chapter.</content>
</subsection>
<sourceCredit>Amended by Acts 1995, 74th Leg., ch. 1043, Sec. 1, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 12 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(72), eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c141/s141.013">
<num value="141.013">Sec. 141.013.</num>
<heading>CARE OF CUSTODIAL PROPERTY</heading>
<subsection identifier="/us/tx/pr/t10/c141/s141.013/a">
<num value="a">(a)</num>
<chapeau>A custodian shall:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c141/s141.013/1">
<num value="1">(1)</num>
<content>take control of custodial property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.013/2">
<num value="2">(2)</num>
<content>register or record title to custodial property if appropriate; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.013/3">
<num value="3">(3)</num>
<content>collect, hold, manage, sell, convey, invest, and reinvest custodial property.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t10/c141/s141.013/b">
<num value="b">(b)</num>
<content>In dealing with custodial property, a custodian shall observe the standard of care that would be observed by a prudent person dealing with property of another and is not limited by any other statute restricting investments by fiduciaries. If a custodian has a special skill or expertise, the custodian shall use that skill or expertise. However, a custodian, in the custodian's discretion and without liability to the minor or the minor's estate, may retain any custodial property received from a transferor.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c141/s141.013/c">
<num value="c">(c)</num>
<chapeau>A custodian may invest in or pay premiums on life insurance or endowment policies on the life of:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c141/s141.013/1">
<num value="1">(1)</num>
<content>the minor only if the minor or the minor's estate is the sole beneficiary; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.013/2">
<num value="2">(2)</num>
<content>another person in whom the minor has an insurable interest only to the extent that the minor, the minor's estate, or the custodian in the capacity of the custodian is the irrevocable beneficiary.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t10/c141/s141.013/d">
<num value="d">(d)</num>
<content>A custodian at all times shall keep custodial property separate and distinct from all other property in a manner sufficient to identify it clearly as custodial property of the minor. Custodial property consisting of an undivided interest is so identified if the minor's interest is held as a tenant in common and is fixed. Custodial property subject to recordation is so identified if it is recorded, and custodial property subject to registration is so identified if it is registered, or held in an account designated, in the name of the custodian followed in substance by the words: "as custodian for ____________________ (name of minor) under the Texas Uniform Transfers to Minors Act."</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c141/s141.013/e">
<num value="e">(e)</num>
<content>A custodian shall keep records of all transactions with respect to custodial property, including information necessary for the preparation of the minor's tax returns, and shall make the records available for inspection at reasonable intervals by a parent or legal representative of the minor or by the minor if the minor is at least 14 years of age.</content>
</subsection>
<sourceCredit>Amended by Acts 1995, 74th Leg., ch. 1043, Sec. 1, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 13 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(72), eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c141/s141.014">
<num value="141.014">Sec. 141.014.</num>
<heading>POWERS OF CUSTODIAN</heading>
<subsection identifier="/us/tx/pr/t10/c141/s141.014/a">
<num value="a">(a)</num>
<content>A custodian, acting in a custodial capacity, has all the rights, powers, and authority over custodial property that unmarried adult owners have over their own property, but a custodian may exercise those rights, powers, and authority in that capacity only.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c141/s141.014/b">
<num value="b">(b)</num>
<content>This section does not relieve a custodian from liability for breach of Section 141.013.</content>
</subsection>
<sourceCredit>Amended by Acts 1995, 74th Leg., ch. 1043, Sec. 1, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 14 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(72), eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c141/s141.015">
<num value="141.015">Sec. 141.015.</num>
<heading>USE OF CUSTODIAL PROPERTY</heading>
<subsection identifier="/us/tx/pr/t10/c141/s141.015/a">
<num value="a">(a)</num>
<chapeau>A custodian may deliver or pay to the minor or expend for the minor's benefit as much of the custodial property as the custodian considers advisable for the use and benefit of the minor, without court order and without regard to:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c141/s141.015/1">
<num value="1">(1)</num>
<content>the duty or ability of the custodian personally or of any other person to support the minor; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.015/2">
<num value="2">(2)</num>
<content>any other income or property of the minor that may be applicable or available for that purpose.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t10/c141/s141.015/b">
<num value="b">(b)</num>
<content>On petition of an interested person or the minor if the minor is at least 14 years of age, the court may order the custodian to deliver or pay to the minor or expend for the minor's benefit as much of the custodial property as the court considers advisable for the use and benefit of the minor.</content>
<continuation>(b-1) A custodian may, without a court order, transfer all or part of the custodial property to a qualified minor's trust. A transfer of property under this subsection terminates the custodianship to the extent of the property transferred.</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t10/c141/s141.015/c">
<num value="c">(c)</num>
<content>A delivery, payment, or expenditure under this section is in addition to, not in substitution for, and does not affect any obligation of a person to support the minor.</content>
</subsection>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 1043, Sec. 1, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 15 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(72), eff. Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 451 (H.B. 564), Sec. 19, eff. September 1, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c141/s141.016">
<num value="141.016">Sec. 141.016.</num>
<heading>CUSTODIAN'S EXPENSES, COMPENSATION, AND BOND</heading>
<subsection identifier="/us/tx/pr/t10/c141/s141.016/a">
<num value="a">(a)</num>
<content>A custodian is entitled to reimbursement from custodial property for reasonable expenses incurred in the performance of the custodian's duties.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c141/s141.016/b">
<num value="b">(b)</num>
<content>Except for one who is a transferor under Section 141.005, a custodian has a noncumulative election during each calendar year to charge reasonable compensation for services performed by the custodian during that year.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c141/s141.016/c">
<num value="c">(c)</num>
<content>Except as provided by Section 141.019(f), a custodian is not required to give a bond.</content>
</subsection>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 1043, Sec. 1, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 16 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(72), eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c141/s141.017">
<num value="141.017">Sec. 141.017.</num>
<heading>EXEMPTION OF THIRD PERSON FROM LIABILITY</heading>
<chapeau>A third person, in good faith and without court order, may act on the instructions of or otherwise deal with any person purporting to make a transfer or act in the capacity of a custodian and, in the absence of knowledge, is not responsible for determining the:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c141/s141.017/1">
<num value="1">(1)</num>
<content>validity of the purported custodian's designation;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.017/2">
<num value="2">(2)</num>
<content>propriety of, or the authority under this chapter for, any act of the purported custodian;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.017/3">
<num value="3">(3)</num>
<content>validity or propriety under this chapter of any instrument or instructions executed or given by the person purporting to make a transfer or by the purported custodian; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.017/4">
<num value="4">(4)</num>
<content>propriety of the application of the minor's property delivered to the purported custodian.</content>
</paragraph>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 1043, Sec. 1, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 17 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(72), eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c141/s141.018">
<num value="141.018">Sec. 141.018.</num>
<heading>LIABILITY TO THIRD PERSON</heading>
<subsection identifier="/us/tx/pr/t10/c141/s141.018/a">
<num value="a">(a)</num>
<content>A claim based on a contract entered into by a custodian acting in a custodial capacity, an obligation arising from the ownership or control of custodial property, or a tort committed during the custodianship may be asserted against the custodial property by proceeding against the custodian in the custodian's custodial capacity, whether or not the custodian or the minor is personally liable for the claim.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c141/s141.018/b">
<num value="b">(b)</num>
<chapeau>A custodian is not personally liable:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c141/s141.018/1">
<num value="1">(1)</num>
<content>on a contract properly entered into in the custodian's custodial capacity unless the custodian fails to reveal that capacity and to identify the custodianship in the contract; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.018/2">
<num value="2">(2)</num>
<content>for an obligation arising from control of custodial property or for a tort committed during the custodianship unless the custodian is personally at fault.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t10/c141/s141.018/c">
<num value="c">(c)</num>
<content>A minor is not personally liable for an obligation arising from ownership of custodial property or for a tort committed during the custodianship unless the minor is personally at fault.</content>
</subsection>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 1043, Sec. 1, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 18 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(72), eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c141/s141.019">
<num value="141.019">Sec. 141.019.</num>
<heading>RENUNCIATION, RESIGNATION, DEATH, OR REMOVAL OF CUSTODIAN; DESIGNATION OF SUCCESSOR CUSTODIAN</heading>
<subsection identifier="/us/tx/pr/t10/c141/s141.019/a">
<num value="a">(a)</num>
<content>A person nominated to serve as a custodian under Section 141.004 or designated to serve as a custodian under Section 141.010 may decline to serve as custodian by delivering written notice to the person who made the nomination or to the transferor's legal representative. If the event giving rise to a transfer has not occurred and no substitute custodian who is able, willing, and eligible to serve was nominated under Section 141.004, the person who made the nomination may nominate a substitute custodian under Section 141.004; otherwise the transferor or the transferor's legal representative shall designate a substitute custodian at the time of the transfer, in either case from among the persons eligible to serve as custodian for that kind of property under Section 141.010(a). A substitute custodian designated under this section has the rights of a successor custodian.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c141/s141.019/b">
<num value="b">(b)</num>
<content>A custodian at any time may designate as successor custodian a trust company or an adult other than a transferor under Section 141.005 by executing and dating an instrument of designation before a subscribing witness other than the successor. If the instrument of designation does not contain or is not accompanied by the custodian's resignation, the designation of the successor does not take effect until the custodian resigns, dies, becomes incapacitated, or is removed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c141/s141.019/c">
<num value="c">(c)</num>
<chapeau>A custodian may resign at any time by delivering:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c141/s141.019/1">
<num value="1">(1)</num>
<content>written notice to the successor custodian and to the minor if the minor is at least 14 years of age; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.019/2">
<num value="2">(2)</num>
<content>the custodial property to the successor custodian.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t10/c141/s141.019/d">
<num value="d">(d)</num>
<content>If a custodian is ineligible, dies, or becomes incapacitated without having effectively designated a successor and the minor is at least 14 years of age, the minor may designate as successor custodian an adult member of the minor's family, a guardian of the minor, or a trust company in the manner prescribed by Subsection (b). If the minor is younger than 14 years of age or fails to act within 60 days after the ineligibility, death, or incapacity of the custodian, the minor's guardian becomes successor custodian. If the minor has no guardian or the minor's guardian declines to act, the transferor, the legal representative of the transferor or of the custodian, an adult member of the minor's family, or any other interested person may petition the court to designate a successor custodian.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c141/s141.019/e">
<num value="e">(e)</num>
<content>As soon as practicable, a custodian who declines to serve under Subsection (a) or resigns under Subsection (c), or the legal representative of a deceased or incapacitated custodian, shall put the custodial property and records in the possession and control of the successor custodian. The successor custodian by action may enforce the obligation to deliver custodial property and records and becomes responsible for each item as received.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c141/s141.019/f">
<num value="f">(f)</num>
<chapeau>A transferor, the legal representative of a transferor, an adult member of the minor's family, a guardian of the person of the minor, the guardian of the minor, or the minor if the minor is at least 14 years of age may petition the court to:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c141/s141.019/1">
<num value="1">(1)</num>
<content>remove the custodian for cause and designate a successor custodian other than a transferor under Section 141.005; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.019/2">
<num value="2">(2)</num>
<content>require the custodian to give appropriate bond.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 1043, Sec. 1, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 19 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(72), eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c141/s141.020">
<num value="141.020">Sec. 141.020.</num>
<heading>ACCOUNTING BY AND DETERMINATION OF LIABILITY</heading>
<subsection identifier="/us/tx/pr/t10/c141/s141.020/a">
<num value="a">(a)</num>
<chapeau>A minor who is at least 14 years of age, the minor's guardian of the person or legal representative, an adult member of the minor's family, a transferor, or a transferor's legal representative may petition the court for:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c141/s141.020/1">
<num value="1">(1)</num>
<content>an accounting by the custodian or the custodian's legal representative; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.020/2">
<num value="2">(2)</num>
<content>a determination of responsibility, as between the custodial property and the custodian personally, for claims against the custodial property unless the responsibility has been adjudicated in an action under Section 141.018 to which the minor or the minor's legal representative was a party.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t10/c141/s141.020/b">
<num value="b">(b)</num>
<content>A successor custodian may petition the court for an accounting by the predecessor custodian.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c141/s141.020/c">
<num value="c">(c)</num>
<content>The court, in a proceeding under this chapter or in any other proceeding, may require or permit the custodian or the custodian's legal representative to account.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c141/s141.020/d">
<num value="d">(d)</num>
<content>If a custodian is removed under Section 141.019(f), the court shall require an accounting and order delivery of the custodial property and records to the successor custodian and the execution of all instruments required for transfer of the custodial property.</content>
</subsection>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 1043, Sec. 1, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 20 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(72), eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c141/s141.021">
<num value="141.021">Sec. 141.021.</num>
<heading>TERMINATION OF CUSTODIANSHIP</heading>
<chapeau>The custodian shall transfer in an appropriate manner the custodial property to the minor or to the minor's estate on the earlier of the date:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c141/s141.021/1">
<num value="1">(1)</num>
<content>the minor attains 21 years of age, with respect to custodial property transferred under Section 141.005 or 141.006;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.021/2">
<num value="2">(2)</num>
<content>the minor attains the age of majority under the laws of this state other than this chapter, with respect to custodial property transferred under Section 141.007 or 141.008; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.021/3">
<num value="3">(3)</num>
<content>the minor's death.</content>
</paragraph>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 1043, Sec. 1, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 21 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(72), eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c141/s141.022">
<num value="141.022">Sec. 141.022.</num>
<heading>APPLICABILITY</heading>
<chapeau>Except as provided by Section 141.025, this chapter applies to a transfer within the scope of Section 141.003 made after September 1, 1995, if:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c141/s141.022/1">
<num value="1">(1)</num>
<content>the transfer purports to have been made under the Texas Uniform Gifts to Minors Act; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.022/2">
<num value="2">(2)</num>
<content>the instrument by which the transfer purports to have been made uses in substance the designation "as custodian under the Uniform Gifts to Minors Act" or "as custodian under the Uniform Transfers to Minors Act" of any other state, and the application of this chapter is necessary to validate the transfer.</content>
</paragraph>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 1043, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 1997, 75th Leg., ch. 221, Sec. 1, eff. Sept. 1, 1997. Renumbered from Property Code Sec. 22 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(72), eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c141/s141.023">
<num value="141.023">Sec. 141.023.</num>
<heading>EFFECT ON EXISTING CUSTODIANSHIPS</heading>
<subsection identifier="/us/tx/pr/t10/c141/s141.023/a">
<num value="a">(a)</num>
<content>Any transfer of custodial property under this chapter made before September 1, 1995, is validated notwithstanding that there was no specific authority in this chapter for the coverage of custodial property of that kind or for a transfer from that source at the time the transfer was made.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c141/s141.023/b">
<num value="b">(b)</num>
<content>Sections 141.002 and 141.021, with respect to the age of a minor for whom custodial property is held under this chapter, do not apply to custodial property held in a custodianship that terminated because the minor attained the age of 18 after August 26, 1973, and before September 1, 1995.</content>
</subsection>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 1043, Sec. 1, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 23 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(72), eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c141/s141.024">
<num value="141.024">Sec. 141.024.</num>
<heading>UNIFORMITY OF APPLICATION AND CONSTRUCTION</heading>
<content>This chapter shall be applied and construed to effect its general purpose, to make uniform the law with respect to the subject of this chapter among states enacting that law.</content>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 1043, Sec. 1, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 24 by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(72), eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c141/s141.025">
<num value="141.025">Sec. 141.025.</num>
<heading>ADDITIONAL TRANSFERS TO CUSTODIANSHIPS IN EXISTENCE BEFORE EFFECTIVE DATE OF ACT</heading>
<subsection identifier="/us/tx/pr/t10/c141/s141.025/a">
<num value="a">(a)</num>
<content>This section applies only to a transfer within the scope of Section 141.003 made after September 1, 1995, to a custodian of a custodianship established before September 1, 1995, under the Texas Uniform Gifts to Minors Act.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c141/s141.025/b">
<num value="b">(b)</num>
<chapeau>This chapter does not prevent a person from making additional transfers to a custodianship described by Subsection (a). On the direction of the transferor or custodian, custodial property that is transferred to the custodianship shall be commingled with the custodial property of the custodianship established under the Texas Uniform Gifts to Minors Act. The additional transfers to the custodianship shall be administered and distributed on termination of the custodianship, as prescribed by this chapter, except that for purposes of Section 141.021, the custodian shall transfer the custodial property to:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c141/s141.025/1">
<num value="1">(1)</num>
<content>the beneficiary on the date the beneficiary attains 18 years of age or an earlier date as prescribed by Section 141.021; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c141/s141.025/2">
<num value="2">(2)</num>
<content>the beneficiary's estate if the individual dies before the date prescribed by Subdivision (1).</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 221, Sec. 2, eff. Sept. 1, 1997. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 31.01(72), eff. Sept. 1, 1997. Renumbered from Property Code Sec. 25 by Acts 1999, 76th Leg., ch. 62, Sec. 19.01(91), eff. Sept. 1, 1999.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t10/c142">
<num value="142">CHAPTER 142.</num>
<heading>MANAGEMENT OF PROPERTY RECOVERED IN SUIT BY A NEXT FRIEND OR GUARDIAN AD LITEM</heading>
<section identifier="/us/tx/pr/t10/c142/s142.001">
<num value="142.001">Sec. 142.001.</num>
<heading>MANAGEMENT BY DECREE</heading>
<subsection identifier="/us/tx/pr/t10/c142/s142.001/a">
<num value="a">(a)</num>
<content>In a suit in which a minor or incapacitated person who has no legal guardian is represented by a next friend or an appointed guardian ad litem, the court, on application and hearing, may provide by decree for the investment of funds accruing to the minor or other person under the judgment in the suit.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c142/s142.001/b">
<num value="b">(b)</num>
<content>If the decree is made during vacation, it must be recorded in the minutes of the succeeding term of the court.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3711, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 18, Sec. 14(b), eff. Oct. 2, 1984; Acts 1999, 76th Leg., ch. 195, Sec. 2, eff. Sept. 1, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c142/s142.002">
<num value="142.002">Sec. 142.002.</num>
<heading>MANAGEMENT BY BONDED MANAGER</heading>
<subsection identifier="/us/tx/pr/t10/c142/s142.002/a">
<num value="a">(a)</num>
<content>In a suit in which a minor or incapacitated person who has no legal guardian is represented by a next friend or an appointed guardian ad litem, the court in which a judgment is rendered may by an order entered of record authorize the next friend, the guardian ad litem, or another person to take possession of money or other personal property recovered under the judgment for the minor or other person represented.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c142/s142.002/b">
<num value="b">(b)</num>
<chapeau>The next friend, guardian ad litem, or other person may not take possession of the property until the person has executed a bond as principal that:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c142/s142.002/1">
<num value="1">(1)</num>
<content>is in an amount at least double the value of the property or, if a surety on the bond is a solvent surety company authorized under the law of this state to execute the bond, is in an amount at least equal to the value of the property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c142/s142.002/2">
<num value="2">(2)</num>
<content>is payable to the county judge; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c142/s142.002/3">
<num value="3">(3)</num>
<content>is conditioned on the obligation of the next friend, guardian ad litem, or other person to use the property under the direction of the court for the benefit of its owner and to return the property, with interest or other increase, to the person entitled to receive the property when ordered by the court to do so.</content>
</paragraph>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3711, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 18, Sec. 14(c), eff. Oct. 2, 1984; Acts 1999, 76th Leg., ch. 195, Sec. 3, eff. Sept. 1, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c142/s142.003">
<num value="142.003">Sec. 142.003.</num>
<heading>COMPENSATION AND DUTIES OF MANAGERS</heading>
<subsection identifier="/us/tx/pr/t10/c142/s142.003/a">
<num value="a">(a)</num>
<content>A person who manages property under Section 142.001 or 142.002 is entitled to receive compensation as allowed by the court.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c142/s142.003/b">
<num value="b">(b)</num>
<content>The person shall make dispositions of the property as ordered by the court and shall return the property into court on the order of the court.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3711, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c142/s142.004">
<num value="142.004">Sec. 142.004.</num>
<heading>INVESTMENT OF FUNDS</heading>
<subsection identifier="/us/tx/pr/t10/c142/s142.004/a">
<num value="a">(a)</num>
<chapeau>In a suit in which a minor or incapacitated person who has no legal guardian is represented by a next friend or an appointed guardian ad litem, any money recovered by the plaintiff, if not otherwise managed under this chapter, may be invested:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c142/s142.004/1">
<num value="1">(1)</num>
<chapeau>by the next friend or guardian ad litem in:</chapeau>
<subparagraph identifier="/us/tx/pr/t10/c142/s142.004/A">
<num value="A">(A)</num>
<content>a higher education savings plan established under Subchapter G, Chapter 54, Education Code, a prepaid tuition program established under Subchapter H, Chapter 54, Education Code, or an ABLE account established in accordance with the Texas Achieving a Better Life Experience (ABLE) Program under Subchapter J, Chapter 54, Education Code; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t10/c142/s142.004/B">
<num value="B">(B)</num>
<content>interest-bearing time deposits in a financial institution doing business in this state and insured by the Federal Deposit Insurance Corporation; or</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c142/s142.004/2">
<num value="2">(2)</num>
<chapeau>by the clerk of the court, on written order of the court of proper jurisdiction, in:</chapeau>
<subparagraph identifier="/us/tx/pr/t10/c142/s142.004/A">
<num value="A">(A)</num>
<content>a higher education savings plan established under Subchapter G, Chapter 54, Education Code, a prepaid tuition program established under Subchapter H, Chapter 54, Education Code, or an ABLE account established in accordance with the Texas Achieving a Better Life Experience (ABLE) Program under Subchapter J, Chapter 54, Education Code;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t10/c142/s142.004/B">
<num value="B">(B)</num>
<content>interest-bearing deposits in a financial institution doing business in this state and insured by the Federal Deposit Insurance Corporation;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t10/c142/s142.004/C">
<num value="C">(C)</num>
<content>United States treasury bills;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t10/c142/s142.004/D">
<num value="D">(D)</num>
<content>an eligible interlocal investment pool that meets the requirements of Sections 2256.016, 2256.017, and 2256.019, Government Code; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t10/c142/s142.004/E">
<num value="E">(E)</num>
<content>a no-load money market mutual fund, if the fund:</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t10/c142/s142.004/i">
<num value="i">(i)</num>
<chapeau>is regulated by the Securities and Exchange Commission;</chapeau>
<clause identifier="/us/tx/pr/t10/c142/s142.004/ii">
<num value="ii">(ii)</num>
<content>has a dollar weighted average stated maturity of 90 days or fewer; and</content>
</clause>
<clause identifier="/us/tx/pr/t10/c142/s142.004/iii">
<num value="iii">(iii)</num>
<content>includes in its investment objectives the maintenance of a stable net asset value of $1 for each share.</content>
</clause>
</subsection>
<subsection identifier="/us/tx/pr/t10/c142/s142.004/b">
<num value="b">(b)</num>
<content>If the money invested under this section may not be withdrawn from the financial institution without an order of the court, a next friend or guardian ad litem who makes the investment is not required to execute a bond with respect to the money.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c142/s142.004/c">
<num value="c">(c)</num>
<chapeau>When money invested under this section is withdrawn, the court may:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c142/s142.004/1">
<num value="1">(1)</num>
<content>on a finding that the person entitled to receive the money is no longer under the disability, order the funds turned over to the person; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c142/s142.004/2">
<num value="2">(2)</num>
<content>order management of the funds under another provision of this chapter.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t10/c142/s142.004/d">
<num value="d">(d)</num>
<content>Interest earned on an account invested by the clerk of the court shall be paid in the same manner as interest earned on an account under Chapter 117, Local Government Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c142/s142.004/e">
<num value="e">(e)</num>
<content>If money is invested under Subsection (a)(2)(E), the court may waive any bonding requirement.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3712, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 18, Sec. 14(d), eff. Oct. 2, 1984; Acts 1997, 75th Leg., ch. 505, Sec. 22, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 94, Sec. 1, eff. May 17, 1999; Acts 1999, 76th Leg., ch. 195, Sec. 4, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 1420, Sec. 17.002, eff. Sept. 1, 2001.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 289 (H.B. 1560), Sec. 1, eff. September 1, 2015.
Acts 2017, 85th Leg., R.S., Ch. 938 (S.B. 1764), Sec. 3, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c142/s142.005">
<num value="142.005">Sec. 142.005.</num>
<heading>TRUST FOR PROPERTY</heading>
<subsection identifier="/us/tx/pr/t10/c142/s142.005/a">
<num value="a">(a)</num>
<content>Any court of record with jurisdiction to hear a suit involving a beneficiary may, on application and on a finding that the creation of a trust would be in the best interests of the beneficiary, enter a decree in the record directing the clerk to deliver any funds accruing to the beneficiary under the judgment to a financial institution, except as provided by Subsections (m) and (n).</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c142/s142.005/b">
<num value="b">(b)</num>
<chapeau>The decree shall provide for the creation of a trust for the management of the funds for the benefit of the beneficiary and for terms, conditions, and limitations of the trust, as determined by the court, that are not in conflict with the following mandatory provisions:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c142/s142.005/1">
<num value="1">(1)</num>
<content>The beneficiary shall be the sole beneficiary of the trust.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c142/s142.005/2">
<num value="2">(2)</num>
<content>The trustee may disburse amounts of the trust's principal, income, or both as the trustee in the trustee's sole discretion determines to be reasonably necessary for the health, education, support, or maintenance of the beneficiary. The trustee may conclusively presume that medicine or treatments approved by a licensed physician are appropriate for the health of the beneficiary.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c142/s142.005/3">
<num value="3">(3)</num>
<content>The income of the trust not disbursed under Subdivision (2) shall be added to the principal of the trust.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c142/s142.005/4">
<num value="4">(4)</num>
<content>If the beneficiary is a minor who is not considered disabled for purposes of 42 U.S.C. Chapter 7, Subchapter XVI, the trust shall terminate on the death of the beneficiary, on the beneficiary's attaining an age stated in the trust, or on the 25th birthday of the beneficiary, whichever occurs first.</content>
<continuation>(4-a) If the court finds that a minor beneficiary is considered disabled for purposes of 42 U.S.C. Chapter 7, Subchapter XVI, the trust shall terminate on the death of the beneficiary.</continuation>
<continuation>(4-b) If the beneficiary is an incapacitated person, the trust shall terminate on the death of the beneficiary or when the beneficiary regains capacity.</continuation>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c142/s142.005/5">
<num value="5">(5)</num>
<content>A trustee that is a financial institution shall serve without bond.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c142/s142.005/6">
<num value="6">(6)</num>
<content>The trustee shall receive reasonable compensation paid from trust's income, principal, or both on application to and approval of the court.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c142/s142.005/7">
<num value="7">(7)</num>
<content>The first page of the trust instrument shall contain the following notice:</content>
</paragraph>
</subsection>
<sourceCredit>NOTICE: THE BENEFICIARY AND CERTAIN PERSONS INTERESTED IN THE WELFARE OF THE BENEFICIARY MAY HAVE REMEDIES UNDER SECTION 114.008 OR 142.005, PROPERTY CODE.
(c) A trust established under this section may provide that:
(1) distributions of the trust principal before the termination of the trust may be made from time to time as the beneficiary attains designated ages and at designated percentages of the principal; and
(2) distributions, payments, uses, and applications of all trust funds may be made to the legal or natural guardian of the beneficiary or to the person having custody of the beneficiary or may be made directly to or expended for the benefit, support, or maintenance of the beneficiary without the intervention of any legal guardian or other legal representative of the beneficiary.
(d) A court that creates a trust under this section has continuing jurisdiction and supervisory power over the trust, including the power to construe, amend, revoke, modify, or terminate the trust. A trust created under this section is not subject to revocation by the beneficiary or a guardian of the beneficiary's estate. If the trust is revoked by the court before the beneficiary is 18 years old, the court may provide for the management of the trust principal and any undistributed income as authorized by this chapter. If the trust is revoked by the court after the beneficiary is 18 years old, the trust principal and any undistributed income shall be delivered to the beneficiary after the payment of all proper and necessary expenses.
(e) On the termination of the trust under its terms or on the death of the beneficiary, the trust principal and any undistributed income shall be paid to the beneficiary or to the representative of the estate of the deceased beneficiary.
(f) A trust established under this section prevails over any other law concerning minors, incapacitated persons, or their property, and the trust continues in force and effect until terminated or revoked, notwithstanding the appointment of a guardian of the estate of the minor or incapacitated person, or the attainment of the age of majority by the minor.
(g) Notwithstanding any other provision of this chapter, if the court finds that it would be in the best interests of the beneficiary for whom a trust is established under this section, the court may omit or modify any terms required by Subsection (b) if the court determines that the omission or modification is necessary or appropriate to allow the beneficiary to be eligible to receive public benefits or assistance under a state or federal program. This section does not require a distribution from a trust if the distribution is discretionary under the terms of the trust.
(h) A trust created under this section is subject to Subtitle B, Title 9.
(i) Notwithstanding Subsection (h), this section prevails over a provision in Subtitle B, Title 9, that is in conflict or inconsistent with this section.
(j) A provision in a trust created under this section that relieves a trustee from a duty, responsibility, or liability imposed by this section or Subtitle B, Title 9, is enforceable only if:
(1) the provision is limited to specific facts and circumstances unique to the property of that trust and is not applicable generally to the trust; and
(2) the court creating or modifying the trust makes a specific finding that there is clear and convincing evidence that the inclusion of the provision is in the best interests of the beneficiary of the trust.
(k) In addition to ordering other appropriate remedies and grounds, the court may appoint a guardian ad litem to investigate and report to the court whether the trustee should be removed for failing or refusing to make distributions for the health, education, support, or maintenance of the beneficiary required under the terms of the trust if the court is petitioned by:
(1) a parent of the beneficiary;
(2) a next friend of the beneficiary;
(3) a guardian of the beneficiary;
(4) a conservator of the beneficiary;
(5) a guardian ad litem for the beneficiary; or
(6) an attorney ad litem for the beneficiary.
(l) A person listed in Subsection (k) shall be reimbursed from the trust for reasonable attorney's fees, not to exceed $1,000, incurred in bringing the petition.
(m) If the value of the trust's principal is $50,000 or less, the court may appoint a person other than a financial institution to serve as trustee of the trust only if the court finds the appointment is in the beneficiary's best interests.
(n) If the value of the trust's principal is more than $50,000, the court may appoint a person other than a financial institution to serve as trustee of the trust only if the court finds that:
(1) no financial institution is willing to serve as trustee; and
(2) the appointment is in the beneficiary's best interests.
(o) In this section:
(1) "Beneficiary" means:
(A) a minor or incapacitated person who:
(i) has no legal guardian; and
(ii) is represented by a next friend or an appointed guardian ad litem; or
(B) a person with a physical disability.
(2) "Financial institution" means a financial institution, as defined by Section 201.101, Finance Code, that has trust powers, exists, and does business under the laws of this or another state or the United States.
Acts 1983, 68th Leg., p. 3712, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 18, Sec. 14(e), (f), eff. Oct. 2, 1984; Acts 1997, 75th Leg., ch. 128, Sec. 1, eff. Sept. 1, 1997; Acts 2003, 78th Leg., ch. 1154, Sec. 3, eff. Sept. 1, 2003.
Amended by:
Acts 2005, 79th Leg., Ch. 148 (H.B. 1190), Sec. 28, eff. January 1, 2006.
Acts 2007, 80th Leg., R.S., Ch. 451 (H.B. 564), Sec. 20, eff. September 1, 2007.
Acts 2019, 86th Leg., R.S., Ch. 1112 (H.B. 2245), Sec. 6, eff. September 1, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c142/s142.006">
<num value="142.006">Sec. 142.006.</num>
<heading>CLAIMS AGAINST PROPERTY</heading>
<content>If any person claims an interest in property subject to management under this chapter, the court having authority over the property may hear evidence on the interest and may order the claim or the portion of the claim found to be just to be paid to the person entitled to receive it.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3714, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c142/s142.007">
<num value="142.007">Sec. 142.007.</num>
<heading>INCAPACITATED PERSON</heading>
<content>For the purposes of this chapter, "incapacitated person" means a person who is impaired because of mental illness, mental deficiency, physical illness or disability, advanced age, chronic use of drugs, chronic intoxication, or any other cause except status as a minor to the extent that the person lacks sufficient understanding or capacity to make or communicate responsible decisions concerning his person.</content>
<sourceCredit>Added by Acts 1984, 68th Leg., 2nd C.S., ch. 18, Sec. 14(g), eff. Oct. 2, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c142/s142.008">
<num value="142.008">Sec. 142.008.</num>
<heading>STRUCTURED SETTLEMENT</heading>
<subsection identifier="/us/tx/pr/t10/c142/s142.008/a">
<num value="a">(a)</num>
<chapeau>In a suit in which a minor or incapacitated person who has no legal guardian is represented by a next friend or an appointed guardian ad litem, the court, on a motion from the parties, may provide for a structured settlement that:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c142/s142.008/1">
<num value="1">(1)</num>
<content>provides for periodic payments; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c142/s142.008/2">
<num value="2">(2)</num>
<chapeau>is funded by:</chapeau>
<subparagraph identifier="/us/tx/pr/t10/c142/s142.008/A">
<num value="A">(A)</num>
<content>an obligation guaranteed by the United States government; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t10/c142/s142.008/B">
<num value="B">(B)</num>
<content>an annuity contract that meets the requirements of Section 142.009.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t10/c142/s142.008/b">
<num value="b">(b)</num>
<chapeau>The person obligated to fund a structured settlement shall provide to the court:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c142/s142.008/1">
<num value="1">(1)</num>
<content>a copy of the instrument that provides funding for the structured settlement; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c142/s142.008/2">
<num value="2">(2)</num>
<content>an affidavit from an independent financial consultant that specifies the present value of the structured settlement and the method by which the value is calculated.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t10/c142/s142.008/c">
<num value="c">(c)</num>
<content>A structured settlement provided for under this section is solely for the benefit of the beneficiary of the structured settlement and is not subject to the interest payment calculations contained in Section 117.054, Local Government Code.</content>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 195, Sec. 5, eff. Sept. 1, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c142/s142.009">
<num value="142.009">Sec. 142.009.</num>
<heading>ANNUITY CONTRACT REQUIREMENTS FOR STRUCTURED SETTLEMENT</heading>
<subsection identifier="/us/tx/pr/t10/c142/s142.009/a">
<num value="a">(a)</num>
<chapeau>An insurance company providing an annuity contract for a structured settlement as provided by Section 142.008 must:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c142/s142.009/1">
<num value="1">(1)</num>
<content>be licensed to write annuity contracts in this state;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c142/s142.009/2">
<num value="2">(2)</num>
<content>have a minimum of $1 million of capital and surplus; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c142/s142.009/3">
<num value="3">(3)</num>
<content>be approved by the court and comply with any requirements imposed by the court to ensure funding to satisfy periodic settlement payments.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t10/c142/s142.009/b">
<num value="b">(b)</num>
<chapeau>In approving an insurance company under Subsection (a)(3), the court may consider whether the company:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c142/s142.009/1">
<num value="1">(1)</num>
<chapeau>holds an issuer credit rating equivalent to a National Association of Insurance Commissioners NAIC 1 designation from a national or international rating agency that:</chapeau>
<subparagraph identifier="/us/tx/pr/t10/c142/s142.009/A">
<num value="A">(A)</num>
<content>has registered with the Securities and Exchange Commission;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t10/c142/s142.009/B">
<num value="B">(B)</num>
<content>is designated as a nationally recognized statistical rating organization; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t10/c142/s142.009/C">
<num value="C">(C)</num>
<content>is on the list of Credit Rating Providers by the Securities Valuation Office of the National Association of Insurance Commissioners;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c142/s142.009/2">
<num value="2">(2)</num>
<content>is an affiliate, as that term is described by Section 823.003, Insurance Code, of a liability insurance carrier involved in the suit for which the structured settlement is created; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c142/s142.009/3">
<num value="3">(3)</num>
<content>is connected in any way to a person obligated to fund the structured settlement.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 195, Sec. 5, eff. Sept. 1, 1999. Amended by Acts 2001, 77th Leg., ch. 96, Sec. 2, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 1276, Sec. 10A.551, eff. Sept. 1, 2003.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 912 (H.B. 3771), Sec. 1, eff. June 10, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c142/s142.010">
<num value="142.010">Sec. 142.010.</num>
<heading>TRANSFER OF TRUST PROPERTY TO A POOLED TRUST SUBACCOUNT</heading>
<subsection identifier="/us/tx/pr/t10/c142/s142.010/a">
<num value="a">(a)</num>
<content>In this section, "management trust" means a trust created for a beneficiary in accordance with Section 142.005.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c142/s142.010/b">
<num value="b">(b)</num>
<content>If the court with continuing jurisdiction over a management trust determines that it is in the best interests of the beneficiary for whom the management trust is created, the court may order the transfer of all property in the management trust to a pooled trust subaccount established in accordance with Chapter 143.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c142/s142.010/c">
<num value="c">(c)</num>
<content>For purposes of a proceeding to determine whether to transfer property from a management trust to a pooled trust subaccount, the court may, but is not required to, appoint an attorney ad litem or guardian ad litem to represent the interests of a management trust beneficiary who has a physical disability and is not an incapacitated person. The attorney ad litem or the guardian ad litem is entitled to a reasonable fee and reimbursement of expenses to be paid from the management trust property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c142/s142.010/d">
<num value="d">(d)</num>
<content>The transfer of property from the management trust to the pooled trust subaccount shall be treated as a continuation of the management trust and may not be treated as the establishment of a new trust for purposes of 42 U.S.C. Section 1396p(d)(4)(A) or (C) or otherwise for purposes of the management trust beneficiary's eligibility for medical assistance under Chapter 32, Human Resources Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c142/s142.010/e">
<num value="e">(e)</num>
<content>The court may not allow termination of the management trust from which property is transferred under this section until all of the property in the management trust has been transferred to the pooled trust subaccount.</content>
</subsection>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 1112 (H.B. 2245), Sec. 7, eff. September 1, 2019.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t10/c143">
<num value="143">CHAPTER 143.</num>
<heading>POOLED TRUST SUBACCOUNTS</heading>
<section identifier="/us/tx/pr/t10/c143/s143.001">
<num value="143.001">Sec. 143.001.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c143/s143.001/1">
<num value="1">(1)</num>
<content>"Beneficiary" means a person for whose benefit a subaccount is established.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c143/s143.001/2">
<num value="2">(2)</num>
<content>"Incapacitated person" has the meaning assigned by Section 142.007.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c143/s143.001/3">
<num value="3">(3)</num>
<content>"Medical assistance" means benefits and services under the medical assistance program administered under Chapter 32, Human Resources Code.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c143/s143.001/4">
<num value="4">(4)</num>
<content>"Pooled trust" means a trust that meets the requirements of 42 U.S.C. Section 1396p(d)(4)(C) for purposes of exempting the trust from the applicability of 42 U.S.C. Section 1396p(d) in determining the eligibility of a person who is disabled for medical assistance.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c143/s143.001/5">
<num value="5">(5)</num>
<content>"Subaccount" means an account in a pooled trust established under this chapter.</content>
</paragraph>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 1112 (H.B. 2245), Sec. 8, eff. September 1, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c143/s143.002">
<num value="143.002">Sec. 143.002.</num>
<heading>APPLICATION TO ESTABLISH SUBACCOUNT</heading>
<chapeau>The following persons may apply to the court having jurisdiction under Section 142.005 for the establishment of a subaccount solely for the benefit of a proposed beneficiary who is a person for whom a management trust has been or could be established for the person's benefit under Section 142.005:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c143/s143.002/1">
<num value="1">(1)</num>
<content>the trustee of a management trust established under Section 142.005 for the benefit of the proposed beneficiary of the subaccount;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c143/s143.002/2">
<num value="2">(2)</num>
<content>the guardian of the person or estate, or both, of the proposed beneficiary of the subaccount;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c143/s143.002/3">
<num value="3">(3)</num>
<content>a person who has filed an application for the appointment of a guardian of the person or estate, or both, for the proposed beneficiary of the subaccount;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c143/s143.002/4">
<num value="4">(4)</num>
<content>an attorney ad litem or guardian ad litem appointed to represent the proposed beneficiary of the subaccount; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c143/s143.002/5">
<num value="5">(5)</num>
<content>the proposed beneficiary, if the proposed beneficiary is not a minor or incapacitated person.</content>
</paragraph>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 1112 (H.B. 2245), Sec. 8, eff. September 1, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c143/s143.003">
<num value="143.003">Sec. 143.003.</num>
<heading>APPOINTMENT OF ATTORNEY AD LITEM</heading>
<subsection identifier="/us/tx/pr/t10/c143/s143.003/a">
<num value="a">(a)</num>
<content>The court shall appoint an attorney ad litem for a person who is a minor or an incapacitated person and who is the subject of an application under Section 143.002.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c143/s143.003/b">
<num value="b">(b)</num>
<content>The attorney ad litem is entitled to a reasonable fee and reimbursement of expenses to be paid from the person's property.</content>
</subsection>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 1112 (H.B. 2245), Sec. 8, eff. September 1, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c143/s143.004">
<num value="143.004">Sec. 143.004.</num>
<heading>ESTABLISHMENT OF SUBACCOUNT</heading>
<chapeau>If the court finds that it is in the best interests of a person who is the subject of an application under Section 143.002, the court may order:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c143/s143.004/1">
<num value="1">(1)</num>
<content>the establishment of a subaccount of which the person is the beneficiary; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c143/s143.004/2">
<num value="2">(2)</num>
<content>the transfer to the subaccount of any of the person's property on hand or accruing to the person.</content>
</paragraph>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 1112 (H.B. 2245), Sec. 8, eff. September 1, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c143/s143.005">
<num value="143.005">Sec. 143.005.</num>
<heading>TERMS OF SUBACCOUNT</heading>
<chapeau>Unless the court orders otherwise, the terms governing the subaccount must provide that:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c143/s143.005/1">
<num value="1">(1)</num>
<chapeau>the subaccount terminates on the earliest of the date of:</chapeau>
<subparagraph identifier="/us/tx/pr/t10/c143/s143.005/A">
<num value="A">(A)</num>
<content>the beneficiary's 18th birthday, if the beneficiary:</content>
</subparagraph>
</paragraph>
<subsection identifier="/us/tx/pr/t10/c143/s143.005/i">
<num value="i">(i)</num>
<chapeau>is not found by the court to be considered disabled for purposes of 42 U.S.C. Chapter 7, Subchapter XVI; and</chapeau>
<clause identifier="/us/tx/pr/t10/c143/s143.005/ii">
<num value="ii">(ii)</num>
<content>is a minor at the time the subaccount is established;</content>
</clause>
<subparagraph identifier="/us/tx/pr/t10/c143/s143.005/B">
<num value="B">(B)</num>
<content>the beneficiary's death; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t10/c143/s143.005/C">
<num value="C">(C)</num>
<content>a court order terminating the subaccount; and</content>
</subparagraph>
<paragraph identifier="/us/tx/pr/t10/c143/s143.005/2">
<num value="2">(2)</num>
<chapeau>on termination, any property remaining in the beneficiary's subaccount after making any required payments to satisfy the amounts of medical assistance reimbursement claims for medical assistance provided to the beneficiary under this state's medical assistance program and other states' medical assistance programs shall be distributed to:</chapeau>
<subparagraph identifier="/us/tx/pr/t10/c143/s143.005/A">
<num value="A">(A)</num>
<content>the beneficiary, if on the date of termination the beneficiary is living and is not a minor or incapacitated person;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t10/c143/s143.005/B">
<num value="B">(B)</num>
<content>the beneficiary's guardian of the estate, if on the date of termination the beneficiary is living and is a minor or incapacitated person; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t10/c143/s143.005/C">
<num value="C">(C)</num>
<content>the personal representative of the beneficiary's estate, if on the date of termination the beneficiary is deceased.</content>
</subparagraph>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 1112 (H.B. 2245), Sec. 8, eff. September 1, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c143/s143.006">
<num value="143.006">Sec. 143.006.</num>
<heading>FEES AND REPORTING</heading>
<subsection identifier="/us/tx/pr/t10/c143/s143.006/a">
<num value="a">(a)</num>
<chapeau>The manager or trustee of a pooled trust may:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c143/s143.006/1">
<num value="1">(1)</num>
<content>assess fees against a subaccount of that pooled trust that is established under this chapter, in accordance with the manager's or trustee's standard fee structure; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c143/s143.006/2">
<num value="2">(2)</num>
<content>pay fees assessed under Subdivision (1) from the subaccount.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t10/c143/s143.006/b">
<num value="b">(b)</num>
<content>If required by the court, the manager or trustee of the pooled trust shall file a copy of the annual report of account with the court clerk.</content>
</subsection>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 1112 (H.B. 2245), Sec. 8, eff. September 1, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c143/s143.007">
<num value="143.007">Sec. 143.007.</num>
<heading>JURISDICTION EXCLUSIVE</heading>
<content>Notwithstanding any other law, the court that orders the establishment of a subaccount for a beneficiary has exclusive jurisdiction of a subsequent proceeding or action that relates to both the beneficiary and the subaccount, and the proceeding or action may be brought only in that court.</content>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 1112 (H.B. 2245), Sec. 8, eff. September 1, 2019.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t10/c161">
<num value="161">CHAPTER 161.</num>
<heading>MANAGEMENT AND CONTROL OF SECURITIES</heading>
<subchapter identifier="/us/tx/pr/t10/c161/scA">
<num value="A">SUBCHAPTER A.</num>
<heading>GENERAL PROVISIONS</heading>
<section identifier="/us/tx/pr/t10/c161/scA/s161.001">
<num value="161.001">Sec. 161.001.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c161/scA/s161.001/1">
<num value="1">(1)</num>
<content>"Fiduciary" means an executor, administrator, or trustee of an express trust, including a corporation or a natural person acting as fiduciary, and a successor or substitute, whether or not designated in a trust instrument.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c161/scA/s161.001/2">
<num value="2">(2)</num>
<content>"Clearing corporation" has the meaning assigned by Section 8.102, Business & Commerce Code, as amended.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3715, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c161/scA/s161.002">
<num value="161.002">Sec. 161.002.</num>
<heading>DECREE OR GOVERNING INSTRUMENT CONTROLS</heading>
<content>The authority granted in this chapter is subject to contrary or limiting provisions in the instrument or court order appointing the fiduciary of the securities or in a subsequent court order.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3715, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t10/c161/scB">
<num value="B">SUBCHAPTER B.</num>
<heading>CUSTODIAN OF SECURITIES</heading>
<section identifier="/us/tx/pr/t10/c161/scB/s161.021">
<num value="161.021">Sec. 161.021.</num>
<heading>AUTHORITY OF FIDUCIARY</heading>
<chapeau>A fiduciary who holds a security in a fiduciary capacity may:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c161/scB/s161.021/1">
<num value="1">(1)</num>
<content>employ a bank incorporated in this state or a national bank located in this state as custodian of the security; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c161/scB/s161.021/2">
<num value="2">(2)</num>
<content>whether the fiduciary is an individual or a bank and if any individual who is a cofiduciary with the bank consents, authorize the security to be registered and held in the name of a nominee of the bank without disclosing the fiduciary relationship.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3716, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c161/scB/s161.022">
<num value="161.022">Sec. 161.022.</num>
<heading>SEPARATE ASSETS</heading>
<subsection identifier="/us/tx/pr/t10/c161/scB/s161.022/a">
<num value="a">(a)</num>
<chapeau>A bank holding a security under this subchapter, whether in registered or bearer form, at all times shall keep the security separate from the bank's assets. The bank may:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c161/scB/s161.022/1">
<num value="1">(1)</num>
<content>hold separately the certificates representing securities that periodically comprise the assets of a particular fiduciary account from those of all other accounts; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c161/scB/s161.022/2">
<num value="2">(2)</num>
<content>without certification as to ownership attached, hold in bulk certificates representing the same class of securities of the same issuer that periodically comprise the assets of different fiduciary accounts and, to the extent feasible, merge certificates of small denomination into one or more certificates of large denomination.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t10/c161/scB/s161.022/b">
<num value="b">(b)</num>
<content>A bank that holds security certificates in bulk is subject to the regulations issued by the Finance Commission of Texas if the bank is chartered by this state or by the comptroller of the currency if the bank is a national banking association.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3716, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c161/scB/s161.023">
<num value="161.023">Sec. 161.023.</num>
<heading>EXPENSE OF CUSTODIANSHIP</heading>
<content>Unless the fiduciary is a corporation, the cost of employing a bank as a custodian of securities under this subchapter is a charge against the estate or trust.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3716, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c161/scB/s161.024">
<num value="161.024">Sec. 161.024.</num>
<heading>RECORDS</heading>
<content>A bank holding a security under Section 161.021, whether in registered or bearer form, at all times shall keep records showing the ownership of the security.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3716, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c161/scB/s161.025">
<num value="161.025">Sec. 161.025.</num>
<heading>REDELIVERY OF SECURITY HELD BY NOMINEE</heading>
<subsection identifier="/us/tx/pr/t10/c161/scB/s161.025/a">
<num value="a">(a)</num>
<content>A bank holding a security in the name of a nominee of the bank under this subchapter may not redeliver the security to the individual fiduciary who authorized its registration in the name of the nominee without registering the security in the name of the individual fiduciary, as fiduciary.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c161/scB/s161.025/b">
<num value="b">(b)</num>
<content>A sale of the security by the bank at the direction of the individual fiduciary is not a redelivery.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3717, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c161/scB/s161.026">
<num value="161.026">Sec. 161.026.</num>
<heading>DISPOSITION OF SECURITY HELD BY NOMINEE</heading>
<content>A bank holding a security in the name of a nominee under this subchapter may make any disposition of the security that is authorized or ordered by a court having jurisdiction of the estate or trust.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3717, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c161/scB/s161.027">
<num value="161.027">Sec. 161.027.</num>
<heading>LIABILITY</heading>
<content>A bank holding a security in the name of a nominee under this subchapter is liable for a loss resulting from the acts of the bank's nominee with respect to the security.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3717, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c161/scB/s161.028">
<num value="161.028">Sec. 161.028.</num>
<heading>CERTIFICATION</heading>
<subsection identifier="/us/tx/pr/t10/c161/scB/s161.028/a">
<num value="a">(a)</num>
<content>On the demand of a fiduciary employing a bank to hold a security as custodian under this subchapter, the bank shall identify in a written certification the securities it holds for the fiduciary.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c161/scB/s161.028/b">
<num value="b">(b)</num>
<content>On the demand of a party, or the attorney of a party, to an accounting by a bank holding a security in the name of a nominee under this subchapter, the bank shall identify in a written certification the securities it holds as fiduciary.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3717, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t10/c161/scC">
<num value="C">SUBCHAPTER C.</num>
<heading>DEPOSIT OF SECURITY WITH FEDERAL RESERVE BANK OR CLEARING CORPORATION</heading>
<section identifier="/us/tx/pr/t10/c161/scC/s161.051">
<num value="161.051">Sec. 161.051.</num>
<heading>APPLICATION</heading>
<subsection identifier="/us/tx/pr/t10/c161/scC/s161.051/a">
<num value="a">(a)</num>
<chapeau>Except as provided by Subsection (b), this subchapter applies to a fiduciary holding a security in its fiduciary capacity and to a bank, trust company, or private banker holding a security as a fiduciary, custodian, custodian for a fiduciary, or managing agent, regardless of:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c161/scC/s161.051/1">
<num value="1">(1)</num>
<content>the date of the agreement, instrument, or court order by which the fiduciary, custodian, or managing agent is appointed; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c161/scC/s161.051/2">
<num value="2">(2)</num>
<content>ownership by the fiduciary, custodian, or managing agent of capital stock of the clearing corporation.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t10/c161/scC/s161.051/b">
<num value="b">(b)</num>
<content>This subchapter does not apply to a security held by a fiduciary, bank, trust company, or private banker on behalf of a domestic insurance company, unless the prior express approval of the State Board of Insurance is obtained. The board may grant approval to all domestic insurance companies generally, or to specific insurance companies on a case-by-case basis.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c161/scC/s161.051/c">
<num value="c">(c)</num>
<content>For the purposes of this subchapter, "fiduciary" includes a state or national bank acting in a fiduciary capacity.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3717, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c161/scC/s161.052">
<num value="161.052">Sec. 161.052.</num>
<heading>AUTHORITY OF FIDUCIARY</heading>
<chapeau>A fiduciary holding a security in its fiduciary capacity and a bank, trust company, or private banker holding a security as a custodian for a fiduciary, a managing agent, or a custodian may deposit or arrange for the deposit of the security with:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c161/scC/s161.052/1">
<num value="1">(1)</num>
<content>the Federal Reserve Bank of Dallas if the United States has agreed to pay or has guaranteed payment of the security's principal and interest; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c161/scC/s161.052/2">
<num value="2">(2)</num>
<content>a clearing corporation, either in this state or elsewhere, regardless of whether the clearing corporation conducts or is authorized to conduct business in this state.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3718, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c161/scC/s161.053">
<num value="161.053">Sec. 161.053.</num>
<heading>BULK HOLDINGS</heading>
<content>A clearing corporation may merge and hold in bulk certificates representing the same class of securities of the same issuer that are deposited with it under this subchapter, together with any other securities deposited with the clearing corporation by any person in the name of the nominee of the clearing corporation, regardless of the ownership of the securities. Certificates of small denomination may be merged into one or more certificates of larger denomination.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3718, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c161/scC/s161.054">
<num value="161.054">Sec. 161.054.</num>
<heading>RECORDS</heading>
<content>A fiduciary, bank, trust company, or private banker depositing a security under this subchapter shall show in its records at all times the ownership of the securities deposited in the account.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3719, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c161/scC/s161.055">
<num value="161.055">Sec. 161.055.</num>
<heading>REGULATION</heading>
<content>A bank, trust company, or private banker depositing securities under this subchapter is subject to the regulations issued by the Finance Commission of Texas if the institution is chartered by this state or is private or by the comptroller of the currency if the institution is a national banking association.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3719, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c161/scC/s161.056">
<num value="161.056">Sec. 161.056.</num>
<heading>BOOK TRANSFERS</heading>
<content>The Federal Reserve Bank of Dallas or a clearing corporation holding securities deposited under this subchapter may transfer ownership of or other interests in the securities by making entries in the books of the bank or corporation and without physical delivery of certificates representing the securities.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3719, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c161/scC/s161.057">
<num value="161.057">Sec. 161.057.</num>
<heading>LIABILITY</heading>
<content>A fiduciary who deposits securities in a clearing corporation is liable to the beneficial owner of the securities for a loss resulting from the acts or omissions of the clearing corporation. This subchapter does not affect a liability between the fiduciary and the clearing corporation.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3719, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c161/scC/s161.058">
<num value="161.058">Sec. 161.058.</num>
<heading>CERTIFICATION</heading>
<subsection identifier="/us/tx/pr/t10/c161/scC/s161.058/a">
<num value="a">(a)</num>
<content>On the demand of a fiduciary for whom a bank, trust company, or private banker is acting as custodian, the bank, trust company, or private banker shall identify in a written certification the securities deposited by the bank, trust company, or private banker with the federal reserve bank or in the clearing corporation for the account of the fiduciary.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c161/scC/s161.058/b">
<num value="b">(b)</num>
<content>On the demand of a party, or the attorney of a party, to an accounting by a fiduciary or by a bank, trust company, or private banker that is acting as a fiduciary, a custodian, a custodian for a fiduciary, or a managing agent, the fiduciary, bank, trust company, or private banker shall identify in a written certification to the party the securities deposited by the fiduciary, bank, trust company, or private banker with the federal reserve bank or the clearing corporation.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3719, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
</subchapter>
</chapter>
<chapter identifier="/us/tx/pr/t10/c162">
<num value="162">CHAPTER 162.</num>
<heading>CONSTRUCTION PAYMENTS, LOAN RECEIPTS, AND MISAPPLICATION OF TRUST FUNDS</heading>
<subchapter identifier="/us/tx/pr/t10/c162/scA">
<num value="A">SUBCHAPTER A.</num>
<heading>CONSTRUCTION PAYMENTS AND LOAN RECEIPTS</heading>
<section identifier="/us/tx/pr/t10/c162/scA/s162.001">
<num value="162.001">Sec. 162.001.</num>
<heading>CONSTRUCTION PAYMENTS AND LOAN RECEIPTS AS TRUST FUNDS</heading>
<subsection identifier="/us/tx/pr/t10/c162/scA/s162.001/a">
<num value="a">(a)</num>
<content>Construction payments are trust funds under this chapter if the payments are made to a contractor or subcontractor or to an officer, director, or agent of a contractor or subcontractor, under a construction contract for the improvement of specific real property in this state.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c162/scA/s162.001/b">
<num value="b">(b)</num>
<content>Loan receipts are trust funds under this chapter if the funds are borrowed by a contractor, subcontractor, or owner or by an officer, director, or agent of a contractor, subcontractor, or owner for the purpose of improving specific real property in this state, and the loan is secured in whole or in part by a lien on the property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c162/scA/s162.001/c">
<num value="c">(c)</num>
<chapeau>A fee payable to a contractor is not considered trust funds if:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c162/scA/s162.001/1">
<num value="1">(1)</num>
<content>the contractor and property owner have entered into a written construction contract for the improvement of specific real property in this state before the commencement of construction of the improvement and the contract provides for the payment by the owner of the costs of construction and a reasonable fee specified in the contract payable to the contractor; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c162/scA/s162.001/2">
<num value="2">(2)</num>
<content>the fee is earned as provided by the contract and paid to the contractor or disbursed from a construction account described by Section 162.006, if applicable.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t10/c162/scA/s162.001/d">
<num value="d">(d)</num>
<content>Trust funds paid to a creditor under this chapter are not property or an interest in property of a debtor who is a trustee described by Section 162.002.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3720, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1997, 75th Leg., ch. 1018, Sec. 1, eff. Sept. 1, 1997.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1277 (H.B. 1513), Sec. 1, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 1277 (H.B. 1513), Sec. 2, eff. September 1, 2009.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c162/scA/s162.002">
<num value="162.002">Sec. 162.002.</num>
<heading>CONTRACTORS AS TRUSTEES</heading>
<content>A contractor, subcontractor, or owner or an officer, director, or agent of a contractor, subcontractor, or owner, who receives trust funds or who has control or direction of trust funds, is a trustee of the trust funds.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3721, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c162/scA/s162.003">
<num value="162.003">Sec. 162.003.</num>
<heading>BENEFICIARIES OF TRUST FUNDS</heading>
<subsection identifier="/us/tx/pr/t10/c162/scA/s162.003/a">
<num value="a">(a)</num>
<content>A person who is an artisan, laborer, mechanic, contractor, subcontractor, or materialman who labors or who furnishes labor or material for the construction or repair of an improvement on specific real property in this state, or that person's qualified assignee under Section 162.0031, is a beneficiary of any trust funds paid or received in connection with the improvement.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c162/scA/s162.003/b">
<num value="b">(b)</num>
<content>A property owner is a beneficiary of trust funds described by Section 162.001 in connection with a residential construction contract, including funds deposited into a construction account described by Section 162.006.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3721, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1997, 75th Leg., ch. 1018, Sec. 2, eff. Sept. 1, 1997.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1277 (H.B. 1513), Sec. 3, eff. September 1, 2009.
Acts 2025, 89th Leg., R.S., Ch. 485 (S.B. 841), Sec. 1, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c162/scA/s162.0031">
<num value="162.0031">Sec. 162.0031.</num>
<heading>BENEFICIARY'S ASSIGNMENT OF INTEREST IN UNPAID TRUST FUNDS</heading>
<chapeau>An assignment by a beneficiary of the beneficiary's interest in unpaid trust funds under this chapter may not be enforced unless:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c162/scA/s162.0031/1">
<num value="1">(1)</num>
<chapeau>the assignment is:</chapeau>
<subparagraph identifier="/us/tx/pr/t10/c162/scA/s162.0031/A">
<num value="A">(A)</num>
<content>made in writing not earlier than the date the assignee has paid the beneficiary in good and sufficient funds for the assignment; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t10/c162/scA/s162.0031/B">
<num value="B">(B)</num>
<content>not made as part of the beneficiary's construction contract;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c162/scA/s162.0031/2">
<num value="2">(2)</num>
<content>the assignee is a beneficiary, trustee, or property owner under the contract for the construction or repair of an improvement on real property in connection with which the payment of trust funds is made; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c162/scA/s162.0031/3">
<num value="3">(3)</num>
<content>written notice of the assignment is provided to the property owner and the contractor on the project not later than the seventh day after the date the assignment is made.</content>
</paragraph>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 485 (S.B. 841), Sec. 2, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c162/scA/s162.004">
<num value="162.004">Sec. 162.004.</num>
<heading>APPLICATION</heading>
<subsection identifier="/us/tx/pr/t10/c162/scA/s162.004/a">
<num value="a">(a)</num>
<chapeau>This chapter does not apply to:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c162/scA/s162.004/1">
<num value="1">(1)</num>
<content>a bank, savings and loan, or other lender;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c162/scA/s162.004/2">
<num value="2">(2)</num>
<content>a title company or other closing agent; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c162/scA/s162.004/3">
<num value="3">(3)</num>
<content>a corporate surety who issues a payment bond covering the contract for the construction or repair of the improvement.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t10/c162/scA/s162.004/b">
<num value="b">(b)</num>
<content>The Texas Trust Act (Chapters 111 through 115) does not apply to any trust created under this chapter, nor does this chapter affect any provision of the Texas Trust Act.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c162/scA/s162.004/c">
<num value="c">(c)</num>
<content>Regardless of whether a construction contract is covered by a statutory or common law payment bond, this chapter applies to a public or private construction contract for the improvement of specific real property in this state.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3721, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1987, 70th Leg., ch. 578, Sec. 2, eff. Aug. 31, 1987.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1277 (H.B. 1513), Sec. 4, eff. September 1, 2009.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c162/scA/s162.005">
<num value="162.005">Sec. 162.005.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c162/scA/s162.005/1">
<num value="1">(1)</num>
<chapeau>A trustee acts with "intent to defraud" when the trustee:</chapeau>
<subparagraph identifier="/us/tx/pr/t10/c162/scA/s162.005/A">
<num value="A">(A)</num>
<content>retains, uses, disburses, or diverts trust funds with the intent to deprive the beneficiaries of the trust funds;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t10/c162/scA/s162.005/B">
<num value="B">(B)</num>
<content>retains, uses, disburses, or diverts trust funds and fails to establish or maintain a construction account as required by Section 162.006 or fails to establish or maintain an account record for the construction account as required by Section 162.007; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t10/c162/scA/s162.005/C">
<num value="C">(C)</num>
<content>uses, disburses, or diverts trust funds that were paid to the trustee in reliance on an affidavit furnished by the trustee under Section 53.085 if the affidavit contains false information relating to the trustee's payment of current or past due obligations.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c162/scA/s162.005/2">
<num value="2">(2)</num>
<content>"Current or past due obligations" are those obligations incurred or owed by the trustee for labor or materials furnished in the direct prosecution of the work under the construction contract prior to the receipt of the trust funds and which are due and payable by the trustee no later than 30 days following receipt of the trust funds.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c162/scA/s162.005/3">
<num value="3">(3)</num>
<content>"Direct cost" means a cost included under a construction contract that is specific to the construction of the improvement that is the subject of the contract.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c162/scA/s162.005/4">
<num value="4">(4)</num>
<content>"Indirect cost" means a cost included under a construction contract that is not specific to the construction of the improvement that is the subject of the contract.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c162/scA/s162.005/5">
<num value="5">(5)</num>
<content>"Financial institution" means a bank, savings association, savings bank, credit union, or savings and loan association authorized to do business in the state.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c162/scA/s162.005/6">
<num value="6">(6)</num>
<content>"Construction account" means an account in a financial institution into which only trust funds and funds deposited by the contractor that are necessary to pay charges imposed on the account by the financial institution may be maintained.</content>
</paragraph>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 578, Sec. 3, eff. Aug. 31, 1987. Amended by Acts 1997, 75th Leg., ch. 1018, Sec. 3, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c162/scA/s162.006">
<num value="162.006">Sec. 162.006.</num>
<heading>CONSTRUCTION ACCOUNT REQUIRED IN CERTAIN CIRCUMSTANCES</heading>
<subsection identifier="/us/tx/pr/t10/c162/scA/s162.006/a">
<num value="a">(a)</num>
<content>A contractor who enters into a written contract with a property owner to construct improvements to a residential homestead for an amount exceeding $5,000 shall deposit the trust funds in a construction account in a financial institution.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c162/scA/s162.006/b">
<num value="b">(b)</num>
<content>The periodic statement received from the financial institution must refer to the account as a "construction account" to satisfy the requirements of this section.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1018, Sec. 4, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c162/scA/s162.007">
<num value="162.007">Sec. 162.007.</num>
<heading>MANAGEMENT OF CONSTRUCTION ACCOUNTS</heading>
<subsection identifier="/us/tx/pr/t10/c162/scA/s162.007/a">
<num value="a">(a)</num>
<chapeau>A contractor required to maintain a construction account under this subchapter shall maintain an account record for the construction account that provides information relating to:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c162/scA/s162.007/1">
<num value="1">(1)</num>
<content>the source and amount of the funds in the account and the date the funds were deposited;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c162/scA/s162.007/2">
<num value="2">(2)</num>
<content>the date and amount of each disbursement from the account and the person to whom the funds were disbursed; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c162/scA/s162.007/3">
<num value="3">(3)</num>
<content>the current balance of the account.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t10/c162/scA/s162.007/b">
<num value="b">(b)</num>
<content>The contractor shall maintain an account record for each construction project that specifies the direct costs and indirect costs charged to the owner.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c162/scA/s162.007/c">
<num value="c">(c)</num>
<content>The contractor shall retain all invoices and other supporting documentation received relating to funds that were disbursed from the construction account.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c162/scA/s162.007/d">
<num value="d">(d)</num>
<content>The contractor shall ensure that all deposit and disbursement documentation includes the construction account number or information that provides a direct connection between the documentation and the account.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c162/scA/s162.007/e">
<num value="e">(e)</num>
<content>The contractor may not destroy information required to be maintained under this section before the first anniversary of the date the improvement that is the subject of the contract is completed.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1018, Sec. 4, eff. Sept. 1, 1997.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t10/c162/scB">
<num value="B">SUBCHAPTER B.</num>
<heading>MISAPPLICATION OF TRUST FUNDS</heading>
<section identifier="/us/tx/pr/t10/c162/scB/s162.031">
<num value="162.031">Sec. 162.031.</num>
<heading>MISAPPLICATION OF TRUST FUNDS</heading>
<subsection identifier="/us/tx/pr/t10/c162/scB/s162.031/a">
<num value="a">(a)</num>
<content>A trustee who, intentionally or knowingly or with intent to defraud, directly or indirectly retains, uses, disburses, or otherwise diverts trust funds without first fully paying all current or past due obligations incurred by the trustee to the beneficiaries of the trust funds, has misapplied the trust funds.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c162/scB/s162.031/b">
<num value="b">(b)</num>
<content>It is an affirmative defense to prosecution or other action brought under Subsection (a) that the trust funds not paid to the beneficiaries of the trust were used by the trustee to pay the trustee's actual expenses directly related to the construction or repair of the improvement or have been retained by the trustee, after notice to the beneficiary who has made a request for payment, as a result of the trustee's reasonable belief that the beneficiary is not entitled to such funds or have been retained as authorized or required by Chapter 53.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c162/scB/s162.031/c">
<num value="c">(c)</num>
<content>It is also an affirmative defense to prosecution or other action brought under Subsection (a) that the trustee paid the beneficiaries all trust funds which they are entitled to receive no later than 30 days following written notice to the trustee of the filing of a criminal complaint or other notice of a pending criminal investigation.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c162/scB/s162.031/d">
<num value="d">(d)</num>
<content>A trustee who commingles trust funds with other funds in the trustee's possession does not defeat a trust created by this chapter.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3721, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1987, 70th Leg., ch. 578, Sec. 4, eff. Aug. 31, 1987.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1277 (H.B. 1513), Sec. 5, eff. September 1, 2009.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c162/scB/s162.032">
<num value="162.032">Sec. 162.032.</num>
<heading>PENALTIES</heading>
<subsection identifier="/us/tx/pr/t10/c162/scB/s162.032/a">
<num value="a">(a)</num>
<content>A trustee who misapplies trust funds amounting to $500 or more in violation of this chapter commits a Class A misdemeanor.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c162/scB/s162.032/b">
<num value="b">(b)</num>
<content>A trustee who misapplies trust funds amounting to $500 or more in violation of this chapter, with intent to defraud, commits a felony of the third degree.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c162/scB/s162.032/c">
<num value="c">(c)</num>
<content>A trustee who fails to establish or maintain a construction account in violation of Section 162.006 or fails to establish or maintain an account record for the construction account in violation of Section 162.007 commits a Class A misdemeanor.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3722, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 1987, 70th Leg., ch. 578, Sec. 5, eff. Aug. 31, 1987; Acts 1997, 75th Leg., ch. 1018, Sec. 5, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c162/scB/s162.033">
<num value="162.033">Sec. 162.033.</num>
<heading>ELECTION OF OFFENSES</heading>
<content>If the misapplication of trust funds by a trustee constitutes another offense punishable under the laws of this state, the state may elect the offense for which it will prosecute the trustee.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3722, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
</subchapter>
</chapter>
<chapter identifier="/us/tx/pr/t10/c163">
<num value="163">CHAPTER 163.</num>
<heading>MANAGEMENT, INVESTMENT, AND EXPENDITURE OF INSTITUTIONAL FUNDS</heading>
<section identifier="/us/tx/pr/t10/c163/s163.001">
<num value="163.001">Sec. 163.001.</num>
<heading>SHORT TITLE</heading>
<content>This chapter may be cited as the Uniform Prudent Management of Institutional Funds Act.</content>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 213, Sec. 1, eff. May 26, 1989.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 834 (H.B. 860), Sec. 1, eff. September 1, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c163/s163.002">
<num value="163.002">Sec. 163.002.</num>
<heading>LEGISLATIVE FINDINGS AND PURPOSE</heading>
<subsection identifier="/us/tx/pr/t10/c163/s163.002/a">
<num value="a">(a)</num>
<chapeau>The legislature finds that:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c163/s163.002/1">
<num value="1">(1)</num>
<content>institutions organized and operated exclusively for a charitable purpose perform essential and needed services in the state;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c163/s163.002/2">
<num value="2">(2)</num>
<content>uncertainty exists regarding the prudence standards for the management and investment of charitable funds and for endowment spending by institutions described by Subdivision (1); and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c163/s163.002/3">
<num value="3">(3)</num>
<content>the institutions, their officers, directors, and trustees, and the citizens of this state will benefit from removal of the uncertainty regarding applicable prudence standards and by permitting endowment funds to be invested for the long-term goals of achieving growth and maintaining purchasing power without adversely affecting the availability of funds for current expenditure.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t10/c163/s163.002/b">
<num value="b">(b)</num>
<content>The purpose of this chapter is to provide guidance and authority through modern articulations of prudence standards for the management and investment of charitable funds and for endowment spending by institutions organized and operated exclusively for a charitable purpose in order to provide uniformity and remove uncertainty regarding those standards.</content>
</subsection>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 213, Sec. 1, eff. May 26, 1989. Amended by Acts 1993, 73rd Leg., ch. 240, Sec. 1, eff. May 22, 1993.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 834 (H.B. 860), Sec. 1, eff. September 1, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c163/s163.003">
<num value="163.003">Sec. 163.003.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c163/s163.003/1">
<num value="1">(1)</num>
<content>"Charitable purpose" means the promotion of a scientific, educational, philanthropic, or environmental purpose, social welfare, the arts and humanities, or another civic or public purpose described by Section 501(c)(3) of the Internal Revenue Code of 1986.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c163/s163.003/2">
<num value="2">(2)</num>
<content>"Endowment fund" means an institutional fund or part thereof that, under the terms of a gift instrument, is not wholly expendable by the institution on a current basis. The term does not include assets that an institution designates as an endowment fund for its own use.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c163/s163.003/3">
<num value="3">(3)</num>
<content>"Gift instrument" means a record or records, including an institutional solicitation, under which property is granted to, transferred to, or held by an institution as an institutional fund.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c163/s163.003/4">
<num value="4">(4)</num>
<chapeau>"Institution" means:</chapeau>
<subparagraph identifier="/us/tx/pr/t10/c163/s163.003/A">
<num value="A">(A)</num>
<content>a person, other than an individual, organized and operated exclusively for charitable purposes;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t10/c163/s163.003/B">
<num value="B">(B)</num>
<content>a government or governmental subdivision, agency, or instrumentality, to the extent that it holds funds exclusively for a charitable purpose; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t10/c163/s163.003/C">
<num value="C">(C)</num>
<content>a trust that had both charitable and noncharitable interests, after all noncharitable interests have terminated.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c163/s163.003/5">
<num value="5">(5)</num>
<chapeau>"Institutional fund" means a fund held by an institution exclusively for charitable purposes. The term does not include:</chapeau>
<subparagraph identifier="/us/tx/pr/t10/c163/s163.003/A">
<num value="A">(A)</num>
<content>program-related assets;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t10/c163/s163.003/B">
<num value="B">(B)</num>
<content>a fund held for an institution by a trustee that is not an institution; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t10/c163/s163.003/C">
<num value="C">(C)</num>
<content>a fund in which a beneficiary that is not an institution has an interest, other than an interest that could arise upon violation or failure of the purposes of the fund.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c163/s163.003/6">
<num value="6">(6)</num>
<content>"Person" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, public corporation, government or governmental subdivision, agency, or instrumentality, or any other legal or commercial entity.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c163/s163.003/7">
<num value="7">(7)</num>
<content>"Program-related asset" means an asset held by an institution primarily to accomplish a charitable purpose of the institution and not primarily for investment.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c163/s163.003/8">
<num value="8">(8)</num>
<content>"Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.</content>
</paragraph>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 213, Sec. 1, eff. May 26, 1989. Amended by Acts 1993, 73rd Leg., ch. 240, Sec. 2, eff. May 22, 1993.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 834 (H.B. 860), Sec. 1, eff. September 1, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c163/s163.004">
<num value="163.004">Sec. 163.004.</num>
<heading>STANDARD OF CONDUCT IN MANAGING AND INVESTING INSTITUTIONAL FUND</heading>
<subsection identifier="/us/tx/pr/t10/c163/s163.004/a">
<num value="a">(a)</num>
<content>Subject to the intent of a donor expressed in a gift instrument, an institution, in managing and investing an institutional fund, shall consider the charitable purposes of the institution and the purposes of the institutional fund.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c163/s163.004/b">
<num value="b">(b)</num>
<content>In addition to complying with the duty of loyalty imposed by law other than this chapter, each person responsible for managing and investing an institutional fund shall manage and invest the fund in good faith and with the care an ordinarily prudent person in a like position would exercise under similar circumstances.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c163/s163.004/c">
<num value="c">(c)</num>
<chapeau>In managing and investing an institutional fund, an institution:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c163/s163.004/1">
<num value="1">(1)</num>
<content>may incur only costs that are appropriate and reasonable in relation to the assets, the purposes of the institution, and the skills available to the institution; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c163/s163.004/2">
<num value="2">(2)</num>
<content>shall make a reasonable effort to verify facts relevant to the management and investment of the fund.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t10/c163/s163.004/d">
<num value="d">(d)</num>
<content>An institution may pool two or more institutional funds for purposes of management and investment.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c163/s163.004/e">
<num value="e">(e)</num>
<chapeau>Except as otherwise provided by a gift instrument, the following rules apply:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c163/s163.004/1">
<num value="1">(1)</num>
<chapeau>In managing and investing an institutional fund, the following factors, if relevant, must be considered:</chapeau>
<subparagraph identifier="/us/tx/pr/t10/c163/s163.004/A">
<num value="A">(A)</num>
<content>general economic conditions;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t10/c163/s163.004/B">
<num value="B">(B)</num>
<content>the possible effect of inflation or deflation;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t10/c163/s163.004/C">
<num value="C">(C)</num>
<content>the expected tax consequences, if any, of investment decisions or strategies;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t10/c163/s163.004/D">
<num value="D">(D)</num>
<content>the role that each investment or course of action plays within the overall investment portfolio of the fund;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t10/c163/s163.004/E">
<num value="E">(E)</num>
<content>the expected total return from income and the appreciation of investments;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t10/c163/s163.004/F">
<num value="F">(F)</num>
<content>other resources of the institution;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t10/c163/s163.004/G">
<num value="G">(G)</num>
<content>the needs of the institution and the fund to make distributions and to preserve capital; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t10/c163/s163.004/H">
<num value="H">(H)</num>
<content>an asset's special relationship or special value, if any, to the charitable purposes of the institution.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c163/s163.004/2">
<num value="2">(2)</num>
<content>Management and investment decisions about an individual asset must be made not in isolation but rather in the context of the institutional fund's portfolio of investments as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the fund and to the institution.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c163/s163.004/3">
<num value="3">(3)</num>
<content>Except as otherwise provided by law other than this chapter, an institution may invest in any kind of property or type of investment consistent with this section.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c163/s163.004/4">
<num value="4">(4)</num>
<content>An institution shall diversify the investments of an institutional fund unless the institution reasonably determines that, because of special circumstances, the purposes of the fund are better served without diversification.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c163/s163.004/5">
<num value="5">(5)</num>
<content>Within a reasonable time after receiving property, an institution shall make and carry out decisions concerning the retention or disposition of the property or to rebalance a portfolio, in order to bring the institutional fund into compliance with the purposes, terms, and distribution requirements of the institution as necessary to meet other circumstances of the institution and the requirements of this chapter.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c163/s163.004/6">
<num value="6">(6)</num>
<content>A person that has special skills or expertise, or is selected in reliance upon the person's representation that the person has special skills or expertise, has a duty to use those skills or that expertise in managing and investing institutional funds.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 213, Sec. 1, eff. May 26, 1989. Amended by Acts 1993, 73rd Leg., ch. 240, Sec. 3, eff. May 22, 1993; Acts 2001, 77th Leg., ch. 1158, Sec. 88, 89, eff. June 15, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 834 (H.B. 860), Sec. 1, eff. September 1, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c163/s163.005">
<num value="163.005">Sec. 163.005.</num>
<heading>APPROPRIATION FOR EXPENDITURE OR ACCUMULATION OF ENDOWMENT FUND; RULES OF CONSTRUCTION</heading>
<subsection identifier="/us/tx/pr/t10/c163/s163.005/a">
<num value="a">(a)</num>
<chapeau>Subject to the intent of a donor expressed in the gift instrument and to Subsections (d) and (e), an institution may appropriate for expenditure or accumulate so much of an endowment fund as the institution determines is prudent for the uses, benefits, purposes, and duration for which the endowment fund is established. Unless stated otherwise in the gift instrument, the assets in an endowment fund are donor-restricted assets until appropriated for expenditure by the institution. In making a determination to appropriate or accumulate, the institution shall act in good faith, with the care that an ordinarily prudent person in a like position would exercise under similar circumstances, and shall consider, if relevant, the following factors:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c163/s163.005/1">
<num value="1">(1)</num>
<content>the duration and preservation of the endowment fund;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c163/s163.005/2">
<num value="2">(2)</num>
<content>the purposes of the institution and the endowment fund;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c163/s163.005/3">
<num value="3">(3)</num>
<content>general economic conditions;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c163/s163.005/4">
<num value="4">(4)</num>
<content>the possible effect of inflation or deflation;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c163/s163.005/5">
<num value="5">(5)</num>
<content>the expected total return from income and the appreciation of investments;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c163/s163.005/6">
<num value="6">(6)</num>
<content>other resources of the institution; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c163/s163.005/7">
<num value="7">(7)</num>
<content>the investment policy of the institution.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t10/c163/s163.005/b">
<num value="b">(b)</num>
<content>To limit the authority to appropriate for expenditure or accumulate under Subsection (a), a gift instrument must specifically state the limitation.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c163/s163.005/c">
<num value="c">(c)</num>
<chapeau>Terms in a gift instrument designating a gift as an endowment, or a direction or authorization in the gift instrument to use only "income," "interest," "dividends," or "rents, issues, or profits," or "to preserve the principal intact," or words of similar import:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c163/s163.005/1">
<num value="1">(1)</num>
<content>create an endowment fund of permanent duration unless other language in the gift instrument limits the duration or purpose of the fund; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c163/s163.005/2">
<num value="2">(2)</num>
<content>do not otherwise limit the authority to appropriate for expenditure or accumulate under Subsection (a).</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t10/c163/s163.005/d">
<num value="d">(d)</num>
<chapeau>Except as provided in Subsection (f), appropriation for expenditure in any year of an amount greater than seven percent of the fair market value of an endowment fund with an aggregate value of $1 million or more, calculated on the basis of market values determined at least quarterly and averaged over a period of not less than three years immediately preceding the year in which the appropriation for expenditure was made, creates a rebuttable presumption of imprudence. For an endowment fund in existence for fewer than three years, the fair market value of the endowment fund must be calculated for the period the endowment fund has been in existence. This subsection does not:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c163/s163.005/1">
<num value="1">(1)</num>
<content>apply to an appropriation for expenditure permitted under law other than this chapter or by the gift instrument; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c163/s163.005/2">
<num value="2">(2)</num>
<content>create a presumption of prudence for an appropriation for expenditure of an amount less than or equal to seven percent of the fair market value of the endowment fund.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t10/c163/s163.005/e">
<num value="e">(e)</num>
<chapeau>For an institution with an endowment fund with an aggregate value of less than $1 million, a rebuttable presumption of imprudence is created if more than five percent of the fair market value of the endowment fund is appropriated for expenditure in any year, calculated on the basis of market values determined at least quarterly and averaged over a period of not less than three years immediately preceding the year in which the appropriation for expenditure was made. For an endowment fund in existence for fewer than three years, the fair market value of the endowment fund must be calculated for the period the endowment fund has been in existence. This subsection does not:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c163/s163.005/1">
<num value="1">(1)</num>
<content>apply to an appropriation for expenditure permitted under law other than this chapter or by the gift instrument; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c163/s163.005/2">
<num value="2">(2)</num>
<content>create a presumption of prudence for an appropriation for expenditure of an amount less than or equal to five percent of the fair market value of the endowment fund.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t10/c163/s163.005/f">
<num value="f">(f)</num>
<chapeau>This subsection applies only to a university system, as defined by Section 61.003(10), Education Code. The appropriation for expenditure in any year of any amount greater than nine percent of the fair market value of an endowment fund with an aggregate value of $450 million or more, calculated on the basis of market values determined at least quarterly and averaged over a period of not less than three years immediately preceding the year in which the appropriation for expenditure was made, creates a rebuttable presumption of imprudence. For an endowment fund in existence for fewer than three years, the fair market value of the endowment fund must be calculated for the period the endowment fund has been in existence. This subsection does not:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c163/s163.005/1">
<num value="1">(1)</num>
<content>apply to an appropriation for expenditure permitted under law other than this chapter or by the gift instrument; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c163/s163.005/2">
<num value="2">(2)</num>
<content>create a presumption of prudence for an appropriation for expenditure of an amount less than or equal to nine percent of the fair market value of the endowment fund.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t10/c163/s163.005/g">
<num value="g">(g)</num>
<content>If an institution pools the assets of individual endowment funds for collective investment, this section applies to the pooled fund and does not apply to individual endowment funds, including individual endowment funds for which the nature of the underlying asset or donor restrictions preclude inclusion in a pool but which are managed by the institution in accordance with a collective investment policy.</content>
</subsection>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 213, Sec. 1, eff. May 26, 1989.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 834 (H.B. 860), Sec. 1, eff. September 1, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c163/s163.006">
<num value="163.006">Sec. 163.006.</num>
<heading>DELEGATION OF MANAGEMENT AND INVESTMENT FUNCTIONS</heading>
<subsection identifier="/us/tx/pr/t10/c163/s163.006/a">
<num value="a">(a)</num>
<chapeau>Subject to any specific limitation set forth in a gift instrument or in law other than this chapter, an institution may delegate to an external agent the management and investment of an institutional fund to the extent that an institution could prudently delegate under the circumstances. An institution shall act in good faith, with the care that an ordinarily prudent person in a like position would exercise under similar circumstances, in:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c163/s163.006/1">
<num value="1">(1)</num>
<content>selecting an agent;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c163/s163.006/2">
<num value="2">(2)</num>
<content>establishing the scope and terms of the delegation, consistent with the purposes of the institution and the institutional fund; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c163/s163.006/3">
<num value="3">(3)</num>
<content>periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the scope and terms of the delegation.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t10/c163/s163.006/b">
<num value="b">(b)</num>
<content>In performing a delegated function, an agent owes a duty to the institution to exercise reasonable care to comply with the scope and terms of the delegation.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c163/s163.006/c">
<num value="c">(c)</num>
<content>An institution that complies with Subsection (a) is not liable for the decisions or actions of an agent to which the function was delegated.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c163/s163.006/d">
<num value="d">(d)</num>
<content>By accepting delegation of a management or investment function from an institution that is subject to the laws of this state, an agent submits to the jurisdiction of the courts of this state in all proceedings arising from or related to the delegation or the performance of the delegated function.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c163/s163.006/e">
<num value="e">(e)</num>
<content>An institution may delegate management and investment functions to its committees, officers, or employees as authorized by law of this state other than this chapter.</content>
</subsection>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 213, Sec. 1, eff. May 26, 1989.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 834 (H.B. 860), Sec. 1, eff. September 1, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c163/s163.007">
<num value="163.007">Sec. 163.007.</num>
<heading>RELEASE OR MODIFICATION OF RESTRICTIONS ON MANAGEMENT, INVESTMENT, OR PURPOSE</heading>
<subsection identifier="/us/tx/pr/t10/c163/s163.007/a">
<num value="a">(a)</num>
<content>If the donor consents in a record, an institution may release or modify, in whole or in part, a restriction contained in a gift instrument on the management, investment, or purpose of an institutional fund. A release or modification may not allow a fund to be used for a purpose other than a charitable purpose of the institution.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c163/s163.007/b">
<num value="b">(b)</num>
<content>The court, upon application of an institution, may modify a restriction contained in a gift instrument regarding the management or investment of an institutional fund if the restriction has become impracticable or wasteful, if it impairs the management or investment of the fund, or if, because of circumstances not anticipated by the donor, a modification of a restriction will further the purposes of the fund. Chapter 123 applies to a proceeding under this subsection. To the extent practicable, any modification must be made in accordance with the donor's probable intention.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c163/s163.007/c">
<num value="c">(c)</num>
<content>If a particular charitable purpose or a restriction contained in a gift instrument on the use of an institutional fund becomes unlawful, impracticable, impossible to achieve, or wasteful, the court, upon application of an institution, may modify the purpose of the fund or the restriction on the use of the fund in a manner consistent with the charitable purposes expressed in the gift instrument. Chapter 123 applies to a proceeding under this subsection.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c163/s163.007/d">
<num value="d">(d)</num>
<chapeau>If an institution determines that a restriction contained in a gift instrument on the management, investment, or purpose of an institutional fund is unlawful, impracticable, impossible to achieve, or wasteful, the institution, 60 days after receipt of notice by the attorney general, may release or modify the restriction, in whole or part, if:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c163/s163.007/1">
<num value="1">(1)</num>
<content>the institutional fund subject to the restriction has a total value of less than $25,000;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c163/s163.007/2">
<num value="2">(2)</num>
<content>more than 20 years have elapsed since the fund was established; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c163/s163.007/3">
<num value="3">(3)</num>
<content>the institution uses the property in a manner consistent with the charitable purposes expressed in the gift instrument.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t10/c163/s163.007/e">
<num value="e">(e)</num>
<content>The notification to the attorney general under Subsection (d) must be accompanied by a copy of the gift instrument and a statement of facts sufficient to evidence compliance with Subsections (d)(1), (2), and (3).</content>
</subsection>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 213, Sec. 1, eff. May 26, 1989.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 834 (H.B. 860), Sec. 1, eff. September 1, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c163/s163.008">
<num value="163.008">Sec. 163.008.</num>
<heading>REVIEWING COMPLIANCE</heading>
<content>Compliance with this chapter is determined in light of the facts and circumstances existing at the time a decision is made or action is taken, and not by hindsight.</content>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 213, Sec. 1, eff. May 26, 1989.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 834 (H.B. 860), Sec. 1, eff. September 1, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c163/s163.009">
<num value="163.009">Sec. 163.009.</num>
<heading>RELATION TO ELECTRONIC SIGNATURES IN GLOBAL AND NATIONAL COMMERCE ACT</heading>
<content>This chapter modifies, limits, and supersedes the provisions of the Electronic Signatures in Global and National Commerce Act (15 U.S.C. Section 7001 et seq.) but does not modify, limit, or supersede Section 101 of that Act (15 U.S.C. Section 7001(a)) or authorize electronic delivery of any of the notices described in Section 103 of that Act (15 U.S.C. Section 7003(b)).</content>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 213, Sec. 1, eff. May 26, 1989.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 834 (H.B. 860), Sec. 1, eff. September 1, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c163/s163.010">
<num value="163.010">Sec. 163.010.</num>
<heading>UNIFORMITY OF APPLICATION AND CONSTRUCTION</heading>
<content>In applying and construing this chapter, consideration must be given to the need to promote uniformity of the law with respect to the subject matter of this chapter among states that enact a law substantially similar to this chapter.</content>
<sourceCredit>Amended by:
Acts 2007, 80th Leg., R.S., Ch. 834 (H.B. 860), Sec. 1, eff. September 1, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c163/s163.011">
<num value="163.011">Sec. 163.011.</num>
<heading>APPLICABILITY OF OTHER PARTS OF CODE</heading>
<content>Chapters 116 and 117 do not apply to any institutional fund subject to this chapter.</content>
<sourceCredit>Amended by:
Acts 2007, 80th Leg., R.S., Ch. 834 (H.B. 860), Sec. 1, eff. September 1, 2007.
