Texas Laws - Property Code
PROPERTY CODE
TITLE 6. UNCLAIMED PROPERTY

(a) The treasurer of the holder shall maintain a fund known as the unclaimed money fund. (6040)

(b) The treasurer of the holder shall deposit to the credit of the fund: (6041)

(1) 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; (6042)

(2) all proceeds from the sale of any property, including marketable securities, under this chapter; and (6043)

(3) any income derived from investments of the fund. (6044)

(c) The treasurer of the holder shall keep a separate record and accounting for delivered unclaimed property, other than money, before its sale. (6045)

(d) 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. (6046)

(e) 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. (6047)

(f) 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. (6048)

Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997. (6049)

Sec. 76.602. USE OF FUND. (6050)(1-click HTML)

(a) 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. (6051)

(b) 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. (6052)

(c) 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. (6053)

Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997. (6054)

Sec. 76.603. AUDIT; BUDGET. (6055)(1-click HTML)

The unclaimed money fund is subject to: (6056)

(1) audit by the auditor of the holder or an independent auditor if the holder does not have an auditor; and (6057)

(2) budgetary procedures adopted by the governing body of the holder. (6058)

Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997. (6059)

Sec. 76.701. RULES. (6060)(1-click HTML)

The treasurer of the holder may adopt rules necessary to carry out this chapter. (6061)

Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997. (6062)

Sec. 76.702. EXAMINATION OF RECORDS. (6063)(1-click HTML)

(a) 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. (6064)

(b) 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: (6065)

(1) in the course of a judicial proceeding authorized by this chapter in which the holder is a party; or (6066)

(2) under an agreement with another state allowing joint audits or the exchange of information obtained under this section. (6067)

Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997. (6068)

Sec. 76.703. ADDITIONAL PERSONNEL. (6069)(1-click HTML)

(a) 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. (6070)

(b) The salary rate of additional personnel may not exceed the rate paid to other employees of the holder for similar services. (6071)

(c) The salaries of additional personnel shall be paid in accordance with Section 76.602. (6072)

(d) The provisions of this section are subject to the budgetary procedures adopted by the governing body of the holder. (6073)

Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997. (6074)

Sec. 76.704. OFFENSE. (6075)(1-click HTML)

(a) A person commits an offense if the person: (6076)

(1) wilfully fails to file a report required by this chapter; (6077)

(2) refuses to permit examination of records in accordance with this chapter; (6078)

(3) makes a deduction from or a service charge against a dormant account or dormant deposit of funds; or (6079)

(4) violates any other provision of this chapter. (6080)

(b) An offense under this section is punishable by: (6081)

(1) a fine of not less than $500 or more than $1,000; (6082)

(2) confinement in jail for a term not to exceed six months; or (6083)

(3) both the fine and confinement. (6084)

(c) 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. (6085)

Added by Acts 1997, 75th Leg., ch. 1037, Sec. 38, eff. Sept. 1, 1997. (6086)

CHAPTER 77. REPORT, DELIVERY, AND CLAIMS PROCESS FOR UNCLAIMED RESTITUTION PAYMENTS (6087)(1-click HTML)

Sec. 77.001. APPLICABILITY. (6088)(1-click HTML)

This chapter applies to unclaimed restitution payments that are presumed abandoned under Section 76.013 or 508.322, Government Code. (6089)

Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017. (6090)

Sec. 77.051. PROPERTY REPORT. (6091)(1-click HTML)

(a) Notwithstanding the confidentiality provisions of Chapters 57, 57A, 57B, and 57D, 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. (6092)

(b) The property report must include, if known by the holder: (6093)

(1) 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; (6094)

(2) 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; (6095)

(3) the date of the last transaction with the victim concerning the restitution payments; and (6096)

(4) other information that the comptroller requires to be disclosed as necessary for the administration of this chapter. (6097)

(c) 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. (6098)

Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017. (6099)

Sec. 77.052. NOTICE BY HOLDER REQUIRED. (6100)(1-click HTML)

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: (6101)

(1) the holder is holding the restitution payment to which the victim is entitled; and (6102)

(2) 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. (6103)

Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017. (6104)

Sec. 77.053. SIGNED STATEMENT. (6105)(1-click HTML)

(a) 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. (6106)

(b) The statement must include the following sentence: (6107)

"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." (6108)

Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017. (6109)

Sec. 77.054. CONFIDENTIALITY OF PROPERTY REPORT. (6110)(1-click HTML)

(a) The property report filed with the comptroller under Section 77.051 is confidential and is not subject to disclosure under Chapter 552, Government Code. (6111)

(b) 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. (6112)

Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017. (6113)

Sec. 77.055. EXCEPTION TO LIABILITY. (6114)(1-click HTML)

(a) 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. (6115)

(b) 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. (6116)

Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017. (6117)

Sec. 77.101. NOTICE. (6118)(1-click HTML)

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. (6119)

Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017. (6120)

Sec. 77.102. PUBLICATION. (6121)(1-click HTML)

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. (6122)

Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017. (6123)

Sec. 77.151. DELIVERY OF PROPERTY TO COMPTROLLER. (6124)(1-click HTML)

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. (6125)

Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017. (6126)

Sec. 77.152. RESPONSIBILITY AFTER DELIVERY. (6127)(1-click HTML)

(a) 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. (6128)

(b) 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. (6129)

(c) 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. (6130)

Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017. (6131)

SUBCHAPTER E. CLAIM FOR DELIVERED PROPERTY (6132)(1-click HTML)
Sec. 77.201. CLAIM FILED WITH COMPTROLLER. (6133)(1-click HTML)

(a) The comptroller shall review the validity of each claim for an unclaimed restitution payment filed under this section. (6134)

(b) 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. (6135)

(c) 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. (6136)

(d) On receipt of a claim form and all necessary documentation as may be appropriate under the circumstances, the comptroller may approve the claim of: (6137)

(1) the victim; (6138)

(2) if the victim died testate: (6139)

(A) 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 (6140)

(B) the executor of the victim's last will and testament who holds current letters testamentary; (6141)

(3) if the victim died intestate or is deceased and presumed intestate: (6142)

(A) the legal heirs of the victim as provided by Chapter 201, Estates Code; or (6143)

(B) the court-appointed administrator of the victim's estate, on behalf of the legal heirs of the victim; (6144)

(4) 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; (6145)

(5) 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; (6146)

(6) if the victim is a trust: (6147)

(A) the trustee, on behalf of the trust; or (6148)

(B) the beneficiaries of the trust, if the trust is dissolved; (6149)

(7) if the victim is a corporation: (6150)

(A) the president or chair of the board of directors of the corporation, on behalf of the corporation; (6151)

(B) 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 (6152)

(C) a receiver appointed for the corporation; (6153)

(8) if the victim is a corporation that has been dissolved, liquidated, or otherwise terminated: (6154)

(A) the surviving shareholders of the corporation in proportion to their ownership of the corporation at the time of dissolution, liquidation, or termination; (6155)

(B) the corporation's bankruptcy trustee; or (6156)

(C) a receiver appointed for the corporation; (6157)

(9) if the victim is a state agency, the comptroller; or (6158)

(10) any other person that is entitled to receive the unclaimed restitution payment under other law or comptroller policy. (6159)

(e) Except as provided by Subsections (f) and (g), the comptroller may not approve the claim of or pay a claim to the following persons: (6160)

(1) 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; (6161)

(2) a receiver, if the receiver is appointed at the request of a person the comptroller may not pay under Subdivision (1); (6162)

(3) 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 (6163)

(4) 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. (6164)

(f) 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. (6165)

(g) 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. (6166)

Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017. (6167)

Sec. 77.202. CLAIMS NOT ASSIGNABLE. (6168)(1-click HTML)

Notwithstanding Section 9.406(f), Business & Commerce Code, an interest in a claim under this chapter may not be assigned. (6169)

Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017. (6170)

Sec. 77.203. CLAIM FILED WITH HOLDER. (6171)(1-click HTML)

(a) 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. (6172)

(b) The comptroller may reimburse the holder for a valid claim paid under this section. (6173)

(c) 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. (6174)

(d) 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). (6175)

(e) 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. (6176)

Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017. (6177)

Sec. 77.204. APPEAL. (6178)(1-click HTML)

(a) 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. (6179)

(b) 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. (6180)

(c) An appeal under this section must be made by filing suit against the state in a district court in Travis County. (6181)

(d) A court shall try an action filed under this section de novo and shall apply the rules of practice of the court. (6182)

Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017. (6183)

Sec. 77.205. LIMITATION OF LIABILITY. (6184)(1-click HTML)

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. (6185)

Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017. (6186)

Sec. 77.206. FEE FOR RECOVERY. (6187)(1-click HTML)

(a) 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. (6188)

(b) 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. (6189)

Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017. (6190)

SUBCHAPTER F. UNCLAIMED PAYMENTS (6191)(1-click HTML)
Sec. 77.251. UNCLAIMED RESTITUTION PAYMENTS. (6192)(1-click HTML)

(a) The comptroller shall maintain a record that documents unclaimed restitution payments received under this chapter. (6193)

(b) The comptroller shall deposit all unclaimed restitution payments to the credit of the compensation to victims of crime auxiliary fund in the state treasury. (6194)

(c) Income or interest derived from unclaimed restitution payments deposited in the fund shall remain in the compensation to victims of crime auxiliary fund. (6195)

Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017. (6196)

Sec. 77.252. USE OF MONEY. (6197)(1-click HTML)

(a) Except as provided by Subsection (b) and Chapter 56, 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. (6198)

(b) 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. (6199)

Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017. (6200)

Sec. 77.253. EXCESS CLAIMS. (6201)(1-click HTML)

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. (6202)

Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017. (6203)

SUBCHAPTER G. ENFORCEMENT (6204)(1-click HTML)
Sec. 77.301. RULES. (6205)(1-click HTML)

The comptroller may adopt rules necessary to carry out this chapter. (6206)

Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017. (6207)

Sec. 77.302. EXAMINATION OF RECORDS. (6208)(1-click HTML)

(a) 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. (6209)

(b) 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. (6210)

Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017. (6211)

Sec. 77.303. AUTHORITY TO TAKE TESTIMONY AND ISSUE ADMINISTRATIVE SUBPOENAS. (6212)(1-click HTML)

(a) 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. (6213)

(b) 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. (6214)

Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017. (6215)

Sec. 77.304. ENFORCEMENT OF SUBPOENAS. (6216)(1-click HTML)

(a) 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. (6217)

(b) 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. (6218)

Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017. (6219)

Sec. 77.305. VENUE FOR PRE-COMPLIANCE REVIEW. (6220)(1-click HTML)

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. (6221)

Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017. (6222)

Sec. 77.306. ASSISTANCE IN ENFORCEMENT. (6223)(1-click HTML)

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. (6224)

Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017. (6225)

Sec. 77.307. PENALTY. (6226)(1-click HTML)

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. (6227)

Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017. (6228)

Sec. 77.308. WAIVER OR ABATEMENT OF PENALTY. (6229)(1-click HTML)

The comptroller may waive any penalty or interest imposed under this chapter. (6230)

Added by Acts 2017, 85th Leg., R.S., Ch. 351 (H.B. 1866), Sec. 4, eff. September 1, 2017. (6231)

TITLE 6A. PROPERTY LOANED TO MUSEUMS (6232)(1-click HTML)

CHAPTER 80. OWNERSHIP, CONSERVATION, AND DISPOSITION OF PROPERTY LOANED TO MUSEUM (6233)(1-click HTML)

Sec. 80.001. PURPOSES. (6234)(1-click HTML)

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. (6235)

Added by Acts 1987, 70th Leg., ch. 1076, Sec. 1, eff. Sept. 1, 1987. (6236)