Acts 2017, 85th Leg., R.S., Ch. 62 (S.B. 617), Sec. 14, eff. September 1, 2017.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t10/c181">
<num value="181">CHAPTER 181.</num>
<heading>POWERS OF APPOINTMENT</heading>
<subchapter identifier="/us/tx/pr/t10/c181/scA">
<num value="A">SUBCHAPTER A.</num>
<heading>GENERAL PROVISIONS</heading>
<section identifier="/us/tx/pr/t10/c181/scA/s181.001">
<num value="181.001">Sec. 181.001.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c181/scA/s181.001/1">
<num value="1">(1)</num>
<content>"Donee" means a person, whether or not a resident of this state, who, either alone or in conjunction with others, may exercise a power.</content>
<continuation>(1-a) "Object of the power of appointment" means a person to whom the donee is given the power to appoint.</continuation>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c181/scA/s181.001/2">
<num value="2">(2)</num>
<content>"Power" means the authority to appoint or designate the recipient of property, to invade or consume property, to alter, amend, or revoke an instrument under which an estate or trust is created or held, and to terminate a right or interest under an estate or trust, and any authority remaining after a partial release of a power.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c181/scA/s181.001/3">
<num value="3">(3)</num>
<content>"Property" means all property and interests in property, real or personal, including parts of property, partial interests, and all or any part of the income from property.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c181/scA/s181.001/4">
<num value="4">(4)</num>
<content>"Release" means a renunciation, relinquishment, surrender, refusal to accept, extinguishment, and any other form of release, including a covenant not to exercise all or part of a power.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3723, ch. 576, Sec. 1, eff. Jan. 1, 1984. Amended by Acts 2003, 78th Leg., ch. 551, Sec. 1, eff. Sept. 1, 2003.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c181/scA/s181.002">
<num value="181.002">Sec. 181.002.</num>
<heading>APPLICATION</heading>
<subsection identifier="/us/tx/pr/t10/c181/scA/s181.002/a">
<num value="a">(a)</num>
<chapeau>Except as provided by Subsection (b), this chapter applies:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c181/scA/s181.002/1">
<num value="1">(1)</num>
<content>to a power or a release of a power, regardless of the date the power is created;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c181/scA/s181.002/2">
<num value="2">(2)</num>
<content>to a vested, contingent, or conditional power; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c181/scA/s181.002/3">
<num value="3">(3)</num>
<content>to a power classified as a power in gross, a power appurtenant, a power appendant, a collateral power, a general, limited, or special power, an exclusive or nonexclusive power, or any other power.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t10/c181/scA/s181.002/b">
<num value="b">(b)</num>
<content>This chapter applies regardless of the time or manner a power is created or reserved or the release is made and regardless of the time, manner, or in whose favor a power may be exercised.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c181/scA/s181.002/c">
<num value="c">(c)</num>
<content>This chapter does not apply to a power in trust that is imperative.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3723, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c181/scA/s181.003">
<num value="181.003">Sec. 181.003.</num>
<heading>CHAPTER NOT EXCLUSIVE</heading>
<content>The provisions of this chapter concerning the release of a power are not exclusive.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3724, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c181/scA/s181.004">
<num value="181.004">Sec. 181.004.</num>
<heading>CONSTRUCTION</heading>
<content>This chapter is intended to be declarative of the common law of this state, and it shall be liberally construed to make all powers, except imperative powers in trust, releasable unless the instrument creating the trust expressly provides otherwise.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3724, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t10/c181/scB">
<num value="B">SUBCHAPTER B.</num>
<heading>RELEASE OF POWERS OF APPOINTMENT</heading>
<section identifier="/us/tx/pr/t10/c181/scB/s181.051">
<num value="181.051">Sec. 181.051.</num>
<heading>AUTHORITY OF DONEE TO RELEASE POWER</heading>
<chapeau>Unless the instrument creating the power specifically provides to the contrary, a donee may at any time:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c181/scB/s181.051/1">
<num value="1">(1)</num>
<content>completely release the power;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c181/scB/s181.051/2">
<num value="2">(2)</num>
<content>release the power as to any property subject to the power;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c181/scB/s181.051/3">
<num value="3">(3)</num>
<content>release the power as to a person in whose favor a power may be exercised; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c181/scB/s181.051/4">
<num value="4">(4)</num>
<content>limit in any respect the extent to which the power may be exercised.</content>
</paragraph>
<sourceCredit>Acts 1983, 68th Leg., p. 3724, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c181/scB/s181.052">
<num value="181.052">Sec. 181.052.</num>
<heading>REQUISITES OF RELEASE</heading>
<subsection identifier="/us/tx/pr/t10/c181/scB/s181.052/a">
<num value="a">(a)</num>
<chapeau>A partial or complete release of a power, with or without consideration, is valid if the donee executes and acknowledges, in the manner required by law for the execution and recordation of deeds, an instrument evidencing an intent to make the release, and the instrument is delivered:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c181/scB/s181.052/1">
<num value="1">(1)</num>
<content>to the person or in the manner specified in the instrument creating the power;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c181/scB/s181.052/2">
<num value="2">(2)</num>
<content>to an adult, other than the donee releasing the power, who may take any of the property subject to the power if the power is not exercised or in whose favor it may be exercised after the partial release;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c181/scB/s181.052/3">
<num value="3">(3)</num>
<content>to a trustee or cotrustee of the property subject to the power; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c181/scB/s181.052/4">
<num value="4">(4)</num>
<content>to an appropriate county clerk for recording.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t10/c181/scB/s181.052/b">
<num value="b">(b)</num>
<chapeau>An instrument releasing a power may be recorded in a county in this state in which:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c181/scB/s181.052/1">
<num value="1">(1)</num>
<content>property subject to the power is located;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c181/scB/s181.052/2">
<num value="2">(2)</num>
<content>a donee in control of the property resides;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c181/scB/s181.052/3">
<num value="3">(3)</num>
<content>a trustee in control of the property resides;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c181/scB/s181.052/4">
<num value="4">(4)</num>
<content>a corporate trustee in control of the property has its principal office; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c181/scB/s181.052/5">
<num value="5">(5)</num>
<content>the instrument creating the power is probated or recorded.</content>
</paragraph>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3724, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c181/scB/s181.053">
<num value="181.053">Sec. 181.053.</num>
<heading>RELEASE BY GUARDIAN</heading>
<content>If a person under a disability holds a power, the guardian of the person's estate may release the power in the manner provided in this chapter on the order of the court in this state in which the guardian was appointed or in which the guardianship proceeding is pending.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3725, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c181/scB/s181.054">
<num value="181.054">Sec. 181.054.</num>
<heading>EFFECT OF RELEASE ON MULTIPLE DONEES</heading>
<content>Unless the instrument creating a power provides otherwise, the complete or partial release by one or more donees of a power that may be exercised by two or more donees, either as an individual or a fiduciary, together or successively, does not prevent or limit the exercise or participation in the exercise of the power by the other donee or donees.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3725, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c181/scB/s181.055">
<num value="181.055">Sec. 181.055.</num>
<heading>NOTICE OF RELEASE</heading>
<subsection identifier="/us/tx/pr/t10/c181/scB/s181.055/a">
<num value="a">(a)</num>
<content>A fiduciary or other person in possession or control of property subject to a power, other than the donee, does not have notice of a release of the power until the original release or a copy is delivered to the fiduciary or other person.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c181/scB/s181.055/b">
<num value="b">(b)</num>
<content>A purchaser, lessee, or mortgagee of real property subject to a power who has paid a valuable consideration and who is without actual notice does not have notice of a release of the power until the instrument releasing the power is filed for record with the county clerk of the county in which the real property is located.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3725, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c181/scB/s181.056">
<num value="181.056">Sec. 181.056.</num>
<heading>RECORDING</heading>
<subsection identifier="/us/tx/pr/t10/c181/scB/s181.056/a">
<num value="a">(a)</num>
<content>A county clerk shall record a release of a power in the county deed records, and the clerk shall index the release, with the name of the donee entered in the grantor index.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c181/scB/s181.056/b">
<num value="b">(b)</num>
<content>The county clerk shall charge the same fee for recording the release of a power as the clerk is authorized to charge for recording a deed.</content>
</subsection>
<sourceCredit>Acts 1983, 68th Leg., p. 3726, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c181/scB/s181.057">
<num value="181.057">Sec. 181.057.</num>
<heading>EFFECT OF FAILURE TO DELIVER OR FILE</heading>
<content>Failure to deliver or file an instrument releasing a power under Sections 181.052 and 181.055 does not affect the validity of the release as to the donee, the person in whose favor the power may be exercised, or any other person except those expressly protected by Sections 181.052 and 181.055.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3726, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c181/scB/s181.058">
<num value="181.058">Sec. 181.058.</num>
<heading>RESTRAINTS ON ALIENATION OR ANTICIPATION</heading>
<content>The release of a power that otherwise may be released is not prevented merely by provisions of the instrument creating the power that restrain alienation or anticipation.</content>
<sourceCredit>Acts 1983, 68th Leg., p. 3726, ch. 576, Sec. 1, eff. Jan. 1, 1984.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t10/c181/scC">
<num value="C">SUBCHAPTER C.</num>
<heading>EXERCISE OF POWERS OF APPOINTMENT</heading>
<section identifier="/us/tx/pr/t10/c181/scC/s181.081">
<num value="181.081">Sec. 181.081.</num>
<heading>EXTENT OF POWER</heading>
<content>Unless an instrument creating a power expressly provides to the contrary, a donee may exercise a power in any manner consistent with this subchapter.</content>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 551, Sec. 2, eff. Sept. 1, 2003.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c181/scC/s181.082">
<num value="181.082">Sec. 181.082.</num>
<heading>GENERAL EXERCISE</heading>
<chapeau>In exercising a power, a donee may make an appointment:</chapeau>
<paragraph identifier="/us/tx/pr/t10/c181/scC/s181.082/1">
<num value="1">(1)</num>
<content>of present, future, or present and future interests;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c181/scC/s181.082/2">
<num value="2">(2)</num>
<content>with conditions and limitations;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c181/scC/s181.082/3">
<num value="3">(3)</num>
<content>with restraints on alienation;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c181/scC/s181.082/4">
<num value="4">(4)</num>
<content>of interests to a trustee for the benefit of one or more objects of the power; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t10/c181/scC/s181.082/5">
<num value="5">(5)</num>
<content>that creates any right existing under common law.</content>
</paragraph>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 551, Sec. 2, eff. Sept. 1, 2003.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t10/c181/scC/s181.083">
<num value="181.083">Sec. 181.083.</num>
<heading>CREATING ADDITIONAL POWERS</heading>
<subsection identifier="/us/tx/pr/t10/c181/scC/s181.083/a">
<num value="a">(a)</num>
<content>In exercising a power, a donee may make appointments that create in the objects of the power additional powers of appointment. The additional powers of appointment must be exercisable in favor of objects of the power who would have been permissible objects under the original donee's power.</content>
</subsection>
<subsection identifier="/us/tx/pr/t10/c181/scC/s181.083/b">
<num value="b">(b)</num>
<content>In exercising a power, a donee who may appoint outright to an object of the power may make appointments that create in the object of the power powers exercisable in favor of persons that the original donee may direct, even though the objects of the secondary power of appointment may not have been permissible objects of the original donee's power.</content>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 551, Sec. 2, eff. Sept. 1, 2003.</sourceCredit>
</section>
</subchapter>
</chapter>
<num value="11">TITLE 11.</num>
<heading>RESTRICTIVE COVENANTS</heading>
<chapter identifier="/us/tx/pr/t11/c201">
<num value="201">CHAPTER 201.</num>
<heading>RESTRICTIVE COVENANTS APPLICABLE TO CERTAIN SUBDIVISIONS</heading>
<section identifier="/us/tx/pr/t11/c201/s201.001">
<num value="201.001">Sec. 201.001.</num>
<heading>APPLICATION</heading>
<subsection identifier="/us/tx/pr/t11/c201/s201.001/a">
<num value="a">(a)</num>
<chapeau>This chapter applies to a residential real estate subdivision that is located in whole or in part:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c201/s201.001/1">
<num value="1">(1)</num>
<content>within a city that has a population of more than 100,000, or within the extraterritorial jurisdiction of such a city;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.001/2">
<num value="2">(2)</num>
<chapeau>in the unincorporated area of:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c201/s201.001/A">
<num value="A">(A)</num>
<content>a county having a population of 3.3 million or more; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c201/s201.001/B">
<num value="B">(B)</num>
<content>a county having a population of 50,000 or more that is adjacent to a county having a population of 3.3 million or more; or</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.001/3">
<num value="3">(3)</num>
<content>in the incorporated area of a county having a population of 50,000 or more that is adjacent to a county having a population of 3.3 million or more.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c201/s201.001/b">
<num value="b">(b)</num>
<chapeau>The provisions of this chapter relating to extension of the term of, renewal of, or creation of restrictions do not apply to a subdivision if, by the express terms of the instrument creating existing restrictions, some or all of the restrictions affecting the real property within the subdivision provide:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c201/s201.001/1">
<num value="1">(1)</num>
<content>for automatic extensions of the term of the restrictions for an indefinite number of successive specified periods of at least 10 years subject to a right of waiver or termination, in whole or in part, by a specified percentage of less than 50 percent plus one of the owners of real property interests in the subdivision, as set forth in the instrument creating the restrictions; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.001/2">
<num value="2">(2)</num>
<content>for an indefinite number of successive extensions of at least 10 years of the term of the restrictions by written and filed agreement of a specified percentage of less than 50 percent plus one of the owners of real property interests in the subdivision, as authorized by the instrument creating the restrictions.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c201/s201.001/c">
<num value="c">(c)</num>
<content>The provisions of this chapter relating to addition to or modification of existing restrictions do not apply to a subdivision if, by the express terms of the instrument creating the restrictions, the restrictions affecting the real property within the subdivision provide for addition to or modification of the restrictions by written and filed agreement of a specified percentage of less than 75 percent of the owners of real property interests in the subdivision, as set forth in the instrument creating the restrictions. A subdivision is excluded under this subsection regardless of whether a provision in the restrictions requires the consent of the developer of the subdivision or an architectural control committee for an addition to or modification of the restrictions.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c201/s201.001/d">
<num value="d">(d)</num>
<content>A residential real estate subdivision that is or was subject to this chapter at any time remains subject to this chapter regardless of a change in circumstances that removes the subdivision from the applicability requirements of Subsection (a).</content>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 309, Sec. 1, eff. Sept. 1, 1985. Amended by Acts 1987, 70th Leg., ch. 712, Sec. 2, eff. June 18, 1987; Acts 1989, 71st Leg., ch. 556, Sec. 1, eff. June 14, 1989; Acts 1991, 72nd Leg., ch. 822, Sec. 1, eff. Sept. 1, 1991; Acts 1997, 75th Leg., ch. 451, Sec. 1, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 451, Sec. 2, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 1127, Sec. 1, eff. Sept. 1, 1999.
Amended by:
Acts 2005, 79th Leg., Ch. 1004 (H.B. 638), Sec. 1, eff. September 1, 2005.
Acts 2007, 80th Leg., R.S., Ch. 1367 (H.B. 3674), Sec. 3, eff. September 1, 2007.
Acts 2011, 82nd Leg., R.S., Ch. 1163 (H.B. 2702), Sec. 109, eff. September 1, 2011.
Acts 2023, 88th Leg., R.S., Ch. 644 (H.B. 4559), Sec. 210, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c201/s201.002">
<num value="201.002">Sec. 201.002.</num>
<heading>FINDINGS AND PURPOSE</heading>
<subsection identifier="/us/tx/pr/t11/c201/s201.002/a">
<num value="a">(a)</num>
<chapeau>The legislature finds that:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c201/s201.002/1">
<num value="1">(1)</num>
<content>the pending expiration of property restrictions applicable to real estate subdivisions in municipalities and in the extraterritorial jurisdiction area of municipalities where there is no zoning creates uncertainty in living conditions and discourages investments in affected subdivisions;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.002/2">
<num value="2">(2)</num>
<content>owners of land in affected subdivisions are reluctant or unable to provide proper maintenance, upkeep, and repairs of structures because of the pending expiration of the restrictions;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.002/3">
<num value="3">(3)</num>
<content>financial institutions cannot or will not lend money for investments, maintenance, upkeep, or repairs in affected subdivisions;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.002/4">
<num value="4">(4)</num>
<content>these conditions cause dilapidation of housing and other structures and cause unhealthful and unsanitary conditions in affected subdivisions, contrary to the health, safety, and welfare of the citizens; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.002/5">
<num value="5">(5)</num>
<content>the existence of racial covenants in subdivisions, regardless of their unenforceability, is offensive, repugnant, and harmful to members of racial or ethnic minority groups, and public policy requires that these covenants be deleted.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c201/s201.002/b">
<num value="b">(b)</num>
<content>The purpose of this chapter is to provide a procedure for extending the term of, creation of, additions to, or modification of restrictions and to provide for the removal of any restriction or other provision relating to race, religion, or national origin that is void and unenforceable under either the United States Constitution or Section 5.026.</content>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 309, Sec. 1, eff. Sept. 1, 1985.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c201/s201.003">
<num value="201.003">Sec. 201.003.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c201/s201.003/1">
<num value="1">(1)</num>
<content>"Restrictions" means one or more restrictive covenants contained or incorporated by reference in a properly recorded map, plat, replat, declaration, or other instrument filed in the county real property records, map records, or deed records.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.003/2">
<num value="2">(2)</num>
<chapeau>"Residential real estate subdivision" or "subdivision" means:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c201/s201.003/A">
<num value="A">(A)</num>
<content>all land encompassed within one or more maps or plats of land that is divided into two or more parts if the maps or plats cover land within a city, town, or village, or within the extraterritorial jurisdiction of a city, town, or village and are recorded in the deed, map, or real property records of a county, and the land encompassed within the maps or plats is or was burdened by restrictions limiting all or at least a majority of the land area covered by the map or plat, excluding streets and public areas, to residential use only; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c201/s201.003/B">
<num value="B">(B)</num>
<content>all land located within a city, town, or village, or within the extraterritorial jurisdiction of a city, town, or village that has been divided into two or more parts and that is or was burdened by restrictions limiting at least a majority of the land area burdened by restrictions, excluding streets and public areas, to residential use only, if the instrument or instruments creating the restrictions are recorded in the deed or real property records of a county.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.003/3">
<num value="3">(3)</num>
<content>"Owner" means an individual, fiduciary, partnership, joint venture, corporation, association, or other entity that owns record title to real property in a subdivision, or the personal representative of an individual who owns record title to subdivision property.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.003/4">
<num value="4">(4)</num>
<content>"Petition" means one or more instruments, however designated or entitled, by which one or more of the purposes authorized by this chapter are sought to be accomplished.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.003/5">
<num value="5">(5)</num>
<content>"Real property records" means the applicable records of a county clerk in which conveyances of real property are recorded.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.003/6">
<num value="6">(6)</num>
<content>"Lienholder" means an individual, corporation, financial institution, or other entity that holds a vendor's or deed of trust lien secured by land within the subdivision.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.003/7">
<num value="7">(7)</num>
<content>"Petition committee" or "committee" means a group of three or more owners who file with the county clerk a notice as required by Section 201.005(a) and who prepare and circulate a petition as allowed under this chapter.</content>
</paragraph>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 309, Sec. 1, eff. Sept. 1, 1985. Amended by Acts 1991, 72nd Leg., ch. 822, Sec. 2, eff. Sept. 1, 1991.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c201/s201.004">
<num value="201.004">Sec. 201.004.</num>
<heading>EXTENSION, RENEWAL, CREATION, MODIFICATION OF, OR ADDITION TO, RESTRICTIONS</heading>
<subsection identifier="/us/tx/pr/t11/c201/s201.004/a">
<num value="a">(a)</num>
<chapeau>A petition may be filed under this chapter to:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c201/s201.004/1">
<num value="1">(1)</num>
<content>extend or renew an unexpired restriction;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.004/2">
<num value="2">(2)</num>
<content>create a restriction;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.004/3">
<num value="3">(3)</num>
<content>add to or modify an existing restriction; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.004/4">
<num value="4">(4)</num>
<content>modify an existing provision in an instrument creating a restriction that provides for extension of those restrictions.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c201/s201.004/b">
<num value="b">(b)</num>
<content>A petition is not effective to extend, renew, create, add to, or modify a restriction unless the petition is filed with the county clerk's office in the county where the subdivision is located before the second anniversary of the date the committee files with the county clerk the notice required by Section 201.005(a).</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c201/s201.004/c">
<num value="c">(c)</num>
<content>If a petition meeting the requirements of this chapter is filed with the county clerk within the required period, the provisions of the petition extending, renewing, creating, adding to, or modifying a restriction apply to and burden all of the property in the subdivision except property excluded under Section 201.009. If a petition contains provisions extending or renewing the term of a restriction, the petition may provide for an initial extension or renewal period of not more than 10 years and additional automatic extensions of the term for not more than 10 years each. The extension, renewal, creation, or modification of, or addition to, a restriction takes effect on the later of the dates the petition is filed with the county clerk or a date specified in the petition.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c201/s201.004/d">
<num value="d">(d)</num>
<content>If existing originally applicable restrictions provide a procedure for extension, that procedure may be used for successive extensions of the originally applicable restrictions unless the original restriction instrument expressly prohibits the procedure from being used for successive extensions.</content>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 309, Sec. 1, eff. Sept. 1, 1985. Amended by Acts 1991, 72nd Leg., ch. 822, Sec. 3, eff. Sept. 1, 1991.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 1367 (H.B. 3674), Sec. 4, eff. September 1, 2007.
Acts 2009, 81st Leg., R.S., Ch. 821 (S.B. 1672), Sec. 1, eff. June 19, 2009.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c201/s201.005">
<num value="201.005">Sec. 201.005.</num>
<heading>PETITION COMMITTEE</heading>
<subsection identifier="/us/tx/pr/t11/c201/s201.005/a">
<num value="a">(a)</num>
<content>At least three owners may form a petition committee. The committee shall file written notice of its formation with the county clerk of each county in which the subdivision is located.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c201/s201.005/b">
<num value="b">(b)</num>
<chapeau>A notice filed under this chapter must contain:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c201/s201.005/1">
<num value="1">(1)</num>
<content>a statement that a petition committee has been formed for the extension of the term of, creation of, addition to, or modification of one or more restrictions;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.005/2">
<num value="2">(2)</num>
<content>the name and residential address of each member of the committee;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.005/3">
<num value="3">(3)</num>
<content>the name of the subdivision to which the restrictions apply and a reference to the real property records or map or plat records where the instrument or instruments that contain the restrictions sought to be extended, added to, or modified are recorded or, if the creation of a restriction is proposed, a reference to the place where the map or other document, if any, is recorded;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.005/4">
<num value="4">(4)</num>
<content>a general statement of the matters to be included in the petition;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.005/5">
<num value="5">(5)</num>
<content>if the creation of a restriction for a subdivision is proposed, a copy of the proposed petition creating the restriction; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.005/6">
<num value="6">(6)</num>
<content>if the amendment or modification of a restriction is proposed, a copy of the proposed instrument creating the amendment or modification, containing the original restriction that is affected and indicating by appropriate deletion and insertion the change to the restriction that is proposed to be amended or modified.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c201/s201.005/c">
<num value="c">(c)</num>
<content>Each member of the committee must sign and acknowledge the notice before a notary or other official authorized to take acknowledgments.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c201/s201.005/d">
<num value="d">(d)</num>
<content>The county clerk shall enter on the notice the date it is filed and record it in the real property records of the county.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c201/s201.005/e">
<num value="e">(e)</num>
<content>An individual's membership on the committee terminates if the individual ceases to own land in the subdivision. If a vacancy on the committee occurs, either because a member ceases to own land in the subdivision or because a member resigns or dies, a majority of the remaining members may appoint as a successor an individual who owns land in the subdivision and who consents to serve as a committee member. If one or more successor committee members are appointed, the surviving committee members shall file written notice of the name and address of each successor committee member with the county clerk not later than the 10th day after the date of the appointment.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c201/s201.005/f">
<num value="f">(f)</num>
<content>After August 31, 1989, only one committee in a subdivision may file to operate under this chapter at one time. Before September 1, 1989, there is no limit on the number of committees in a subdivision with power to act under this chapter at one time. If more than one committee in a subdivision files a notice after August 31, 1989, the committee that files its notice first is the committee with the power to act. A committee that does not effect a successful petition within the time provided by this chapter is dissolved by operation of law. Except as provided by Section 201.006(c), a new committee for that subdivision may not be validly created under this chapter before the fifth anniversary of the date of dissolution of the previous committee. A petition circulated by a dissolved committee is ineffective for any of the purposes of this chapter.</content>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 309, Sec. 1, eff. Sept. 1, 1985. Amended by Acts 1987, 70th Leg., ch. 712, Sec. 3, eff. June 18, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c201/s201.0051">
<num value="201.0051">Sec. 201.0051.</num>
<heading>SPECIAL PETITION APPROVAL REQUIRED FOR CERTAIN RESTRICTIONS</heading>
<content>A right created or an obligation imposed by an existing restriction that relates to the developer of the subdivision or an architectural control committee established by the instrument creating the restriction cannot be altered unless the person who has the right or obligation signs and acknowledges the petition.</content>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 451, Sec. 3, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c201/s201.006">
<num value="201.006">Sec. 201.006.</num>
<heading>PETITION PROCEDURE</heading>
<subsection identifier="/us/tx/pr/t11/c201/s201.006/a">
<num value="a">(a)</num>
<content>A petition may be circulated, signed, acknowledged, and filed by or on behalf of owners at any time during the circulating committee's existence. The petition must conform to the requirements of Section 201.007.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c201/s201.006/b">
<num value="b">(b)</num>
<chapeau>The petition may be filed not later than one year after the date on which the notice required by Section 201.005(a) is filed. The petition must be signed and acknowledged by owners who own, in the aggregate:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c201/s201.006/1">
<num value="1">(1)</num>
<content>a majority of the total number of lots in the subdivision, in order to extend, renew, or create restrictions;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.006/2">
<num value="2">(2)</num>
<content>a majority of the total number of separately owned parcels, tracts, or building sites in the subdivision, whether or not the parcels, tracts, or building sites contain part or all of one or more platted lots or combinations of lots, in order to extend, renew, or create restrictions;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.006/3">
<num value="3">(3)</num>
<content>a majority of the square footage within all of the lots in the subdivision, excluding any area dedicated or used exclusively for roadways or public purposes or by utilities, in order to extend, renew, or create restrictions;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.006/4">
<num value="4">(4)</num>
<content>at least 75 percent of the total number of lots in the subdivision, in order to modify or add to existing restrictions;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.006/5">
<num value="5">(5)</num>
<content>at least 75 percent of the total number of separately owned parcels, tracts, or building sites in the subdivision, whether or not the parcels, tracts, or building sites contain part or all of one or more platted lots or combination of lots, in order to modify or add to existing restrictions; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.006/6">
<num value="6">(6)</num>
<content>at least 75 percent of the square footage within all of the lots in the subdivision, excluding any area dedicated or used exclusively for roadways or public purposes or by utilities, in order to modify or add to existing restrictions.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c201/s201.006/c">
<num value="c">(c)</num>
<content>If, after August 31, 1988, a court of competent jurisdiction holds any provision of a restrictive covenant affecting a subdivision to which this chapter applies invalid, a petition committee authorized by this chapter may file a petition not later than one year after the date on which the judgment is rendered. For this purpose, the five-year limitation period in Section 201.005(f) does not apply.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c201/s201.006/d">
<num value="d">(d)</num>
<content>The petition is effective if signed and acknowledged by the required number of owners of any one of the classifications of property specified in Subsection (b) and is filed as provided by Subsection (f).</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c201/s201.006/e">
<num value="e">(e)</num>
<content>After an owner signs a petition, the fact that the owner subsequently conveys the land in the subdivision does not affect the previous signing of the petition.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c201/s201.006/f">
<num value="f">(f)</num>
<content>The petition must be filed with the county clerk of each county in which the subdivision is located.</content>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 309, Sec. 1, eff. Sept. 1, 1985. Amended by Acts 1987, 70th Leg., ch. 712, Sec. 4, eff. June 18, 1987; Acts 1991, 72nd Leg., ch. 822, Sec. 4, eff. Sept. 1, 1991.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c201/s201.007">
<num value="201.007">Sec. 201.007.</num>
<heading>CONTENTS OF PETITION</heading>
<subsection identifier="/us/tx/pr/t11/c201/s201.007/a">
<num value="a">(a)</num>
<chapeau>A petition filed under this chapter must contain or be supplemented by one or more instruments containing:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c201/s201.007/1">
<num value="1">(1)</num>
<content>the name of the subdivision;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.007/2">
<num value="2">(2)</num>
<content>a reference to the real property records or map or plat records where the instrument or instruments that contain any restriction sought to be extended, added to, or modified are recorded or, in the case of the creation of a restriction, a reference to the place where the map or other document identifying the subdivision is recorded;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.007/3">
<num value="3">(3)</num>
<content>a verbatim statement of any provisions for extension of the term of, or addition to, the restriction;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.007/4">
<num value="4">(4)</num>
<content>if a restriction is being amended or modified, the text of the proposed instrument creating the amendment or modification, together with a comparison of the original restriction that is affected indicating by appropriate deletion and insertion the change to the restriction that is proposed to be amended or modified;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.007/5">
<num value="5">(5)</num>
<content>if a restriction is being created, the text of the proposed instrument creating the restriction;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.007/6">
<num value="6">(6)</num>
<content>original acknowledged signatures of the required number of owners as provided by Section 201.006;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.007/7">
<num value="7">(7)</num>
<content>alternate boxes, clearly identified in a conspicuous manner next to the place for signing the petition, that enable each record owner to mark the appropriate box to show the exercise of the owner's option of either including or excluding the owner's property from being burdened by the restrictions being extended, created, added to, or modified;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.007/8">
<num value="8">(8)</num>
<content>a statement that owners who do not sign the petition must file suit under Section 201.010 before the 181st day after the date on which the certificate called for by Section 201.008(e) is filed in order to challenge the procedures followed in extending, creating, adding to, or modifying a restriction; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.007/9">
<num value="9">(9)</num>
<content>a statement that owners who do not sign the petition may delete their property from the operation of the extended, created, added to, or modified restriction by filing a statement described in the fourth listed category in Section 201.009(b) before one year after the date on which the owner receives actual notice of the filing of the petition authorized by this chapter.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c201/s201.007/b">
<num value="b">(b)</num>
<content>If a restriction being added to, modified, or extended contains any provision relating to race, religion, or national origin that is void and unenforceable under either the United States Constitution or Section 5.026, the void and unenforceable restriction shall, by the provisions of the petition, be declared to be deleted from the restriction as if the provision had never been contained in the restriction.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c201/s201.007/c">
<num value="c">(c)</num>
<content>Each petition filed under this chapter must contain an assertion from the signing owners that they own record title to property within the subdivision, and the legal description and street address of the property of each signing owner must be shown beside or above the signature. If there is more than one record owner of a tract, each record owner must sign the petition before the property can be counted as a part of the number required by Section 201.006.</content>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 309, Sec. 1, eff. Sept. 1, 1985.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c201/s201.008">
<num value="201.008">Sec. 201.008.</num>
<heading>NOTICE AND CERTIFICATE OF COMPLIANCE</heading>
<subsection identifier="/us/tx/pr/t11/c201/s201.008/a">
<num value="a">(a)</num>
<chapeau>Not later than the 60th day after the date on which a petition that meets the requirements of this chapter is filed, the committee shall give notice directed to all persons who then are record owners of property in the subdivision. The notice must contain:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c201/s201.008/1">
<num value="1">(1)</num>
<content>the name of the subdivision covered by the petition;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.008/2">
<num value="2">(2)</num>
<content>a copy of the petition;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.008/3">
<num value="3">(3)</num>
<content>a statement that the proper number of property owners in the subdivision have signed and acknowledged the petition; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.008/4">
<num value="4">(4)</num>
<content>the date the petition was filed with the county clerk.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c201/s201.008/b">
<num value="b">(b)</num>
<chapeau>Except as provided by Subsection (d), the notice required by Subsection (a) must be:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c201/s201.008/1">
<num value="1">(1)</num>
<content>published once a week for two consecutive weeks in a newspaper of general circulation in the county or counties where the subdivision is located; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.008/2">
<num value="2">(2)</num>
<content>sent by certified mail, return receipt requested, to each person who owned land in the subdivision as of the date the notice is given, excluding the owners of land dedicated for public use or for use by utilities.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c201/s201.008/c">
<num value="c">(c)</num>
<content>If the committee acts in good faith in determining ownership and giving notice as required by this section, the failure to give personal notice to an owner does not affect the application of an extension, modification, or creation of, or addition to, a restriction under this chapter to the property of a person who signed the petition.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c201/s201.008/d">
<num value="d">(d)</num>
<content>Instead of the information required by Subsection (a)(2), a notice published as required by Subsection (b)(1) may contain a general description of the purpose and effect of the petition.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c201/s201.008/e">
<num value="e">(e)</num>
<content>On compliance with the notice requirements of this section, a majority of the members of the committee shall execute a certificate of compliance and file the certificate with the county clerk of each county where the subdivision is located.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c201/s201.008/f">
<num value="f">(f)</num>
<content>The county clerk of each county shall record the certificate in the real property records of the county.</content>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 309, Sec. 1, eff. Sept. 1, 1985.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c201/s201.009">
<num value="201.009">Sec. 201.009.</num>
<heading>PROPERTY WITHIN SUBDIVISION NOT AFFECTED BY PETITION</heading>
<subsection identifier="/us/tx/pr/t11/c201/s201.009/a">
<num value="a">(a)</num>
<content>The procedures called for under this chapter are considered complete and regular in all respects unless challenged by a declaratory judgment suit under Section 201.010.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c201/s201.009/b">
<num value="b">(b)</num>
<chapeau>A restriction added, modified, created, or extended under this chapter does not affect or encumber property within the subdivision that is included within one of the following categories:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c201/s201.009/1">
<num value="1">(1)</num>
<content>property exclusively dedicated for use by the public or for use by utilities;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.009/2">
<num value="2">(2)</num>
<content>property of an owner who elected in the petition to exclude the property from the restriction;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.009/3">
<num value="3">(3)</num>
<content>property of an owner who did not sign the petition and has not received actual notice of the filing of the petition;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.009/4">
<num value="4">(4)</num>
<content>property of an owner who did not sign the petition and who files, before one year after the date on which the owner received actual notice of the filing of the petition, an acknowledged statement describing the owner's property by reference to the recorded map or plat of the subdivision and stating that the owner elects to have the property deleted and excluded from the operation of the extended, modified, changed, or created restriction; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.009/5">
<num value="5">(5)</num>
<chapeau>property owned by a minor or a person judicially declared to be incompetent at the time the certificate is filed, unless:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c201/s201.009/A">
<num value="A">(A)</num>
<content>actual notice of the filing of the petition is given to a guardian of the minor or incompetent person, and the guardian has not filed the statement described in the fourth listed category in this subsection;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c201/s201.009/B">
<num value="B">(B)</num>
<content>a predecessor in title to the minor or incompetent person signed a petition that was filed while the property was owned by the predecessor; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c201/s201.009/C">
<num value="C">(C)</num>
<content>the incompetent person signed a petition that was filed before the judicial declaration of the person's incompetency.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c201/s201.009/c">
<num value="c">(c)</num>
<content>The county clerk shall file a statement described in the fourth listed category in Subsection (b) in the same manner as the petition and certificate. Substantial compliance by an owner with the requirements for the statement prevents the owner's property from being burdened by an extended, created, added to, or modified restriction if the statement is filed within the time required.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c201/s201.009/d">
<num value="d">(d)</num>
<content>A lienholder whose lien was established before the effective date of a petition is not bound by the petition unless the lienholder signs it and it is later filed. If such a lienholder who does not sign the filed petition later acquires title to the property in the subdivision through foreclosure, the acquisition is free of the restrictions added, modified, created, or extended by the petition. However, if any other person acquires the title to the property at a foreclosure sale, that person takes the property subject to the restriction added, modified, created, or extended by the petition, if any prior owner of the foreclosed property signed and acknowledged the petition.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c201/s201.009/e">
<num value="e">(e)</num>
<content>Notwithstanding any other provision of this chapter, property that is excluded in any manner from the operation of restrictions that are modified, added to, or created by a petition under this chapter is, unless the petition expressly provides otherwise, subject to those restrictions, if any, affecting the excluded property as the restrictions existed immediately before the effective date of the petition, and those restrictions are continued in effect to the extent originally applicable to the excluded property. After the filing of such a petition, those restrictions may be added to, modified, or extended by a specified percentage of the owners of real property interests in accordance with this chapter or the instruments evidencing the restrictions as they existed immediately before the effective date of the petition, if otherwise still applicable. Any petition filed under this chapter that creates, adds to, or modifies restrictions may provide for the subsequent addition to or extension, creation, or modification of, the resulting restrictions by a specified percentage of the owners of real property interests in the subdivision as set forth in the instruments evidencing the continued restrictions. This subsection does not abrogate, alter, affect, or impair the rights of a lienholder under Subsection (d) to not be bound by a petition adopted under this chapter when the lienholder subsequently acquires title to the excluded property through foreclosure.</content>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 309, Sec. 1, eff. Sept. 1, 1985. Amended by Acts 1987, 70th Leg., ch. 712, Sec. 5, eff. June 18, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c201/s201.010">
<num value="201.010">Sec. 201.010.</num>
<heading>ACTION AND LIMITATIONS OF REMEDIES</heading>
<subsection identifier="/us/tx/pr/t11/c201/s201.010/a">
<num value="a">(a)</num>
<chapeau>If an owner and the owner's predecessors in interest neither signed the petition nor filed the statement described in the fourth listed category in Section 201.009(b), the owner may file a suit for declaratory judgment in a court of competent jurisdiction:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c201/s201.010/1">
<num value="1">(1)</num>
<content>to challenge the completeness or regularity of the procedures leading to the recordation of a certificate, if the suit is filed before the 181st day after the date on which the certificate is filed with the county clerk; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c201/s201.010/2">
<num value="2">(2)</num>
<content>to exclude the owner's property from the operation of the extended, modified, added to, or created restriction.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c201/s201.010/b">
<num value="b">(b)</num>
<content>A suit for a declaratory judgment must name as defendants the final members of the petition committee who are owners of property in the subdivision at the time of the filing of the suit. In addition, a suit for a declaratory judgment must name all other owners of property in the subdivision as defendants, either as individuals or as members of a class.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c201/s201.010/c">
<num value="c">(c)</num>
<content>An owner who files a suit for the second listed purpose in Subsection (a) is entitled to relief only if the owner pleads and establishes that the conditions of land use within the subdivision at the time the certificate was filed were incompatible with the restriction. As an alternative to excluding a specific parcel of land from the operation of the restriction, a court may alter the restriction as it applies to the parcel to better conform to the incompatible conditions.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c201/s201.010/d">
<num value="d">(d)</num>
<content>The remedies in this section are exclusive of all others in actions brought to challenge a restriction extended, modified, added to, or created under this chapter. The filing of an action for the first listed purpose in Subsection (a) does not prevent the restriction from taking effect in accordance with its terms pending a final judgment.</content>
</subsection>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 309, Sec. 1, eff. Sept. 1, 1985.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c201/s201.011">
<num value="201.011">Sec. 201.011.</num>
<heading>PROHIBITION OF CLAIM OF LACK OF MUTUALITY</heading>
<content>If a petition procedure is completed under this chapter, the owners of property within the subdivision whose property is covered by the petition may not raise in any judicial proceeding the issue that the restrictions added, modified, created, or extended under this chapter are not enforceable on the grounds that the restrictions are not applicable to all of the property in the subdivision.</content>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 309, Sec. 1, eff. Sept. 1, 1985.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c201/s201.012">
<num value="201.012">Sec. 201.012.</num>
<heading>MULTIPLE FILING; COMPUTATION OF FILING DATE</heading>
<content>For purposes of this chapter, an instrument required to be filed with the clerk of more than one county is considered filed on the date on which the last required filing is made.</content>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 309, Sec. 1, eff. Sept. 1, 1985.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c201/s201.013">
<num value="201.013">Sec. 201.013.</num>
<heading>CUMULATIVE EFFECT</heading>
<content>The procedure prescribed by this chapter for adding to, modifying, creating, or extending the term of a restriction is cumulative and not in lieu of other methods of adding to, modifying, creating, or extending a restriction.</content>
<sourceCredit>Added by Acts 1985, 69th Leg., ch. 309, Sec. 1, eff. Sept. 1, 1985.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t11/c202">
<num value="202">CHAPTER 202.</num>
<heading>CONSTRUCTION AND ENFORCEMENT OF RESTRICTIVE COVENANTS</heading>
<section identifier="/us/tx/pr/t11/c202/s202.001">
<num value="202.001">Sec. 202.001.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c202/s202.001/1">
<num value="1">(1)</num>
<chapeau>"Dedicatory instrument" means each document governing the establishment, maintenance, or operation of a residential subdivision, planned unit development, condominium or townhouse regime, or any similar planned development. The term includes a declaration or similar instrument subjecting real property to:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.001/A">
<num value="A">(A)</num>
<content>restrictive covenants, bylaws, or similar instruments governing the administration or operation of a property owners' association;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.001/B">
<num value="B">(B)</num>
<content>properly adopted rules and regulations of the property owners' association; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.001/C">
<num value="C">(C)</num>
<content>all lawful amendments to the covenants, bylaws, instruments, rules, or regulations.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.001/2">
<num value="2">(2)</num>
<content>"Property owners' association" means an incorporated or unincorporated association owned by or whose members consist primarily of the owners of the property covered by the dedicatory instrument and through which the owners, or the board of directors or similar governing body, manage or regulate the residential subdivision, planned unit development, condominium or townhouse regime, or similar planned development.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.001/3">
<num value="3">(3)</num>
<content>"Petition" means one or more instruments, however designated or entitled, by which one or more actions relating to restrictive covenants are sought to be accomplished.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.001/4">
<num value="4">(4)</num>
<content>"Restrictive covenant" means any covenant, condition, or restriction contained in a dedicatory instrument, whether mandatory, prohibitive, permissive, or administrative.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.001/5">
<num value="5">(5)</num>
<content>"Front yard" means a yard within a lot having a front building setback line with a setback of not less than 15 feet extending the full width of the lot between the front lot line and the front building setback line.</content>
</paragraph>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 712, Sec. 1, eff. June 18, 1987.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1142 (H.B. 1821), Sec. 2, eff. January 1, 2012.
Acts 2013, 83rd Leg., R.S., Ch. 1389 (H.B. 680), Sec. 1, eff. June 14, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c202/s202.002">
<num value="202.002">Sec. 202.002.</num>
<heading>APPLICABILITY OF CHAPTER</heading>
<subsection identifier="/us/tx/pr/t11/c202/s202.002/a">
<num value="a">(a)</num>
<content>This chapter applies to all restrictive covenants regardless of the date on which they were created.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.002/b">
<num value="b">(b)</num>
<content>This chapter does not affect the requirements of Chapter 123, Human Resources Code.</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 712, Sec. 1, eff. June 18, 1987.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 291 (S.B. 1768), Sec. 9, eff. May 29, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c202/s202.003">
<num value="202.003">Sec. 202.003.</num>
<heading>CONSTRUCTION OF RESTRICTIVE COVENANTS</heading>
<subsection identifier="/us/tx/pr/t11/c202/s202.003/a">
<num value="a">(a)</num>
<content>A restrictive covenant shall be liberally construed to give effect to its purposes and intent.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.003/b">
<num value="b">(b)</num>
<content>In this subsection, "family home" is a residential home that meets the definition of and requirements applicable to a family home under Chapter 123, Human Resources Code. A dedicatory instrument or restrictive covenant may not be construed to prevent the use of property as a family home. However, any restrictive covenant that applies to property used as a family home shall be liberally construed to give effect to its purposes and intent except to the extent that the construction would restrict the use as a family home.</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 712, Sec. 1, eff. June 18, 1987.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 291 (S.B. 1768), Sec. 10, eff. May 29, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c202/s202.004">
<num value="202.004">Sec. 202.004.</num>
<heading>ENFORCEMENT OF RESTRICTIVE COVENANTS</heading>
<subsection identifier="/us/tx/pr/t11/c202/s202.004/a">
<num value="a">(a)</num>
<content>An exercise of discretionary authority by a property owners' association or other representative designated by an owner of real property concerning a restrictive covenant is presumed reasonable unless the court determines by a preponderance of the evidence that the exercise of discretionary authority was arbitrary, capricious, or discriminatory.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.004/b">
<num value="b">(b)</num>
<content>A property owners' association or other representative designated by an owner of real property may initiate, defend, or intervene in litigation or an administrative proceeding affecting the enforcement of a restrictive covenant or the protection, preservation, or operation of the property covered by the dedicatory instrument.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.004/c">
<num value="c">(c)</num>
<content>A court may assess civil damages for the violation of a restrictive covenant in an amount not to exceed $200 for each day of the violation.</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 712, Sec. 1, eff. June 18, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c202/s202.005">
<num value="202.005">Sec. 202.005.</num>
<heading>WITHDRAWAL OF SIGNATURE</heading>
<subsection identifier="/us/tx/pr/t11/c202/s202.005/a">
<num value="a">(a)</num>
<content>A signature may be withdrawn from a petition authorized to be filed in connection with terminating restrictive covenants, as provided by this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.005/b">
<num value="b">(b)</num>
<content>To withdraw a signature, the signer must request that the signature be withdrawn.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.005/c">
<num value="c">(c)</num>
<chapeau>To be effective, a withdrawal request must:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c202/s202.005/1">
<num value="1">(1)</num>
<content>be in writing and be signed and acknowledged by the signer of the petition;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.005/2">
<num value="2">(2)</num>
<content>be filed with the authority with whom the petition is required to be filed not later than the day before the petition filing deadline, if any; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.005/3">
<num value="3">(3)</num>
<content>be delivered in the form of a copy of the request to the circulator of the petition not later than the date the request is filed or by the effective date of this chapter, whichever is later.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.005/d">
<num value="d">(d)</num>
<content>A withdrawal request or copy filed or delivered by mail is considered to be filed or delivered at the time of its receipt by the appropriate person.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.005/e">
<num value="e">(e)</num>
<content>The filing of an effective withdrawal request nullifies the signature on the petition and places the signer in the same position as if the signer had not signed the petition.</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 712, Sec. 1, eff. June 18, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c202/s202.006">
<num value="202.006">Sec. 202.006.</num>
<heading>PUBLIC RECORDS</heading>
<subsection identifier="/us/tx/pr/t11/c202/s202.006/a">
<num value="a">(a)</num>
<content>A property owners' association shall file all dedicatory instruments in the real property records of each county in which the property to which the dedicatory instruments relate is located.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.006/b">
<num value="b">(b)</num>
<content>A dedicatory instrument has no effect until the instrument is filed in accordance with this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.006/c">
<num value="c">(c)</num>
<content>A property owners' association may not collect a regular assessment, as defined by Section 209.002, if the dedicatory instrument authorizing the collection of the regular assessment is not filed as required by Subsection (a).</content>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1420, Sec. 2, eff. Sept. 1, 1999.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1142 (H.B. 1821), Sec. 3, eff. January 1, 2012.
Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 1, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c202/s202.007">
<num value="202.007">Sec. 202.007.</num>
<heading>CERTAIN RESTRICTIVE COVENANTS PROHIBITED</heading>
<subsection identifier="/us/tx/pr/t11/c202/s202.007/a">
<num value="a">(a)</num>
<chapeau>A property owners' association may not include or enforce a provision in a dedicatory instrument that prohibits or restricts a property owner from:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c202/s202.007/1">
<num value="1">(1)</num>
<content>implementing measures promoting solid-waste composting of vegetation, including grass clippings, leaves, or brush, or leaving grass clippings uncollected on grass;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.007/2">
<num value="2">(2)</num>
<content>installing rain barrels or a rainwater harvesting system;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.007/3">
<num value="3">(3)</num>
<content>implementing efficient irrigation systems, including underground drip or other drip systems; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.007/4">
<num value="4">(4)</num>
<content>using drought-resistant landscaping or water-conserving natural turf.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.007/b">
<num value="b">(b)</num>
<content>A provision that violates Subsection (a) is void.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.007/c">
<num value="c">(c)</num>
<content>A property owners' association may restrict the type of turf used by a property owner in the planting of new turf to encourage or require water-conserving turf.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.007/d">
<num value="d">(d)</num>
<chapeau>This section does not:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c202/s202.007/1">
<num value="1">(1)</num>
<content>restrict a property owners' association from regulating the requirements, including size, type, shielding, and materials, for or the location of a composting device if the restriction does not prohibit the economic installation of the device on the property owner's property where there is reasonably sufficient area to install the device;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.007/2">
<num value="2">(2)</num>
<chapeau>require a property owners' association to permit a device described by Subdivision (1) to be installed in or on property:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.007/A">
<num value="A">(A)</num>
<content>owned by the property owners' association;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.007/B">
<num value="B">(B)</num>
<content>owned in common by the members of the property owners' association; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.007/C">
<num value="C">(C)</num>
<content>in an area other than the fenced yard or patio of a property owner;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.007/3">
<num value="3">(3)</num>
<content>prohibit a property owners' association from regulating the installation of efficient irrigation systems, including establishing visibility limitations for aesthetic purposes;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.007/4">
<num value="4">(4)</num>
<content>prohibit a property owners' association from regulating the installation or use of gravel, rocks, or cacti;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.007/5">
<num value="5">(5)</num>
<content>restrict a property owners' association from regulating yard and landscape maintenance if the restrictions or requirements do not restrict or prohibit turf or landscaping design that promotes water conservation;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.007/6">
<num value="6">(6)</num>
<chapeau>require a property owners' association to permit a rain barrel or rainwater harvesting system to be installed in or on property if:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.007/A">
<num value="A">(A)</num>
<content>the property is:</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.007/i">
<num value="i">(i)</num>
<chapeau>owned by the property owners' association;</chapeau>
<clause identifier="/us/tx/pr/t11/c202/s202.007/ii">
<num value="ii">(ii)</num>
<content>owned in common by the members of the property owners' association; or</content>
</clause>
<clause identifier="/us/tx/pr/t11/c202/s202.007/iii">
<num value="iii">(iii)</num>
<content>located between the front of the property owner's home and an adjoining or adjacent street; or</content>
</clause>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.007/B">
<num value="B">(B)</num>
<content>the barrel or system:</content>
</subparagraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.007/i">
<num value="i">(i)</num>
<chapeau>is of a color other than a color consistent with the color scheme of the property owner's home; or</chapeau>
<clause identifier="/us/tx/pr/t11/c202/s202.007/ii">
<num value="ii">(ii)</num>
<content>displays any language or other content that is not typically displayed by such a barrel or system as it is manufactured;</content>
</clause>
<paragraph identifier="/us/tx/pr/t11/c202/s202.007/7">
<num value="7">(7)</num>
<chapeau>restrict a property owners' association from regulating the size, type, and shielding of, and the materials used in the construction of, a rain barrel, rainwater harvesting device, or other appurtenance that is located on the side of a house or at any other location that is visible from a street, another lot, or a common area if:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.007/A">
<num value="A">(A)</num>
<content>the restriction does not prohibit the economic installation of the device or appurtenance on the property owner's property; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.007/B">
<num value="B">(B)</num>
<content>there is a reasonably sufficient area on the property owner's property in which to install the device or appurtenance; or</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.007/8">
<num value="8">(8)</num>
<content>prohibit a property owners' association from requiring an owner to submit a detailed description or a plan for the installation of drought-resistant landscaping or water-conserving natural turf for review and approval by the property owners' association to ensure, to the extent practicable, maximum aesthetic compatibility with other landscaping in the subdivision.</content>
<continuation>(d-1) A property owners' association may not unreasonably deny or withhold approval of a proposed installation of drought-resistant landscaping or water-conserving natural turf under Subsection (d)(8) or unreasonably determine that the proposed installation is aesthetically incompatible with other landscaping in the subdivision.</continuation>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.007/e">
<num value="e">(e)</num>
<chapeau>This section does not apply to a property owners' association that:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c202/s202.007/1">
<num value="1">(1)</num>
<content>is located in a municipality with a population of more than 175,000 that is located in a county in which another municipality with a population of more than one million is predominantly located; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.007/2">
<num value="2">(2)</num>
<content>manages or regulates a development in which at least 4,000 acres of the property is subject to a covenant, condition, or restriction designating the property for commercial use, multifamily dwellings, or open space.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 1024, Sec. 1, eff. Sept. 1, 2003.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1311 (H.B. 3391), Sec. 6, eff. September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 736 (S.B. 198), Sec. 1, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c202/s202.008">
<num value="202.008">Sec. 202.008.</num>
<heading>LIMITATION ON FINES DURING RESIDENTIAL WATER RESTRICTION</heading>
<subsection identifier="/us/tx/pr/t11/c202/s202.008/a">
<num value="a">(a)</num>
<content>For the purposes of this section, "residential watering restriction" means a temporary restriction of water use to irrigate residential vegetation or turf that is mandated by a municipality, water utility, or other wholesale or retail water supplier as part of a strategy to conserve water during a period of drought.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.008/b">
<num value="b">(b)</num>
<chapeau>A property owners' association may not assess a fine against a property owner for a violation of an applicable restrictive covenant that requires the owner to plant or install grass or turf or maintain green vegetation or turf or prohibits discolored or brown vegetation or turf on the property:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c202/s202.008/1">
<num value="1">(1)</num>
<content>during a period when the owner's property is subject to a residential watering restriction under which discolored or brown vegetation or turf could reasonably result; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.008/2">
<num value="2">(2)</num>
<content>before the 60th day after the date a residential watering restriction described by Subdivision (1) is lifted.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 168 (H.B. 517), Sec. 1, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c202/s202.010">
<num value="202.010">Sec. 202.010.</num>
<heading>REGULATION OF SOLAR ENERGY DEVICES</heading>
<subsection identifier="/us/tx/pr/t11/c202/s202.010/a">
<num value="a">(a)</num>
<chapeau>In this section:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c202/s202.010/1">
<num value="1">(1)</num>
<chapeau>"Development period" means a period stated in a declaration during which a declarant reserves:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.010/A">
<num value="A">(A)</num>
<content>a right to facilitate the development, construction, and marketing of the subdivision; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.010/B">
<num value="B">(B)</num>
<content>a right to direct the size, shape, and composition of the subdivision.</content>
<continuation>(1-a) "Residential unit" means a structure or part of a structure intended for use as a single residence and that is:</continuation>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.010/A">
<num value="A">(A)</num>
<content>a single-family house; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.010/B">
<num value="B">(B)</num>
<content>a separate living unit in a duplex, a triplex, or a quadplex.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.010/2">
<num value="2">(2)</num>
<content>"Solar energy device" has the meaning assigned by Section 171.107, Tax Code. The term includes a solar roof tile.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.010/b">
<num value="b">(b)</num>
<content>Except as otherwise provided by Subsection (d), a property owners' association may not include or enforce a provision in a dedicatory instrument that prohibits or restricts a property owner from installing a solar energy device.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.010/c">
<num value="c">(c)</num>
<content>A provision that violates Subsection (b) is void.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.010/d">
<num value="d">(d)</num>
<chapeau>A property owners' association may include or enforce a provision in a dedicatory instrument that prohibits a solar energy device that:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c202/s202.010/1">
<num value="1">(1)</num>
<chapeau>as adjudicated by a court:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.010/A">
<num value="A">(A)</num>
<content>threatens the public health or safety; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.010/B">
<num value="B">(B)</num>
<content>violates a law;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.010/2">
<num value="2">(2)</num>
<content>is located on property owned or maintained by the property owners' association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.010/3">
<num value="3">(3)</num>
<content>is located on property owned in common by the members of the property owners' association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.010/4">
<num value="4">(4)</num>
<chapeau>is located in an area on the property owner's property other than:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.010/A">
<num value="A">(A)</num>
<content>on the roof of the home or of another structure allowed under a dedicatory instrument; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.010/B">
<num value="B">(B)</num>
<content>in a fenced yard or patio owned and maintained by the property owner;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.010/5">
<num value="5">(5)</num>
<chapeau>if mounted on the roof of the home:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.010/A">
<num value="A">(A)</num>
<content>extends higher than or beyond the roofline;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.010/B">
<num value="B">(B)</num>
<content>is located in an area other than an area designated by the property owners' association, unless the alternate location increases the estimated annual energy production of the device, as determined by using a publicly available modeling tool provided by the National Renewable Energy Laboratory, by more than 10 percent above the energy production of the device if located in an area designated by the property owners' association;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.010/C">
<num value="C">(C)</num>
<content>does not conform to the slope of the roof and has a top edge that is not parallel to the roofline; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.010/D">
<num value="D">(D)</num>
<content>has a frame, a support bracket, or visible piping or wiring that is not in a silver, bronze, or black tone commonly available in the marketplace;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.010/6">
<num value="6">(6)</num>
<content>if located in a fenced yard or patio, is taller than the fence line;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.010/7">
<num value="7">(7)</num>
<content>as installed, voids material warranties; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.010/8">
<num value="8">(8)</num>
<content>was installed without prior approval by the property owners' association or by a committee created in a dedicatory instrument for such purposes that provides decisions within a reasonable period or within a period specified in the dedicatory instrument.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.010/e">
<num value="e">(e)</num>
<content>A property owners' association or the association's architectural review committee may not withhold approval for installation of a solar energy device if the provisions of the dedicatory instruments to the extent authorized by Subsection (d) are met or exceeded, unless the association or committee, as applicable, determines in writing that placement of the device as proposed by the property owner constitutes a condition that substantially interferes with the use and enjoyment of land by causing unreasonable discomfort or annoyance to persons of ordinary sensibilities. For purposes of making a determination under this subsection, the written approval of the proposed placement of the device by all property owners of adjoining property constitutes prima facie evidence that such a condition does not exist.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.010/f">
<num value="f">(f)</num>
<content>During the development period for a development with fewer than 51 planned residential units, the declarant may prohibit or restrict a property owner from installing a solar energy device.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 939 (H.B. 362), Sec. 1, eff. June 17, 2011.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 126 (S.B. 1626), Sec. 1, eff. September 1, 2015.
Acts 2015, 84th Leg., R.S., Ch. 126 (S.B. 1626), Sec. 2, eff. September 1, 2015.
Acts 2025, 89th Leg., R.S., Ch. 254 (H.B. 431), Sec. 1, eff. May 29, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c202/s202.011">
<num value="202.011">Sec. 202.011.</num>
<heading>REGULATION OF CERTAIN ROOFING MATERIALS</heading>
<chapeau>A property owners' association may not include or enforce a provision in a dedicatory instrument that prohibits or restricts a property owner who is otherwise authorized to install shingles on the roof of the owner's property from installing shingles that:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c202/s202.011/1">
<num value="1">(1)</num>
<chapeau>are designed primarily to:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.011/A">
<num value="A">(A)</num>
<content>be wind and hail resistant;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.011/B">
<num value="B">(B)</num>
<content>provide heating and cooling efficiencies greater than those provided by customary composite shingles; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.011/C">
<num value="C">(C)</num>
<content>provide solar generation capabilities; and</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.011/2">
<num value="2">(2)</num>
<chapeau>when installed:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.011/A">
<num value="A">(A)</num>
<content>resemble the shingles used or otherwise authorized for use on property in the subdivision;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.011/B">
<num value="B">(B)</num>
<content>are more durable than and are of equal or superior quality to the shingles described by Paragraph (A); and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.011/C">
<num value="C">(C)</num>
<content>match the aesthetics of the property surrounding the owner's property.</content>
</subparagraph>
</paragraph>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 939 (H.B. 362), Sec. 1, eff. June 17, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c202/s202.012">
<num value="202.012">Sec. 202.012.</num>
<heading>FLAG DISPLAY</heading>
<subsection identifier="/us/tx/pr/t11/c202/s202.012/a">
<num value="a">(a)</num>
<chapeau>A property owners' association may not, except as provided in this section, adopt or enforce a dedicatory instrument provision that prohibits, restricts, or has the effect of prohibiting or restricting an owner from the display of:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c202/s202.012/1">
<num value="1">(1)</num>
<content>the flag of the United States of America;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.012/2">
<num value="2">(2)</num>
<content>the flag of the State of Texas; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.012/3">
<num value="3">(3)</num>
<content>an official or replica flag of any branch of the United States armed forces.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.012/b">
<num value="b">(b)</num>
<chapeau>A property owners' association may adopt or enforce reasonable dedicatory instrument provisions:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c202/s202.012/1">
<num value="1">(1)</num>
<chapeau>that require:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.012/A">
<num value="A">(A)</num>
<content>the flag of the United States be displayed in accordance with 4 U.S.C. Sections 5-10;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.012/B">
<num value="B">(B)</num>
<content>the flag of the State of Texas be displayed in accordance with Chapter 3100, Government Code;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.012/C">
<num value="C">(C)</num>
<content>a flagpole attached to a dwelling or a freestanding flagpole be constructed of permanent, long-lasting materials, with a finish appropriate to the materials used in the construction of the flagpole and harmonious with the dwelling;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.012/D">
<num value="D">(D)</num>
<content>the display of a flag, or the location and construction of the supporting flagpole, to comply with applicable zoning ordinances, easements, and setbacks of record; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.012/E">
<num value="E">(E)</num>
<content>a displayed flag and the flagpole on which it is flown be maintained in good condition and that any deteriorated flag or deteriorated or structurally unsafe flagpole be repaired, replaced, or removed;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.012/2">
<num value="2">(2)</num>
<chapeau>that regulate the size, number, and location of flagpoles on which flags are displayed, except that the regulation may not prevent the installation or erection of at least one flagpole per property that:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.012/A">
<num value="A">(A)</num>
<content>is not more than 20 feet in height and, subject to applicable zoning ordinances, easements, and setbacks of record, is located in the front yard of the property; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.012/B">
<num value="B">(B)</num>
<content>is attached to any portion of a residential structure owned by the property owner and not maintained by the property owners' association;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.012/3">
<num value="3">(3)</num>
<content>that govern the size of a displayed flag;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.012/4">
<num value="4">(4)</num>
<content>that regulate the size, location, and intensity of any lights used to illuminate a displayed flag;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.012/5">
<num value="5">(5)</num>
<content>that impose reasonable restrictions to abate noise caused by an external halyard of a flagpole; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.012/6">
<num value="6">(6)</num>
<chapeau>that prohibit a property owner from locating a displayed flag or flagpole on property that is:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.012/A">
<num value="A">(A)</num>
<content>owned or maintained by the property owners' association; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.012/B">
<num value="B">(B)</num>
<content>owned in common by the members of the association.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.012/c">
<num value="c">(c)</num>
<content>A property owner who has a front yard and who otherwise complies with any permitted property owners' association regulations may elect to install a flagpole in accordance with either Subsection (b)(2)(A) or Subsection (b)(2)(B).</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 1028 (H.B. 2779), Sec. 1, eff. June 17, 2011.
Redesignated from Property Code, Section 202.011 by Acts 2013, 83rd Leg., R.S., Ch. 161 (S.B. 1093), Sec. 22.001(40), eff. September 1, 2013.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 1389 (H.B. 680), Sec. 2, eff. June 14, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c202/s202.013">
<num value="202.013">Sec. 202.013.</num>
<heading>REGULATION OF ASSEMBLY, ASSOCIATION, AND SPEECH</heading>
<subsection identifier="/us/tx/pr/t11/c202/s202.013/a">
<num value="a">(a)</num>
<chapeau>This section does not apply to a common area of a property owners' association that is not made available for meetings:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c202/s202.013/1">
<num value="1">(1)</num>
<content>due to designated seasonal use; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.013/2">
<num value="2">(2)</num>
<content>other than a meeting of the property owners' association, the board of the property owners' association, or a committee of the association or the association's board.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.013/b">
<num value="b">(b)</num>
<content>Except as otherwise provided by this section, a property owners' association may not adopt or enforce a provision in a dedicatory instrument that prohibits or has the effect of prohibiting a property owner or resident from inviting governmental officials and candidates who have been qualified in the appropriate election to run for public governmental office to address or meet with property owners' association members, residents, or their invitees in common areas of the association.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.013/c">
<num value="c">(c)</num>
<chapeau>A property owners' association may require gatherings described by Subsection (b) to abide by the same provisions of a dedicatory instrument that apply to any other gathering held in a common area of the association, including a provision:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c202/s202.013/1">
<num value="1">(1)</num>
<content>requiring a room rental fee or deposit;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.013/2">
<num value="2">(2)</num>
<content>limiting the maximum occupancy of the common area where the meeting is to be held;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.013/3">
<num value="3">(3)</num>
<content>establishing hours during which a meeting may be held in the common area;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.013/4">
<num value="4">(4)</num>
<content>specifying the common areas of the association that are available to the association members for meetings; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.013/5">
<num value="5">(5)</num>
<content>requiring a written reservation or rental agreement.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.013/d">
<num value="d">(d)</num>
<content>This section does not apply to a property owners' association that qualifies for tax exempt status under Section 501(c)(3), Internal Revenue Code of 1986.</content>
</subsection>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 551 (H.B. 621), Sec. 1, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c202/s202.018">
<num value="202.018">Sec. 202.018.</num>
<heading>REGULATION OF DISPLAY OF CERTAIN RELIGIOUS ITEMS</heading>
<subsection identifier="/us/tx/pr/t11/c202/s202.018/a">
<num value="a">(a)</num>
<content>Except as otherwise provided by this section, a property owners' association may not enforce or adopt a provision in a dedicatory instrument, including a restrictive covenant, that prohibits a property owner or resident from displaying or affixing on the owner's or resident's property or dwelling one or more religious items the display of which is motivated by the owner's or resident's sincere religious belief.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.018/b">
<num value="b">(b)</num>
<chapeau>This section does not prohibit the enforcement or adoption of a provision in a dedicatory instrument, including a restrictive covenant, that, to the extent allowed by the constitution of this state and the United States, prohibits the display or affixing of a religious item on the owner's or resident's property or dwelling that:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c202/s202.018/1">
<num value="1">(1)</num>
<content>threatens the public health or safety;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.018/2">
<num value="2">(2)</num>
<content>violates a law other than a law prohibiting the display of religious speech;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.018/3">
<num value="3">(3)</num>
<content>contains language, graphics, or any display that is patently offensive to a passerby for reasons other than its religious content;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.018/4">
<num value="4">(4)</num>
<chapeau>is installed on property:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.018/A">
<num value="A">(A)</num>
<content>owned or maintained by the property owners' association; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.018/B">
<num value="B">(B)</num>
<content>owned in common by members of the property owners' association;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.018/5">
<num value="5">(5)</num>
<content>violates any applicable building line, right-of-way, setback, or easement; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.018/6">
<num value="6">(6)</num>
<content>is attached to a traffic control device, street lamp, fire hydrant, or utility sign, pole, or fixture.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.018/c">
<num value="c">(c)</num>
<content>Repealed by Acts 2021, 87th Leg., R.S., Ch. 196 (S.B. 581), Sec. 2, eff. May 31, 2021, and Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 22(1), eff. September 1, 2021..</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.018/d">
<num value="d">(d)</num>
<content>Repealed by Acts 2021, 87th Leg., R.S., Ch. 196 (S.B. 581), Sec. 2, eff. May 31, 2021, and Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 22(1), eff. September 1, 2021.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 263 (H.B. 1278), Sec. 1, eff. June 17, 2011.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 196 (S.B. 581), Sec. 1, eff. May 31, 2021.
Acts 2021, 87th Leg., R.S., Ch. 196 (S.B. 581), Sec. 2, eff. May 31, 2021.
Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 2, eff. September 1, 2021.
Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 22(1), eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c202/s202.019">
<num value="202.019">Sec. 202.019.</num>
<heading>STANDBY ELECTRIC GENERATORS</heading>
<subsection identifier="/us/tx/pr/t11/c202/s202.019/a">
<num value="a">(a)</num>
<chapeau>In this section, "standby electric generator" means a device that converts mechanical energy to electrical energy and is:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c202/s202.019/1">
<num value="1">(1)</num>
<content>powered by natural gas, liquefied petroleum gas, diesel fuel, biodiesel fuel, or hydrogen;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.019/2">
<num value="2">(2)</num>
<content>fully enclosed in an integral manufacturer-supplied sound attenuating enclosure;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.019/3">
<num value="3">(3)</num>
<content>connected to the main electrical panel of a residence by a manual or automatic transfer switch; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.019/4">
<num value="4">(4)</num>
<content>rated for a generating capacity of not less than seven kilowatts.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.019/b">
<num value="b">(b)</num>
<content>Except as provided by this section, a property owners' association may not adopt or enforce a dedicatory instrument provision that prohibits, restricts, or has the effect of prohibiting or restricting an owner from owning, operating, installing, or maintaining a permanently installed standby electric generator.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.019/c">
<num value="c">(c)</num>
<chapeau>A property owners' association may adopt or enforce any of the following dedicatory instrument provisions to regulate the operation and installation of standby electric generators:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c202/s202.019/1">
<num value="1">(1)</num>
<chapeau>a dedicatory instrument provision that requires a standby electric generator to be installed and maintained in compliance with:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.019/A">
<num value="A">(A)</num>
<content>the manufacturer's specifications; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.019/B">
<num value="B">(B)</num>
<content>applicable governmental health, safety, electrical, and building codes;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.019/2">
<num value="2">(2)</num>
<content>a dedicatory instrument provision that requires all electrical, plumbing, and fuel line connections to be installed only by licensed contractors;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.019/3">
<num value="3">(3)</num>
<content>a dedicatory instrument provision that requires all electrical connections to be installed in accordance with applicable governmental health, safety, electrical, and building codes;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.019/4">
<num value="4">(4)</num>
<content>a dedicatory instrument provision that requires all natural gas, diesel fuel, biodiesel fuel, or hydrogen fuel line connections to be installed in accordance with applicable governmental health, safety, electrical, and building codes;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.019/5">
<num value="5">(5)</num>
<content>a dedicatory instrument provision that requires all liquefied petroleum gas fuel line connections to be installed in accordance with rules and standards promulgated and adopted by the Railroad Commission of Texas and other applicable governmental health, safety, electrical, and building codes;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.019/6">
<num value="6">(6)</num>
<content>a dedicatory instrument provision that requires nonintegral standby electric generator fuel tanks to be installed and maintained to comply with applicable municipal zoning ordinances and governmental health, safety, electrical, and building codes;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.019/7">
<num value="7">(7)</num>
<content>a dedicatory instrument provision that requires the standby electric generator and its electrical lines and fuel lines to be maintained in good condition;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.019/8">
<num value="8">(8)</num>
<content>a dedicatory instrument provision that requires the repair, replacement, or removal of any deteriorated or unsafe component of a standby electric generator, including electrical or fuel lines;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.019/9">
<num value="9">(9)</num>
<chapeau>a dedicatory instrument provision that requires an owner to screen a standby electric generator if the standby electric generator is:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.019/A">
<num value="A">(A)</num>
<content>visible from the street faced by the dwelling;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.019/B">
<num value="B">(B)</num>
<content>located in an unfenced side or rear yard of a residence and is visible either from an adjoining residence or from adjoining property owned by the property owners' association; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.019/C">
<num value="C">(C)</num>
<content>located in a side or rear yard fenced by a wrought iron or residential aluminum fence and is visible through the fence either from an adjoining residence or from adjoining property owned by the property owners' association;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.019/10">
<num value="10">(10)</num>
<content>a dedicatory instrument provision that sets reasonable times, consistent with the manufacturer's recommendations, for the periodic testing of a standby electric generator;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.019/11">
<num value="11">(11)</num>
<content>a dedicatory instrument provision that prohibits the use of a standby electric generator to generate all or substantially all of the electrical power to a residence, except when utility-generated electrical power to the residence is not available or is intermittent due to causes other than nonpayment for utility service to the residence;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.019/12">
<num value="12">(12)</num>
<content>a dedicatory instrument provision that regulates the location of the standby electric generator; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.019/13">
<num value="13">(13)</num>
<chapeau>a dedicatory instrument provision that prohibits an owner from locating a standby electric generator on property:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.019/A">
<num value="A">(A)</num>
<content>owned or maintained by the property owners' association; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.019/B">
<num value="B">(B)</num>
<content>owned in common by the property owners' association members.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.019/d">
<num value="d">(d)</num>
<content>A dedicatory instrument provision permitted by Subsection (c), if adopted, must be reasonably applied and enforced.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.019/e">
<num value="e">(e)</num>
<chapeau>A dedicatory instrument provision that regulates the location of a standby electric generator is unenforceable if:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c202/s202.019/1">
<num value="1">(1)</num>
<content>it increases the cost of installing the standby electric generator by more than 10 percent; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.019/2">
<num value="2">(2)</num>
<content>it increases the cost of installing and connecting the electrical and fuel lines for the standby electric generator by more than 20 percent.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.019/f">
<num value="f">(f)</num>
<content>If a dedicatory instrument requires that the installation of a standby electric generator be approved before installation, approval may not be withheld if the proposed installation meets or exceeds the dedicatory instrument provisions permitted by Subsection (c).</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.019/g">
<num value="g">(g)</num>
<content>If a dedicatory instrument provision requires an owner to submit an application for approval of improvements located exterior to a residence, this section does not negate the requirement, but the information required to be submitted as part of the application for the installation of a standby electric generator may not be greater or more detailed than the application for any other improvement.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.019/h">
<num value="h">(h)</num>
<content>In a hearing, action, or proceeding to determine whether a proposed or installed standby electric generator complies with the requirements of a dedicatory instrument provision permitted by Subsection (c), the party asserting noncompliance bears the burden of proof.</content>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 1014 (H.B. 939), Sec. 1, eff. June 19, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c202/s202.020">
<num value="202.020">Sec. 202.020.</num>
<heading>CERTAIN SALES OF BEVERAGES BY CHILDREN</heading>
<subsection identifier="/us/tx/pr/t11/c202/s202.020/a">
<num value="a">(a)</num>
<content>A property owners' association of a residential subdivision may not adopt or enforce a restrictive covenant that prohibits or regulates, including by requiring a permit or fee, the occasional sale of lemonade or other nonalcoholic beverages from a stand on property located in the subdivision by an individual younger than 18 years of age who has the permission of a property owner in the subdivision for the sale.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.020/b">
<num value="b">(b)</num>
<chapeau>A property owners' association:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c202/s202.020/1">
<num value="1">(1)</num>
<content>does not owe a duty of care to persons participating in a beverage sale described by Subsection (a); and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.020/2">
<num value="2">(2)</num>
<content>is not liable for any injury to persons participating in a beverage sale described by Subsection (a), except for wilful or wanton acts or gross negligence of the association.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 1027 (H.B. 234), Sec. 3, eff. September 1, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c202/s202.021">
<num value="202.021">Sec. 202.021.</num>
<heading>REGULATION OF FIREARMS OR FIREARM AMMUNITION</heading>
<content>A property owners' association may not include or enforce a provision in a dedicatory instrument that prohibits, restricts, or has the effect of prohibiting or restricting any person who is otherwise authorized from lawfully possessing, transporting, or storing a firearm, any part of a firearm, or firearm ammunition, as well as the otherwise lawful discharge of a firearm.</content>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 972 (S.B. 741), Sec. 1, eff. September 1, 2019.
Redesignated from Property Code, Section 202.020 by Acts 2021, 87th Leg., R.S., Ch. 915 (H.B. 3607), Sec. 21.001(63), eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c202/s202.022">
<num value="202.022">Sec. 202.022.</num>
<heading>SWIMMING POOL ENCLOSURES</heading>
<subsection identifier="/us/tx/pr/t11/c202/s202.022/a">
<num value="a">(a)</num>
<chapeau>In this section, "swimming pool enclosure" means a fence that:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c202/s202.022/1">
<num value="1">(1)</num>
<content>surrounds a water feature, including a swimming pool or spa;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.022/2">
<num value="2">(2)</num>
<content>consists of transparent mesh or clear panels set in metal frames;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.022/3">
<num value="3">(3)</num>
<content>is not more than six feet in height; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.022/4">
<num value="4">(4)</num>
<content>is designed to not be climbable.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.022/b">
<num value="b">(b)</num>
<chapeau>A property owners' association:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c202/s202.022/1">
<num value="1">(1)</num>
<content>may not adopt or enforce a provision in a dedicatory instrument that prohibits or restricts a property owner from installing on the property owner's property a swimming pool enclosure that conforms to applicable state or local safety requirements; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.022/2">
<num value="2">(2)</num>
<content>may adopt and enforce a provision in a dedicatory instrument establishing limitations related to the appearance of a swimming pool enclosure, including limitations establishing permissible colors for a swimming pool enclosure, provided that the provision does not prohibit a swimming pool enclosure that is black in color and consists of transparent mesh set in metal frames.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 3, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c202/s202.023">
<num value="202.023">Sec. 202.023.</num>
<heading>SECURITY MEASURES</heading>
<subsection identifier="/us/tx/pr/t11/c202/s202.023/a">
<num value="a">(a)</num>
<chapeau>This section does not apply to:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c202/s202.023/1">
<num value="1">(1)</num>
<content>a condominium as defined by Section 81.002 or 82.003; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.023/2">
<num value="2">(2)</num>
<content>a master mixed-use property owners' association subject to Chapter 215.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.023/b">
<num value="b">(b)</num>
<content>Except as provided by Subsection (c), a property owners' association may not adopt or enforce a restrictive covenant that prevents a property owner from building or installing security measures, including but not limited to a security camera, motion detector, or perimeter fence.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.023/c">
<num value="c">(c)</num>
<chapeau>This section does not prohibit a property owners' association from:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c202/s202.023/1">
<num value="1">(1)</num>
<content>prohibiting the installation of a security camera by a property owner in a place other than the property owner's private property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.023/2">
<num value="2">(2)</num>
<content>regulating the type of fencing that a property owner may install;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.023/3">
<num value="3">(3)</num>
<chapeau>prohibiting the placement of fencing that obstructs:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.023/A">
<num value="A">(A)</num>
<content>a license area, as defined by a written license agreement or plat;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.023/B">
<num value="B">(B)</num>
<content>a sidewalk in the public right-of-way or otherwise installed for public or community use; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c202/s202.023/C">
<num value="C">(C)</num>
<content>a drainage easement or drainage area;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.023/4">
<num value="4">(4)</num>
<content>requiring a driveway gate to be set back at least 10 feet from the right-of-way if the driveway intersects with a laned roadway, as defined by Section 541.302, Transportation Code; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.023/5">
<num value="5">(5)</num>
<content>if provided by a restrictive covenant, prohibiting the installation of fencing in front of the front-most building line of a dwelling.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.023/d">
<num value="d">(d)</num>
<content>Notwithstanding Subsection (c), a property owner may maintain any perimeter fencing or fencing in front of a dwelling's front-most building line installed or constructed before September 1, 2025.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.023/e">
<num value="e">(e)</num>
<chapeau>Notwithstanding Subsection (c)(5), a property owners' association may not prohibit a property owner from installing perimeter fencing or fencing in front of the front-most building line of a dwelling if:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c202/s202.023/1">
<num value="1">(1)</num>
<content>the property owner's residential address is exempt from public disclosure under state or federal law; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.023/2">
<num value="2">(2)</num>
<content>the property owner provides to the association documentation from a law enforcement agency of the property owner's need for enhanced security measures.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 716 (H.B. 3571), Sec. 1, eff. June 15, 2021.
Added by Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 4, eff. September 1, 2021.
Amended by:
Acts 2025, 89th Leg., R.S., Ch. 10 (S.B. 711), Sec. 5, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c202/s202.024">
<num value="202.024">Sec. 202.024.</num>
<heading>DISCRIMINATION AGAINST TENANT BASED ON METHOD OF PAYMENT PROHIBITED</heading>
<subsection identifier="/us/tx/pr/t11/c202/s202.024/a">
<num value="a">(a)</num>
<chapeau>In this section, "method of payment" includes payment made in whole or in part by:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c202/s202.024/1">
<num value="1">(1)</num>
<content>a housing choice voucher under Section 8, United States Housing Act of 1937 (42 U.S.C. Section 1437f); or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c202/s202.024/2">
<num value="2">(2)</num>
<content>any other federal or state or local housing assistance provided to a person or to a property owner on behalf of a person, including rental vouchers, rental assistance, or rental subsidies from a nongovernmental organization.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c202/s202.024/b">
<num value="b">(b)</num>
<content>A property owners' association may not include or enforce a provision in a dedicatory instrument that prohibits or restricts a property owner from renting a dwelling to a person based on the person's method of payment.</content>
</subsection>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 987 (H.B. 1193), Sec. 1, eff. September 1, 2023.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t11/c203">
<num value="203">CHAPTER 203.</num>
<heading>ENFORCEMENT OF LAND USE RESTRICTIONS IN CERTAIN COUNTIES</heading>
<section identifier="/us/tx/pr/t11/c203/s203.001">
<num value="203.001">Sec. 203.001.</num>
<heading>APPLICABILITY OF CHAPTER</heading>
<content>This chapter applies only to a county with a population of more than 200,000.</content>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 712, Sec. 1, eff. June 18, 1987. Amended by Acts 1997, 75th Leg., ch. 274, Sec. 2, eff. May 26, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c203/s203.002">
<num value="203.002">Sec. 203.002.</num>
<heading>DEFINITION</heading>
<content>In this chapter, "restriction" means a limitation that affects the use to which real property may be put, fixes the distance at which buildings or other structures must be set back from property, street, or lot lines, affects the size of lots, or affects the size, type, or number of buildings or other structures that may be built on the property.</content>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 712, Sec. 1, eff. June 18, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c203/s203.003">
<num value="203.003">Sec. 203.003.</num>
<heading>COUNTY ATTORNEY AUTHORIZED TO ENFORCE RESTRICTIONS</heading>
<subsection identifier="/us/tx/pr/t11/c203/s203.003/a">
<num value="a">(a)</num>
<content>The county attorney may sue in a court of competent jurisdiction to enjoin or abate violations of a restriction contained or incorporated by reference in a properly recorded plan, plat, replat, or other instrument affecting a real property subdivision located in the county, regardless of the date on which the instrument was recorded.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c203/s203.003/b">
<num value="b">(b)</num>
<content>The county attorney may not enforce a restriction relating to race or any other restriction that violates the state or federal constitution.</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 712, Sec. 1, eff. June 18, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c203/s203.004">
<num value="203.004">Sec. 203.004.</num>
<heading>ADMINISTRATIVE FEE</heading>
<subsection identifier="/us/tx/pr/t11/c203/s203.004/a">
<num value="a">(a)</num>
<content>A complaint filed in connection with Section 203.003 must be accompanied by an administrative fee prescribed by the county commissioners court. The amount of the fee may not exceed the administrative costs to be incurred by the county in pursuing the matter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c203/s203.004/b">
<num value="b">(b)</num>
<content>The administrative fee shall be deposited in a special county fund. The fund may be used only to administer this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c203/s203.004/c">
<num value="c">(c)</num>
<content>The commissioners court may waive the administrative fee if the complainant files with the complaint a hardship affidavit in a form approved by the commissioners court.</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 712, Sec. 1, eff. June 18, 1987.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c203/s203.005">
<num value="203.005">Sec. 203.005.</num>
<heading>COURT COSTS AND ATTORNEY'S FEES</heading>
<subsection identifier="/us/tx/pr/t11/c203/s203.005/a">
<num value="a">(a)</num>
<content>The county may be awarded court costs and attorney's fees in a successful action under this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c203/s203.005/b">
<num value="b">(b)</num>
<content>If the court costs and attorney's fees awarded to the county, together with the administrative fee collected under Section 203.004, exceed the county's expenses in a successful action under this chapter, any portion of the excess that does not exceed the amount of the administrative fee collected by the county shall be refunded to the complainant.</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 712, Sec. 1, eff. June 18, 1987.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t11/c204">
<num value="204">CHAPTER 204.</num>
<heading>POWERS OF PROPERTY OWNERS' ASSOCIATION RELATING TO RESTRICTIVE COVENANTS IN CERTAIN SUBDIVISIONS</heading>
<section identifier="/us/tx/pr/t11/c204/s204.001">
<num value="204.001">Sec. 204.001.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c204/s204.001/1">
<num value="1">(1)</num>
<content>"Restrictions," "residential real estate subdivision," "subdivision," "owner," "real property records," and "lienholder" have the meanings assigned by Section 201.003.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.001/2">
<num value="2">(2)</num>
<content>"Dedicatory instrument," "petition," and "restrictive covenant" have the meanings assigned by Section 202.001.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.001/3">
<num value="3">(3)</num>
<content>"Regular assessment" means an assessment, charge, fee, or dues that each owner of property within a subdivision is required to pay to the property owners' association on a regular basis and that are to be used by the association for the benefit of the subdivision in accordance with the original, extended, added, or modified restrictions.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.001/4">
<num value="4">(4)</num>
<content>"Special assessment" means an assessment, charge, fee, or dues that each owner of property within a subdivision is required to pay to the property owners' association, after a vote of the membership, for the purpose of paying for the costs of capital improvements to the common areas that are incurred or will be incurred by the association during the fiscal year. A special assessment may be assessed before or after the association incurs the capital improvement costs.</content>
</paragraph>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 1040, Sec. 2, eff. Aug. 28, 1995.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c204/s204.002">
<num value="204.002">Sec. 204.002.</num>
<heading>APPLICATION</heading>
<subsection identifier="/us/tx/pr/t11/c204/s204.002/a">
<num value="a">(a)</num>
<chapeau>This chapter applies only to a residential real estate subdivision, excluding a condominium development governed by Title 7 that is located in whole or in part:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c204/s204.002/1">
<num value="1">(1)</num>
<content>in a county with a population of 3.3 million or more;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.002/2">
<num value="2">(2)</num>
<content>in a county with a population of not less than 315,000 and not more than 351,000 that is adjacent to the Gulf of Mexico and that is adjacent to a county having a population of 3.3 million or more; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.002/3">
<num value="3">(3)</num>
<chapeau>in a county with a population of 275,000 or more that:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c204/s204.002/A">
<num value="A">(A)</num>
<content>is adjacent to a county with a population of 3.3 million or more; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c204/s204.002/B">
<num value="B">(B)</num>
<content>contains part of a national forest.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c204/s204.002/b">
<num value="b">(b)</num>
<content>This chapter applies to a restriction regardless of its effective date.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c204/s204.002/c">
<num value="c">(c)</num>
<content>This chapter does not apply to portions of a subdivision that are zoned for or that contain a commercial structure, an industrial structure, an apartment complex, or a condominium development governed by Title 7, Property Code. For purposes of this subsection, "apartment complex" means two or more dwellings in one or more buildings that are owned by the same owner, located on the same lot or tract, and managed by the same owner, agent, or management company.</content>
</subsection>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 1040, Sec. 2, eff. Aug. 28, 1995. Amended by Acts 2003, 78th Leg., ch. 547, Sec. 1, eff. Sept. 1, 2003.
Amended by:
Acts 2005, 79th Leg., Ch. 1078 (H.B. 1632), Sec. 1, eff. September 1, 2005.
Acts 2011, 82nd Leg., R.S., Ch. 1163 (H.B. 2702), Sec. 110, eff. September 1, 2011.
Acts 2023, 88th Leg., R.S., Ch. 644 (H.B. 4559), Sec. 211, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c204/s204.003">
<num value="204.003">Sec. 204.003.</num>
<heading>APPLICATION OF PROVISIONS OF RESTRICTIVE COVENANTS IN CERTAIN CIRCUMSTANCES</heading>
<subsection identifier="/us/tx/pr/t11/c204/s204.003/a">
<num value="a">(a)</num>
<content>An express designation in a document creating restrictions applicable to a residential real estate subdivision that provides for the extension of, addition to, or modification of existing restrictions by a designated number of owners of real property in the subdivision prevails over the provisions of this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c204/s204.003/b">
<num value="b">(b)</num>
<chapeau>Notwithstanding Subsection (a), for a residential subdivision described by Subsection (c), the provisions of this chapter prevail over an express designation in a document described by Subsection (a) if:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c204/s204.003/1">
<num value="1">(1)</num>
<content>the designated number of owners of real property in the subdivision required for approval of an extension of, addition to, or modification of the document is more than 75 percent; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.003/2">
<num value="2">(2)</num>
<content>the designation prohibits the extension of, addition to, or modification of an existing restriction for a certain time period and that time period has not expired.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c204/s204.003/c">
<num value="c">(c)</num>
<content>Subsection (b) applies to a residential subdivision that is located in a county described by Section 204.002(a)(3) other than a gated community with private streets.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c204/s204.003/d">
<num value="d">(d)</num>
<content>A document creating restrictions that provides for the extension or renewal of restrictions and does not provide for modification or amendment of restrictions may be modified under this chapter, including modifying the provision that provides for extension or renewal of the restrictions.</content>
</subsection>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 1040, Sec. 2, eff. Aug. 28, 1995.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 767 (H.B. 3518), Sec. 1, eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 1367 (H.B. 3674), Sec. 5, eff. September 1, 2007.
Reenacted and amended by Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 20.004, eff. September 1, 2009.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c204/s204.004">
<num value="204.004">Sec. 204.004.</num>
<heading>PROPERTY OWNERS' ASSOCIATION</heading>
<subsection identifier="/us/tx/pr/t11/c204/s204.004/a">
<num value="a">(a)</num>
<content>A property owners' association is a designated representative of the owners of property in a subdivision and may be referred to as a "homeowners association," "community association," "civic association," "civic club," "association," "committee," or similar term contained in the restrictions. The membership of the association consists of the owners of property within the subdivision.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c204/s204.004/b">
<num value="b">(b)</num>
<content>The association must be nonprofit and may be incorporated as a Texas nonprofit corporation. An unincorporated association may incorporate under the Texas Nonprofit Corporation Law, as described by Section 1.008(d), Business Organizations Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c204/s204.004/c">
<num value="c">(c)</num>
<content>The association's board of directors or trustees must be elected or appointed in accordance with the applicable provisions of the restrictions and the association's articles of incorporation or bylaws.</content>
</subsection>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 1040, Sec. 2, eff. Aug. 28, 1995.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 291 (S.B. 1768), Sec. 11, eff. May 29, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c204/s204.005">
<num value="204.005">Sec. 204.005.</num>
<heading>EXTENSION OF, ADDITION TO, OR MODIFICATION OF EXISTING RESTRICTIONS</heading>
<subsection identifier="/us/tx/pr/t11/c204/s204.005/a">
<num value="a">(a)</num>
<content>A property owners' association has authority to approve and circulate a petition relating to the extension of, addition to, or modification of existing restrictions. A property owners' association is not required to comply with Sections 201.009-201.012.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c204/s204.005/b">
<num value="b">(b)</num>
<chapeau>A petition to extend, add to, or modify existing restrictions approved and circulated by a property owners' association is effective if:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c204/s204.005/1">
<num value="1">(1)</num>
<content>the petition is approved by the owners, excluding lienholders, contract purchasers, and the owners of mineral interests, of at least 75 percent of the real property in the subdivision or a smaller percentage required by the original dedicatory instrument; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.005/2">
<num value="2">(2)</num>
<content>the petition is filed as a dedicatory instrument with the county clerk of the county in which the subdivision is located.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c204/s204.005/c">
<num value="c">(c)</num>
<content>If a subdivision consisting of multiple sections, each with its own restrictions, is represented by a single property owners' association, the approval requirement may be satisfied by obtaining approval of at least 75 percent of the owners on a section-by-section basis or of the total number of properties in the property owners' association's jurisdiction.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c204/s204.005/d">
<num value="d">(d)</num>
<content>If approved, the petition is binding on all properties in the subdivision or section, as applicable.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c204/s204.005/e">
<num value="e">(e)</num>
<content>A property owners' association that circulates a petition must notify all record owners of property in the subdivision in writing of the proposed extension, addition to, or modification of the existing restrictions. Notice may be hand-delivered to residences within the subdivision or sent by regular mail to the owner's last known mailing address as reflected in the ownership records maintained by the property owners' association. The approval of multiple owners of a property may be reflected by the signature of a single co-owner.</content>
</subsection>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 1040, Sec. 2, eff. Aug. 28, 1995.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c204/s204.006">
<num value="204.006">Sec. 204.006.</num>
<heading>CREATION OF PROPERTY OWNERS' ASSOCIATION</heading>
<subsection identifier="/us/tx/pr/t11/c204/s204.006/a">
<num value="a">(a)</num>
<chapeau>If existing restrictions applicable to a subdivision do not provide for a property owners' association and require approval of more than 60 percent of the owners to add to or modify the original dedicating instrument, a petition to add to or modify the existing restrictions for the sole purpose of creating and operating a property owners' association with mandatory membership, mandatory regular or special assessments, and equivalent voting rights for each of the owners in the subdivision is effective if:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c204/s204.006/1">
<num value="1">(1)</num>
<content>a petition committee has been formed as prescribed by Section 201.005;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.006/2">
<num value="2">(2)</num>
<content>the petition is approved by the owners, excluding lienholders, contract purchasers, and the owners of mineral interests, of at least 60 percent of the real property in the subdivision; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.006/3">
<num value="3">(3)</num>
<content>the procedure employed in the circulation and approval of the petition to add to or amend the existing restrictions for the specified purpose complies with the requirements of this chapter.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c204/s204.006/b">
<num value="b">(b)</num>
<content>If the circulated petition is not approved by the required percentage of owners within one year of the creation of the petition committee, the petition is void and another petition committee may be formed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c204/s204.006/c">
<num value="c">(c)</num>
<content>If the petition is approved, the petition is binding on all properties in the subdivision or section, as applicable.</content>
</subsection>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 1040, Sec. 2, eff. Aug. 28, 1995.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c204/s204.007">
<num value="204.007">Sec. 204.007.</num>
<heading>EFFECT ON LIENHOLDERS</heading>
<subsection identifier="/us/tx/pr/t11/c204/s204.007/a">
<num value="a">(a)</num>
<content>Extensions of, additions to, or modifications of restrictions under this chapter are binding on a lienholder, excluding restrictions relating to regular or special assessment increases if the assessment is not subordinated to purchase money or home improvement liens.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c204/s204.007/b">
<num value="b">(b)</num>
<content>If the assessment lien of the property owners' association is subordinate to purchase money or home improvement liens, the lienholder is not entitled to notice of the proposed dedicatory instrument and the lienholder is bound by the instrument if the instrument is approved. If the assessment lien is not subordinated, a lienholder who is not a signatory to the dedicatory instrument and whose lien was established before the effective date of the dedicatory instrument is not bound by the portion of the dedicatory instrument that increases the amount of the regular or special assessment during any period of ownership by the lienholder.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c204/s204.007/c">
<num value="c">(c)</num>
<content>A person who acquires title to the property at a foreclosure sale or by deed from a foreclosing lienholder is bound by the assessment increase.</content>
</subsection>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 1040, Sec. 2, eff. Aug. 28, 1995.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c204/s204.008">
<num value="204.008">Sec. 204.008.</num>
<heading>METHOD OF ADOPTION</heading>
<chapeau>An extension, addition to, or modification of restrictions proposed by a property owners' association may be adopted:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c204/s204.008/1">
<num value="1">(1)</num>
<content>by a written ballot that states the substance of the amendment and specifies the date by which a ballot must be received to be counted;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.008/2">
<num value="2">(2)</num>
<content>at a meeting of the members represented by the property owners' association if written notice of the meeting stating the purpose of the meeting is delivered to each owner of property in the subdivision;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.008/3">
<num value="3">(3)</num>
<content>by door-to-door circulation of a petition by the property owners' association or a person authorized by the property owners' association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.008/4">
<num value="4">(4)</num>
<content>by a method permitted by the existing restrictions; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.008/5">
<num value="5">(5)</num>
<content>by a combination of the methods described by this section.</content>
</paragraph>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 1040, Sec. 2, eff. Aug. 28, 1995.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c204/s204.009">
<num value="204.009">Sec. 204.009.</num>
<heading>TEXAS NONPROFIT CORPORATIONS</heading>
<subsection identifier="/us/tx/pr/t11/c204/s204.009/a">
<num value="a">(a)</num>
<content>If the property owners' association is referenced in the existing, extended, added to, or modified restrictions as a Texas nonprofit corporation, the instrument contemplates the interaction of a nonprofit corporation, its articles of incorporation, and its bylaws.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c204/s204.009/b">
<num value="b">(b)</num>
<content>The property owners' association has the powers and shall promote the purposes enumerated in the articles of incorporation and bylaws. These powers and purposes necessarily modify the express provisions of the restrictions to include the referenced powers and purposes.</content>
</subsection>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 1040, Sec. 2, eff. Aug. 28, 1995.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c204/s204.010">
<num value="204.010">Sec. 204.010.</num>
<heading>POWERS OF PROPERTY OWNERS' ASSOCIATION</heading>
<subsection identifier="/us/tx/pr/t11/c204/s204.010/a">
<num value="a">(a)</num>
<chapeau>Unless otherwise provided by the restrictions or the association's articles of incorporation or bylaws, the property owners' association, acting through its board of directors or trustees, may:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c204/s204.010/1">
<num value="1">(1)</num>
<content>adopt and amend bylaws;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.010/2">
<num value="2">(2)</num>
<content>adopt and amend budgets for revenues, expenditures, and reserves and collect regular assessments or special assessments for common expenses from property owners;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.010/3">
<num value="3">(3)</num>
<content>hire and terminate managing agents and other employees, agents, and independent contractors;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.010/4">
<num value="4">(4)</num>
<content>institute, defend, intervene in, settle, or compromise litigation or administrative proceedings on matters affecting the subdivision;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.010/5">
<num value="5">(5)</num>
<content>make contracts and incur liabilities relating to the operation of the subdivision and the property owners' association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.010/6">
<num value="6">(6)</num>
<content>regulate the use, maintenance, repair, replacement, modification, and appearance of the subdivision;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.010/7">
<num value="7">(7)</num>
<content>make additional improvements to be included as a part of the common area;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.010/8">
<num value="8">(8)</num>
<content>grant easements, leases, licenses, and concessions through or over the common area;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.010/9">
<num value="9">(9)</num>
<content>impose and receive payments, fees, or charges for the use, rental, or operation of the common area and for services provided to property owners;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.010/10">
<num value="10">(10)</num>
<content>impose interest, late charges, and, if applicable, returned check charges for late payments of regular assessments or special assessments;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.010/11">
<num value="11">(11)</num>
<content>if notice and an opportunity to be heard are given, collect reimbursement of actual attorney's fees and other reasonable costs incurred by the property owners' association relating to violations of the subdivision's restrictions or the property owners' association's bylaws and rules;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.010/12">
<num value="12">(12)</num>
<content>charge costs to an owner's assessment account and collect the costs in any manner provided in the restrictions for the collection of assessments;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.010/13">
<num value="13">(13)</num>
<content>adopt and amend rules regulating the collection of delinquent assessments and the application of payments;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.010/14">
<num value="14">(14)</num>
<content>impose reasonable charges for preparing, recording, or copying amendments to the restrictions, resale certificates, or statements of unpaid assessments;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.010/15">
<num value="15">(15)</num>
<content>purchase insurance and fidelity bonds, including directors' and officers' liability insurance, that the board considers appropriate or necessary;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.010/16">
<num value="16">(16)</num>
<content>if the restrictions allow for an annual increase in the maximum regular assessment without a vote of the membership, assess the increase annually or accumulate and assess the increase after a number of years;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.010/17">
<num value="17">(17)</num>
<content>subject to the requirements of the Texas Nonprofit Corporation Law, as described by Section 1.008(d), Business Organizations Code, and by majority vote of its board of directors, indemnify a director or officer of the property owners' association who was, is, or may be made a named defendant or respondent in a proceeding because the person is or was a director;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.010/18">
<num value="18">(18)</num>
<chapeau>if the restrictions vest the architectural control authority in the property owners' association or if the authority is vested in the property owners' association under Section 204.011:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c204/s204.010/A">
<num value="A">(A)</num>
<content>implement written architectural control guidelines for its own use or record the guidelines in the real property records of the applicable county; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c204/s204.010/B">
<num value="B">(B)</num>
<content>modify the guidelines as the needs of the subdivision change;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.010/19">
<num value="19">(19)</num>
<content>exercise other powers conferred by the restrictions, its articles of incorporation, or its bylaws;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.010/20">
<num value="20">(20)</num>
<content>exercise other powers that may be exercised in this state by a corporation of the same type as the property owners' association; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.010/21">
<num value="21">(21)</num>
<content>exercise other powers necessary and proper for the governance and operation of the property owners' association.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c204/s204.010/b">
<num value="b">(b)</num>
<content>Powers enumerated by this section are in addition to any other powers granted to a property owners' association by this chapter or other law.</content>
</subsection>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 1040, Sec. 2, eff. Aug. 28, 1995.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 291 (S.B. 1768), Sec. 12, eff. May 29, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c204/s204.011">
<num value="204.011">Sec. 204.011.</num>
<heading>ARCHITECTURAL CONTROL COMMITTEE</heading>
<subsection identifier="/us/tx/pr/t11/c204/s204.011/a">
<num value="a">(a)</num>
<content>This section applies to restrictions providing for the creation and operation of an architectural control committee with the power to approve or deny applications for proposed original construction or modification of a building, structure, or improvement.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c204/s204.011/b">
<num value="b">(b)</num>
<chapeau>Unless the restrictions applicable to a residential real estate subdivision vest the architectural control committee authority in the property owners' association before either of the following events, the architectural control committee authority automatically vests in the property owners' association when:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c204/s204.011/1">
<num value="1">(1)</num>
<content>the term of the architectural control committee authority expires as prescribed by the restrictions;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.011/2">
<num value="2">(2)</num>
<content>a residence on the last available building site is completed and sold;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.011/3">
<num value="3">(3)</num>
<content>the person or entity designated as the architectural control committee in the restrictions assigns, in writing, authority to the property owners' association; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.011/4">
<num value="4">(4)</num>
<content>an assignee of the original holder abandons its authority for more than one year.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c204/s204.011/c">
<num value="c">(c)</num>
<chapeau>If the architectural control committee authority is transferred to the property owners' association, the authority is vested in the property owners' association until:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c204/s204.011/1">
<num value="1">(1)</num>
<content>the restrictions are modified to reflect otherwise;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.011/2">
<num value="2">(2)</num>
<content>the restrictions are terminated; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.011/3">
<num value="3">(3)</num>
<content>the property owners' association ceases to exist.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c204/s204.011/d">
<num value="d">(d)</num>
<chapeau>If existing restrictions applicable to a subdivision do not provide for a property owners' association and a property owners' association has not been formed, the architectural control committee authority over the entire subdivision vests in a civic association other than a property owners' association if:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c204/s204.011/1">
<num value="1">(1)</num>
<content>an architectural control committee created by the restrictions exercised the architectural control committee authority as provided by the restrictions over all the lots in the subdivision for at least 10 years and over a majority of the lots in the subdivision for at least 20 years;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.011/2">
<num value="2">(2)</num>
<content>an architectural control committee created by the restrictions assigned the civic association the architectural control committee authority over a majority of the lots in the subdivision;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.011/3">
<num value="3">(3)</num>
<content>the civic association was assigned the architectural control committee authority over a majority of the lots in the subdivision and has exercised that authority over all the lots in the subdivision for at least 10 years; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c204/s204.011/4">
<num value="4">(4)</num>
<chapeau>the architectural control committee authority has lapsed in the lots in which the civic association lacks authority, and the lapse is solely the result of:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c204/s204.011/A">
<num value="A">(A)</num>
<content>the automatic termination of the architectural control committee authority; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c204/s204.011/B">
<num value="B">(B)</num>
<content>the death of a member of the architectural control committee or another cause resulting from the inability to locate a member of the architectural control committee or the member's assigns.</content>
</subparagraph>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 1040, Sec. 2, eff. Aug. 28, 1995.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 711 (H.B. 2218), Sec. 1, eff. September 1, 2007.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t11/c205">
<num value="205">CHAPTER 205.</num>
<heading>RESTRICTIVE COVENANTS APPLICABLE TO REVISED SUBDIVISIONS IN CERTAIN COUNTIES</heading>
<section identifier="/us/tx/pr/t11/c205/s205.001">
<num value="205.001">Sec. 205.001.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c205/s205.001/1">
<num value="1">(1)</num>
<content>"Restrictions" and "subdivision" have the meanings assigned by Section 201.003.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c205/s205.001/2">
<num value="2">(2)</num>
<content>"Property owners' association" has the meaning assigned by Section 202.001.</content>
</paragraph>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 1040, Sec. 3, eff. Aug. 28, 1995. Amended by Acts 1997, 75th Leg., ch. 451, Sec. 4, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c205/s205.002">
<num value="205.002">Sec. 205.002.</num>
<heading>APPLICABILITY</heading>
<content>This chapter applies only to a county with a population of 65,000 or more.</content>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 1040, Sec. 3, eff. Aug. 28, 1995.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c205/s205.003">
<num value="205.003">Sec. 205.003.</num>
<heading>RESTRICTIONS APPLICABLE TO REVISED SUBDIVISIONS</heading>
<subsection identifier="/us/tx/pr/t11/c205/s205.003/a">
<num value="a">(a)</num>
<content>If all or part of a subdivision plat is revised to provide for another subdivision of land within all or part of the earlier subdivision, the restrictions that apply to the subdivision before the revision apply to the newly created subdivision.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c205/s205.003/b">
<num value="b">(b)</num>
<content>The property owners of the newly created subdivision must comply with the petition procedures prescribed by Chapter 204 to modify the restrictions.</content>
</subsection>
<sourceCredit>Added by Acts 1995, 74th Leg., ch. 1040, Sec. 3, eff. Aug. 28, 1995.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c205/s205.004">
<num value="205.004">Sec. 205.004.</num>
<heading>AMENDMENT OF RESTRICTIONS BY GOVERNING BODY OF PROPERTY OWNERS' ASSOCIATION</heading>
<subsection identifier="/us/tx/pr/t11/c205/s205.004/a">
<num value="a">(a)</num>
<content>The governing body of a property owners' association may amend the restrictions for the limited purpose of complying with United States Department of Housing and Urban Development or United States Department of Veterans Affairs requirements for subdivision property to qualify for insured or guaranteed mortgage loans.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c205/s205.004/b">
<num value="b">(b)</num>
<chapeau>An amendment adopted under this section must:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c205/s205.004/1">
<num value="1">(1)</num>
<content>indicate that the amendment is adopted under authority of this section by specifically referencing this section;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c205/s205.004/2">
<num value="2">(2)</num>
<content>be signed by a majority of the governing body; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c205/s205.004/3">
<num value="3">(3)</num>
<content>be filed in the real property records of the county in which the subdivision is located.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 451, Sec. 5, eff. Sept. 1, 1997.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t11/c206">
<num value="206">CHAPTER 206.</num>
<heading>EXTENSION OF RESTRICTIONS IMPOSING REGULAR ASSESSMENTS IN CERTAIN SUBDIVISIONS</heading>
<section identifier="/us/tx/pr/t11/c206/s206.001">
<num value="206.001">Sec. 206.001.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c206/s206.001/1">
<num value="1">(1)</num>
<content>"Community association" means an incorporated association created to enforce restrictions.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c206/s206.001/2">
<num value="2">(2)</num>
<content>"Dedicatory instrument" and "restrictive covenant" have the meanings assigned by Section 202.001.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c206/s206.001/3">
<num value="3">(3)</num>
<content>"Lienholder," "owner," "real property records," "residential real estate subdivision," and "restrictions" have the meanings assigned by Section 201.003.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c206/s206.001/4">
<num value="4">(4)</num>
<content>"Regular assessment" means an assessment, charge, fee, or dues that each owner is required to pay to the community association on a regular basis and that is to be used by the association for the benefit of the subdivision in accordance with the original, extended, added, or modified restrictions.</content>
</paragraph>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1249, Sec. 1, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c206/s206.002">
<num value="206.002">Sec. 206.002.</num>
<heading>APPLICABILITY OF CHAPTER</heading>
<chapeau>This chapter applies only to:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c206/s206.002/1">
<num value="1">(1)</num>
<chapeau>a residential real estate subdivision that:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c206/s206.002/A">
<num value="A">(A)</num>
<content>consists of at least 4,600 homes;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c206/s206.002/B">
<num value="B">(B)</num>
<content>is located in whole or in part in a municipality with a population of more than 1.6 million located in a county with a population of 2.8 million or more; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c206/s206.002/C">
<num value="C">(C)</num>
<content>has restrictions the terms of which are automatically extended but has a regular assessment that is established by a separate document that permits the assessment to expire and does not provide for extension of the term of the assessment; or</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c206/s206.002/2">
<num value="2">(2)</num>
<chapeau>a residential real estate subdivision that:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c206/s206.002/A">
<num value="A">(A)</num>
<content>consists of at least 750 homes;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c206/s206.002/B">
<num value="B">(B)</num>
<content>is located in two adjacent municipalities in a county with a population of 2.8 million or more; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c206/s206.002/C">
<num value="C">(C)</num>
<content>has use restrictions the terms of which are automatically extended but has a regular assessment that is established by two separate documents that permit the assessment to expire and do not provide for extension of the term of the assessment.</content>
</subparagraph>
</paragraph>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1249, Sec. 1, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 597, Sec. 1, eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c206/s206.003">
<num value="206.003">Sec. 206.003.</num>
<heading>EXTENSION OF RESTRICTION IMPOSING REGULAR ASSESSMENT</heading>
<subsection identifier="/us/tx/pr/t11/c206/s206.003/a">
<num value="a">(a)</num>
<content>A community association may approve and submit to a vote of the owners an extension of a restriction imposing a regular assessment.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c206/s206.003/b">
<num value="b">(b)</num>
<content>The extension of a restriction imposing a regular assessment is approved if a majority of the owners in the subdivision who vote on the issue in accordance with Section 206.004 vote in favor of the extension.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c206/s206.003/c">
<num value="c">(c)</num>
<content>An extension approved in accordance with this section and Section 206.004 applies to all real property in the subdivision, including residential and commercial property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c206/s206.003/d">
<num value="d">(d)</num>
<content>A document certifying that a majority of the owners voting on the issue approved the extension of the restriction must be recorded in the real property records of the county in which the subdivision is located.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1249, Sec. 1, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c206/s206.004">
<num value="206.004">Sec. 206.004.</num>
<heading>METHOD OF VOTING</heading>
<subsection identifier="/us/tx/pr/t11/c206/s206.004/a">
<num value="a">(a)</num>
<chapeau>An extension of a restriction that imposes a regular assessment must be voted on:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c206/s206.004/1">
<num value="1">(1)</num>
<content>by a written ballot that states the substance of the amendment extending the restriction and specifies the date by which the community association must receive a ballot for the ballot to be counted; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c206/s206.004/2">
<num value="2">(2)</num>
<content>at a meeting of the property owners in the subdivision.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c206/s206.004/b">
<num value="b">(b)</num>
<chapeau>The community association shall provide for mailing to each owner, as applicable:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c206/s206.004/1">
<num value="1">(1)</num>
<content>the ballot under Subsection (a)(1); or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c206/s206.004/2">
<num value="2">(2)</num>
<content>notice of the meeting under Subsection (a)(2) that states the purpose of the meeting.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c206/s206.004/c">
<num value="c">(c)</num>
<content>In conjunction with a vote by ballot or at a meeting under Subsection (a), the community association may provide for circulation of a petition in the subdivision.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c206/s206.004/d">
<num value="d">(d)</num>
<content>The vote of multiple owners of a property may be reflected by the signature or vote of one of the owners.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c206/s206.004/e">
<num value="e">(e)</num>
<content>The community association shall record a copy of the ballot or petition in the real property records in the county in which the subdivision is located prior to submission of the extension to a vote of the owners.</content>
</subsection>
<sourceCredit>Added by Acts 1997, 75th Leg., ch. 1249, Sec. 1, eff. Sept. 1, 1997.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t11/c207">
<num value="207">CHAPTER 207.</num>
<heading>DISCLOSURE OF INFORMATION BY PROPERTY OWNERS' ASSOCIATIONS</heading>
<section identifier="/us/tx/pr/t11/c207/s207.001">
<num value="207.001">Sec. 207.001.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c207/s207.001/1">
<num value="1">(1)</num>
<content>"Restrictions" has the meaning assigned by Section 201.003.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c207/s207.001/2">
<num value="2">(2)</num>
<content>"Dedicatory instrument," "property owners' association," and "restrictive covenant" have the meanings assigned by Section 209.002.</content>
<continuation>(2-a) "Management company" has the meaning assigned by Section 209.002.</continuation>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c207/s207.001/3">
<num value="3">(3)</num>
<content>"Owner" means a person who owns record title to property in a subdivision or the personal representative of an individual who owns record title to property in a subdivision.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c207/s207.001/4">
<num value="4">(4)</num>
<content>"Regular assessment" and "special assessment" have the meanings assigned by Section 204.001.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c207/s207.001/5">
<num value="5">(5)</num>
<content>"Resale certificate" means a written statement issued, signed, and dated by an officer or authorized agent of a property owners' association that contains the information specified by Section 207.003(b).</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c207/s207.001/6">
<num value="6">(6)</num>
<content>"Subdivision" means all land that has been divided into two or more parts and that is or was burdened by restrictions limiting at least the majority of the land area burdened by restrictions, excluding streets and public areas, to residential use only, if the instrument or instruments creating the restrictions are recorded in the deed or real property records of a county.</content>
</paragraph>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1198, Sec. 1, eff. Sept. 1, 1999.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1183 (S.B. 1168), Sec. 2, eff. September 1, 2015.
Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 5, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c207/s207.002">
<num value="207.002">Sec. 207.002.</num>
<heading>APPLICABILITY</heading>
<subsection identifier="/us/tx/pr/t11/c207/s207.002/a">
<num value="a">(a)</num>
<content>This chapter applies to a subdivision with a property owners' association that is entitled to levy regular or special assessments.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c207/s207.002/b">
<num value="b">(b)</num>
<content>This chapter does not apply to a condominium council of owners governed by Chapter 81 or a condominium unit owners' association governed by Chapter 82.</content>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1198, Sec. 1, eff. Sept. 1, 1999.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1183 (S.B. 1168), Sec. 3, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c207/s207.003">
<num value="207.003">Sec. 207.003.</num>
<heading>DELIVERY OF SUBDIVISION INFORMATION TO OWNER</heading>
<subsection identifier="/us/tx/pr/t11/c207/s207.003/a">
<num value="a">(a)</num>
<chapeau>Not later than the 10th business day after the date a written request for subdivision information is received from an owner or the owner's agent, a purchaser of property in a subdivision or the purchaser's agent, or a title insurance company or its agent acting on behalf of the owner or purchaser and the evidence of the requestor's authority to order a resale certificate under Subsection (a-1) is received and verified, the property owners' association shall deliver to the owner or the owner's agent, the purchaser or the purchaser's agent, or the title insurance company or its agent:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c207/s207.003/1">
<num value="1">(1)</num>
<content>a current copy of the restrictions applying to the subdivision;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c207/s207.003/2">
<num value="2">(2)</num>
<content>a current copy of the bylaws and rules of the property owners' association; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c207/s207.003/3">
<num value="3">(3)</num>
<content>a resale certificate prepared not earlier than the 60th day before the date the certificate is delivered that complies with Subsection (b).</content>
<continuation>(a-1) For a request from a purchaser of property in a subdivision or the purchaser's agent, the property owners' association may require the purchaser or purchaser's agent to provide to the association, before the association begins the process of preparing or delivers the items listed in Subsection (a), reasonable evidence that the purchaser has a contractual or other right to acquire property in the subdivision.</continuation>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c207/s207.003/b">
<num value="b">(b)</num>
<chapeau>A resale certificate under Subsection (a) must contain:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c207/s207.003/1">
<num value="1">(1)</num>
<content>a statement of any right of first refusal, other than a right of first refusal that is prohibited by statute, and any other restraint contained in the restrictions or restrictive covenants that restricts the owner's right to transfer the owner's property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c207/s207.003/2">
<num value="2">(2)</num>
<content>the frequency and amount of any regular assessments;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c207/s207.003/3">
<num value="3">(3)</num>
<content>the amount and purpose of any special assessment that has been approved before and is due after the resale certificate is delivered;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c207/s207.003/4">
<num value="4">(4)</num>
<content>the total of all amounts due and unpaid to the property owners' association that are attributable to the owner's property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c207/s207.003/5">
<num value="5">(5)</num>
<content>capital expenditures, if any, approved by the property owners' association for the property owners' association's current fiscal year;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c207/s207.003/6">
<num value="6">(6)</num>
<content>the amount of reserves, if any, for capital expenditures;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c207/s207.003/7">
<num value="7">(7)</num>
<content>the property owners' association's current operating budget and balance sheet;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c207/s207.003/8">
<num value="8">(8)</num>
<content>the total of any unsatisfied judgments against the property owners' association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c207/s207.003/9">
<num value="9">(9)</num>
<content>the style and cause number of any pending lawsuit in which the property owners' association is a party, other than a lawsuit relating to unpaid ad valorem taxes of an individual member of the association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c207/s207.003/10">
<num value="10">(10)</num>
<content>a copy of a certificate of insurance showing the property owners' association's property and liability insurance relating to the common areas and common facilities;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c207/s207.003/11">
<num value="11">(11)</num>
<content>a description of any conditions on the owner's property that the property owners' association board has actual knowledge are in violation of the restrictions applying to the subdivision or the bylaws or rules of the property owners' association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c207/s207.003/12">
<num value="12">(12)</num>
<content>a summary or copy of notices received by the property owners' association from any governmental authority regarding health or housing code violations existing on the preparation date of the certificate relating to the owner's property or any common areas or common facilities owned or leased by the property owners' association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c207/s207.003/13">
<num value="13">(13)</num>
<content>the amount of any administrative transfer fee charged by the property owners' association for a change of ownership of property in the subdivision;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c207/s207.003/14">
<num value="14">(14)</num>
<content>the name, mailing address, and telephone number of the property owners' association's managing agent, if any;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c207/s207.003/15">
<num value="15">(15)</num>
<content>a statement indicating whether the restrictions allow foreclosure of a property owners' association's lien on the owner's property for failure to pay assessments; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c207/s207.003/16">
<num value="16">(16)</num>
<content>a statement of all fees associated with the transfer of ownership, including a description of each fee, to whom each fee is paid, and the amount of each fee.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c207/s207.003/c">
<num value="c">(c)</num>
<content>A property owners' association may charge a reasonable and necessary fee, not to exceed $375, to assemble, copy, and deliver the information required by this section and may charge a reasonable and necessary fee, not to exceed $75, to prepare and deliver an update of a resale certificate under Subsection (f).</content>
<continuation>(c-1) The property owners' association may require payment before beginning the process of providing a resale certificate but may not process a payment for a resale certificate until the certificate is available for delivery. The association may not charge a fee if the certificate is not provided in the time prescribed by Subsection (a).</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t11/c207/s207.003/d">
<num value="d">(d)</num>
<content>The property owners' association shall deliver the information required by Subsection (a) or (f) to the person specified in the written request. A written request that does not specify the name and location to which the information is to be sent is not effective. The property owners' association may deliver the information required by Subsection (a) and any update to the resale certificate required by Subsection (f) by mail, hand delivery, or alternative delivery means specified in the written request.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c207/s207.003/e">
<num value="e">(e)</num>
<content>Unless required by a dedicatory instrument, neither a property owners' association or its agent is required to inspect a property before issuing a resale certificate or an update to a resale certificate.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c207/s207.003/f">
<num value="f">(f)</num>
<chapeau>Not later than the seventh business day after the date a written request for an update of a resale certificate delivered under Subsection (a) is received from an owner, owner's agent, or title insurance company or its agent acting on behalf of the owner, the property owners' association shall deliver to the owner, owner's agent, or title insurance company or its agent an updated resale certificate that contains the following information:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c207/s207.003/1">
<num value="1">(1)</num>
<content>if a right of first refusal or other restraint on sale is contained in the restrictions, a statement of whether the property owners' association waives the restraint on sale;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c207/s207.003/2">
<num value="2">(2)</num>
<content>the status of any unpaid special assessments, dues, or other payments attributable to the owner's property; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c207/s207.003/3">
<num value="3">(3)</num>
<content>any changes to the information provided in the resale certificate issued under Subsection (a).</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c207/s207.003/g">
<num value="g">(g)</num>
<content>Requests for an updated resale certificate pursuant to Subsection (f) must be made within 180 days of the date a resale certificate is issued under Subsection (a). The update request may be made only by the party requesting the original resale certificate.</content>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1198, Sec. 1, eff. Sept. 1, 1999.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 147 (S.B. 1918), Sec. 1, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 1142 (H.B. 1821), Sec. 4, eff. January 1, 2012.
Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 6, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c207/s207.004">
<num value="207.004">Sec. 207.004.</num>
<heading>OWNER'S REMEDIES FOR FAILURE BY PROPERTY OWNERS' ASSOCIATION TO TIMELY DELIVER INFORMATION</heading>
<subsection identifier="/us/tx/pr/t11/c207/s207.004/a">
<num value="a">(a)</num>
<content>If a property owners' association does not timely deliver information in accordance with Section 207.003, the owner, owner's agent, or title insurance company or its agent acting on behalf of the owner may submit a second request for the information.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c207/s207.004/b">
<num value="b">(b)</num>
<chapeau>If a property owners' association fails to deliver the information required under Section 207.003 before the fifth business day after the second request for the information was mailed by certified mail, return receipt requested, or hand delivered, evidenced by receipt, the owner:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c207/s207.004/1">
<num value="1">(1)</num>
<chapeau>may seek one or any combination of the following:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c207/s207.004/A">
<num value="A">(A)</num>
<content>a court order directing the property owners' association to furnish the required information;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c207/s207.004/B">
<num value="B">(B)</num>
<content>a judgment against the property owners' association for not more than $5,000;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c207/s207.004/C">
<num value="C">(C)</num>
<content>a judgment against the property owners' association for court costs and reasonable attorney's fees; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c207/s207.004/D">
<num value="D">(D)</num>
<content>a judgment authorizing the owner or the owner's assignee to deduct the amounts awarded under Paragraphs (B) and (C) from any future regular or special assessments payable to the property owners' association; and</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c207/s207.004/2">
<num value="2">(2)</num>
<content>may provide a buyer under contract to purchase the owner's property an affidavit that states that the owner, owner's agent, or title insurance company or its agent acting on behalf of the owner made, in accordance with this chapter, two written requests to the property owners' association for the information described in Section 207.003 and that the association did not timely provide the information.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c207/s207.004/c">
<num value="c">(c)</num>
<chapeau>If the owner provides a buyer under contract to purchase the owner's property an affidavit in accordance with Subsection (b)(2):</chapeau>
<paragraph identifier="/us/tx/pr/t11/c207/s207.004/1">
<num value="1">(1)</num>
<chapeau>the buyer, lender, or title insurance company or its agent is not liable to the property owners' association for:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c207/s207.004/A">
<num value="A">(A)</num>
<content>any money that is due and unpaid to the property owners' association on the date the affidavit was prepared; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c207/s207.004/B">
<num value="B">(B)</num>
<content>any debt to the property owners' association or claim by the property owners' association that accrued before the date the affidavit was prepared; and</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c207/s207.004/2">
<num value="2">(2)</num>
<content>the property owners' association's lien to secure the amounts due the property owners' association on the owner's property on the date the affidavit was prepared shall automatically terminate.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1198, Sec. 1, eff. Sept. 1, 1999.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 7, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c207/s207.005">
<num value="207.005">Sec. 207.005.</num>
<heading>EFFECT OF RESALE CERTIFICATE; LIABILITY</heading>
<subsection identifier="/us/tx/pr/t11/c207/s207.005/a">
<num value="a">(a)</num>
<content>A property owners' association may not deny the validity of any statement in the resale certificate. The property owners' association's lien to secure undisclosed amounts due the property owners' association on the date the resale certificate is prepared shall automatically terminate as a lien securing the undisclosed amount. A buyer, buyer's agent, owner, owner's agent, lender, and title insurance company and its agent are not liable for any debt or claim existing on the preparation date of the resale certificate that is not disclosed in the resale certificate.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c207/s207.005/b">
<num value="b">(b)</num>
<chapeau>A resale certificate does not affect:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c207/s207.005/1">
<num value="1">(1)</num>
<content>the right of a property owners' association to recover debts or claims that arise or become due after the date the resale certificate is prepared; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c207/s207.005/2">
<num value="2">(2)</num>
<content>a lien on a property securing payment of future assessments held by the property owners' association.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c207/s207.005/c">
<num value="c">(c)</num>
<content>The owner's agent and the title insurance company and its agent are not liable to a buyer for any delay or failure by the property owners' association in delivering the information required by Section 207.003.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c207/s207.005/d">
<num value="d">(d)</num>
<content>Except as provided by Section 207.004, the property owners' association is not liable to an owner selling property in the subdivision for delay or failure to deliver the information required by Section 207.003. An officer or agent of the property owners' association is not liable for a delay or failure to furnish a resale certificate.</content>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 1198, Sec. 1, eff. Sept. 1, 1999.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c207/s207.006">
<num value="207.006">Sec. 207.006.</num>
<heading>ONLINE SUBDIVISION INFORMATION REQUIRED</heading>
<subsection identifier="/us/tx/pr/t11/c207/s207.006/a">
<num value="a">(a)</num>
<chapeau>This section applies only to:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c207/s207.006/1">
<num value="1">(1)</num>
<content>the property owners' association of a subdivision composed of at least 60 lots; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c207/s207.006/2">
<num value="2">(2)</num>
<content>a property owners' association that has contracted with a management company.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c207/s207.006/b">
<num value="b">(b)</num>
<chapeau>A property owners' association to which this section applies shall make the current version of the association's dedicatory instruments relating to the association or subdivision and filed in the county deed records available on an Internet website:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c207/s207.006/1">
<num value="1">(1)</num>
<content>maintained by the association or a management company on behalf of the association; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c207/s207.006/2">
<num value="2">(2)</num>
<content>available to association members.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 1142 (H.B. 1821), Sec. 5, eff. January 1, 2012.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 8, eff. September 1, 2021.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t11/c208">
<num value="208">CHAPTER 208.</num>
<heading>AMENDMENT AND TERMINATION OF RESTRICTIVE COVENANTS IN HISTORIC NEIGHBORHOODS</heading>
<section identifier="/us/tx/pr/t11/c208/s208.001">
<num value="208.001">Sec. 208.001.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c208/s208.001/1">
<num value="1">(1)</num>
<content>"Owner" and "real property records" have the meanings assigned by Section 201.003.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c208/s208.001/2">
<num value="2">(2)</num>
<content>"Dedicatory instrument," "property owners' association," "petition," and "restrictive covenant" have the meanings assigned by Section 202.001.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c208/s208.001/3">
<num value="3">(3)</num>
<content>"Regular assessment" and "special assessment" have the meanings assigned by Section 204.001.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c208/s208.001/4">
<num value="4">(4)</num>
<content>"Apartment complex" has the meaning assigned by Section 204.002(c).</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c208/s208.001/5">
<num value="5">(5)</num>
<chapeau>"Historic neighborhood" means:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c208/s208.001/A">
<num value="A">(A)</num>
<content>an area incorporated as a separate municipality before 1900 and subsequently annexed into another municipality;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c208/s208.001/B">
<num value="B">(B)</num>
<content>an area described by a municipal map or subdivision plat filed in real property records of the county in which the area is located before 1900; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c208/s208.001/C">
<num value="C">(C)</num>
<content>an area designated as a historic district or similar designation by the municipality in which the area is located, the Texas Historical Commission, or the National Register of Historic Places.</content>
</subparagraph>
</paragraph>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 871, Sec. 2, eff. June 18, 1999. Renumbered from Sec. 207.001 by Acts 2001, 77th Leg., ch. 1420, Sec. 21.001(98), eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c208/s208.002">
<num value="208.002">Sec. 208.002.</num>
<heading>APPLICABILITY</heading>
<subsection identifier="/us/tx/pr/t11/c208/s208.002/a">
<num value="a">(a)</num>
<content>This chapter applies only to a historic neighborhood that is located in whole or in part in a municipality with a population of 1.6 million or more located in a county with a population of 2.8 million or more.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c208/s208.002/b">
<num value="b">(b)</num>
<content>This chapter applies to a restrictive covenant regardless of the date on which it was created.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c208/s208.002/c">
<num value="c">(c)</num>
<content>This chapter applies to property in the area of a historic neighborhood that is zoned for or that contains a commercial structure, an industrial structure, an apartment complex, or a condominium development covered by Title 7 only if the owner of the property signed a restrictive covenant that includes the property in a common scheme for preservation of historic property as described by Section 208.004.</content>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 871, Sec. 2, eff. June 18, 1999. Renumbered from Sec. 207.002 and amended by Acts 2001, 77th Leg., ch. 1420, Sec. 21.001(98), 21,002(17), eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c208/s208.003">
<num value="208.003">Sec. 208.003.</num>
<heading>HISTORIC NEIGHBORHOOD PRESERVATION ASSOCIATION</heading>
<subsection identifier="/us/tx/pr/t11/c208/s208.003/a">
<num value="a">(a)</num>
<chapeau>A historic neighborhood preservation association must:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c208/s208.003/1">
<num value="1">(1)</num>
<content>be a Texas nonprofit corporation or limited liability company organized, in part, to encourage the preservation of property in a historic neighborhood; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c208/s208.003/2">
<num value="2">(2)</num>
<content>open its membership to all owners of property in the historic neighborhood.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c208/s208.003/b">
<num value="b">(b)</num>
<content>A historic neighborhood preservation association may be composed of only a portion of the owners of property in the historic neighborhood.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c208/s208.003/c">
<num value="c">(c)</num>
<content>A historic neighborhood preservation association may be a property owners' association or an organization that is qualified as a charitable organization under Section 501(c)(3) of the Internal Revenue Code of 1986.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c208/s208.003/d">
<num value="d">(d)</num>
<content>A statement in the articles of incorporation or association, bylaws, regulations, or operating agreement of the historic neighborhood preservation association is prima facie evidence of compliance with Subsection (a).</content>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 871, Sec. 2, eff. June 18, 1999. Renumbered from Sec. 207.003 by Acts 2001, 77th Leg., ch. 1420, Sec. 21.001(98), eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c208/s208.004">
<num value="208.004">Sec. 208.004.</num>
<heading>COMMON SCHEME FOR PRESERVATION OF PROPERTY IN HISTORIC NEIGHBORHOOD</heading>
<subsection identifier="/us/tx/pr/t11/c208/s208.004/a">
<num value="a">(a)</num>
<chapeau>A common scheme for preservation of historic property exists in a historic neighborhood if:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c208/s208.004/1">
<num value="1">(1)</num>
<content>the restrictive covenants were created by individual dedicatory instruments signed by an owner of one or more separately owned parcels or tracts in the historic neighborhood; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c208/s208.004/2">
<num value="2">(2)</num>
<content>the restrictive covenants authorize a historic neighborhood preservation association to enforce the restrictive covenants.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c208/s208.004/b">
<num value="b">(b)</num>
<content>A common scheme for preservation of historic property does not include property that is not subject to restrictive covenants that authorize a historic neighborhood preservation association to enforce the restrictive covenants.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c208/s208.004/c">
<num value="c">(c)</num>
<content>Restrictive covenants included in a common scheme for preservation of historic property exist for the benefit of all owners of property subject to the common scheme for preservation as if each owner were referenced in each dedicatory instrument.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c208/s208.004/d">
<num value="d">(d)</num>
<content>Each owner of property subject to a common scheme for preservation of historic property may enforce restrictive covenants on other property included in the common scheme for preservation.</content>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 871, Sec. 2, eff. June 18, 1999. Renumbered from Sec. 207.004 by Acts 2001, 77th Leg., ch. 1420, Sec. 21.001(98), eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c208/s208.005">
<num value="208.005">Sec. 208.005.</num>
<heading>AMENDMENT OR TERMINATION OF RESTRICTIVE COVENANTS UNDER COMMON SCHEME FOR PRESERVATION</heading>
<subsection identifier="/us/tx/pr/t11/c208/s208.005/a">
<num value="a">(a)</num>
<content>A restrictive covenant applicable to property that is included in a common scheme for preservation of historic property may not be amended or terminated except as provided by this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c208/s208.005/b">
<num value="b">(b)</num>
<content>A historic neighborhood preservation association may approve and submit to a vote of the owners of property that is included in a common scheme for preservation of historic property an amendment of the restrictive covenants or the termination of all or part of the restrictive covenants included in the common scheme for preservation of historic property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c208/s208.005/c">
<num value="c">(c)</num>
<content>The amendment or termination of a restrictive covenant is effective and applies to each separately owned parcel or tract subject to the common scheme for preservation of historic property if the owners of at least 75 percent of the parcels or tracts who vote on the issue in accordance with Section 208.006 vote in favor of the amendment or termination of the restrictive covenant.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c208/s208.005/d">
<num value="d">(d)</num>
<content>A document certifying that 75 percent of the owners voting on the issue approved the amendment or termination of the restrictive covenant must be recorded by the historic neighborhood preservation association in the real property records of the county in which the historic neighborhood is located. The document is prima facie evidence that the requisite percentage of votes was attained and the required formalities for the action were taken.</content>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 871, Sec. 2, eff. June 18, 1999. Renumbered from Sec. 207.005 and amended by Acts 2001, 77th Leg., ch. 1420, Sec. 21.001(98), 21.002(18), eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c208/s208.006">
<num value="208.006">Sec. 208.006.</num>
<heading>METHOD OF VOTING</heading>
<subsection identifier="/us/tx/pr/t11/c208/s208.006/a">
<num value="a">(a)</num>
<chapeau>An amendment or termination of a restrictive covenant must be voted on:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c208/s208.006/1">
<num value="1">(1)</num>
<content>by a written ballot that states the substance of the amendment or termination of the restrictive covenant and specifies the date by which the historic neighborhood preservation association must receive a ballot for the ballot to be counted;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c208/s208.006/2">
<num value="2">(2)</num>
<content>at a meeting of the historic neighborhood preservation association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c208/s208.006/3">
<num value="3">(3)</num>
<content>by circulation of a petition by the historic neighborhood preservation association or a person authorized by the historic neighborhood preservation association; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c208/s208.006/4">
<num value="4">(4)</num>
<content>by any combination of methods described by this subsection.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c208/s208.006/b">
<num value="b">(b)</num>
<chapeau>If the vote occurs at a meeting of the historic neighborhood preservation association under Subsection (a)(2), the historic neighborhood preservation association shall:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c208/s208.006/1">
<num value="1">(1)</num>
<content>before the meeting, deliver written notice of the meeting stating the purpose of the meeting to each owner of property subject to the common scheme for preservation of historic property; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c208/s208.006/2">
<num value="2">(2)</num>
<content>provide each owner of property subject to the common scheme for preservation with the opportunity to appear and vote at the meeting.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c208/s208.006/c">
<num value="c">(c)</num>
<chapeau>The historic neighborhood preservation association shall provide for the mailing to each owner, as applicable:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c208/s208.006/1">
<num value="1">(1)</num>
<content>the ballot under Subsection (a)(1);</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c208/s208.006/2">
<num value="2">(2)</num>
<content>notice of the meeting under Subsection (a)(2); or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c208/s208.006/3">
<num value="3">(3)</num>
<content>the petition under Subsection (a)(3).</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c208/s208.006/d">
<num value="d">(d)</num>
<content>The vote of multiple owners of a property may be reflected by signature or vote of one of the owners.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c208/s208.006/e">
<num value="e">(e)</num>
<content>The historic neighborhood preservation association shall record a copy of the ballot or petition, as applicable, in the real property records of the county in which the historic neighborhood is located before the vote of the owners.</content>
</subsection>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 871, Sec. 2, eff. June 18, 1999. Renumbered from Sec. 207.006 by Acts 2001, 77th Leg., ch. 1420, Sec. 21.001(98), eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c208/s208.007">
<num value="208.007">Sec. 208.007.</num>
<heading>REGULAR AND SPECIAL ASSESSMENTS</heading>
<content>The procedure established by this chapter for the amendment of restrictive covenants may not be used to establish a regular or special assessment.</content>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 871, Sec. 2, eff. June 18, 1999. Renumbered from Sec. 207.007 by Acts 2001, 77th Leg., ch. 1420, Sec. 21.001(98), eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c208/s208.008">
<num value="208.008">Sec. 208.008.</num>
<heading>BUILDING LINES</heading>
<content>The procedure established by this chapter for the amendment of restrictive covenants may not be used to modify a building line established by a restrictive covenant, municipal map, or subdivision plat.</content>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 871, Sec. 2, eff. June 18, 1999. Renumbered from Sec. 207.008 by Acts 2001, 77th Leg., ch. 1420, Sec. 21.001(98), eff. Sept. 1, 2001.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c208/s208.009">
<num value="208.009">Sec. 208.009.</num>
<heading>DEFENSE TO ENFORCEMENT OF RESTRICTIVE COVENANT</heading>
<chapeau>An owner may not assert as a defense to the enforcement of a restrictive covenant that is part of a common scheme for preservation of historic property that the owner or a predecessor in title signed a blank signature page or similar procedural defect if the signature page was attached to a dedicatory instrument adopted by a historic neighborhood preservation association and:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c208/s208.009/1">
<num value="1">(1)</num>
<content>the dedicatory instrument has been recorded for more than two years; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c208/s208.009/2">
<num value="2">(2)</num>
<content>the restrictive covenant is referenced in the owner's title insurance policy obtained by the owner when the property was purchased.</content>
</paragraph>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 871, Sec. 2, eff. June 18, 1999. Renumbered from Sec. 207.009 by Acts 2001, 77th Leg., ch. 1420, Sec. 21.001(98), eff. Sept. 1, 2001.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t11/c209">
<num value="209">CHAPTER 209.</num>
<heading>TEXAS RESIDENTIAL PROPERTY OWNERS PROTECTION ACT</heading>
<section identifier="/us/tx/pr/t11/c209/s209.001">
<num value="209.001">Sec. 209.001.</num>
<heading>SHORT TITLE</heading>
<content>This chapter may be cited as the Texas Residential Property Owners Protection Act.</content>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 926, Sec. 1, eff. Jan. 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.002">
<num value="209.002">Sec. 209.002.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.002/1">
<num value="1">(1)</num>
<content>"Assessment" means a regular assessment, special assessment, or other amount a property owner is required to pay a property owners' association under the dedicatory instrument or by law.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.002/2">
<num value="2">(2)</num>
<content>"Board" means the governing body of a property owners' association.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.002/3">
<num value="3">(3)</num>
<content>"Declaration" means an instrument filed in the real property records of a county that includes restrictive covenants governing a residential subdivision.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.002/4">
<num value="4">(4)</num>
<content>"Dedicatory instrument" means each governing instrument covering the establishment, maintenance, and operation of a residential subdivision. The term includes restrictions or similar instruments subjecting property to restrictive covenants, bylaws, or similar instruments governing the administration or operation of a property owners' association, to properly adopted rules and regulations of the property owners' association, and to all lawful amendments to the covenants, bylaws, rules, or regulations.</content>
<continuation>(4-a) "Development period" means a period stated in a declaration during which a declarant reserves:</continuation>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.002/A">
<num value="A">(A)</num>
<content>a right to facilitate the development, construction, and marketing of the subdivision; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.002/B">
<num value="B">(B)</num>
<content>a right to direct the size, shape, and composition of the subdivision.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.002/5">
<num value="5">(5)</num>
<content>"Lot" means any designated parcel of land located in a residential subdivision, including any improvements on the designated parcel.</content>
<continuation>(5-a) "Management company" means a person or entity established or contracted to provide management or administrative services on behalf of a property owners' association.</continuation>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.002/6">
<num value="6">(6)</num>
<content>"Owner" means a person who holds record title to property in a residential subdivision and includes the personal representative of a person who holds record title to property in a residential subdivision.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.002/7">
<num value="7">(7)</num>
<chapeau>"Property owners' association" or "association" means an incorporated or unincorporated association that:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.002/A">
<num value="A">(A)</num>
<content>is designated as the representative of the owners of property in a residential subdivision;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.002/B">
<num value="B">(B)</num>
<content>has a membership primarily consisting of the owners of the property covered by the dedicatory instrument for the residential subdivision; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.002/C">
<num value="C">(C)</num>
<content>manages or regulates the residential subdivision for the benefit of the owners of property in the residential subdivision.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.002/8">
<num value="8">(8)</num>
<content>"Regular assessment" means an assessment, a charge, a fee, or dues that each owner of property within a residential subdivision is required to pay to the property owners' association on a regular basis and that is designated for use by the property owners' association for the benefit of the residential subdivision as provided by the restrictions.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.002/9">
<num value="9">(9)</num>
<chapeau>"Residential subdivision" or "subdivision" means a subdivision, planned unit development, townhouse regime, or similar planned development in which all land has been divided into two or more parts and is subject to restrictions that:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.002/A">
<num value="A">(A)</num>
<content>limit a majority of the land subject to the dedicatory instruments, excluding streets, common areas, and public areas, to residential use for single-family homes, townhomes, or duplexes only;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.002/B">
<num value="B">(B)</num>
<content>are recorded in the real property records of the county in which the residential subdivision is located; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.002/C">
<num value="C">(C)</num>
<content>require membership in a property owners' association that has authority to impose regular or special assessments on the property in the subdivision.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.002/10">
<num value="10">(10)</num>
<content>"Restrictions" means one or more restrictive covenants contained or incorporated by reference in a properly recorded map, plat, replat, declaration, or other instrument filed in the real property records or map or plat records. The term includes any amendment or extension of the restrictions.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.002/11">
<num value="11">(11)</num>
<content>"Restrictive covenant" means any covenant, condition, or restriction contained in a dedicatory instrument, whether mandatory, prohibitive, permissive, or administrative.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.002/12">
<num value="12">(12)</num>
<chapeau>"Special assessment" means an assessment, a charge, a fee, or dues, other than a regular assessment, that each owner of property located in a residential subdivision is required to pay to the property owners' association, according to procedures required by the dedicatory instruments, for:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.002/A">
<num value="A">(A)</num>
<content>defraying, in whole or in part, the cost, whether incurred before or after the assessment, of any construction or reconstruction, unexpected repair, or replacement of a capital improvement in common areas owned by the property owners' association, including the necessary fixtures and personal property related to the common areas;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.002/B">
<num value="B">(B)</num>
<content>maintenance and improvement of common areas owned by the property owners' association; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.002/C">
<num value="C">(C)</num>
<content>other purposes of the property owners' association as stated in its articles of incorporation or the dedicatory instrument for the residential subdivision.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.002/13">
<num value="13">(13)</num>
<content>"Verified mail" means any method of mailing for which evidence of mailing is provided by the United States Postal Service or a common carrier.</content>
</paragraph>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 926, Sec. 1, eff. Jan. 1, 2002.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 863 (H.B. 503), Sec. 1, eff. September 1, 2013.
Acts 2015, 84th Leg., R.S., Ch. 1183 (S.B. 1168), Sec. 4, eff. September 1, 2015.
Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 9, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.003">
<num value="209.003">Sec. 209.003.</num>
<heading>APPLICABILITY OF CHAPTER</heading>
<subsection identifier="/us/tx/pr/t11/c209/s209.003/a">
<num value="a">(a)</num>
<content>This chapter applies only to a residential subdivision that is subject to restrictions or provisions in a declaration that authorize the property owners' association to collect regular or special assessments on all or a majority of the property in the subdivision.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.003/b">
<num value="b">(b)</num>
<content>Except as otherwise provided by this chapter, this chapter applies only to a property owners' association that requires mandatory membership in the association for all or a majority of the owners of residential property within the subdivision subject to the association's dedicatory instruments.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.003/c">
<num value="c">(c)</num>
<content>This chapter applies to a residential property owners' association regardless of whether the entity is designated as a "homeowners' association," "community association," or similar designation in the restrictions or dedicatory instrument.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.003/d">
<num value="d">(d)</num>
<content>This chapter does not apply to a condominium as defined by Section 81.002 or 82.003.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.003/e">
<num value="e">(e)</num>
<chapeau>The following provisions of this chapter do not apply to a property owners' association that is a mixed-use master association that existed before January 1, 1974, and that does not have the authority under a dedicatory instrument or other governing document to impose fines:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.003/1">
<num value="1">(1)</num>
<content>Section 209.005(c);</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.003/2">
<num value="2">(2)</num>
<content>Section 209.0056;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.003/3">
<num value="3">(3)</num>
<content>Section 209.0057;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.003/4">
<num value="4">(4)</num>
<content>Section 209.0058;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.003/5">
<num value="5">(5)</num>
<content>Section 209.00592; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.003/6">
<num value="6">(6)</num>
<content>Section 209.0062.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 926, Sec. 1, eff. Jan. 1, 2002.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 1367 (H.B. 3674), Sec. 7, eff. September 1, 2007.
Acts 2011, 82nd Leg., R.S., Ch. 1026 (H.B. 2761), Sec. 1, eff. January 1, 2012.
Acts 2011, 82nd Leg., R.S., Ch. 1142 (H.B. 1821), Sec. 6, eff. January 1, 2012.
Acts 2011, 82nd Leg., R.S., Ch. 1217 (S.B. 472), Sec. 1, eff. September 1, 2011.
Acts 2011, 82nd Leg., R.S., Ch. 1282 (H.B. 1228), Sec. 1, eff. January 1, 2012.
Acts 2013, 83rd Leg., R.S., Ch. 161 (S.B. 1093), Sec. 17.002(a), eff. September 1, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 161 (S.B. 1093), Sec. 17.002(b), eff. September 1, 2013.
Acts 2015, 84th Leg., R.S., Ch. 1183 (S.B. 1168), Sec. 5, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.004">
<num value="209.004">Sec. 209.004.</num>
<heading>MANAGEMENT CERTIFICATES</heading>
<subsection identifier="/us/tx/pr/t11/c209/s209.004/a">
<num value="a">(a)</num>
<chapeau>A property owners' association shall record in each county in which any portion of the residential subdivision is located a management certificate, signed and acknowledged by an officer or the managing agent of the association, stating:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.004/1">
<num value="1">(1)</num>
<content>the name of the subdivision;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.004/2">
<num value="2">(2)</num>
<content>the name of the association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.004/3">
<num value="3">(3)</num>
<content>the recording data for the subdivision;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.004/4">
<num value="4">(4)</num>
<content>the recording data for the declaration and any amendments to the declaration;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.004/5">
<num value="5">(5)</num>
<content>the name and mailing address of the association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.004/6">
<num value="6">(6)</num>
<content>the name, mailing address, telephone number, and e-mail address of the person managing the association or the association's designated representative;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.004/7">
<num value="7">(7)</num>
<content>the website address of any Internet website on which the association's dedicatory instruments are available in accordance with Section 207.006;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.004/8">
<num value="8">(8)</num>
<content>the amount and description of a fee or fees charged by the association relating to a property transfer in the subdivision; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.004/9">
<num value="9">(9)</num>
<content>other information the association considers appropriate.</content>
<continuation>(a-1) The county clerk of each county in which a management certificate is filed as required by this section shall record the management certificate in the real property records of the county and index the document as a "Property Owners' Association Management Certificate."</continuation>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.004/b">
<num value="b">(b)</num>
<content>The property owners' association shall record an amended management certificate in each county in which any portion of the residential subdivision is located not later than the 30th day after the date the association has notice of a change in any information in the recorded certificate required by Subsection (a).</content>
<continuation>(b-1) Not later than the seventh day after the date a property owners' association files a management certificate for recording under Subsection (a) or files an amended management certificate for recording under Subsection (b), the property owners' association shall electronically file the management certificate or amended management certificate with the Texas Real Estate Commission. The Texas Real Estate Commission shall only collect the management certificate and amended management certificate for the purpose of making the data accessible to the general public through an Internet website.</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.004/c">
<num value="c">(c)</num>
<content>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.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.004/d">
<num value="d">(d)</num>
<chapeau>If a property owners' association fails to record a management certificate or an amended management certificate under this section, the purchaser, lender, or title insurance company or its agent in a transaction involving property in the property owners' association is not liable to the property owners' association for:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.004/1">
<num value="1">(1)</num>
<content>any amount due to the association on the date of a transfer to a bona fide purchaser; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.004/2">
<num value="2">(2)</num>
<content>any debt to or claim of the association that accrued before the date of a transfer to a bona fide purchaser.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.004/e">
<num value="e">(e)</num>
<content>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.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.004/f">
<num value="f">(f)</num>
<chapeau>For purposes of this section, "bona fide purchaser" means:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.004/1">
<num value="1">(1)</num>
<content>a person who pays valuable consideration without notice of outstanding rights of others and acts in good faith; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.004/2">
<num value="2">(2)</num>
<content>a third-party lender who acquires a security interest in the property under a deed of trust.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 926, Sec. 1, eff. Jan. 1, 2002.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 148 (S.B. 1919), Sec. 1, eff. September 1, 2009.
Acts 2013, 83rd Leg., R.S., Ch. 1108 (H.B. 3800), Sec. 1, eff. September 1, 2013.
Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 10, eff. September 1, 2021.
Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 10, eff. December 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.0041">
<num value="209.0041">Sec. 209.0041.</num>
<heading>ADOPTION OR AMENDMENT OF CERTAIN DEDICATORY INSTRUMENTS</heading>
<subsection identifier="/us/tx/pr/t11/c209/s209.0041/a">
<num value="a">(a)</num>
<content>Repealed by Acts 2015, 84th Leg., R.S., Ch. 1183 , Sec. 24, eff. September 1, 2015.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0041/b">
<num value="b">(b)</num>
<content>This section applies to a residential subdivision in which property owners are subject to mandatory membership in a property owners' association.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0041/c">
<num value="c">(c)</num>
<content>This section does not apply to a property owners' association that is subject to Chapter 552, Government Code, by application of Section 552.0036, Government Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0041/d">
<num value="d">(d)</num>
<content>This section does not apply to the amendment of a declaration during a development period.</content>
<continuation>(d-1) This section does not apply to an amendment of a declaration if the amendment would affect a portion of a subdivision that is zoned for or that contains, or previously contained as specifically allowed under the declaration, a commercial structure, an industrial structure, an apartment complex, or a condominium as defined by Section 81.002 or 82.003. For purposes of this subsection, "apartment complex" means two or more dwellings in one or more buildings that are owned by the same owner, located on the same lot or tract, and managed by the same owner, agent, or management company.</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0041/e">
<num value="e">(e)</num>
<content>This section applies to a dedicatory instrument regardless of the date on which the dedicatory instrument was created.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0041/f">
<num value="f">(f)</num>
<content>This section supersedes any contrary requirement in a dedicatory instrument.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0041/g">
<num value="g">(g)</num>
<content>To the extent of any conflict with another provision of this title, this section prevails.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0041/h">
<num value="h">(h)</num>
<content>Except as provided by Subsection (h-1) or (h-2), a declaration may be amended only by a vote of 67 percent of the total votes allocated to property owners entitled to vote on the amendment of the declaration, in addition to any governmental approval required by law.</content>
<continuation>(h-1) If the declaration contains a lower percentage than prescribed by Subsection (h), the percentage in the declaration controls.</continuation>
<continuation>(h-2) If the declaration is silent as to voting rights for an amendment, the declaration may be amended by a vote of owners owning 67 percent of the lots subject to the declaration.</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0041/i">
<num value="i">(i)</num>
<content>A bylaw may not be amended to conflict with the declaration.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 1217 (S.B. 472), Sec. 2, eff. September 1, 2011.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1183 (S.B. 1168), Sec. 6, eff. September 1, 2015.
Acts 2015, 84th Leg., R.S., Ch. 1183 (S.B. 1168), Sec. 24, eff. September 1, 2015.
Acts 2021, 87th Leg., R.S., Ch. 666 (H.B. 1659), Sec. 1, eff. June 15, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.0042">
<num value="209.0042">Sec. 209.0042.</num>
<heading>METHODS OF PROVIDING NOTICES TO OWNERS</heading>
<subsection identifier="/us/tx/pr/t11/c209/s209.0042/a">
<num value="a">(a)</num>
<content>Subject to this section, a property owners' association may adopt a method that may be used by the association to provide a notice from the association to a property owner.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0042/b">
<num value="b">(b)</num>
<content>A property owners' association may use an alternative method of providing notice adopted under this section to provide a notice for which another method is prescribed by law only if the property owner to whom the notice is provided has affirmatively opted to allow the association to use the alternative method of providing notice to provide to the owner notices for which another method is prescribed by law.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0042/c">
<num value="c">(c)</num>
<content>A property owners' association may not require an owner to allow the association to use an alternative method of providing notice adopted under this section to provide to the owner any notice for which another method of providing notice is prescribed by law.</content>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 1183 (S.B. 1168), Sec. 7, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.005">
<num value="209.005">Sec. 209.005.</num>
<heading>ASSOCIATION RECORDS</heading>
<subsection identifier="/us/tx/pr/t11/c209/s209.005/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (b), this section applies to all property owners' associations and controls over other law not specifically applicable to a property owners' association.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.005/b">
<num value="b">(b)</num>
<content>This section does not apply to a property owners' association that is subject to Chapter 552, Government Code, by application of Section 552.0036, Government Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.005/c">
<num value="c">(c)</num>
<content>Notwithstanding a provision in a dedicatory instrument, a property owners' association shall make the books and records of the association, including financial records, open to and reasonably available for examination by an owner, or a person designated in a writing signed by the owner as the owner's agent, attorney, or certified public accountant, in accordance with this section. An owner is entitled to obtain from the association copies of information contained in the books and records.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.005/d">
<num value="d">(d)</num>
<content>Except as provided by this subsection, an attorney's files and records relating to the property owners' association, excluding invoices requested by an owner under Section 209.008(d), are not records of the association and are not subject to inspection by the owner or production in a legal proceeding. If a document in an attorney's files and records relating to the association would be responsive to a legally authorized request to inspect or copy association documents, the document shall be produced by using the copy from the attorney's files and records if the association has not maintained a separate copy of the document. This subsection does not require production of a document that constitutes attorney work product or that is privileged as an attorney-client communication.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.005/e">
<num value="e">(e)</num>
<chapeau>An owner or the owner's authorized representative described by Subsection (c) must submit a written request for access or information under Subsection (c) by certified mail, with sufficient detail describing the property owners' association's books and records requested, to the mailing address of the association or authorized representative as reflected on the most current management certificate filed under Section 209.004. The request must contain an election either to inspect the books and records before obtaining copies or to have the property owners' association forward copies of the requested books and records and:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.005/1">
<num value="1">(1)</num>
<content>if an inspection is requested, the association, on or before the 10th business day after the date the association receives the request, shall send written notice of dates during normal business hours that the owner may inspect the requested books and records to the extent those books and records are in the possession, custody, or control of the association; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.005/2">
<num value="2">(2)</num>
<content>if copies of identified books and records are requested, the association shall, to the extent those books and records are in the possession, custody, or control of the association, produce the requested books and records for the requesting party on or before the 10th business day after the date the association receives the request, except as otherwise provided by this section.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.005/f">
<num value="f">(f)</num>
<chapeau>If the property owners' association is unable to produce the books or records requested under Subsection (e) on or before the 10th business day after the date the association receives the request, the association must provide to the requestor written notice that:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.005/1">
<num value="1">(1)</num>
<content>informs the requestor that the association is unable to produce the information on or before the 10th business day after the date the association received the request; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.005/2">
<num value="2">(2)</num>
<content>states a date by which the information will be sent or made available for inspection to the requesting party that is not later than the 15th business day after the date notice under this subsection is given.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.005/g">
<num value="g">(g)</num>
<content>If an inspection is requested or required, the inspection shall take place at a mutually agreed on time during normal business hours, and the requesting party shall identify the books and records for the property owners' association to copy and forward to the requesting party.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.005/h">
<num value="h">(h)</num>
<content>A property owners' association may produce books and records requested under this section in hard copy, electronic, or other format reasonably available to the association.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.005/i">
<num value="i">(i)</num>
<content>A property owners' association board must adopt a records production and copying policy that prescribes the costs the association will charge for the compilation, production, and reproduction of information requested under this section. The prescribed charges may include all reasonable costs of materials, labor, and overhead but may not exceed costs that would be applicable for an item under 1 T.A.C. Section 70.3. The policy required by this subsection must be recorded as a dedicatory instrument in accordance with Section 202.006. An association may not charge an owner for the compilation, production, or reproduction of information requested under this section unless the policy prescribing those costs has been recorded as required by this subsection. An owner is responsible for costs related to the compilation, production, and reproduction of the requested information in the amounts prescribed by the policy adopted under this subsection. The association may require advance payment of the estimated costs of compilation, production, and reproduction of the requested information. If the estimated costs are lesser or greater than the actual costs, the association shall submit a final invoice to the owner on or before the 30th business day after the date the information is delivered. If the final invoice includes additional amounts due from the owner, the additional amounts, if not reimbursed to the association before the 30th business day after the date the invoice is sent to the owner, may be added to the owner's account as an assessment. If the estimated costs exceeded the final invoice amount, the owner is entitled to a refund, and the refund shall be issued to the owner not later than the 30th business day after the date the invoice is sent to the owner.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.005/j">
<num value="j">(j)</num>
<content>A property owners' association must estimate costs under this section using amounts prescribed by the policy adopted under Subsection (i).</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.005/k">
<num value="k">(k)</num>
<content>Except as provided by Subsection (l) and to the extent the information is provided in the meeting minutes, the property owners' association is not required to release or allow inspection of any books or records that identify the dedicatory instrument violation history of an individual owner of an association, an owner's personal financial information, including records of payment or nonpayment of amounts due the association, an owner's contact information, other than the owner's address, or information related to an employee of the association, including personnel files. Information may be released in an aggregate or summary manner that would not identify an individual property owner.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.005/l">
<num value="l">(l)</num>
<chapeau>The books and records described by Subsection (k) shall be released or made available for inspection if:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.005/1">
<num value="1">(1)</num>
<content>the express written approval of the owner whose records are the subject of the request for inspection is provided to the property owners' association; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.005/2">
<num value="2">(2)</num>
<content>a court orders the release of the books and records or orders that the books and records be made available for inspection.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.005/m">
<num value="m">(m)</num>
<chapeau>A property owners' association composed of more than 14 lots shall adopt and comply with a document retention policy that includes, at a minimum, the following requirements:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.005/1">
<num value="1">(1)</num>
<content>certificates of formation, bylaws, restrictive covenants, and all amendments to the certificates of formation, bylaws, and covenants shall be retained permanently;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.005/2">
<num value="2">(2)</num>
<content>financial books and records shall be retained for seven years;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.005/3">
<num value="3">(3)</num>
<content>account records of current owners shall be retained for five years;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.005/4">
<num value="4">(4)</num>
<content>contracts with a term of one year or more shall be retained for four years after the expiration of the contract term;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.005/5">
<num value="5">(5)</num>
<content>minutes of meetings of the owners and the board shall be retained for seven years; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.005/6">
<num value="6">(6)</num>
<content>tax returns and audit records shall be retained for seven years.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.005/n">
<num value="n">(n)</num>
<chapeau>A member of a property owners' association who is denied access to or copies of association books or records to which the member is entitled under this section may file a petition with the justice of the peace of a justice precinct in which all or part of the property that is governed by the association is located requesting relief in accordance with this subsection. If the justice of the peace finds that the member is entitled to access to or copies of the records, the justice of the peace may grant one or more of the following remedies:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.005/1">
<num value="1">(1)</num>
<content>a judgment ordering the property owners' association to release or allow access to the books or records;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.005/2">
<num value="2">(2)</num>
<content>a judgment against the property owners' association for court costs and attorney's fees incurred in connection with seeking a remedy under this section; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.005/3">
<num value="3">(3)</num>
<content>a judgment authorizing the owner or the owner's assignee to deduct the amounts awarded under Subdivision (2) from any future regular or special assessments payable to the property owners' association.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.005/o">
<num value="o">(o)</num>
<content>If the property owners' association prevails in an action under Subsection (n), the association is entitled to a judgment for court costs and attorney's fees incurred by the association in connection with the action.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.005/p">
<num value="p">(p)</num>
<chapeau>On or before the 10th business day before the date a person brings an action against a property owners' association under this section, the person must send written notice to the association of the person's intent to bring the action. The notice must:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.005/1">
<num value="1">(1)</num>
<content>be sent certified mail, return receipt requested, or delivered by the United States Postal Service with signature confirmation service to the mailing address of the association or authorized representative as reflected on the most current management certificate filed under Section 209.004; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.005/2">
<num value="2">(2)</num>
<content>describe with sufficient detail the books and records being requested.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.005/q">
<num value="q">(q)</num>
<content>For the purposes of this section, "business day" means a day other than Saturday, Sunday, or a state or federal holiday.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 926, Sec. 1, eff. Jan. 1, 2002.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 1367 (H.B. 3674), Sec. 6, eff. September 1, 2007.
Acts 2011, 82nd Leg., R.S., Ch. 1026 (H.B. 2761), Sec. 2, eff. January 1, 2012.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.00505">
<num value="209.00505">Sec. 209.00505.</num>
<heading>ARCHITECTURAL REVIEW AUTHORITY</heading>
<subsection identifier="/us/tx/pr/t11/c209/s209.00505/a">
<num value="a">(a)</num>
<content>In this section, "architectural review authority" means the governing authority for the review and approval of improvements within a subdivision.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.00505/b">
<num value="b">(b)</num>
<chapeau>This section:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.00505/1">
<num value="1">(1)</num>
<content>applies only to a property owners' association that consists of more than 40 lots; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.00505/2">
<num value="2">(2)</num>
<chapeau>does not apply during a development period or during any period in which the declarant:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.00505/A">
<num value="A">(A)</num>
<content>appoints at least a majority of the members of the architectural review authority or otherwise controls the appointment of the architectural review authority; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.00505/B">
<num value="B">(B)</num>
<content>has the right to veto or modify a decision of the architectural review authority.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.00505/c">
<num value="c">(c)</num>
<content>Expired.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.00505/d">
<num value="d">(d)</num>
<chapeau>A decision by the architectural review authority denying an application or request by an owner for the construction of improvements in the subdivision may be appealed to the board. A written notice of the denial must be provided to the owner by certified mail, hand delivery, or electronic delivery. The notice must:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.00505/1">
<num value="1">(1)</num>
<content>describe the basis for the denial in reasonable detail and changes, if any, to the application or improvements required as a condition to approval; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.00505/2">
<num value="2">(2)</num>
<content>inform the owner that the owner may request a hearing under Subsection (e) on or before the 30th day after the date the notice was mailed to the owner.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.00505/e">
<num value="e">(e)</num>
<content>The board shall hold a hearing under this section not later than the 30th day after the date the board receives the owner's request for a hearing and shall notify the owner of the date, time, and place of the hearing not later than the 10th day before the date of the hearing. Only one hearing is required under this subsection.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.00505/f">
<num value="f">(f)</num>
<content>During a hearing, the board or the designated representative of the property owners' association and the owner or the owner's designated representative will each be provided the opportunity to discuss, verify facts, and resolve the denial of the owner's application or request for the construction of improvements, and the changes, if any, requested by the architectural review authority in the notice provided to the owner under Subsection (d).</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.00505/g">
<num value="g">(g)</num>
<content>The board or the owner may request a postponement. If requested, a postponement shall be granted for a period of not more than 10 days. Additional postponements may be granted by agreement of the parties.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.00505/h">
<num value="h">(h)</num>
<content>The property owners' association or the owner may make an audio recording of the meeting.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.00505/i">
<num value="i">(i)</num>
<content>The board may affirm, modify, or reverse, in whole or in part, any decision of the architectural review authority as consistent with the subdivision's declaration.</content>
</subsection>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 11, eff. September 1, 2021.
Amended by:
Acts 2025, 89th Leg., R.S., Ch. 10 (S.B. 711), Sec. 6, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.00506">
<num value="209.00506">Sec. 209.00506.</num>
<heading>ELIGIBILITY TO SERVE ON ARCHITECTURAL REVIEW AUTHORITY</heading>
<subsection identifier="/us/tx/pr/t11/c209/s209.00506/a">
<num value="a">(a)</num>
<content>This section applies only to an architectural review authority to which Section 209.00505 applies.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.00506/b">
<num value="b">(b)</num>
<content>Except as provided by Subsection (d), a person may not be appointed or elected to serve on an architectural review authority unless the person timely notifies the property owners' association of the person's interest in serving on the authority in accordance with Section 209.00507.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.00506/c">
<num value="c">(c)</num>
<chapeau>Except as provided by Subsection (d), a person may not be appointed or elected to serve on an architectural review authority if the person is:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.00506/1">
<num value="1">(1)</num>
<content>a current board member;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.00506/2">
<num value="2">(2)</num>
<content>a current board member's spouse; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.00506/3">
<num value="3">(3)</num>
<content>a person residing in a current board member's household.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.00506/d">
<num value="d">(d)</num>
<content>If a vacancy remains on the architectural review authority after each person eligible under Subsection (c) who timely notifies the property owners' association in accordance with Section 209.00507 is appointed or elected to the authority, the association may appoint any person to fill the vacancy, including a person not otherwise eligible under Subsection (c).</content>
</subsection>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 11, eff. September 1, 2021.