Sec. 80.002. DEFINITIONS. (6237)(1-click HTML)

In this chapter: (6238)

(1) "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. (6239)

(2) "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. (6240)

(3) "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. (6241)

(4) "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. (6242)

Added by Acts 1987, 70th Leg., ch. 1076, Sec. 1, eff. Sept. 1, 1987. (6243)

Sec. 80.003. NOTICE TO LENDER. (6244)(1-click HTML)

(a) 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. (6245)

(b) 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. (6246)

(c) 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. (6247)

Added by Acts 1987, 70th Leg., ch. 1076, Sec. 1, eff. Sept. 1, 1987. (6248)

Sec. 80.004. ABANDONED PROPERTY; NOTICE; TITLE TO PROPERTY. (6249)(1-click HTML)

(a) 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. (6250)

(b) 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. (6251)

Added by Acts 1987, 70th Leg., ch. 1076, Sec. 1, eff. Sept. 1, 1987. (6252)

Sec. 80.005. INTENT TO TERMINATE LOAN; FORM; TRANSFORMATION OF SPECIFIED TERM TO INDEFINITE TERM. (6253)(1-click HTML)

(a) 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: (6254)

The records of (name of museum) (6255)

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. (6256)

(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. (6257)

(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. (6258)

Added by Acts 1987, 70th Leg., ch. 1076, Sec. 1, eff. Sept. 1, 1987. (6259)

Sec. 80.006. CONSERVATION OR DISPOSAL OF LOANED PROPERTY; CONDITIONS; LIEN; LIABILITY OF MUSEUM. (6260)(1-click HTML)

(a) 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: (6261)

(1) 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 (6262)

(2) 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. (6263)

(b) If a museum applies conservation measures to or disposes of property under Subsection (a), the museum: (6264)

(1) has a lien on the property and on the proceeds from any disposition of the property for the costs incurred by the museum; and (6265)

(2) is not liable for injury to or loss of the property if the museum: (6266)

(A) 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 (6267)

(B) exercised reasonable care in the choice and application of the conservation measures. (6268)

Added by Acts 1987, 70th Leg., ch. 1076, Sec. 1, eff. Sept. 1, 1987. (6269)

Sec. 80.007. ACTION TO RECOVER PROPERTY; LIMITATIONS. (6270)(1-click HTML)

(a) 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. (6271)

(b) 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. (6272)

(c) 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). (6273)

(d) 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). (6274)

Added by Acts 1987, 70th Leg., ch. 1076, Sec. 1, eff. Sept. 1, 1987. (6275)

Sec. 80.008. NOTICE OF PROVISIONS OF CHAPTER; LENDER'S NOTICES. (6276)(1-click HTML)

(a) 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. (6277)

(b) 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. (6278)

Added by Acts 1987, 70th Leg., ch. 1076, Sec. 1, eff. Sept. 1, 1987. (6279)

TITLE 7. CONDOMINIUMS (6280)(1-click HTML)

CHAPTER 81. CONDOMINIUMS CREATED BEFORE ADOPTION OF UNIFORM CONDOMINIUM ACT (6281)(1-click HTML)

SUBCHAPTER A. PROVISIONS GENERALLY APPLICABLE TO CONDOMINIUMS (6282)(1-click HTML)
Sec. 81.001. SHORT TITLE. (6283)(1-click HTML)

This chapter may be cited as the Condominium Act. (6284)

Acts 1983, 68th Leg., p. 3616, ch. 576, Sec. 1, eff. Jan. 1, 1984. (6285)

Sec. 81.0011. APPLICABILITY. (6286)(1-click HTML)

(a) 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. (6287)

(b) 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. (6288)

Added by Acts 1993, 73rd Leg., ch. 244, Sec. 3, eff. Jan. 1, 1994. (6289)

Sec. 81.002. DEFINITIONS. (6290)(1-click HTML)

In this chapter: (6291)

(1) "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. (6292)