Redesignated and amended by Acts 2025, 89th Leg., R.S., Ch. 10 (S.B. 711), Sec. 6, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.00507">
<num value="209.00507">Sec. 209.00507.</num>
<heading>SOLICITATION OF CANDIDATES FOR ARCHITECTURAL REVIEW AUTHORITY</heading>
<subsection identifier="/us/tx/pr/t11/c209/s209.00507/a">
<num value="a">(a)</num>
<content>This section applies only to an architectural review authority to which Section 209.00505 applies.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.00507/b">
<num value="b">(b)</num>
<content>Not later than the 10th day before the date a property owners' association or board takes action to elect or appoint or meets to elect or appoint a person to serve on the architectural review authority, the association must provide notice to the association members soliciting persons interested in serving on the architectural review authority.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.00507/c">
<num value="c">(c)</num>
<chapeau>The notice required under Subsection (b) must:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.00507/1">
<num value="1">(1)</num>
<chapeau>be provided:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.00507/A">
<num value="A">(A)</num>
<content>by mail to each owner; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.00507/B">
<num value="B">(B)</num>
<content>by:</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.00507/i">
<num value="i">(i)</num>
<content>posting the notice in a conspicuous manner reasonably designed to provide notice to property owners' association members:</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.00507/a">
<num value="a">(a)</num>
<content>in a place located on the association's common property or, with the property owner's consent, on other conspicuously located privately owned property within the subdivision; or</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.00507/b">
<num value="b">(b)</num>
<chapeau>on any Internet website maintained by the association or other Internet media; and</chapeau>
<clause identifier="/us/tx/pr/t11/c209/s209.00507/ii">
<num value="ii">(ii)</num>
<content>sending the notice by e-mail to each owner who has registered an e-mail address with the property owners' association; and</content>
</clause>
<paragraph identifier="/us/tx/pr/t11/c209/s209.00507/2">
<num value="2">(2)</num>
<content>contain instructions for a person to notify the property owners' association of the person's interest in serving on the architectural review authority, including the date by which the person's notification must be received by the association.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.00507/d">
<num value="d">(d)</num>
<content>The date established by a property owners' association under Subsection (c)(2) by which notification of a person's interest in serving on the architectural review authority must be received by the association may not be a date earlier than the 10th day after the date the association provides the notice described by Subsection (c).</content>
</subsection>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 10 (S.B. 711), Sec. 7, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.0051">
<num value="209.0051">Sec. 209.0051.</num>
<heading>OPEN BOARD MEETINGS</heading>
<subsection identifier="/us/tx/pr/t11/c209/s209.0051/a">
<num value="a">(a)</num>
<content>This section does not apply to a property owners' association that is subject to Chapter 551, Government Code, by application of Section 551.0015, Government Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0051/b">
<num value="b">(b)</num>
<chapeau>In this section, "board meeting":</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0051/1">
<num value="1">(1)</num>
<content>means a deliberation between a quorum of the voting board of the property owners' association, or between a quorum of the voting board and another person, during which property owners' association business is considered and the board takes formal action; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0051/2">
<num value="2">(2)</num>
<content>does not include the gathering of a quorum of the board at a social function unrelated to the business of the association or the attendance by a quorum of the board at a regional, state, or national convention, ceremonial event, or press conference, if formal action is not taken and any discussion of association business is incidental to the social function, convention, ceremonial event, or press conference.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0051/c">
<num value="c">(c)</num>
<content>Regular and special board meetings must be open to owners, subject to the right of the board to adjourn a board meeting and reconvene in closed executive session to consider actions involving personnel, pending or threatened litigation, contract negotiations, enforcement actions, confidential communications with the property owners' association's attorney, matters involving the invasion of privacy of individual owners, or matters that are to remain confidential by request of the affected parties and agreement of the board. Following an executive session, any decision made in the executive session must be summarized orally and placed in the minutes, in general terms, without breaching the privacy of individual owners, violating any privilege, or disclosing information that was to remain confidential at the request of the affected parties. The oral summary must include a general explanation of expenditures approved in executive session.</content>
<continuation>(c-1) Except for a meeting held by electronic or telephonic means under Subsection (c-2), a board meeting must be held in a county in which all or part of the property in the subdivision is located or in a county adjacent to that county.</continuation>
<continuation>(c-2) A board meeting may be held by electronic or telephonic means provided that:</continuation>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0051/1">
<num value="1">(1)</num>
<content>each board member may hear and be heard by every other board member;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0051/2">
<num value="2">(2)</num>
<chapeau>except for any portion of the meeting conducted in executive session:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.0051/A">
<num value="A">(A)</num>
<content>all owners in attendance at the meeting may hear all board members; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.0051/B">
<num value="B">(B)</num>
<content>owners are allowed to listen using any electronic or telephonic communication method used or expected to be used by a board member to participate; and</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0051/3">
<num value="3">(3)</num>
<content>the notice of the meeting includes instructions for owners to access any communication method required to be accessible under Subdivision (2)(B).</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0051/d">
<num value="d">(d)</num>
<content>The board shall keep a record of each regular or special board meeting in the form of written minutes of the meeting. The board shall make meeting records, including approved minutes, available to a member for inspection and copying on the member's written request to the property owners' association's managing agent at the address appearing on the most recently filed management certificate or, if there is not a managing agent, to the board.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0051/e">
<num value="e">(e)</num>
<chapeau>Members shall be given notice of the date, hour, place, and general subject of a regular or special board meeting, including a general description of any matter to be brought up for deliberation in executive session. The notice shall be:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0051/1">
<num value="1">(1)</num>
<content>mailed to each property owner not later than the 10th day or earlier than the 60th day before the date of the meeting; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0051/2">
<num value="2">(2)</num>
<chapeau>provided at least 144 hours before the start of a regular board meeting and at least 72 hours before the start of a special board meeting by:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.0051/A">
<num value="A">(A)</num>
<content>posting the notice in a conspicuous manner reasonably designed to provide notice to property owners' association members:</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0051/i">
<num value="i">(i)</num>
<chapeau>in a place located on the association's common property or, with the property owner's consent, on other conspicuously located privately owned property within the subdivision; or</chapeau>
<clause identifier="/us/tx/pr/t11/c209/s209.0051/ii">
<num value="ii">(ii)</num>
<content>on any Internet website available to association members that is maintained by the association or by a management company on behalf of the association; and</content>
</clause>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.0051/B">
<num value="B">(B)</num>
<content>sending the notice by e-mail to each owner who has registered an e-mail address with the association.</content>
</subparagraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0051/f">
<num value="f">(f)</num>
<content>It is an owner's duty to keep an updated e-mail address registered with the property owners' association under Subsection (e)(2)(B).</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0051/g">
<num value="g">(g)</num>
<content>If the board recesses a regular or special board meeting to continue the following regular business day, the board is not required to post notice of the continued meeting if the recess is taken in good faith and not to circumvent this section. If a regular or special board meeting is continued to the following regular business day, and on that following day the board continues the meeting to another day, the board shall give notice of the continuation in at least one manner prescribed by Subsection (e)(2)(A) within two hours after adjourning the meeting being continued.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0051/h">
<num value="h">(h)</num>
<chapeau>Except as provided by this subsection, a board may take action outside of a meeting, including voting by electronic or telephonic means, without prior notice to owners under Subsection (e), if each board member is given a reasonable opportunity to express the board member's opinion to all other board members and to vote. Any action taken without notice to owners under Subsection (e) must be summarized orally, including an explanation of any known actual or estimated expenditures approved at the meeting, and documented in the minutes of the next regular or special board meeting. The board may not, unless done in an open meeting for which prior notice was given to owners under Subsection (e), consider or vote on:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0051/1">
<num value="1">(1)</num>
<content>fines;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0051/2">
<num value="2">(2)</num>
<content>damage assessments;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0051/3">
<num value="3">(3)</num>
<content>initiation of foreclosure actions;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0051/4">
<num value="4">(4)</num>
<content>initiation of enforcement actions, excluding temporary restraining orders or violations involving a threat to health or safety;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0051/5">
<num value="5">(5)</num>
<content>increases in assessments;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0051/6">
<num value="6">(6)</num>
<content>levying of special assessments;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0051/7">
<num value="7">(7)</num>
<content>appeals from a denial of architectural control approval;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0051/8">
<num value="8">(8)</num>
<content>a suspension of a right of a particular owner before the owner has an opportunity to attend a board meeting to present the owner's position, including any defense, on the issue;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0051/9">
<num value="9">(9)</num>
<content>lending or borrowing money;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0051/10">
<num value="10">(10)</num>
<content>the adoption or amendment of a dedicatory instrument;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0051/11">
<num value="11">(11)</num>
<content>the approval of an annual budget or the approval of an amendment of an annual budget;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0051/12">
<num value="12">(12)</num>
<content>the sale or purchase of real property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0051/13">
<num value="13">(13)</num>
<content>the filling of a vacancy on the board;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0051/14">
<num value="14">(14)</num>
<content>the construction of capital improvements other than the repair, replacement, or enhancement of existing capital improvements; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0051/15">
<num value="15">(15)</num>
<content>the election of an officer.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0051/i">
<num value="i">(i)</num>
<chapeau>This section applies to a meeting of a property owners' association board during the development period only if the meeting is conducted for the purpose of:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0051/1">
<num value="1">(1)</num>
<content>adopting or amending the governing documents, including declarations, bylaws, rules, and regulations of the association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0051/2">
<num value="2">(2)</num>
<content>increasing the amount of regular assessments of the association or adopting or increasing a special assessment;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0051/3">
<num value="3">(3)</num>
<content>electing non-developer board members of the association or establishing a process by which those members are elected; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0051/4">
<num value="4">(4)</num>
<content>changing the voting rights of members of the association.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 1026 (H.B. 2761), Sec. 3, eff. January 1, 2012.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1183 (S.B. 1168), Sec. 8, eff. September 1, 2015.
Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 12, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.0052">
<num value="209.0052">Sec. 209.0052.</num>
<heading>ASSOCIATION CONTRACTS</heading>
<subsection identifier="/us/tx/pr/t11/c209/s209.0052/a">
<num value="a">(a)</num>
<content>This section does not apply to a contract entered into by an association during the development period.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0052/b">
<num value="b">(b)</num>
<chapeau>An association may enter into an enforceable contract with a current association board member, a person related to a current association board member within the third degree by consanguinity or affinity, as determined under Chapter 573, Government Code, a company in which a current association board member has a financial interest in at least 51 percent of profits, or a company in which a person related to a current association board member within the third degree by consanguinity or affinity, as determined under Chapter 573, Government Code, has a financial interest in at least 51 percent of profits only if the following conditions are satisfied:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0052/1">
<num value="1">(1)</num>
<content>the board member, relative, or company bids on the proposed contract and the association has received at least two other bids for the contract from persons not associated with the board member, relative, or company, if reasonably available in the community;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0052/2">
<num value="2">(2)</num>
<chapeau>the board member:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.0052/A">
<num value="A">(A)</num>
<content>is not given access to the other bids;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.0052/B">
<num value="B">(B)</num>
<content>does not participate in any board discussion regarding the contract; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.0052/C">
<num value="C">(C)</num>
<content>does not vote on the award of the contract;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0052/3">
<num value="3">(3)</num>
<content>the material facts regarding the relationship or interest with respect to the proposed contract are disclosed to or known by the association board and the board, in good faith and with ordinary care, authorizes the contract by an affirmative vote of the majority of the board members who do not have an interest governed by this subsection; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0052/4">
<num value="4">(4)</num>
<content>the association board certifies that the other requirements of this subsection have been satisfied by a resolution approved by an affirmative vote of the majority of the board members who do not have an interest governed by this subsection.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0052/c">
<num value="c">(c)</num>
<content>In addition to the other applicable requirements of this section, an association that proposes to contract for services that will cost more than $50,000 shall solicit bids or proposals using a bid process established by the association.</content>
</subsection>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 863 (H.B. 503), Sec. 2, eff. September 1, 2013.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 13, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.0055">
<num value="209.0055">Sec. 209.0055.</num>
<heading>VOTING</heading>
<subsection identifier="/us/tx/pr/t11/c209/s209.0055/a">
<num value="a">(a)</num>
<chapeau>This section applies only to a property owners' association that:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0055/1">
<num value="1">(1)</num>
<content>provides maintenance, preservation, and architectural control of residential and commercial property within a defined geographic area in a county with a population of 2.8 million or more or in a county adjacent to a county with a population of 2.8 million or more; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0055/2">
<num value="2">(2)</num>
<chapeau>is a corporation that:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.0055/A">
<num value="A">(A)</num>
<content>is governed by a board of trustees who may employ a general manager to execute the association's bylaws and administer the business of the corporation;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.0055/B">
<num value="B">(B)</num>
<content>does not require membership in the corporation by the owners of the property within the defined area; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.0055/C">
<num value="C">(C)</num>
<content>was incorporated before January 1, 2006.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0055/b">
<num value="b">(b)</num>
<chapeau>A property owners' association described by Subsection (a) may not bar a property owner from voting in an association election solely based on the fact that:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0055/1">
<num value="1">(1)</num>
<content>there is a pending enforcement action against the property owner; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0055/2">
<num value="2">(2)</num>
<content>the property owner owes the association any delinquent assessments, fees, or fines.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2007, 80th Leg., R.S., Ch. 1367 (H.B. 3674), Sec. 8, eff. September 1, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.0056">
<num value="209.0056">Sec. 209.0056.</num>
<heading>NOTICE OF ELECTION OR ASSOCIATION VOTE</heading>
<subsection identifier="/us/tx/pr/t11/c209/s209.0056/a">
<num value="a">(a)</num>
<chapeau>For an election or vote taken at a meeting of the owners, not later than the 10th day or earlier than the 60th day before the date of the election or vote, a property owners' association shall give written notice of the election or vote to:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0056/1">
<num value="1">(1)</num>
<content>each owner of property in the property owners' association, for purposes of an association-wide election or vote; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0056/2">
<num value="2">(2)</num>
<content>each owner of property in the property owners' association entitled under the dedicatory instruments to vote in a particular representative election, for purposes of a vote that involves election of representatives of the association who are vested under the dedicatory instruments of the property owners' association with the authority to elect or appoint board members of the property owners' association.</content>
<continuation>(a-1) For an election or vote of owners not taken at a meeting, the property owners' association shall give notice of the election or vote to all owners entitled to vote on any matter under consideration. The notice shall be given not later than the 20th day before the latest date on which a ballot may be submitted to be counted.</continuation>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0056/b">
<num value="b">(b)</num>
<content>This section supersedes any contrary requirement in a dedicatory instrument.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0056/c">
<num value="c">(c)</num>
<content>This section does not apply to a property owners' association that is subject to Chapter 552, Government Code, by application of Section 552.0036, Government Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0056/d">
<num value="d">(d)</num>
<content>A meeting of the owners held under this section may be held by any method of communication, including electronic and telephonic means as provided by Section 6.002, Business Organizations Code.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 1026 (H.B. 2761), Sec. 3, eff. January 1, 2012.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1183 (S.B. 1168), Sec. 9, eff. September 1, 2015.
Acts 2025, 89th Leg., R.S., Ch. 79 (S.B. 2629), Sec. 4, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.0057">
<num value="209.0057">Sec. 209.0057.</num>
<heading>RECOUNT OF VOTES</heading>
<subsection identifier="/us/tx/pr/t11/c209/s209.0057/a">
<num value="a">(a)</num>
<content>This section does not apply to a property owners' association that is subject to Chapter 552, Government Code, by application of Section 552.0036, Government Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0057/b">
<num value="b">(b)</num>
<chapeau>Any owner may, not later than the 15th day after the later of the date of any meeting of owners at which the election or vote was held or the date of the announcement of the results of the election or vote, require a recount of the votes. A demand for a recount must be submitted in writing either:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0057/1">
<num value="1">(1)</num>
<content>by verified mail or by delivery by the United States Postal Service with signature confirmation service to the property owners' association's mailing address as reflected on the latest management certificate filed under Section 209.004; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0057/2">
<num value="2">(2)</num>
<content>in person to the property owners' association's managing agent as reflected on the latest management certificate filed under Section 209.004 or to the address to which absentee and proxy ballots are mailed.</content>
<continuation>(b-1) The property owners' association must estimate the costs for performance of the recount by a person qualified to tabulate votes under Subsection (c) and must send an invoice for the estimated costs to the requesting owner at the owner's last known address according to association records not later than the 20th day after the date the association receives the owner's demand for the recount.</continuation>
<continuation>(b-2) The owner demanding a recount under this section must pay the invoice described by Subsection (b-1) in full to the property owners' association on or before the 30th day after the date the invoice is sent to the owner.</continuation>
<continuation>(b-3) If the invoice described by Subsection (b-1) is not paid by the deadline prescribed by Subsection (b-2), the owner's demand for a recount is considered withdrawn and a recount is not required.</continuation>
<continuation>(b-4) If the estimated costs under Subsection (b-1) are lesser or greater than the actual costs, the property owners' association must send a final invoice to the owner on or before the 30th business day after the date the results of the recount are provided. If the final invoice includes additional amounts owed by the owner, any additional amounts not paid to the association before the 30th business day after the date the invoice is sent to the owner may be added to the owner's account as an assessment. If the estimated costs exceed the final invoice amount, the owner is entitled to a refund. The refund shall be paid to the owner at the time the final invoice is sent under this subsection.</continuation>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0057/c">
<num value="c">(c)</num>
<chapeau>Following receipt of payment under Subsection (b-2), the property owners' association shall, at the expense of the owner requesting the recount, retain for the purpose of performing the recount the services of a person qualified to tabulate votes under this subsection. The association shall enter into a contract for the services of a person who:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0057/1">
<num value="1">(1)</num>
<content>is not a member of the association or related to a member of the association board within the third degree by consanguinity or affinity, as determined under Chapter 573, Government Code; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0057/2">
<num value="2">(2)</num>
<chapeau>is:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.0057/A">
<num value="A">(A)</num>
<content>a current or former:</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0057/i">
<num value="i">(i)</num>
<chapeau>county judge;</chapeau>
<clause identifier="/us/tx/pr/t11/c209/s209.0057/ii">
<num value="ii">(ii)</num>
<content>county elections administrator;</content>
</clause>
<clause identifier="/us/tx/pr/t11/c209/s209.0057/iii">
<num value="iii">(iii)</num>
<content>justice of the peace; or</content>
</clause>
<clause identifier="/us/tx/pr/t11/c209/s209.0057/iv">
<num value="iv">(iv)</num>
<content>county voter registrar; or</content>
</clause>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.0057/B">
<num value="B">(B)</num>
<content>a person agreed on by the association and each person requesting the recount.</content>
</subparagraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0057/d">
<num value="d">(d)</num>
<content>On or before the 30th day after the date of receipt of payment for a recount in accordance with Subsection (b-2), the recount must be completed and the property owners' association must provide each owner who requested the recount with notice of the results of the recount. If the recount changes the results of the election, the association shall reimburse the requesting owner for the cost of the recount not later than the 30th day after the date the results of the recount are provided. Any action taken by the board in the period between the initial election vote tally and the completion of the recount is not affected by any recount.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 1026 (H.B. 2761), Sec. 3, eff. January 1, 2012.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1183 (S.B. 1168), Sec. 10, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.0058">
<num value="209.0058">Sec. 209.0058.</num>
<heading>BALLOTS</heading>
<sourceCredit>Text of subsection as amended by Acts 2015, 84th Leg., R.S., Ch. 249 (S.B. 864), Sec. 1
(a) Except as provided by Subsection (d), any vote cast in an election or vote by a member of a property owners' association must be in writing and signed by the member.
Text of subsection as amended by Acts 2015, 84th Leg., R.S., Ch. 1183 (S.B. 1168), Sec. 11
(a) Except as provided by Subsection (d), a vote cast by a member of a property owners' association must be in writing and signed by the member if the vote is cast:
(1) outside of a meeting;
(2) in an election to fill a position on the board;
(3) on a proposed adoption or amendment of a dedicatory instrument;
(4) on a proposed increase in the amount of a regular assessment or the proposed adoption of a special assessment; or
(5) on the proposed removal of a board member.
(a-1) If a property owners' association elects to use a ballot for a vote on a matter other than a matter described by Subsection (a), the ballot must be:
(1) in writing and signed by the member; or
(2) cast by secret ballot in accordance with Subsection (d).
(b) Electronic votes cast under Section 209.00592 constitute written and signed ballots.
(c) In a property owners' association election, written and signed ballots are not required for uncontested races.
Text of subsection as added by Acts 2015, 84th Leg., R.S., Ch. 249 (S.B. 864), Sec. 1
(d) A property owners' association may adopt rules to allow voting by secret ballot by members of the association. The association must take measures to reasonably ensure that:
(1) a member cannot cast more votes than the member is eligible to cast in an election or vote; and
(2) the association counts every vote cast by a member that is eligible to cast a vote.
Text of subsection as added by Acts 2015, 84th Leg., R.S., Ch. 1183 (S.B. 1168), Sec. 11
(d) A property owners' association may adopt rules to allow voting by secret ballot by association members. The association must take measures to reasonably ensure that:
(1) a member cannot cast more votes than the member is eligible to cast in an election or vote;
(2) the association counts each vote cast by a member that the member is eligible to cast; and
(3) in any election for the board, each candidate may name one person to observe the counting of the ballots, provided that this does not entitle any observer to see the name of the person who cast any ballot, and that any disruptive observer may be removed.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1026 (H.B. 2761), Sec. 3, eff. January 1, 2012.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 249 (S.B. 864), Sec. 1, eff. May 29, 2015.
Acts 2015, 84th Leg., R.S., Ch. 1183 (S.B. 1168), Sec. 11, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.0059">
<num value="209.0059">Sec. 209.0059.</num>
<heading>RIGHT TO VOTE</heading>
<subsection identifier="/us/tx/pr/t11/c209/s209.0059/a">
<num value="a">(a)</num>
<content>A provision in a dedicatory instrument that would disqualify a property owner from voting in a property owners' association election of board members or on any matter concerning the rights or responsibilities of the owner is void.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0059/b">
<num value="b">(b)</num>
<content>This section does not apply to a property owners' association that is subject to Chapter 552, Government Code, by application of Section 552.0036, Government Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0059/c">
<num value="c">(c)</num>
<content>In a residential development with 10 or fewer lots for which the declaration was recorded before January 1, 2015, a person may not vote in a property owners' association election unless the person is subject to a dedicatory instrument governing the association through which the association exercises its authority.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 1026 (H.B. 2761), Sec. 3, eff. January 1, 2012.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1183 (S.B. 1168), Sec. 12, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.00591">
<num value="209.00591">Sec. 209.00591.</num>
<heading>BOARD MEMBERSHIP</heading>
<subsection identifier="/us/tx/pr/t11/c209/s209.00591/a">
<num value="a">(a)</num>
<content>Except as provided by this section, a provision in a dedicatory instrument that restricts a property owner's right to run for a position on the board of the property owners' association is void.</content>
<continuation>(a-1) Notwithstanding any other provision of this chapter, a property owners' association's bylaws may require one or more board members to reside in the subdivision subject to the dedicatory instruments but may not require all board members to reside in that subdivision. A requirement described by this subsection is not applicable during the development period.</continuation>
<continuation>(a-2) Notwithstanding any other provision of this chapter, a property owners' association that governs a subdivision comprised of multiple sections may designate in an association instrument governing the administration or operation of the association a specified number of positions on the board, each of which must be elected from a designated section of the subdivision. The instrument may require each board member representing a section to reside in that section.</continuation>
<continuation>(a-3) A person may not serve on the board of a property owners' association if the person cohabits at the same primary residence with another board member of the association. This subsection does not apply:</continuation>
<paragraph identifier="/us/tx/pr/t11/c209/s209.00591/1">
<num value="1">(1)</num>
<content>to an association with fewer than 10 residences; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.00591/2">
<num value="2">(2)</num>
<chapeau>during a subdivision's development period to affect the eligibility to serve on the board of:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.00591/A">
<num value="A">(A)</num>
<content>a person who cohabits with a developer of the subdivision regulated by the association; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.00591/B">
<num value="B">(B)</num>
<content>the developer.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.00591/b">
<num value="b">(b)</num>
<content>If a board is presented with written, documented evidence from a database or other record maintained by a governmental law enforcement authority that a board member was convicted of a felony or crime involving moral turpitude not more than 20 years before the date the board is presented with the evidence, the board member is immediately ineligible to serve on the board of the property owners' association, automatically considered removed from the board, and prohibited from future service on the board.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.00591/c">
<num value="c">(c)</num>
<content>The declaration may provide for a period of declarant control of the association during which a declarant, or persons designated by the declarant, may appoint and remove board members and the officers of the association, other than board members or officers elected by members of the property owners' association. Regardless of the period of declarant control provided by the declaration, on or before the 120th day after the date 75 percent of the lots that may be created and made subject to the declaration are conveyed to owners other than a declarant or a builder in the business of constructing homes who purchased the lots from the declarant for the purpose of selling completed homes built on the lots, at least one-third of the board members must be elected by owners other than the declarant. If the declaration does not include the number of lots that may be created and made subject to the declaration, at least one-third of the board members must be elected by owners other than the declarant not later than the 10th anniversary of the date the declaration was recorded.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 1026 (H.B. 2761), Sec. 3, eff. January 1, 2012.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 649 (H.B. 1072), Sec. 1, eff. September 1, 2015.
Acts 2015, 84th Leg., R.S., Ch. 1183 (S.B. 1168), Sec. 13, eff. September 1, 2015.
Acts 2019, 86th Leg., R.S., Ch. 1056 (H.B. 1025), Sec. 1, eff. September 1, 2019.
Acts 2019, 86th Leg., R.S., Ch. 1056 (H.B. 1025), Sec. 1, eff. June 14, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.00592">
<num value="209.00592">Sec. 209.00592.</num>
<heading>VOTING; QUORUM</heading>
<subsection identifier="/us/tx/pr/t11/c209/s209.00592/a">
<num value="a">(a)</num>
<chapeau>Subject to Subsection (a-1), the voting rights of an owner may be cast or given:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.00592/1">
<num value="1">(1)</num>
<content>in person or by proxy at a meeting of the property owners' association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.00592/2">
<num value="2">(2)</num>
<content>by absentee ballot in accordance with this section;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.00592/3">
<num value="3">(3)</num>
<content>by electronic ballot in accordance with this section; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.00592/4">
<num value="4">(4)</num>
<content>by any method of representative or delegated voting provided by a dedicatory instrument.</content>
<continuation>(a-1) Except as provided by this subsection, unless a dedicatory instrument provides otherwise, a property owners' association is not required to provide an owner with more than one voting method. An owner must be allowed to vote by one of the following voting methods:</continuation>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.00592/1">
<num value="1">(1)</num>
<content>absentee ballot;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.00592/2">
<num value="2">(2)</num>
<content>proxy; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.00592/3">
<num value="3">(3)</num>
<content>electronic ballot.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.00592/b">
<num value="b">(b)</num>
<chapeau>An absentee or electronic ballot:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.00592/1">
<num value="1">(1)</num>
<content>may be counted as an owner present and voting for the purpose of establishing a quorum only for items appearing on the ballot;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.00592/2">
<num value="2">(2)</num>
<content>may not be counted, even if properly delivered, if the owner attends any meeting to vote in person, so that any vote cast at a meeting by a property owner supersedes any vote submitted by absentee or electronic ballot previously submitted for that proposal; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.00592/3">
<num value="3">(3)</num>
<content>may not be counted on the final vote of a proposal if the motion was amended at the meeting to be different from the exact language on the absentee or electronic ballot.</content>
<continuation>(b-1) For purposes of Subsection (b), a nomination taken from the floor in a board member election is not considered an amendment to the proposal for the election.</continuation>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.00592/c">
<num value="c">(c)</num>
<chapeau>A solicitation for votes by absentee ballot must include:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.00592/1">
<num value="1">(1)</num>
<content>an absentee ballot that contains each proposed action and provides an opportunity to vote for or against each proposed action;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.00592/2">
<num value="2">(2)</num>
<content>instructions for delivery of the completed absentee ballot, including the delivery location; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.00592/3">
<num value="3">(3)</num>
<content>the following language: "By casting your vote via absentee ballot you will forgo the opportunity to consider and vote on any action from the floor on these proposals, if a meeting is held. This means that if there are amendments to these proposals your votes will not be counted on the final vote on these measures. If you desire to retain this ability, please attend any meeting in person. You may submit an absentee ballot and later choose to attend any meeting in person, in which case any in-person vote will prevail."</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.00592/d">
<num value="d">(d)</num>
<chapeau>For the purposes of this section, "electronic ballot" means a ballot:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.00592/1">
<num value="1">(1)</num>
<chapeau>given by:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.00592/A">
<num value="A">(A)</num>
<content>e-mail;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.00592/B">
<num value="B">(B)</num>
<content>facsimile; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.00592/C">
<num value="C">(C)</num>
<content>posting on an Internet website;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.00592/2">
<num value="2">(2)</num>
<content>for which the identity of the property owner submitting the ballot can be confirmed; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.00592/3">
<num value="3">(3)</num>
<content>for which the property owner may receive a receipt of the electronic transmission and receipt of the owner's ballot.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.00592/e">
<num value="e">(e)</num>
<content>If an electronic ballot is posted on an Internet website, a notice of the posting shall be sent to each owner that contains instructions on obtaining access to the posting on the website.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.00592/f">
<num value="f">(f)</num>
<content>This section supersedes any contrary provision in a dedicatory instrument.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.00592/g">
<num value="g">(g)</num>
<content>This section does not apply to a property owners' association that is subject to Chapter 552, Government Code, by application of Section 552.0036, Government Code.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 1026 (H.B. 2761), Sec. 3, eff. January 1, 2012.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 248 (S.B. 862), Sec. 1, eff. September 1, 2015.
Acts 2015, 84th Leg., R.S., Ch. 1183 (S.B. 1168), Sec. 14, eff. September 1, 2015.
Acts 2017, 85th Leg., R.S., Ch. 324 (S.B. 1488), Sec. 16.001, eff. September 1, 2017.
Acts 2025, 89th Leg., R.S., Ch. 79 (S.B. 2629), Sec. 5, eff. September 1, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.00593">
<num value="209.00593">Sec. 209.00593.</num>
<heading>ELECTION OF BOARD MEMBERS</heading>
<subsection identifier="/us/tx/pr/t11/c209/s209.00593/a">
<num value="a">(a)</num>
<content>Notwithstanding any provision in a dedicatory instrument, any board member whose term has expired must be elected by owners who are members of the property owners' association. A board member may be appointed by the board to fill a vacancy on the board. A board member appointed to fill a vacant position shall serve for the remainder of the unexpired term of the position.</content>
<continuation>(a-1) At least 10 days before the date a property owners' association composed of more than 100 lots disseminates absentee ballots or other ballots to association members for purposes of voting in a board member election, the association must provide notice to the association members soliciting candidates interested in running for a position on the board. The notice must contain instructions for an eligible candidate to notify the association of the candidate's request to be placed on the ballot and the deadline to submit the candidate's request. The deadline may not be earlier than the 10th day after the date the association provides the notice required by this subsection.</continuation>
<continuation>(a-2) The notice required by Subsection (a-1) must be:</continuation>
<paragraph identifier="/us/tx/pr/t11/c209/s209.00593/1">
<num value="1">(1)</num>
<content>mailed to each owner; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.00593/2">
<num value="2">(2)</num>
<chapeau>provided by:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.00593/A">
<num value="A">(A)</num>
<content>posting the notice in a conspicuous manner reasonably designed to provide notice to association members:</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.00593/i">
<num value="i">(i)</num>
<chapeau>in a place located on the association's common property or, with the property owner's consent, on other conspicuously located privately owned property within the subdivision; or</chapeau>
<clause identifier="/us/tx/pr/t11/c209/s209.00593/ii">
<num value="ii">(ii)</num>
<content>on any Internet website maintained by the association or other Internet media; and</content>
</clause>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.00593/B">
<num value="B">(B)</num>
<content>sending the notice by e-mail to each owner who has registered an e-mail address with the association.</content>
<continuation>(a-3) An association described by Subsection (a-1) shall include on each absentee ballot or other ballot for a board member election the name of each eligible candidate from whom the association received a request to be placed on the ballot in accordance with this section.</continuation>
</subparagraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.00593/b">
<num value="b">(b)</num>
<content>The board of a property owners' association may amend the bylaws of the property owners' association to provide for elections to be held as required by Subsection (a).</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.00593/c">
<num value="c">(c)</num>
<content>The appointment of a board member in violation of this section is void.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.00593/d">
<num value="d">(d)</num>
<content>This section does not apply to the appointment of a board member during a development period.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.00593/e">
<num value="e">(e)</num>
<content>This section does not apply to a representative board whose members or delegates are elected or appointed by representatives of a property owners' association who are elected by owner members of a property owners' association.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 1026 (H.B. 2761), Sec. 3, eff. January 1, 2012.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 1062 (H.B. 3176), Sec. 1, eff. June 14, 2013.
Acts 2015, 84th Leg., R.S., Ch. 1183 (S.B. 1168), Sec. 15, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.00594">
<num value="209.00594">Sec. 209.00594.</num>
<heading>TABULATION OF AND ACCESS TO BALLOTS</heading>
<subsection identifier="/us/tx/pr/t11/c209/s209.00594/a">
<num value="a">(a)</num>
<content>Notwithstanding any other provision of this chapter or any other law, a person who is a candidate in a property owners' association election or who is otherwise the subject of an association vote, or a person related to that person within the third degree by consanguinity or affinity, as determined under Chapter 573, Government Code, may not tabulate or otherwise be given access to the ballots cast in that election or vote except as provided by this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.00594/b">
<num value="b">(b)</num>
<content>A person other than a person described by Subsection (a) may tabulate votes in an association election or vote.</content>
<continuation>(b-1) A person who tabulates votes under Subsection (b) or who performs a recount under Section 209.0057(c) may not disclose to any other person how an individual voted.</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.00594/c">
<num value="c">(c)</num>
<content>Notwithstanding any other provision of this chapter or any other law, only a person who tabulates votes under Subsection (b) or who performs a recount under Section 209.0057(c) may be given access to the ballots cast in the election or vote.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.00594/d">
<num value="d">(d)</num>
<content>This section may not be construed to affect a person's obligation to comply with a court order for the release of ballots or other voting records.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 1217 (S.B. 472), Sec. 3, eff. September 1, 2011.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1183 (S.B. 1168), Sec. 16, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.006">
<num value="209.006">Sec. 209.006.</num>
<heading>NOTICE REQUIRED BEFORE ENFORCEMENT ACTION</heading>
<subsection identifier="/us/tx/pr/t11/c209/s209.006/a">
<num value="a">(a)</num>
<content>Before a property owners' association may suspend an owner's right to use a common area, file a suit against an owner other than a suit to collect a regular or special assessment or foreclose under an association's lien, charge an owner for property damage, levy a fine for a violation of the restrictions or bylaws or rules of the association, or report any delinquency of an owner to a credit reporting service, the association or its agent must give written notice to the owner by certified mail.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.006/b">
<num value="b">(b)</num>
<chapeau>The notice must:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.006/1">
<num value="1">(1)</num>
<content>describe the violation or property damage that is the basis for the suspension action, charge, or fine and state any amount due the association from the owner;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.006/2">
<num value="2">(2)</num>
<chapeau>except as provided by Subsection (d), inform the owner that the owner:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.006/A">
<num value="A">(A)</num>
<content>is entitled to a reasonable period to cure the violation and avoid the fine or suspension if the violation is of a curable nature and does not pose a threat to public health or safety;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.006/B">
<num value="B">(B)</num>
<content>may request a hearing under Section 209.007 on or before the 30th day after the date the notice was mailed to the owner; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.006/C">
<num value="C">(C)</num>
<content>may have special rights or relief related to the enforcement action under federal law, including the Servicemembers Civil Relief Act (50 U.S.C. App. Section 501 et seq.), if the owner is serving on active military duty;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.006/3">
<num value="3">(3)</num>
<content>specify the date by which the owner must cure the violation if the violation is of a curable nature and does not pose a threat to public health or safety; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.006/4">
<num value="4">(4)</num>
<content>be sent by verified mail to the owner at the owner's last known address as shown on the association records.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.006/c">
<num value="c">(c)</num>
<content>The date specified in the notice under Subsection (b)(3) must provide a reasonable period to cure the violation if the violation is of a curable nature and does not pose a threat to public health or safety.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.006/d">
<num value="d">(d)</num>
<content>Subsections (a) and (b) do not apply to a violation for which the owner has been previously given notice under this section and the opportunity to exercise any rights available under this section in the preceding six months.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.006/e">
<num value="e">(e)</num>
<content>If the owner cures the violation before the expiration of the period for cure described by Subsection (c), a fine may not be assessed for the violation.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.006/f">
<num value="f">(f)</num>
<content>For purposes of this section, a violation is considered a threat to public health or safety if the violation could materially affect the physical health or safety of an ordinary resident.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.006/g">
<num value="g">(g)</num>
<content>For purposes of this section, a violation is considered uncurable if the violation has occurred but is not a continuous action or a condition capable of being remedied by affirmative action. For purposes of this subsection, the nonrepetition of a one-time violation or other violation that is not ongoing is not considered an adequate remedy.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.006/h">
<num value="h">(h)</num>
<chapeau>The following are examples of acts considered uncurable for purposes of this section:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.006/1">
<num value="1">(1)</num>
<content>shooting fireworks;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.006/2">
<num value="2">(2)</num>
<content>an act constituting a threat to health or safety;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.006/3">
<num value="3">(3)</num>
<content>a noise violation that is not ongoing;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.006/4">
<num value="4">(4)</num>
<content>property damage, including the removal or alteration of landscape; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.006/5">
<num value="5">(5)</num>
<content>holding a garage sale or other event prohibited by a dedicatory instrument.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.006/i">
<num value="i">(i)</num>
<chapeau>The following are examples of acts considered curable for purposes of this section:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.006/1">
<num value="1">(1)</num>
<content>a parking violation;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.006/2">
<num value="2">(2)</num>
<content>a maintenance violation;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.006/3">
<num value="3">(3)</num>
<content>the failure to construct improvements or modifications in accordance with approved plans and specifications; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.006/4">
<num value="4">(4)</num>
<content>an ongoing noise violation such as a barking dog.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 926, Sec. 1, eff. Jan. 1, 2002.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 252 (H.B. 1127), Sec. 3, eff. January 1, 2012.
Acts 2015, 84th Leg., R.S., Ch. 1183 (S.B. 1168), Sec. 17, eff. September 1, 2015.
Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 14, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.0061">
<num value="209.0061">Sec. 209.0061.</num>
<heading>ASSOCIATION POLICY; FINES</heading>
<subsection identifier="/us/tx/pr/t11/c209/s209.0061/a">
<num value="a">(a)</num>
<content>This section does not apply to a property owners' association that is not authorized by the association's dedicatory instrument to levy a fine.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0061/b">
<num value="b">(b)</num>
<chapeau>A property owners' association board shall adopt an enforcement policy regarding the levying of fines by the property owners' association. The policy must include:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0061/1">
<num value="1">(1)</num>
<content>general categories of restrictive covenants for which the association may assess fines;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0061/2">
<num value="2">(2)</num>
<content>a schedule of fines for each category of violation; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0061/3">
<num value="3">(3)</num>
<content>information regarding hearings described by Section 209.007.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0061/c">
<num value="c">(c)</num>
<content>The enforcement policy adopted pursuant to Subsection (b) may reserve the board's authority to levy a fine from the schedule of fines that varies on a case-by-case basis.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0061/d">
<num value="d">(d)</num>
<chapeau>Each property owners' association shall:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0061/1">
<num value="1">(1)</num>
<chapeau>provide a copy of the policy to an owner of each property in the subdivision by:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.0061/A">
<num value="A">(A)</num>
<content>posting the policy on an Internet website maintained by the property owners' association or an agent acting on behalf of the association and accessible to members of the association; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.0061/B">
<num value="B">(B)</num>
<content>annually sending a copy of the policy, separately or included in routine communication from the property owners' association to property owners, by:</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0061/i">
<num value="i">(i)</num>
<chapeau>hand delivery to the owner;</chapeau>
<clause identifier="/us/tx/pr/t11/c209/s209.0061/ii">
<num value="ii">(ii)</num>
<content>first class mail to the owner's last known mailing address; or</content>
</clause>
<clause identifier="/us/tx/pr/t11/c209/s209.0061/iii">
<num value="iii">(iii)</num>
<content>e-mail to an e-mail address provided to the property owners' association by the owner; and</content>
</clause>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0061/2">
<num value="2">(2)</num>
<content>make the policy available on any publicly accessible Internet website maintained by the property owners' association or an agent acting on behalf of the association.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 666 (H.B. 614), Sec. 1, eff. January 1, 2024.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.0062">
<num value="209.0062">Sec. 209.0062.</num>
<heading>ALTERNATIVE PAYMENT SCHEDULE FOR CERTAIN ASSESSMENTS</heading>
<subsection identifier="/us/tx/pr/t11/c209/s209.0062/a">
<num value="a">(a)</num>
<content>A property owners' association composed of more than 14 lots shall adopt reasonable guidelines to establish an alternative payment schedule by which an owner may make partial payments to the property owners' association for delinquent regular or special assessments or any other amount owed to the association without accruing additional monetary penalties. For purposes of this section, monetary penalties do not include reasonable costs associated with administering the payment plan or interest.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0062/b">
<num value="b">(b)</num>
<content>The minimum term for a payment plan offered by a property owners' association is three months.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0062/c">
<num value="c">(c)</num>
<content>A property owners' association is not required to allow a payment plan for any amount that extends more than 18 months from the date of the owner's request for a payment plan. The association is not required to enter into a payment plan with an owner who failed to honor the terms of a previous payment plan during the two years following the owner's default under the previous payment plan. The association is not required to make a payment plan available to an owner after the period for cure described by Section 209.0064(b)(3) expires. The association is not required to allow an owner to enter into a payment plan more than once in any 12-month period.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0062/d">
<num value="d">(d)</num>
<content>A property owners' association shall file the association's guidelines under this section in the real property records of each county in which the subdivision is located.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0062/e">
<num value="e">(e)</num>
<content>A property owners' association's failure to file as required by this section the association's guidelines in the real property records of each county in which the subdivision is located does not prohibit a property owner from receiving an alternative payment schedule by which the owner may make partial payments to the property owners' association for delinquent regular or special assessments or any other amount owed to the association without accruing additional monetary penalties, as defined by Subsection (a).</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 1282 (H.B. 1228), Sec. 2, eff. January 1, 2012.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1183 (S.B. 1168), Sec. 18, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.0063">
<num value="209.0063">Sec. 209.0063.</num>
<heading>PRIORITY OF PAYMENTS</heading>
<subsection identifier="/us/tx/pr/t11/c209/s209.0063/a">
<num value="a">(a)</num>
<chapeau>Except as provided by Subsection (b), a payment received by a property owners' association from the owner shall be applied to the owner's debt in the following order of priority:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0063/1">
<num value="1">(1)</num>
<content>any delinquent assessment;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0063/2">
<num value="2">(2)</num>
<content>any current assessment;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0063/3">
<num value="3">(3)</num>
<content>any reasonable attorney's fees or reasonable third party collection costs incurred by the association associated solely with assessments or any other charge that could provide the basis for foreclosure;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0063/4">
<num value="4">(4)</num>
<content>any reasonable attorney's fees incurred by the association that are not subject to Subdivision (3);</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0063/5">
<num value="5">(5)</num>
<content>any reasonable fines assessed by the association; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0063/6">
<num value="6">(6)</num>
<content>any other reasonable amount owed to the association.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0063/b">
<num value="b">(b)</num>
<chapeau>If, at the time the property owners' association receives a payment from a property owner, the owner is in default under a payment plan entered into with the association:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0063/1">
<num value="1">(1)</num>
<content>the association is not required to apply the payment in the order of priority specified by Subsection (a); and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0063/2">
<num value="2">(2)</num>
<content>in applying the payment, a fine assessed by the association may not be given priority over any other amount owed to the association.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 1282 (H.B. 1228), Sec. 2, eff. January 1, 2012.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 15, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.0064">
<num value="209.0064">Sec. 209.0064.</num>
<heading>THIRD PARTY COLLECTIONS</heading>
<subsection identifier="/us/tx/pr/t11/c209/s209.0064/a">
<num value="a">(a)</num>
<content>In this section, "collection agent" means a debt collector, as defined by Section 803 of the federal Fair Debt Collection Practices Act (15 U.S.C. Section 1692a).</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0064/b">
<num value="b">(b)</num>
<chapeau>A property owners' association may not hold an owner liable for fees of a collection agent retained by the association unless the association first provides written notice to the owner by certified mail that:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0064/1">
<num value="1">(1)</num>
<content>specifies each delinquent amount and the total amount of the payment required to make the account current;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0064/2">
<num value="2">(2)</num>
<content>if the association is subject to Section 209.0062 or the association's dedicatory instruments contain a requirement to offer a payment plan, describes the options the owner has to avoid having the account turned over to a collection agent, including information regarding availability of a payment plan through the association; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0064/3">
<num value="3">(3)</num>
<content>provides a period of at least 45 days for the owner to cure the delinquency before further collection action is taken.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0064/c">
<num value="c">(c)</num>
<chapeau>An owner is not liable for fees of a collection agent retained by the property owners' association if:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0064/1">
<num value="1">(1)</num>
<content>the obligation for payment by the association to the association's collection agent for fees or costs associated with a collection action is in any way dependent or contingent on amounts recovered; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0064/2">
<num value="2">(2)</num>
<content>the payment agreement between the association and the association's collection agent does not require payment by the association of all fees to a collection agent for the action undertaken by the collection agent.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0064/d">
<num value="d">(d)</num>
<content>The agreement between the property owners' association and the association's collection agent may not prohibit the owner from contacting the association board or the association's managing agent regarding the owner's delinquency.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0064/e">
<num value="e">(e)</num>
<content>A property owners' association may not sell or otherwise transfer any interest in the association's accounts receivables for a purpose other than as collateral for a loan.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 1282 (H.B. 1228), Sec. 2, eff. January 1, 2012.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1183 (S.B. 1168), Sec. 19, eff. September 1, 2015.
Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 16, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.0065">
<num value="209.0065">Sec. 209.0065.</num>
<heading>CREDIT REPORTING SERVICES</heading>
<subsection identifier="/us/tx/pr/t11/c209/s209.0065/a">
<num value="a">(a)</num>
<content>A property owners' association or the association's collection agent may not report any delinquent fines, fees, or assessments to a credit reporting service that are the subject of a pending dispute between the owner and the property owners' association.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0065/b">
<num value="b">(b)</num>
<chapeau>A property owners' association may report the delinquent payment history of assessments, fines, and fees of property owners within its jurisdiction to a credit reporting service only if:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0065/1">
<num value="1">(1)</num>
<content>at least 30 business days before reporting to a credit reporting service, the association sends, via certified mail, hand delivery, electronic delivery, or by other delivery means acceptable between the parties, a detailed report of all delinquent charges owed; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0065/2">
<num value="2">(2)</num>
<content>a property owner has been given the opportunity to enter into a payment plan.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0065/c">
<num value="c">(c)</num>
<content>A property owners' association may not charge a fee to an individual property owner for the reporting under Subsection (b) of the delinquent payment history of assessments, fines, and fees of property owners within the association's jurisdiction to a credit reporting service.</content>
</subsection>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 17, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.007">
<num value="209.007">Sec. 209.007.</num>
<heading>HEARING BEFORE BOARD; ALTERNATIVE DISPUTE RESOLUTION</heading>
<subsection identifier="/us/tx/pr/t11/c209/s209.007/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (d) and only if the owner is entitled to an opportunity to cure the violation, the owner has the right to submit a written request for a hearing to discuss and verify facts and resolve the matter in issue before the board.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.007/b">
<num value="b">(b)</num>
<content>Repealed by Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 22(2), eff. September 1, 2021.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.007/c">
<num value="c">(c)</num>
<content>The association shall hold a hearing under this section not later than the 30th day after the date the board receives the owner's request for a hearing and shall notify the owner of the date, time, and place of the hearing not later than the 10th day before the date of the hearing. The board or the owner may request a postponement, and, if requested, a postponement shall be granted for a period of not more than 10 days. Additional postponements may be granted by agreement of the parties. The owner or the association may make an audio recording of the meeting.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.007/d">
<num value="d">(d)</num>
<content>The notice and hearing provisions of Section 209.006 and this section do not apply if the association files a suit seeking a temporary restraining order or temporary injunctive relief or files a suit that includes foreclosure as a cause of action. If a suit is filed relating to a matter to which those sections apply, a party to the suit may file a motion to compel mediation. The notice and hearing provisions of Section 209.006 and this section do not apply to a temporary suspension of a person's right to use common areas if the temporary suspension is the result of a violation that occurred in a common area and involved a significant and immediate risk of harm to others in the subdivision. The temporary suspension is effective until the board makes a final determination on the suspension action after following the procedures prescribed by this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.007/e">
<num value="e">(e)</num>
<content>An owner or property owners' association may use alternative dispute resolution services.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.007/f">
<num value="f">(f)</num>
<content>Not later than 10 days before the association holds a hearing under this section, the association shall provide to an owner a packet containing all documents, photographs, and communications relating to the matter the association intends to introduce at the hearing.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.007/g">
<num value="g">(g)</num>
<content>If an association does not provide a packet within the period described by Subsection (f), an owner is entitled to an automatic 15-day postponement of the hearing.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.007/h">
<num value="h">(h)</num>
<content>During a hearing, a member of the board or the association's designated representative shall first present the association's case against the owner. An owner or the owner's designated representative is entitled to present the owner's information and issues relevant to the appeal or dispute.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 926, Sec. 1, eff. Jan. 1, 2002.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 18, eff. September 1, 2021.
Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 22(2), eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.008">
<num value="209.008">Sec. 209.008.</num>
<heading>ATTORNEY'S FEES</heading>
<subsection identifier="/us/tx/pr/t11/c209/s209.008/a">
<num value="a">(a)</num>
<content>A property owners' association may collect reimbursement of reasonable attorney's fees and other reasonable costs incurred by the association relating to collecting amounts, including damages, due the association for enforcing restrictions or the bylaws or rules of the association only if the owner is provided a written notice that attorney's fees and costs will be charged to the owner if the delinquency or violation continues after a date certain.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.008/b">
<num value="b">(b)</num>
<content>An owner is not liable for attorney's fees incurred by the association relating to a matter described by the notice under Section 209.006 if the attorney's fees are incurred before the conclusion of the hearing under Section 209.007 or, if the owner does not request a hearing under that section, before the date by which the owner must request a hearing. The owner's presence is not required to hold a hearing under Section 209.007.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.008/c">
<num value="c">(c)</num>
<content>All attorney's fees, costs, and other amounts collected from an owner shall be deposited into an account maintained at a financial institution in the name of the association or its managing agent. Only members of the association's board or its managing agent or employees of its managing agent may be signatories on the account.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.008/d">
<num value="d">(d)</num>
<content>On written request from the owner, the association shall provide copies of invoices for attorney's fees and other costs relating only to the matter for which the association seeks reimbursement of fees and costs.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.008/e">
<num value="e">(e)</num>
<content>The notice provisions of Subsection (a) do not apply to a counterclaim of an association in a lawsuit brought against the association by a property owner.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.008/f">
<num value="f">(f)</num>
<chapeau>If the dedicatory instrument or restrictions of an association allow for nonjudicial foreclosure, the amount of attorney's fees that a property owners' association may include in a nonjudicial foreclosure sale for an indebtedness covered by a property owners' association's assessment lien is limited to the greater of:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.008/1">
<num value="1">(1)</num>
<content>one-third of the amount of all actual costs and assessments, excluding attorney's fees, plus interest and court costs, if those amounts are permitted to be included by law or by the restrictive covenants governing the property; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.008/2">
<num value="2">(2)</num>
<content>$2,500.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.008/g">
<num value="g">(g)</num>
<content>Subsection (f) does not prevent a property owners' association from recovering or collecting attorney's fees in excess of the amounts prescribed by Subsection (f) by other means provided by law.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 926, Sec. 1, eff. Jan. 1, 2002.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.009">
<num value="209.009">Sec. 209.009.</num>
<heading>FORECLOSURE SALE PROHIBITED IN CERTAIN CIRCUMSTANCES</heading>
<chapeau>A property owners' association may not foreclose a property owners' association's assessment lien if the debt securing the lien consists solely of:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.009/1">
<num value="1">(1)</num>
<content>fines assessed by the association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.009/2">
<num value="2">(2)</num>
<content>attorney's fees incurred by the association solely associated with fines assessed by the association; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.009/3">
<num value="3">(3)</num>
<content>amounts added to the owner's account as an assessment under Section 209.005(i) or 209.0057(b-4).</content>
</paragraph>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 926, Sec. 1, eff. Jan. 1, 2002.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1026 (H.B. 2761), Sec. 4, eff. January 1, 2012.
Acts 2015, 84th Leg., R.S., Ch. 1183 (S.B. 1168), Sec. 20, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.0091">
<num value="209.0091">Sec. 209.0091.</num>
<heading>PREREQUISITES TO FORECLOSURE: NOTICE AND OPPORTUNITY TO CURE FOR CERTAIN OTHER LIENHOLDERS</heading>
<subsection identifier="/us/tx/pr/t11/c209/s209.0091/a">
<num value="a">(a)</num>
<chapeau>A property owners' association may not file an application for an expedited court order authorizing foreclosure of the association's assessment lien as described by Section 209.0092(a) or a petition for judicial foreclosure of the association's assessment lien as described by Section 209.0092(d) unless the association has:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0091/1">
<num value="1">(1)</num>
<content>provided written notice of the total amount of the delinquency giving rise to the foreclosure to any other holder of a lien of record on the property whose lien is inferior or subordinate to the association's lien and is evidenced by a deed of trust; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0091/2">
<num value="2">(2)</num>
<content>provided the recipient of the notice an opportunity to cure the delinquency before the 61st day after the date the association mails the notice described in Subdivision (1).</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0091/b">
<num value="b">(b)</num>
<content>Notice under this section must be sent by certified mail to the address for the lienholder shown in the deed records relating to the property that is subject to the property owners' association assessment lien.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0091/c">
<num value="c">(c)</num>
<content>Notwithstanding any other law, notice under this section may be provided to any holder of a lien of record on the property.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 1282 (H.B. 1228), Sec. 2, eff. January 1, 2012.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1183 (S.B. 1168), Sec. 21, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.0092">
<num value="209.0092">Sec. 209.0092.</num>
<heading>JUDICIAL FORECLOSURE REQUIRED</heading>
<subsection identifier="/us/tx/pr/t11/c209/s209.0092/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (c) or (d) and subject to Section 209.009, 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). A property owners' association may use the procedure described by this subsection to foreclose any lien described by the association's dedicatory instruments. A property owners' association whose dedicatory instruments grant a right of foreclosure is considered to have any power of sale required by law as a condition of using the procedure described by this subsection.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0092/b">
<num value="b">(b)</num>
<content>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. 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.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0092/c">
<num value="c">(c)</num>
<content>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.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0092/d">
<num value="d">(d)</num>
<content>A property owners' association authorized to use the procedure described by Subsection (a) may in its discretion elect not to use that procedure and instead foreclose the association's assessment lien under court judgment foreclosing the lien and ordering the sale, pursuant to Rules 309 and 646a, Texas Rules of Civil Procedure.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0092/e">
<num value="e">(e)</num>
<content>This section does not affect any right an association that is not authorized to use the procedure described by Subsection (a) may have to judicially foreclose the association's assessment lien as described by Subsection (d).</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 1282 (H.B. 1228), Sec. 2, eff. September 1, 2011.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1183 (S.B. 1168), Sec. 22, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.0093">
<num value="209.0093">Sec. 209.0093.</num>
<heading>REMOVAL OR ADOPTION OF FORECLOSURE AUTHORITY</heading>
<content>A provision granting a right to foreclose a lien on real property for unpaid amounts due to a property owners' association may be removed from a dedicatory instrument or adopted in a dedicatory instrument by a vote of at least 67 percent of the total votes allocated to property owners in the property owners' association. Owners holding at least 10 percent of all voting interests in the property owners' association may petition the association and require a special meeting to be called for the purposes of taking a vote for the purposes of this section.</content>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 1282 (H.B. 1228), Sec. 2, eff. January 1, 2012.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.0094">
<num value="209.0094">Sec. 209.0094.</num>
<heading>ASSESSMENT LIEN FILING</heading>
<subsection identifier="/us/tx/pr/t11/c209/s209.0094/a">
<num value="a">(a)</num>
<content>In this section, "assessment lien" means a lien, lien affidavit, or other lien instrument evidencing the nonpayment of assessments or other charges owed to a property owners' association.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0094/b">
<num value="b">(b)</num>
<content>An assessment lien filed in the official public records of a county is a legal instrument affecting title to real property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0094/c">
<num value="c">(c)</num>
<content>Before a property owners' association files an assessment lien, the association must provide notices of delinquency in accordance with Subsections (d) and (e).</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0094/d">
<num value="d">(d)</num>
<chapeau>The first notice of delinquency must be provided:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0094/1">
<num value="1">(1)</num>
<content>by first class mail to the property owner's last known mailing address, as reflected in records maintained by the association; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.0094/2">
<num value="2">(2)</num>
<content>by e-mail to an e-mail address the property owner has provided to the property owners' association.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0094/e">
<num value="e">(e)</num>
<content>The second notice of delinquency must be provided by certified mail, return receipt requested, to the property owner's last known mailing address, as reflected in the records maintained by the association, not earlier than the 30th day after notice is given under Subsection (d).</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0094/f">
<num value="f">(f)</num>
<content>A property owners' association may not file an assessment lien before the 90th day after the date notice of delinquency was sent to the property owner under Subsection (e).</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.0094/g">
<num value="g">(g)</num>
<content>Subsections (c), (d), and (e) do not apply to a property owners' association providing a property owner covered by the Servicemembers Civil Relief Act (50 U.S.C. Section 3901 et seq.) the protections to which the owner is entitled under the Act.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 1282 (H.B. 1228), Sec. 2, eff. January 1, 2012.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 807 (H.B. 886), Sec. 1, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.010">
<num value="209.010">Sec. 209.010.</num>
<heading>NOTICE AFTER FORECLOSURE SALE</heading>
<subsection identifier="/us/tx/pr/t11/c209/s209.010/a">
<num value="a">(a)</num>
<content>A property owners' association that conducts a foreclosure sale of an owner's lot must send to the lot owner and to each lienholder of record, not later than the 30th day after the date of the foreclosure sale, a written notice stating the date and time the sale occurred and informing the lot owner and each lienholder of record of the right of the lot owner and lienholder to redeem the property under Section 209.011.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.010/b">
<num value="b">(b)</num>
<chapeau>The notice must be sent by certified mail, return receipt requested, to:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.010/1">
<num value="1">(1)</num>
<content>the lot owner's last known mailing address, as reflected in the records of the property owners' association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.010/2">
<num value="2">(2)</num>
<content>the address of each holder of a lien on the property subject to foreclosure evidenced by the most recent deed of trust filed of record in the real property records of the county in which the property is located; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.010/3">
<num value="3">(3)</num>
<content>the address of each transferee or assignee of a deed of trust described by Subdivision (2) who has provided notice to a property owners' association of such assignment or transfer. Notice provided by a transferee or assignee to a property owners' association shall be in writing, shall contain the mailing address of the transferee or assignee, and shall be mailed by certified mail, return receipt requested, or United States mail with signature confirmation to the property owners' association according to the mailing address of the property owners' association pursuant to the most recent management certificate filed of record pursuant to Section 209.004.</content>
<continuation>(b-1) If a recorded instrument does not include an address for the lienholder, the association does not have a duty to notify the lienholder as provided by this section.</continuation>
<continuation>(b-2) For purposes of this section, the lot owner is deemed to have given approval for the association to notify the lienholder.</continuation>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.010/c">
<num value="c">(c)</num>
<content>Not later than the 30th day after the date the association sends the notice required by Subsection (a), the association must record an affidavit in the real property records of the county in which the lot is located, stating the date on which the notice was sent and containing a legal description of the lot. Any person is entitled to rely conclusively on the information contained in the recorded affidavit.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.010/d">
<num value="d">(d)</num>
<content>The notice requirements of this section also apply to the sale of an owner's lot by a sheriff or constable conducted as provided by a judgment obtained by the property owners' association.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 926, Sec. 1, eff. Jan. 1, 2002.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1176 (H.B. 3479), Sec. 2, eff. September 1, 2009.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.011">
<num value="209.011">Sec. 209.011.</num>
<heading>RIGHT OF REDEMPTION AFTER FORECLOSURE</heading>
<subsection identifier="/us/tx/pr/t11/c209/s209.011/a">
<num value="a">(a)</num>
<content>A property owners' association or other person who purchases occupied property at a sale foreclosing a property owners' association's assessment lien must commence and prosecute a forcible entry and detainer action under Chapter 24 to recover possession of the property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.011/b">
<num value="b">(b)</num>
<content>The owner of property in a residential subdivision or a lienholder of record may redeem the property from any purchaser at a sale foreclosing a property owners' association's assessment lien not later than the 180th day after the date the association mails written notice of the sale to the owner and the lienholder under Section 209.010. A lienholder of record may not redeem the property as provided herein before 90 days after the date the association mails written notice of the sale to the lot owner and the lienholder under Section 209.010, and only if the lot owner has not previously redeemed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.011/c">
<num value="c">(c)</num>
<content>A person who purchases property at a sale foreclosing a property owners' association's assessment lien may not transfer ownership of the property to a person other than a redeeming lot owner during the redemption period.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.011/d">
<num value="d">(d)</num>
<chapeau>To redeem property purchased by the property owners' association at the foreclosure sale, the lot owner or lienholder must pay to the association:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.011/1">
<num value="1">(1)</num>
<content>all amounts due the association at the time of the foreclosure sale;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.011/2">
<num value="2">(2)</num>
<content>interest from the date of the foreclosure sale to the date of redemption on all amounts owed the association at the rate stated in the dedicatory instruments for delinquent assessments or, if no rate is stated, at an annual interest rate of 10 percent;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.011/3">
<num value="3">(3)</num>
<content>costs incurred by the association in foreclosing the lien and conveying the property to the lot owner, including reasonable attorney's fees;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.011/4">
<num value="4">(4)</num>
<content>any assessment levied against the property by the association after the date of the foreclosure sale;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.011/5">
<num value="5">(5)</num>
<content>any reasonable cost incurred by the association, including mortgage payments and costs of repair, maintenance, and leasing of the property; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.011/6">
<num value="6">(6)</num>
<content>the purchase price paid by the association at the foreclosure sale less any amounts due the association under Subdivision (1) that were satisfied out of foreclosure sale proceeds.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.011/e">
<num value="e">(e)</num>
<chapeau>To redeem property purchased at the foreclosure sale by a person other than the property owners' association, the lot owner or lienholder:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.011/1">
<num value="1">(1)</num>
<chapeau>must pay to the association:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.011/A">
<num value="A">(A)</num>
<content>all amounts due the association at the time of the foreclosure sale less the foreclosure sales price received by the association from the purchaser;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.011/B">
<num value="B">(B)</num>
<content>interest from the date of the foreclosure sale through the date of redemption on all amounts owed the association at the rate stated in the dedicatory instruments for delinquent assessments or, if no rate is stated, at an annual interest rate of 10 percent;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.011/C">
<num value="C">(C)</num>
<content>costs incurred by the association in foreclosing the lien and conveying the property to the redeeming lot owner, including reasonable attorney's fees;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.011/D">
<num value="D">(D)</num>
<content>any unpaid assessments levied against the property by the association after the date of the foreclosure sale; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.011/E">
<num value="E">(E)</num>
<content>taxable costs incurred in a proceeding brought under Subsection (a); and</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.011/2">
<num value="2">(2)</num>
<chapeau>must pay to the person who purchased the property at the foreclosure sale:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.011/A">
<num value="A">(A)</num>
<content>any assessments levied against the property by the association after the date of the foreclosure sale and paid by the purchaser;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.011/B">
<num value="B">(B)</num>
<content>the purchase price paid by the purchaser at the foreclosure sale;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.011/C">
<num value="C">(C)</num>
<content>the amount of the deed recording fee;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.011/D">
<num value="D">(D)</num>
<content>the amount paid by the purchaser as ad valorem taxes, penalties, and interest on the property after the date of the foreclosure sale; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.011/E">
<num value="E">(E)</num>
<content>taxable costs incurred in a proceeding brought under Subsection (a).</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.011/f">
<num value="f">(f)</num>
<content>If a lot owner or lienholder redeems the property under this section, the purchaser of the property at foreclosure shall immediately execute and deliver to the redeeming party a deed transferring the property to the lot owner. If a purchaser fails to comply with this section, the lot owner or lienholder may file an action against the purchaser and may recover reasonable attorney's fees from the purchaser if the lot owner or the lienholder is the prevailing party in the action.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.011/g">
<num value="g">(g)</num>
<content>If, before the expiration of the redemption period, the redeeming lot owner or lienholder fails to record the deed from the foreclosing purchaser or fails to record an affidavit stating that the lot owner or lienholder has redeemed the property, the lot owner's or lienholder's right of redemption as against a bona fide purchaser or lender for value expires after the redemption period.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.011/h">
<num value="h">(h)</num>
<chapeau>The purchaser of the property at the foreclosure sale or a person to whom the person who purchased the property at the foreclosure sale transferred the property may presume conclusively that the lot owner or a lienholder did not redeem the property unless the lot owner or a lienholder files in the real property records of the county in which the property is located:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.011/1">
<num value="1">(1)</num>
<content>a deed from the purchaser of the property at the foreclosure sale; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.011/2">
<num value="2">(2)</num>
<chapeau>an affidavit that:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.011/A">
<num value="A">(A)</num>
<content>states that the property has been redeemed;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.011/B">
<num value="B">(B)</num>
<content>contains a legal description of the property; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.011/C">
<num value="C">(C)</num>
<content>includes the name and mailing address of the person who redeemed the property.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.011/i">
<num value="i">(i)</num>
<content>If the property owners' association purchases the property at foreclosure, all rent and other income collected by the association from the date of the foreclosure sale to the date of redemption shall be credited toward the amount owed the association under Subsection (d), and if there are excess proceeds, they shall be refunded to the lot owner. If a person other than the association purchases the property at foreclosure, all rent and other income collected by the purchaser from the date of the foreclosure sale to the date of redemption shall be credited toward the amount owed the purchaser under Subsection (e), and if there are excess proceeds, those proceeds shall be refunded to the lot owner.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.011/j">
<num value="j">(j)</num>
<content>If a person other than the property owners' association is the purchaser at the foreclosure sale, before executing a deed transferring the property to the lot owner, the purchaser shall obtain an affidavit from the association or its authorized agent stating that all amounts owed the association under Subsection (e) have been paid. The association shall provide the purchaser with the affidavit not later than the 10th day after the date the association receives all amounts owed to the association under Subsection (e). Failure of a purchaser to comply with this subsection does not affect the validity of a redemption.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.011/k">
<num value="k">(k)</num>
<content>Property that is redeemed remains subject to all liens and encumbrances on the property before foreclosure. Any lease entered into by the purchaser of property at a sale foreclosing an assessment lien of a property owners' association is subject to the right of redemption provided by this section and the lot owner's right to reoccupy the property immediately after redemption.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.011/l">
<num value="l">(l)</num>
<content>If a lot owner makes partial payment of amounts due the association at any time before the redemption period expires but fails to pay all amounts necessary to redeem the property before the redemption period expires, the association shall refund any partial payments to the lot owner by mailing payment to the owner's last known address as shown in the association's records not later than the 30th day after the expiration date of the redemption period.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.011/m">
<num value="m">(m)</num>
<content>If a lot owner or lienholder sends by certified mail, return receipt requested, a written request to redeem the property on or before the last day of the redemption period, the lot owner's or lienholder's right of redemption is extended until the 10th day after the date the association and any third party foreclosure purchaser provides written notice to the redeeming party of the amounts that must be paid to redeem the property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.011/n">
<num value="n">(n)</num>
<content>After the redemption period and any extended redemption period provided by Subsection (m) expires without a redemption of the property, the association or third party foreclosure purchaser shall record an affidavit in the real property records of the county in which the property is located stating that the lot owner or a lienholder did not redeem the property during the redemption period or any extended redemption period.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.011/o">
<num value="o">(o)</num>
<content>The association or the person who purchased the property at the foreclosure sale may file an affidavit in the real property records of the county in which the property is located that states the date the citation was served in a suit under Subsection (a) and contains a legal description of the property. Any person may rely conclusively on the information contained in the affidavit.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.011/p">
<num value="p">(p)</num>
<content>The rights of a lot owner and a lienholder under this section also apply if the sale of the lot owner's property is conducted by a constable or sheriff as provided by a judgment obtained by the property owners' association.</content>
</subsection>
<sourceCredit>Added by Acts 2001, 77th Leg., ch. 926, Sec. 1, eff. Jan. 1, 2002.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1176 (H.B. 3479), Sec. 3, eff. September 1, 2009.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.012">
<num value="209.012">Sec. 209.012.</num>
<heading>RESTRICTIVE COVENANTS GRANTING EASEMENTS TO CERTAIN PROPERTY OWNERS' ASSOCIATIONS</heading>
<subsection identifier="/us/tx/pr/t11/c209/s209.012/a">
<num value="a">(a)</num>
<content>A property owners' association may not amend a dedicatory instrument to grant the property owners' association an easement through or over an owner's lot without the consent of the owner.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.012/b">
<num value="b">(b)</num>
<content>This section does not prohibit a property owners' association from adopting or enforcing a restriction in a dedicatory instrument that allows the property owners' association to access an owner's lot to remedy a violation of the dedicatory instrument.</content>
</subsection>
<sourceCredit>Added by Acts 2007, 80th Leg., R.S., Ch. 887 (H.B. 2402), Sec. 1, eff. September 1, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.013">
<num value="209.013">Sec. 209.013.</num>
<heading>AUTHORITY OF ASSOCIATION TO AMEND DEDICATORY INSTRUMENT</heading>
<subsection identifier="/us/tx/pr/t11/c209/s209.013/a">
<num value="a">(a)</num>
<content>A dedicatory instrument created by a developer of a residential subdivision or by a property owners' association in which the developer has a majority of the voting rights or that the developer otherwise controls under the terms of the dedicatory instrument may not be amended during the period between the time the developer loses the majority of the voting rights or other form of control of the property owners' association and the time a new board of directors of the association assumes office following the loss of the majority of the voting rights or other form of control.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.013/b">
<num value="b">(b)</num>
<content>A provision in a dedicatory instrument that violates this section is void and unenforceable.</content>
</subsection>
<sourceCredit>Added by Acts 2007, 80th Leg., R.S., Ch. 887 (H.B. 2402), Sec. 2(a), eff. September 1, 2007.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.014">
<num value="209.014">Sec. 209.014.</num>
<heading>MANDATORY ELECTION REQUIRED AFTER FAILURE TO CALL REGULAR MEETING</heading>
<subsection identifier="/us/tx/pr/t11/c209/s209.014/a">
<num value="a">(a)</num>
<content>Notwithstanding any provision in a dedicatory instrument, a board of a property owners' association shall call an annual meeting of the members of the association.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.014/b">
<num value="b">(b)</num>
<content>If a board of a property owners' association does not call an annual meeting of the association members, an owner may demand that a meeting of the association members be called not later than the 30th day after the date of the owner's demand. The owner's demand must be made in writing and sent by certified mail, return receipt requested, to the registered agent of the property owners' association and to the association at the address for the association according to the most recently filed management certificate. A copy of the notice must be sent to each property owner who is a member of the association.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.014/c">
<num value="c">(c)</num>
<content>If the board does not call a meeting of the members of the property owners' association on or before the 30th day after the date of a demand under Subsection (b), three or more owners may form an election committee. The election committee shall file written notice of the committee's formation with the county clerk of each county in which the subdivision is located.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.014/d">
<num value="d">(d)</num>
<chapeau>A notice filed by an election committee must contain:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.014/1">
<num value="1">(1)</num>
<content>a statement that an election committee has been formed to call a meeting of owners who are members of the property owners' association for the sole purpose of electing board members;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.014/2">
<num value="2">(2)</num>
<content>the name and residential address of each committee member; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.014/3">
<num value="3">(3)</num>
<content>the name of the subdivision over which the property owners' association has jurisdiction under a dedicatory instrument.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.014/e">
<num value="e">(e)</num>
<content>Each committee member must sign and acknowledge the notice before a notary or other official authorized to take acknowledgments.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.014/f">
<num value="f">(f)</num>
<content>The county clerk shall enter on the notice the date the notice is filed and record the notice in the county's real property records.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.014/g">
<num value="g">(g)</num>
<content>Only one committee in a subdivision may operate under this section at one time. If more than one committee in a subdivision files a notice, the first committee that files a notice, after having complied with all other requirements of this section, is the committee with the power to act under this section. A committee that does not hold or conduct a successful election within four months after the date the notice is filed with the county clerk is dissolved by operation of law. An election held or conducted by a dissolved committee is ineffective for any purpose under this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.014/h">
<num value="h">(h)</num>
<content>The election committee may call meetings of the owners who are members of the property owners' association for the sole purpose of electing board members. Notice, quorum, and voting provisions contained in the bylaws of the property owners' association apply to any meeting called by the election committee.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 1026 (H.B. 2761), Sec. 5, eff. January 1, 2012.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.015">
<num value="209.015">Sec. 209.015.</num>
<heading>REGULATION OF LAND USE: RESIDENTIAL PURPOSE</heading>
<subsection identifier="/us/tx/pr/t11/c209/s209.015/a">
<num value="a">(a)</num>
<chapeau>In this section:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.015/1">
<num value="1">(1)</num>
<chapeau>"Adjacent lot" means:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.015/A">
<num value="A">(A)</num>
<content>a lot that is contiguous to another lot that fronts on the same street;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.015/B">
<num value="B">(B)</num>
<content>with respect to a corner lot, a lot that is contiguous to the corner lot by either a side property line or a back property line; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.015/C">
<num value="C">(C)</num>
<content>if permitted by the dedicatory instrument, any lot that is contiguous to another lot at the back property line.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.015/2">
<num value="2">(2)</num>
<chapeau>"Residential purpose" with respect to the use of a lot:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.015/A">
<num value="A">(A)</num>
<content>means the location on the lot of any building, structure, or other improvement customarily appurtenant to a residence, as opposed to use for a business or commercial purpose; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.015/B">
<num value="B">(B)</num>
<content>includes the location on the lot of a garage, sidewalk, driveway, parking area, children's swing or playscape, fence, septic system, swimming pool, utility line, or water well and, if otherwise specifically permitted by the dedicatory instrument, the parking or storage of a recreational vehicle.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.015/b">
<num value="b">(b)</num>
<content>Except as provided by this section, a property owners' association may not adopt or enforce a provision in a dedicatory instrument that prohibits or restricts the owner of a lot on which a residence is located from using for residential purposes an adjacent lot owned by the property owner.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.015/c">
<num value="c">(c)</num>
<content>An owner must obtain the approval of the property owners' association or, if applicable, an architectural review authority, as defined by Section 209.00505(a), established by the association or the association's dedicatory instruments, based on criteria prescribed by the dedicatory instruments specific to the use of a lot for residential purposes, including reasonable restrictions regarding size, location, shielding, and aesthetics of the residential purpose, before the owner begins the construction, placement, or erection of a building, structure, or other improvement for the residential purpose on an adjacent lot.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.015/d">
<num value="d">(d)</num>
<chapeau>An owner who elects to use an adjacent lot for residential purposes under this section shall, on the sale or transfer of the lot containing the residence:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.015/1">
<num value="1">(1)</num>
<content>include the adjacent lot in the sales agreement and transfer the lot to the new owner under the same dedicatory conditions; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.015/2">
<num value="2">(2)</num>
<content>restore the adjacent lot to the original condition before the addition of the improvements allowed under this section to the extent that the lot would again be suitable for the construction of a separate residence as originally platted and provided for in the conveyance to the owner.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.015/e">
<num value="e">(e)</num>
<content>An owner may sell the adjacent lot separately only for the purpose of the construction of a new residence that complies with existing requirements in the dedicatory instrument unless the lot has been restored as described by Subsection (d)(2).</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.015/f">
<num value="f">(f)</num>
<content>A provision in a dedicatory instrument that violates this section is void.</content>
</subsection>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 219 (H.B. 35), Sec. 1, eff. June 14, 2013.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 19, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.016">
<num value="209.016">Sec. 209.016.</num>
<heading>REGULATION OF RESIDENTIAL LEASES OR RENTAL AGREEMENTS</heading>
<subsection identifier="/us/tx/pr/t11/c209/s209.016/a">
<num value="a">(a)</num>
<content>Repealed by Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 22(3), eff. September 1, 2021.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.016/b">
<num value="b">(b)</num>
<chapeau>A property owners' association may not adopt or enforce a provision in a dedicatory instrument that:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.016/1">
<num value="1">(1)</num>
<content>requires a lease or rental applicant or a tenant to be submitted to and approved for tenancy by the property owners' association; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.016/2">
<num value="2">(2)</num>
<chapeau>requires the following information to be submitted to a property owners' association regarding a lease or rental applicant or current tenant:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.016/A">
<num value="A">(A)</num>
<content>a consumer or credit report; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c209/s209.016/B">
<num value="B">(B)</num>
<content>a lease or rental application submitted by the applicant, tenant, or that person's agent to the property owner or property owner's agent when applying for tenancy.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.016/c">
<num value="c">(c)</num>
<content>Repealed by Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 22(3), eff. September 1, 2021.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.016/d">
<num value="d">(d)</num>
<content>Nothing in this section shall be construed to prohibit the adoption or enforcement of a provision in a dedicatory instrument establishing a restriction relating to occupancy or leasing.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c209/s209.016/e">
<num value="e">(e)</num>
<chapeau>A property owners' association may request the following information to be submitted to the association regarding a lease or rental applicant:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c209/s209.016/1">
<num value="1">(1)</num>
<content>contact information, including the name, mailing address, phone number, and e-mail address of each person who will reside at a property in the subdivision under a lease; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c209/s209.016/2">
<num value="2">(2)</num>
<content>the commencement date and term of the lease.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 1077 (H.B. 2489), Sec. 1, eff. June 19, 2015.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 20, eff. September 1, 2021.
Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 22(3), eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c209/s209.017">
<num value="209.017">Sec. 209.017.</num>
<heading>JUSTICE COURT JURISDICTION</heading>
<content>An owner of property in a subdivision may bring an action for a violation of this chapter against the property owners' association of the subdivision in the justice court of a precinct in which all or part of the subdivision is located.</content>
<sourceCredit>Added by Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588), Sec. 21, eff. September 1, 2021.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t11/c210">
<num value="210">CHAPTER 210.</num>
<heading>EXTENSION OR MODIFICATION OF RESIDENTIAL RESTRICTIVE COVENANTS BY PETITION IN CERTAIN SUBDIVISIONS</heading>
<section identifier="/us/tx/pr/t11/c210/s210.001">
<num value="210.001">Sec. 210.001.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c210/s210.001/1">
<num value="1">(1)</num>
<content>"Dedicatory instrument" has the meaning assigned by Section 202.001.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c210/s210.001/2">
<num value="2">(2)</num>
<content>"Owner" has the meaning assigned by Section 201.003.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c210/s210.001/3">
<num value="3">(3)</num>
<content>"Property owners' association" has the meaning assigned by Section 202.001.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c210/s210.001/4">
<num value="4">(4)</num>
<content>"Residential real estate subdivision" or "subdivision" has the meaning assigned by Section 201.003, except that in a county described by Section 210.002(1) a subdivision that is a gated community with private streets need not be located in a city, town, or village or within the extraterritorial jurisdiction of a city, town, or village.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c210/s210.001/5">
<num value="5">(5)</num>
<content>"Restrictions" has the meaning assigned by Section 201.003.</content>
</paragraph>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 1180 (S.B. 1018), Sec. 1, eff. September 1, 2005.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 821 (S.B. 1672), Sec. 2, eff. June 19, 2009.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c210/s210.002">
<num value="210.002">Sec. 210.002.</num>
<heading>APPLICABILITY OF CHAPTER</heading>
<chapeau>This chapter applies to a residential real estate subdivision that is located in a county with a population of:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c210/s210.002/1">
<num value="1">(1)</num>
<content>more than 200,000 and less than 233,500; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c210/s210.002/2">
<num value="2">(2)</num>
<content>more than 45,000 and less than 85,000 that is adjacent to a county with a population of more than 200,000 and less than 233,500.</content>
</paragraph>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 1180 (S.B. 1018), Sec. 1, eff. September 1, 2005.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1163 (H.B. 2702), Sec. 111, eff. September 1, 2011.
Acts 2023, 88th Leg., R.S., Ch. 644 (H.B. 4559), Sec. 212, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c210/s210.003">
<num value="210.003">Sec. 210.003.</num>
<heading>FINDINGS AND PURPOSE</heading>
<subsection identifier="/us/tx/pr/t11/c210/s210.003/a">
<num value="a">(a)</num>
<chapeau>The legislature finds that:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c210/s210.003/1">
<num value="1">(1)</num>
<content>the pending expiration of and the inability of owners to extend or modify property restrictions applicable to certain real estate subdivisions in this state creates uncertainty in living conditions and discourages investments in those subdivisions;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c210/s210.003/2">
<num value="2">(2)</num>
<content>owners of land in affected subdivisions are reluctant or unable to provide proper maintenance, upkeep, and repairs of structures because of the pending expiration of restrictions;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c210/s210.003/3">
<num value="3">(3)</num>
<content>financial institutions cannot or will not lend money for investments, maintenance, upkeep, or repairs in affected subdivisions;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c210/s210.003/4">
<num value="4">(4)</num>
<content>these conditions cause dilapidation of housing and other structures and cause unhealthful and unsanitary conditions in affected subdivisions, contrary to the health, safety, and welfare of the public; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c210/s210.003/5">
<num value="5">(5)</num>
<content>the existence of race-related covenants in restrictions, regardless of their unenforceability, is offensive, repugnant, and harmful to members of racial or ethnic minority groups and public policy requires that those covenants be removed.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c210/s210.003/b">
<num value="b">(b)</num>
<content>The purpose of this chapter is to provide a procedure for extending or modifying residential restrictions and to provide for the removal of any restriction or other provision relating to race, religion, or national origin that is void and unenforceable under either the United States Constitution or Section 5.026.</content>
</subsection>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 1180 (S.B. 1018), Sec. 1, eff. September 1, 2005.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c210/s210.004">
<num value="210.004">Sec. 210.004.</num>
<heading>EXTENSION OR MODIFICATION OF RESTRICTIONS</heading>
<subsection identifier="/us/tx/pr/t11/c210/s210.004/a">
<num value="a">(a)</num>
<content>In addition to any procedures provided in a subdivision's restrictions, a property owners' association, or a petition committee comprised of at least three owners, may circulate a petition proposing to extend or modify existing restrictions.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c210/s210.004/b">
<num value="b">(b)</num>
<content>An extension or modification of existing restrictions that is approved by the owners becomes effective when the resolution required by Section 210.008 is filed as a dedicatory instrument with the county clerk of each county in which the subdivision is located.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c210/s210.004/c">
<num value="c">(c)</num>
<content>An extension or modification of existing restrictions that is approved by the owners under this chapter is binding on all properties in the subdivision.</content>
</subsection>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 1180 (S.B. 1018), Sec. 1, eff. September 1, 2005.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c210/s210.005">
<num value="210.005">Sec. 210.005.</num>
<heading>PETITION PROCEDURE</heading>
<subsection identifier="/us/tx/pr/t11/c210/s210.005/a">
<num value="a">(a)</num>
<content>The property owners' association or petition committee shall deliver to each record owner of property in the subdivision a petition describing the exact terms of the proposed extension or modification of the existing restrictions.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c210/s210.005/b">
<num value="b">(b)</num>
<content>The petition must state the date by which a response must be received in order to be counted.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c210/s210.005/c">
<num value="c">(c)</num>
<chapeau>The petition may allow each owner to indicate approval or disapproval of:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c210/s210.005/1">
<num value="1">(1)</num>
<content>the entire proposal; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c210/s210.005/2">
<num value="2">(2)</num>
<content>specific provisions of the proposal.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c210/s210.005/d">
<num value="d">(d)</num>
<content>Separate signature pages may be delivered if the proposed extension or modification is stated fully or referenced on each signature page. A reference may be made by the following or substantially similar wording: "We the undersigned owners of property in the __________ Subdivision indicate by our signatures on this document our approval or disapproval of the proposal(s) circulated by __________ on or about [date] to [extend or modify] our restrictive covenants. We acknowledge that we have fully reviewed the proposal(s)."</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c210/s210.005/e">
<num value="e">(e)</num>
<content>The petition must be sent by certified mail, return receipt requested, to each owner's mailing address as reflected in the appraisal records maintained by the appraisal district in which the owner's property is located.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c210/s210.005/f">
<num value="f">(f)</num>
<content>The signature of an owner on the petition conclusively establishes that the owner received the petition.</content>
</subsection>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 1180 (S.B. 1018), Sec. 1, eff. September 1, 2005.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c210/s210.006">
<num value="210.006">Sec. 210.006.</num>
<heading>VOTE ON PROPOSAL</heading>
<subsection identifier="/us/tx/pr/t11/c210/s210.006/a">
<num value="a">(a)</num>
<content>If the petition allows owners to indicate only approval or disapproval of the entire proposal, the proposal is adopted if owners of at least 66 percent of the real property in the subdivision vote in favor of the proposal. If the petition allows owners to indicate approval or disapproval of specific provisions of the proposal, a provision is adopted if owners of at least 66 percent of the real property in the subdivision vote in favor of the provision.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c210/s210.006/b">
<num value="b">(b)</num>
<content>The property owners' association or petition committee shall exclude votes by lienholders, contract purchasers, and owners of mineral interests.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c210/s210.006/c">
<num value="c">(c)</num>
<content>Except as provided by this subsection, the approval or disapproval of multiple owners of a property may be reflected by the signatures of a majority of the co-owners. The approval or disapproval of owners who are married may be reflected by the signature of one of those owners.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c210/s210.006/d">
<num value="d">(d)</num>
<content>An owner is considered to have cast a vote if the owner signs the petition indicating approval or disapproval of the proposal or one or more specific provisions of the proposal.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c210/s210.006/e">
<num value="e">(e)</num>
<content>The property owners' association or petition committee may only count a vote if the association or committee receives the vote before the deadline stated in the petition.</content>
</subsection>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 1180 (S.B. 1018), Sec. 1, eff. September 1, 2005.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c210/s210.007">
<num value="210.007">Sec. 210.007.</num>
<heading>SUBDIVISION CONSISTING OF MULTIPLE SECTIONS</heading>
<content>If a subdivision consisting of multiple sections, each with its own restrictions, is represented by a single property owners' association, a proposal or specific provision of a proposal is adopted if owners of at least 66 percent of the total number of properties in the subdivision vote in favor of the proposal or provision.</content>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 1180 (S.B. 1018), Sec. 1, eff. September 1, 2005.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c210/s210.008">
<num value="210.008">Sec. 210.008.</num>
<heading>RESOLUTION CERTIFYING RESULTS OF VOTE</heading>
<subsection identifier="/us/tx/pr/t11/c210/s210.008/a">
<num value="a">(a)</num>
<content>The property owners' association or petition committee shall certify the results of a vote under this chapter by a written resolution specifying the number of votes for and against the proposal, or for and against each provision of the proposal, and shall also certify that the petition was delivered to each record owner of property in the subdivision as required by Section 210.005.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c210/s210.008/b">
<num value="b">(b)</num>
<content>The association or committee shall attach to the resolution a statement of the exact terms of the proposed extension or modification of the existing restrictions.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c210/s210.008/c">
<num value="c">(c)</num>
<content>The association or committee shall make the resolution, petition, and signature pages available to any owner on request.</content>
</subsection>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 1180 (S.B. 1018), Sec. 1, eff. September 1, 2005.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c210/s210.009">
<num value="210.009">Sec. 210.009.</num>
<heading>ADDITIONAL PROCEDURES</heading>
<content>The procedures provided by this chapter are in addition to any procedures provided in a subdivision's restrictions for the extension or modification of existing restrictions. The property owners' association or petition committee may propose the extension or modification of restrictions either in accordance with the procedures provided by the subdivision's restrictions or the procedures provided by this chapter.</content>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 1180 (S.B. 1018), Sec. 1, eff. September 1, 2005.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t11/c211">
<num value="211">CHAPTER 211.</num>
<heading>AMENDMENT AND ENFORCEMENT OF RESTRICTIONS IN CERTAIN SUBDIVISIONS</heading>
<section identifier="/us/tx/pr/t11/c211/s211.001">
<num value="211.001">Sec. 211.001.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c211/s211.001/1">
<num value="1">(1)</num>
<content>"Dedicatory instrument" means each governing instrument covering the establishment, maintenance, and operation of a residential subdivision or any similar planned development. The term includes a declaration or similar instrument subjecting real property to restrictive covenants, bylaws, or similar instruments governing the administration or operation of a property owners' association, to properly adopted rules and regulations of the property owners' association, or to all lawful amendments to the covenants, bylaws, instruments, rules, or regulations.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c211/s211.001/2">
<num value="2">(2)</num>
<content>"Lienholder," "owner," "real property records," and "restrictions" have the meanings assigned by Section 201.003.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c211/s211.001/3">
<num value="3">(3)</num>
<content>"Property owners' association" means an incorporated or unincorporated association owned by or whose members consist primarily of the owners of the property covered by the dedicatory instrument and through which the owners, or the board of directors or similar governing body, manage or regulate the residential subdivision or similar planned development.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c211/s211.001/4">
<num value="4">(4)</num>
<chapeau>"Residential real estate subdivision" or "subdivision" means all land encompassed within one or more maps or plats of land that is divided into two or more parts if:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c211/s211.001/A">
<num value="A">(A)</num>
<content>the maps or plats cover land all or part of which is not located within a municipality and:</content>
</subparagraph>
</paragraph>
<subsection identifier="/us/tx/pr/t11/c211/s211.001/i">
<num value="i">(i)</num>
<chapeau>for a county with a population of less than 65,000, is not located within the extraterritorial jurisdiction of a municipality;</chapeau>
<clause identifier="/us/tx/pr/t11/c211/s211.001/ii">
<num value="ii">(ii)</num>
<content>for a county with a population of at least 65,000 and less than 135,000, is located wholly within the extraterritorial jurisdiction of a municipality; or</content>
</clause>
<clause identifier="/us/tx/pr/t11/c211/s211.001/iii">
<num value="iii">(iii)</num>
<content>for a county that borders Lake Buchanan and has a population of at least 21,000 and less than 22,000, is located wholly within the extraterritorial jurisdiction of a municipality;</content>
</clause>
<subparagraph identifier="/us/tx/pr/t11/c211/s211.001/B">
<num value="B">(B)</num>
<content>the land encompassed within the maps or plats is or was burdened by restrictions limiting all or at least a majority of the land area covered by the map or plat, excluding streets and public areas, to residential use only; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c211/s211.001/C">
<num value="C">(C)</num>
<content>all instruments creating the restrictions are recorded in the deed or real property records of a county.</content>
</subparagraph>
</subsection>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 1077 (H.B. 1631), Sec. 1, eff. September 1, 2005.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1125 (H.B. 232), Sec. 1, eff. June 17, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 1242 (S.B. 1853), Sec. 1, eff. September 1, 2013.