(2) "Building" includes each principal structure on or to be erected on real property dedicated in a declaration to a condominium regime. (6293)

(3) "Condominium" means a form of real property ownership that combines separate ownership of individual apartments or units with common ownership of other elements. (6294)

(4) "Council of owners" means all the apartment owners in a condominium project. (6295)

(5) "Declaration" means the instrument that establishes property under a condominium regime. (6296)

(6) "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: (6297)

(A) land on which the building is erected; (6298)

(B) foundations, bearing walls and columns, roofs, halls, lobbies, stairways, and entrance, exit, and communication ways; (6299)

(C) basements, flat roofs, yards, and gardens, except as otherwise provided; (6300)

(D) premises for the lodging of janitors or persons in charge of the building, except as otherwise provided; (6301)

(E) 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 (6302)

(F) elevators and elevator shafts, garbage incinerators, and all other devices and installations generally existing for common use. (6303)

(7) "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. (6304)

(8) "Master deed" means a deed that establishes property under a condominium regime. (6305)

(9) "Master lease" means a lease that establishes property under a condominium regime. (6306)

(10) "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. (6307)

(11) "Property" means real property, whether leased or owned, the improvements on the property, and the incorporeal rights that are appurtenant to the property. (6308)

Acts 1983, 68th Leg., p. 3616, ch. 576, Sec. 1, eff. Jan. 1, 1984. (6309)

Sec. 81.003. APPLICABILITY OF LOCAL ORDINANCES AND REGULATIONS. (6310)(1-click HTML)

(a) A planning or zoning commission of a county or municipality may adopt regulations governing condominium regimes that supplement this chapter. (6311)

(b) 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. (6312)

Acts 1983, 68th Leg., p. 3617, ch. 576, Sec. 1, eff. Jan. 1, 1984. (6313)

SUBCHAPTER B. CREATION, ALTERATION, AND TERMINATION OF CONDOMINIUMS (6314)(1-click HTML)
Sec. 81.101. CREATION OF CONDOMINIUM. (6315)(1-click HTML)

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. (6316)

Acts 1983, 68th Leg., p. 3618, ch. 576, Sec. 1, eff. Jan. 1, 1984. (6317)

Sec. 81.102. CONTENTS OF DECLARATION, MASTER DEED, OR MASTER LEASE. (6318)(1-click HTML)

(a) A declaration, master deed, or master lease for a condominium must contain: (6319)

(1) 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; (6320)

(2) 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; (6321)

(3) 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; (6322)

(4) a description of the general common elements that are not described under Subdivision 1; (6323)

(5) a description of the limited common elements; (6324)

(6) each apartment's fractional or percentage interest in the entire condominium regime; (6325)

(7) 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 (6326)

(8) 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. (6327)

(b) A declaration, master deed, or master lease for a condominium may contain any covenants or other matters the declarant considers appropriate. (6328)

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. (6329)

Sec. 81.103. PUBLIC RECORDS. (6330)(1-click HTML)

(a) Each county clerk shall maintain suitable records called "Condominium Records" in which the clerk shall record master deeds, master leases, and declarations for condominiums. (6331)

(b) A county clerk shall record plats and other instruments in a declaration without prior approval from any other authority. (6332)

(c) 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. (6333)

Acts 1983, 68th Leg., p. 3618, ch. 576, Sec. 1, eff. Jan. 1, 1984. (6334)

Sec. 81.104. APARTMENT OWNERSHIP. (6335)(1-click HTML)

(a) 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. (6336)

(b) An individual title or interest in an apartment in a condominium regime is recordable. (6337)

(c) The entire interest in the condominium regime shall be divided among the apartments. (6338)

(d) A person may own an apartment in a condominium regime jointly or in common with others. (6339)

(e) 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. (6340)

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. (6341)

Sec. 81.105. APARTMENT BOUNDARIES. (6342)(1-click HTML)

(a) 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. (6343)

(b) 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. (6344)

(c) 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. (6345)

Acts 1983, 68th Leg., p. 3619, ch. 576, Sec. 1, eff. Jan. 1, 1984. (6346)

Sec. 81.106. APARTMENT DEEDS. (6347)(1-click HTML)

A deed to an apartment in a condominium regime must: (6348)

(1) include by reference the plats in the declaration; (6349)

(2) state the encumbrances against the apartment; (6350)

(3) describe the apartment according to the plat; and (6351)

(4) state the apartment's fractional or percentage interest in the condominium regime. (6352)

Acts 1983, 68th Leg., p. 3620, ch. 576, Sec. 1, eff. Jan. 1, 1984. (6353)

Sec. 81.107. INTERESTS IN COMMON ELEMENTS. (6354)(1-click HTML)

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. (6355)

Acts 1983, 68th Leg., p. 3620, ch. 576, Sec. 1, eff. Jan. 1, 1984. (6356)

Sec. 81.108. PARTITION OF COMMON ELEMENTS. (6357)(1-click HTML)

(a) 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. (6358)

(b) 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. (6359)

(c) An agreement contrary to this section is void. (6360)

Acts 1983, 68th Leg., p. 3621, ch. 576, Sec. 1, eff. Jan. 1, 1984. (6361)

Sec. 81.109. CONVEYANCE OF COMMON ELEMENTS. (6362)(1-click HTML)

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. (6363)

Acts 1983, 68th Leg., p. 3622, ch. 576, Sec. 1, eff. Jan. 1, 1984. (6364)

Sec. 81.110. TERMINATION OF CONDOMINIUM REGIME. (6365)(1-click HTML)

(a) 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. (6366)

(b) 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. (6367)

(c) Property that has been removed from a condominium regime may be dedicated to another condominium regime at any time. (6368)

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. (6369)

Sec. 81.111. AMENDMENT OF CONDOMINIUM DECLARATION. (6370)(1-click HTML)

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. (6371)

Added by Acts 1984, 68th Leg., 2nd C.S., ch. 18, Sec. 9(d), eff. Oct. 2, 1984. (6372)

Sec. 81.112. RESTRICTION RELATING TO CLUB MEMBERSHIP. (6373)(1-click HTML)

(a) 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. (6374)

(b) A provision described by this section may not be enacted or renewed as a bylaw by a council of owners. (6375)

Added by Acts 2003, 78th Leg., ch. 1101, Sec. 1, eff. Sept. 1, 2003. (6376)

SUBCHAPTER C. CONDOMINIUM MANAGEMENT (6377)(1-click HTML)
Sec. 81.201. AUTHORITY OF COUNCIL OF OWNERS. (6378)(1-click HTML)

(a) The council of owners of a condominium regime may adopt and amend bylaws. (6379)

(b) 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. (6380)

Acts 1983, 68th Leg., p. 3621, ch. 576, Sec. 1, eff. Jan. 1, 1984. (6381)

Sec. 81.202. BYLAWS. (6382)(1-click HTML)

The bylaws of a condominium regime govern the administration of the buildings that comprise the regime. (6383)

Acts 1983, 68th Leg., p. 3621, ch. 576, Sec. 1, eff. Jan. 1, 1984. (6384)

Sec. 81.203. VOTING MAJORITY. (6385)(1-click HTML)

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. (6386)

Acts 1983, 68th Leg., p. 3621, ch. 576, Sec. 1, eff. Jan. 1, 1984. (6387)

Sec. 81.204. MAINTENANCE OF CONDOMINIUM. (6388)(1-click HTML)

(a) An apartment owner in a condominium regime is responsible for the apartment owner's pro rata share of: (6389)

(1) the expenses to administer the condominium regime and to maintain and repair the general common elements; (6390)

(2) in proper cases, the expenses to administer the limited common elements of the buildings in the condominium regime; and (6391)

(3) other expenses approved by the council of owners. (6392)

(b) 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. (6393)

Acts 1983, 68th Leg., p. 3622, ch. 576, Sec. 1, eff. Jan. 1, 1984. (6394)