Acts 2023, 88th Leg., R.S., Ch. 644 (H.B. 4559), Sec. 213, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c211/s211.002">
<num value="211.002">Sec. 211.002.</num>
<heading>APPLICABILITY OF CHAPTER</heading>
<subsection identifier="/us/tx/pr/t11/c211/s211.002/a">
<num value="a">(a)</num>
<chapeau>This chapter applies only to a residential real estate subdivision or any unit or parcel of a subdivision:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c211/s211.002/1">
<num value="1">(1)</num>
<content>all or part of which is located within an unincorporated area of a county if the county has a population of less than 65,000;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c211/s211.002/2">
<num value="2">(2)</num>
<content>all of which is located within the extraterritorial jurisdiction of a municipality located in a county that has a population of at least 65,000 and less than 135,000;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c211/s211.002/3">
<num value="3">(3)</num>
<content>all of which is located within the extraterritorial jurisdiction of a municipality located in a county that borders Lake Buchanan and has a population of at least 21,000 and less than 22,000; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c211/s211.002/4">
<num value="4">(4)</num>
<content>all or part of which is located within a county that borders Lake Livingston and has a population of less than 55,000.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c211/s211.002/b">
<num value="b">(b)</num>
<chapeau>This chapter applies only to restrictions that affect real property within a residential real estate subdivision or any units or parcels of the subdivision and that, by the express terms of the instrument creating the restrictions:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c211/s211.002/1">
<num value="1">(1)</num>
<content>are not subject to a procedure by which the restrictions may be amended;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c211/s211.002/2">
<num value="2">(2)</num>
<chapeau>may not be amended without the unanimous consent of:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c211/s211.002/A">
<num value="A">(A)</num>
<content>all property owners in the subdivision; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c211/s211.002/B">
<num value="B">(B)</num>
<content>all property owners in any unit or parcel of the subdivision; or</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c211/s211.002/3">
<num value="3">(3)</num>
<chapeau>may not be amended without a written instrument that is:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c211/s211.002/A">
<num value="A">(A)</num>
<content>signed by a majority or more than a majority of the owners of the lots in the subdivision; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c211/s211.002/B">
<num value="B">(B)</num>
<content>filed in the real property records of each county in which all or part of the subdivision is located.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c211/s211.002/c">
<num value="c">(c)</num>
<content>This chapter applies to a restriction regardless of the date on which it was created.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c211/s211.002/d">
<num value="d">(d)</num>
<content>An amendment of a restriction under this chapter is effective on the filing of an instrument reflecting the amendment in the real property records of each county in which all or part of the subdivision is located after the approval of the owners in accordance with the amendment procedure adopted under Section 211.004.</content>
</subsection>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 1077 (H.B. 1631), Sec. 1, eff. September 1, 2005.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1125 (H.B. 232), Sec. 2, eff. June 17, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 1242 (S.B. 1853), Sec. 2, eff. September 1, 2013.
Acts 2015, 84th Leg., R.S., Ch. 901 (S.B. 1852), Sec. 1, eff. June 18, 2015.
Acts 2023, 88th Leg., R.S., Ch. 644 (H.B. 4559), Sec. 214, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c211/s211.003">
<num value="211.003">Sec. 211.003.</num>
<heading>FINDINGS AND PURPOSE</heading>
<subsection identifier="/us/tx/pr/t11/c211/s211.003/a">
<num value="a">(a)</num>
<chapeau>The legislature finds that:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c211/s211.003/1">
<num value="1">(1)</num>
<content>owners of land in certain real estate subdivisions are unable to govern the subdivisions by democratic principles of self-government;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c211/s211.003/2">
<num value="2">(2)</num>
<content>requiring unanimous consent to amend or modify restrictions in affected subdivisions or units or parcels of the subdivisions is impractical and unworkable to bring needed change and improvement;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c211/s211.003/3">
<num value="3">(3)</num>
<content>the inability of owners to amend or modify property restrictions in certain real estate subdivisions in which no zoning regulations apply creates uncertainty in living conditions and discourages investments in those subdivisions;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c211/s211.003/4">
<num value="4">(4)</num>
<content>owners of land in affected subdivisions are reluctant or unable to provide proper maintenance, upkeep, and repairs of structures because of the inability to amend or modify the restrictions in response to changing circumstances;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c211/s211.003/5">
<num value="5">(5)</num>
<content>financial institutions are reluctant to or will not lend money for investments, maintenance, upkeep, or repairs in affected subdivisions;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c211/s211.003/6">
<num value="6">(6)</num>
<content>these conditions will cause dilapidation of housing and other structures and cause unhealthful and unsanitary conditions in affected subdivisions, contrary to the health, safety, and welfare of the public; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c211/s211.003/7">
<num value="7">(7)</num>
<content>the existence of race-related covenants in restrictions, regardless of their unenforceability, is offensive, repugnant, and harmful to members of racial or ethnic minority groups and public policy requires that those covenants be removed.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c211/s211.003/b">
<num value="b">(b)</num>
<content>The purpose of this chapter is to provide a procedure for creating, modifying, or adding to residential restrictions and to provide for the removal of any restriction or other provision relating to race, religion, or national origin that is void and unenforceable under either the United States Constitution or Section 5.026.</content>
</subsection>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 1077 (H.B. 1631), Sec. 1, eff. September 1, 2005.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c211/s211.004">
<num value="211.004">Sec. 211.004.</num>
<heading>CREATION OR MODIFICATION OF PROCEDURE TO AMEND RESTRICTIONS</heading>
<subsection identifier="/us/tx/pr/t11/c211/s211.004/a">
<num value="a">(a)</num>
<content>A property owners' association by a two-thirds vote of the association's governing body may submit a procedure for amending restrictions to a vote of the property owners in the subdivision or in the unit or parcel of the subdivision governed by restrictions.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c211/s211.004/b">
<num value="b">(b)</num>
<content>An amendment procedure submitted to a vote under Subsection (a) binds all property owners in the subdivision or the unit or parcel of the subdivision to which the procedure applies if more than two-thirds of the voting property owners vote in favor of the procedure.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c211/s211.004/c">
<num value="c">(c)</num>
<chapeau>Not later than the 30th day before the date a ballot for a vote under this section must be received to be counted, the property owners' association shall mail to each affected property owner a notice that includes:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c211/s211.004/1">
<num value="1">(1)</num>
<content>the exact wording of the amendment procedure; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c211/s211.004/2">
<num value="2">(2)</num>
<content>the date by which a property owner's ballot must be received to be counted.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c211/s211.004/d">
<num value="d">(d)</num>
<chapeau>The property owners' association shall pay all costs of:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c211/s211.004/1">
<num value="1">(1)</num>
<content>printing and mailing the required notices and ballots; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c211/s211.004/2">
<num value="2">(2)</num>
<content>canvassing, tabulating, and certifying the vote.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c211/s211.004/e">
<num value="e">(e)</num>
<content>A property owner may not cast more than one vote, regardless of the number of lots the person owns. If more than one person owns an interest in a lot, the owners may cast only one vote for that lot. A person may not vote if the person has an interest in a lot only by virtue of being a lienholder.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c211/s211.004/f">
<num value="f">(f)</num>
<content>A ballot cast under this section is secret and may not be counted unless it is placed inside an unmarked envelope that is placed inside another envelope that bears the signature and printed name of the property owner casting the enclosed ballot.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c211/s211.004/g">
<num value="g">(g)</num>
<content>The presiding officer of the property owners' association shall appoint an election canvassing committee and a committee chairperson to canvass and count the votes and determine the outcome.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c211/s211.004/h">
<num value="h">(h)</num>
<content>If the amendment procedure receives the number of votes required under Subsection (b), the election canvassing committee chairperson shall certify the result to the presiding officer of the property owners' association. The presiding officer shall file in the real property records of each county in which all or part of the subdivision is located an instrument that indicates that the procedure was adopted.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c211/s211.004/i">
<num value="i">(i)</num>
<content>If the amendment procedure is not adopted, the property owners' association may not submit the same amendment procedure to a vote under this section on or before the first anniversary of the date the previous votes on the procedure were certified.</content>
</subsection>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 1077 (H.B. 1631), Sec. 1, eff. September 1, 2005.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c211/s211.005">
<num value="211.005">Sec. 211.005.</num>
<heading>EFFECT OF ADOPTING AMENDMENT PROCEDURE</heading>
<content>After the effective date of the adoption of the amendment procedure under this chapter, any proposed amendment to the restrictions described by Section 211.002(b) applicable to the subdivision or unit or parcel of the subdivision, as applicable, must be submitted for approval to the owners under the amendment procedure.</content>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 1077 (H.B. 1631), Sec. 1, eff. September 1, 2005.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t11/c212">
<num value="212">CHAPTER 212.</num>
<heading>EXTENSION OF RESTRICTIONS BY MAJORITY VOTE IN CERTAIN SUBDIVISIONS</heading>
<section identifier="/us/tx/pr/t11/c212/s212.001">
<num value="212.001">Sec. 212.001.</num>
<heading>DEFINITIONS</heading>
<content>In this chapter, "lienholder," "owner," "restrictions," and "residential real estate subdivision" or "subdivision" have the meanings assigned by Section 201.003.</content>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 954 (H.B. 1071), Sec. 2, eff. June 17, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c212/s212.002">
<num value="212.002">Sec. 212.002.</num>
<heading>APPLICABILITY OF CHAPTER</heading>
<chapeau>This chapter applies only to a residential real estate subdivision that:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c212/s212.002/1">
<num value="1">(1)</num>
<content>is located wholly or partly in a municipality with a population of more than two million located in a county with a population of 3.3 million or more; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c212/s212.002/2">
<num value="2">(2)</num>
<chapeau>is subject to restrictions the terms of which:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c212/s212.002/A">
<num value="A">(A)</num>
<content>provide that the restrictions expire;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c212/s212.002/B">
<num value="B">(B)</num>
<content>permit the restrictions to be extended after the initial restriction period expires if a majority of the owners of lots in the subdivision, by a written instrument that is acknowledged and filed for record, signify consent to the extension of the restrictions for a further period the maximum length of which is specified by the restrictions; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c212/s212.002/C">
<num value="C">(C)</num>
<content>do not expressly provide for or expressly prohibit successive extensions of the restrictions after the expiration of the initial extension period.</content>
</subparagraph>
</paragraph>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 954 (H.B. 1071), Sec. 2, eff. June 17, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c212/s212.003">
<num value="212.003">Sec. 212.003.</num>
<heading>PROCEDURE FOR SUCCESSIVE EXTENSIONS</heading>
<subsection identifier="/us/tx/pr/t11/c212/s212.003/a">
<num value="a">(a)</num>
<content>Restrictions may be extended under this chapter by the written consent of the owners of a majority of the lots in the subdivision, without respect to the number of lots owned by a particular owner.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c212/s212.003/b">
<num value="b">(b)</num>
<content>Consent for the purposes of this section may be reflected by an owner's signature on a petition or written ballot.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c212/s212.003/c">
<num value="c">(c)</num>
<chapeau>Petitions, written ballots, or both may be distributed to the owners of lots in the subdivision by any method, including one or both of the following methods:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c212/s212.003/1">
<num value="1">(1)</num>
<content>by door-to-door circulation; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c212/s212.003/2">
<num value="2">(2)</num>
<content>at a meeting of the owners of lots in the subdivision called for the purpose of voting on the proposed extension.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c212/s212.003/d">
<num value="d">(d)</num>
<chapeau>The required signatures must be obtained during the same extension period. The petitions, written ballots, or both, as applicable, must be filed for record in the county in which the subdivision is located before the earlier of:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c212/s212.003/1">
<num value="1">(1)</num>
<content>the first anniversary of the date on which the first signature is obtained; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c212/s212.003/2">
<num value="2">(2)</num>
<content>the expiration of the extension period during which the signatures are collected.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c212/s212.003/e">
<num value="e">(e)</num>
<content>Restrictions may be extended under this chapter only once during each unexpired extension period.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 954 (H.B. 1071), Sec. 2, eff. June 17, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c212/s212.004">
<num value="212.004">Sec. 212.004.</num>
<heading>EFFECT OF OWNER SIGNATURE</heading>
<subsection identifier="/us/tx/pr/t11/c212/s212.004/a">
<num value="a">(a)</num>
<content>The vote of multiple owners of a lot may be reflected by the signature of one of the owners.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c212/s212.004/b">
<num value="b">(b)</num>
<content>After an owner signs a petition or ballot under Section 212.003 or 212.007, the owner's subsequent conveyance of the owner's interest in a lot or unplatted real property in the subdivision does not affect the validity of the signature for the purposes of that section.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 954 (H.B. 1071), Sec. 2, eff. June 17, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c212/s212.005">
<num value="212.005">Sec. 212.005.</num>
<heading>PROPERTY OWNERS' ASSOCIATION NOT REQUIRED</heading>
<content>Restrictions may be extended under this chapter without the creation of or action by a property owners' association, homeowners association, community association, civic club, or similar organization.</content>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 954 (H.B. 1071), Sec. 2, eff. June 17, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c212/s212.006">
<num value="212.006">Sec. 212.006.</num>
<heading>EFFECTIVE DATE OF EXTENSION; LENGTH OF EXTENSION PERIOD</heading>
<subsection identifier="/us/tx/pr/t11/c212/s212.006/a">
<num value="a">(a)</num>
<content>An extension of restrictions under this chapter takes effect on the date the petitions, written ballots, or both, as applicable, sufficient to reflect the consent required by Section 212.003 are filed and recorded in the real property records of the county in which the subdivision is located.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c212/s212.006/b">
<num value="b">(b)</num>
<content>Subject to Section 212.007, an extension of restrictions under this chapter is for a period equal to the original term of the restrictions or a shorter period agreed to by the owners of a majority of the lots in the subdivision in the petitions, written ballots, or both, as applicable, signed under Section 212.003.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 954 (H.B. 1071), Sec. 2, eff. June 17, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c212/s212.007">
<num value="212.007">Sec. 212.007.</num>
<heading>TERMINATION OF RESTRICTIONS</heading>
<subsection identifier="/us/tx/pr/t11/c212/s212.007/a">
<num value="a">(a)</num>
<chapeau>Restrictions extended under this chapter may be terminated before their expiration date if:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c212/s212.007/1">
<num value="1">(1)</num>
<content>the consent of the owners of a majority of the lots in the subdivision to the termination of the restrictions on a specified date is obtained in the same manner as consent to the extension of restrictions is obtained under this chapter; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c212/s212.007/2">
<num value="2">(2)</num>
<chapeau>the petitions, written ballots, or both, as applicable, sufficient to reflect the required consent to termination are filed for record in the real property records of the county in which the subdivision is located before the earlier of:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c212/s212.007/A">
<num value="A">(A)</num>
<content>the first anniversary of the date on which the first signature consenting to termination is obtained; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c212/s212.007/B">
<num value="B">(B)</num>
<content>a date specified under Subsection (b)(2).</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c212/s212.007/b">
<num value="b">(b)</num>
<chapeau>Petitions, written ballots, or both, as applicable, used to extend restrictions under this section may provide that:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c212/s212.007/1">
<num value="1">(1)</num>
<content>the restrictions may be terminated only on one or more termination dates specified in the petitions, written ballots, or both, as applicable, used to extend the restrictions; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c212/s212.007/2">
<num value="2">(2)</num>
<content>the petitions, written ballots, or both, as applicable, sufficient to reflect the required consent to termination must be filed for record before a time specified in the petitions, written ballots, or both, as applicable.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 954 (H.B. 1071), Sec. 2, eff. June 17, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c212/s212.008">
<num value="212.008">Sec. 212.008.</num>
<heading>APPLICABILITY OF EXTENDED RESTRICTIONS</heading>
<subsection identifier="/us/tx/pr/t11/c212/s212.008/a">
<num value="a">(a)</num>
<content>An extension of restrictions under this chapter is binding on all lots and all unplatted real property in the subdivision, without regard to whether the owner or owners of any individual lot or unplatted real property signify consent to extend the restrictions. Any statute authorizing a property owner to opt out of the applicability of restrictions to the owner's property does not apply to restrictions extended under this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c212/s212.008/b">
<num value="b">(b)</num>
<content>An extension of restrictions under this chapter is binding on a lienholder or a person who acquires title to property at a foreclosure sale or by deed from a foreclosing lienholder.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 954 (H.B. 1071), Sec. 2, eff. June 17, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c212/s212.009">
<num value="212.009">Sec. 212.009.</num>
<heading>UNCONSTITUTIONAL RESTRICTIONS NOT EXTENDED</heading>
<content>If a provision in restrictions extended under this chapter is void and unenforceable under the United States Constitution, the restrictions are considered as if the void and unenforceable provision was never contained in the restrictions.</content>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 954 (H.B. 1071), Sec. 2, eff. June 17, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c212/s212.010">
<num value="212.010">Sec. 212.010.</num>
<heading>USE OF ORIGINAL EXTENSION PROCEDURE; PROCEDURES CUMULATIVE</heading>
<subsection identifier="/us/tx/pr/t11/c212/s212.010/a">
<num value="a">(a)</num>
<content>In addition to the procedure provided by this chapter for the extension of restrictions, the procedure provided by the original restrictions for the initial extension of the restrictions, including the requirement that a specified percentage of a specified class approve the extension, may be used for successive extensions of the original restrictions, provided that the approval obtained includes the approval of the owners of not less than a majority of the lots in the subdivision.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c212/s212.010/b">
<num value="b">(b)</num>
<content>An extension of the restrictions as described by Subsection (a) is for a period equal to the original term of the restrictions or a shorter period agreed to by the owners of a majority of the lots in the subdivision.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c212/s212.010/c">
<num value="c">(c)</num>
<content>The procedure provided by this chapter for the extension or termination of restrictions is cumulative of and not in lieu of any other method by which restrictions of a subdivision to which this chapter applies may be added to, modified, created, extended, or terminated.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 954 (H.B. 1071), Sec. 2, eff. June 17, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c212/s212.011">
<num value="212.011">Sec. 212.011.</num>
<heading>CONSTRUCTION OF CHAPTER AND EXTENDED RESTRICTIONS</heading>
<subsection identifier="/us/tx/pr/t11/c212/s212.011/a">
<num value="a">(a)</num>
<content>This chapter and any petition or ballot made or action taken in connection with an attempt to comply with this chapter shall be liberally construed to effectuate the intent of this chapter and the petition, ballot, or action.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c212/s212.011/b">
<num value="b">(b)</num>
<content>A deed restriction that is extended under this chapter shall be liberally construed to give effect to the restriction's purposes and intent.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 954 (H.B. 1071), Sec. 2, eff. June 17, 2011.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t11/c214">
<num value="214">CHAPTER 214.</num>
<heading>AMENDMENT OF DEDICATORY INSTRUMENTS OF CERTAIN MIXED-USE REAL ESTATE DEVELOPMENTS</heading>
<section identifier="/us/tx/pr/t11/c214/s214.001">
<num value="214.001">Sec. 214.001.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c214/s214.001/1">
<num value="1">(1)</num>
<chapeau>"Current developer" means an owner of one or more tracts or lots in a mixed-use real estate development, or the owner's affiliate, who:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c214/s214.001/A">
<num value="A">(A)</num>
<content>is the current declarant in the declaration governing the development; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c214/s214.001/B">
<num value="B">(B)</num>
<content>currently holds the developer rights for the development.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c214/s214.001/2">
<num value="2">(2)</num>
<content>"Declaration" means an instrument filed in the real property records of a county that includes restrictive covenants governing a real estate development.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c214/s214.001/3">
<num value="3">(3)</num>
<content>"Dedicatory instrument" has the meaning assigned by Section 202.001.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c214/s214.001/4">
<num value="4">(4)</num>
<chapeau>"Mixed-use real estate development" means a real estate development that:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c214/s214.001/A">
<num value="A">(A)</num>
<content>contains at least 200 acres and not more than 250 acres of deed-restricted property composed of at least 10 separate tracts or parcels of property;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c214/s214.001/B">
<num value="B">(B)</num>
<content>includes:</content>
</subparagraph>
</paragraph>
<subsection identifier="/us/tx/pr/t11/c214/s214.001/i">
<num value="i">(i)</num>
<chapeau>commercial properties, including hotel and retail properties, that constitute at least 70 percent of the total land area of the development; and</chapeau>
<clause identifier="/us/tx/pr/t11/c214/s214.001/ii">
<num value="ii">(ii)</num>
<content>office properties that constitute at least 50 percent of the total land area of the development;</content>
</clause>
<subparagraph identifier="/us/tx/pr/t11/c214/s214.001/C">
<num value="C">(C)</num>
<content>may include other real estate uses;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c214/s214.001/D">
<num value="D">(D)</num>
<content>is governed by a property owners' association; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c214/s214.001/E">
<num value="E">(E)</num>
<content>is subject to a dedicatory instrument that:</content>
</subparagraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c214/s214.001/i">
<num value="i">(i)</num>
<chapeau>requires mandatory membership in the property owners' association;</chapeau>
<clause identifier="/us/tx/pr/t11/c214/s214.001/ii">
<num value="ii">(ii)</num>
<content>authorizes the property owners' association to collect a regular assessment on all or a majority of the property in the development;</content>
</clause>
<clause identifier="/us/tx/pr/t11/c214/s214.001/iii">
<num value="iii">(iii)</num>
<content>requires the approval of owners of more than:</content>
</clause>
</subsection>
<subsection identifier="/us/tx/pr/t11/c214/s214.001/a">
<num value="a">(a)</num>
<content>90 percent of the ground area constituting the development to change a provision of the dedicatory instrument governing the permitted use of a property; or</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c214/s214.001/b">
<num value="b">(b)</num>
<chapeau>60 percent of the ground area constituting the development to change a provision of the dedicatory instrument that is not related to the permitted use of a property; and</chapeau>
<clause identifier="/us/tx/pr/t11/c214/s214.001/iv">
<num value="iv">(iv)</num>
<content>provides that voting for an amendment is based on the number of acres owned by each owner.</content>
</clause>
<paragraph identifier="/us/tx/pr/t11/c214/s214.001/5">
<num value="5">(5)</num>
<content>"Property owners' association" has the meaning assigned by Section 202.001.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 1228 (S.B. 1845), Sec. 1, eff. September 1, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c214/s214.002">
<num value="214.002">Sec. 214.002.</num>
<heading>APPLICABILITY OF CHAPTER</heading>
<subsection identifier="/us/tx/pr/t11/c214/s214.002/a">
<num value="a">(a)</num>
<chapeau>This chapter applies only to a mixed-use real estate development that is located in:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c214/s214.002/1">
<num value="1">(1)</num>
<content>a municipality with a population of two million or more; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c214/s214.002/2">
<num value="2">(2)</num>
<content>a county with a population of 3.3 million or more.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c214/s214.002/b">
<num value="b">(b)</num>
<chapeau>This chapter does not apply to:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c214/s214.002/1">
<num value="1">(1)</num>
<content>a mixed-use real estate development that includes single-family residential properties; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c214/s214.002/2">
<num value="2">(2)</num>
<content>a condominium subject to Chapter 81 or 82.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c214/s214.002/c">
<num value="c">(c)</num>
<content>This chapter applies to a dedicatory instrument regardless of the date on which the dedicatory instrument was created.</content>
</subsection>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 1228 (S.B. 1845), Sec. 1, eff. September 1, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c214/s214.003">
<num value="214.003">Sec. 214.003.</num>
<heading>AMENDMENT OF DEDICATORY INSTRUMENT</heading>
<subsection identifier="/us/tx/pr/t11/c214/s214.003/a">
<num value="a">(a)</num>
<content>This section supersedes any conflicting requirement in a dedicatory instrument of a mixed-use real estate development.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c214/s214.003/b">
<num value="b">(b)</num>
<content>To the extent of any conflict with another provision of this title, this section prevails.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c214/s214.003/c">
<num value="c">(c)</num>
<content>Except as provided by Subsection (d), a declaration of a mixed-use real estate development may be amended only by a vote of a majority of the total votes allocated to property owners entitled to vote on the amendment of the declaration.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c214/s214.003/d">
<num value="d">(d)</num>
<content>If the declaration contains a lower approval requirement than prescribed by Subsection (c), the approval requirement in the declaration controls. If the declaration is silent as to voting rights for an amendment, the declaration may be amended by a vote of a majority of the total votes allocated to property owners entitled to vote on the amendment of the declaration.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c214/s214.003/e">
<num value="e">(e)</num>
<content>While the mixed-use real estate development has a current developer, an amendment made to the declaration under this section requires the current developer to consent to the amendment to be valid.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c214/s214.003/f">
<num value="f">(f)</num>
<content>A bylaw of a mixed-use real estate development may not be amended to conflict with this section.</content>
</subsection>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 1228 (S.B. 1845), Sec. 1, eff. September 1, 2019.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t11/c215">
<num value="215">CHAPTER 215.</num>
<heading>MASTER MIXED-USE PROPERTY OWNERS' ASSOCIATIONS</heading>
<section identifier="/us/tx/pr/t11/c215/s215.001">
<num value="215.001">Sec. 215.001.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c215/s215.001/1">
<num value="1">(1)</num>
<content>"Appraised value" means the property value determined by the appraisal district that establishes property values for taxing entities levying taxes on property in a mixed-use development.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.001/2">
<num value="2">(2)</num>
<content>"Property owners' association" or "association" means, unless otherwise indicated, a master mixed-use property owners' association.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.001/3">
<num value="3">(3)</num>
<content>"Dedicatory instrument" has the meaning assigned by Section 209.002.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.001/4">
<num value="4">(4)</num>
<content>"Self-help" means the process by which a property owners' association takes remedial action with regard to property governed by the association.</content>
</paragraph>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 1167 (H.B. 2869), Sec. 1, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c215/s215.002">
<num value="215.002">Sec. 215.002.</num>
<heading>APPLICABILITY OF CHAPTER</heading>
<subsection identifier="/us/tx/pr/t11/c215/s215.002/a">
<num value="a">(a)</num>
<chapeau>This chapter applies to a property owners' association that:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c215/s215.002/1">
<num value="1">(1)</num>
<chapeau>includes:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c215/s215.002/A">
<num value="A">(A)</num>
<content>commercial properties, including hotel and retail properties, that constitute at least 35 percent of the total appraised property value of the mixed-use development governed by the association;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c215/s215.002/B">
<num value="B">(B)</num>
<content>single-family attached and detached properties that constitute at least 25 percent of the total appraised property value of the mixed-use development governed by the association; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c215/s215.002/C">
<num value="C">(C)</num>
<content>multifamily properties that constitute at least 10 percent of the total appraised property value of the mixed-use development governed by the association;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.002/2">
<num value="2">(2)</num>
<content>governs at least 6,000 acres of deed-restricted property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.002/3">
<num value="3">(3)</num>
<content>has at least 10 incorporated residential or commercial property owners' associations that are members of and subject to the dedicatory instruments of the master mixed-use property owners' association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.002/4">
<num value="4">(4)</num>
<content>has at least 3,400 platted and developed single-family residential properties and at least 400 separately platted commercial properties, including office, industrial, hotel, and retail properties, which together constitute at least 30 million square feet of building area available for rental; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.002/5">
<num value="5">(5)</num>
<content>participates in the maintenance of public space, including parks, medians, and lakefronts, owned by local, including county, or state governmental entities.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.002/b">
<num value="b">(b)</num>
<chapeau>This chapter applies to property that is:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c215/s215.002/1">
<num value="1">(1)</num>
<content>governed by a property owners' association described by Subsection (a);</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.002/2">
<num value="2">(2)</num>
<content>located in a master mixed-use development; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.002/3">
<num value="3">(3)</num>
<chapeau>subject to a provision, including a restriction, in a declaration that:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c215/s215.002/A">
<num value="A">(A)</num>
<content>requires mandatory membership in the association; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c215/s215.002/B">
<num value="B">(B)</num>
<content>authorizes the association to collect a regular or special assessment on all or a majority of the property in the development.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.002/c">
<num value="c">(c)</num>
<content>Except as otherwise provided by this chapter, this chapter applies only to a master mixed-use property owners' association and not to the independent property owners' associations that are members of the master mixed-use property owners' association.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 1167 (H.B. 2869), Sec. 1, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c215/s215.003">
<num value="215.003">Sec. 215.003.</num>
<heading>APPLICABILITY OF CHAPTER</heading>
<content>Chapter 209 does not apply to a property owners' association subject to this chapter.</content>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 1167 (H.B. 2869), Sec. 1, eff. September 1, 2011.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 673 (H.B. 1824), Sec. 1, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c215/s215.004">
<num value="215.004">Sec. 215.004.</num>
<heading>CONFLICTS OF LAW</heading>
<content>Notwithstanding any other provision of law, the provisions of this chapter prevail over a conflicting or inconsistent provision of law relating to independent property owners' associations.</content>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 1167 (H.B. 2869), Sec. 1, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c215/s215.005">
<num value="215.005">Sec. 215.005.</num>
<heading>BOARD POWERS</heading>
<chapeau>In addition to any other powers provided by applicable law and this chapter, and unless otherwise provided by the dedicatory instruments of the property owners' association, the association, acting through its board of directors, may:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c215/s215.005/1">
<num value="1">(1)</num>
<content>adopt and amend bylaws;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.005/2">
<num value="2">(2)</num>
<content>adopt and amend budgets for revenues, expenditures, and reserves and collect assessments for common expenses from property owners;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.005/3">
<num value="3">(3)</num>
<content>adopt reasonable rules;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.005/4">
<num value="4">(4)</num>
<content>hire and terminate managing agents and other agents, employees, and independent contractors;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.005/5">
<num value="5">(5)</num>
<content>institute, defend, intervene in, settle, or compromise litigation or administrative proceedings on matters affecting a property governed by the association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.005/6">
<num value="6">(6)</num>
<content>make contracts and incur liabilities relating to the operation of the association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.005/7">
<num value="7">(7)</num>
<content>regulate the use, maintenance, repair, replacement, modification, and appearance of the property governed by the association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.005/8">
<num value="8">(8)</num>
<content>make improvements to be included as a part of the common area;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.005/9">
<num value="9">(9)</num>
<content>acquire, hold, encumber, and convey in its own name any right, title, or interest to real or personal property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.005/10">
<num value="10">(10)</num>
<content>purchase an investment property that is not part of the common area;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.005/11">
<num value="11">(11)</num>
<content>grant easements, leases, licenses, and concessions through or over the common elements;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.005/12">
<num value="12">(12)</num>
<content>impose and receive payments, fees, or charges for the use, rental, or operation of the common area and for services provided to property owners;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.005/13">
<num value="13">(13)</num>
<content>impose interest, late charges, and, if applicable, returned check charges for late payments of regular assessments or special assessments;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.005/14">
<num value="14">(14)</num>
<content>charge costs to an owner's assessment account and collect the costs in any manner provided in the restrictions for the collection of assessments;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.005/15">
<num value="15">(15)</num>
<content>adopt and amend rules regulating the collection of delinquent assessments;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.005/16">
<num value="16">(16)</num>
<content>impose reasonable charges for preparing, recording, or copying amendments to resale certificates or statements of unpaid assessments;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.005/17">
<num value="17">(17)</num>
<content>purchase insurance and fidelity bonds, including directors' and officers' liability insurance, that the board considers appropriate or necessary;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.005/18">
<num value="18">(18)</num>
<content>subject to the requirements of the provisions described by Section 1.008(d), Business Organizations Code, and by majority vote of the board, indemnify a director or officer of the association who was, is, or may be made a named defendant or respondent in a proceeding because the person is or was a director or officer;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.005/19">
<num value="19">(19)</num>
<chapeau>if the restrictions vest the architectural control authority in the association:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c215/s215.005/A">
<num value="A">(A)</num>
<content>implement written architectural control guidelines for its own use, or record the guidelines in the real property records of the applicable county; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c215/s215.005/B">
<num value="B">(B)</num>
<content>modify the guidelines as the needs of the development change;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.005/20">
<num value="20">(20)</num>
<content>exercise self-help with regard to property governed by the association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.005/21">
<num value="21">(21)</num>
<content>exercise other powers conferred by the dedicatory instruments;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.005/22">
<num value="22">(22)</num>
<content>exercise other powers necessary and proper for the governance and operation of the association; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.005/23">
<num value="23">(23)</num>
<content>exercise any other powers that may be exercised in this state by a corporation of the same type as the association.</content>
</paragraph>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 1167 (H.B. 2869), Sec. 1, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c215/s215.006">
<num value="215.006">Sec. 215.006.</num>
<heading>ANNUAL MEETING OF ASSOCIATION MEMBERS; NOTICE OF ANNUAL OR SPECIAL MEETING</heading>
<subsection identifier="/us/tx/pr/t11/c215/s215.006/a">
<num value="a">(a)</num>
<content>An annual meeting of members of a property owners' association must be conducted in accordance with the association's dedicatory instruments.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.006/b">
<num value="b">(b)</num>
<content>Unless otherwise provided by a dedicatory instrument, an annual meeting of the property owners' association members is open to association members and must be held in a county in which all or part of the property governed by the association is located or in a county adjacent to that county.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.006/c">
<num value="c">(c)</num>
<content>Unless otherwise provided by a dedicatory instrument, the board shall give members notice of the date, time, place, and subject of an annual or special meeting of the members. The notice must be delivered to each member not later than the 10th day and not earlier than the 60th day before the date of the meeting.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.006/d">
<num value="d">(d)</num>
<chapeau>A notice under Subsection (c) must be posted in a conspicuous manner reasonably designed to provide notice to association members:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c215/s215.006/1">
<num value="1">(1)</num>
<content>in a place located outside the corporate offices of the association that is accessible by the general membership during normal business hours; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.006/2">
<num value="2">(2)</num>
<content>on any Internet website maintained by the association.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.006/e">
<num value="e">(e)</num>
<content>Unless otherwise provided by a dedicatory instrument, any number of the members may attend the meeting by use of videoconferencing or a similar telecommunication method for purposes of establishing full participation in the meeting.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 1167 (H.B. 2869), Sec. 1, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c215/s215.007">
<num value="215.007">Sec. 215.007.</num>
<heading>BOARD MEETINGS</heading>
<subsection identifier="/us/tx/pr/t11/c215/s215.007/a">
<num value="a">(a)</num>
<content>A meeting of the board of directors of a property owners' association must be conducted in accordance with the association's dedicatory instruments.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.007/b">
<num value="b">(b)</num>
<content>Unless otherwise provided by a dedicatory instrument, elected directors who represent the commercial and residential membership attend and conduct the business of the property owners' association at a meeting under this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.007/c">
<num value="c">(c)</num>
<content>In this section, a board meeting has the meaning assigned by a dedicatory instrument. Notwithstanding this subsection, the term does not include the gathering of a quorum of the board at any other venue, including at a social function unrelated to the business of the association, or the attendance by a quorum of the board at a regional, state, or national convention, workshop, ceremonial event, or press conference, if formal action is not taken and any discussion of association business is incidental to the social function, convention, workshop, ceremonial event, or press conference.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.007/d">
<num value="d">(d)</num>
<content>Unless otherwise provided by a dedicatory instrument, the board shall keep a record of each regular, emergency, or special board meeting in the form of written minutes or an audio recording of the meeting. A record of a meeting must state the subject of each motion or inquiry, regardless of whether the board takes action on the motion or inquiry, and indicate each vote, order, decision, or other action taken by the board. The board shall make meeting records, including approved minutes, available to a member for inspection and copying, at the member's expense, during the normal business hours of the association on the member's written request to the board or the board's representative. The board shall approve the minutes of a board meeting not later than the next regular board meeting.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.007/e">
<num value="e">(e)</num>
<content>Unless otherwise provided by a dedicatory instrument, before the board calls an executive session, the board shall convene in a regular or special board meeting for which notice has been given as provided by this section. During that board meeting, the presiding board member may call an executive session by announcing that an executive session will be held to deliberate a matter described by Subsection (f) and identifying the specific subdivision of Subsection (f) under which the executive session will be held. A vote or other action item may not be taken in executive session. An executive session is not subject to the requirements of Subsection (d).</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.007/f">
<num value="f">(f)</num>
<chapeau>Unless otherwise provided by a dedicatory instrument, a property owners' association board may meet in executive session to deliberate:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c215/s215.007/1">
<num value="1">(1)</num>
<content>anticipated or pending litigation, settlement offers, or interpretations of the law with the association's legal counsel;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.007/2">
<num value="2">(2)</num>
<content>complaints or charges against or issues regarding a board member or an agent, employee, contractor, or other representative of the association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.007/3">
<num value="3">(3)</num>
<content>all financial matters concerning a specific property owner;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.007/4">
<num value="4">(4)</num>
<content>a payment plan for an association member who has a financial obligation to the association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.007/5">
<num value="5">(5)</num>
<content>a foreclosure of a lien;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.007/6">
<num value="6">(6)</num>
<content>an enforcement action against an association member, including for nonpayment of amounts due;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.007/7">
<num value="7">(7)</num>
<content>the purchase, exchange, lease, or value of real property, if the board determines in good faith that deliberation in an open board meeting may have a detrimental effect on the association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.007/8">
<num value="8">(8)</num>
<content>business and financial issues relating to the negotiation of a contract, if the board determines in good faith that deliberation in an open board meeting may have a detrimental effect on the position of the association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.007/9">
<num value="9">(9)</num>
<content>matters involving the invasion of privacy of an individual owner;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.007/10">
<num value="10">(10)</num>
<content>an employee matter; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.007/11">
<num value="11">(11)</num>
<content>any other matter the board considers necessary or reasonable to further assist the association's operation.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 1167 (H.B. 2869), Sec. 1, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c215/s215.008">
<num value="215.008">Sec. 215.008.</num>
<heading>VOTING</heading>
<subsection identifier="/us/tx/pr/t11/c215/s215.008/a">
<num value="a">(a)</num>
<content>The number of votes to which an individual or corporation who is a member of a property owners' association is entitled is determined by the dedicatory instruments of the association.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.008/b">
<num value="b">(b)</num>
<content>Each corporation or individual who is a member of the property owners' association may vote by proxy as provided for nonprofit corporations under Sections 22.160(b) and (c), Business Organizations Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.008/c">
<num value="c">(c)</num>
<content>Notwithstanding any provision of the certificate of formation or bylaws to the contrary, a member vote on any matter may be conducted by mail, by facsimile transmission, by e-mail, or by any combination of those methods.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.008/d">
<num value="d">(d)</num>
<content>Notwithstanding any provision of the certificate of formation, declaration, or bylaws to the contrary, the declaration and any supplementary declaration, including amendments, modifications, or corrections, may be amended by a simple majority of the eligible votes being cast in favor of the amendment.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 1167 (H.B. 2869), Sec. 1, eff. September 1, 2011.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 673 (H.B. 1824), Sec. 2, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c215/s215.009">
<num value="215.009">Sec. 215.009.</num>
<heading>RESTRICTIVE COVENANTS</heading>
<subsection identifier="/us/tx/pr/t11/c215/s215.009/a">
<num value="a">(a)</num>
<chapeau>A property owners' association may enforce its restrictive covenants as follows:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c215/s215.009/1">
<num value="1">(1)</num>
<content>by exercising discretionary authority relating to a restrictive covenant unless a court has determined by a preponderance of the evidence that the exercise of discretionary authority was arbitrary, capricious, or discriminatory; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.009/2">
<num value="2">(2)</num>
<content>by initiating, defending, or intervening in litigation or an administrative proceeding affecting the enforcement of a restrictive covenant or the protection, preservation, or operation of property subject to the association's dedicatory instruments.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.009/b">
<num value="b">(b)</num>
<content>If the association prevails in an action to enforce restrictive covenants, the association may recover reasonable attorney's fees and costs incurred.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.009/c">
<num value="c">(c)</num>
<content>An association may use self-help to enforce its restrictive covenants against a residential or commercial property owner as necessary to prevent immediate harm to a person or property, or as otherwise reasonable. If a property owner commits a subsequent repeat violation of the restrictive covenants within 12 months of the initial violation, the association is not required to provide the property owner with advance notice before the association implements self-help.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.009/d">
<num value="d">(d)</num>
<content>For purposes of Subsection (c), an advance, annual notice of maintenance requirements is considered notice to the extent notice is required.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 1167 (H.B. 2869), Sec. 1, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c215/s215.010">
<num value="215.010">Sec. 215.010.</num>
<heading>ATTORNEY'S FEES IN BREACH OF RESTRICTIVE COVENANT ACTION</heading>
<content>In an action based on breach of a restrictive covenant, the prevailing party is entitled to reasonable attorney's fees, costs, and actual damages.</content>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 1167 (H.B. 2869), Sec. 1, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c215/s215.011">
<num value="215.011">Sec. 215.011.</num>
<heading>COMMON AREAS</heading>
<content>A property owners' association may adopt reasonable rules regulating common areas.</content>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 1167 (H.B. 2869), Sec. 1, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c215/s215.012">
<num value="215.012">Sec. 215.012.</num>
<heading>RESALE CERTIFICATES</heading>
<content>A property owners' association shall provide resale certificates only for residential properties and in the manner provided by Section 207.003.</content>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 1167 (H.B. 2869), Sec. 1, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c215/s215.013">
<num value="215.013">Sec. 215.013.</num>
<heading>MANAGEMENT CERTIFICATE</heading>
<subsection identifier="/us/tx/pr/t11/c215/s215.013/a">
<num value="a">(a)</num>
<chapeau>A property owners' association shall record in each county in which any portion of the development governed by the association is located a management certificate, signed and acknowledged by an officer of the association, stating:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c215/s215.013/1">
<num value="1">(1)</num>
<content>the name of the development;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.013/2">
<num value="2">(2)</num>
<content>the name of the association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.013/3">
<num value="3">(3)</num>
<content>the recording data for the declaration and all supplementary declarations;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.013/4">
<num value="4">(4)</num>
<content>the applicability of any supplementary declarations to residential communities;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.013/5">
<num value="5">(5)</num>
<content>the name and mailing address of the association; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.013/6">
<num value="6">(6)</num>
<content>other information the association considers appropriate.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.013/b">
<num value="b">(b)</num>
<content>A property owners' association shall record an amended management certificate not later than the 30th day after the date the association has notice of a change in information in the recorded certificate required by Subsection (a).</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.013/c">
<num value="c">(c)</num>
<content>The association and its officers, directors, employees, and agents are not liable to any person or corporation for delay in recording or failure to record a management certificate unless the delay or failure is willful or caused by gross negligence.</content>
</subsection>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 1167 (H.B. 2869), Sec. 1, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c215/s215.0135">
<num value="215.0135">Sec. 215.0135.</num>
<heading>ASSOCIATION RECORDS</heading>
<subsection identifier="/us/tx/pr/t11/c215/s215.0135/a">
<num value="a">(a)</num>
<content>To the extent of any conflict or inconsistency, this section prevails over other provisions of law and the dedicatory instruments of a property owners' association subject to this chapter. This section is the exclusive procedure for a property owner to inspect the books and records of the association.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.0135/b">
<num value="b">(b)</num>
<content>Except as provided by Subsection (c) or (j), a property owners' association shall, on written request as provided by this section, make the books and records of the association open to and reasonably available for examination by an owner or a person designated in a written instrument signed by the owner as the owner's agent, attorney, or certified public accountant. Except as provided by Subsection (c) or (j), an owner is entitled to obtain copies of the books and records from the association.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.0135/c">
<num value="c">(c)</num>
<content>An attorney's files and records relating to the property owners' association, excluding invoices, are not records of the association and are not subject to inspection by the owner or the owner's authorized representative or to production in a legal proceeding. This subsection does not require production of a document that is covered by the attorney-client privilege.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.0135/d">
<num value="d">(d)</num>
<chapeau>An owner or the owner's authorized representative described by Subsection (b) must submit a written request by certified mail to the mailing address of the property owners' association or the association's authorized representative, as reflected on the most current management certificate filed under Section 215.013, for access to the books and records of the association. The request must describe, in sufficient detail, the association's books and records requested by the owner or the owner's representative and:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c215/s215.0135/1">
<num value="1">(1)</num>
<content>if an inspection is requested, the association shall, on or before the l0th business day after the date the association receives the request, send written notice of dates that the owner may inspect, during normal business hours, the requested books and records to the extent those books and records are in the actual physical possession, custody, and control of the association; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.0135/2">
<num value="2">(2)</num>
<content>if copies of identified books and records are requested, the association shall, to the extent those books and records are in the actual physical possession, custody, and control of the association, produce copies of the requested books and records on or before the 10th business day after the date the association receives the request, except as otherwise provided by this section.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.0135/e">
<num value="e">(e)</num>
<chapeau>If the property owners' association fails to produce the books or records requested under Subsection (d) on or before the l0th business day after the date the association receives the request, the association must provide to the requestor written notice that:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c215/s215.0135/1">
<num value="1">(1)</num>
<content>informs the requestor that the association is unable to produce the information and the specific reasons for that inability on or before the 10th business day after the date the association received the request; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.0135/2">
<num value="2">(2)</num>
<content>if the association can produce the information, notifies the requestor of the date by which the information will be sent or made available for inspection to the requesting party, which may not be later than the 15th day after the date notice under this subsection is given.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.0135/f">
<num value="f">(f)</num>
<content>If an inspection is requested or required, the inspection shall take place at a mutually agreed on time during normal business hours of the property owners' association, and the requesting party shall identify the books and records for the association to copy and forward to the requesting party.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.0135/g">
<num value="g">(g)</num>
<content>A property owners' association may produce books and records requested under this section in hard copy, electronic, or other format reasonably available to the association.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.0135/h">
<num value="h">(h)</num>
<content>A property owners' association board must adopt a records production and copying policy that prescribes the costs the association will charge for the compilation, production, and reproduction of information requested under this section. The prescribed charges may include all reasonable costs of materials, labor, and overhead. The policy required by this subsection must be recorded as a dedicatory instrument. If the policy is not recorded, the association may not charge an owner for the compilation, production, or reproduction of information requested under this section. If the policy is recorded, the requesting owner or the owner's representative is responsible for all costs related to the compilation, production, and reproduction of the requested information based on the amounts prescribed by the policy. The association may require advance payment of the estimated costs of compilation, production, and reproduction of the requested information. If the total of the estimated costs differs from the total of the actual costs, the association shall submit a final invoice to the owner on or before the 30th business day after the date the requested copies are delivered. If the actual total cost is higher than the estimated total cost, and the owner fails to reimburse the association before the 30th business day after the date the invoice is sent to the owner, the association may add the amount due to the owner's account as an assessment. If the actual total cost is less than the estimated total cost, the association shall issue a refund to the owner not later than the 30th business day after the date the requested copies are delivered.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.0135/i">
<num value="i">(i)</num>
<content>A property owners' association must estimate costs under this section using amounts prescribed by the policy adopted under Subsection (h).</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.0135/j">
<num value="j">(j)</num>
<chapeau>Information may be released in an aggregate or summary manner that would not identify an individual property owner. Except as provided by Subsection (k) and to the extent the information is provided in the meeting minutes, the property owners' association is not required to release or allow inspection of any books or records that identify:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c215/s215.0135/1">
<num value="1">(1)</num>
<content>the dedicatory instrument violation history of an individual owner;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.0135/2">
<num value="2">(2)</num>
<content>an owner's personal financial information, including records of payment or nonpayment of amounts due the association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.0135/3">
<num value="3">(3)</num>
<content>an owner's contact information, other than the owner's address;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.0135/4">
<num value="4">(4)</num>
<content>an owner's property files or building plans;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.0135/5">
<num value="5">(5)</num>
<content>books or records described by Subsection (c);</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.0135/6">
<num value="6">(6)</num>
<content>any information to which an owner objects to releasing or has not granted approval for releasing; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.0135/7">
<num value="7">(7)</num>
<content>information related to an employee of the association, including personnel files.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.0135/k">
<num value="k">(k)</num>
<chapeau>The books and records described by Subsection (j) shall be released or made available for inspection if:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c215/s215.0135/1">
<num value="1">(1)</num>
<content>the express written approval of the owner whose records are the subject of the request for inspection is provided to the property owners' association; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.0135/2">
<num value="2">(2)</num>
<content>a court orders the release of the books and records or orders that the books and records be made available for inspection.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.0135/l">
<num value="l">(l)</num>
<chapeau>A property owners' association shall adopt and comply with a document retention policy that includes, at a minimum, the following requirements:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c215/s215.0135/1">
<num value="1">(1)</num>
<content>certificates of formation, bylaws, restrictive covenants, and all amendments to the certificates of formation, bylaws, and covenants shall be retained permanently;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.0135/2">
<num value="2">(2)</num>
<content>financial books and records shall be retained for seven years;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.0135/3">
<num value="3">(3)</num>
<content>account records of current owners shall be retained for five years;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.0135/4">
<num value="4">(4)</num>
<content>contracts with a term of one year or more shall be retained for four years after the expiration of the contract term;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.0135/5">
<num value="5">(5)</num>
<content>minutes of meetings of the owners and the board shall be retained for seven years; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.0135/6">
<num value="6">(6)</num>
<content>tax returns and audit records shall be retained for seven years.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.0135/m">
<num value="m">(m)</num>
<chapeau>A member of a property owners' association who is denied access to or copies of the association books or records to which the member is entitled under this section may file a petition with the county court at law in which all or part of the property that is governed by the association is located requesting relief in accordance with this subsection. If the county court at law finds that the member is entitled to access to or copies of the records, the county court at law may grant one or more of the following remedies:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c215/s215.0135/1">
<num value="1">(1)</num>
<content>a judgment ordering the association to release or allow access to the books or records;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.0135/2">
<num value="2">(2)</num>
<content>a judgment against the association for court costs and attorney's fees incurred in connection with seeking a remedy under this section; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.0135/3">
<num value="3">(3)</num>
<content>a judgment authorizing the owner or the owner's assignee to deduct the amounts awarded under Subdivision (2) from any future regular or special assessments payable to the association.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.0135/n">
<num value="n">(n)</num>
<content>If the property owners' association prevails in an action under Subsection (m), the association is entitled to a judgment for court costs and attorney's fees incurred by the association in connection with the action.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.0135/o">
<num value="o">(o)</num>
<chapeau>On or before the 10th business day before the date a person brings an action against a property owners' association under this section, the person must send written notice to the association of the person's intent to bring the action. The notice must:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c215/s215.0135/1">
<num value="1">(1)</num>
<content>be sent certified mail, return receipt requested, or delivered by the United States Postal Service with signature confirmation service, to the mailing address of the association or the association's authorized representative as reflected on the most current management certificate filed under Section 215.013; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.0135/2">
<num value="2">(2)</num>
<content>describe with sufficient detail the books and records being requested.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.0135/p">
<num value="p">(p)</num>
<content>For the purposes of this section, "business day" means a day other than Saturday, Sunday, or a state or federal holiday.</content>
</subsection>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 673 (H.B. 1824), Sec. 3, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c215/s215.014">
<num value="215.014">Sec. 215.014.</num>
<heading>PRIORITY OF PAYMENTS</heading>
<chapeau>Unless otherwise provided in writing by the property owner at the time payment is made, a payment received by a property owners' association from the owner shall be applied to the owner's debt in the following order of priority:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c215/s215.014/1">
<num value="1">(1)</num>
<content>any delinquent assessment;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.014/2">
<num value="2">(2)</num>
<content>any current assessment;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.014/3">
<num value="3">(3)</num>
<content>any attorney's fees incurred by the association associated solely with assessments or any other charge that could provide the basis for foreclosure;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.014/4">
<num value="4">(4)</num>
<content>any fines assessed by the association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.014/5">
<num value="5">(5)</num>
<content>any attorney's fees incurred by the association that are not subject to Subdivision (3); and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.014/6">
<num value="6">(6)</num>
<content>any other amount owed to the association.</content>
</paragraph>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 1167 (H.B. 2869), Sec. 1, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c215/s215.015">
<num value="215.015">Sec. 215.015.</num>
<heading>FORECLOSURE</heading>
<content>A property owners' association may not foreclose an association assessment lien unless the association first obtains a court order of sale.</content>
<sourceCredit>Added by Acts 2011, 82nd Leg., R.S., Ch. 1167 (H.B. 2869), Sec. 1, eff. September 1, 2011.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c215/s215.016">
<num value="215.016">Sec. 215.016.</num>
<heading>NOTICE REQUIRED BEFORE CERTAIN ENFORCEMENT ACTIONS</heading>
<subsection identifier="/us/tx/pr/t11/c215/s215.016/a">
<num value="a">(a)</num>
<content>Before a property owners' association may file a suit against an owner, other than a suit to collect a regular or special assessment or judicial foreclosure under the association's lien, or charge an owner for property damage, the association or its agent must give written notice sent to the owner by certified mail, return receipt requested, to the property address of the owner.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.016/b">
<num value="b">(b)</num>
<chapeau>The notice must:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c215/s215.016/1">
<num value="1">(1)</num>
<content>describe the violation of the declaration or property damage that is the basis for the suit or charge and state any amount due to the association from the owner; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c215/s215.016/2">
<num value="2">(2)</num>
<chapeau>inform the owner that the owner:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c215/s215.016/A">
<num value="A">(A)</num>
<content>is entitled, as applicable, to a reasonable period to cure the violation and avoid the suit unless the owner was previously given notice and a reasonable opportunity to cure by the association for the same or a similar violation within the preceding six months;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c215/s215.016/B">
<num value="B">(B)</num>
<content>may request a hearing under Section 215.017 on or before the 30th day after the date the owner receives the notice; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c215/s215.016/C">
<num value="C">(C)</num>
<content>may have special rights or relief related to the suit or charge under federal law, including, without limitation, the Servicemembers Civil Relief Act (50 U.S.C. app. Section 501 et seq.), if the owner is serving on active military duty.</content>
</subparagraph>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 673 (H.B. 1824), Sec. 4, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c215/s215.017">
<num value="215.017">Sec. 215.017.</num>
<heading>HEARING BEFORE BOARD</heading>
<subsection identifier="/us/tx/pr/t11/c215/s215.017/a">
<num value="a">(a)</num>
<content>Except as provided by Section 215.009(c), if the owner is entitled to an opportunity to cure a violation, the owner has the right to submit a written request for a hearing to discuss and verify facts and resolve the matter at issue before a committee appointed by the board of the property owners' association or before the board if the board does not appoint a committee.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.017/b">
<num value="b">(b)</num>
<content>The association shall hold a hearing under this section not later than the 30th day after the date the board receives the owner's request for a hearing and shall notify the owner of the date, time, and place of the hearing not later than the 10th day before the date of the hearing. The board or committee or the owner may request a postponement, and if requested, a postponement shall be granted for a period of not more than 10 days. Additional postponements may be granted by agreement of the parties.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.017/c">
<num value="c">(c)</num>
<content>The notice and hearing provisions of this section and Section 215.016 do not apply if the association files a suit seeking a temporary restraining order or temporary injunctive relief or a suit that includes foreclosure as a cause of action.</content>
</subsection>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 673 (H.B. 1824), Sec. 4, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c215/s215.018">
<num value="215.018">Sec. 215.018.</num>
<heading>ALTERNATIVE PAYMENT SCHEDULE FOR CERTAIN ASSESSMENTS</heading>
<subsection identifier="/us/tx/pr/t11/c215/s215.018/a">
<num value="a">(a)</num>
<content>A property owners' association shall adopt reasonable guidelines to establish an alternative payment schedule by which an owner may make partial payments to the association for delinquent regular or special assessments or any other amount owed to the association without accruing additional monetary penalties. For purposes of this section, monetary penalties do not include reasonable costs associated with administering the payment plan or interest.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.018/b">
<num value="b">(b)</num>
<content>A property owners' association is not required to enter into a payment plan with an owner who failed to honor the terms of a previous payment plan.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c215/s215.018/c">
<num value="c">(c)</num>
<content>A property owners' association shall file the association's guidelines under this section in the real property records of each county in which any portion of the subdivision is located.</content>
</subsection>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 673 (H.B. 1824), Sec. 4, eff. September 1, 2013.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t11/c216">
<num value="216">CHAPTER 216.</num>
<heading>EXTENSION OR AMENDMENT OF RESTRICTIONS IN CERTAIN OLDER SUBDIVISIONS</heading>
<section identifier="/us/tx/pr/t11/c216/s216.001">
<num value="216.001">Sec. 216.001.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c216/s216.001/1">
<num value="1">(1)</num>
<content>"Dedicatory instrument" has the meaning assigned by Section 202.001.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c216/s216.001/2">
<num value="2">(2)</num>
<content>"Lienholder" and "owner" have the meanings assigned by Section 201.003.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c216/s216.001/3">
<num value="3">(3)</num>
<content>"Older subdivision" means a subdivision described by a recorded map or plat filed before 1947 in the real property records of the county in which the subdivision is located.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c216/s216.001/4">
<num value="4">(4)</num>
<content>"Petition" has the meaning assigned by Section 202.001.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c216/s216.001/5">
<num value="5">(5)</num>
<chapeau>"Property owners' association" means an incorporated or unincorporated homeowners' association, community association, civic club, or similar entity that:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c216/s216.001/A">
<num value="A">(A)</num>
<content>has a membership primarily consisting of the owners of real property in a subdivision; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c216/s216.001/B">
<num value="B">(B)</num>
<content>supports the enforcement of or promotes the observance of the deed restrictions applicable to all or part of the property located in the subdivision.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c216/s216.001/6">
<num value="6">(6)</num>
<content>"Restrictions" has the meaning assigned by Section 209.002.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c216/s216.001/7">
<num value="7">(7)</num>
<chapeau>"Subdivision" means land that:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c216/s216.001/A">
<num value="A">(A)</num>
<content>consists of multiple sections that have each been divided into two or more parts on a map or plat that has been recorded in the real property records of a county; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c216/s216.001/B">
<num value="B">(B)</num>
<content>is or was subject to restrictions that:</content>
</subparagraph>
</paragraph>
<subsection identifier="/us/tx/pr/t11/c216/s216.001/i">
<num value="i">(i)</num>
<chapeau>limit a majority of the land, excluding streets and public areas, to residential use; and</chapeau>
<clause identifier="/us/tx/pr/t11/c216/s216.001/ii">
<num value="ii">(ii)</num>
<content>were recorded in the real property records of the county.</content>
</clause>
<paragraph identifier="/us/tx/pr/t11/c216/s216.001/8">
<num value="8">(8)</num>
<content>"University" means an institution of higher education or a private or independent institution of higher education, as those terms are defined by Section 61.003, Education Code. The term includes a university's affiliate entity, including an endowment instrument, and a unit, division, institution, or agency established to operate as a component part of a university.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 691 (H.B. 1558), Sec. 1, eff. June 12, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c216/s216.002">
<num value="216.002">Sec. 216.002.</num>
<heading>FINDINGS AND PURPOSE</heading>
<subsection identifier="/us/tx/pr/t11/c216/s216.002/a">
<num value="a">(a)</num>
<chapeau>The legislature finds that:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c216/s216.002/1">
<num value="1">(1)</num>
<content>the inability of owners to extend or amend property restrictions in older subdivisions in which no zoning regulations apply creates uncertainty in living conditions and discourages investments in those subdivisions;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c216/s216.002/2">
<num value="2">(2)</num>
<content>owners in affected older subdivisions are reluctant or unable to provide proper maintenance, upkeep, and repairs of structures because of the inability to amend the restrictions in response to changing circumstances;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c216/s216.002/3">
<num value="3">(3)</num>
<content>these conditions will cause dilapidation of housing and other structures and cause unhealthful and unsanitary conditions in affected older subdivisions, contrary to the health, safety, and welfare of the public; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c216/s216.002/4">
<num value="4">(4)</num>
<content>the existence of race-related covenants in restrictions, regardless of their unenforceability, is offensive, repugnant, and harmful to members of racial or ethnic minority groups and public policy requires that those covenants be removed.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c216/s216.002/b">
<num value="b">(b)</num>
<content>The purpose of this chapter is to provide a procedure for extending or amending restrictions for certain older subdivisions, including the removal of any restriction relating to race, religion, or national origin that is void and unenforceable under the United States Constitution or Section 5.026.</content>
</subsection>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 691 (H.B. 1558), Sec. 1, eff. June 12, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c216/s216.003">
<num value="216.003">Sec. 216.003.</num>
<heading>APPLICABILITY OF CHAPTER</heading>
<subsection identifier="/us/tx/pr/t11/c216/s216.003/a">
<num value="a">(a)</num>
<chapeau>This chapter applies only to an older subdivision that:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c216/s216.003/1">
<num value="1">(1)</num>
<content>is wholly or partly located in a municipality with a population of two million or more;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c216/s216.003/2">
<num value="2">(2)</num>
<chapeau>had original restrictions that:</chapeau>
<subparagraph identifier="/us/tx/pr/t11/c216/s216.003/A">
<num value="A">(A)</num>
<content>for at least one section of the subdivision, did not have an express procedure that provides for successive extensions of the restrictions;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c216/s216.003/B">
<num value="B">(B)</num>
<content>did not have an express procedure for amending the restrictions;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t11/c216/s216.003/C">
<num value="C">(C)</num>
<content>under the common law of this state could not be amended without the unanimous consent of:</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c216/s216.003/i">
<num value="i">(i)</num>
<chapeau>all owners in the subdivision; or</chapeau>
<clause identifier="/us/tx/pr/t11/c216/s216.003/ii">
<num value="ii">(ii)</num>
<content>all owners in any section of the subdivision; and</content>
</clause>
<subparagraph identifier="/us/tx/pr/t11/c216/s216.003/D">
<num value="D">(D)</num>
<content>may no longer be valid due to an inability to extend or amend the restrictions; and</content>
</subparagraph>
<paragraph identifier="/us/tx/pr/t11/c216/s216.003/3">
<num value="3">(3)</num>
<content>has a single property owners' association in which all owners in the subdivision are eligible for membership but in which membership is not mandatory.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c216/s216.003/b">
<num value="b">(b)</num>
<content>This chapter applies to a restriction regardless of the date on which the restriction was created.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c216/s216.003/c">
<num value="c">(c)</num>
<content>This chapter supersedes any contrary requirement for the extension or amendment of a restriction in a dedicatory instrument of a subdivision to which this chapter applies.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c216/s216.003/d">
<num value="d">(d)</num>
<chapeau>This chapter does not apply to:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c216/s216.003/1">
<num value="1">(1)</num>
<content>a residential subdivision described by Section 209.0041(b);</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c216/s216.003/2">
<num value="2">(2)</num>
<content>a condominium, as defined by Section 81.002 or 82.003;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c216/s216.003/3">
<num value="3">(3)</num>
<content>any portion of a residential subdivision in which restrictions are no longer enforceable due to nonresidential use; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c216/s216.003/4">
<num value="4">(4)</num>
<content>property that is owned by a university that was owned by the university on the effective date of this chapter.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 691 (H.B. 1558), Sec. 1, eff. June 12, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c216/s216.004">
<num value="216.004">Sec. 216.004.</num>
<heading>AMENDMENT OF RESTRICTIONS</heading>
<subsection identifier="/us/tx/pr/t11/c216/s216.004/a">
<num value="a">(a)</num>
<content>For purposes of this chapter, the amendment of restrictions includes the adoption of new restrictions or the modification or removal of existing restrictions.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c216/s216.004/b">
<num value="b">(b)</num>
<content>An amendment of restrictions under this chapter may not create a property owners' association with mandatory membership. An amendment of restrictions under this chapter that creates a property owners' association with mandatory membership is void.</content>
</subsection>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 691 (H.B. 1558), Sec. 1, eff. June 12, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c216/s216.005">
<num value="216.005">Sec. 216.005.</num>
<heading>PROPERTY OWNERS' ASSOCIATION ACTION NOT REQUIRED</heading>
<content>Except as provided by Section 216.008, restrictions may be extended or amended under this chapter without action by the property owners' association.</content>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 691 (H.B. 1558), Sec. 1, eff. June 12, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c216/s216.006">
<num value="216.006">Sec. 216.006.</num>
<heading>EXTENSION OF RESTRICTIONS</heading>
<subsection identifier="/us/tx/pr/t11/c216/s216.006/a">
<num value="a">(a)</num>
<content>Restrictions may be extended as provided by Section 216.007 or, if a dedicatory instrument provides a procedure for an initial extension of the original restrictions, that procedure may be used for successive extensions of the original restrictions unless the dedicatory instrument expressly prohibits the procedure from being used for successive extensions. If the dedicatory instrument prohibits the procedure from being used to provide for automatic extension of restrictions, the procedure may not be used under this subsection to provide for automatic extension of the restrictions.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c216/s216.006/b">
<num value="b">(b)</num>
<content>A provision in a dedicatory instrument that prohibits the extension of an existing restriction during a certain period does not apply to a successive extension under a procedure for initial extension of original restrictions under Subsection (a).</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c216/s216.006/c">
<num value="c">(c)</num>
<chapeau>An extension of restrictions under this chapter may:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c216/s216.006/1">
<num value="1">(1)</num>
<content>be for a period equal to the original term of the restrictions or a shorter period; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c216/s216.006/2">
<num value="2">(2)</num>
<content>subject to Subsection (a), provide for additional automatic extensions of the term of the restrictions for a period of not more than 10 years for each extension.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c216/s216.006/d">
<num value="d">(d)</num>
<content>A dedicatory instrument that provides for the extension of restrictions and does not provide for amendment of restrictions may be amended under this chapter, including by amending the provision providing for the extension of the restrictions.</content>
</subsection>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 691 (H.B. 1558), Sec. 1, eff. June 12, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c216/s216.007">
<num value="216.007">Sec. 216.007.</num>
<heading>CONSENT REQUIRED FOR EXTENSION OR AMENDMENT OF RESTRICTIONS</heading>
<subsection identifier="/us/tx/pr/t11/c216/s216.007/a">
<num value="a">(a)</num>
<content>A restriction may be extended or amended by a petition or ballots that indicate the written consent of the owners of at least 66.6 percent of the total number of separately owned parcels or tracts in the subdivision, regardless of whether the parcels or tracts contain part or all of one or more platted lots or combination of lots, but not including any parcels or tracts excluded from applicability of this chapter under Section 216.003(d).</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c216/s216.007/b">
<num value="b">(b)</num>
<chapeau>A restriction that is extended or amended as described by Subsection (a) applies to all sections of the subdivision other than property excluded from applicability of this chapter under Section 216.003(d) to the extent that the extended or amended restriction expressly applies to the entire subdivision, regardless of whether:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c216/s216.007/1">
<num value="1">(1)</num>
<content>each section has separate restrictions; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c216/s216.007/2">
<num value="2">(2)</num>
<content>each owner is a member of the property owners' association.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c216/s216.007/c">
<num value="c">(c)</num>
<content>If the original restrictions for a subdivision contain a lower percentage to extend or amend the restrictions, the percentage in the original restrictions controls.</content>
</subsection>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 691 (H.B. 1558), Sec. 1, eff. June 12, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c216/s216.008">
<num value="216.008">Sec. 216.008.</num>
<heading>PETITION OR BALLOTS</heading>
<subsection identifier="/us/tx/pr/t11/c216/s216.008/a">
<num value="a">(a)</num>
<chapeau>After receiving written approval of a petition or ballot by the property owners' association, the petition or ballots for the extension or amendment of restrictions must be distributed to the owners in the subdivision by any public method, including:</chapeau>
<paragraph identifier="/us/tx/pr/t11/c216/s216.008/1">
<num value="1">(1)</num>
<content>by United States mail;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c216/s216.008/2">
<num value="2">(2)</num>
<content>by electronic mail or other method of electronic transmission or publication, including publication on an Internet website;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c216/s216.008/3">
<num value="3">(3)</num>
<content>by door-to-door circulation;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c216/s216.008/4">
<num value="4">(4)</num>
<content>by publication in a newspaper or similar publication of general circulation in the municipality in which the subdivision is located; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t11/c216/s216.008/5">
<num value="5">(5)</num>
<content>at a meeting of the owners in the subdivision called for the purpose of voting on the proposed extension or amendment.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t11/c216/s216.008/b">
<num value="b">(b)</num>
<content>The petition or ballots may be provided to owners in separate documents. The separate documents are considered to be one instrument.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c216/s216.008/c">
<num value="c">(c)</num>
<content>If a restriction is amended under this chapter, a petition or ballot for a subsequent amendment of the restrictions may not be distributed under Subsection (a) before the fifth anniversary of the effective date of the amended restriction under Section 216.010.</content>
</subsection>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 691 (H.B. 1558), Sec. 1, eff. June 12, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c216/s216.009">
<num value="216.009">Sec. 216.009.</num>
<heading>EFFECT OF OWNER'S SIGNATURE</heading>
<subsection identifier="/us/tx/pr/t11/c216/s216.009/a">
<num value="a">(a)</num>
<content>An owner's signature on a petition or ballot conclusively establishes the owner's consent for the purposes of this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c216/s216.009/b">
<num value="b">(b)</num>
<content>The vote of multiple owners of a lot, parcel, or tract may be reflected by the signature of one of the owners.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c216/s216.009/c">
<num value="c">(c)</num>
<content>After an owner signs a petition or ballot for an extension or amendment of a restriction, the owner's subsequent conveyance of the owner's interest in real property in the subdivision covered by the extension or amendment does not affect the validity of the signature for the purposes of the petition or ballot.</content>
</subsection>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 691 (H.B. 1558), Sec. 1, eff. June 12, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c216/s216.010">
<num value="216.010">Sec. 216.010.</num>
<heading>EFFECTIVE DATE OF EXTENSION OR AMENDMENT</heading>
<content>An extension or amendment of a restriction under this chapter takes effect on the date the extension or amendment and the petition or ballots that reflect the written consent of the required number of owners in the subdivision for the adoption of the extension or amendment are filed and recorded in the real property records of the county in which the subdivision is located.</content>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 691 (H.B. 1558), Sec. 1, eff. June 12, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c216/s216.011">
<num value="216.011">Sec. 216.011.</num>
<heading>APPLICABILITY OF EXTENSION OR AMENDMENT</heading>
<subsection identifier="/us/tx/pr/t11/c216/s216.011/a">
<num value="a">(a)</num>
<content>An extension or amendment of a restriction under this chapter is binding on a lot, parcel, or tract in the subdivision as provided by the restriction, regardless of whether the owner or owners of the lot, parcel, or tract consented to the extension or amendment.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c216/s216.011/b">
<num value="b">(b)</num>
<content>Notwithstanding any other law, an owner may not opt out of the applicability to the owner's property of a restriction that is extended or amended under this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c216/s216.011/c">
<num value="c">(c)</num>
<content>An extension or amendment of a restriction under this chapter is binding on a lienholder or a person who acquires title to property at a foreclosure sale or by deed from a foreclosing lienholder.</content>
</subsection>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 691 (H.B. 1558), Sec. 1, eff. June 12, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c216/s216.012">
<num value="216.012">Sec. 216.012.</num>
<heading>UNCONSTITUTIONAL RESTRICTIONS NOT EXTENDED</heading>
<content>If a provision in restrictions extended under this chapter is void and unenforceable under the United States Constitution or Section 5.026, the restrictions are considered as if the void and unenforceable provision was never contained in the restrictions.</content>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 691 (H.B. 1558), Sec. 1, eff. June 12, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c216/s216.013">
<num value="216.013">Sec. 216.013.</num>
<heading>PROCEDURES CUMULATIVE</heading>
<content>The procedure provided by this chapter for the extension or amendment of restrictions is cumulative of and not in lieu of any other method by which restrictions of a subdivision to which this chapter applies may be extended or amended.</content>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 691 (H.B. 1558), Sec. 1, eff. June 12, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t11/c216/s216.014">
<num value="216.014">Sec. 216.014.</num>
<heading>CONSTRUCTION OF CHAPTER AND RESTRICTIONS</heading>
<subsection identifier="/us/tx/pr/t11/c216/s216.014/a">
<num value="a">(a)</num>
<content>This chapter and any petition or ballot made or action taken in connection with an attempt to comply with this chapter shall be liberally construed to effectuate the intent of this chapter and the petition, ballot, or action.</content>
</subsection>
<subsection identifier="/us/tx/pr/t11/c216/s216.014/b">
<num value="b">(b)</num>
<content>A restriction that is extended or amended under this chapter shall be liberally construed to give effect to the restriction's purposes and intent.</content>
</subsection>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 691 (H.B. 1558), Sec. 1, eff. June 12, 2023.</sourceCredit>
</section>
</chapter>
<num value="12">TITLE 12.</num>
<heading>MISCELLANEOUS SHARED REAL PROPERTY INTERESTS</heading>
<chapter identifier="/us/tx/pr/t12/c221">
<num value="221">CHAPTER 221.</num>
<heading>TEXAS TIMESHARE ACT</heading>
<subchapter identifier="/us/tx/pr/t12/c221/scA">
<num value="A">SUBCHAPTER A.</num>
<heading>GENERAL PROVISIONS</heading>
<section identifier="/us/tx/pr/t12/c221/scA/s221.001">
<num value="221.001">Sec. 221.001.</num>
<heading>SHORT TITLE</heading>
<content>This chapter shall be known and may be cited as the Texas Timeshare Act.</content>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987. Renumbered from Sec. 201.001 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scA/s221.002">
<num value="221.002">Sec. 221.002.</num>
<heading>DEFINITIONS</heading>
<chapeau>As used in this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scA/s221.002/1">
<num value="1">(1)</num>
<chapeau>"Accommodation" means any apartment, condominium or cooperative unit, hotel or motel room, cabin, lodge, or other private or commercial structure that:</chapeau>
<subparagraph identifier="/us/tx/pr/t12/c221/scA/s221.002/A">
<num value="A">(A)</num>
<content>is affixed to real property;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scA/s221.002/B">
<num value="B">(B)</num>
<content>is designed for occupancy or use by one or more individuals; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scA/s221.002/C">
<num value="C">(C)</num>
<content>is part of a timeshare plan.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scA/s221.002/2">
<num value="2">(2)</num>
<chapeau>"Advertisement" means any written, oral, or electronic communication that is directed to or targeted at individuals in this state and contains a promotion, inducement, or offer to sell a timeshare interest, including a promotion, inducement, or offer to sell:</chapeau>
<subparagraph identifier="/us/tx/pr/t12/c221/scA/s221.002/A">
<num value="A">(A)</num>
<content>contained in a brochure, pamphlet, or radio or television transcript;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scA/s221.002/B">
<num value="B">(B)</num>
<content>communicated by electronic media or telephone; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scA/s221.002/C">
<num value="C">(C)</num>
<content>solicited through direct mail.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scA/s221.002/3">
<num value="3">(3)</num>
<content>"Amenities" means all common areas and includes recreational and maintenance facilities of the timeshare plan.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scA/s221.002/4">
<num value="4">(4)</num>
<content>"Assessment" means an amount assessed against or collected from a purchaser by an association or its managing entity in a fiscal year, regardless of the frequency with which the amount is assessed or collected, to cover expenditures, charges, reserves, or liabilities related to the operation of a timeshare plan or timeshare properties managed by the same managing entity.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scA/s221.002/5">
<num value="5">(5)</num>
<content>"Association" means a council or association composed of all persons who have purchased a timeshare interest.</content>
<continuation>(5-a) "Board" means the governing body of a timeshare association designated in a project instrument to act on behalf of the association.</continuation>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scA/s221.002/6">
<num value="6">(6)</num>
<content>"Commission" means the Texas Real Estate Commission.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scA/s221.002/7">
<num value="7">(7)</num>
<content>"Component site" means a specific geographic location where accommodations that are part of a multisite timeshare plan are located. Separate phases of a single timeshare property in a specific geographic location and under common management are a single component site.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scA/s221.002/8">
<num value="8">(8)</num>
<chapeau>"Developer" means:</chapeau>
<subparagraph identifier="/us/tx/pr/t12/c221/scA/s221.002/A">
<num value="A">(A)</num>
<content>any person, excluding a sales agent, who creates a timeshare plan or is in the business of selling timeshare interests or employs a sales agent to sell timeshare interests; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scA/s221.002/B">
<num value="B">(B)</num>
<content>any person who succeeds in the developer's interest by sale, lease, assignment, mortgage, or other transfer if the person:</content>
</subparagraph>
</paragraph>
<subsection identifier="/us/tx/pr/t12/c221/scA/s221.002/i">
<num value="i">(i)</num>
<chapeau>offers at least 12 timeshare interests in a particular timeshare plan; and</chapeau>
<clause identifier="/us/tx/pr/t12/c221/scA/s221.002/ii">
<num value="ii">(ii)</num>
<content>is in the business of selling timeshare interests or employs a sales agent to sell timeshare interests.</content>
</clause>
<paragraph identifier="/us/tx/pr/t12/c221/scA/s221.002/9">
<num value="9">(9)</num>
<content>"Dispose" or "disposition" means a voluntary transfer of any legal or equitable timeshare interest but does not include the transfer or release of a real estate lien or of a security interest.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scA/s221.002/10">
<num value="10">(10)</num>
<content>"Escrow agent" means a bonded escrow company, a financial institution whose accounts are insured by a governmental agency or instrumentality, or an attorney or title insurance agent licensed in this state who is responsible for the receipt and disbursement of funds in accordance with this chapter.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scA/s221.002/11">
<num value="11">(11)</num>
<content>"Exchange company" means any person who owns or operates an exchange program.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scA/s221.002/12">
<num value="12">(12)</num>
<content>"Exchange disclosure statement" means a written statement that includes the information required by Section 221.033.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scA/s221.002/13">
<num value="13">(13)</num>
<content>"Exchange program" means any method, arrangement, or procedure for the voluntary exchange of timeshare interests among purchasers or owners.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scA/s221.002/14">
<num value="14">(14)</num>
<content>"Incidental use right" means the right to use accommodations and amenities at one or more timeshare properties that is not guaranteed and is administered by the managing entity of the timeshare properties that makes vacant accommodations at the timeshare properties available to owners of timeshare interests in the timeshare properties.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scA/s221.002/15">
<num value="15">(15)</num>
<content>"Managing entity" means the person responsible for operating and maintaining a timeshare property.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scA/s221.002/16">
<num value="16">(16)</num>
<chapeau>"Multisite timeshare plan" means a plan in which a timeshare purchaser has:</chapeau>
<subparagraph identifier="/us/tx/pr/t12/c221/scA/s221.002/A">
<num value="A">(A)</num>
<content>a specific timeshare interest, which is the right to use and occupy accommodations at a specific timeshare property and the right to use and occupy accommodations at one or more other component sites created by or acquired solely through the reservation system of the timeshare plan; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scA/s221.002/B">
<num value="B">(B)</num>
<content>a nonspecific timeshare interest, which is the right to use and occupy accommodations at more than one component site created by or acquired solely through the reservation system of the timeshare plan but which does not include a right to use and occupy a particular accommodation.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scA/s221.002/17">
<num value="17">(17)</num>
<content>"Offering" or "offer" means any advertisement, inducement, or solicitation and includes any attempt to encourage a person to purchase a timeshare interest other than as a security for an obligation.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scA/s221.002/18">
<num value="18">(18)</num>
<content>"Project instrument" means a timeshare instrument or one or more recordable documents, by whatever name denominated, applying to the whole of a timeshare project and containing restrictions or covenants regulating the use, occupancy, or disposition of units in a project, including a declaration for a condominium, association articles of incorporation, association bylaws, and rules for a condominium in which a timeshare plan is created.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scA/s221.002/19">
<num value="19">(19)</num>
<content>"Promotion" means any program, activity, contest, or gift, prize, or other item of value used to induce any person to attend a timeshare sales presentation.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scA/s221.002/20">
<num value="20">(20)</num>
<content>"Purchaser" means any person, other than a developer, who by means of a voluntary transfer acquires a legal or equitable interest in a timeshare interest other than as a security for an obligation.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scA/s221.002/21">
<num value="21">(21)</num>
<content>"Reservation system" means the method, arrangement, or procedure by which a purchaser, in order to reserve the use and occupancy of an accommodation of a multisite timeshare plan for one or more timeshare periods, is required to compete with other purchasers in the same multisite timeshare plan, regardless of whether the reservation system is operated and maintained by the multisite timeshare plan, a managing entity, an exchange company, or any other person. If a purchaser is required to use an exchange program as the purchaser's principal means of obtaining the right to use and occupy the accommodations and facilities of the plan, the arrangement is considered a reservation system. If the exchange company uses a mechanism to exchange timeshare periods among members of the exchange program, the use of the mechanism is not considered a reservation system of the multisite timeshare plan.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scA/s221.002/22">
<num value="22">(22)</num>
<content>"Single-site timeshare plan" means a timeshare plan in which a timeshare purchaser's right to use and occupy accommodations is limited to a single timeshare property. A single-site timeshare plan that includes an incidental use right or a program under which the owner of a timeshare interest at a specific timeshare property may exchange a timeshare period for another timeshare period at the same or another timeshare property under common management does not transform the single-site timeshare plan into a multisite timeshare plan.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scA/s221.002/23">
<num value="23">(23)</num>
<content>"Timeshare disclosure statement" means a written statement that includes the information required by Section 221.032.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scA/s221.002/24">
<num value="24">(24)</num>
<content>"Timeshare estate" means an arrangement under which the purchaser receives a right to occupy a timeshare property and an estate interest in the real property.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scA/s221.002/25">
<num value="25">(25)</num>
<content>"Timeshare interest" means a timeshare estate or timeshare use.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scA/s221.002/26">
<num value="26">(26)</num>
<content>"Timeshare instrument" means a master deed, master lease, declaration, or any other instrument used in the creation of a timeshare plan.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scA/s221.002/27">
<num value="27">(27)</num>
<content>"Timeshare period" means the period within which the purchaser of a timeshare interest is entitled to the exclusive possession, occupancy, and use of an accommodation.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scA/s221.002/28">
<num value="28">(28)</num>
<content>"Timeshare plan" means any arrangement, plan, scheme, or similar method, excluding an exchange program but including a membership agreement, sale, lease, deed, license, or right-to-use agreement, by which a purchaser, in exchange for consideration, receives an ownership right in or the right to use accommodations for a period of time less than a year during a given year, but not necessarily consecutive years.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scA/s221.002/29">
<num value="29">(29)</num>
<chapeau>"Timeshare property" means:</chapeau>
<subparagraph identifier="/us/tx/pr/t12/c221/scA/s221.002/A">
<num value="A">(A)</num>
<content>one or more accommodations and any related amenities subject to the same timeshare instrument; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scA/s221.002/B">
<num value="B">(B)</num>
<content>any other property or property rights appurtenant to the accommodations and amenities.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scA/s221.002/30">
<num value="30">(30)</num>
<content>"Timeshare use" means any arrangement under which the purchaser receives a right to occupy a timeshare property, but under which the purchaser does not receive an estate interest in the timeshare property.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987. Renumbered from Sec. 201.002 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989. Amended by Acts 1993, 73rd Leg., ch. 443, Sec. 1, eff. Sept. 1, 1993.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 1, eff. January 15, 2006.
Acts 2013, 83rd Leg., R.S., Ch. 1352 (S.B. 1372), Sec. 3, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scA/s221.003">
<num value="221.003">Sec. 221.003.</num>
<heading>APPLICABILITY</heading>
<subsection identifier="/us/tx/pr/t12/c221/scA/s221.003/a">
<num value="a">(a)</num>
<content>This chapter applies to all timeshare properties that are located in this state or offered for sale in this state.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scA/s221.003/b">
<num value="b">(b)</num>
<content>Timeshare properties located outside this state are subject only to Subchapters C through H and J.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scA/s221.003/c">
<num value="c">(c)</num>
<content>This chapter applies to any timeshare property in existence on or after August 26, 1985, but does not affect a timeshare contract in existence before that date.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scA/s221.003/d">
<num value="d">(d)</num>
<chapeau>A timeshare property subject to this chapter is not subject to:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scA/s221.003/1">
<num value="1">(1)</num>
<content>Section 5.008 or 5.012;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scA/s221.003/2">
<num value="2">(2)</num>
<content>Chapter 202;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scA/s221.003/3">
<num value="3">(3)</num>
<content>Chapter 207; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scA/s221.003/4">
<num value="4">(4)</num>
<content>Chapter 209, unless an individual timeshare owner continuously occupies a single timeshare property as the owner's primary residence 12 months of the year.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scA/s221.003/e">
<num value="e">(e)</num>
<chapeau>If a person with a specific program that might otherwise be subject to this chapter received from the commission, before January 31, 2005, a written determination that the program is exempt from this chapter as the chapter existed when the determination was made, the program remains exempt from this chapter if:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scA/s221.003/1">
<num value="1">(1)</num>
<content>the program does not vary materially from the terms on which the exemption was granted; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scA/s221.003/2">
<num value="2">(2)</num>
<content>the program varies materially from the terms on which the exemption was granted, but the person receives from the commission a new written determination that the program is exempt from this chapter.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987. Renumbered from Sec. 201.003 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 2, eff. January 15, 2006.
Acts 2013, 83rd Leg., R.S., Ch. 1352 (S.B. 1372), Sec. 4, eff. September 1, 2013.
Acts 2015, 84th Leg., R.S., Ch. 554 (H.B. 2261), Sec. 1, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scA/s221.004">
<num value="221.004">Sec. 221.004.</num>
<heading>CONFLICTS OF LAW</heading>
<subsection identifier="/us/tx/pr/t12/c221/scA/s221.004/a">
<num value="a">(a)</num>
<content>The provisions of this chapter prevail over a conflicting or inconsistent provision of law applicable to timeshare owners' associations.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scA/s221.004/b">
<num value="b">(b)</num>
<content>Provisions of this code relating to property owners' associations do not apply to an association subject to this chapter.</content>
</subsection>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 1352 (S.B. 1372), Sec. 5, eff. September 1, 2013.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t12/c221/scB">
<num value="B">SUBCHAPTER B.</num>
<heading>CREATION OF TIMESHARE REGIME</heading>
<section identifier="/us/tx/pr/t12/c221/scB/s221.011">
<num value="221.011">Sec. 221.011.</num>
<heading>DECLARATION</heading>
<subsection identifier="/us/tx/pr/t12/c221/scB/s221.011/a">
<num value="a">(a)</num>
<content>The developer of a timeshare plan any part of which is located in this state must record the timeshare instrument in this state. When a person expressly declares an intent to subject the property to a timeshare plan through the recordation of a timeshare instrument that sets forth the information provided in Subsection (b), that property shall be established thenceforth as a timeshare plan.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scB/s221.011/b">
<num value="b">(b)</num>
<chapeau>The declaration made in a timeshare instrument recorded under this section must include:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scB/s221.011/1">
<num value="1">(1)</num>
<content>a legal description of the timeshare property, including a ground plan indicating the location of each existing or proposed building included in the timeshare plan;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scB/s221.011/2">
<num value="2">(2)</num>
<content>a description of each existing or proposed accommodation, including the location and square footage of each unit and an interior floor plan of each existing or proposed building;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scB/s221.011/3">
<num value="3">(3)</num>
<content>a description of any amenities furnished or to be furnished to the purchaser;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scB/s221.011/4">
<num value="4">(4)</num>
<content>a statement of the fractional or percentage part that each timeshare interest bears to the entire timeshare plan;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scB/s221.011/5">
<num value="5">(5)</num>
<content>if applicable, a statement that the timeshare property is part of a multisite timeshare plan;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scB/s221.011/6">
<num value="6">(6)</num>
<content>any additional provisions that are consistent with this section; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scB/s221.011/7">
<num value="7">(7)</num>
<content>the provisions required by Subchapter I to be included in a project instrument unless the provisions are included in one or more other project instruments.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scB/s221.011/c">
<num value="c">(c)</num>
<content>Any timeshare interest created under this section is subject to Section 1101.002(5), Occupations Code, but Sections 1101.351(a)(1) and (c), Occupations Code, do not apply to the acts of an exchange company in exchanging timeshare periods.</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987. Renumbered from Sec. 201.011 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989. Amended by Acts 1993, 73rd Leg., ch. 443, Sec. 2, eff. Sept. 1, 1993; Acts 2003, 78th Leg., ch. 1276, Sec. 14A.809, eff. Sept. 1, 2003.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 3, eff. January 15, 2006.
Acts 2013, 83rd Leg., R.S., Ch. 1352 (S.B. 1372), Sec. 6, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scB/s221.012">
<num value="221.012">Sec. 221.012.</num>
<heading>CONVEYANCE AND ENCUMBRANCE</heading>
<content>Once the property is established as a timeshare plan, each timeshare interest may be individually conveyed or encumbered and shall be entirely independent of all other timeshare interests in the same timeshare property. Any title or interest in a timeshare interest may be recorded.</content>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987. Renumbered from Sec. 201.012 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 3, eff. January 15, 2006.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scB/s221.013">
<num value="221.013">Sec. 221.013.</num>
<heading>COMMON OWNERSHIP</heading>
<subsection identifier="/us/tx/pr/t12/c221/scB/s221.013/a">
<num value="a">(a)</num>
<content>Any timeshare interest may be jointly or commonly owned by more than one person.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scB/s221.013/b">
<num value="b">(b)</num>
<content>A timeshare estate may be jointly or commonly owned in the same manner as any other real property interest in this state.</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987. Renumbered from Sec. 201.013 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b) eff. Aug. 28, 1989.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 3, eff. January 15, 2006.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scB/s221.014">
<num value="221.014">Sec. 221.014.</num>
<heading>PARTITION</heading>
<content>An action for partition of a timeshare interest may not be maintained during the term of a timeshare plan.</content>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987. Renumbered from Sec. 201.014 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 3, eff. January 15, 2006.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t12/c221/scC">
<num value="C">SUBCHAPTER C.</num>
<heading>REGISTRATION</heading>
<section identifier="/us/tx/pr/t12/c221/scC/s221.021">
<num value="221.021">Sec. 221.021.</num>
<heading>REGISTRATION REQUIRED</heading>
<subsection identifier="/us/tx/pr/t12/c221/scC/s221.021/a">
<num value="a">(a)</num>
<content>Except as provided by Subsection (b) or (d) of this section or another provision of this chapter, a person may not offer or dispose of a timeshare interest unless the timeshare plan is registered with the commission.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scC/s221.021/b">
<num value="b">(b)</num>
<content>Before a registration application for a timeshare plan is submitted or completed, a developer or any person acting on the developer's behalf may accept a reservation and a deposit from a prospective purchaser if the deposit is placed in a segregated escrow account with an independent escrow agent and if the deposit is fully refundable at any time at the request of the purchaser. The deposit may not be forfeited unless the purchaser affirmatively creates a binding obligation by a subsequent written instrument.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scC/s221.021/c">
<num value="c">(c)</num>
<content>A developer or any person acting on the developer's behalf may not offer or dispose of a timeshare interest during any period within which there is in effect an order by the commission or by any court of competent jurisdiction revoking or suspending the registration of the timeshare plan of which such timeshare interest is a part.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scC/s221.021/d">
<num value="d">(d)</num>
<chapeau>At the developer's request, the commission may authorize the developer to conduct presales before a timeshare plan is registered if the registration application is administratively complete, as determined by the commission or as established by commission rule. The authorization for presales permits the developer to offer and dispose of timeshare interests during the period the application is in process. To obtain a presales authorization, the developer must:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scC/s221.021/1">
<num value="1">(1)</num>
<content>submit a written request to the commission for an authorization to conduct presales;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scC/s221.021/2">
<num value="2">(2)</num>
<content>submit an administratively complete application for registration, including appropriate fees and exhibits required by the commission; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scC/s221.021/3">
<num value="3">(3)</num>
<content>provide evidence acceptable to the commission that all funds received by the developer will be placed with an escrow agent with instructions requiring the funds to be retained until a registration application is complete as determined by the commission.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scC/s221.021/e">
<num value="e">(e)</num>
<chapeau>During the presales authorization period, the developer must:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scC/s221.021/1">
<num value="1">(1)</num>
<content>provide to each purchaser and prospective purchaser a copy of the proposed timeshare disclosure statement that the developer submitted to the commission with the initial registration application; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scC/s221.021/2">
<num value="2">(2)</num>
<content>offer each purchaser the opportunity to cancel the purchase contract as provided by Section 221.041.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scC/s221.021/f">
<num value="f">(f)</num>
<chapeau>After the final timeshare disclosure statement is approved by the commission, the developer must:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scC/s221.021/1">
<num value="1">(1)</num>
<content>give each purchaser and prospective purchaser a copy of the final timeshare disclosure statement; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scC/s221.021/2">
<num value="2">(2)</num>
<content>if the commission determines that a materially adverse change exists between the disclosures contained in the proposed timeshare disclosure statement and the final timeshare disclosure statement, provide the purchaser a second opportunity to cancel the purchase contract as provided by Section 221.041.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scC/s221.021/g">
<num value="g">(g)</num>
<content>The requirements of this subchapter remain in effect during the period the developer offers or disposes of timeshare interests of the timeshare plan registered with the commission. The developer must notify the commission in writing when all of the timeshare interests of a timeshare plan have been disposed of.</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987. Renumbered from Sec. 201.021 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 4, eff. January 15, 2006.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scC/s221.022">
<num value="221.022">Sec. 221.022.</num>
<heading>APPLICATION FOR REGISTRATION</heading>
<subsection identifier="/us/tx/pr/t12/c221/scC/s221.022/a">
<num value="a">(a)</num>
<content>An application for registration filed under this section must include a timeshare disclosure statement and any required exchange disclosure statement required by Section 221.033, recorded copies of all timeshare instruments, and other information as may be required by the commission. If the timeshare property is a newly developed property, recorded copies of the timeshare instruments must be provided promptly after recorded copies are available from the entity with which the instruments are recorded. If existing or proposed accommodations are in a condominium, an applicant who complies with this section is not required to prepare or deliver a condominium information statement or a resale certificate as described by Chapter 82.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scC/s221.022/b">
<num value="b">(b)</num>
<content>If existing or proposed accommodations are in a condominium or similar development, the application for registration must contain the project instruments of that development and affirmatively indicate that the creation and disposition of timeshare interests are not prohibited by those instruments. If the project instruments do not expressly authorize the creation and disposition of timeshare interests, the application must contain evidence that existing owners of the condominium development were provided written notice, at least 60 days before the application for registration, that timeshare interests would be created and sold. If the project instruments prohibit the creation or disposition of timeshare interests, the application must contain a certification by the authorized representative of all existing owners that the project instruments have been properly amended to permit that creation and disposition.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scC/s221.022/c">
<num value="c">(c)</num>
<content>The commission may accept an abbreviated registration application from a developer of a timeshare plan for any accommodations in the plan located outside this state. The developer must file written notice of the intent to register under this section not later than the 15th day before the date the abbreviated application is submitted.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scC/s221.022/d">
<num value="d">(d)</num>
<chapeau>A developer of a timeshare plan with any accommodation located in this state may not file an abbreviated application unless:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scC/s221.022/1">
<num value="1">(1)</num>
<chapeau>the developer is a:</chapeau>
<subparagraph identifier="/us/tx/pr/t12/c221/scC/s221.022/A">
<num value="A">(A)</num>
<content>successor in interest after a merger or acquisition; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scC/s221.022/B">
<num value="B">(B)</num>
<content>joint venture in which the previous developer or its affiliate is a partner or a member; and</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scC/s221.022/2">
<num value="2">(2)</num>
<content>the previous developer registered the timeshare plan in this state preceding the merger, acquisition, or joint venture.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scC/s221.022/e">
<num value="e">(e)</num>
<chapeau>A developer filing an abbreviated application must provide:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scC/s221.022/1">
<num value="1">(1)</num>
<content>the legal name and any assumed names and the principal office location, mailing address, telephone number, and primary contact person of the developer;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scC/s221.022/2">
<num value="2">(2)</num>
<content>the name, location, mailing address, telephone number, and primary contact person of the timeshare plan;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scC/s221.022/3">
<num value="3">(3)</num>
<content>the name and address of the developer's authorized or registered agent for service of process in this state;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scC/s221.022/4">
<num value="4">(4)</num>
<content>the name, primary office location, mailing address, and telephone number of the managing entity of the timeshare plan;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scC/s221.022/5">
<num value="5">(5)</num>
<content>the certificate or other evidence of registration from any jurisdiction in which the timeshare plan is approved or accepted;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scC/s221.022/6">
<num value="6">(6)</num>
<content>the certificate or other evidence of registration from the appropriate regulatory agency of any other jurisdiction in the United States in which some or all of the accommodations are located;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scC/s221.022/7">
<num value="7">(7)</num>
<content>a declaration stating whether the timeshare plan is a single-site timeshare plan or a multisite timeshare plan;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scC/s221.022/8">
<num value="8">(8)</num>
<content>if the plan is a multisite timeshare plan, a declaration stating whether the plan consists of specific timeshare interests or nonspecific timeshare interests;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scC/s221.022/9">
<num value="9">(9)</num>
<content>a disclosure of each jurisdiction in which the developer has applied for registration of the timeshare plan and whether the timeshare plan, the developer, or the managing entity used were denied registration or, during the five-year period before the registration application date, were the subject of a final adverse disposition in a disciplinary proceeding;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scC/s221.022/10">
<num value="10">(10)</num>
<content>if requested by the commission, copies of any disclosure documents required to be provided to purchasers or filed with any jurisdiction that approved or accepted the timeshare plan;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scC/s221.022/11">
<num value="11">(11)</num>
<content>the appropriate filing fee; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scC/s221.022/12">
<num value="12">(12)</num>
<content>any other information reasonably requested by the commission or required by commission rule.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scC/s221.022/f">
<num value="f">(f)</num>
<content>A foreign jurisdiction providing evidence of registration as provided by Subsection (e)(6) must have registration and disclosure requirements that are substantially similar to or stricter than the requirements of this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scC/s221.022/g">
<num value="g">(g)</num>
<content>The commission shall investigate all matters relating to the application and may in its discretion require a personal inspection of the proposed timeshare property by any persons designated by it. All direct expenses incurred by the commission in inspecting the property shall be borne by the applicant. The commission may require the applicant to pay an advance deposit sufficient to cover those expenses.</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987. Renumbered from Sec. 201.022 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 4, eff. January 15, 2006.
Acts 2009, 81st Leg., R.S., Ch. 279 (S.B. 1036), Sec. 1, eff. September 1, 2009.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scC/s221.023">
<num value="221.023">Sec. 221.023.</num>
<heading>AMENDMENT OF REGISTRATION</heading>
<content>The developer shall file amendments to the registration reporting to the commission any materially adverse change in any document contained in the registration not later than the 30th day after the date the developer knows or reasonably should know of the change. The developer may continue to offer and dispose of timeshare interests under the existing registration pending review of the amendments by the commission if the materially adverse change is disclosed to prospective purchasers.</content>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987. Renumbered from Sec. 201.023 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 4, eff. January 15, 2006.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scC/s221.024">
<num value="221.024">Sec. 221.024.</num>
<heading>POWERS OF COMMISSION</heading>
<subsection identifier="/us/tx/pr/t12/c221/scC/s221.024/a">
<num value="a">(a)</num>
<content>The commission may prescribe and publish forms and adopt rules necessary to carry out the provisions of this chapter and may suspend or revoke the registration of any developer, place on probation the registration of a developer that has been suspended or revoked, reprimand a developer, impose an administrative penalty of not more than $10,000, or take any other disciplinary action authorized by this chapter if, after notice and hearing, the commission determines that a developer has materially violated this chapter, the Deceptive Trade Practices-Consumer Protection Act (Subchapter E, Chapter 17, Business & Commerce Code), or the Contest and Gift Giveaway Act (Chapter 621, Business & Commerce Code).</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scC/s221.024/b">
<num value="b">(b)</num>
<chapeau>The commission:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scC/s221.024/1">
<num value="1">(1)</num>
<content>shall authorize the State Office of Administrative Hearings to conduct hearings in contested cases; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scC/s221.024/2">
<num value="2">(2)</num>
<content>may establish reasonable fees for forms and documents it provides to the public and for the filing or registration of documents required by this chapter.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scC/s221.024/c">
<num value="c">(c)</num>
<content>If the commission initiates a disciplinary proceeding under this chapter, the person is entitled to a hearing before the State Office of Administrative Hearings. The commission by rule shall adopt procedures to permit an appeal to the commission from a determination made by the State Office of Administrative Hearings in a disciplinary action.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scC/s221.024/d">
<num value="d">(d)</num>
<content>The commission shall set the time and place of the hearing.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scC/s221.024/e">
<num value="e">(e)</num>
<content>A disciplinary procedure under this chapter is governed by the contested case procedures of Chapter 2001, Government Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scC/s221.024/f">
<num value="f">(f)</num>
<content>The commission may file a suit in a district court of Travis County to prevent a violation of this chapter or for any other appropriate relief.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scC/s221.024/g">
<num value="g">(g)</num>
<chapeau>Judicial review of a commission order imposing an administrative penalty is:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scC/s221.024/1">
<num value="1">(1)</num>
<content>instituted by filing a petition as provided by Subchapter G, Chapter 2001, Government Code; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scC/s221.024/2">
<num value="2">(2)</num>
<content>by trial de novo.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987. Renumbered from Sec. 201.024 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989. Amended by Acts 1989, 71st Leg., ch. 381, Sec. 1, eff. June 14, 1989; Acts 1999, 76th Leg., ch. 62, Sec. 7.87, eff. Sept. 1, 1999.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 4, eff. January 15, 2006.
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.34, eff. April 1, 2009.
Acts 2009, 81st Leg., R.S., Ch. 23 (S.B. 862), Sec. 8, eff. May 12, 2009.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scC/s221.0245">
<num value="221.0245">Sec. 221.0245.</num>
<heading>COMPLAINT INVESTIGATION</heading>
<content>If the commission determines at any time that an allegation made or formal complaint submitted by a person is inappropriate or without merit, the commission shall dismiss the complaint and no further action may be taken. The commission may delegate to commission staff the duty to dismiss complaints under this section.</content>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 334 (S.B. 624), Sec. 43, eff. September 1, 2019.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scC/s221.025">
<num value="221.025">Sec. 221.025.</num>
<heading>EFFECT OF REGISTRATION ON OTHER LAWS: EXEMPTION FROM CERTAIN LAWS</heading>
<subsection identifier="/us/tx/pr/t12/c221/scC/s221.025/a">
<num value="a">(a)</num>
<content>A developer's compliance with this chapter exempts the developer's offer and disposition of timeshare interests subject to this chapter from securities and dealer registration under The Securities Act (Title 12, Government Code).</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scC/s221.025/b">
<num value="b">(b)</num>
<content>A timeshare plan created as a condominium regime before January 1, 1994, that complies with this chapter is exempt from the requirements of Section 81.112 relating to club membership.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scC/s221.025/c">
<num value="c">(c)</num>
<chapeau>A timeshare plan subject to Chapter 82 that complies with this chapter is exempt from the requirements of:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scC/s221.025/1">
<num value="1">(1)</num>
<content>Section 82.0675 relating to club membership; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scC/s221.025/2">
<num value="2">(2)</num>
<content>Sections 82.103(c)-(e) relating to declarant control.</content>
<continuation>(c-1) The exemption provided by Subsection (c)(2) applies to a timeshare plan created before September 1, 2013, and to the project instrument governing the timeshare property subject to the timeshare plan only if the developer and the association agree to the application of the exemption in writing and the project instrument is amended to provide for the application of the exemption. If the conditions provided by this subsection are not satisfied, a timeshare plan created before September 1, 2013, and the timeshare property subject to the timeshare plan are governed by any developer control provisions provided in the project instrument, notwithstanding any other law.</continuation>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scC/s221.025/d">
<num value="d">(d)</num>
<content>A developer's compliance with this chapter as to any timeshare plan exempts any company, as defined by Chapter 181, Finance Code (Texas Trust Company Act), that holds title to the timeshare interests in the timeshare plan from compliance with the Texas Trust Company Act as to the company's activities relating to the holding of that title.</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987. Renumbered from Sec. 201.025 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 4, eff. January 15, 2006.
Acts 2013, 83rd Leg., R.S., Ch. 1352 (S.B. 1372), Sec. 7, eff. September 1, 2013.
Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 2.39, eff. January 1, 2022.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scC/s221.026">
<num value="221.026">Sec. 221.026.</num>
<heading>ISSUANCE AND RENEWAL OF REGISTRATION</heading>
<subsection identifier="/us/tx/pr/t12/c221/scC/s221.026/a">
<num value="a">(a)</num>
<chapeau>The commission by rule shall adopt requirements for the issuance and renewal of a developer's registration under this chapter, including:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scC/s221.026/1">
<num value="1">(1)</num>
<content>the form required for application for registration or a renewal of registration; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scC/s221.026/2">
<num value="2">(2)</num>
<content>any supporting documentation required for registration or renewal of registration.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scC/s221.026/b">
<num value="b">(b)</num>
<content>The commission shall issue or renew a registration under this chapter for a period not to exceed 24 months.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scC/s221.026/c">
<num value="c">(c)</num>
<content>The commission may assess and collect a fee for the issuance or renewal of a registration under this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scC/s221.026/d">
<num value="d">(d)</num>
<content>The commission may assess and collect a late fee if the commission has not received the fee or any supporting documentation required before the 61st day after the date a registration is issued or renewed under this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scC/s221.026/e">
<num value="e">(e)</num>
<content>Failure to pay a renewal fee or late fee is a violation of this chapter.</content>
</subsection>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 4, eff. January 15, 2006.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scC/s221.027">
<num value="221.027">Sec. 221.027.</num>
<heading>TEMPORARY SUSPENSION</heading>
<subsection identifier="/us/tx/pr/t12/c221/scC/s221.027/a">
<num value="a">(a)</num>
<content>The presiding officer of the commission shall appoint a disciplinary panel consisting of three commission members to determine whether the registration for a timeshare plan under this chapter should be temporarily suspended.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scC/s221.027/b">
<num value="b">(b)</num>
<content>If the disciplinary panel determines from the information presented to the panel that a timeshare plan registered under this chapter would, by the continued disposition of the timeshare property, constitute a continuing threat to the public welfare, the panel shall temporarily suspend the registration of the timeshare plan.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scC/s221.027/c">
<num value="c">(c)</num>
<chapeau>A registration may be suspended under this section without notice or hearing on the complaint if:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scC/s221.027/1">
<num value="1">(1)</num>
<content>institution of proceedings for a hearing before the State Office of Administrative Hearings is initiated simultaneously with the temporary suspension; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scC/s221.027/2">
<num value="2">(2)</num>
<content>a hearing is held under Chapter 2001, Government Code, and this chapter as soon as possible.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scC/s221.027/d">
<num value="d">(d)</num>
<content>Notwithstanding Chapter 551, Government Code, the disciplinary panel may hold a meeting by telephone conference call if immediate action is required and convening the panel at one location is inconvenient for any member of the panel.</content>
</subsection>
<sourceCredit>Added by Acts 2007, 80th Leg., R.S., Ch. 1411 (S.B. 914), Sec. 58, eff. September 1, 2007.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 23 (S.B. 862), Sec. 9, eff. May 12, 2009.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scC/s221.028">
<num value="221.028">Sec. 221.028.</num>
<heading>DENIAL OF REGISTRATION RENEWAL</heading>
<subsection identifier="/us/tx/pr/t12/c221/scC/s221.028/a">
<num value="a">(a)</num>
<content>The commission may deny the renewal of a registration under this chapter if the developer is in violation of a commission order.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scC/s221.028/b">
<num value="b">(b)</num>
<content>The denial of a registration renewal under this section is subject to the same provisions as are applicable under Section 1101.364, Occupations Code, to the denial of a license.</content>
</subsection>
<sourceCredit>Added by Acts 2019, 86th Leg., R.S., Ch. 334 (S.B. 624), Sec. 44, eff. September 1, 2019.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t12/c221/scD">
<num value="D">SUBCHAPTER D.</num>
<heading>DISCLOSURE</heading>
<section identifier="/us/tx/pr/t12/c221/scD/s221.031">
<num value="221.031">Sec. 221.031.</num>
<heading>ADVERTISEMENTS AND PROMOTIONS</heading>
<subsection identifier="/us/tx/pr/t12/c221/scD/s221.031/a">
<num value="a">(a)</num>
<content>At any time, the commission may request a developer to file for review by the commission any advertisement used in this state by the developer in connection with offering a timeshare interest. The developer shall provide the advertisement not later than the 15th day after the date the commission makes the request. If the commission determines that the advertisement violates this chapter or Chapter 621, Business & Commerce Code, the commission shall notify the developer in writing, stating the specific grounds for the commission's determination not later than the 15th day after the date the commission makes its determination. The commission may grant the developer provisional approval for the advertisement if the developer agrees to correct the deficiencies identified by the commission. A developer, on its own initiative, may submit any proposed advertisement to the commission for review and approval by the commission.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scD/s221.031/b">
<num value="b">(b)</num>
<content>Any advertisement that contains a promotion in connection with the offering of a timeshare interest must comply with Chapter 621, Business & Commerce Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scD/s221.031/c">
<num value="c">(c)</num>
<chapeau>As provided by Subsections (d) and (e), an advertisement that contains a promotion in connection with the offering of a timeshare interest must include, in addition to any disclosures required under Chapter 621, Business & Commerce Code, the following:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.031/1">
<num value="1">(1)</num>
<content>a statement to the effect that the promotion is intended to solicit purchasers of timeshare interests;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.031/2">
<num value="2">(2)</num>
<content>if applicable, a statement to the effect that any person whose name is obtained during the promotion may be solicited to purchase a timeshare interest;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.031/3">
<num value="3">(3)</num>
<content>the full name of the developer of the timeshare property; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.031/4">
<num value="4">(4)</num>
<content>if applicable, the full name and address of any marketing company involved in the promotion of the timeshare property, excluding the developer or an affiliate or subsidiary of the developer.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scD/s221.031/d">
<num value="d">(d)</num>
<chapeau>An advertisement containing the disclosures required by Chapter 621, Business & Commerce Code, and Subsection (c) must be provided in writing or electronically:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.031/1">
<num value="1">(1)</num>
<content>at least once before a scheduled sales presentation; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.031/2">
<num value="2">(2)</num>
<content>in a reasonable period before the scheduled sales presentation to ensure that the recipient receives the disclosures before leaving to attend the sales presentation.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scD/s221.031/e">
<num value="e">(e)</num>
<content>The developer is not required to provide the disclosures required by this section in every advertisement or other written, oral, or electronic communication provided or made to a recipient before a scheduled sales presentation.</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987. Renumbered from Sec. 201.031 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989. Amended by Acts 1989, 71st Leg., ch. 381, Sec. 2, eff. June 14, 1989.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 5, eff. January 15, 2006.
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 2.35, eff. April 1, 2009.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scD/s221.032">
<num value="221.032">Sec. 221.032.</num>
<heading>TIMESHARE DISCLOSURE STATEMENT</heading>
<subsection identifier="/us/tx/pr/t12/c221/scD/s221.032/a">
<num value="a">(a)</num>
<content>Before the signing of any agreement to acquire a timeshare interest, the developer shall provide a timeshare disclosure statement to the prospective purchaser and shall obtain from the purchaser a written acknowledgement of receipt of the timeshare disclosure statement.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scD/s221.032/b">
<num value="b">(b)</num>
<chapeau>The timeshare disclosure statement for a single-site timeshare plan or a multisite timeshare plan that includes a specific timeshare interest must include:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/1">
<num value="1">(1)</num>
<chapeau>the type of timeshare plan offered and the name and address of:</chapeau>
<subparagraph identifier="/us/tx/pr/t12/c221/scD/s221.032/A">
<num value="A">(A)</num>
<content>the developer; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scD/s221.032/B">
<num value="B">(B)</num>
<content>the single site or specific site offered for the multisite timeshare plan;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/2">
<num value="2">(2)</num>
<content>a description of the duration and operation of the timeshare plan;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/3">
<num value="3">(3)</num>
<content>a description of the existing or proposed accommodations, including the type and number of timeshare interests in the accommodations expressed in periods of seven-day use availability or other time increment applicable to the timeshare plan. The description of each type of accommodation included in the timeshare plan shall be categorized by the number of bedrooms, the number of bathrooms, and sleeping capacity, and shall include a statement indicating whether the accommodation contains a full kitchen, which means a kitchen that has a minimum of a dishwasher, range, sink, oven, and refrigerator. If the accommodations are proposed or incomplete, a schedule for commencement, completion, and availability of the accommodations shall be provided;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/4">
<num value="4">(4)</num>
<content>a description of any existing or proposed amenities of the timeshare plan and, if the amenities are proposed or incomplete, a schedule for commencement, completion, and availability of the amenities;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/5">
<num value="5">(5)</num>
<content>the extent to which financial arrangements have been provided for the completion of all promised accommodations and amenities that are committed to be built;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/6">
<num value="6">(6)</num>
<content>a description of the method and timing for performing maintenance of the accommodations;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/7">
<num value="7">(7)</num>
<content>a statement indicating that, on an annual basis, the sum of the nights that purchasers are entitled to use the accommodations does not exceed the number of nights the accommodations are available for use by the purchasers;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/8">
<num value="8">(8)</num>
<content>a description of the method by which purchasers' use of the accommodations is scheduled;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/9">
<num value="9">(9)</num>
<content>a statement that an association exists or is expected to be created or that such an association does not exist and is not expected to be created and, if such an association exists or is reasonably contemplated, a description of its powers and responsibilities;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/10">
<num value="10">(10)</num>
<chapeau>relating to the single-site timeshare plan or the specific timeshare interest of a multisite timeshare plan, copies of the following documents, if applicable, including any amendments to the documents, unless separately provided to the purchaser simultaneously with the timeshare disclosure statement:</chapeau>
<subparagraph identifier="/us/tx/pr/t12/c221/scD/s221.032/A">
<num value="A">(A)</num>
<content>the declaration;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scD/s221.032/B">
<num value="B">(B)</num>
<content>the association articles of incorporation;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scD/s221.032/C">
<num value="C">(C)</num>
<content>the association bylaws;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scD/s221.032/D">
<num value="D">(D)</num>
<content>the association rules; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scD/s221.032/E">
<num value="E">(E)</num>
<content>any lease or contract, excluding the purchase contract and other loan documents required to be signed by the purchaser at closing;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/11">
<num value="11">(11)</num>
<content>the name and principal address of the managing entity and a description of the procedures, if any, for altering the powers and responsibilities of the managing entity and for removing or replacing it;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/12">
<num value="12">(12)</num>
<chapeau>the current annual budget, if available, or the projected annual budget for the timeshare plan or timeshare properties managed by the same managing entity if assessments are deposited in a common account. The budget must include:</chapeau>
<subparagraph identifier="/us/tx/pr/t12/c221/scD/s221.032/A">
<num value="A">(A)</num>
<content>a statement of the amount reserved or budgeted for repairs, replacements, and refurbishment;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scD/s221.032/B">
<num value="B">(B)</num>
<content>the projected common expense liability, if any, by category of expenditure for the timeshare plan or timeshare properties managed by the same managing entity; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scD/s221.032/C">
<num value="C">(C)</num>
<content>the assumptions on which the operating budget is based;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/13">
<num value="13">(13)</num>
<content>the projected assessments and a description of the method for calculating and apportioning those assessments among purchasers;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/14">
<num value="14">(14)</num>
<content>any initial fee or special fee due from the purchaser at closing, together with a description of the purpose and method of calculating the fee;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/15">
<num value="15">(15)</num>
<content>a description of any lien, defect, or encumbrance on or affecting title to the timeshare interest and, if applicable, a copy of each written warranty provided by the developer;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/16">
<num value="16">(16)</num>
<content>a description of any bankruptcy that is pending or that has occurred within the past five years, pending civil or criminal suit, adjudication, or disciplinary actions material to the timeshare plan of which the developer has knowledge;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/17">
<num value="17">(17)</num>
<content>a description of any financing offered by or available through the developer;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/18">
<num value="18">(18)</num>
<content>any current or anticipated fees or charges to be paid by timeshare purchasers for the use of any accommodations or amenities related to the timeshare plan, and a statement that the fees or charges are subject to change;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/19">
<num value="19">(19)</num>
<content>a description and amount of insurance coverage provided for the protection of the purchaser;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/20">
<num value="20">(20)</num>
<content>the extent to which a timeshare interest may become subject to a tax lien or other lien arising out of claims against purchasers of different timeshare interests;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/21">
<num value="21">(21)</num>
<content>a description of those matters required by Section 221.041;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/22">
<num value="22">(22)</num>
<content>a statement disclosing any right of first refusal or other restraint on the transfer of all or any portion of a timeshare interest;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/23">
<num value="23">(23)</num>
<content>a statement disclosing that any deposit made in connection with the purchase of a timeshare interest must be held by an escrow agent until expiration of any right to cancel the contract and that any deposit must be returned to the purchaser if the purchaser elects to exercise the right of cancellation; or, if the commission accepts from the developer a surety bond, irrevocable letter of credit, or other form of financial assurance instead of an escrow deposit, a statement disclosing that the developer has provided a surety bond, irrevocable letter of credit, or other form of financial assurance in an amount equal to or in excess of the funds that would otherwise be held by an escrow agent and that the deposit must be returned if the purchaser elects to exercise the right of cancellation;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/24">
<num value="24">(24)</num>
<content>if applicable, a statement that the assessments collected from the purchasers may be placed in a common account with the assessments collected from the purchasers of other timeshare properties managed by the same managing entity;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/25">
<num value="25">(25)</num>
<content>if the timeshare plan provides purchasers with the opportunity to participate in an exchange program, a description of the name and address of the exchange company and the method by which a purchaser accesses the exchange program; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/26">
<num value="26">(26)</num>
<content>any other information the commission determines is necessary to protect prospective purchasers or to implement the purpose of this chapter.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scD/s221.032/c">
<num value="c">(c)</num>
<chapeau>A developer who offers a specific timeshare interest in a multisite timeshare plan also must fully disclose the following information in written, graphic, or tabular form:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/1">
<num value="1">(1)</num>
<content>a description of each component site, including the name and address of each component site;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/2">
<num value="2">(2)</num>
<content>a description of each type of accommodation in each component site, categorized by the number of bedrooms, the number of bathrooms, and sleeping capacity, and a statement indicating whether the accommodation contains a full kitchen, which means a kitchen that has a minimum of a dishwasher, range, sink, oven, and refrigerator;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/3">
<num value="3">(3)</num>
<content>a description of the amenities at each component site available for use by the purchasers;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/4">
<num value="4">(4)</num>
<chapeau>a description of the reservation system, which must include:</chapeau>
<subparagraph identifier="/us/tx/pr/t12/c221/scD/s221.032/A">
<num value="A">(A)</num>
<content>the entity responsible for operating the reservation system, its relationship to the developer, and the duration of any agreement for operation of the reservation system;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scD/s221.032/B">
<num value="B">(B)</num>
<content>a summary or the rules governing access to and use of the reservation system; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scD/s221.032/C">
<num value="C">(C)</num>
<content>the existence of and explanation regarding any priority reservation features that affect a purchaser's ability to make reservations for the use of a given accommodation on a first-come, first-served basis;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/5">
<num value="5">(5)</num>
<content>the name and principal address of the managing entity for the multisite timeshare plan and a description of the procedures, if any, for altering the powers and responsibilities of the managing entity and for removing or replacing it;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/6">
<num value="6">(6)</num>
<content>a description of any right to make additions to, substitutions in, or deletions from accommodations, amenities, or component sites, and a description of the basis on which accommodations, amenities, or component sites may be added to, substituted in, or deleted from the multisite timeshare plan;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/7">
<num value="7">(7)</num>
<content>a description of the purchaser's liability for any fees associated with the multisite timeshare plan;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/8">
<num value="8">(8)</num>
<content>the location of each component site of the multisite timeshare plan, the historical occupancy of each component site for the prior 12-month period, if the component site was part of the multisite timeshare plan during such 12-month time period, as well as any periodic adjustment or amendment to the reservation system that may be needed in order to respond to actual purchaser use patterns and changes in purchaser use demand for the accommodations existing at the time within the multisite timeshare plan; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/9">
<num value="9">(9)</num>
<content>any other information the commission determines is necessary to protect prospective purchasers or to implement the purpose of this chapter.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scD/s221.032/d">
<num value="d">(d)</num>
<chapeau>A developer who offers a nonspecific timeshare interest in a multisite timeshare plan must disclose the following information in written, graphic, or tabular form:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/1">
<num value="1">(1)</num>
<content>the name and address of the developer;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/2">
<num value="2">(2)</num>
<content>a description of the type of interest and the usage rights the purchaser will receive;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/3">
<num value="3">(3)</num>
<content>a description of the duration and operation of the timeshare plan;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/4">
<num value="4">(4)</num>
<content>a description of the type of insurance coverage provided for each component site;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/5">
<num value="5">(5)</num>
<content>an explanation of who holds title to the accommodations of each component site;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/6">
<num value="6">(6)</num>
<content>a description of each component site, including the name and address of each component site;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/7">
<num value="7">(7)</num>
<content>a description of the existing or proposed accommodations, expressed in periods of seven-day use availability or any other time increment applicable to the timeshare plan. The description of each type of accommodation included in the timeshare plan shall be categorized by the number of bedrooms, the number of bathrooms, and sleeping capacity, and shall include a statement indicating whether the accommodation contains a full kitchen, which means a kitchen that has a minimum of a dishwasher, range, sink, oven, and refrigerator. If the accommodations are proposed or incomplete, a schedule for commencement, completion, and availability of the accommodations shall be provided;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/8">
<num value="8">(8)</num>
<content>a statement that an association exists or is expected to be created or that such an association does not exist and is not expected to be created and, if such an association exists or is reasonably contemplated, a description of its powers and responsibilities;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/9">
<num value="9">(9)</num>
<chapeau>if applicable, copies of the following documents applicable to the multisite timeshare plan, including any amendments to the documents, unless separately provided to the purchaser simultaneously with the timeshare disclosure statement:</chapeau>
<subparagraph identifier="/us/tx/pr/t12/c221/scD/s221.032/A">
<num value="A">(A)</num>
<content>the declaration;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scD/s221.032/B">
<num value="B">(B)</num>
<content>the association articles of incorporation;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scD/s221.032/C">
<num value="C">(C)</num>
<content>the association bylaws;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scD/s221.032/D">
<num value="D">(D)</num>
<content>the association rules; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scD/s221.032/E">
<num value="E">(E)</num>
<content>any lease or contract, excluding the purchase contract and other loan documents required to be signed by the purchaser at closing;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/10">
<num value="10">(10)</num>
<content>a description of the method and timing for performing maintenance of the accommodations;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/11">
<num value="11">(11)</num>
<content>a statement indicating that, on an annual basis, the sum of the nights that purchasers are entitled to use the accommodations does not exceed the number of nights the accommodations are available for use by the purchasers;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/12">
<num value="12">(12)</num>
<content>a description of each type of accommodation included in the timeshare plan, categorized by the number of bedrooms, the number of bathrooms, and sleeping capacity, and a statement indicating whether the accommodation contains a full kitchen, which means a kitchen that has a minimum of a dishwasher, range, sink, oven, and refrigerator;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/13">
<num value="13">(13)</num>
<content>a description of amenities available for use by the purchaser at each component site;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/14">
<num value="14">(14)</num>
<content>the location of each component site of the multisite timeshare plan, the historical occupancy of each component site for the prior 12-month period, if the component site was part of the multisite timeshare plan during such 12-month time period, as well as any periodic adjustment or amendment to the reservation system that may be needed in order to respond to actual purchaser use patterns and changes in purchaser use demand for the accommodations existing at the time within the multisite timeshare plan;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/15">
<num value="15">(15)</num>
<content>a description of the right to make any additions, substitutions, or deletions of accommodations, amenities, or component sites, and a description of the basis upon which accommodations, amenities, or component sites may be added to, substituted in, or deleted from the multisite timeshare plan;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/16">
<num value="16">(16)</num>
<chapeau>a description of the reservation system that shall include all of the following:</chapeau>
<subparagraph identifier="/us/tx/pr/t12/c221/scD/s221.032/A">
<num value="A">(A)</num>
<content>the entity responsible for operating the reservation system, its relationship to the developer, and the duration of any agreement for operation of the reservation system;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scD/s221.032/B">
<num value="B">(B)</num>
<content>a summary of the rules governing access to and use of the reservation system; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scD/s221.032/C">
<num value="C">(C)</num>
<content>the existence of and an explanation regarding any priority reservation features that affect a purchaser's ability to make reservations for the use of a given accommodation on a first-come, first-served basis;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/17">
<num value="17">(17)</num>
<content>the name and principal address of the managing entity for the multisite timeshare plan and a description of the procedures, if any, for altering the powers and responsibilities of the managing entity and for removing or replacing it, and a description of the relationship between the multisite timeshare plan managing entity and the managing entity of the component sites of the multisite timeshare plan, if different from the multisite timeshare plan managing entity;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/18">
<num value="18">(18)</num>
<chapeau>the current annual budget of the multisite timeshare plan, if available, or the projected annual budget for the multisite timeshare plan, which must include:</chapeau>
<subparagraph identifier="/us/tx/pr/t12/c221/scD/s221.032/A">
<num value="A">(A)</num>
<content>a statement of the amount reserved or budgeted for repairs, replacements, and refurbishment;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scD/s221.032/B">
<num value="B">(B)</num>
<content>the projected common expense liability, if any, by category of expenditure for the multisite timeshare plan; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scD/s221.032/C">
<num value="C">(C)</num>
<content>the assumptions on which the operating budget is based;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/19">
<num value="19">(19)</num>
<content>the projected assessments and a description of the method for calculating and apportioning those assessments among purchasers of the multisite timeshare plan;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/20">
<num value="20">(20)</num>
<content>if applicable, a statement that the assessments collected from the purchasers may be placed in a common account with the assessments collected from the purchasers of other timeshare properties managed by the same managing entity;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/21">
<num value="21">(21)</num>
<content>any current fees or charges to be paid by timeshare purchasers for the use of any amenities related to the timeshare plan and a statement that the fees or charges are subject to change;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/22">
<num value="22">(22)</num>
<content>any initial or special fee due from the purchaser at closing, together with a description of the purpose of and method of calculating the fee;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/23">
<num value="23">(23)</num>
<content>a description of the purchaser's liability for any fees associated with the multisite timeshare plan;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/24">
<num value="24">(24)</num>
<content>a description of any lien, defect, or encumbrance on or affecting title to the timeshare interest and, if applicable, a copy of each written warranty provided by the developer;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/25">
<num value="25">(25)</num>
<content>the extent to which a timeshare interest may become subject to a tax lien or other lien arising out of claims against purchasers of different timeshare interests;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/26">
<num value="26">(26)</num>
<content>a description of those matters required by Section 221.041;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/27">
<num value="27">(27)</num>
<content>a description of any financing offered by or available through the developer;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/28">
<num value="28">(28)</num>
<content>a description of any bankruptcy that is pending or that has occurred within the past five years, pending civil or criminal suits, adjudications, or disciplinary actions material to the timeshare plan of which the developer has knowledge;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/29">
<num value="29">(29)</num>
<content>a statement disclosing any right of first refusal or other restraint on the transfer of all or a portion of a timeshare interest;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/30">
<num value="30">(30)</num>
<content>a statement disclosing that any deposit made in connection with the purchase of a timeshare interest must be held by an escrow agent until expiration of any right to cancel the contract and that any deposit must be returned to the purchaser if the purchaser elects to exercise the right of cancellation; or, if the commission accepts from the developer a surety bond, irrevocable letter of credit, or other form of financial assurance instead of an escrow deposit, a statement disclosing that the developer has provided a surety bond, irrevocable letter of credit, or other form of financial assurance in an amount equal to or in excess of the funds that would otherwise be held by an escrow agent and that the deposit must be returned if the purchaser elects to exercise the right of cancellation;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/31">
<num value="31">(31)</num>
<content>if the timeshare plan provides purchasers with the opportunity to participate in an exchange program, a description of the name and address of the exchange company and the method by which a purchaser accesses the exchange program; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.032/32">
<num value="32">(32)</num>
<content>any other information the commission determines is necessary to protect prospective purchasers or to implement the purpose of this chapter.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scD/s221.032/e">
<num value="e">(e)</num>
<content>A developer may include any other information in a timeshare disclosure statement required by this section on approval by the commission.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scD/s221.032/f">
<num value="f">(f)</num>
<content>If a timeshare plan is located wholly outside this state, the commission may permit the developer to submit a timeshare disclosure statement the developer is currently providing purchasers or an equivalent timeshare disclosure statement filed for the timeshare plan in another state if the current statement or the equivalent statement substantially complies with the requirements of this subchapter. This subsection does not exempt the developer from other requirements of this chapter.</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987. Renumbered from Sec. 201.032 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989. Amended by Acts 1993, 73rd Leg., ch. 443, Sec. 3, eff. Sept. 1, 1993.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 5, eff. January 15, 2006.
Acts 2009, 81st Leg., R.S., Ch. 279 (S.B. 1036), Sec. 2, eff. September 1, 2009.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scD/s221.033">
<num value="221.033">Sec. 221.033.</num>
<heading>EXCHANGE DISCLOSURE STATEMENT</heading>
<subsection identifier="/us/tx/pr/t12/c221/scD/s221.033/a">
<num value="a">(a)</num>
<content>Before the signing of any agreement to purchase a timeshare interest in which a prospective purchaser is also offered participation in any exchange program, the developer shall also deliver to the prospective purchaser the exchange disclosure statement of any exchange company whose service is advertised or offered by the developer or other person in connection with the disposition.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scD/s221.033/b">
<num value="b">(b)</num>
<content>If participation in an exchange program is offered for the first time after a disposition has occurred, any person offering that participation shall also deliver an exchange disclosure statement to the purchaser before the execution by the purchaser of any instrument relating to participation in the exchange program.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scD/s221.033/c">
<num value="c">(c)</num>
<content>In all cases, the person offering participation in the exchange program shall obtain from the purchaser a written acknowledgement of receipt of the exchange disclosure statement.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scD/s221.033/d">
<num value="d">(d)</num>
<chapeau>The exchange disclosure statement must include the following information:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.033/1">
<num value="1">(1)</num>
<content>the name and address of the exchange company;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.033/2">
<num value="2">(2)</num>
<content>if the exchange company is not the developer, a statement describing the legal relationship, if any, between the exchange company and the developer;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.033/3">
<num value="3">(3)</num>
<content>a statement indicating the conditions under which the exchange program might terminate or become unavailable;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.033/4">
<num value="4">(4)</num>
<content>whether membership or participation or both in the exchange program is voluntary or mandatory;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.033/5">
<num value="5">(5)</num>
<content>a complete description of the required procedure for executing an exchange of timeshare periods;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.033/6">
<num value="6">(6)</num>
<content>the fee required for membership or participation or both in the program and whether the fee is subject to change;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.033/7">
<num value="7">(7)</num>
<content>a statement to the effect that participation in the exchange program is conditioned on compliance with the terms of a contract between the exchange company and the purchaser;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.033/8">
<num value="8">(8)</num>
<content>a statement in conspicuous and bold-faced print to the effect that all exchanges are arranged on a space-available basis and that neither the developer nor the exchange company guarantees that a particular timeshare period can be exchanged; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.033/9">
<num value="9">(9)</num>
<content>a description of seasonal demand and unit occupancy restrictions employed in the exchange program.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987. Renumbered from Sec. 201.033 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 6, eff. January 15, 2006.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scD/s221.034">
<num value="221.034">Sec. 221.034.</num>
<heading>EXEMPT OFFERINGS AND DISPOSITIONS; COMMUNICATIONS</heading>
<subsection identifier="/us/tx/pr/t12/c221/scD/s221.034/a">
<num value="a">(a)</num>
<chapeau>An offering or disposition is exempt from this chapter if it is:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.034/1">
<num value="1">(1)</num>
<content>a gratuitous offering or disposition of a timeshare interest;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.034/2">
<num value="2">(2)</num>
<content>a disposition pursuant to a court order;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.034/3">
<num value="3">(3)</num>
<content>a disposition by a governmental agency;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.034/4">
<num value="4">(4)</num>
<content>a disposition by foreclosure or deed in lieu of foreclosure;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.034/5">
<num value="5">(5)</num>
<content>an offering or disposition by an association of its own timeshare interest acquired through foreclosure, deed in lieu of foreclosure, or gratuitous transfer;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.034/6">
<num value="6">(6)</num>
<content>an offering or disposition of all timeshare interests in a timeshare plan to not more than five persons;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.034/7">
<num value="7">(7)</num>
<content>an offering or disposition of a timeshare interest in a timeshare property situated wholly outside this state under a contract executed wholly outside this state, if there has been no offering to the purchaser within this state;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.034/8">
<num value="8">(8)</num>
<content>an offering or disposition of a timeshare interest to a purchaser who is not a resident of this state under a contract executed wholly outside this state, if there has been no offering to the purchaser within this state;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.034/9">
<num value="9">(9)</num>
<content>the offering or redisposition of a timeshare interest by a purchaser who acquired the interest for the purchaser's personal use; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.034/10">
<num value="10">(10)</num>
<content>the offering or disposition of a rental of an accommodation for a period of three years or less.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scD/s221.034/b">
<num value="b">(b)</num>
<chapeau>If a developer has a timeshare plan registered under this chapter and is subject to Section 221.024, the developer may offer or dispose of an interest in a timeshare plan that is not registered under this chapter to a person who is the owner of a timeshare interest in a timeshare plan created by the developer. A developer under this subsection is exempt from Sections 221.021, 221.022, 221.023, 221.032, 221.041, 221.042, 221.043, 221.061, 221.071(a)(1) and (8), 221.074, and 221.075 if the developer:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.034/1">
<num value="1">(1)</num>
<content>permits the purchaser to cancel the purchase contract before the sixth day after the date the contract is signed; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.034/2">
<num value="2">(2)</num>
<content>provides the purchaser all timeshare disclosure documents required by law to be provided in the jurisdiction in which the timeshare property is located.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scD/s221.034/c">
<num value="c">(c)</num>
<chapeau>The following communications are not advertisements under this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.034/1">
<num value="1">(1)</num>
<content>any stockholder communication, including an annual report or interim financial report, proxy material, registration statement, securities prospectus, timeshare disclosure statement, or other material required to be delivered to a prospective purchaser by a state or federal governmental entity;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.034/2">
<num value="2">(2)</num>
<chapeau>any oral or written statement disseminated by a developer to broadcast or print media, excluding:</chapeau>
<subparagraph identifier="/us/tx/pr/t12/c221/scD/s221.034/A">
<num value="A">(A)</num>
<content>paid advertising or promotional material relating to plans for acquiring or developing timeshare property; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scD/s221.034/B">
<num value="B">(B)</num>
<content>the rebroadcast or other dissemination of any oral statements by a developer to a prospective purchaser or the distribution or other dissemination of written statements, including newspaper or magazine articles or press releases, by a developer to prospective purchasers;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.034/3">
<num value="3">(3)</num>
<content>the offering of a timeshare interest in a national publication or by electronic media that is not directed to or targeted at any individual located in this state;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.034/4">
<num value="4">(4)</num>
<chapeau>any audio, written, or visual publication or material relating to the availability of any accommodations for transient rental if:</chapeau>
<subparagraph identifier="/us/tx/pr/t12/c221/scD/s221.034/A">
<num value="A">(A)</num>
<content>a sales presentation is not a term or condition of the availability of the accommodations; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scD/s221.034/B">
<num value="B">(B)</num>
<content>the failure of the transient renter to take a tour of the timeshare property or attend a sales presentation does not result in a reduction in the level of services or an increase in the rental price that would otherwise be available to the renter; or</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.034/5">
<num value="5">(5)</num>
<content>any follow-up communication with a person relating to a promotion if the person previously received an advertisement relating to the promotion that complied with Section 221.031.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scD/s221.034/d">
<num value="d">(d)</num>
<chapeau>The following communications are exempt from this chapter if they are delivered to a person who has previously executed a contract for the purchase of or is an owner of a timeshare interest in a timeshare plan:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.034/1">
<num value="1">(1)</num>
<content>any communication addressed to and relating to the account of the person; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.034/2">
<num value="2">(2)</num>
<content>any audio, written, or visual publication or material relating to an exchange company or program if the person is a member of that exchange company or program.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987. Renumbered from Sec. 201.034 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 7, eff. January 15, 2006.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scD/s221.035">
<num value="221.035">Sec. 221.035.</num>
<heading>SUPERVISORY DUTIES OF DEVELOPER</heading>
<content>Notwithstanding obligations placed upon any other persons by this chapter, the developer shall supervise, manage, and control all aspects of the offering of a timeshare interest, including but not limited to promotion, advertising, contracting, and closing. Any violation of this chapter which occurs during such offering activities is considered to be a violation by the developer as well as by the person actually committing the violation.</content>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 381, Sec. 3, eff. June 14, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scD/s221.036">
<num value="221.036">Sec. 221.036.</num>
<heading>DEVELOPER PREPARATION AND COMPLETION OF DOCUMENTS</heading>
<subsection identifier="/us/tx/pr/t12/c221/scD/s221.036/a">
<num value="a">(a)</num>
<content>A developer may charge a reasonable fee for completion of a contract form, closing document, or disclosure document required for the sale, exchange, option, lease, or rental of a timeshare interest.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scD/s221.036/b">
<num value="b">(b)</num>
<chapeau>The action of a developer under Subsection (a) does not constitute the unauthorized or illegal practice of law in this state if the contract or document has been:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.036/1">
<num value="1">(1)</num>
<content>accepted by the commission for use in the particular type of transaction involved; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scD/s221.036/2">
<num value="2">(2)</num>
<content>prepared by an attorney licensed to practice law in this state for use in the particular type of transaction involved.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 1244, Sec. 1, eff. June 20, 2003.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scD/s221.037">
<num value="221.037">Sec. 221.037.</num>
<heading>ALTERNATIVE TERMINOLOGY OR NAME</heading>
<subsection identifier="/us/tx/pr/t12/c221/scD/s221.037/a">
<num value="a">(a)</num>
<content>In providing the disclosures required by this chapter, the use of the terms "vacation ownership interest" or "vacation ownership plan" to refer to the timeshare interest or plan offered by the developer, or the use of other terms that are substantially similar and that are regularly used by the developer to denote a timeshare interest or plan, is sufficient and complies with the requirements of this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scD/s221.037/b">
<num value="b">(b)</num>
<content>In providing the full name of a developer or a marketing company as required by this chapter, the disclosure of an assumed name of the developer or the marketing company, if the entity has complied with the requirements of the applicable assumed business names statutes or other laws regarding the use of the assumed name, is sufficient and complies with this chapter.</content>
</subsection>
<sourceCredit>Added by Acts 2009, 81st Leg., R.S., Ch. 279 (S.B. 1036), Sec. 3, eff. September 1, 2009.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t12/c221/scE">
<num value="E">SUBCHAPTER E.</num>
<heading>CANCELLATION OF PURCHASE CONTRACT</heading>
<section identifier="/us/tx/pr/t12/c221/scE/s221.041">
<num value="221.041">Sec. 221.041.</num>
<heading>PURCHASER'S RIGHT TO CANCEL</heading>
<subsection identifier="/us/tx/pr/t12/c221/scE/s221.041/a">
<num value="a">(a)</num>
<content>A purchaser may cancel a purchase contract before the sixth day after the date the purchaser signs and receives a copy of the purchase contract or receives the required timeshare disclosure statement, whichever is later.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scE/s221.041/b">
<num value="b">(b)</num>
<content>A purchaser may not waive the right of cancellation under this section. A contract containing a waiver is voidable by the purchaser.</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987. Renumbered from Sec. 201.041 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989. Amended by Acts 1989, 71st Leg., ch. 381, Sec. 4, eff. June 14, 1989; Acts 1993, 73rd Leg., ch. 443, Sec. 4, eff. Sept. 1, 1993.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 8, eff. January 15, 2006.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scE/s221.042">
<num value="221.042">Sec. 221.042.</num>
<heading>NOTICE; REFUND</heading>
<subsection identifier="/us/tx/pr/t12/c221/scE/s221.042/a">
<num value="a">(a)</num>
<content>If a purchaser elects to cancel a purchase contract under Section 221.041, the purchaser may do so by hand-delivering notice of cancellation to the developer, by mailing notice by prepaid United States mail to the developer or to the developer's agent for service of process, or by providing notice by overnight common carrier delivery service to the developer or the developer's agent for service of process.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scE/s221.042/b">
<num value="b">(b)</num>
<content>Cancellation is without penalty, and all payments made by the purchaser before cancellation must be refunded on or before the 30th day after the date on which the developer receives a timely notice of cancellation or on or before the fifth day after the date the developer receives good funds from the purchaser, whichever is later.</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987. Renumbered from Sec. 201.042 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 8, eff. January 15, 2006.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scE/s221.043">
<num value="221.043">Sec. 221.043.</num>
<heading>CONTRACT REQUIREMENTS</heading>
<subsection identifier="/us/tx/pr/t12/c221/scE/s221.043/a">
<num value="a">(a)</num>
<content>Each purchase contract shall contain the following information. The statements required by this subsection and Subsection (c)(8) shall be provided in a conspicuous manner and in the exact language set forth in this section with the developer's name and address, the date of the last day of the fiscal year, and the address of the managing entity inserted where indicated:</content>
<continuation>"PURCHASER'S RIGHT TO CANCEL.</continuation>
<continuation>"(1) BY SIGNING THIS CONTRACT YOU ARE INCURRING AN OBLIGATION TO PURCHASE A TIMESHARE INTEREST. YOU MAY, HOWEVER, CANCEL THIS CONTRACT WITHOUT PENALTY OR OBLIGATION BEFORE THE SIXTH DAY AFTER THE DATE YOU SIGN AND RECEIVE A COPY OF THE PURCHASE CONTRACT, OR RECEIVE THE REQUIRED TIMESHARE DISCLOSURE STATEMENT, WHICHEVER IS LATER.</continuation>
<continuation>"(2) IF YOU DECIDE TO CANCEL THIS CONTRACT, YOU MAY DO SO BY EITHER HAND-DELIVERING NOTICE OF CANCELLATION TO THE DEVELOPER, BY MAILING NOTICE BY PREPAID UNITED STATES MAIL TO THE DEVELOPER OR THE DEVELOPER'S AGENT FOR SERVICE OF PROCESS, OR BY PROVIDING NOTICE BY OVERNIGHT COMMON CARRIER DELIVERY SERVICE TO THE DEVELOPER OR THE DEVELOPER'S AGENT FOR SERVICE OF PROCESS. YOUR NOTICE OF CANCELLATION IS EFFECTIVE ON THE DATE SENT OR DELIVERED TO (INSERT NAME OF DEVELOPER) AT (INSERT ADDRESS OF DEVELOPER). FOR YOUR PROTECTION, SHOULD YOU DECIDE TO CANCEL YOU SHOULD EITHER SEND YOUR NOTICE OF CANCELLATION BY CERTIFIED MAIL WITH A RETURN RECEIPT REQUESTED OR OBTAIN A SIGNED AND DATED RECEIPT IF DELIVERING IT IN PERSON OR BY OVERNIGHT COMMON CARRIER.</continuation>
<continuation>"(3) A PURCHASER SHOULD NOT RELY ON STATEMENTS OTHER THAN THOSE INCLUDED IN THIS CONTRACT AND THE DISCLOSURE STATEMENT."</continuation>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scE/s221.043/b">
<num value="b">(b)</num>
<content>Immediately following the required statements in Subsection (a) shall be a space reserved for the signature of the purchaser.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scE/s221.043/c">
<num value="c">(c)</num>
<chapeau>The purchase contract must also include the following:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scE/s221.043/1">
<num value="1">(1)</num>
<content>the name and address of the developer and the address of the timeshare property or the address of any available timeshare interest being offered;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scE/s221.043/2">
<num value="2">(2)</num>
<content>an agreement describing the cancellation policy prescribed by Section 221.041;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scE/s221.043/3">
<num value="3">(3)</num>
<content>the name of the person or persons primarily involved in the sales presentation on behalf of the developer;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scE/s221.043/4">
<num value="4">(4)</num>
<content>a statement disclosing the amount of the periodic assessments currently assessed against or collected from the purchasers of the timeshare interest, immediately followed by a statement providing that collected assessments will be used by the managing entity to pay for expenditures, charges, reserves, or liabilities relating to the operation of the timeshare plan or timeshare properties managed by the managing entity;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scE/s221.043/5">
<num value="5">(5)</num>
<content>the date the purchaser signs the contract; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scE/s221.043/6">
<num value="6">(6)</num>
<content>the following statement:</content>
<continuation>"AS A TIMESHARE OWNER, YOU HAVE A RIGHT TO REQUEST A WRITTEN ANNUAL TIMESHARE FEE AND EXPENSE STATEMENT. THIS STATEMENT IS PREPARED ANNUALLY BY THE MANAGING ENTITY AND WILL BE AVAILABLE NOT LATER THAN FIVE MONTHS AFTER (INSERT THE DATE OF THE LAST DAY OF THE FISCAL YEAR). YOU MAY REQUEST THE STATEMENT BY WRITING TO (INSERT NAME AND ADDRESS OF THE MANAGING ENTITY)."</continuation>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scE/s221.043/d">
<num value="d">(d)</num>
<content>The information required to be provided by this section may be provided in the purchase contract or in an exhibit to the purchase contract, or it may be provided in part in both if all of the information is provided.</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987. Renumbered from Sec. 201.043 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989. Amended by Acts 1989, 71st Leg., ch. 381, Sec. 5, eff. June 14, 1989; Acts 1993, 73rd Leg., ch. 443, Sec. 5, eff. Sept. 1, 1993.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 8, eff. January 15, 2006.
Acts 2009, 81st Leg., R.S., Ch. 279 (S.B. 1036), Sec. 4, eff. September 1, 2009.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t12/c221/scF">
<num value="F">SUBCHAPTER F.</num>
<heading>EXCHANGE PROGRAM</heading>
<section identifier="/us/tx/pr/t12/c221/scF/s221.051">
<num value="221.051">Sec. 221.051.</num>
<heading>OPERATION REQUIREMENT</heading>
<content>An exchange company shall employ seasonal demand and unit occupancy restrictions in the operation of its exchange program.</content>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987. Renumbered from Sec. 201.051 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scF/s221.052">
<num value="221.052">Sec. 221.052.</num>
<heading>LIABILITY OF DEVELOPER AND EXCHANGE COMPANY</heading>
<subsection identifier="/us/tx/pr/t12/c221/scF/s221.052/a">
<num value="a">(a)</num>
<content>A developer does not incur any liability arising out of the use, delivery, or publication to a purchaser of written information or audio-visual materials provided to it by the exchange company in accordance with Subchapter D, unless the developer knows or has reason to know that the materials are inaccurate or false.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scF/s221.052/b">
<num value="b">(b)</num>
<content>No exchange company shall have any liability with respect to any violation under this chapter arising out of the use by a developer of information relating to an exchange program other than that provided to the developer by the exchange company.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scF/s221.052/c">
<num value="c">(c)</num>
<content>An exchange company that denies exchange privileges to an owner whose use of accommodations in the owner's timeshare plan is denied is not liable to any member of the exchange company or exchange program or any third party because of the denial of the owner's exchange privileges.</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987. Renumbered from Sec. 201.052 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 9, eff. January 15, 2006.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scF/s221.053">
<num value="221.053">Sec. 221.053.</num>
<heading>EXCHANGE COMPANY LIABILITY</heading>
<chapeau>Except for written information or audio-visual materials provided to a developer by an exchange company, an exchange company does not incur liability as a result of:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scF/s221.053/1">
<num value="1">(1)</num>
<content>a representation made by a developer that relates to any exchange program or exchange company; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scF/s221.053/2">
<num value="2">(2)</num>
<content>the use, delivery, or publication by a developer of information that relates to an exchange program or exchange company.</content>
</paragraph>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987. Renumbered from Sec. 201.053 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t12/c221/scG">
<num value="G">SUBCHAPTER G.</num>
<heading>ESCROW DEPOSITS</heading>
<section identifier="/us/tx/pr/t12/c221/scG/s221.061">
<num value="221.061">Sec. 221.061.</num>
<heading>ESCROW OR TRUST ACCOUNT REQUIRED</heading>
<subsection identifier="/us/tx/pr/t12/c221/scG/s221.061/a">
<num value="a">(a)</num>
<content>A developer or escrow agent of a timeshare plan shall deposit in an escrow or trust account in a federally insured depository 100 percent of all funds received during the purchaser's cancellation period.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scG/s221.061/b">
<num value="b">(b)</num>
<content>An escrow agent owes the purchaser a fiduciary duty.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scG/s221.061/c">
<num value="c">(c)</num>
<chapeau>The escrow agent and the developer shall execute an agreement that includes a statement providing that:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scG/s221.061/1">
<num value="1">(1)</num>
<chapeau>funds may be disbursed to the developer from the escrow or trust account by the agent only:</chapeau>
<subparagraph identifier="/us/tx/pr/t12/c221/scG/s221.061/A">
<num value="A">(A)</num>
<content>after the purchaser's cancellation period has expired; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scG/s221.061/B">
<num value="B">(B)</num>
<content>as provided by the purchase contract, subject to this subchapter; and</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scG/s221.061/2">
<num value="2">(2)</num>
<chapeau>if the purchaser cancels the purchase contract as provided by the contract, the funds must be paid to:</chapeau>
<subparagraph identifier="/us/tx/pr/t12/c221/scG/s221.061/A">
<num value="A">(A)</num>
<content>the purchaser; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scG/s221.061/B">
<num value="B">(B)</num>
<content>the developer if the purchaser's funds have been refunded previously by the developer.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scG/s221.061/d">
<num value="d">(d)</num>
<chapeau>If a developer contracts to sell a timeshare interest and the construction of the building in which the timeshare interest is located has not been completed when the cancellation period expires, the developer shall continue to maintain all funds received from the purchaser under the purchase agreement in the escrow or trust account until construction of the building is completed. The documentation required for evidence of completion of construction includes:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scG/s221.061/1">
<num value="1">(1)</num>
<content>a certificate of occupancy;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scG/s221.061/2">
<num value="2">(2)</num>
<content>a certificate of substantial completion;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scG/s221.061/3">
<num value="3">(3)</num>
<content>evidence of a public safety inspection equivalent to Subdivision (1) or (2) from a government agency in the applicable jurisdiction; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scG/s221.061/4">
<num value="4">(4)</num>
<content>any other evidence acceptable to the commission.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987. Renumbered from Sec. 201.061 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 10, eff. January 15, 2006.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scG/s221.062">
<num value="221.062">Sec. 221.062.</num>
<heading>RELEASE OF ESCROW</heading>
<subsection identifier="/us/tx/pr/t12/c221/scG/s221.062/a">
<num value="a">(a)</num>
<content>The funds or property constituting the escrow or trust deposit may be released from escrow only in accordance with this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scG/s221.062/b">
<num value="b">(b)</num>
<chapeau>If the purchaser cancels the purchase contract as provided by the contract, the funds shall be paid to:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scG/s221.062/1">
<num value="1">(1)</num>
<content>the purchaser; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scG/s221.062/2">
<num value="2">(2)</num>
<content>the developer if the purchaser's funds have been refunded previously by the developer.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scG/s221.062/c">
<num value="c">(c)</num>
<content>If the purchaser defaults in the performance of obligations under the terms of the purchase contract, the funds shall be paid to the developer.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scG/s221.062/d">
<num value="d">(d)</num>
<content>If the developer defaults in the performance of obligations under the purchase contract, the funds shall be paid to the purchaser.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scG/s221.062/e">
<num value="e">(e)</num>
<content>If the funds of the purchaser have not been disbursed previously as provided by Subsections (a)-(d), the funds may be disbursed to the developer by the escrow or trust agent if acceptable evidence of completion of construction is provided.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scG/s221.062/f">
<num value="f">(f)</num>
<chapeau>If there is a dispute relating to the funds in the escrow or trust account, the agent shall maintain the funds in the account until:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scG/s221.062/1">
<num value="1">(1)</num>
<content>the agent receives written directions agreed to and signed by all parties; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scG/s221.062/2">
<num value="2">(2)</num>
<content>a civil action relating to the disputed funds is filed.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scG/s221.062/g">
<num value="g">(g)</num>
<content>If a civil action is filed under Subsection (f)(2), the escrow or trust account agent shall deposit the funds with the court in which the action is filed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scG/s221.062/h">
<num value="h">(h)</num>
<chapeau>Excluding any encumbrance placed against the purchaser's timeshare interest that secures the purchaser's payment of purchase money financing for the purchase, the developer is not entitled to the release of any funds escrowed with respect to each timeshare interest until the developer has provided the commission with satisfactory evidence that:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scG/s221.062/1">
<num value="1">(1)</num>
<content>the timeshare interest and any other property or rights to property appurtenant to the timeshare interest, including any amenities represented to the purchaser as being part of the timeshare plan, are free and clear of any of the claims of the developer, any owner of the underlying fee, a mortgagee, judgment creditor, or other lienor, or any other person having an interest in or lien or encumbrance against the timeshare interest or appurtenant property or property rights;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scG/s221.062/2">
<num value="2">(2)</num>
<content>the developer, any owner of the underlying fee, a mortgagee, judgment creditor, or other lienor, or any other person having an interest in or lien or encumbrance against the timeshare interest or appurtenant property or property rights, including any amenities represented to the purchaser as being part of the timeshare plan, has recorded a subordination and notice to creditors document in the jurisdiction in which the timeshare interest is located that expressly and effectively provides that the interest holder's right, lien, or encumbrance does not adversely affect and is subordinate to the rights of the owners of the timeshare interests in the timeshare plan, regardless of the date of purchase, on and after the effective date of the subordination document;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scG/s221.062/3">
<num value="3">(3)</num>
<content>the developer, any owner of the underlying fee, a mortgagee, judgment creditor, or other lienor, or any other person having an interest in or lien or encumbrance against the timeshare interest or appurtenant property or property rights, including any amenities represented to the purchaser as being part of the timeshare plan, has transferred the subject accommodations or amenities or all use rights therein to a nonprofit organization or an owners' association to be held for the use and benefit of the purchasers of the timeshare plan, which entity shall act as a fiduciary to the purchasers, provided that the developer has transferred control of that entity to the purchasers or does not exercise its voting rights in that entity with respect to the subject accommodations or amenities and, prior to the transfer, any lien or other encumbrance against the accommodation or facility is subject to a subordination and notice to creditors instrument pursuant to this subsection; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scG/s221.062/4">
<num value="4">(4)</num>
<content>alternative arrangements have been made that are adequate to protect the rights of the purchasers of the timeshare interests and are approved by the commission.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987. Renumbered from Sec. 201.062 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 10, eff. January 15, 2006.
Acts 2009, 81st Leg., R.S., Ch. 279 (S.B. 1036), Sec. 5, eff. September 1, 2009.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scG/s221.063">
<num value="221.063">Sec. 221.063.</num>
<heading>ALTERNATIVE TO ESCROW OR TRUST ACCOUNT: FINANCIAL ASSURANCE</heading>
<subsection identifier="/us/tx/pr/t12/c221/scG/s221.063/a">
<num value="a">(a)</num>
<content>Instead of the deposit of funds in an escrow or trust account as provided by Section 221.061, the commission may accept from the developer a surety bond, irrevocable letter of credit, or other form of financial assurance, including financial assurance posted in another state or jurisdiction.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scG/s221.063/b">
<num value="b">(b)</num>
<content>The amount of the financial assurance provided under this section must be an amount equal to or more than the amount of funds that would otherwise be placed in an escrow or trust account under Section 221.061(a).</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scG/s221.063/c">
<num value="c">(c)</num>
<chapeau>The amount of the financial assurance provided under this section for timeshare property under construction as provided by Section 221.061(d) must be the lesser of:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scG/s221.063/1">
<num value="1">(1)</num>
<content>an amount equal to or more than the amount of funds that would otherwise be placed in an escrow or trust account under that subsection; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scG/s221.063/2">
<num value="2">(2)</num>
<content>the amount necessary to assure completion of the building in which the timeshare interest is located.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987. Renumbered from Sec. 201.063 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 10, eff. January 15, 2006.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scG/s221.064">
<num value="221.064">Sec. 221.064.</num>
<heading>DOCUMENTATION REQUIRED</heading>
<content>The escrow or trust account agent or developer shall make documents related to the escrow or trust account or the financial assurance provided available to the commission at the commission's request.</content>
<sourceCredit>Added by Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 10, eff. January 15, 2006.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t12/c221/scH">
<num value="H">SUBCHAPTER H.</num>
<heading>MISCELLANEOUS PROVISIONS</heading>
<section identifier="/us/tx/pr/t12/c221/scH/s221.071">
<num value="221.071">Sec. 221.071.</num>
<heading>DECEPTIVE TRADE PRACTICES</heading>
<subsection identifier="/us/tx/pr/t12/c221/scH/s221.071/a">
<num value="a">(a)</num>
<chapeau>A developer or other person commits a false, misleading, or deceptive act or practice within the meaning of Subsections (a) and (b) of Section 17.46 of the Texas Deceptive Trade Practices-Consumer Protection Act (Article 17.46 et seq., Business & Commerce Code), by engaging in any of the following acts:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scH/s221.071/1">
<num value="1">(1)</num>
<content>failing to disclose information concerning a timeshare interest required by Subchapter D;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scH/s221.071/2">
<num value="2">(2)</num>
<content>making false or misleading statements of fact concerning the characteristics of accommodations or amenities available to a consumer;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scH/s221.071/3">
<num value="3">(3)</num>
<content>predicting specific or immediate increases in the value of a timeshare interest without a reasonable basis for such predictions;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scH/s221.071/4">
<num value="4">(4)</num>
<content>making false or misleading statements of fact concerning the duration that accommodations or amenities will be available to a consumer;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scH/s221.071/5">
<num value="5">(5)</num>
<content>making false or misleading statements of fact concerning the conditions under which a purchaser of a timeshare interest may exchange the right to occupy a unit for the right to occupy a unit in the same or another timeshare property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scH/s221.071/6">
<num value="6">(6)</num>
<content>representing that a prize, gift, or other benefit will be awarded in connection with a promotion with the intent not to award that prize, gift, or benefit in the manner represented;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scH/s221.071/7">
<num value="7">(7)</num>
<content>failing to provide a copy of the purchase contract to the purchaser at the time the contract is signed by the purchaser;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scH/s221.071/8">
<num value="8">(8)</num>
<content>failing to provide the annual statement as required by Section 221.074(a); or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scH/s221.071/9">
<num value="9">(9)</num>
<content>exceeding a one-to-one purchaser-to-accommodation ratio for a timeshare plan during a consecutive 12-month period, as determined under Subsection (c).</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scH/s221.071/b">
<num value="b">(b)</num>
<content>The provisions of this section are not exclusive and are in addition to provisions provided for in any other law.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scH/s221.071/c">
<num value="c">(c)</num>
<chapeau>A developer complies with the one-to-one purchaser-to-accommodation ratio referred to in Subsection (a)(9) if the total number of purchasers eligible to use the accommodations of the timeshare plan during a consecutive 12-month period never exceeds the total number of accommodations available for use in the timeshare plan during that same period. A purchaser-to-accommodation ratio is computed by dividing the number of purchasers eligible to use an accommodation in a timeshare plan on any given day by the number of accommodations within the plan available for use on that day. For purposes of computing the purchaser-to-accommodation ratio:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scH/s221.071/1">
<num value="1">(1)</num>
<content>each purchaser is counted at least once each consecutive 12-month period;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scH/s221.071/2">
<num value="2">(2)</num>
<content>each accommodation is counted not more than 365 times each consecutive 12-month period, excluding a leap year, in which each accommodation may be counted 366 times; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scH/s221.071/3">
<num value="3">(3)</num>
<content>a purchaser who is delinquent in paying timeshare assessments is considered eligible to use timeshare plan accommodations.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scH/s221.071/d">
<num value="d">(d)</num>
<content>If a developer has substantially complied with this chapter in good faith, a nonmaterial error or omission is not actionable. Any nonmaterial error or omission is not sufficient to permit a purchaser to cancel a purchase contract after the period provided for cancellation expires under this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scH/s221.071/e">
<num value="e">(e)</num>
<content>A person, other than an owner of a timeshare interest who purchased the interest from a developer for the person's own personal use and occupancy, commits a false, misleading, or deceptive act or practice within the meaning of Sections 17.46(a) and (b), Business & Commerce Code, and an unconscionable action or course of action as defined by Section 17.45, Business & Commerce Code, by knowingly participating, for consideration or with the expectation of consideration, in any plan or scheme a purpose of which is to transfer a timeshare interest to a transferee who does not have the ability, means, or intent to pay all assessments and taxes for the timeshare interest. An association or other managing entity does not commit an act or action as described by this subsection by performing administrative acts and collecting fees or expenses as customary or required by law or under the project instruments in connection with a transfer by an owner of a timeshare interest in the timeshare property.</content>
</subsection>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987. Renumbered from Sec. 201.071 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989. Amended by Acts 1993, 73rd Leg., ch. 443, Sec. 6, eff. Sept. 1, 1993.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 11, eff. January 15, 2006.
Acts 2013, 83rd Leg., R.S., Ch. 1352 (S.B. 1372), Sec. 8, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scH/s221.072">
<num value="221.072">Sec. 221.072.</num>
<heading>INSURANCE</heading>
<chapeau>Before the disposition of any timeshare interest, the developer or managing entity shall maintain the following insurance with respect to the timeshare property:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scH/s221.072/1">
<num value="1">(1)</num>
<content>property insurance on the timeshare property and any personal property for use by purchasers, other than personal property separately owned by a purchaser, insuring against all risks of direct physical loss commonly insured against, in a total amount, after application of deductibles, of the full replacement cost of the accommodations and amenities of the timeshare property; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scH/s221.072/2">
<num value="2">(2)</num>
<content>liability insurance covering all occurrences commonly insured against for death, bodily injury, and property damage arising out of or in connection with the use, ownership, and maintenance of the timeshare property.</content>
</paragraph>
<sourceCredit>Added by Acts 1987, 70th Leg., ch. 167, Sec. 6.03, eff. Sept. 1, 1987. Renumbered from Sec. 201.072 by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(b), eff. Aug. 28, 1989.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 12, eff. January 15, 2006.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scH/s221.073">
<num value="221.073">Sec. 221.073.</num>
<heading>PENALTY</heading>
<subsection identifier="/us/tx/pr/t12/c221/scH/s221.073/a">
<num value="a">(a)</num>
<content>A developer subject to this chapter commits an offense if the developer offers or disposes of a timeshare interest in a timeshare property which has not been registered with the commission.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scH/s221.073/b">
<num value="b">(b)</num>
<content>It is not a violation of this section for a developer subject to this chapter to accept reservations and deposits from prospective purchasers in accordance with Section 221.021(b) or (d).</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scH/s221.073/c">
<num value="c">(c)</num>
<content>An offense under this section is a Class A misdemeanor. A person may not be prosecuted for more than one offense involving the same promotion, even if mailed or distributed to more than one person.</content>
</subsection>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 381, Sec. 6, eff. June 14, 1989. Amended by Acts 1999, 76th Leg., ch. 1382, Sec. 9, eff. June 19, 1999.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 13, eff. January 15, 2006.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scH/s221.074">
<num value="221.074">Sec. 221.074.</num>
<heading>ANNUAL TIMESHARE FEE AND EXPENSE STATEMENT</heading>
<subsection identifier="/us/tx/pr/t12/c221/scH/s221.074/a">
<num value="a">(a)</num>
<chapeau>Notwithstanding any contrary provision of the required timeshare disclosure statement, project instrument, timeshare instrument, or bylaws adopted pursuant to a timeshare instrument, the managing entity shall make a written annual accounting of the operation of the timeshare properties managed by the managing entity to each purchaser who requests an accounting not later than five months after the last day of each fiscal year. The statement shall fairly and accurately represent the collection and expenditure of assessments and include:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scH/s221.074/1">
<num value="1">(1)</num>
<content>a balance sheet;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scH/s221.074/2">
<num value="2">(2)</num>
<content>an income and expense statement;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scH/s221.074/3">
<num value="3">(3)</num>
<content>the current budget for the timeshare property, timeshare properties managed by the same managing entity, or multisite timeshare plan required by Section 221.032(b)(12); and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scH/s221.074/4">
<num value="4">(4)</num>
<content>the name, address, and telephone number of a designated representative of the managing entity.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scH/s221.074/b">
<num value="b">(b)</num>
<content>On the request of an owner, the managing entity of the timeshare plan shall provide the owner with the name and address of each member of the board of directors of the owners' association, if one exists.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scH/s221.074/c">
<num value="c">(c)</num>
<chapeau>A developer or managing entity shall have an annual independent audit of the financial statements of the timeshare plan or timeshare properties managed by the managing entity performed by a certified public accountant or an accounting firm. The audit must be:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scH/s221.074/1">
<num value="1">(1)</num>
<content>conducted in accordance with generally accepted auditing standards as prescribed by the American Institute of Certified Public Accountants, the Governmental Accounting Standards Board, the United States General Accounting Office, or other professionally recognized entities that prescribe auditing standards; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scH/s221.074/2">
<num value="2">(2)</num>
<content>completed not later than five months after the last day of the fiscal year of the timeshare plan or timeshare property.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scH/s221.074/d">
<num value="d">(d)</num>
<content>Knowingly furnishing false information in the annual timeshare fee and expense statement is a violation of the Deceptive Trade Practices-Consumer Protection Act (Section 17.41 et seq., Business & Commerce Code).</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scH/s221.074/e">
<num value="e">(e)</num>
<content>The managing entity of any accommodation located in this state shall post prominently in the registration area of the accommodations the following notice, with the date of the last day of the current fiscal year and the address of the managing entity inserted where indicated:</content>
<continuation>"AS A TIMESHARE OWNER YOU HAVE A RIGHT TO REQUEST A WRITTEN ANNUAL TIMESHARE FEE AND EXPENSE STATEMENT. THIS STATEMENT IS PREPARED ANNUALLY BY THE MANAGING ENTITY AND WILL BE AVAILABLE NO LATER THAN FIVE MONTHS FOLLOWING (INSERT THE DATE OF THE LAST DAY OF THE CURRENT FISCAL YEAR). YOU MAY REQUEST THE STATEMENT, BY WRITING TO (INSERT ADDRESS OF THE MANAGING ENTITY)."</continuation>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 443, Sec. 7, eff. Jan. 1, 1995.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 14, eff. January 15, 2006.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scH/s221.075">
<num value="221.075">Sec. 221.075.</num>
<heading>CIVIL PENALTY FOR LATE STATEMENT; INJUNCTION</heading>
<subsection identifier="/us/tx/pr/t12/c221/scH/s221.075/a">
<num value="a">(a)</num>
<content>On receipt of a written request filed with the commission by a managing entity before the date on which the statement required by Section 221.074 must be made available, the commission for good cause shown may grant the managing entity an extension of no more than 30 days in which to provide the statement.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scH/s221.075/b">
<num value="b">(b)</num>
<chapeau>If the statement required by Section 221.074 is late and an extension has not been granted under Subsection (a), the managing entity required to provide the statement is liable to the state for a civil penalty not to exceed:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scH/s221.075/1">
<num value="1">(1)</num>
<content>$500 per day for each of the first 10 days that the statement is late; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scH/s221.075/2">
<num value="2">(2)</num>
<content>$1,500 per day for each day after the 10th day, until the managing entity has complied with Section 221.074.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scH/s221.075/c">
<num value="c">(c)</num>
<content>In no event shall the civil penalties exceed $30,000 for any one statement period.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scH/s221.075/d">
<num value="d">(d)</num>
<content>A managing entity may not assess against or collect from the purchasers of a timeshare property the amount of a penalty incurred under this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scH/s221.075/e">
<num value="e">(e)</num>
<content>If it appears that a managing entity has violated Section 221.074, the attorney general may institute an action for injunctive relief, a civil penalty, or both.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 443, Sec. 7, eff. Jan. 1, 1995. Amended by Acts 1999, 76th Leg., ch. 1382, Sec. 10, eff. June 19, 1999.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 15, eff. January 15, 2006.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scH/s221.076">
<num value="221.076">Sec. 221.076.</num>
<heading>MANAGING ENTITIES THAT MANAGE MORE THAN ONE TIMESHARE PROPERTY</heading>
<subsection identifier="/us/tx/pr/t12/c221/scH/s221.076/a">
<num value="a">(a)</num>
<content>A managing entity that manages two or more single-site timeshare plans may commingle the assessments collected from purchasers of one timeshare plan with the assessments collected from purchasers of any other single-site plan for which it is the managing entity only if the practice is disclosed in the timeshare disclosure statement for each timeshare property and the appropriate statement is included in the declaration for each timeshare property as required by Subchapter B.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scH/s221.076/b">
<num value="b">(b)</num>
<content>A managing entity which manages a multisite timeshare plan may deposit assessments collected from purchasers of one timeshare property into a common account with assessments collected from purchasers of other timeshare properties participating in the same multisite timeshare plan only if the practice is disclosed in the timeshare disclosure statement for each timeshare property in the multisite timeshare plan and the appropriate statement is included in the declaration for each timeshare plan as required by Subchapter B.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scH/s221.076/c">
<num value="c">(c)</num>
<content>Nothing in this section shall be construed to allow a managing entity to commingle assessments of a multisite timeshare plan with the assessments of a separate multisite timeshare plan or a timeshare plan that is not a part of the multisite timeshare plan.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 443, Sec. 8, eff. Sept. 1, 1993.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 16, eff. January 15, 2006.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scH/s221.077">
<num value="221.077">Sec. 221.077.</num>
<heading>AVAILABILITY OF BOOKS AND RECORDS; RECORDS RETENTION</heading>
<subsection identifier="/us/tx/pr/t12/c221/scH/s221.077/a">
<num value="a">(a)</num>
<content>A developer or managing entity, on written request of an owner, shall make available for examination at its registered office or principal place of business and at any reasonable time or times the relevant books and records relating to the collection and expenditure of assessments.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scH/s221.077/b">
<num value="b">(b)</num>
<content>A developer or managing entity shall maintain in its records a copy of each purchase contract for an accommodation sold by the developer for a timeshare period unless the contract has been canceled. If a sale of the timeshare estate is pending, the developer shall retain a copy of the contract until a deed of conveyance, agreement for deed, or lease is recorded in the real property records of the county in which the timeshare property is located.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 443, Sec. 8, eff. Sept. 1, 1993.
Amended by:
Acts 2005, 79th Leg., Ch. 539 (H.B. 1045), Sec. 16, eff. January 15, 2006.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t12/c221/scI">
<num value="I">SUBCHAPTER I.</num>
<heading>TIMESHARE OWNERS' ASSOCIATIONS</heading>
<section identifier="/us/tx/pr/t12/c221/scI/s221.081">
<num value="221.081">Sec. 221.081.</num>
<heading>APPLICABILITY</heading>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.081/a">
<num value="a">(a)</num>
<content>Except as provided by this section, this subchapter applies to a timeshare plan, the project instrument governing the timeshare property subject to the timeshare plan, and the association related to the timeshare plan, regardless of the date on which the timeshare plan was created.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.081/b">
<num value="b">(b)</num>
<content>Except as provided by Section 221.083(f), this subchapter applies to a timeshare plan, the project instrument governing the timeshare property subject to the timeshare plan, and the association related to the timeshare plan, created before September 1, 2013, unless the project instrument is amended before September 1, 2013, to provide that this subchapter does not apply.</content>
</subsection>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 1352 (S.B. 1372), Sec. 2, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scI/s221.082">
<num value="221.082">Sec. 221.082.</num>
<heading>POWERS AND LIMITATIONS OF BOARD</heading>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.082/a">
<num value="a">(a)</num>
<content>An association may be governed by a board of directors. Except as provided in the project instrument, or this chapter, the board may act in all instances on behalf of the association.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.082/b">
<num value="b">(b)</num>
<chapeau>Except as expressly authorized in the project instrument or otherwise permitted by the association, the board may not act on behalf of the association to:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scI/s221.082/1">
<num value="1">(1)</num>
<content>amend the project instrument;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scI/s221.082/2">
<num value="2">(2)</num>
<content>terminate the timeshare plan;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scI/s221.082/3">
<num value="3">(3)</num>
<content>elect or remove board members; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scI/s221.082/4">
<num value="4">(4)</num>
<content>determine the qualifications, powers, duties, or terms of office of board members.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.082/c">
<num value="c">(c)</num>
<content>Subject to the project instrument, the board may appoint a member to fill a vacancy on the board and the member appointed serves for the unexpired portion of the term of the predecessor board member.</content>
</subsection>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 1352 (S.B. 1372), Sec. 2, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scI/s221.083">
<num value="221.083">Sec. 221.083.</num>
<heading>PERIOD OF DEVELOPER CONTROL</heading>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.083/a">
<num value="a">(a)</num>
<content>Except as otherwise provided in this section, the project instrument may provide for a period of developer control of an association during which the developer, or a person designated by the developer, may appoint and remove board members and officers of the association.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.083/b">
<num value="b">(b)</num>
<chapeau>Regardless of the period of developer control provided in the project instrument, that period expires not later than the earlier of:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scI/s221.083/1">
<num value="1">(1)</num>
<content>the 120th day after the date that at least 95 percent of the timeshare interests that were created by the timeshare instrument are conveyed to owners other than the developer; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scI/s221.083/2">
<num value="2">(2)</num>
<content>the fifth anniversary of the date the developer ceased to offer timeshare interests for sale in the ordinary course of business under the timeshare plan or under another timeshare plan in which the timeshare interests are included, whichever date is later.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.083/c">
<num value="c">(c)</num>
<content>A developer may voluntarily surrender the developer's right to appoint and remove board members and officers of the association during the period of developer control by executing a written instrument stating that the developer's rights are surrendered and providing a copy of the instrument to the owners. The developer may provide in the surrender instrument that, during the remaining period otherwise designated for developer control, specified actions of the association or board as described in the project instrument are effective only on approval of the developer. The surrender instrument must be recorded in the real property records of the county in which the timeshare property is located.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.083/d">
<num value="d">(d)</num>
<content>If the project instrument provides for a developer control period of shorter duration than any period prescribed by this section, the project instrument controls.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.083/e">
<num value="e">(e)</num>
<content>During the period of developer control and subject to the project instrument, the developer may determine all matters governing the association, including the occurrence of special or regular meetings of the members and the notice requirements and rules for those meetings.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.083/f">
<num value="f">(f)</num>
<content>This section applies to a timeshare plan created before September 1, 2013, and to the project instrument governing the timeshare property subject to the timeshare plan only if the developer and the association agree to the application in writing and the project instrument is amended to provide for that application. If the conditions provided by this subsection are not satisfied, a timeshare plan created before September 1, 2013, and the timeshare property subject to the timeshare plan are governed by any developer control provisions provided in the project instrument, notwithstanding any other law.</content>
</subsection>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 1352 (S.B. 1372), Sec. 2, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scI/s221.084">
<num value="221.084">Sec. 221.084.</num>
<heading>ELECTION OF INITIAL BOARD MEMBERS AND OFFICERS</heading>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.084/a">
<num value="a">(a)</num>
<content>Not later than the termination, by expiration or surrender, of any period of developer control, the owners, including the developer to the extent of any developer-owned timeshare interests, must elect a board of at least three members. The board may include one or more representatives of the developer.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.084/b">
<num value="b">(b)</num>
<content>The board shall elect the officers of the association.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.084/c">
<num value="c">(c)</num>
<content>The board members and officers of the association take office on election.</content>
</subsection>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 1352 (S.B. 1372), Sec. 2, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scI/s221.085">
<num value="221.085">Sec. 221.085.</num>
<heading>REMOVAL OF BOARD MEMBERS</heading>
<content>Notwithstanding any provision of a project instrument to the contrary, the owners, by a vote of at least two-thirds of the voting rights of persons entitled to vote and voting in person or by proxy at any meeting of the owners, may remove a member of the board, with or without cause, other than a member appointed by the developer during the period of developer control under Section 221.083, provided that the developer remains in control of the association.</content>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 1352 (S.B. 1372), Sec. 2, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scI/s221.086">
<num value="221.086">Sec. 221.086.</num>
<heading>QUORUM</heading>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.086/a">
<num value="a">(a)</num>
<content>Unless the project instrument provides for a larger quorum requirement, the percentage of voting interests constituting a quorum at a meeting of the members of an association is 10 percent of the voting interests of owners who are not delinquent in assessments, voting in person or by proxy.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.086/b">
<num value="b">(b)</num>
<content>If a quorum is not present at any meeting of the association at which board members will be elected, the meeting may be adjourned and reconvened not later than the 90th day after the date of adjournment for the sole purpose of electing board members. Unless the project instrument provides for a larger quorum requirement, the quorum for the reconvened meeting is 10 percent of the voting interests of owners who are not delinquent in assessments, voting in person or by proxy.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.086/c">
<num value="c">(c)</num>
<content>Unless the project instrument provides otherwise, a quorum of the board is considered present throughout a board meeting if the members entitled to cast a majority of the votes are present at the beginning of the meeting.</content>
</subsection>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 1352 (S.B. 1372), Sec. 2, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scI/s221.087">
<num value="221.087">Sec. 221.087.</num>
<heading>VOTES</heading>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.087/a">
<num value="a">(a)</num>
<content>If only one of the multiple owners of a timeshare interest is present at a meeting of the association, that owner may cast all votes allocated to that timeshare interest. If more than one of the multiple owners are present, the votes allocated to that timeshare interest may be cast only in accordance with the agreement of a majority of the timeshare interest held by the multiple owners unless the timeshare instrument expressly provides otherwise. For purposes of this subsection, there is a majority agreement if any one of the multiple owners casts the votes allocated to that timeshare interest and no protest is made promptly to the person presiding over the meeting by any of the other owners of the timeshare interest.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.087/b">
<num value="b">(b)</num>
<content>Votes allocated to a timeshare interest may be cast under a proxy duly executed by an owner. A proxy must expressly state the dates of execution and termination. An owner may only revoke a proxy given under this section by actual notice of revocation to the person presiding over a meeting of the association. A proxy is revoked on presentation of a later dated proxy or other written revocation executed by the same owner. A proxy terminates the 25th month after the date the proxy is executed, unless the proxy specifies a shorter period or states that the proxy is coupled with an interest and is irrevocable.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.087/c">
<num value="c">(c)</num>
<chapeau>The project instrument for a timeshare plan may authorize votes of members of an association to be cast by mail only if:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scI/s221.087/1">
<num value="1">(1)</num>
<content>mail ballots are mailed or sent to each member in the manner prescribed for a notice of a special meeting under Section 221.089;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scI/s221.087/2">
<num value="2">(2)</num>
<content>the period for return of mail ballots is not later than the 30th day after the date the ballots are mailed or sent to members; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scI/s221.087/3">
<num value="3">(3)</num>
<content>the required minimum number of ballots that must be returned by members for the vote to be effective represents at least the percentage of voting interests required for a quorum as prescribed by Section 221.086(a).</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.087/d">
<num value="d">(d)</num>
<content>Only timeshare interests included in the timeshare plan have voting rights.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.087/e">
<num value="e">(e)</num>
<content>Unless the project instrument provides otherwise, owners who are delinquent in assessments do not have the right to cast a vote. The right to cast a vote is also subject to any additional limitations provided in the project instrument.</content>
</subsection>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 1352 (S.B. 1372), Sec. 2, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scI/s221.088">
<num value="221.088">Sec. 221.088.</num>
<heading>OPEN MEETINGS; EXCEPTIONS</heading>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.088/a">
<num value="a">(a)</num>
<chapeau>Notwithstanding any provision in the project instrument to the contrary and except as provided in this section, after the period of developer control under Section 221.083, all meetings of the association and board are open to all members of the association and all members must be permitted to attend and listen to the deliberations and proceedings. Meetings must be conducted as provided in the project instrument. The board may adjourn a board meeting and reconvene in a closed executive session to consider:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scI/s221.088/1">
<num value="1">(1)</num>
<content>legal advice from an attorney for the board or the association;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scI/s221.088/2">
<num value="2">(2)</num>
<content>pending or contemplated litigation;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scI/s221.088/3">
<num value="3">(3)</num>
<content>financial information about an individual member of the association, an individual employee of the association, an individual employee of the managing entity, or an individual employee of a contractor for the association or managing entity; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scI/s221.088/4">
<num value="4">(4)</num>
<content>matters relating to the job performance of, compensation of, health records of, or specific complaints against an individual employee of the association, an individual employee of the managing entity, or an individual employee of a contractor of the association or managing entity who works under the direction of the association or the managing entity.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.088/b">
<num value="b">(b)</num>
<content>If a board meeting is closed as provided by Subsection (a)(1) or (2), the board, on final resolution of any matter for which the board received legal advice or that concerned pending or contemplated litigation, may disclose information about that matter in an open meeting, except to the extent that those matters are required to remain confidential by the terms of a settlement agreement or judgment.</content>
</subsection>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 1352 (S.B. 1372), Sec. 2, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scI/s221.089">
<num value="221.089">Sec. 221.089.</num>
<heading>NOTICE</heading>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.089/a">
<num value="a">(a)</num>
<content>A meeting of the members of the association must be held annually after the termination of the period of developer control under Section 221.083. Special meetings of the members of the association may be called by the president, by a majority of the board, or by owners having at least 25 percent of the votes allocated to timeshare interests in the association or any lower percentage specified in the project instrument.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.089/b">
<num value="b">(b)</num>
<chapeau>Unless the project instrument provides otherwise, the association or managing entity must send notice of the meeting to the mailing address of each owner on record with the association:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scI/s221.089/1">
<num value="1">(1)</num>
<content>not later than the 30th day or earlier than the 90th day before the date of an annual meeting; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scI/s221.089/2">
<num value="2">(2)</num>
<content>not later than the 10th day or earlier than the 60th day before the date of a special meeting.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.089/c">
<num value="c">(c)</num>
<content>The notice of a meeting of the owners must state the date, time, and place of the meeting. The notice of a special meeting of the owners must also state the purpose of the meeting. A notice of a meeting may be included in a list of upcoming meetings sent to owners, and the list is not required to be specific to one meeting. The failure of an owner to receive actual notice of a meeting of the owners does not affect the validity of any action taken at that meeting.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.089/d">
<num value="d">(d)</num>
<content>Unless the project instrument provides otherwise, the association or managing entity must send notice of a board meeting held after the date the developer control period terminates to the mailing address of each owner on record with the association not later than the 10th day before the date of the meeting. Notice to owners of a board meeting is not required if emergency circumstances require action by the board before notice can be given. A notice of a board meeting must state the date, time, and place of the meeting. A notice of a meeting may be included in a list of upcoming meetings sent to owners, and the list is not required to be specific to one meeting. The failure of an owner to receive actual notice of a board meeting does not affect the validity of any action taken at that meeting.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.089/e">
<num value="e">(e)</num>
<content>A notice may be provided in a newsletter or a similar mailing. Notice may be provided by prepaid United States mail, e-mail for those owners who have provided an e-mail address, or any other reasonable method selected by the board.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.089/f">
<num value="f">(f)</num>
<content>Notwithstanding Subsections (a)-(d) or any other law related to notice by an association, a notice to an owner may be provided by conspicuous disclosure on the association's website if the owner has consented to that alternative notice. Consent to that alternative notice must be in writing and may be revoked by the owner at any time.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.089/g">
<num value="g">(g)</num>
<content>An affidavit of notice by an officer of the association or the managing entity is prima facie evidence that notice was provided under this section.</content>
</subsection>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 1352 (S.B. 1372), Sec. 2, eff. September 1, 2013.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scI/s221.090">
<num value="221.090">Sec. 221.090.</num>
<heading>DUTIES; LIST OF OWNERS</heading>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.090/a">
<num value="a">(a)</num>
<content>The association or managing entity of the association must maintain among its records a complete and current list of the names and addresses of all owners of timeshare interests in the timeshare plan. The association or managing entity must update this list not less than quarterly.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.090/b">
<num value="b">(b)</num>
<chapeau>The association or managing entity may not publish the owners list or provide a copy of the list to any owner or to any third party, except:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scI/s221.090/1">
<num value="1">(1)</num>
<content>as reasonably required to conduct legitimate association business; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scI/s221.090/2">
<num value="2">(2)</num>
<content>as authorized or required by law.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.090/c">
<num value="c">(c)</num>
<content>On the termination of the period of developer control under Section 221.083 and on the written request of an owner, the association or managing entity shall send by first class mail to owners on the list described by Subsection (a) any materials provided by any owner if the purpose of the mailing is for legitimate association business, including a proxy solicitation for the recall of a board member elected by the owners or the discharge of the managing entity. The use of the solicited proxies must comply with the project instrument and this chapter. Materials required to be provided under this subsection must be mailed not later than the 30th day after the date the request is received from an owner.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.090/d">
<num value="d">(d)</num>
<content>The board or the managing entity is responsible for determining the appropriateness of a mailing requested under Subsection (c) and establishing reasonable procedures for exercising rights under this section. The association or managing entity does not have an obligation to mail an item that the board or managing entity reasonably believes based on advice of legal counsel may be libelous or otherwise actionable. An owner who requests the mailing of materials under Subsection (c) must reimburse the association or managing entity in advance for the actual costs of performing the mailing or a proportionate share of actual costs if the mailing is included in a mailing with other items.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.090/e">
<num value="e">(e)</num>
<chapeau>After the termination of the period of developer control under Section 221.083, it is a violation of this subchapter to refuse to mail material provided by a requesting owner who has complied with the reasonable procedures established by the board or managing entity, if:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scI/s221.090/1">
<num value="1">(1)</num>
<content>the sole purpose of the materials is to advance legitimate association business; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scI/s221.090/2">
<num value="2">(2)</num>
<chapeau>the requesting owner has:</chapeau>
<subparagraph identifier="/us/tx/pr/t12/c221/scI/s221.090/A">
<num value="A">(A)</num>
<content>tendered to the association or managing entity payment of the cost under Subsection (d); or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scI/s221.090/B">
<num value="B">(B)</num>
<content>requested an invoice for that cost and has not received the invoice before the 10th day after the date the request was delivered to the association or managing entity.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scI/s221.090/f">
<num value="f">(f)</num>
<content>Except as otherwise authorized or required by law, the association or other managing entity may not furnish the name, address, telephone number, or e-mail address of any owner to any other owner or authorized agent of an owner unless the owner whose name, address, phone number, or e-mail address is requested first approves the disclosure in writing.</content>
</subsection>
<sourceCredit>Added by Acts 2013, 83rd Leg., R.S., Ch. 1352 (S.B. 1372), Sec. 2, eff. September 1, 2013.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t12/c221/scJ">
<num value="J">SUBCHAPTER J.</num>
<heading>SERVICE AGREEMENTS TO TRANSFER OR TERMINATE A TIMESHARE INTEREST</heading>
<section identifier="/us/tx/pr/t12/c221/scJ/s221.101">
<num value="221.101">Sec. 221.101.</num>
<heading>TRANSFER OR TERMINATION OF TIMESHARE INTEREST</heading>
<chapeau>In this subchapter:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scJ/s221.101/1">
<num value="1">(1)</num>
<chapeau>"Termination" with respect to a timeshare interest:</chapeau>
<subparagraph identifier="/us/tx/pr/t12/c221/scJ/s221.101/A">
<num value="A">(A)</num>
<content>means:</content>
</subparagraph>
</paragraph>
<subsection identifier="/us/tx/pr/t12/c221/scJ/s221.101/i">
<num value="i">(i)</num>
<chapeau>the release of contractual obligations relating to a timeshare interest by the developer, association, or managing entity; or</chapeau>
<clause identifier="/us/tx/pr/t12/c221/scJ/s221.101/ii">
<num value="ii">(ii)</num>
<content>the invalidation, cancellation, nullification, or cessation of contractual obligations related to a timeshare interest by a judgment or court order; and</content>
</clause>
<subparagraph identifier="/us/tx/pr/t12/c221/scJ/s221.101/B">
<num value="B">(B)</num>
<content>does not include the cancellation of a purchase contract governed by Subchapter E.</content>
</subparagraph>
<paragraph identifier="/us/tx/pr/t12/c221/scJ/s221.101/2">
<num value="2">(2)</num>
<content>"Transfer" with respect to a timeshare interest means the conveyance of all or substantially all of a timeshare interest.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 554 (H.B. 2261), Sec. 2, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scJ/s221.102">
<num value="221.102">Sec. 221.102.</num>
<heading>APPLICABILITY</heading>
<subsection identifier="/us/tx/pr/t12/c221/scJ/s221.102/a">
<num value="a">(a)</num>
<chapeau>This subchapter applies to a timeshare interest if the timeshare interest has been acquired only for the purchaser's personal, family, or household use and:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scJ/s221.102/1">
<num value="1">(1)</num>
<content>the timeshare interest is owned by a resident of this state;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scJ/s221.102/2">
<num value="2">(2)</num>
<content>the timeshare property is located in this state; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scJ/s221.102/3">
<num value="3">(3)</num>
<content>the timeshare interest acquired is in a multisite timeshare plan required to be registered under Subchapter C.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scJ/s221.102/b">
<num value="b">(b)</num>
<chapeau>Except as provided by Subsection (c), this subchapter applies to a person who:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scJ/s221.102/1">
<num value="1">(1)</num>
<content>is acting in the ordinary course of business; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scJ/s221.102/2">
<num value="2">(2)</num>
<chapeau>directly or indirectly, regardless of whether acting in person, by mail, by telephone, or by any mode of Internet or electronic communication, offers or advertises an offer to engage in, for consideration, the following activities:</chapeau>
<subparagraph identifier="/us/tx/pr/t12/c221/scJ/s221.102/A">
<num value="A">(A)</num>
<content>obtaining or attempting to obtain on behalf of a timeshare interest owner a termination of contractual obligations relating to a timeshare interest;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scJ/s221.102/B">
<num value="B">(B)</num>
<content>selling, renting, listing, or advertising a timeshare interest on behalf of a timeshare interest owner;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scJ/s221.102/C">
<num value="C">(C)</num>
<content>purchasing a timeshare interest from a timeshare interest owner; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scJ/s221.102/D">
<num value="D">(D)</num>
<content>assisting in the transfer of an owner's timeshare interest.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scJ/s221.102/c">
<num value="c">(c)</num>
<chapeau>This subchapter does not apply to:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scJ/s221.102/1">
<num value="1">(1)</num>
<content>a license holder under Chapter 1101, Occupations Code, acting as a broker, agent, or salesperson under that person's license in connection with the transfer or termination of a timeshare interest;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scJ/s221.102/2">
<num value="2">(2)</num>
<content>a developer, association, or managing entity for a timeshare interest to be transferred or terminated or a third party acting at the specific request of the developer, association, or managing entity; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scJ/s221.102/3">
<num value="3">(3)</num>
<chapeau>an attorney, title agent, title company, or escrow company that:</chapeau>
<subparagraph identifier="/us/tx/pr/t12/c221/scJ/s221.102/A">
<num value="A">(A)</num>
<content>provides only closing, settlement, or other comparable transaction services in connection with the transfer or termination of a timeshare interest; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scJ/s221.102/B">
<num value="B">(B)</num>
<content>does not otherwise engage in activities described by Subsection (b).</content>
</subparagraph>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 554 (H.B. 2261), Sec. 2, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scJ/s221.103">
<num value="221.103">Sec. 221.103.</num>
<heading>GENERAL DISCLOSURES REQUIRED</heading>
<chapeau>A person subject to this subchapter who enters into an agreement with a timeshare interest owner to facilitate the transfer or termination of a timeshare interest shall provide to the timeshare interest owner, before the third day before the date the timeshare interest owner enters into the agreement the following written disclosures, as applicable:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scJ/s221.103/1">
<num value="1">(1)</num>
<content>the name, telephone number, and physical address of the person providing services under the agreement and any affiliate, agent, or third-party representative of that person;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scJ/s221.103/2">
<num value="2">(2)</num>
<content>if the person identified in Subdivision (1), or an affiliate, agent, or third-party representative of that person providing services under the agreement, is an attorney licensed to practice law in this state, a disclosure of whether the attorney will be providing services under the agreement and representing the timeshare interest owner in connection with the transfer or termination of the timeshare interest;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scJ/s221.103/3">
<num value="3">(3)</num>
<content>a description, legally sufficient for identification, of the timeshare interest to be transferred or terminated;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scJ/s221.103/4">
<num value="4">(4)</num>
<content>a description of the method of transfer or termination or a copy of the instrument that will be used for transferring or terminating the timeshare interest;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scJ/s221.103/5">
<num value="5">(5)</num>
<content>a description of any interest the timeshare interest owner retains after the transfer;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scJ/s221.103/6">
<num value="6">(6)</num>
<content>a description of the scope of a power of attorney or other delegation of authority, if any, that the timeshare interest owner is required to give to complete the transfer of the timeshare interest;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scJ/s221.103/7">
<num value="7">(7)</num>
<content>an itemized statement of any amounts the timeshare owner is required to pay as consideration or reimbursement for services provided in connection with the agreement;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scJ/s221.103/8">
<num value="8">(8)</num>
<content>the name of each recipient of amounts described by Subdivision (7);</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scJ/s221.103/9">
<num value="9">(9)</num>
<content>the estimated date for completing all services sufficient to transfer or terminate the timeshare interest; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scJ/s221.103/10">
<num value="10">(10)</num>
<chapeau>a statement that, on completion of the transfer or termination of the timeshare interest, the person will give written notice of the transfer or termination to:</chapeau>
<subparagraph identifier="/us/tx/pr/t12/c221/scJ/s221.103/A">
<num value="A">(A)</num>
<content>the developer, association, or managing entity, as applicable; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scJ/s221.103/B">
<num value="B">(B)</num>
<content>if applicable, the exchange company for the timeshare interest.</content>
</subparagraph>
</paragraph>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 554 (H.B. 2261), Sec. 2, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scJ/s221.104">
<num value="221.104">Sec. 221.104.</num>
<heading>DISCLOSURE OF AUTHORIZED USE OF TIMESHARE INTEREST</heading>
<subsection identifier="/us/tx/pr/t12/c221/scJ/s221.104/a">
<num value="a">(a)</num>
<content>A person subject to this subchapter who enters into an agreement with a timeshare interest owner to facilitate the transfer or termination of a timeshare interest shall disclose in writing to the timeshare interest owner the name of any person, other than the timeshare interest owner, who may occupy, rent, exchange, or otherwise use the timeshare interest during the term of the agreement.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scJ/s221.104/b">
<num value="b">(b)</num>
<content>If a person is authorized to occupy, rent, exchange, or otherwise use the timeshare interest during the term of the agreement, the agreement must state the name of each person receiving consideration for the occupation, rent, exchange, or use of the timeshare interest.</content>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 554 (H.B. 2261), Sec. 2, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scJ/s221.105">
<num value="221.105">Sec. 221.105.</num>
<heading>DISCLOSURES RELATING TO PAYMENT OF FEES FOR TRANSFER SERVICES</heading>
<chapeau>A person subject to this subchapter who enters into an agreement with a timeshare interest owner to facilitate the transfer of the timeshare interest must conspicuously disclose in writing to the timeshare interest owner that the timeshare interest owner is not required to pay any consideration or reimbursement under the agreement until the timeshare interest owner receives:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scJ/s221.105/1">
<num value="1">(1)</num>
<content>a written acknowledgement from the developer, the association, or the managing entity that the person facilitating the transfer under the agreement complied with all applicable policies of the developer, association, or managing entity, if any, governing the transfer of the timeshare interest; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scJ/s221.105/2">
<num value="2">(2)</num>
<content>a copy of the instrument transferring the timeshare interest, recorded, if required by applicable law, in the real property records of the county in which the timeshare property is located.</content>
</paragraph>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 554 (H.B. 2261), Sec. 2, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scJ/s221.106">
<num value="221.106">Sec. 221.106.</num>
<heading>REQUIRED NOTICE FOR TRANSFER SERVICES</heading>
<chapeau>A person subject to this subchapter who enters into an agreement with a timeshare interest owner to facilitate the transfer of the timeshare interest must provide to the timeshare interest owner a statement printed in 14-point boldface type or 14-point uppercase typewritten letters that reads substantially similar to the following:</chapeau>
<continuation>I (name of the person facilitating the transfer) WILL ACT IN GOOD FAITH AND IN A COMMERCIALLY REASONABLE MANNER TO COMPLETE THE TRANSFER OF OWNERSHIP OF YOUR TIMESHARE INTEREST NOT LATER THAN THE 180TH DAY AFTER THE DATE OF THIS AGREEMENT.</continuation>
<continuation>YOUR OBLIGATION TO PAY ALL COSTS AND FEES ASSOCIATED WITH YOUR TIMESHARE INTEREST, INCLUDING ANY REGULAR OR SPECIAL ASSESSMENTS OR REAL OR PERSONAL PROPERTY TAXES, DOES NOT CEASE BY VIRTUE OF THE EXECUTION OF THIS AGREEMENT.</continuation>
<continuation>IF THE TRANSFER OF YOUR TIMESHARE INTEREST IS NOT COMPLETED BEFORE THE 180TH DAY AFTER THE DATE OF THIS AGREEMENT, YOU WILL CONTINUE TO BE RESPONSIBLE FOR THE PAYMENT OF ALL COSTS AND FEES ASSOCIATED WITH YOUR TIMESHARE INTEREST, INCLUDING ANY REGULAR OR SPECIAL ASSESSMENTS OR REAL OR PERSONAL PROPERTY TAXES.</continuation>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 554 (H.B. 2261), Sec. 2, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scJ/s221.107">
<num value="221.107">Sec. 221.107.</num>
<heading>REQUIRED NOTICE FOR TERMINATION SERVICES</heading>
<chapeau>A person subject to this subchapter who enters into an agreement with a timeshare interest owner to facilitate the termination of the timeshare interest must provide to the timeshare interest owner a statement printed in 14-point boldface type or 14-point uppercase typewritten letters that reads substantially similar to the following:</chapeau>
<continuation>I (name of the person facilitating the termination of the timeshare interest) WILL ACT IN GOOD FAITH AND IN A COMMERCIALLY REASONABLE MANNER TO COMPLETE THE TERMINATION OF YOUR TIMESHARE INTEREST NOT LATER THAN THE 180TH DAY AFTER THE DATE OF THIS AGREEMENT BY OBTAINING:</continuation>
<paragraph identifier="/us/tx/pr/t12/c221/scJ/s221.107/1">
<num value="1">(1)</num>
<content>A VALID AND ENFORCEABLE RELEASE FROM THE DEVELOPER, ASSOCIATION, OR MANAGING ENTITY; OR</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scJ/s221.107/2">
<num value="2">(2)</num>
<content>A JUDGMENT OR COURT ORDER INVALIDATING THE PURCHASE OR OWNERSHIP OF YOUR TIMESHARE INTEREST.</content>
<continuation>YOUR OBLIGATION TO PAY ALL COSTS AND FEES ASSOCIATED WITH YOUR TIMESHARE INTEREST, INCLUDING ANY REGULAR OR SPECIAL ASSESSMENTS OR REAL OR PERSONAL PROPERTY TAXES, DOES NOT CEASE BY VIRTUE OF THE EXECUTION OF THIS AGREEMENT.</continuation>
<continuation>I CANNOT GUARANTEE THAT I WILL SUCCESSFULLY COMPLETE THE TERMINATION OF YOUR TIMESHARE INTEREST. IF I FAIL TO COMPLETE THE TERMINATION OF YOUR TIMESHARE INTEREST, YOU WILL CONTINUE TO BE RESPONSIBLE FOR THE PAYMENT OF ALL COSTS AND FEES ASSOCIATED WITH YOUR TIMESHARE INTEREST, INCLUDING ANY REGULAR OR SPECIAL ASSESSMENTS OR REAL OR PERSONAL PROPERTY TAXES.</continuation>
</paragraph>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 554 (H.B. 2261), Sec. 2, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scJ/s221.108">
<num value="221.108">Sec. 221.108.</num>
<heading>RELIANCE</heading>
<content>In making disclosures required by this subchapter, a person facilitating the transfer or termination of a timeshare interest may rely on written information provided by the timeshare interest owner, the developer, the association, or the managing entity.</content>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 554 (H.B. 2261), Sec. 2, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scJ/s221.109">
<num value="221.109">Sec. 221.109.</num>
<heading>DUTY OF GOOD FAITH REGARDING TRANSFER OR TERMINATION SERVICES</heading>
<content>A person facilitating the transfer or termination of a timeshare interest must act in good faith to accomplish the transfer or termination not later than the 180th day after the date the person enters into an agreement with the timeshare interest owner.</content>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 554 (H.B. 2261), Sec. 2, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scJ/s221.110">
<num value="221.110">Sec. 221.110.</num>
<heading>DECEPTIVE TRADE PRACTICES</heading>
<chapeau>A person subject to this subchapter commits a false, misleading, or deceptive act or practice within the meaning of Sections 17.46(a) and (b), Business & Commerce Code, by engaging in any of the following acts:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c221/scJ/s221.110/1">
<num value="1">(1)</num>
<content>failing to disclose information as required by this subchapter;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scJ/s221.110/2">
<num value="2">(2)</num>
<chapeau>making false or misleading statements concerning:</chapeau>
<subparagraph identifier="/us/tx/pr/t12/c221/scJ/s221.110/A">
<num value="A">(A)</num>
<content>the existence of an offer related to the purchase or rent of a timeshare interest;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scJ/s221.110/B">
<num value="B">(B)</num>
<content>the likelihood of the completion or the time necessary to complete any sale, rental, transfer, or termination of a timeshare interest;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scJ/s221.110/C">
<num value="C">(C)</num>
<content>the value of a timeshare interest;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scJ/s221.110/D">
<num value="D">(D)</num>
<content>the current or future costs, including assessments, maintenance fees, or taxes, of owning a timeshare interest;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scJ/s221.110/E">
<num value="E">(E)</num>
<content>the method by which or source from which a timeshare interest owner's name, address, telephone number, or other contact information was obtained;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scJ/s221.110/F">
<num value="F">(F)</num>
<content>the identity of the person providing services to facilitate the transfer or termination of a timeshare interest or any affiliate, agent, or third-party representative of that person;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scJ/s221.110/G">
<num value="G">(G)</num>
<content>the terms and conditions under which services to facilitate a transfer or termination of a timeshare interest are offered;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c221/scJ/s221.110/H">
<num value="H">(H)</num>
<content>the willingness of a developer, association, or managing entity to:</content>
</subparagraph>
</paragraph>
<subsection identifier="/us/tx/pr/t12/c221/scJ/s221.110/i">
<num value="i">(i)</num>
<chapeau>agree to the transfer or termination of a timeshare interest; or</chapeau>
<clause identifier="/us/tx/pr/t12/c221/scJ/s221.110/ii">
<num value="ii">(ii)</num>
<content>execute instruments necessary to transfer or terminate the timeshare interest; or</content>
</clause>
<subparagraph identifier="/us/tx/pr/t12/c221/scJ/s221.110/I">
<num value="I">(I)</num>
<content>the manner in which consideration or reimbursements paid by a timeshare interest owner will be used or applied;</content>
</subparagraph>
<paragraph identifier="/us/tx/pr/t12/c221/scJ/s221.110/3">
<num value="3">(3)</num>
<content>encouraging or inducing a timeshare interest owner to stop paying the developer, the association, or the managing entity in violation of a contract with or any other legally enforceable obligation to the developer, the association, or the managing entity before the completion of a transfer or termination; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c221/scJ/s221.110/4">
<num value="4">(4)</num>
<content>receiving or collecting consideration for or reimbursement related to the facilitation of the transfer of a timeshare interest before the timeshare interest owner receives the documents described by Sections 221.105(1) and (2).</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 554 (H.B. 2261), Sec. 2, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c221/scJ/s221.111">
<num value="221.111">Sec. 221.111.</num>
<heading>SUPERVISORY DUTIES</heading>
<subsection identifier="/us/tx/pr/t12/c221/scJ/s221.111/a">
<num value="a">(a)</num>
<content>The person who enters into an agreement to facilitate the transfer or termination of a timeshare interest shall supervise, manage, and control all aspects of the services provided under the agreement.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scJ/s221.111/b">
<num value="b">(b)</num>
<content>Any violation of this subchapter that occurs during the provision of services is considered a violation by the person who enters into the agreement and any affiliate, agent, or third-party representative of that person.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c221/scJ/s221.111/c">
<num value="c">(c)</num>
<content>Section 221.035 does not apply to a person providing services under this subchapter.</content>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 554 (H.B. 2261), Sec. 2, eff. September 1, 2015.</sourceCredit>
</section>
</subchapter>
</chapter>
<chapter identifier="/us/tx/pr/t12/c222">
<num value="222">CHAPTER 222.</num>
<heading>TEXAS MEMBERSHIP CAMPING RESORT ACT</heading>
<section identifier="/us/tx/pr/t12/c222/s222.001">
<num value="222.001">Sec. 222.001.</num>
<heading>SHORT TITLE</heading>
<content>This chapter may be cited as the Texas Membership Camping Resort Act.</content>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(d), eff. Aug. 28, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c222/s222.002">
<num value="222.002">Sec. 222.002.</num>
<heading>APPLICATION OF CHAPTER</heading>
<subsection identifier="/us/tx/pr/t12/c222/s222.002/a">
<num value="a">(a)</num>
<content>This chapter applies to all membership camping resorts located in this state.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c222/s222.002/b">
<num value="b">(b)</num>
<content>Sections 222.003-222.013 also apply to membership camping resorts located outside this state but offered for sale in this state.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c222/s222.002/c">
<num value="c">(c)</num>
<content>This chapter does not affect a membership camping contract made before August 31, 1987.</content>
</subsection>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(d), eff. Aug. 28, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c222/s222.003">
<num value="222.003">Sec. 222.003.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c222/s222.003/1">
<num value="1">(1)</num>
<content>"Advertising" means a direct or indirect solicitation or inducement to purchase and includes but is not necessarily limited to a solicitation or inducement made by print or electronic media, through the mail, or by personal contact.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.003/2">
<num value="2">(2)</num>
<content>"Amenities" means all common areas of real property occupied by a membership camping resort and includes but is not necessarily limited to camping sites, swimming pools, stables, tennis courts, recreation buildings, restrooms and showers, laundry rooms, trading posts, grocery stores, and maintenance facilities.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.003/3">
<num value="3">(3)</num>
<content>"Blanket encumbrance" means a mortgage, deed of trust, option to purchase, or vendor's lien, an interest obtained under a contract or agreement of sale, or other financing lien or encumbrance granted by an operator that secures or evidences the obligation to pay money or to sell or convey any campgrounds located in this state that are made available to purchasers by the operator, and that authorizes, permits, or requires the foreclosure or other disposition of the affected campground.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.003/4">
<num value="4">(4)</num>
<content>"Business day" means any day other than a Saturday, Sunday, or federal holiday.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.003/5">
<num value="5">(5)</num>
<content>"Camping site" means a space designed and promoted for the purpose of locating a trailer, tent, tent trailer, pickup camper, recreational vehicle, or similar device designed for camping.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.003/6">
<num value="6">(6)</num>
<content>"Dispose" or "disposition" means a voluntary transfer of any membership interest or membership right but does not include the transfer or release of a real estate lien or of a security interest.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.003/7">
<num value="7">(7)</num>
<content>"Home resort" means the camping resort to which the purchaser has purchased a right of membership. The term does not include a resort that a purchaser may use as a result of a reciprocal program among operators.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.003/8">
<num value="8">(8)</num>
<content>"Membership camping contract" means an agreement under which a purchaser pays for or becomes obligated to pay for a membership interest or membership right in a membership camping resort.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.003/9">
<num value="9">(9)</num>
<content>"Membership camping contract broker" means a person who resells a membership camping contract to a new purchaser on behalf of the former purchaser. The term does not include a membership camping operator or that person's agent.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.003/10">
<num value="10">(10)</num>
<content>"Membership camping resort disclosure statement" means a written statement that includes the information that is required by Section 222.006(b).</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.003/11">
<num value="11">(11)</num>
<content>"Membership camping resort" means real property owned or operated by a membership camping operator that is available for camping by purchasers of a membership right.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.003/12">
<num value="12">(12)</num>
<content>"Membership interest" means a membership camping resort estate.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.003/13">
<num value="13">(13)</num>
<content>"Membership right" means a license, contract right, or other right entitling a purchaser to use camping sites or amenities at a membership camping resort.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.003/14">
<num value="14">(14)</num>
<content>"Offering" or "offer" means any advertisement, inducement, or solicitation and includes but is not necessarily limited to any attempt to encourage a person to purchase a membership interest or membership right.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.003/15">
<num value="15">(15)</num>
<chapeau>"Operator" means a person who owns or provides a camping site or an amenity to a purchaser. The term does not include:</chapeau>
<subparagraph identifier="/us/tx/pr/t12/c222/s222.003/A">
<num value="A">(A)</num>
<content>a person who owns or otherwise provides a mobile home park or a camping or recreational trailer park open to the general public with camping sites that are rented on a fee for use basis and who does not solicit purchases of membership camping contracts; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c222/s222.003/B">
<num value="B">(B)</num>
<content>an outdoor service, facility, enterprise, or park that is owned or operated by or under the control of the United States, this state, or a political subdivision of this state.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.003/16">
<num value="16">(16)</num>
<content>"Promotion" means any program or activity that is used to induce any person to attend a membership camping resort sales presentation.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.003/17">
<num value="17">(17)</num>
<content>"Promotional disclosure statement" means a written statement that includes the information required by Section 222.006(a).</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.003/18">
<num value="18">(18)</num>
<content>"Purchaser" means a person, other than an operator, seller, or broker, who by means of voluntary transfer acquires a membership interest or membership right in a membership camping resort other than as security for an obligation.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.003/19">
<num value="19">(19)</num>
<content>"Reciprocal company" means any person, including an operator, who operates a reciprocal program.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.003/20">
<num value="20">(20)</num>
<content>"Reciprocal program disclosure statement" means a written statement that includes the information required by Section 222.006(c).</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.003/21">
<num value="21">(21)</num>
<content>"Reciprocal program" means any program under which the purchaser of a membership interest or membership right in a membership camping resort may use the facilities of a membership camping resort other than those of the purchaser's home resort.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.003/22">
<num value="22">(22)</num>
<content>"Seller" means a person, including an operator, who in the ordinary course of business offers a membership interest or membership right for sale to the public but does not include a person who acquires a membership interest or membership right for his use and subsequently offers it for resale.</content>
</paragraph>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(d), eff. Aug. 28, 1989. Amended by Acts 1989, 71st Leg., ch. 1039, Sec. 3.20, eff. Sept. 1, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c222/s222.004">
<num value="222.004">Sec. 222.004.</num>
<heading>REGISTRATION; ADMINISTRATION</heading>
<subsection identifier="/us/tx/pr/t12/c222/s222.004/a">
<num value="a">(a)</num>
<content>A person may not offer or dispose of a membership interest or membership right under a membership camping contract in this state unless the operator is registered with the secretary of state. If an operator also sells membership camping contracts, that operator must also comply with the registration requirements for membership camping contract brokers imposed by Section 222.005.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c222/s222.004/b">
<num value="b">(b)</num>
<chapeau>A registration filed under this section must be on a form prescribed by the secretary of state and must include, to the extent applicable, the following information:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c222/s222.004/1">
<num value="1">(1)</num>
<content>the operator's name, address, and the organizational form of the operator's business, including the date and jurisdiction under which the business was organized, the name and address of each of its officers in this state, and the name and address of each membership camping resort located in this state that is owned or operated in whole or in part by the operator;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.004/2">
<num value="2">(2)</num>
<content>a list of all owners of 10 percent or more of the capital stock of the operator's business if the operator is not required to report under the Securities Exchange Act of 1934 (15 U.S.C. Sec. 78a et seq.);</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.004/3">
<num value="3">(3)</num>
<content>a brief description and certified copy of the instrument creating the operator's ownership of or other right to use the membership camping resort and the amenities that are to be available for use by purchasers, together with a copy of any lease, license, franchise, reciprocal agreement, or other agreement entitling the operator to use the membership camping resort and the amenities, and any material provision of the agreement that restricts a purchaser's use of the membership camping resort or the amenities;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.004/4">
<num value="4">(4)</num>
<content>a sample copy of each instrument to be delivered to a purchaser to evidence the purchaser's membership in the membership camping resort and a sample copy of each agreement that a purchaser is required to execute;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.004/5">
<num value="5">(5)</num>
<content>financial statements of the operator for the most recent fiscal quarter;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.004/6">
<num value="6">(6)</num>
<content>a narrative description of the promotional plan for the offering of membership interests or membership rights;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.004/7">
<num value="7">(7)</num>
<content>a copy of any agreement between the operator and any person owning, controlling, or managing the membership camping resort;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.004/8">
<num value="8">(8)</num>
<content>a complete list of the locations and addresses of any sales offices located in this state;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.004/9">
<num value="9">(9)</num>
<content>the names of any other states or foreign countries in which a registration of the operator or the membership camping contract has been filed;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.004/10">
<num value="10">(10)</num>
<content>complete information concerning any adverse order, judgment, or decree entered by any court or administrative agency in connection with a membership camping resort operated by the operator or in which the operator had an interest at the time of the order, judgment, or decree;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.004/11">
<num value="11">(11)</num>
<content>a description of any blanket encumbrance on the membership camping resort; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.004/12">
<num value="12">(12)</num>
<content>a membership camping resort disclosure statement and any required reciprocal program disclosure statement required by Section 222.006.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c222/s222.004/c">
<num value="c">(c)</num>
<content>The registration must be signed by the operator, by an officer or general partner of the operator, or by another person who holds a power of attorney for this purpose from the operator. If the registration is signed under a power of attorney, a copy of the power of attorney must be included with the registration. The registration must be submitted with the registration fee set by the secretary of state pursuant to Section 222.010.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c222/s222.004/d">
<num value="d">(d)</num>
<content>The operator shall promptly file amendments to the registration reporting to the secretary of state any material and adverse change in any document contained in such registration. For the purposes of this subsection, a material and adverse change includes any change that significantly reduces or terminates either the applicant's or a purchaser's right to use the membership camping resort or any of the amenities described by the membership camping contract but does not include minor changes covering the use of the membership camping resort, its amenities, or any reciprocal program.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c222/s222.004/e">
<num value="e">(e)</num>
<content>The secretary of state shall investigate all matters relating to the registration and may in his discretion require a personal inspection of the proposed membership camping resort by any persons designated by him.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c222/s222.004/f">
<num value="f">(f)</num>
<content>The secretary of state may prescribe and publish forms necessary to carry out the provisions of this chapter. The secretary of state may not approve or disapprove any registration, and an operator may not represent to any person that the secretary of state endorses or approves the membership camping resort or membership camping contract.</content>
</subsection>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(d), eff. Aug. 28, 1989. Amended by Acts 1989, 71st Leg., ch. 1039, Sec. 3.21, eff. Sept. 1, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c222/s222.005">
<num value="222.005">Sec. 222.005.</num>
<heading>REGISTRATION OF SELLERS AND MEMBERSHIP CAMPING CONTRACT BROKERS</heading>
<subsection identifier="/us/tx/pr/t12/c222/s222.005/a">
<num value="a">(a)</num>
<content>A person may not offer a membership interest or membership right in a membership camping resort or resell membership camping contracts in this state unless the person is registered with the secretary of state. Each application for registration as a seller or membership camping contract broker must be in writing and must be signed by the applicant.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c222/s222.005/b">
<num value="b">(b)</num>
<chapeau>The application must state:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c222/s222.005/1">
<num value="1">(1)</num>
<content>the name and address of the applicant;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.005/2">
<num value="2">(2)</num>
<content>the name and place of business of the applicant's employer, if any;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.005/3">
<num value="3">(3)</num>
<content>whether the applicant has been convicted of a felony or a misdemeanor involving moral turpitude and if so, the nature of the felony, where and when it was committed, and the disposition of the conviction; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.005/4">
<num value="4">(4)</num>
<content>whether the applicant has been refused a real estate broker's or salesman's license or any other occupational license in this or any other state or whether the applicant's license as a real estate broker or salesman in this or any other state has been revoked or suspended.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c222/s222.005/c">
<num value="c">(c)</num>
<content>The secretary of state may require any additional information that is reasonably necessary to determine the good moral character of an applicant for registration.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c222/s222.005/d">
<num value="d">(d)</num>
<content>Each application for registration as a seller or membership camping contract broker must be accompanied by the required registration fee set by the secretary of state pursuant to Section 222.010.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c222/s222.005/e">
<num value="e">(e)</num>
<content>The secretary of state may prescribe and publish forms to carry out the provisions of this section.</content>
</subsection>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(d), eff. Aug. 28, 1989. Amended by Acts 1989, 71st Leg., ch. 1039, Sec. 3.22, eff. Sept. 1, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c222/s222.006">
<num value="222.006">Sec. 222.006.</num>
<heading>DISCLOSURE STATEMENTS</heading>
<subsection identifier="/us/tx/pr/t12/c222/s222.006/a">
<num value="a">(a)</num>
<chapeau>Before or at the time of the use of any promotion in connection with the offering of a membership interest or membership right in a membership camping resort, the person who intends to use the promotion shall include the following information in its advertisements to the prospective purchaser:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c222/s222.006/1">
<num value="1">(1)</num>
<content>a statement to the effect that the promotion is intended to solicit purchasers of membership interests or membership rights in a membership camping resort;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.006/2">
<num value="2">(2)</num>
<content>the full name of the operator and seller of the membership interest or membership right in the membership camping resort;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.006/3">
<num value="3">(3)</num>
<content>if applicable, the full name and address of any marketing company involved in the promotion of the membership camping resort;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.006/4">
<num value="4">(4)</num>
<content>the complete rules of the promotion;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.006/5">
<num value="5">(5)</num>
<content>the method of awarding, the odds of winning, and the approximate retail value of prizes, gifts, or other benefits under the promotion and the date by which each prize, gift, or other benefit will be awarded or conferred;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.006/6">
<num value="6">(6)</num>
<chapeau>any restrictions, qualifications, or other conditions that the recipient must satisfy before the recipient is entitled to receive a prize, gift, or other benefit, including:</chapeau>
<subparagraph identifier="/us/tx/pr/t12/c222/s222.006/A">
<num value="A">(A)</num>
<content>any deadline by which the recipient must visit the membership camping resort, attend the sales presentation, or contact a seller in order to receive the prize, gift, or other benefit;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c222/s222.006/B">
<num value="B">(B)</num>
<content>the date on which the offer expires; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t12/c222/s222.006/C">
<num value="C">(C)</num>
<content>any other conditions, including minimum age qualifications, financial qualifications, or a requirement that if the recipient is married both husband and wife must be present in order to receive the prize, gift, or other benefit;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.006/7">
<num value="7">(7)</num>
<content>if applicable, a statement that the operator or seller reserves the right to provide a certificate with which to redeem or claim the prize, gift, or other benefit awarded and that the prize, gift, or other benefit shall be shipped or delivered to the recipient within 30 days following the mailing of the certificate; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.006/8">
<num value="8">(8)</num>
<content>if applicable, a statement that the operator or seller reserves the right to substitute a prize, gift, or other benefit of equal value for the prize, gift, or other benefit awarded if the item is not available to the operator or seller after the purchaser or prospect has complied with the provisions of the promotion.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c222/s222.006/b">
<num value="b">(b)</num>
<chapeau>Before or at the time of the signing of any agreement or membership camping contract to acquire a membership interest or membership right in a membership camping resort, the operator shall provide a membership camping resort disclosure statement to the prospective purchaser and shall obtain from the purchaser a written acknowledgement of receipt of the membership camping resort disclosure statement. The membership camping resort disclosure statement must include:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c222/s222.006/1">
<num value="1">(1)</num>
<content>the name and address of the operator and the name and specific location of the membership camping resort;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.006/2">
<num value="2">(2)</num>
<content>a description of the amenities, membership camping resort, and any project or development within which the membership camping resort is located or of which it is a part. The disclosure statement must also state the total number of camping sites in the membership camping resort and whether and under what circumstances that number may be increased or decreased; if a membership interest or membership right includes amenities not yet in existence, the disclosure statement must provide the approximate commencement and completion schedule of those proposed amenities;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.006/3">
<num value="3">(3)</num>
<content>a description of the membership interests and membership rights currently available for disposition;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.006/4">
<num value="4">(4)</num>
<content>a statement that a council of purchasers exists or is expected to be created or that such a council does not exist and is not expected to be created; if such a council exists or is reasonably contemplated, the disclosure statement must contain a description of its powers and responsibilities;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.006/5">
<num value="5">(5)</num>
<content>the name and principal address of the managing entity;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.006/6">
<num value="6">(6)</num>
<content>a description and amount of any current or expected dues, assessments, fees, taxes, or charges to be paid by purchasers for the use of amenities or for any other purpose;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.006/7">
<num value="7">(7)</num>
<content>a description and amount of insurance coverage provided for the protection of the purchaser; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.006/8">
<num value="8">(8)</num>
<content>a statement that any deposit made in connection with the purchase of a membership interest or membership right will be held until expiration of any right to cancel the contract or any later time specified in the contract and will be returned to the purchaser if he elects to exercise his right of cancellation.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c222/s222.006/c">
<num value="c">(c)</num>
<chapeau>Before or at the time of the signing of any agreement or membership camping contract in which a prospective purchaser is also offered participation in a reciprocal program, the operator shall also deliver to the prospective purchaser the reciprocal program disclosure statement of the reciprocal company whose reciprocal program is advertised or offered by the operator or seller in connection with the disposition. If participation in a reciprocal program is offered for the first time after a disposition has occurred, any person offering the participation shall also deliver a reciprocal program disclosure statement to the purchaser before the execution by the purchaser of any instrument relating to participation in the reciprocal program. In all cases, the person offering the participation shall obtain from the purchaser a written acknowledgement of receipt of the reciprocal program disclosure statement. The reciprocal program disclosure statement must include the following information:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c222/s222.006/1">
<num value="1">(1)</num>
<content>the name and address of the reciprocal company;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.006/2">
<num value="2">(2)</num>
<content>if the reciprocal company is not the operator, a statement describing the legal relationship, if any, between the reciprocal company and the operator;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.006/3">
<num value="3">(3)</num>
<content>a statement that the reciprocal program might terminate or become unavailable;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.006/4">
<num value="4">(4)</num>
<content>whether membership or participation, or both, in the reciprocal program is voluntary or mandatory;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.006/5">
<num value="5">(5)</num>
<content>a complete description of the required procedure for using the reciprocal program;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.006/6">
<num value="6">(6)</num>
<content>the fee required for membership or participation, or both, in the reciprocal program and whether the fee is subject to change;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.006/7">
<num value="7">(7)</num>
<content>a statement to the effect that participation in the reciprocal program is conditioned on compliance with the terms of a contract between the reciprocal company and the purchaser; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.006/8">
<num value="8">(8)</num>
<content>a statement in conspicuous and bold-faced print to the effect that all reciprocal campgrounds are arranged on a space-available basis and that neither the operator nor the reciprocal company guarantees that a particular reciprocal campground can be used.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c222/s222.006/d">
<num value="d">(d)</num>
<chapeau>A disclosure statement need not be delivered in the case of:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c222/s222.006/1">
<num value="1">(1)</num>
<content>a gratuitous disposition of a membership interest or membership right;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.006/2">
<num value="2">(2)</num>
<content>a disposition pursuant to a court order;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.006/3">
<num value="3">(3)</num>
<content>a disposition by a governmental agency;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.006/4">
<num value="4">(4)</num>
<content>a disposition by foreclosure or deed in lieu of foreclosure;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.006/5">
<num value="5">(5)</num>
<content>a disposition that may be canceled by the purchaser without penalty at any time and for any reason;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.006/6">
<num value="6">(6)</num>
<content>a disposition of a membership interest or membership right in a membership camping resort situated wholly outside this state under a contract executed wholly outside this state, if there has been no offering to the purchaser within this state;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.006/7">
<num value="7">(7)</num>
<content>a disposition of a membership interest or membership right to a purchaser who is not a resident of this state under a contract executed wholly outside this state, if there has been no offering to the purchaser within this state; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.006/8">
<num value="8">(8)</num>
<content>the redisposition of a membership interest or membership right by a purchaser who acquired the interest or right for his personal use.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(d), eff. Aug. 28, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c222/s222.007">
<num value="222.007">Sec. 222.007.</num>
<heading>CONTRACT</heading>
<subsection identifier="/us/tx/pr/t12/c222/s222.007/a">
<num value="a">(a)</num>
<content>Each sale of a membership interest or membership right in a membership camping resort must be evidenced by a membership camping contract written in the language principally used in any promotional presentation made to the purchaser. The seller must give the purchaser a copy of the contract at the time it is signed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c222/s222.007/b">
<num value="b">(b)</num>
<chapeau>Each contract must contain the following:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c222/s222.007/1">
<num value="1">(1)</num>
<content>the name and address of the operator and the seller and the location of the membership camping resort;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.007/2">
<num value="2">(2)</num>
<content>the signature of the operator or seller;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.007/3">
<num value="3">(3)</num>
<content>the signature of the purchaser;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.007/4">
<num value="4">(4)</num>
<content>the date on which the purchaser signs the contract;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.007/5">
<num value="5">(5)</num>
<content>the name of the person who closed the transaction described in the membership camping contract;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.007/6">
<num value="6">(6)</num>
<content>a brief description of the nature of the purchaser's interest in and right or license to use the membership camping resort;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.007/7">
<num value="7">(7)</num>
<content>a summary or copy of the rules, restrictions, or covenants regulating the purchaser's use of the operator's properties, including a statement of whether and how the rules, restrictions, or covenants may be changed;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.007/8">
<num value="8">(8)</num>
<content>any restraints on the transfer of the membership camping contract;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.007/9">
<num value="9">(9)</num>
<content>any grounds for forfeiture of a purchaser's membership camping contract;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.007/10">
<num value="10">(10)</num>
<content>if applicable, a statement of the purchaser's right to cancel the membership camping contract as provided by Section 222.008(c);</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.007/11">
<num value="11">(11)</num>
<content>a statement of whether the purchaser visited the location of the membership camping resort before signing the contract; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.007/12">
<num value="12">(12)</num>
<content>if applicable, a statement by the seller that if the purchaser timely exercises any right of cancellation under the contract, all payments made by the purchaser to the seller in connection with the contract shall be returned to the purchaser before the 21st day after the seller receives notice of cancellation as required under Section 222.008.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c222/s222.007/c">
<num value="c">(c)</num>
<content>The contract must also contain a brief description of the existing amenities available for use by purchasers at the home resort and of any proposed amenities or amenities not yet complete or fully functional.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c222/s222.007/d">
<num value="d">(d)</num>
<content>The contract must also contain a brief statement of the operator's ownership of or other right to use the camping properties represented to be available for use by purchasers, together with the duration of any lease, license, franchise, or reciprocal program entitling the operator to use the property, and material provisions of any agreements that restrict a purchaser's use of the property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c222/s222.007/e">
<num value="e">(e)</num>
<content>The contract must be revised annually to include any changes to the information required by this section, if applicable.</content>
</subsection>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(d), eff. Aug. 28, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c222/s222.008">
<num value="222.008">Sec. 222.008.</num>
<heading>PURCHASER'S RIGHT TO CANCEL</heading>
<subsection identifier="/us/tx/pr/t12/c222/s222.008/a">
<num value="a">(a)</num>
<content>A purchaser may cancel a membership camping contract to purchase a membership interest or membership right before the fourth business day after the contract is executed if the purchaser did not visit the location of the membership camping resort being offered for sale before the contract was signed. A purchaser may not waive his right of cancellation under this section. A contract containing a waiver is voidable by the purchaser.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c222/s222.008/b">
<num value="b">(b)</num>
<content>If a purchaser elects to cancel a membership camping contract under Subsection (a), he may do so by hand delivering notice of cancellation to the seller or by mailing notice by prepaid United States mail to the seller or to the seller's agent for service of process. Cancellation is without penalty, and all payments made by the purchaser before cancellation must be refunded before the 21st day after the date on which the seller receives notice of cancellation.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c222/s222.008/c">
<num value="c">(c)</num>
<content>If applicable, immediately before the space reserved in the contract for the signature of the purchaser, in bold-faced and conspicuous type or print that is larger than the type of print in the remaining text of the contract, substantially the following statement must appear:</content>
</subsection>
<sourceCredit>"If you have not visited the location of the membership camping resort in which you are acquiring an interest or membership right, you may cancel this contract without penalty or obligation before the fourth business day after the date on which you signed this contract. If you decide to cancel this contract, you may do so by hand delivering notice of cancellation to the seller or by mailing notice by prepaid United States mail to the seller or the seller's agent for service of process. Your notice of cancellation is effective on the date sent or delivered to (name of seller) at (address of seller). A purchaser should not rely on statements other than those included in this contract and the disclosure statement."
Added by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(d), eff. Aug. 28, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c222/s222.009">
<num value="222.009">Sec. 222.009.</num>
<heading>RECIPROCAL PROGRAM</heading>
<content>An operator does not incur any liability arising out of use, delivery, or publication by the operator to the purchaser of written information or audio-visual materials provided to it by the reciprocal company pursuant to Section 222.006; provided, however, that an operator is subject to liability arising out of the use, delivery, or publication to the purchaser of materials provided by the reciprocal company if the operator knows that the materials are inaccurate or false.</content>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(d), eff. Aug. 28, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c222/s222.010">
<num value="222.010">Sec. 222.010.</num>
<heading>FEES</heading>
<subsection identifier="/us/tx/pr/t12/c222/s222.010/a">
<num value="a">(a)</num>
<content>The secretary of state shall set all fees imposed by this chapter in amounts reasonable and necessary to cover the costs of administering this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c222/s222.010/b">
<num value="b">(b)</num>
<content>The secretary of state shall deposit all fees received under this chapter in the state treasury to the credit of a special fund to be used in the administration of this chapter.</content>
</subsection>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(d), eff. Aug. 28, 1989. Amended by Acts 1989, 71st Leg., ch. 1039, Sec. 3.23, eff. Sept. 1, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c222/s222.011">
<num value="222.011">Sec. 222.011.</num>
<heading>VIOLATIONS</heading>
<subsection identifier="/us/tx/pr/t12/c222/s222.011/a">
<num value="a">(a)</num>
<chapeau>A person commits a false, misleading, or deceptive act or practice within the meaning of Subsections (a) and (b), Section 17.46, Deceptive Trade Practices-Consumer Protection Act (Section 17.46, Business & Commerce Code), by engaging in any of the following acts:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c222/s222.011/1">
<num value="1">(1)</num>
<content>failing to disclose information concerning a membership interest or membership right required by Section 222.006;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.011/2">
<num value="2">(2)</num>
<content>failing to provide a purchaser with a copy of the membership camping contract and any other document signed by the purchaser or the operator in connection with the purchase of a membership interest or membership right;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.011/3">
<num value="3">(3)</num>
<content>making false or misleading statements of a material nature concerning camping sites or amenities available to the purchaser;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.011/4">
<num value="4">(4)</num>
<content>predicting specific or immediate increases in the value of a membership interest or membership right without a reasonable basis for such predictions;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.011/5">
<num value="5">(5)</num>
<content>making false or misleading statements of a material nature concerning the conditions under which a purchaser of a membership interest or membership right may use or occupy other membership camping resort camping sites or amenities;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.011/6">
<num value="6">(6)</num>
<content>representing that a prize, gift, or other benefit will be awarded in connection with a promotion with intent not to award that prize, gift, or other benefit;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.011/7">
<num value="7">(7)</num>
<content>representing that registration with the secretary of state under Section 222.004 constitutes approval or endorsement by the secretary of state of the operator, the membership camping contract, or the membership camping resort;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.011/8">
<num value="8">(8)</num>
<content>offering or disposing of a membership interest or membership right under a membership camping contract without having complied with the registration requirements under Section 222.004; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.011/9">
<num value="9">(9)</num>
<content>offering for sale a membership interest or membership right in a membership camping resort without having complied with the registration requirements under Section 222.005.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t12/c222/s222.011/b">
<num value="b">(b)</num>
<content>The provisions of this section are not exclusive and are in addition to provisions provided for in any other law.</content>
</subsection>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(d), eff. Aug. 28, 1989. Amended by Acts 1989, 71st Leg. ch. 1039, Sec. 3.24, eff. Sept. 1, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c222/s222.012">
<num value="222.012">Sec. 222.012.</num>
<heading>INSURANCE</heading>
<chapeau>Before the disposition of any membership interest or membership right in a membership camping resort, the operator shall maintain the following insurance with respect to the membership camping resort:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c222/s222.012/1">
<num value="1">(1)</num>
<content>property insurance on any personal property for use by purchasers, other than personal property separately owned by a purchaser, insuring against all risks of direct physical loss commonly insured against in a total amount, after application of deductibles, of the insurable value of the personal property of the membership camping resort; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c222/s222.012/2">
<num value="2">(2)</num>
<content>liability insurance covering all occurrences commonly insured against for death, bodily injury, and property damage arising out of or in connection with the use, ownership, and maintenance of the membership camping resort.</content>
</paragraph>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(d), eff. Aug. 28, 1989.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c222/s222.013">
<num value="222.013">Sec. 222.013.</num>
<heading>EXEMPT FROM SECURITIES ACT</heading>
<content>The filing of a registration under this chapter exempts the sale of a membership interest or membership right in a membership camping resort subject to this chapter from registration under The Securities Act (Title 12, Government Code).</content>
<sourceCredit>Added by Acts 1989, 71st Leg., ch. 2, Sec. 13.03(d), eff. Aug. 28, 1989.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 491 (H.B. 4171), Sec. 2.40, eff. January 1, 2022.</sourceCredit>
</section>
</chapter>
<chapter identifier="/us/tx/pr/t12/c223">
<num value="223">CHAPTER 223.</num>
<heading>BUSINESS ENTITY-OWNED RESIDENTIAL ARRANGEMENTS</heading>
<section identifier="/us/tx/pr/t12/c223/s223.001">
<num value="223.001">Sec. 223.001.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c223/s223.001/1">
<num value="1">(1)</num>
<content>"Business entity" means a partnership, corporation, joint venture, limited liability company, or other business organization or business association, however organized.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c223/s223.001/2">
<num value="2">(2)</num>
<content>"Managing entity" means a business entity that owns residential property used in a residential arrangement.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c223/s223.001/3">
<num value="3">(3)</num>
<content>"Residential arrangement" means an arrangement in which the purchaser of an interest in a business entity is entitled to exclusive possession of residential property owned by the entity as long as the purchaser holds the interest in the business entity.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c223/s223.001/4">
<num value="4">(4)</num>
<content>"Residential property" means the real property and improvements for a single-family house, duplex, triplex, or quadruplex.</content>
</paragraph>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 1096 (H.B. 4211), Sec. 1, eff. June 20, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c223/s223.002">
<num value="223.002">Sec. 223.002.</num>
<heading>APPLICABILITY</heading>
<content>This chapter does not apply to a timeshare plan, as defined by Section 221.002.</content>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 1096 (H.B. 4211), Sec. 1, eff. June 20, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c223/s223.003">
<num value="223.003">Sec. 223.003.</num>
<heading>AGREEMENTS AND RULES</heading>
<subsection identifier="/us/tx/pr/t12/c223/s223.003/a">
<num value="a">(a)</num>
<content>An agreement for the purchase of an interest in a managing entity must disclose to the purchaser that the agreement is for the purchase of an interest in the entity and not in any residential property itself.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c223/s223.003/b">
<num value="b">(b)</num>
<content>The purchase agreement and any other agreement or rules governing the residential arrangement or the ownership interest in the entity may not require that a dispute concerning the arrangement or interest be brought before a tribunal other than a court established under the laws of this state or the United States.</content>
</subsection>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 1096 (H.B. 4211), Sec. 1, eff. June 20, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c223/s223.004">
<num value="223.004">Sec. 223.004.</num>
<heading>DISCRIMINATION PROHIBITED</heading>
<chapeau>A managing entity may not take an action with respect to an interest in the entity in a manner that would be a violation of Chapter 301 if the interest in the entity were an interest in real property, including:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c223/s223.004/1">
<num value="1">(1)</num>
<content>restricting the transfer of the interest;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c223/s223.004/2">
<num value="2">(2)</num>
<content>imposing requirements to maintain the interest; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c223/s223.004/3">
<num value="3">(3)</num>
<content>refusing to grant an interest to an otherwise qualified person.</content>
</paragraph>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 1096 (H.B. 4211), Sec. 1, eff. June 20, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c223/s223.005">
<num value="223.005">Sec. 223.005.</num>
<heading>TRANSFER OF INTEREST</heading>
<content>Notwithstanding any provision in an agreement between the owner and a managing entity, an owner of an interest in a managing entity may transfer the interest without approval from the managing entity.</content>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 1096 (H.B. 4211), Sec. 1, eff. June 20, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c223/s223.006">
<num value="223.006">Sec. 223.006.</num>
<heading>CERTAIN CHARGES PROHIBITED</heading>
<content>A managing entity may not charge a fee for or share in the proceeds of the transfer of an interest in the managing entity from an owner to a subsequent purchaser.</content>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 1096 (H.B. 4211), Sec. 1, eff. June 20, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t12/c223/s223.007">
<num value="223.007">Sec. 223.007.</num>
<heading>ENFORCEMENT</heading>
<subsection identifier="/us/tx/pr/t12/c223/s223.007/a">
<num value="a">(a)</num>
<content>A violation of this chapter is a deceptive trade practice actionable under Subchapter E, Chapter 17, Business & Commerce Code.</content>
</subsection>
<subsection identifier="/us/tx/pr/t12/c223/s223.007/b">
<num value="b">(b)</num>
<chapeau>A court that finds a violation of this chapter may enjoin a managing entity or a person affiliated with the managing entity from taking action in furtherance of development of or construction on residential property used in a residential arrangement subject to an action under this section, including:</chapeau>
<paragraph identifier="/us/tx/pr/t12/c223/s223.007/1">
<num value="1">(1)</num>
<content>filing a petition with the Texas Commission on Environmental Quality for the creation of a municipal utility district under Chapter 49, Water Code;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c223/s223.007/2">
<num value="2">(2)</num>
<content>taking action in connection with a petition for the creation of a district described by Subdivision (1) filed with the Texas Commission on Environmental Quality before the issuance of the injunction; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t12/c223/s223.007/3">
<num value="3">(3)</num>
<content>receiving, directly or indirectly, any public money or benefit.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2025, 89th Leg., R.S., Ch. 1096 (H.B. 4211), Sec. 1, eff. June 20, 2025.</sourceCredit>
</section>
</chapter>
<num value="13">TITLE 13.</num>
<heading>DISCLAIMER OF PROPERTY INTERESTS</heading>
<chapter identifier="/us/tx/pr/t13/c240">
<num value="240">CHAPTER 240.</num>
<heading>TEXAS UNIFORM DISCLAIMER OF PROPERTY INTERESTS ACT</heading>
<subchapter identifier="/us/tx/pr/t13/c240/scA">
<num value="A">SUBCHAPTER A.</num>
<heading>GENERAL PROVISIONS</heading>
<section identifier="/us/tx/pr/t13/c240/scA/s240.001">
<num value="240.001">Sec. 240.001.</num>
<heading>SHORT TITLE</heading>
<content>This chapter may be cited as the Texas Uniform Disclaimer of Property Interests Act.</content>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428), Sec. 15, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t13/c240/scA/s240.002">
<num value="240.002">Sec. 240.002.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.002/1">
<num value="1">(1)</num>
<content>"Charity" means a charitable entity or a charitable trust, as those terms are defined by Section 123.001.</content>
<continuation>(1-a) "Current beneficiary" and "presumptive remainder beneficiary" have the meanings assigned by Section 112.071.</continuation>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.002/2">
<num value="2">(2)</num>
<chapeau>"Disclaim" means to refuse to accept an interest in or power over property, including an interest or power the person is entitled to:</chapeau>
<subparagraph identifier="/us/tx/pr/t13/c240/scA/s240.002/A">
<num value="A">(A)</num>
<content>by inheritance;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t13/c240/scA/s240.002/B">
<num value="B">(B)</num>
<content>under a will;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t13/c240/scA/s240.002/C">
<num value="C">(C)</num>
<content>by an agreement between spouses for community property with a right of survivorship;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t13/c240/scA/s240.002/D">
<num value="D">(D)</num>
<content>by a joint tenancy with a right of survivorship;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t13/c240/scA/s240.002/E">
<num value="E">(E)</num>
<content>by a survivorship agreement, account, or interest in which the interest of the decedent passes to a surviving beneficiary;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t13/c240/scA/s240.002/F">
<num value="F">(F)</num>
<content>by an insurance, annuity, endowment, employment, deferred compensation, or other contract or arrangement;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t13/c240/scA/s240.002/G">
<num value="G">(G)</num>
<content>under a pension, profit sharing, thrift, stock bonus, life insurance, survivor income, incentive, or other plan or program providing retirement, welfare, or fringe benefits with respect to an employee or a self-employed individual; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t13/c240/scA/s240.002/H">
<num value="H">(H)</num>
<content>by an instrument creating a trust.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.002/3">
<num value="3">(3)</num>
<chapeau>"Disclaimant" means:</chapeau>
<subparagraph identifier="/us/tx/pr/t13/c240/scA/s240.002/A">
<num value="A">(A)</num>
<content>the person to whom a disclaimed interest or power would have passed had the disclaimer not been made;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t13/c240/scA/s240.002/B">
<num value="B">(B)</num>
<content>the estate to which a disclaimed interest or power would have passed had the disclaimer not been made by the personal representative of the estate; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t13/c240/scA/s240.002/C">
<num value="C">(C)</num>
<content>the trust into which a disclaimed interest or power would have passed had the disclaimer not been made by the trustee of the trust.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.002/4">
<num value="4">(4)</num>
<content>"Disclaimed interest" means the interest that would have passed to the disclaimant had the disclaimer not been made.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.002/5">
<num value="5">(5)</num>
<content>"Disclaimed power" means the power that would have been possessed by the disclaimant had the disclaimer not been made.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.002/6">
<num value="6">(6)</num>
<content>"Disclaimer" means the refusal to accept an interest in or power over property.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.002/7">
<num value="7">(7)</num>
<content>"Estate" has the meaning assigned by Section 22.012, Estates Code.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.002/8">
<num value="8">(8)</num>
<content>"Fiduciary" means a personal representative, a trustee, an attorney in fact or agent acting under a power of attorney, or any other person authorized to act as a fiduciary with respect to the property of another person.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.002/9">
<num value="9">(9)</num>
<content>"Guardian" has the meaning assigned by Section 1002.012, Estates Code.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.002/10">
<num value="10">(10)</num>
<content>Notwithstanding Section 311.005, Government Code, "person" means an individual, corporation, including a public corporation, business trust, partnership, limited liability company, association, joint venture, governmental entity, including a political subdivision, agency, or instrumentality, or any other legal entity.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.002/11">
<num value="11">(11)</num>
<content>"Personal representative" has the meanings assigned by Sections 22.031 and 1002.028, Estates Code.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.002/12">
<num value="12">(12)</num>
<content>"State" means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States. The term includes an Indian tribe or band, or Alaskan native village, recognized by federal law or formally acknowledged by a state.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.002/13">
<num value="13">(13)</num>
<chapeau>"Survivorship property" means property held in the name of two or more persons under an arrangement in which, on the death of one of the persons, the property passes to and is vested in the other person or persons. The term includes:</chapeau>
<subparagraph identifier="/us/tx/pr/t13/c240/scA/s240.002/A">
<num value="A">(A)</num>
<content>property held by an agreement described in Section 111.001, Estates Code;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t13/c240/scA/s240.002/B">
<num value="B">(B)</num>
<content>property held by a community property survivorship agreement defined in Section 112.001, Estates Code; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t13/c240/scA/s240.002/C">
<num value="C">(C)</num>
<content>property in a joint account held by an agreement described in Section 113.151, Estates Code.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.002/14">
<num value="14">(14)</num>
<content>"Trust" has the meaning assigned by Section 111.003.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.002/15">
<num value="15">(15)</num>
<content>"Ward" has the meaning assigned by Section 22.033, Estates Code.</content>
</paragraph>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428), Sec. 15, eff. September 1, 2015.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 62 (S.B. 617), Sec. 15, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t13/c240/scA/s240.003">
<num value="240.003">Sec. 240.003.</num>
<heading>APPLICABILITY OF CHAPTER</heading>
<content>This chapter applies to disclaimers of any interest in or power over property, whenever created.</content>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428), Sec. 15, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t13/c240/scA/s240.004">
<num value="240.004">Sec. 240.004.</num>
<heading>CHAPTER SUPPLEMENTED BY OTHER LAW</heading>
<subsection identifier="/us/tx/pr/t13/c240/scA/s240.004/a">
<num value="a">(a)</num>
<content>Unless displaced by a provision of this chapter, the principles of law and equity supplement this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scA/s240.004/b">
<num value="b">(b)</num>
<content>This chapter does not limit any right of a person to waive, release, disclaim, or renounce an interest in or power over property under a statute other than this chapter.</content>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428), Sec. 15, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t13/c240/scA/s240.005">
<num value="240.005">Sec. 240.005.</num>
<heading>UNIFORMITY OF APPLICATION AND CONSTRUCTION</heading>
<content>In applying and construing this chapter, consideration must be given to the need to promote uniformity of the law, with respect to the subject matter of this chapter, among states that enact a law based on the uniform act on which this chapter is based.</content>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428), Sec. 15, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t13/c240/scA/s240.006">
<num value="240.006">Sec. 240.006.</num>
<heading>POWER TO DISCLAIM BY PERSON OTHER THAN FIDUCIARY</heading>
<subsection identifier="/us/tx/pr/t13/c240/scA/s240.006/a">
<num value="a">(a)</num>
<content>A person other than a fiduciary may disclaim, in whole or in part, any interest in or power over property, including a power of appointment.</content>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scA/s240.006/b">
<num value="b">(b)</num>
<content>A person other than a fiduciary may disclaim an interest or power under this section even if the creator of the interest or power imposed a spendthrift provision or similar restriction on transfer or a restriction or limitation on the right to disclaim.</content>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428), Sec. 15, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t13/c240/scA/s240.007">
<num value="240.007">Sec. 240.007.</num>
<heading>POWER TO DISCLAIM POWER HELD IN FIDUCIARY CAPACITY BY PERSON DESIGNATED TO SERVE AS OR SERVING AS FIDUCIARY</heading>
<subsection identifier="/us/tx/pr/t13/c240/scA/s240.007/a">
<num value="a">(a)</num>
<content>Subject to Subsection (b) and except to the extent the person's right to disclaim is expressly restricted or limited by a law of this state or by the instrument creating the fiduciary relationship, a person designated to serve or serving as a fiduciary may disclaim, in whole or in part, any power over property, including a power of appointment and the power to disclaim, held in a fiduciary capacity.</content>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scA/s240.007/b">
<num value="b">(b)</num>
<chapeau>If a power being disclaimed under Subsection (a) by a person designated to serve or serving as a trustee affects the distributive rights of any beneficiary of the trust:</chapeau>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.007/1">
<num value="1">(1)</num>
<content>the person may disclaim only on or after accepting the trust;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.007/2">
<num value="2">(2)</num>
<content>the disclaimer must be compatible with the trustee's fiduciary obligations; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.007/3">
<num value="3">(3)</num>
<content>if the disclaimer is made on accepting the trust, the trustee is considered to have never possessed the power disclaimed.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scA/s240.007/c">
<num value="c">(c)</num>
<content>A person designated to serve or serving as a fiduciary may disclaim a power under this section even if the creator of the power imposed a spendthrift provision or similar restriction on transfer.</content>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428), Sec. 15, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t13/c240/scA/s240.008">
<num value="240.008">Sec. 240.008.</num>
<heading>POWER TO DISCLAIM BY FIDUCIARY ACTING IN FIDUCIARY CAPACITY</heading>
<subsection identifier="/us/tx/pr/t13/c240/scA/s240.008/a">
<num value="a">(a)</num>
<chapeau>Subject to this section and except to the extent the fiduciary's right to disclaim is expressly restricted or limited by a law of this state or by the instrument creating the fiduciary relationship, a fiduciary acting in a fiduciary capacity may disclaim, in whole or in part, any interest in or power over property, including a power of appointment and the power to disclaim, that would have passed to the ward, estate, trust, or principal with respect to which the fiduciary was acting had the disclaimer not been made even if:</chapeau>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.008/1">
<num value="1">(1)</num>
<content>the creator of the interest or power imposed a spendthrift provision or similar restriction on transfer or a restriction or limitation on the right to disclaim; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.008/2">
<num value="2">(2)</num>
<content>an instrument other than the instrument that created the fiduciary relationship imposed a restriction or limitation on the right to disclaim.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scA/s240.008/b">
<num value="b">(b)</num>
<content>Except as provided by Subsection (c), (d), or (f), a disclaimer by a fiduciary acting in a fiduciary capacity does not require court approval to be effective unless the instrument that created the fiduciary relationship requires court approval.</content>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scA/s240.008/c">
<num value="c">(c)</num>
<chapeau>Except as provided by Subsection (c-1), the following disclaimers by a fiduciary acting in a fiduciary capacity are not effective unless approved by a court of competent jurisdiction:</chapeau>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.008/1">
<num value="1">(1)</num>
<content>a disclaimer by a personal representative who is not an independent administrator or independent executor;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.008/2">
<num value="2">(2)</num>
<content>a disclaimer by the trustee of a management trust created under Chapter 1301, Estates Code;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.008/3">
<num value="3">(3)</num>
<content>a disclaimer by the trustee of a trust created under Section 142.005; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.008/4">
<num value="4">(4)</num>
<content>a disclaimer that would result in an interest in or power over property passing to the person making the disclaimer.</content>
<continuation>(c-1) A disclaimer described by Subsection (c)(4) does not require court approval if the disclaimer is authorized under Subtitle P, Title 2, Estates Code.</continuation>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scA/s240.008/d">
<num value="d">(d)</num>
<chapeau>A trustee acting in a fiduciary capacity may not disclaim an interest in property that would cause the interest in property not to become trust property unless:</chapeau>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.008/1">
<num value="1">(1)</num>
<content>a court of competent jurisdiction approves the disclaimer; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.008/2">
<num value="2">(2)</num>
<content>the trustee provides written notice of the disclaimer in accordance with Section 240.0081.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scA/s240.008/e">
<num value="e">(e)</num>
<content>In the absence of a court-appointed guardian, without court approval, a natural guardian as described by Section 1104.051, Estates Code, may disclaim on behalf of a minor child of the natural guardian, in whole or in part, any interest in or power over property, including a power of appointment, that the minor child is to receive solely as a result of another disclaimer, but only if the disclaimed interest or power does not pass to or for the benefit of the natural guardian as a result of the disclaimer.</content>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scA/s240.008/f">
<num value="f">(f)</num>
<content>Unless a court of competent jurisdiction approves the disclaimer, a disclaimer by a fiduciary acting in a fiduciary capacity must be compatible with the fiduciary's fiduciary obligations. A disclaimer by a fiduciary acting in a fiduciary capacity is not a per se breach of the fiduciary's fiduciary obligations.</content>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scA/s240.008/g">
<num value="g">(g)</num>
<content>Possible remedies for a breach of fiduciary obligations do not include declaring an otherwise effective disclaimer void or granting other legal or equitable relief that would make the disclaimer ineffective.</content>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428), Sec. 15, eff. September 1, 2015.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 210 (S.B. 1650), Sec. 7, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t13/c240/scA/s240.0081">
<num value="240.0081">Sec. 240.0081.</num>
<heading>NOTICE REQUIRED BY TRUSTEE DISCLAIMING CERTAIN INTERESTS IN PROPERTY; EFFECT OF NOTICE</heading>
<subsection identifier="/us/tx/pr/t13/c240/scA/s240.0081/a">
<num value="a">(a)</num>
<content>A trustee acting in a fiduciary capacity may disclaim an interest in property that would cause the interest in property not to become trust property without court approval if the trustee provides written notice of the disclaimer to all of the current beneficiaries and presumptive remainder beneficiaries of the trust.</content>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scA/s240.0081/b">
<num value="b">(b)</num>
<content>For the purpose of determining who is a current beneficiary or presumptive remainder beneficiary entitled to the notice under Subsection (a), a beneficiary is determined as of the date the notice is sent.</content>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scA/s240.0081/c">
<num value="c">(c)</num>
<chapeau>Except as provided by Subsection (e-1), in addition to the notice required under Subsection (a), the trustee shall give written notice of the trustee's disclaimer to the attorney general if:</chapeau>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.0081/1">
<num value="1">(1)</num>
<content>a charity is entitled to notice;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.0081/2">
<num value="2">(2)</num>
<content>a charity entitled to notice is no longer in existence;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.0081/3">
<num value="3">(3)</num>
<content>the trustee has the authority to distribute trust assets to one or more charities that are not named in the trust instrument; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.0081/4">
<num value="4">(4)</num>
<content>the trustee has the authority to make distributions for a charitable purpose described in the trust instrument, but no charity is named as a beneficiary for that purpose.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scA/s240.0081/d">
<num value="d">(d)</num>
<content>If the beneficiary has a court-appointed guardian or conservator, the notice required to be given by this section must be given to that guardian or conservator. If the beneficiary is a minor for whom no guardian or conservator has been appointed, the notice required to be given by this section must be given to a parent of the minor.</content>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scA/s240.0081/e">
<num value="e">(e)</num>
<chapeau>The trustee is not required to provide the notice to a beneficiary who:</chapeau>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.0081/1">
<num value="1">(1)</num>
<content>is known to the trustee and cannot be located by the trustee after reasonable diligence;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.0081/2">
<num value="2">(2)</num>
<content>is not known to the trustee;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.0081/3">
<num value="3">(3)</num>
<content>waives the requirement of the notice under this section; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.0081/4">
<num value="4">(4)</num>
<content>is a descendant of a beneficiary to whom the trustee has given notice if the beneficiary and the beneficiary's ancestor have similar interests in the trust and no apparent conflict of interest exists between them.</content>
<continuation>(e-1) The trustee is not required to give notice to the attorney general under Subsection (c) if the attorney general waives that requirement in writing.</continuation>
<continuation>(e-2) For purposes of Subsection (e)(3), a beneficiary is considered to have waived the requirement that notice be given under this section if a person to whom notice is required to be given with respect to that beneficiary under Subsection (d) waives the requirement that notice be given under this section.</continuation>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scA/s240.0081/f">
<num value="f">(f)</num>
<chapeau>The notice required under Subsection (a) must:</chapeau>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.0081/1">
<num value="1">(1)</num>
<chapeau>include a statement that:</chapeau>
<subparagraph identifier="/us/tx/pr/t13/c240/scA/s240.0081/A">
<num value="A">(A)</num>
<content>the trustee intends to disclaim an interest in property;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t13/c240/scA/s240.0081/B">
<num value="B">(B)</num>
<content>if the trustee makes the disclaimer, the property will not become trust property and will not be available to distribute to the beneficiary from the trust;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t13/c240/scA/s240.0081/C">
<num value="C">(C)</num>
<content>the beneficiary has the right to object to the disclaimer; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t13/c240/scA/s240.0081/D">
<num value="D">(D)</num>
<content>the beneficiary may petition a court to approve, modify, or deny the disclaimer;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.0081/2">
<num value="2">(2)</num>
<content>describe the interest in property the trustee intends to disclaim;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.0081/3">
<num value="3">(3)</num>
<content>specify the earliest date the trustee intends to make the disclaimer;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.0081/4">
<num value="4">(4)</num>
<content>include the name and mailing address of the trustee;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.0081/5">
<num value="5">(5)</num>
<content>be given not later than the 30th day before the date the disclaimer is made; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.0081/6">
<num value="6">(6)</num>
<content>be sent by personal delivery, first-class mail, facsimile, e-mail, or any other method likely to result in the notice's receipt.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scA/s240.0081/g">
<num value="g">(g)</num>
<content>A beneficiary is not considered to have accepted the disclaimed interest solely because the beneficiary acts or does not act on receipt of a notice provided under this section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scA/s240.0081/h">
<num value="h">(h)</num>
<content>If the trustee makes the disclaimer for which notice is provided under this section, the beneficiary does not lose the beneficiary's right, if any, to sue the trustee for breach of the trustee's fiduciary obligations in connection with making the disclaimer. Section 240.008(g) applies to remedies sought in connection with the alleged breach.</content>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428), Sec. 15, eff. September 1, 2015.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 62 (S.B. 617), Sec. 16, eff. September 1, 2017.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t13/c240/scA/s240.009">
<num value="240.009">Sec. 240.009.</num>
<heading>POWER TO DISCLAIM; GENERAL REQUIREMENTS; WHEN IRREVOCABLE</heading>
<subsection identifier="/us/tx/pr/t13/c240/scA/s240.009/a">
<num value="a">(a)</num>
<chapeau>To be effective, a disclaimer must:</chapeau>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.009/1">
<num value="1">(1)</num>
<content>be in writing;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.009/2">
<num value="2">(2)</num>
<content>declare the disclaimer;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.009/3">
<num value="3">(3)</num>
<content>describe the interest or power disclaimed;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.009/4">
<num value="4">(4)</num>
<content>be signed by the person making the disclaimer; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.009/5">
<num value="5">(5)</num>
<content>be delivered or filed in the manner provided by Subchapter C.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scA/s240.009/b">
<num value="b">(b)</num>
<content>A partial disclaimer may be expressed as a fraction, percentage, monetary amount, term of years, limitation of a power, or any other interest or estate in the property.</content>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scA/s240.009/c">
<num value="c">(c)</num>
<chapeau>A disclaimer is irrevocable on the later of the date the disclaimer:</chapeau>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.009/1">
<num value="1">(1)</num>
<content>is delivered or filed under Subchapter C; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scA/s240.009/2">
<num value="2">(2)</num>
<content>takes effect as provided in Sections 240.051-240.056.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scA/s240.009/d">
<num value="d">(d)</num>
<content>A disclaimer made under this chapter is not a transfer, assignment, or release.</content>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scA/s240.009/e">
<num value="e">(e)</num>
<content>A disclaimer of an interest in property made by an individual must contain a statement under penalty of perjury regarding whether the disclaimant is a child support obligor whose disclaimer is barred under Section 240.151(g). An individual's failure to include the statement does not invalidate a disclaimer if the disclaimer is not barred under Section 240.151(g).</content>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428), Sec. 15, eff. September 1, 2015.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 552 (S.B. 286), Sec. 11, eff. September 1, 2021.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t13/c240/scB">
<num value="B">SUBCHAPTER B.</num>
<heading>TYPE AND EFFECT OF DISCLAIMER</heading>
<section identifier="/us/tx/pr/t13/c240/scB/s240.0501">
<num value="240.0501">Sec. 240.0501.</num>
<heading>DEFINITION</heading>
<chapeau>In this subchapter, "future interest" means an interest that:</chapeau>
<paragraph identifier="/us/tx/pr/t13/c240/scB/s240.0501/1">
<num value="1">(1)</num>
<content>takes effect in possession or enjoyment, if at all, later than the time at which the instrument creating the interest becomes irrevocable; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scB/s240.0501/2">
<num value="2">(2)</num>
<content>passes to the holder of the interest at the time of the event that causes the taker of the interest to be finally ascertained and the interest to be indefeasibly vested.</content>
</paragraph>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428), Sec. 15, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t13/c240/scB/s240.051">
<num value="240.051">Sec. 240.051.</num>
<heading>DISCLAIMER OF INTEREST IN PROPERTY</heading>
<subsection identifier="/us/tx/pr/t13/c240/scB/s240.051/a">
<num value="a">(a)</num>
<content>This section and Sections 240.0511 and 240.0512 apply to a disclaimer of an interest in property other than a disclaimer subject to Section 240.052 or 240.053.</content>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scB/s240.051/b">
<num value="b">(b)</num>
<chapeau>If an interest in property passes because of the death of a decedent:</chapeau>
<paragraph identifier="/us/tx/pr/t13/c240/scB/s240.051/1">
<num value="1">(1)</num>
<chapeau>a disclaimer of the interest:</chapeau>
<subparagraph identifier="/us/tx/pr/t13/c240/scB/s240.051/A">
<num value="A">(A)</num>
<content>takes effect as of the time of the decedent's death; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t13/c240/scB/s240.051/B">
<num value="B">(B)</num>
<content>relates back for all purposes to the time of the decedent's death; and</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scB/s240.051/2">
<num value="2">(2)</num>
<content>the disclaimed interest is not subject to the claims of any creditor of the disclaimant.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scB/s240.051/c">
<num value="c">(c)</num>
<chapeau>If an interest in property passes because of an event not related to the death of a decedent:</chapeau>
<paragraph identifier="/us/tx/pr/t13/c240/scB/s240.051/1">
<num value="1">(1)</num>
<chapeau>a disclaimer of the interest:</chapeau>
<subparagraph identifier="/us/tx/pr/t13/c240/scB/s240.051/A">
<num value="A">(A)</num>
<content>takes effect:</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scB/s240.051/i">
<num value="i">(i)</num>
<chapeau>as of the time the instrument creating the interest became irrevocable; or</chapeau>
<clause identifier="/us/tx/pr/t13/c240/scB/s240.051/ii">
<num value="ii">(ii)</num>
<content>in the case of an irrevocable transfer made without an instrument, at the time of the irrevocable transfer; and</content>
</clause>
<subparagraph identifier="/us/tx/pr/t13/c240/scB/s240.051/B">
<num value="B">(B)</num>
<content>relates back for all purposes to the time the instrument became irrevocable or the time of the irrevocable transfer, as applicable; and</content>
</subparagraph>
<paragraph identifier="/us/tx/pr/t13/c240/scB/s240.051/2">
<num value="2">(2)</num>
<content>the disclaimed interest is not subject to the claims of any creditor of the disclaimant.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scB/s240.051/d">
<num value="d">(d)</num>
<chapeau>A disclaimed interest passes according to any provision in the instrument creating the interest that provides for:</chapeau>
<paragraph identifier="/us/tx/pr/t13/c240/scB/s240.051/1">
<num value="1">(1)</num>
<content>the disposition of the interest if the interest were to be disclaimed; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scB/s240.051/2">
<num value="2">(2)</num>
<content>the disposition of disclaimed interests in general.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scB/s240.051/e">
<num value="e">(e)</num>
<chapeau>If the instrument creating the disclaimed interest does not contain a provision described by Subsection (d) and:</chapeau>
<paragraph identifier="/us/tx/pr/t13/c240/scB/s240.051/1">
<num value="1">(1)</num>
<content>if the disclaimant is not an individual, the disclaimed interest passes as if the disclaimant did not exist; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scB/s240.051/2">
<num value="2">(2)</num>
<chapeau>if the disclaimant is an individual:</chapeau>
<subparagraph identifier="/us/tx/pr/t13/c240/scB/s240.051/A">
<num value="A">(A)</num>
<content>except as provided by Section 240.0511, if the interest is passing because of the death of a decedent, the disclaimed interest passes as if the disclaimant had died immediately before the time as of which the disclaimer takes effect under Subsection (b); or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t13/c240/scB/s240.051/B">
<num value="B">(B)</num>
<content>except as provided by Section 240.0512, if the interest is passing because of an event not related to the death of a decedent, the disclaimed interest passes as if the disclaimant had died immediately before the time as of which the disclaimer takes effect under Subsection (c).</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scB/s240.051/f">
<num value="f">(f)</num>
<content>A disclaimed interest that passes by intestacy passes as if the disclaimant died immediately before the decedent.</content>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428), Sec. 15, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t13/c240/scB/s240.0511">
<num value="240.0511">Sec. 240.0511.</num>
<heading>DISPOSITION OF INTEREST PASSING BECAUSE OF DECEDENT'S DEATH AND DISCLAIMED BY INDIVIDUAL</heading>
<subsection identifier="/us/tx/pr/t13/c240/scB/s240.0511/a">
<num value="a">(a)</num>
<chapeau>Subject to Subsection (b):</chapeau>
<paragraph identifier="/us/tx/pr/t13/c240/scB/s240.0511/1">
<num value="1">(1)</num>
<content>if by law or under the instrument creating the disclaimed interest the descendants of a disclaimant of an interest passing because of the death of a decedent would share in the disclaimed interest by any method of representation under Section 240.051(e)(2)(A), the disclaimed interest passes only to the descendants of the disclaimant who survive the decedent; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scB/s240.0511/2">
<num value="2">(2)</num>
<content>if the disclaimed interest would have passed to the disclaimant's estate under Section 240.051(e)(2)(A), the disclaimed interest instead passes by representation to the descendants of the disclaimant who survive the decedent.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scB/s240.0511/b">
<num value="b">(b)</num>
<content>If no descendant of the disclaimant survives the decedent, the disclaimed interest passes to those persons, including the state but excluding the disclaimant, and in such shares as would succeed to the transferor's intestate estate under the intestate succession law of the transferor's domicile had the transferor died immediately before the decedent, except that if the transferor's surviving spouse is living but remarried before the decedent's death, the transferor is considered to have died unmarried immediately before the decedent's death.</content>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scB/s240.0511/c">
<num value="c">(c)</num>
<content>On the disclaimer of a preceding interest, a future interest held by a person other than the disclaimant takes effect as if the disclaimant had died immediately before the decedent, but a future interest held by the disclaimant is not accelerated in possession or enjoyment.</content>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428), Sec. 15, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t13/c240/scB/s240.0512">
<num value="240.0512">Sec. 240.0512.</num>
<heading>DISPOSITION OF INTEREST PASSING BECAUSE OF EVENT OTHER THAN DECEDENT'S DEATH AND DISCLAIMED BY INDIVIDUAL</heading>
<subsection identifier="/us/tx/pr/t13/c240/scB/s240.0512/a">
<num value="a">(a)</num>
<chapeau>Subject to Subsection (b):</chapeau>
<paragraph identifier="/us/tx/pr/t13/c240/scB/s240.0512/1">
<num value="1">(1)</num>
<content>if by law or under the instrument creating the disclaimed interest the descendants of a disclaimant of an interest passing because of an event not related to the death of a decedent would share in the disclaimed interest by any method of representation under Section 240.051(e)(2)(B), the disclaimed interest passes only to the descendants of the disclaimant living at the time of the event that causes the interest to pass; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scB/s240.0512/2">
<num value="2">(2)</num>
<content>if the disclaimed interest would have passed to the disclaimant's estate under Section 240.051(e)(2)(B), the disclaimed interest instead passes by representation to the descendants of the disclaimant living at the time of the event that causes the interest to pass.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scB/s240.0512/b">
<num value="b">(b)</num>
<content>If no descendant of the disclaimant is living at the time of the event described by Subsection (a)(1), the disclaimed interest passes to those persons, including the state but excluding the disclaimant, and in such shares as would succeed to the transferor's intestate estate under the intestate succession law of the transferor's domicile had the transferor died immediately before the event described by Subsection (a)(1), except that if the transferor's surviving spouse is living but remarried before the event, the transferor is considered to have died unmarried immediately before the event.</content>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scB/s240.0512/c">
<num value="c">(c)</num>
<content>On the disclaimer of a preceding interest, a future interest held by a person other than the disclaimant takes effect as if the disclaimant had died immediately before the time the disclaimer takes effect under Section 240.051(c)(1)(A), but a future interest held by the disclaimant is not accelerated in possession or enjoyment.</content>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428), Sec. 15, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t13/c240/scB/s240.052">
<num value="240.052">Sec. 240.052.</num>
<heading>DISCLAIMER OF RIGHTS IN SURVIVORSHIP PROPERTY</heading>
<subsection identifier="/us/tx/pr/t13/c240/scB/s240.052/a">
<num value="a">(a)</num>
<content>On the death of a holder of survivorship property, a surviving holder may disclaim, in whole or in part, an interest in the property of the deceased holder that would have otherwise passed to the surviving holder by reason of the deceased holder's death.</content>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scB/s240.052/b">
<num value="b">(b)</num>
<chapeau>If an interest in survivorship property is disclaimed by a surviving holder of the property:</chapeau>
<paragraph identifier="/us/tx/pr/t13/c240/scB/s240.052/1">
<num value="1">(1)</num>
<chapeau>the disclaimer:</chapeau>
<subparagraph identifier="/us/tx/pr/t13/c240/scB/s240.052/A">
<num value="A">(A)</num>
<content>takes effect as of the time of the deceased holder's death; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t13/c240/scB/s240.052/B">
<num value="B">(B)</num>
<content>relates back for all purposes to the time of the deceased holder's death; and</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scB/s240.052/2">
<num value="2">(2)</num>
<content>the disclaimed interest is not subject to the claims of any creditor of the disclaimant.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scB/s240.052/c">
<num value="c">(c)</num>
<content>An interest in survivorship property disclaimed by a surviving holder of the property passes as if the disclaimant predeceased the holder to whose death the disclaimer relates.</content>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428), Sec. 15, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t13/c240/scB/s240.053">
<num value="240.053">Sec. 240.053.</num>
<heading>DISCLAIMER OF INTEREST BY TRUSTEE</heading>
<subsection identifier="/us/tx/pr/t13/c240/scB/s240.053/a">
<num value="a">(a)</num>
<chapeau>If a trustee disclaims an interest in property that otherwise would have become trust property:</chapeau>
<paragraph identifier="/us/tx/pr/t13/c240/scB/s240.053/1">
<num value="1">(1)</num>
<content>the interest does not become trust property;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scB/s240.053/2">
<num value="2">(2)</num>
<chapeau>the disclaimer:</chapeau>
<subparagraph identifier="/us/tx/pr/t13/c240/scB/s240.053/A">
<num value="A">(A)</num>
<content>takes effect as of the time the trust became irrevocable; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t13/c240/scB/s240.053/B">
<num value="B">(B)</num>
<content>relates back for all purposes to the time the trust became irrevocable; and</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scB/s240.053/3">
<num value="3">(3)</num>
<content>the disclaimed interest is not subject to the claims of any creditor of the trustee, the trust, or any trust beneficiary.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scB/s240.053/b">
<num value="b">(b)</num>
<content>If the instrument creating the disclaimed interest contains a provision that provides for the disposition of the interest if the interest were to be disclaimed, the disclaimed interest passes according to that provision.</content>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scB/s240.053/c">
<num value="c">(c)</num>
<chapeau>If the instrument creating the disclaimed interest does not contain a provision described by Subsection (b), the disclaimed interest passes as if:</chapeau>
<paragraph identifier="/us/tx/pr/t13/c240/scB/s240.053/1">
<num value="1">(1)</num>
<content>all of the current beneficiaries, presumptive remainder beneficiaries, and contingent beneficiaries of the trust affected by the disclaimer who are individuals died before the trust became irrevocable; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scB/s240.053/2">
<num value="2">(2)</num>
<content>all beneficiaries of the trust affected by the disclaimer who are not individuals ceased to exist without successor organizations and without substitution of beneficiaries under the cy pres doctrine before the trust became irrevocable.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scB/s240.053/d">
<num value="d">(d)</num>
<content>Subsection (c) applies only for purposes of determining the disposition of an interest in property disclaimed by a trustee that otherwise would have become trust property and applies only with respect to the trust affected by the disclaimer. Subsection (c) does not apply with respect to other trusts governed by the instrument and does not apply for other purposes under the instrument or under the laws of intestacy.</content>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428), Sec. 15, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t13/c240/scB/s240.054">
<num value="240.054">Sec. 240.054.</num>
<heading>DISCLAIMER OF POWER OF APPOINTMENT OR OTHER POWER NOT HELD IN FIDUCIARY CAPACITY</heading>
<subsection identifier="/us/tx/pr/t13/c240/scB/s240.054/a">
<num value="a">(a)</num>
<content>If a holder disclaims a power of appointment or other power not held in a fiduciary capacity, this section applies.</content>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scB/s240.054/b">
<num value="b">(b)</num>
<chapeau>If the holder:</chapeau>
<paragraph identifier="/us/tx/pr/t13/c240/scB/s240.054/1">
<num value="1">(1)</num>
<content>has not exercised the power, the disclaimer takes effect as of the time the instrument creating the power becomes irrevocable; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scB/s240.054/2">
<num value="2">(2)</num>
<content>has exercised the power and the disclaimer is of a power other than a presently exercisable general power of appointment, the disclaimer takes effect immediately after the last exercise of the power.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scB/s240.054/c">
<num value="c">(c)</num>
<content>The instrument creating the power is construed as if the power had expired when the disclaimer became effective.</content>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428), Sec. 15, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t13/c240/scB/s240.055">
<num value="240.055">Sec. 240.055.</num>
<heading>DISCLAIMER BY APPOINTEE OF, OR OBJECT OR TAKER IN DEFAULT OF EXERCISE OF, POWER OF APPOINTMENT</heading>
<subsection identifier="/us/tx/pr/t13/c240/scB/s240.055/a">
<num value="a">(a)</num>
<content>A disclaimer of an interest in property by an appointee of a power of appointment takes effect as of the time the instrument by which the holder exercises the power becomes irrevocable.</content>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scB/s240.055/b">
<num value="b">(b)</num>
<content>A disclaimer of an interest in property by an object or taker in default of an exercise of a power of appointment takes effect as of the time the instrument creating the power becomes irrevocable.</content>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428), Sec. 15, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t13/c240/scB/s240.056">
<num value="240.056">Sec. 240.056.</num>
<heading>DISCLAIMER OF POWER HELD IN FIDUCIARY CAPACITY</heading>
<subsection identifier="/us/tx/pr/t13/c240/scB/s240.056/a">
<num value="a">(a)</num>
<content>If a person designated to serve or serving as a fiduciary disclaims a power held or to be held in a fiduciary capacity that has not been exercised, the disclaimer takes effect as of the time the instrument creating the power becomes irrevocable.</content>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scB/s240.056/b">
<num value="b">(b)</num>
<content>If a person designated to serve or serving as a fiduciary disclaims a power held or to be held in a fiduciary capacity that has been exercised, the disclaimer takes effect immediately after the last exercise of the power.</content>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scB/s240.056/c">
<num value="c">(c)</num>
<chapeau>A disclaimer subject to this section is effective as to another person designated to serve or serving as a fiduciary if:</chapeau>
<paragraph identifier="/us/tx/pr/t13/c240/scB/s240.056/1">
<num value="1">(1)</num>
<content>the disclaimer provides that it is effective as to another person designated to serve or serving as a fiduciary; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scB/s240.056/2">
<num value="2">(2)</num>
<content>the person disclaiming has the authority to bind the estate, trust, or other person for whom the person is acting.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428), Sec. 15, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t13/c240/scB/s240.057">
<num value="240.057">Sec. 240.057.</num>
<heading>TAX QUALIFIED DISCLAIMER</heading>
<subsection identifier="/us/tx/pr/t13/c240/scB/s240.057/a">
<num value="a">(a)</num>
<content>In this section, "Internal Revenue Code" has the meaning assigned by Section 111.004.</content>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scB/s240.057/b">
<num value="b">(b)</num>
<content>Notwithstanding any other provision of this chapter, if, as a result of a disclaimer or transfer, the disclaimed or transferred interest is treated under the Internal Revenue Code as never having been transferred to the disclaimant, the disclaimer or transfer is effective as a disclaimer under this chapter.</content>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428), Sec. 15, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t13/c240/scB/s240.058">
<num value="240.058">Sec. 240.058.</num>
<heading>PARTIAL DISCLAIMER BY SPOUSE</heading>
<content>A disclaimer by a decedent's surviving spouse of an interest in property transferred as the result of the death of the decedent is not a disclaimer by the surviving spouse of any other transfer from the decedent to or for the benefit of the surviving spouse, regardless of whether the interest that would have passed under the disclaimed transfer passes because of the disclaimer to or for the benefit of the surviving spouse by the other transfer.</content>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428), Sec. 15, eff. September 1, 2015.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t13/c240/scC">
<num value="C">SUBCHAPTER C.</num>
<heading>DELIVERY OR FILING</heading>
<section identifier="/us/tx/pr/t13/c240/scC/s240.101">
<num value="240.101">Sec. 240.101.</num>
<heading>DELIVERY OR FILING GENERALLY</heading>
<subsection identifier="/us/tx/pr/t13/c240/scC/s240.101/a">
<num value="a">(a)</num>
<content>Subject to applicable requirements of this subchapter, a disclaimant may deliver a disclaimer by personal delivery, first-class mail, facsimile, e-mail, or any other method likely to result in the disclaimer's receipt.</content>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scC/s240.101/b">
<num value="b">(b)</num>
<content>If a disclaimer is mailed to the intended recipient by certified mail, return receipt requested, at an address the disclaimant in good faith believes is likely to result in the disclaimer's receipt, delivery is considered to have occurred on the date of mailing regardless of receipt.</content>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428), Sec. 15, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t13/c240/scC/s240.102">
<num value="240.102">Sec. 240.102.</num>
<heading>DISCLAIMER OF INTEREST CREATED UNDER INTESTATE SUCCESSION OR WILL</heading>
<chapeau>In the case of an interest created under the law of intestate succession or an interest created by will, other than an interest in a testamentary trust:</chapeau>
<paragraph identifier="/us/tx/pr/t13/c240/scC/s240.102/1">
<num value="1">(1)</num>
<content>a disclaimer must be delivered to the personal representative of the decedent's estate; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scC/s240.102/2">
<num value="2">(2)</num>
<chapeau>if no personal representative is then serving, a disclaimer must be filed in the official public records of any county in which the decedent:</chapeau>
<subparagraph identifier="/us/tx/pr/t13/c240/scC/s240.102/A">
<num value="A">(A)</num>
<content>was domiciled on the date of the decedent's death; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t13/c240/scC/s240.102/B">
<num value="B">(B)</num>
<content>owned real property.</content>
</subparagraph>
</paragraph>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428), Sec. 15, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t13/c240/scC/s240.103">
<num value="240.103">Sec. 240.103.</num>
<heading>DISCLAIMER OF INTEREST IN TESTAMENTARY TRUST</heading>
<chapeau>In the case of an interest in a testamentary trust:</chapeau>
<paragraph identifier="/us/tx/pr/t13/c240/scC/s240.103/1">
<num value="1">(1)</num>
<content>a disclaimer must be delivered to the trustee then serving;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scC/s240.103/2">
<num value="2">(2)</num>
<content>if no trustee is then serving, a disclaimer must be delivered to the personal representative of the decedent's estate; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scC/s240.103/3">
<num value="3">(3)</num>
<chapeau>if no trustee or personal representative is then serving, a disclaimer must be filed in the official public records of any county in which the decedent:</chapeau>
<subparagraph identifier="/us/tx/pr/t13/c240/scC/s240.103/A">
<num value="A">(A)</num>
<content>was domiciled on the date of the decedent's death; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t13/c240/scC/s240.103/B">
<num value="B">(B)</num>
<content>owned real property.</content>
</subparagraph>
</paragraph>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428), Sec. 15, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t13/c240/scC/s240.104">
<num value="240.104">Sec. 240.104.</num>
<heading>DISCLAIMER OF INTEREST IN INTER VIVOS TRUST</heading>
<chapeau>In the case of an interest in an inter vivos trust:</chapeau>
<paragraph identifier="/us/tx/pr/t13/c240/scC/s240.104/1">
<num value="1">(1)</num>
<chapeau>a disclaimer must be delivered to the trustee then serving, or, if no trustee is then serving, a disclaimer must be filed:</chapeau>
<subparagraph identifier="/us/tx/pr/t13/c240/scC/s240.104/A">
<num value="A">(A)</num>
<content>with a court having jurisdiction to enforce the trust; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t13/c240/scC/s240.104/B">
<num value="B">(B)</num>
<content>in the official public records of the county in which:</content>
</subparagraph>
</paragraph>
<subsection identifier="/us/tx/pr/t13/c240/scC/s240.104/i">
<num value="i">(i)</num>
<chapeau>the situs of administration of the trust is maintained; or</chapeau>
<clause identifier="/us/tx/pr/t13/c240/scC/s240.104/ii">
<num value="ii">(ii)</num>
<content>the settlor is domiciled or was domiciled on the date of the settlor's death; and</content>
</clause>
<paragraph identifier="/us/tx/pr/t13/c240/scC/s240.104/2">
<num value="2">(2)</num>
<content>if a disclaimer is made before the time the instrument creating the trust becomes irrevocable, a disclaimer must be delivered to the settlor of a revocable trust or the transferor of the interest.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428), Sec. 15, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t13/c240/scC/s240.105">
<num value="240.105">Sec. 240.105.</num>
<heading>DISCLAIMER OF INTEREST CREATED BY BENEFICIARY DESIGNATION</heading>
<subsection identifier="/us/tx/pr/t13/c240/scC/s240.105/a">
<num value="a">(a)</num>
<chapeau>In this section, "beneficiary designation" means an instrument, other than an instrument creating a trust, naming the beneficiary of:</chapeau>
<paragraph identifier="/us/tx/pr/t13/c240/scC/s240.105/1">
<num value="1">(1)</num>
<content>an annuity or insurance policy;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scC/s240.105/2">
<num value="2">(2)</num>
<content>an account with a designation for payment on death;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scC/s240.105/3">
<num value="3">(3)</num>
<content>a security registered in beneficiary form;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scC/s240.105/4">
<num value="4">(4)</num>
<content>a pension, profit-sharing, retirement, or other employment-related benefit plan; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scC/s240.105/5">
<num value="5">(5)</num>
<content>any other nonprobate transfer at death.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scC/s240.105/b">
<num value="b">(b)</num>
<content>In the case of an interest created by a beneficiary designation that is disclaimed before the designation becomes irrevocable, the disclaimer must be delivered to the person making the beneficiary designation.</content>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scC/s240.105/c">
<num value="c">(c)</num>
<chapeau>In the case of an interest created by a beneficiary designation that is disclaimed after the designation becomes irrevocable:</chapeau>
<paragraph identifier="/us/tx/pr/t13/c240/scC/s240.105/1">
<num value="1">(1)</num>
<content>a disclaimer of an interest in personal property must be delivered to the person obligated to distribute the interest; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scC/s240.105/2">
<num value="2">(2)</num>
<content>a disclaimer of an interest in real property must be recorded in the official public records of the county where the real property that is the subject of the disclaimer is located.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428), Sec. 15, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t13/c240/scC/s240.106">
<num value="240.106">Sec. 240.106.</num>
<heading>DISCLAIMER BY SURVIVING HOLDER OF SURVIVORSHIP PROPERTY</heading>
<content>In the case of a disclaimer by a surviving holder of survivorship property, the disclaimer must be delivered to the person to whom the disclaimed interest passes.</content>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428), Sec. 15, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t13/c240/scC/s240.107">
<num value="240.107">Sec. 240.107.</num>
<heading>DISCLAIMER BY OBJECT OR TAKER IN DEFAULT OF EXERCISE OF POWER OF APPOINTMENT</heading>
<chapeau>In the case of a disclaimer by an object or taker in default of an exercise of a power of appointment at any time after the power was created:</chapeau>
<paragraph identifier="/us/tx/pr/t13/c240/scC/s240.107/1">
<num value="1">(1)</num>
<content>the disclaimer must be delivered to the holder of the power or to the fiduciary acting under the instrument that created the power; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scC/s240.107/2">
<num value="2">(2)</num>
<chapeau>if no fiduciary is then serving, the disclaimer must be filed:</chapeau>
<subparagraph identifier="/us/tx/pr/t13/c240/scC/s240.107/A">
<num value="A">(A)</num>
<content>with a court having authority to appoint the fiduciary; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t13/c240/scC/s240.107/B">
<num value="B">(B)</num>
<content>in the official public records of the county in which the creator of the power is domiciled or was domiciled on the date of the creator's death.</content>
</subparagraph>
</paragraph>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428), Sec. 15, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t13/c240/scC/s240.108">
<num value="240.108">Sec. 240.108.</num>
<heading>DISCLAIMER BY CERTAIN APPOINTEES</heading>
<chapeau>In the case of a disclaimer by an appointee of a nonfiduciary power of appointment:</chapeau>
<paragraph identifier="/us/tx/pr/t13/c240/scC/s240.108/1">
<num value="1">(1)</num>
<content>the disclaimer must be delivered to the holder, the personal representative of the holder's estate, or the fiduciary under the instrument that created the power; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scC/s240.108/2">
<num value="2">(2)</num>
<chapeau>if no fiduciary is then serving, the disclaimer must be filed:</chapeau>
<subparagraph identifier="/us/tx/pr/t13/c240/scC/s240.108/A">
<num value="A">(A)</num>
<content>with a court having authority to appoint the fiduciary; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t13/c240/scC/s240.108/B">
<num value="B">(B)</num>
<content>in the official public records of the county in which the creator of the power is domiciled or was domiciled on the date of the creator's death.</content>
</subparagraph>
</paragraph>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428), Sec. 15, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t13/c240/scC/s240.109">
<num value="240.109">Sec. 240.109.</num>
<heading>DISCLAIMER BY CERTAIN FIDUCIARIES</heading>
<content>In the case of a disclaimer by a fiduciary of a power over a trust or estate, the disclaimer must be delivered as provided by Section 240.102, 240.103, or 240.104 as if the power disclaimed were an interest in property.</content>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428), Sec. 15, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t13/c240/scC/s240.110">
<num value="240.110">Sec. 240.110.</num>
<heading>DISCLAIMER OF POWER BY AGENT</heading>
<content>In the case of a disclaimer of a power by an agent, the disclaimer must be delivered to the principal or the principal's representative.</content>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428), Sec. 15, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t13/c240/scC/s240.111">
<num value="240.111">Sec. 240.111.</num>
<heading>RECORDING OF DISCLAIMER</heading>
<content>If an instrument transferring an interest in or power over property subject to a disclaimer is required or authorized by law to be filed, recorded, or registered, the disclaimer may be filed, recorded, or registered as that instrument. Except as otherwise provided by Section 240.105(c)(2), failure to file, record, or register the disclaimer does not affect the disclaimer's validity between the disclaimant and persons to whom the property interest or power passes by reason of the disclaimer.</content>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428), Sec. 15, eff. September 1, 2015.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t13/c240/scD">
<num value="D">SUBCHAPTER D.</num>
<heading>DISCLAIMER BARRED OR LIMITED</heading>
<section identifier="/us/tx/pr/t13/c240/scD/s240.151">
<num value="240.151">Sec. 240.151.</num>
<heading>WHEN DISCLAIMER BARRED OR LIMITED</heading>
<subsection identifier="/us/tx/pr/t13/c240/scD/s240.151/a">
<num value="a">(a)</num>
<content>A disclaimer is barred by a written waiver of the right to disclaim.</content>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scD/s240.151/b">
<num value="b">(b)</num>
<chapeau>A disclaimer of an interest in property is barred if any of the following events occur before the disclaimer becomes effective:</chapeau>
<paragraph identifier="/us/tx/pr/t13/c240/scD/s240.151/1">
<num value="1">(1)</num>
<chapeau>the disclaimant accepts the interest sought to be disclaimed by:</chapeau>
<subparagraph identifier="/us/tx/pr/t13/c240/scD/s240.151/A">
<num value="A">(A)</num>
<content>taking possession of the interest; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t13/c240/scD/s240.151/B">
<num value="B">(B)</num>
<content>exercising dominion and control over the interest;</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scD/s240.151/2">
<num value="2">(2)</num>
<content>the disclaimant voluntarily assigns, conveys, encumbers, pledges, or transfers the interest sought to be disclaimed or contracts to do so; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scD/s240.151/3">
<num value="3">(3)</num>
<content>the interest sought to be disclaimed is sold under a judicial sale.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scD/s240.151/c">
<num value="c">(c)</num>
<content>The acceptance of an interest in property by a person in the person's fiduciary capacity is not an acceptance of the interest in the person's individual capacity and does not bar the person from disclaiming the interest in the person's individual capacity.</content>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scD/s240.151/d">
<num value="d">(d)</num>
<content>A disclaimer, in whole or in part, of the future exercise of a power held in a fiduciary capacity is not barred by the previous exercise of the power.</content>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scD/s240.151/e">
<num value="e">(e)</num>
<content>A disclaimer, in whole or in part, of the future exercise of a power not held in a fiduciary capacity is not barred by the previous exercise of the power unless the power is exercisable in favor of the disclaimant.</content>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scD/s240.151/f">
<num value="f">(f)</num>
<chapeau>A disclaimer of:</chapeau>
<paragraph identifier="/us/tx/pr/t13/c240/scD/s240.151/1">
<num value="1">(1)</num>
<content>a power over property that is barred by this section is ineffective; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scD/s240.151/2">
<num value="2">(2)</num>
<content>an interest in property that is barred by this section takes effect as a transfer of the interest disclaimed to the persons who would have taken the interest under Subchapter B had the disclaimer not been barred.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scD/s240.151/g">
<num value="g">(g)</num>
<chapeau>A disclaimer by a child support obligor is barred as to disclaimed property that could be applied to satisfy the disclaimant's child support obligations if those obligations have been:</chapeau>
<paragraph identifier="/us/tx/pr/t13/c240/scD/s240.151/1">
<num value="1">(1)</num>
<content>administratively determined as evidenced by a certified child support payment record produced by the Title IV-D agency in a Title IV-D case; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scD/s240.151/2">
<num value="2">(2)</num>
<content>confirmed and reduced to judgment as provided by Section 157.263, Family Code.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scD/s240.151/h">
<num value="h">(h)</num>
<content>If Subsection (g) applies, the child support obligee to whom child support arrearages are owed or the Title IV-D agency may enforce the child support obligation against the disclaimant as to disclaimed property by a lien or by any other remedy provided by law.</content>
</subsection>
<subsection identifier="/us/tx/pr/t13/c240/scD/s240.151/i">
<num value="i">(i)</num>
<chapeau>In this section:</chapeau>
<paragraph identifier="/us/tx/pr/t13/c240/scD/s240.151/1">
<num value="1">(1)</num>
<content>"Title IV-D agency" has the meaning assigned by Section 101.033, Family Code.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t13/c240/scD/s240.151/2">
<num value="2">(2)</num>
<content>"Title IV-D case" has the meaning assigned by Section 101.034, Family Code.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 2015, 84th Leg., R.S., Ch. 562 (H.B. 2428), Sec. 15, eff. September 1, 2015.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 152 (S.B. 870), Sec. 24, eff. September 1, 2023.</sourceCredit>
</section>
</subchapter>
</chapter>
<num value="15">TITLE 15.</num>
<heading>FAIR HOUSING PRACTICES</heading>
<chapter identifier="/us/tx/pr/t15/c301">
<num value="301">CHAPTER 301.</num>
<heading>TEXAS FAIR HOUSING ACT</heading>
<subchapter identifier="/us/tx/pr/t15/c301/scA">
<num value="A">SUBCHAPTER A.</num>
<heading>TITLE, PURPOSE, AND DEFINITIONS</heading>
<section identifier="/us/tx/pr/t15/c301/scA/s301.001">
<num value="301.001">Sec. 301.001.</num>
<heading>SHORT TITLE</heading>
<content>This chapter may be cited as the Texas Fair Housing Act.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scA/s301.0015">
<num value="301.0015">Sec. 301.0015.</num>
<heading>TEXAS WORKFORCE COMMISSION</heading>
<content>The powers and duties exercised by the Commission on Human Rights under this chapter are transferred to the Texas Workforce Commission. A reference in this chapter to the "commission" means the Texas Workforce Commission.</content>
<sourceCredit>Added by Acts 2003, 78th Leg., ch. 302, Sec. 3, eff. March 19, 2004.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 1138 (S.B. 208), Sec. 29, eff. September 1, 2015.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scA/s301.002">
<num value="301.002">Sec. 301.002.</num>
<heading>PURPOSES</heading>
<chapeau>The purposes of this chapter are to:</chapeau>
<paragraph identifier="/us/tx/pr/t15/c301/scA/s301.002/1">
<num value="1">(1)</num>
<content>provide for fair housing practices in this state;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scA/s301.002/2">
<num value="2">(2)</num>
<content>create a procedure for investigating and settling complaints of discriminatory housing practices; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scA/s301.002/3">
<num value="3">(3)</num>
<content>provide rights and remedies substantially equivalent to those granted under federal law.</content>
</paragraph>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scA/s301.003">
<num value="301.003">Sec. 301.003.</num>
<heading>DEFINITIONS</heading>
<chapeau>In this chapter:</chapeau>
<paragraph identifier="/us/tx/pr/t15/c301/scA/s301.003/1">
<num value="1">(1)</num>
<chapeau>"Aggrieved person" includes any person who:</chapeau>
<subparagraph identifier="/us/tx/pr/t15/c301/scA/s301.003/A">
<num value="A">(A)</num>
<content>claims to have been injured by a discriminatory housing practice; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t15/c301/scA/s301.003/B">
<num value="B">(B)</num>
<content>believes that the person will be injured by a discriminatory housing practice that is about to occur.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scA/s301.003/2">
<num value="2">(2)</num>
<content>"Complainant" means a person, including the commission, that files a complaint under Section 301.081.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scA/s301.003/3">
<num value="3">(3)</num>
<content>Repealed by Acts 2003, 78th Leg., ch. 302, Sec. 4(3).</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scA/s301.003/4">
<num value="4">(4)</num>
<content>"Conciliation" means the informal negotiations among an aggrieved person, the respondent, and the commission to resolve issues raised by a complaint or by the investigation of the complaint.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scA/s301.003/5">
<num value="5">(5)</num>
<content>"Conciliation agreement" means a written agreement resolving the issues in conciliation.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scA/s301.003/6">
<num value="6">(6)</num>
<content>"Disability" means a mental or physical impairment that substantially limits at least one major life activity, a record of the impairment, or being regarded as having the impairment. The term does not include current illegal use or addiction to any drug or illegal or federally controlled substance and does not apply to an individual because of an individual's sexual orientation or because that individual is a transvestite.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scA/s301.003/7">
<num value="7">(7)</num>
<content>"Discriminatory housing practice" means an act prohibited by Subchapter B or conduct that is an offense under Subchapter I.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scA/s301.003/8">
<num value="8">(8)</num>
<chapeau>"Dwelling" means any:</chapeau>
<subparagraph identifier="/us/tx/pr/t15/c301/scA/s301.003/A">
<num value="A">(A)</num>
<content>structure or part of a structure that is occupied as, or designed or intended for occupancy as, a residence by one or more families; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t15/c301/scA/s301.003/B">
<num value="B">(B)</num>
<content>vacant land that is offered for sale or lease for the construction or location of a structure or part of a structure described by Paragraph (A).</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scA/s301.003/9">
<num value="9">(9)</num>
<content>"Family" includes a single individual.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scA/s301.003/10">
<num value="10">(10)</num>
<chapeau>"Respondent" means:</chapeau>
<subparagraph identifier="/us/tx/pr/t15/c301/scA/s301.003/A">
<num value="A">(A)</num>
<content>a person accused of a violation of this chapter in a complaint of discriminatory housing practice; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t15/c301/scA/s301.003/B">
<num value="B">(B)</num>
<content>a person identified as an additional or substitute respondent under Section 301.084 or an agent of an additional or substitute respondent.</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scA/s301.003/11">
<num value="11">(11)</num>
<content>"To rent" includes to lease, sublease, or let, or to grant in any other manner, for a consideration, the right to occupy premises not owned by the occupant.</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scA/s301.003/12">
<num value="12">(12)</num>
<chapeau>"Person" means:</chapeau>
<subparagraph identifier="/us/tx/pr/t15/c301/scA/s301.003/A">
<num value="A">(A)</num>
<content>an individual;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t15/c301/scA/s301.003/B">
<num value="B">(B)</num>
<content>a corporation, partnership, association, unincorporated organization, labor organization, mutual company, joint-stock company, and trust; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t15/c301/scA/s301.003/C">
<num value="C">(C)</num>
<content>a legal representative, a trustee, a trustee in a case under Title 11, U.S.C., a receiver, and a fiduciary.</content>
</subparagraph>
</paragraph>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 17.003, eff. Sept. 1, 2001.
Amended by Acts 2003, 78th Leg., Ch. 302 (H.B. 2933), Sec. 4(3), eff. March 19, 2004.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scA/s301.004">
<num value="301.004">Sec. 301.004.</num>
<heading>FAMILIAL STATUS</heading>
<chapeau>A discriminatory act is committed because of familial status if the act is committed because the person who is the subject of discrimination is:</chapeau>
<paragraph identifier="/us/tx/pr/t15/c301/scA/s301.004/1">
<num value="1">(1)</num>
<content>pregnant;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scA/s301.004/2">
<num value="2">(2)</num>
<chapeau>domiciled with an individual younger than 18 years of age in regard to whom the person:</chapeau>
<subparagraph identifier="/us/tx/pr/t15/c301/scA/s301.004/A">
<num value="A">(A)</num>
<content>is the parent or legal custodian; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t15/c301/scA/s301.004/B">
<num value="B">(B)</num>
<content>has the written permission of the parent or legal custodian for domicile with that person; or</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scA/s301.004/3">
<num value="3">(3)</num>
<content>in the process of obtaining legal custody of an individual younger than 18 years of age.</content>
</paragraph>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scA/s301.0045">
<num value="301.0045">Sec. 301.0045.</num>
<heading>RACIAL DISCRIMINATION BASED ON HAIR TEXTURE OR PROTECTIVE HAIRSTYLE</heading>
<subsection identifier="/us/tx/pr/t15/c301/scA/s301.0045/a">
<num value="a">(a)</num>
<content>In this section, "protective hairstyle" includes braids, locks, and twists.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scA/s301.0045/b">
<num value="b">(b)</num>
<content>A provision in this chapter, other than a provision in Subchapter I, referring to discrimination because of race or on the basis of race includes discrimination because of or on the basis of a person's hair texture or protective hairstyle commonly or historically associated with race.</content>
</subsection>
<sourceCredit>Added by Acts 2023, 88th Leg., R.S., Ch. 223 (H.B. 567), Sec. 4, eff. September 1, 2023.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scA/s301.005">
<num value="301.005">Sec. 301.005.</num>
<heading>CONSTRUCTION OF CHAPTER</heading>
<content>The statutory civil remedies or theories of recovery created by this chapter may not be expanded beyond their express statutory terms.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t15/c301/scB">
<num value="B">SUBCHAPTER B.</num>
<heading>DISCRIMINATION PROHIBITED</heading>
<section identifier="/us/tx/pr/t15/c301/scB/s301.021">
<num value="301.021">Sec. 301.021.</num>
<heading>SALE OR RENTAL</heading>
<subsection identifier="/us/tx/pr/t15/c301/scB/s301.021/a">
<num value="a">(a)</num>
<content>A person may not refuse to sell or rent, after the making of a bona fide offer, refuse to negotiate for the sale or rental of, or in any other manner make unavailable or deny a dwelling to another because of race, color, religion, sex, familial status, or national origin.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scB/s301.021/b">
<num value="b">(b)</num>
<content>A person may not discriminate against another in the terms, conditions, or privileges of sale or rental of a dwelling or in providing services or facilities in connection with a sale or rental of a dwelling because of race, color, religion, sex, familial status, or national origin.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scB/s301.021/c">
<num value="c">(c)</num>
<content>This section does not prohibit discrimination against a person because the person has been convicted under federal law or the law of any state of the illegal manufacture or distribution of a controlled substance.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scB/s301.022">
<num value="301.022">Sec. 301.022.</num>
<heading>PUBLICATION</heading>
<content>A person may not make, print, or publish or effect the making, printing, or publishing of a notice, statement, or advertisement that is about the sale or rental of a dwelling and that indicates any preference, limitation, or discrimination or the intention to make a preference, limitation, or discrimination because of race, color, religion, sex, disability, familial status, or national origin.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scB/s301.023">
<num value="301.023">Sec. 301.023.</num>
<heading>INSPECTION</heading>
<content>A person may not represent to another because of race, color, religion, sex, disability, familial status, or national origin that a dwelling is not available for inspection for sale or rental when the dwelling is available for inspection.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scB/s301.024">
<num value="301.024">Sec. 301.024.</num>
<heading>ENTRY INTO NEIGHBORHOOD</heading>
<content>A person may not, for profit, induce or attempt to induce another to sell or rent a dwelling by representations regarding the entry or prospective entry into a neighborhood of a person of a particular race, color, religion, sex, disability, familial status, or national origin.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scB/s301.025">
<num value="301.025">Sec. 301.025.</num>
<heading>DISABILITY</heading>
<subsection identifier="/us/tx/pr/t15/c301/scB/s301.025/a">
<num value="a">(a)</num>
<chapeau>A person may not discriminate in the sale or rental of, or make unavailable or deny, a dwelling to any buyer or renter because of a disability of:</chapeau>
<paragraph identifier="/us/tx/pr/t15/c301/scB/s301.025/1">
<num value="1">(1)</num>
<content>the buyer or renter;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scB/s301.025/2">
<num value="2">(2)</num>
<content>a person residing in or intending to reside in that dwelling after it is sold, rented, or made available; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scB/s301.025/3">
<num value="3">(3)</num>
<content>any person associated with the buyer or renter.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scB/s301.025/b">
<num value="b">(b)</num>
<chapeau>A person may not discriminate against another in the terms, conditions, or privileges of sale or rental of a dwelling or in the provision of services or facilities in connection with the dwelling because of a disability of:</chapeau>
<paragraph identifier="/us/tx/pr/t15/c301/scB/s301.025/1">
<num value="1">(1)</num>
<content>the other person;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scB/s301.025/2">
<num value="2">(2)</num>
<content>a person residing in or intending to reside in that dwelling after it is sold, rented, or made available; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scB/s301.025/3">
<num value="3">(3)</num>
<content>any person associated with the other person.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scB/s301.025/c">
<num value="c">(c)</num>
<chapeau>In this section, discrimination includes:</chapeau>
<paragraph identifier="/us/tx/pr/t15/c301/scB/s301.025/1">
<num value="1">(1)</num>
<content>a refusal to permit, at the expense of the person having a disability, a reasonable modification of existing premises occupied or to be occupied by the person if the modification may be necessary to afford the person full enjoyment of the premises;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scB/s301.025/2">
<num value="2">(2)</num>
<content>a refusal to make a reasonable accommodation in rules, policies, practices, or services if the accommodation may be necessary to afford the person equal opportunity to use and enjoy a dwelling; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scB/s301.025/3">
<num value="3">(3)</num>
<chapeau>the failure to design and construct a covered multifamily dwelling in a manner:</chapeau>
<subparagraph identifier="/us/tx/pr/t15/c301/scB/s301.025/A">
<num value="A">(A)</num>
<content>that allows the public use and common use portions of the dwellings to be readily accessible to and usable by persons having a disability;</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t15/c301/scB/s301.025/B">
<num value="B">(B)</num>
<content>that allows all doors designed to allow passage into and within all premises within the dwellings to be sufficiently wide to allow passage by a person who has a disability and who is in a wheelchair; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t15/c301/scB/s301.025/C">
<num value="C">(C)</num>
<content>that provides all premises within the dwellings contain the following features of adaptive design:</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scB/s301.025/i">
<num value="i">(i)</num>
<chapeau>an accessible route into and through the dwelling;</chapeau>
<clause identifier="/us/tx/pr/t15/c301/scB/s301.025/ii">
<num value="ii">(ii)</num>
<content>light switches, electrical outlets, thermostats, and other environmental controls in accessible locations;</content>
</clause>
<clause identifier="/us/tx/pr/t15/c301/scB/s301.025/iii">
<num value="iii">(iii)</num>
<content>reinforcements in bathroom walls to allow later installation of grab bars; and</content>
</clause>
<clause identifier="/us/tx/pr/t15/c301/scB/s301.025/iv">
<num value="iv">(iv)</num>
<content>kitchens and bathrooms that are usable and have sufficient space in which an individual in a wheelchair can maneuver.</content>
</clause>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scB/s301.025/d">
<num value="d">(d)</num>
<content>Compliance with the appropriate requirements of the American National Standard for buildings and facilities providing accessibility and usability for persons having physical disabilities, commonly cited as "ANSI A 117.1," satisfies the requirements of Subsection (c)(3)(C).</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scB/s301.025/e">
<num value="e">(e)</num>
<content>Subsection (c)(3) does not apply to a building the first occupancy of which occurred on or before March 13, 1991.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scB/s301.025/f">
<num value="f">(f)</num>
<content>This section does not require a dwelling to be made available to an individual whose tenancy would constitute a direct threat to the health or safety of other individuals or whose tenancy would result in substantial physical damage to the property of others.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scB/s301.025/g">
<num value="g">(g)</num>
<chapeau>In this subsection, the term "covered multifamily dwellings" means:</chapeau>
<paragraph identifier="/us/tx/pr/t15/c301/scB/s301.025/1">
<num value="1">(1)</num>
<content>buildings consisting of four or more units if the buildings have one or more elevators; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scB/s301.025/2">
<num value="2">(2)</num>
<content>ground floor units in other buildings consisting of four or more units.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scB/s301.026">
<num value="301.026">Sec. 301.026.</num>
<heading>RESIDENTIAL REAL ESTATE RELATED TRANSACTION</heading>
<subsection identifier="/us/tx/pr/t15/c301/scB/s301.026/a">
<num value="a">(a)</num>
<content>A person whose business includes engaging in residential real estate related transactions may not discriminate against another in making a real estate related transaction available or in the terms or conditions of a real estate related transaction because of race, color, religion, sex, disability, familial status, or national origin.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scB/s301.026/b">
<num value="b">(b)</num>
<chapeau>In this section, "residential real estate related transaction" means:</chapeau>
<paragraph identifier="/us/tx/pr/t15/c301/scB/s301.026/1">
<num value="1">(1)</num>
<chapeau>the making or purchasing of loans or the provision of other financial assistance:</chapeau>
<subparagraph identifier="/us/tx/pr/t15/c301/scB/s301.026/A">
<num value="A">(A)</num>
<content>to purchase, construct, improve, repair, or maintain a dwelling; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t15/c301/scB/s301.026/B">
<num value="B">(B)</num>
<content>to secure residential real estate; or</content>
</subparagraph>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scB/s301.026/2">
<num value="2">(2)</num>
<content>the selling, brokering, or appraising of residential real property.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scB/s301.027">
<num value="301.027">Sec. 301.027.</num>
<heading>BROKERAGE SERVICES</heading>
<content>A person may not deny another access to, or membership or participation in, a multiple-listing service, real estate brokers' organization, or other service, organization, or facility relating to the business of selling or renting dwellings, or discriminate against a person in the terms or conditions of access, membership, or participation in such an organization, service, or facility because of race, color, religion, sex, disability, familial status, or national origin.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t15/c301/scC">
<num value="C">SUBCHAPTER C.</num>
<heading>EXEMPTIONS</heading>
<section identifier="/us/tx/pr/t15/c301/scC/s301.041">
<num value="301.041">Sec. 301.041.</num>
<heading>CERTAIN SALES AND RENTALS EXEMPTED</heading>
<subsection identifier="/us/tx/pr/t15/c301/scC/s301.041/a">
<num value="a">(a)</num>
<chapeau>Sections 301.021, 301.023, 301.024, and 301.025 do not apply to:</chapeau>
<paragraph identifier="/us/tx/pr/t15/c301/scC/s301.041/1">
<num value="1">(1)</num>
<chapeau>the sale or rental of a single-family house sold or rented by the owner if:</chapeau>
<subparagraph identifier="/us/tx/pr/t15/c301/scC/s301.041/A">
<num value="A">(A)</num>
<content>the owner does not:</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scC/s301.041/i">
<num value="i">(i)</num>
<chapeau>own more than three single-family houses at any one time; or</chapeau>
<clause identifier="/us/tx/pr/t15/c301/scC/s301.041/ii">
<num value="ii">(ii)</num>
<content>own any interest in, nor is there owned or reserved on the person's behalf, under any express or voluntary agreement, title to or any right to any part of the proceeds from the sale or rental of more than three single-family houses at any one time; and</content>
</clause>
<subparagraph identifier="/us/tx/pr/t15/c301/scC/s301.041/B">
<num value="B">(B)</num>
<content>the house is sold or rented without:</content>
</subparagraph>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scC/s301.041/i">
<num value="i">(i)</num>
<chapeau>the use of the sales or rental facilities or services of a broker, agent, or salesperson licensed under Chapter 1101, Occupations Code, or of an employee or agent of a licensed broker, agent, or salesperson, or the facilities or services of any person in the business of selling or renting a dwelling; or</chapeau>
<clause identifier="/us/tx/pr/t15/c301/scC/s301.041/ii">
<num value="ii">(ii)</num>
<content>the publication, posting, or mailing of a notice, statement, or advertisement prohibited by Section 301.022; or</content>
</clause>
<paragraph identifier="/us/tx/pr/t15/c301/scC/s301.041/2">
<num value="2">(2)</num>
<content>the sale or rental of the rooms or units in a dwelling containing living quarters occupied by or intended to be occupied by not more than four families living independently of each other, if the owner maintains and occupies one of the living quarters as the owner's residence.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scC/s301.041/b">
<num value="b">(b)</num>
<content>The exemption in Subsection (a)(1) applies only to one sale in a 24-month period if the owner was not the most recent resident of the house at the time of the sale.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scC/s301.041/c">
<num value="c">(c)</num>
<content>Subsection (a) does not prohibit the use of attorneys, escrow agents, abstractors, title companies, and other professional assistants necessary to transfer title.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scC/s301.041/d">
<num value="d">(d)</num>
<chapeau>For purposes of Subsection (a), a person is in the business of selling or renting a dwelling if:</chapeau>
<paragraph identifier="/us/tx/pr/t15/c301/scC/s301.041/1">
<num value="1">(1)</num>
<content>the person has, within the preceding year, participated as the seller or landlord in three or more transactions involving the sale or rental of a dwelling or any interest in a dwelling;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scC/s301.041/2">
<num value="2">(2)</num>
<content>the person has, within the preceding year, participated in two or more transactions, other than transactions involving the person's own dwelling, as an agent providing sales or rental facilities or services involving the sale or rental of a dwelling or any interest in a dwelling; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scC/s301.041/3">
<num value="3">(3)</num>
<content>the person is the owner of a dwelling designed or intended for occupancy by, or that is occupied by, five or more families.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993. Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 14A.810, eff. Sept. 1, 2003.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 455 (H.B. 1153), Sec. 1, eff. September 1, 2021.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scC/s301.042">
<num value="301.042">Sec. 301.042.</num>
<heading>RELIGIOUS ORGANIZATION, PRIVATE CLUB, AND APPRAISAL EXEMPTION</heading>
<subsection identifier="/us/tx/pr/t15/c301/scC/s301.042/a">
<num value="a">(a)</num>
<chapeau>This chapter does not prohibit a religious organization, association, or society or a nonprofit institution or organization operated, supervised, or controlled by or in conjunction with a religious organization, association, or society from:</chapeau>
<paragraph identifier="/us/tx/pr/t15/c301/scC/s301.042/1">
<num value="1">(1)</num>
<content>limiting the sale, rental, or occupancy of dwellings that it owns or operates for other than a commercial purpose to persons of the same religion; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scC/s301.042/2">
<num value="2">(2)</num>
<content>giving preference to persons of the same religion, unless membership in the religion is restricted because of race, color, or national origin.</content>
<continuation>(a-1) Subsection (a) does not apply to the sale, rental, or occupancy of a dwelling that is a single-family house, duplex, triplex, or quadruplex located on a subdivided lot in a parcel of land 25 acres or greater owned by a religious organization, association, or society or a nonprofit institution or organization operated, supervised, or controlled by or in conjunction with a religious organization, association, or society.</continuation>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scC/s301.042/b">
<num value="b">(b)</num>
<content>This chapter does not prohibit a private club that is not open to the public and that, as an incident to its primary purpose, provides lodging that it owns or operates for other than a commercial purpose from limiting the rental or occupancy of the lodging to its members or from giving preference to its members.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scC/s301.042/c">
<num value="c">(c)</num>
<content>This chapter does not prohibit a person engaged in the business of furnishing appraisals of real property from considering in those appraisals factors other than race, color, religion, sex, disability, familial status, or national origin.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.
Amended by:
Acts 2025, 89th Leg., R.S., Ch. 1096 (H.B. 4211), Sec. 2, eff. June 20, 2025.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scC/s301.043">
<num value="301.043">Sec. 301.043.</num>
<heading>HOUSING FOR ELDERLY EXEMPTED</heading>
<chapeau>The provisions of this chapter relating to familial status do not apply to housing:</chapeau>
<paragraph identifier="/us/tx/pr/t15/c301/scC/s301.043/1">
<num value="1">(1)</num>
<content>that the commission determines is specifically designed and operated to assist elderly individuals under a federal or state program;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scC/s301.043/2">
<num value="2">(2)</num>
<content>intended for, and solely occupied by, individuals 62 years of age or older; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scC/s301.043/3">
<num value="3">(3)</num>
<content>intended and operated for occupancy by at least one individual 55 years of age or older for each unit as determined by commission rules.</content>
</paragraph>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scC/s301.044">
<num value="301.044">Sec. 301.044.</num>
<heading>EFFECT ON OTHER LAW</heading>
<subsection identifier="/us/tx/pr/t15/c301/scC/s301.044/a">
<num value="a">(a)</num>
<content>This chapter does not affect a reasonable local or state restriction on the maximum number of occupants permitted to occupy a dwelling or a restriction relating to health or safety standards.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scC/s301.044/b">
<num value="b">(b)</num>
<content>This chapter does not affect a requirement of nondiscrimination in any other state or federal law.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t15/c301/scD">
<num value="D">SUBCHAPTER D.</num>
<heading>ADMINISTRATIVE PROVISIONS</heading>
<section identifier="/us/tx/pr/t15/c301/scD/s301.062">
<num value="301.062">Sec. 301.062.</num>
<heading>RULES</heading>
<content>The commission may adopt rules necessary to implement this chapter, but substantive rules adopted by the commission shall impose obligations, rights, and remedies that are the same as are provided in federal fair housing regulations.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scD/s301.063">
<num value="301.063">Sec. 301.063.</num>
<heading>COMPLAINTS</heading>
<content>As provided by Subchapters E and F, the commission shall receive, investigate, seek to conciliate, and act on complaints alleging violations of this chapter.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scD/s301.065">
<num value="301.065">Sec. 301.065.</num>
<heading>REPORTS AND STUDIES</heading>
<subsection identifier="/us/tx/pr/t15/c301/scD/s301.065/a">
<num value="a">(a)</num>
<content>The commission shall, at least annually, publish a written report recommending legislative or other action to carry out the purposes of this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scD/s301.065/b">
<num value="b">(b)</num>
<content>The commission shall make studies relating to the nature and extent of discriminatory housing practices in this state.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scD/s301.066">
<num value="301.066">Sec. 301.066.</num>
<heading>COOPERATION WITH OTHER ENTITIES</heading>
<content>The commission shall cooperate with and may provide technical and other assistance to federal, state, local, and other public or private entities that are designing or operating programs to prevent or eliminate discriminatory housing practices.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scD/s301.067">
<num value="301.067">Sec. 301.067.</num>
<heading>SUBPOENAS AND DISCOVERY</heading>
<subsection identifier="/us/tx/pr/t15/c301/scD/s301.067/a">
<num value="a">(a)</num>
<content>The commission may issue subpoenas and order discovery in investigations and hearings under this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scD/s301.067/b">
<num value="b">(b)</num>
<content>The subpoenas and discovery may be ordered to the same extent and are subject to the same limitations as subpoenas and discovery in a civil action in district court.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scD/s301.068">
<num value="301.068">Sec. 301.068.</num>
<heading>REFERRAL TO MUNICIPALITY</heading>
<content>The commission may defer proceedings under this chapter and refer a complaint to a municipality that has been certified by the federal Department of Housing and Urban Development as a substantially equivalent fair housing agency.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scD/s301.069">
<num value="301.069">Sec. 301.069.</num>
<heading>GIFTS AND GRANTS</heading>
<subsection identifier="/us/tx/pr/t15/c301/scD/s301.069/a">
<num value="a">(a)</num>
<content>The commission may accept gifts and grants from any public or private source for administering this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scD/s301.069/b">
<num value="b">(b)</num>
<content>Gifts and grants received shall be deposited to the credit of the fair housing fund in the state treasury.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scD/s301.069/c">
<num value="c">(c)</num>
<content>Money deposited to the credit of the fund may be used only for administering this chapter.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scD/s301.070">
<num value="301.070">Sec. 301.070.</num>
<heading>ACCESSIBILITY ASSISTANCE AND INFORMATION FOR LANDLORDS</heading>
<content>The commission shall provide to landlords technical and other assistance relating to the accessibility requirements under this chapter.</content>
<sourceCredit>Added by Acts 1999, 76th Leg., ch. 872, Sec. 16, eff. Sept. 1, 1999.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t15/c301/scE">
<num value="E">SUBCHAPTER E.</num>
<heading>ADMINISTRATIVE ENFORCEMENT</heading>
<section identifier="/us/tx/pr/t15/c301/scE/s301.081">
<num value="301.081">Sec. 301.081.</num>
<heading>COMPLAINT</heading>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.081/a">
<num value="a">(a)</num>
<content>The commission shall investigate complaints of alleged discriminatory housing practices.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.081/b">
<num value="b">(b)</num>
<chapeau>A complaint must be:</chapeau>
<paragraph identifier="/us/tx/pr/t15/c301/scE/s301.081/1">
<num value="1">(1)</num>
<content>in writing;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scE/s301.081/2">
<num value="2">(2)</num>
<content>under oath; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scE/s301.081/3">
<num value="3">(3)</num>
<content>in the form prescribed by the commission.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.081/c">
<num value="c">(c)</num>
<content>An aggrieved person may file a complaint with the commission alleging the discriminatory housing practice. The commission may file a complaint.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.081/d">
<num value="d">(d)</num>
<content>A complaint must be filed on or before the first anniversary of the date the alleged discriminatory housing practice occurs or terminates, whichever is later.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.081/e">
<num value="e">(e)</num>
<content>A complaint may be amended at any time.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.081/f">
<num value="f">(f)</num>
<chapeau>On the filing of a complaint, the commission shall:</chapeau>
<paragraph identifier="/us/tx/pr/t15/c301/scE/s301.081/1">
<num value="1">(1)</num>
<content>give the aggrieved person notice that the complaint has been received;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scE/s301.081/2">
<num value="2">(2)</num>
<content>advise the aggrieved person of the time limits and choice of forums under this chapter; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scE/s301.081/3">
<num value="3">(3)</num>
<chapeau>not later than the 20th day after the date of the filing of the complaint or the identification of an additional or substitute respondent under Section 301.084, serve on each respondent:</chapeau>
<subparagraph identifier="/us/tx/pr/t15/c301/scE/s301.081/A">
<num value="A">(A)</num>
<content>a notice identifying the alleged discriminatory housing practice and advising the respondent of the procedural rights and obligations of a respondent under this chapter; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t15/c301/scE/s301.081/B">
<num value="B">(B)</num>
<content>a copy of the original complaint.</content>
</subparagraph>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scE/s301.082">
<num value="301.082">Sec. 301.082.</num>
<heading>ANSWER</heading>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.082/a">
<num value="a">(a)</num>
<content>Not later than the 10th day after the date of receipt of the notice and copy of the complaint under Section 301.081(f)(3), a respondent may file an answer to the complaint.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.082/b">
<num value="b">(b)</num>
<chapeau>An answer must be:</chapeau>
<paragraph identifier="/us/tx/pr/t15/c301/scE/s301.082/1">
<num value="1">(1)</num>
<content>in writing;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scE/s301.082/2">
<num value="2">(2)</num>
<content>under oath; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scE/s301.082/3">
<num value="3">(3)</num>
<content>in the form prescribed by the commission.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.082/c">
<num value="c">(c)</num>
<content>An answer may be amended at any time.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.082/d">
<num value="d">(d)</num>
<content>An answer does not inhibit the investigation of a complaint.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scE/s301.083">
<num value="301.083">Sec. 301.083.</num>
<heading>INVESTIGATION</heading>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.083/a">
<num value="a">(a)</num>
<content>If the federal government has referred a complaint to the commission or has deferred jurisdiction over the subject matter of the complaint to the commission, the commission shall promptly investigate the allegations set forth in the complaint.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.083/b">
<num value="b">(b)</num>
<content>The commission shall investigate all complaints and, except as provided by Subsection (c), shall complete an investigation not later than the 100th day after the date the complaint is filed or, if it is unable to complete the investigation within the 100-day period, shall dispose of all administrative proceedings related to the investigation not later than the first anniversary after the date the complaint is filed.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.083/c">
<num value="c">(c)</num>
<content>If the commission is unable to complete an investigation within the time periods prescribed by Subsection (b), the commission shall notify the complainant and the respondent in writing of the reasons for the delay.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scE/s301.084">
<num value="301.084">Sec. 301.084.</num>
<heading>ADDITIONAL OR SUBSTITUTE RESPONDENT</heading>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.084/a">
<num value="a">(a)</num>
<content>The commission may join a person not named in the complaint as an additional or substitute respondent if during the investigation the commission determines that the person should be accused of a discriminatory housing practice.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.084/b">
<num value="b">(b)</num>
<content>In addition to the information required in the notice under Section 301.081(f), the commission shall include in a notice to a respondent joined under this section the reasons for the determination that the person is properly joined as a respondent.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scE/s301.085">
<num value="301.085">Sec. 301.085.</num>
<heading>CONCILIATION</heading>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.085/a">
<num value="a">(a)</num>
<content>The commission shall, during the period beginning with the filing of a complaint and ending with the filing of a charge or a dismissal by the commission, to the extent feasible, engage in conciliation with respect to the complaint.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.085/b">
<num value="b">(b)</num>
<content>A conciliation agreement between a respondent and the complainant is subject to commission approval.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.085/c">
<num value="c">(c)</num>
<content>A conciliation agreement may provide for binding arbitration or another method of dispute resolution. Dispute resolution that results from a conciliation agreement may authorize appropriate relief, including monetary relief.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.085/d">
<num value="d">(d)</num>
<chapeau>A conciliation agreement is public information unless:</chapeau>
<paragraph identifier="/us/tx/pr/t15/c301/scE/s301.085/1">
<num value="1">(1)</num>
<content>the complainant and respondent agree that it is not; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scE/s301.085/2">
<num value="2">(2)</num>
<content>the commission determines that disclosure is not necessary to further the purposes of this chapter.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.085/e">
<num value="e">(e)</num>
<content>Statements made or actions taken in the conciliation may not be made public or used as evidence in a subsequent proceeding under this chapter without the written consent of the persons concerned.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.085/f">
<num value="f">(f)</num>
<content>After completion of the commission's investigation, the commission shall make available to the aggrieved person and the respondent, at any time, information derived from the investigation and the final investigative report relating to that investigation.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scE/s301.086">
<num value="301.086">Sec. 301.086.</num>
<heading>TEMPORARY OR PRELIMINARY RELIEF</heading>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.086/a">
<num value="a">(a)</num>
<content>The commission may authorize a civil action for temporary or preliminary relief pending the final disposition of a complaint if the commission concludes after the filing of the complaint that prompt judicial action is necessary to carry out the purposes of this chapter.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.086/b">
<num value="b">(b)</num>
<content>On receipt of the commission's authorization, the attorney general shall promptly file the action.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.086/c">
<num value="c">(c)</num>
<content>A temporary restraining order or other order granting preliminary or temporary relief under this section is governed by the applicable Texas Rules of Civil Procedure.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.086/d">
<num value="d">(d)</num>
<content>The filing of a civil action under this section does not affect the initiation or continuation of administrative proceedings under Section 301.111.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scE/s301.087">
<num value="301.087">Sec. 301.087.</num>
<heading>INVESTIGATIVE REPORT</heading>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.087/a">
<num value="a">(a)</num>
<chapeau>The commission shall prepare a final investigative report including:</chapeau>
<paragraph identifier="/us/tx/pr/t15/c301/scE/s301.087/1">
<num value="1">(1)</num>
<content>the names of and dates of contacts with witnesses;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scE/s301.087/2">
<num value="2">(2)</num>
<content>a summary of correspondence and other contacts with the aggrieved person and the respondent showing the dates of the correspondence and contacts;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scE/s301.087/3">
<num value="3">(3)</num>
<content>a summary description of other pertinent records;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scE/s301.087/4">
<num value="4">(4)</num>
<content>a summary of witness statements; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scE/s301.087/5">
<num value="5">(5)</num>
<content>answers to interrogatories.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.087/b">
<num value="b">(b)</num>
<content>A final report under this section may be amended if additional evidence is discovered.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scE/s301.088">
<num value="301.088">Sec. 301.088.</num>
<heading>REASONABLE CAUSE DETERMINATION</heading>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.088/a">
<num value="a">(a)</num>
<content>The commission shall determine from the facts whether reasonable cause exists to believe that a discriminatory housing practice has occurred or is about to occur.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.088/b">
<num value="b">(b)</num>
<chapeau>The commission shall make the determination under Subsection (a) not later than the 100th day after the date a complaint is filed unless:</chapeau>
<paragraph identifier="/us/tx/pr/t15/c301/scE/s301.088/1">
<num value="1">(1)</num>
<content>making the determination is impracticable; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scE/s301.088/2">
<num value="2">(2)</num>
<content>the commission approves a conciliation agreement relating to the complaint.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.088/c">
<num value="c">(c)</num>
<content>If within the period provided by Subsection (b) making the determination is impracticable, the commission shall give in writing to the complainant and the respondent the reasons for the delay.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.088/d">
<num value="d">(d)</num>
<content>If the commission determines that reasonable cause exists to believe that a discriminatory housing practice has occurred or is about to occur, the commission shall, except as provided by Section 301.090, immediately issue a charge on behalf of the aggrieved person.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scE/s301.089">
<num value="301.089">Sec. 301.089.</num>
<heading>CHARGE</heading>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.089/a">
<num value="a">(a)</num>
<chapeau>A charge issued under Section 301.088:</chapeau>
<paragraph identifier="/us/tx/pr/t15/c301/scE/s301.089/1">
<num value="1">(1)</num>
<content>must consist of a short and plain statement of the facts on which the commission finds reasonable cause to believe that a discriminatory housing practice has occurred or is about to occur;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scE/s301.089/2">
<num value="2">(2)</num>
<content>must be based on the final investigative report; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scE/s301.089/3">
<num value="3">(3)</num>
<content>is not limited to the facts or grounds alleged in the complaint.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.089/b">
<num value="b">(b)</num>
<chapeau>Not later than the 20th day after the date the commission issues a charge, the commission shall send a copy of the charge with information about the election under Section 301.093 to:</chapeau>
<paragraph identifier="/us/tx/pr/t15/c301/scE/s301.089/1">
<num value="1">(1)</num>
<content>each respondent; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scE/s301.089/2">
<num value="2">(2)</num>
<content>each aggrieved person on whose behalf the complaint was filed.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.089/c">
<num value="c">(c)</num>
<content>The commission shall include with a charge sent to a respondent a notice of the opportunity for a hearing under Section 301.111.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scE/s301.090">
<num value="301.090">Sec. 301.090.</num>
<heading>LAND USE LAW</heading>
<content>If the commission determines that the matter involves the legality of a state or local zoning or other land use law or ordinance, the commission may not issue a charge and shall immediately refer the matter to the attorney general for appropriate action.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scE/s301.091">
<num value="301.091">Sec. 301.091.</num>
<heading>DISMISSAL</heading>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.091/a">
<num value="a">(a)</num>
<content>If the commission determines that no reasonable cause exists to believe that a discriminatory housing practice that is the subject of a complaint has occurred or is about to occur, the commission shall promptly dismiss the complaint.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.091/b">
<num value="b">(b)</num>
<content>The commission shall make public disclosure of each dismissal.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scE/s301.092">
<num value="301.092">Sec. 301.092.</num>
<heading>PENDING CIVIL TRIAL</heading>
<content>The commission may not issue a charge alleging a discriminatory housing practice after the beginning of the trial of a civil action commenced by the aggrieved party under federal or state law seeking relief with respect to that discriminatory housing practice.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scE/s301.093">
<num value="301.093">Sec. 301.093.</num>
<heading>ELECTION OF JUDICIAL DETERMINATION</heading>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.093/a">
<num value="a">(a)</num>
<content>A complainant, a respondent, or an aggrieved person on whose behalf a complaint was filed may elect to have the claims asserted in the charge decided in a civil action as provided by Section 301.131.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.093/b">
<num value="b">(b)</num>
<content>The election must be made not later than the 20th day after the date the person having the election receives service under Section 301.089(b) or, in the case of the commission, not later than the 20th day after the date the charge is issued.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scE/s301.093/c">
<num value="c">(c)</num>
<content>The person making the election shall give notice to the commission and to all other complainants and respondents to whom the charge relates.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t15/c301/scF">
<num value="F">SUBCHAPTER F.</num>
<heading>ADMINISTRATIVE HEARINGS</heading>
<section identifier="/us/tx/pr/t15/c301/scF/s301.111">
<num value="301.111">Sec. 301.111.</num>
<heading>ADMINISTRATIVE HEARING</heading>
<subsection identifier="/us/tx/pr/t15/c301/scF/s301.111/a">
<num value="a">(a)</num>
<content>If a timely election is not made under Section 301.093, the commission shall provide for a hearing on the charge.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scF/s301.111/b">
<num value="b">(b)</num>
<content>Except as provided by Subsection (c), Chapter 2001, Government Code, governs a hearing and an appeal of a hearing.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scF/s301.111/c">
<num value="c">(c)</num>
<content>A hearing under this section on an alleged discriminatory housing practice may not continue after the beginning of the trial of a civil action commenced by the aggrieved person under federal or state law seeking relief with respect to the discriminatory housing practice.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scF/s301.112">
<num value="301.112">Sec. 301.112.</num>
<heading>ADMINISTRATIVE PENALTIES</heading>
<subsection identifier="/us/tx/pr/t15/c301/scF/s301.112/a">
<num value="a">(a)</num>
<content>If the commission determines at a hearing under Section 301.111 that a respondent has engaged in or is about to engage in a discriminatory housing practice, the commission may order the appropriate relief, including actual damages, reasonable attorney fees, court costs, and other injunctive or equitable relief.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scF/s301.112/b">
<num value="b">(b)</num>
<chapeau>To vindicate the public's interest, the commission may assess a civil penalty against the respondent in an amount that does not exceed:</chapeau>
<paragraph identifier="/us/tx/pr/t15/c301/scF/s301.112/1">
<num value="1">(1)</num>
<content>$10,000 if the respondent has been found by order of the commission or a court to have committed a prior discriminatory housing practice; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scF/s301.112/2">
<num value="2">(2)</num>
<chapeau>except as provided by Subsection (c):</chapeau>
<subparagraph identifier="/us/tx/pr/t15/c301/scF/s301.112/A">
<num value="A">(A)</num>
<content>$25,000 if the respondent has been found by order of the commission or a court to have committed one other discriminatory housing practice during the five-year period ending on the date of the filing of the charges; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t15/c301/scF/s301.112/B">
<num value="B">(B)</num>
<content>$50,000 if the respondent has been found by the commission or a court to have committed two or more discriminatory housing practices during the seven-year period ending on the date of filing of the charge.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scF/s301.112/c">
<num value="c">(c)</num>
<content>If the acts constituting the discriminatory housing practice that is the object of the charge are committed by the same individual who has previously been found to have committed acts constituting a discriminatory housing practice, the civil penalties in Subsection (b)(2) may be imposed without regard to the period of time within which any other discriminatory housing practice occurred.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scF/s301.112/d">
<num value="d">(d)</num>
<content>At the request of the commission, the attorney general shall sue to recover a civil penalty due under this section. Funds collected under this section shall be paid to the comptroller for deposit in the state treasury to the credit of the fair housing fund.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993. Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 16.39, eff. Sept. 1, 1997.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scF/s301.113">
<num value="301.113">Sec. 301.113.</num>
<heading>EFFECT OF COMMISSION ORDER</heading>
<chapeau>A commission order under Section 301.112 does not affect a contract, sale, encumbrance, or lease that:</chapeau>
<paragraph identifier="/us/tx/pr/t15/c301/scF/s301.113/1">
<num value="1">(1)</num>
<content>is consummated before the commission issues the order; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scF/s301.113/2">
<num value="2">(2)</num>
<content>involves a bona fide purchaser, encumbrancer, or tenant who did not have actual notice of the charge filed under this chapter.</content>
</paragraph>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scF/s301.114">
<num value="301.114">Sec. 301.114.</num>
<heading>LICENSED OR REGULATED BUSINESS</heading>
<chapeau>If the commission issues an order with respect to a discriminatory housing practice that occurs in the course of a business subject to a licensing or regulation by a governmental agency, the commission shall, not later than the 30th day after the date the order is issued:</chapeau>
<paragraph identifier="/us/tx/pr/t15/c301/scF/s301.114/1">
<num value="1">(1)</num>
<content>send copies of the findings and the order to the governmental agency; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scF/s301.114/2">
<num value="2">(2)</num>
<content>recommend to the governmental agency appropriate disciplinary action.</content>
</paragraph>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scF/s301.115">
<num value="301.115">Sec. 301.115.</num>
<heading>ORDER IN PRECEDING FIVE YEARS</heading>
<content>If the commission issues an order against a respondent against whom another order was issued within the preceding five years under Section 301.112, the commission shall send a copy of each order to the attorney general.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t15/c301/scG">
<num value="G">SUBCHAPTER G.</num>
<heading>ENFORCEMENT BY ATTORNEY GENERAL</heading>
<section identifier="/us/tx/pr/t15/c301/scG/s301.131">
<num value="301.131">Sec. 301.131.</num>
<heading>ATTORNEY GENERAL ACTION FOR ENFORCEMENT</heading>
<subsection identifier="/us/tx/pr/t15/c301/scG/s301.131/a">
<num value="a">(a)</num>
<content>If a timely election is made under Section 301.093, the commission shall authorize and not later than the 30th day after the date the election is made the attorney general shall file in a district court a civil action seeking relief on behalf of the aggrieved person.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scG/s301.131/b">
<num value="b">(b)</num>
<content>Venue for an action is in the county in which the alleged discriminatory housing practice occurred or is about to occur.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scG/s301.131/c">
<num value="c">(c)</num>
<content>An aggrieved person may intervene in the action.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scG/s301.131/d">
<num value="d">(d)</num>
<content>If the court finds that a discriminatory housing practice has occurred or is about to occur, the court may grant as relief any relief that a court may grant in a civil action under Subchapter H.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scG/s301.131/e">
<num value="e">(e)</num>
<content>If monetary relief is sought for the benefit of an aggrieved person who does not intervene in the civil action, the court may not award the monetary relief if that aggrieved person has not complied with discovery orders entered by the court.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scG/s301.132">
<num value="301.132">Sec. 301.132.</num>
<heading>PATTERN OR PRACTICE CASE</heading>
<subsection identifier="/us/tx/pr/t15/c301/scG/s301.132/a">
<num value="a">(a)</num>
<chapeau>On the request of the commission, the attorney general may file a civil action in district court for appropriate relief if the commission has reasonable cause to believe that:</chapeau>
<paragraph identifier="/us/tx/pr/t15/c301/scG/s301.132/1">
<num value="1">(1)</num>
<content>a person is engaged in a pattern or practice of resistance to the full enjoyment of a right granted under this chapter; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scG/s301.132/2">
<num value="2">(2)</num>
<content>a person has been denied a right granted by this chapter and that denial raises an issue of general public importance.</content>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scG/s301.132/b">
<num value="b">(b)</num>
<chapeau>In an action under this section the court may:</chapeau>
<paragraph identifier="/us/tx/pr/t15/c301/scG/s301.132/1">
<num value="1">(1)</num>
<content>award preventive relief, including a permanent or temporary injunction, restraining order, or other order against the person responsible for a violation of this chapter as necessary to assure the full enjoyment of the rights granted by this chapter;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scG/s301.132/2">
<num value="2">(2)</num>
<content>award other appropriate relief, including monetary damages, reasonable attorney fees, and court costs; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scG/s301.132/3">
<num value="3">(3)</num>
<chapeau>to vindicate the public interest, assess a civil penalty against the respondent in an amount that does not exceed:</chapeau>
<subparagraph identifier="/us/tx/pr/t15/c301/scG/s301.132/A">
<num value="A">(A)</num>
<content>$50,000 for a first violation; and</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t15/c301/scG/s301.132/B">
<num value="B">(B)</num>
<content>$100,000 for a second or subsequent violation.</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scG/s301.132/c">
<num value="c">(c)</num>
<chapeau>A person may intervene in an action under this section if the person is:</chapeau>
<paragraph identifier="/us/tx/pr/t15/c301/scG/s301.132/1">
<num value="1">(1)</num>
<content>a person aggrieved by the discriminatory housing practice; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scG/s301.132/2">
<num value="2">(2)</num>
<content>a party to a conciliation agreement concerning the discriminatory housing practice.</content>
</paragraph>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scG/s301.133">
<num value="301.133">Sec. 301.133.</num>
<heading>SUBPOENA ENFORCEMENT</heading>
<content>The attorney general, on behalf of the commission or another party at whose request a subpoena is issued under this chapter, may enforce the subpoena in appropriate proceedings in district court.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t15/c301/scH">
<num value="H">SUBCHAPTER H.</num>
<heading>ENFORCEMENT BY PRIVATE PERSONS</heading>
<section identifier="/us/tx/pr/t15/c301/scH/s301.151">
<num value="301.151">Sec. 301.151.</num>
<heading>CIVIL ACTION</heading>
<subsection identifier="/us/tx/pr/t15/c301/scH/s301.151/a">
<num value="a">(a)</num>
<content>An aggrieved person may file a civil action in district court not later than the second year after the date of the occurrence or the termination of an alleged discriminatory housing practice or the breach of a conciliation agreement entered under this chapter, whichever occurs last, to obtain appropriate relief with respect to the discriminatory housing practice or breach.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scH/s301.151/b">
<num value="b">(b)</num>
<content>The two-year period does not include any time during which an administrative hearing under this chapter is pending with respect to a complaint or charge under this chapter based on the discriminatory housing practice. This subsection does not apply to actions arising from the breach of a conciliation agreement.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scH/s301.151/c">
<num value="c">(c)</num>
<content>An aggrieved person may file an action whether a complaint has been filed under Section 301.081 and without regard to the status of any complaint filed under that section.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scH/s301.151/d">
<num value="d">(d)</num>
<content>If the commission has obtained a conciliation agreement with the consent of an aggrieved person, the aggrieved person may not file an action with respect to the alleged discriminatory housing practice that forms the basis of the complaint except to enforce the terms of the agreement.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scH/s301.151/e">
<num value="e">(e)</num>
<content>An aggrieved person may not file an action with respect to an alleged discriminatory housing practice that forms the basis of a charge issued by the commission if the commission has begun a hearing on the record under this chapter with respect to the charge.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scH/s301.152">
<num value="301.152">Sec. 301.152.</num>
<heading>COURT-APPOINTED ATTORNEY</heading>
<content>On application by a person alleging a discriminatory housing practice or by a person against whom a discriminatory housing practice is alleged, the court may appoint an attorney for the person.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scH/s301.153">
<num value="301.153">Sec. 301.153.</num>
<heading>RELIEF GRANTED</heading>
<chapeau>If the court finds that a discriminatory housing practice has occurred or is about to occur, the court may award to the plaintiff:</chapeau>
<paragraph identifier="/us/tx/pr/t15/c301/scH/s301.153/1">
<num value="1">(1)</num>
<content>actual and punitive damages;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scH/s301.153/2">
<num value="2">(2)</num>
<content>reasonable attorney fees;</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scH/s301.153/3">
<num value="3">(3)</num>
<content>court costs; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scH/s301.153/4">
<num value="4">(4)</num>
<content>subject to Section 301.154, a permanent or temporary injunction, temporary restraining order, or other order, including an order enjoining the defendant from engaging in the practice or ordering appropriate affirmative action.</content>
</paragraph>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scH/s301.154">
<num value="301.154">Sec. 301.154.</num>
<heading>EFFECT OF RELIEF GRANTED</heading>
<chapeau>Relief granted under this subchapter does not affect a contract, sale, encumbrance, or lease that:</chapeau>
<paragraph identifier="/us/tx/pr/t15/c301/scH/s301.154/1">
<num value="1">(1)</num>
<content>is consummated before the granting of the relief; and</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scH/s301.154/2">
<num value="2">(2)</num>
<content>involves a bona fide purchaser, encumbrancer, or tenant who did not have actual notice of the filing of a complaint or civil action under this chapter.</content>
</paragraph>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scH/s301.155">
<num value="301.155">Sec. 301.155.</num>
<heading>INTERVENTION BY ATTORNEY GENERAL</heading>
<subsection identifier="/us/tx/pr/t15/c301/scH/s301.155/a">
<num value="a">(a)</num>
<content>On request of the commission, the attorney general may intervene in an action under this subchapter if the commission certifies that the case is of general public importance.</content>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scH/s301.155/b">
<num value="b">(b)</num>
<content>The attorney general may obtain the same relief as is available to the attorney general under Section 301.132(b).</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
<section identifier="/us/tx/pr/t15/c301/scH/s301.156">
<num value="301.156">Sec. 301.156.</num>
<heading>PREVAILING PARTY</heading>
<content>A court in a civil action brought under this chapter or the commission in an administrative hearing under Section 301.111 may award reasonable attorney fees to the prevailing party and assess court costs against the nonprevailing party.</content>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
</subchapter>
<subchapter identifier="/us/tx/pr/t15/c301/scI">
<num value="I">SUBCHAPTER I.</num>
<heading>CRIMINAL PENALTY</heading>
<section identifier="/us/tx/pr/t15/c301/scI/s301.171">
<num value="301.171">Sec. 301.171.</num>
<heading>INTIMIDATION OR INTERFERENCE</heading>
<subsection identifier="/us/tx/pr/t15/c301/scI/s301.171/a">
<num value="a">(a)</num>
<chapeau>A person commits an offense if the person, without regard to whether the person is acting under color of law, by force or threat of force intentionally intimidates or interferes with a person:</chapeau>
<paragraph identifier="/us/tx/pr/t15/c301/scI/s301.171/1">
<num value="1">(1)</num>
<content>because of the person's race, color, religion, sex, disability, familial status, or national origin and because the person is or has been selling, purchasing, renting, financing, occupying, or contracting or negotiating for the sale, purchase, rental, financing, or occupation of any dwelling or applying for or participating in a service, organization, or facility relating to the business of selling or renting dwellings; or</content>
</paragraph>
<paragraph identifier="/us/tx/pr/t15/c301/scI/s301.171/2">
<num value="2">(2)</num>
<chapeau>because the person is or has been or to intimidate the person from:</chapeau>
<subparagraph identifier="/us/tx/pr/t15/c301/scI/s301.171/A">
<num value="A">(A)</num>
<content>participating, without discrimination because of race, color, religion, sex, disability, familial status, or national origin, in an activity, service, organization, or facility described by Subdivision (1); or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t15/c301/scI/s301.171/B">
<num value="B">(B)</num>
<content>affording another person opportunity or protection to so participate; or</content>
</subparagraph>
<subparagraph identifier="/us/tx/pr/t15/c301/scI/s301.171/C">
<num value="C">(C)</num>
<content>lawfully aiding or encouraging other persons to participate, without discrimination because of race, color, religion, sex, disability, familial status, or national origin, in an activity, service, organization, or facility described by Subdivision (1).</content>
</subparagraph>
</paragraph>
</subsection>
<subsection identifier="/us/tx/pr/t15/c301/scI/s301.171/b">
<num value="b">(b)</num>
<content>An offense under this section is a Class A misdemeanor.</content>
</subsection>
<sourceCredit>Added by Acts 1993, 73rd Leg., ch. 268, Sec. 40, eff. Sept. 1, 1993.</sourceCredit>
</section>
</subchapter>
</chapter>