Sec. 81.205. INSURANCE. (6395)(1-click HTML)

(a) 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. (6396)

(b) 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. (6397)

(c) 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. (6398)

Acts 1983, 68th Leg., p. 3622, ch. 576, Sec. 1, eff. Jan. 1, 1984. (6399)

Sec. 81.206. DISPOSITION OF INSURANCE PROCEEDS. (6400)(1-click HTML)

(a) 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. (6401)

(b) 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. (6402)

Acts 1983, 68th Leg., p. 3622, ch. 576, Sec. 1, eff. Jan. 1, 1984. (6403)

Sec. 81.207. INSUFFICIENT INSURANCE. (6404)(1-click HTML)

(a) 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. (6405)

(b) 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. (6406)

(c) 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. (6407)

Acts 1983, 68th Leg., p. 3623, ch. 576, Sec. 1, eff. Jan. 1, 1984. (6408)

Sec. 81.208. ASSESSMENTS DUE ON CONVEYANCE. (6409)(1-click HTML)

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: (6410)

(1) 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 (6411)

(2) an obligation due under a validly recorded mortgage. (6412)

Acts 1983, 68th Leg., p. 3623, ch. 576, Sec. 1, eff. Jan. 1, 1984. (6413)

Sec. 81.209. CONDOMINIUM RECORDS. (6414)(1-click HTML)

(a) 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. (6415)

(b) 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. (6416)

(c) 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. (6417)

Acts 1983, 68th Leg., p. 3625, ch. 576, Sec. 1, eff. Jan. 1, 1984. (6418)

Sec. 81.210. LOANS AS ELIGIBLE INVESTMENTS. (6419)(1-click HTML)

(a) 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. (6420)

(b) 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. (6421)

(c) 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. (6422)

(d) 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. (6423)

Acts 1983, 68th Leg., p. 3625, ch. 576, Sec. 1, eff. Jan. 1, 1984. (6424)

CHAPTER 82. UNIFORM CONDOMINIUM ACT (6425)(1-click HTML)

Sec. 82.001. SHORT TITLE. (6426)(1-click HTML)

This chapter may be cited as the Uniform Condominium Act. (6427)

Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994. (6428)

Sec. 82.002. APPLICABILITY. (6429)(1-click HTML)

(a) 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: (6430)

(1) 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 (6431)

(2) 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. (6432)

(b) 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. (6433)

(c) 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. (6434)

(d) 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. (6435)

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. (6436)

Amended by: (6437)

Acts 2009, 81st Leg., R.S., Ch. 1323 (H.B. 3128), Sec. 1, eff. September 1, 2009. (6438)

Acts 2013, 83rd Leg., R.S., Ch. 678 (H.B. 2075), Sec. 1, eff. September 1, 2013. (6439)

Sec. 82.003. DEFINITIONS. (6440)(1-click HTML)

(a) In this chapter: (6441)

(1) "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. (6442)

(2) "Allocated interests" means the undivided interest in the common elements, the common expense liability, and votes in the association allocated to each unit. (6443)

(3) "Association" means the unit owners' association organized under Section 82.101. (6444)

(4) "Board" means the board of directors or the body, regardless of name, designated to act on behalf of the association. (6445)

(5) "Common elements" means all portions of a condominium other than the units and includes both general and limited common elements. (6446)

(6) "Common expense liability" means the liability for common expenses allocated to each unit. (6447)

(7) "Common expenses" means expenditures made by or financial liabilities of the association, together with any allocations to reserves. (6448)

(8) "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. (6449)

(9) "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. (6450)

(10) "Declarant" means a person, or group of persons acting in concert, who: (6451)

(A) as part of a common promotional plan, offers to dispose of the person's interest in a unit not previously disposed of; or (6452)

(B) reserves or succeeds to any special declarant right. (6453)

(11) "Declaration" means an instrument, however denominated, that creates a condominium, and any amendment to that instrument. (6454)

(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: (6455)

(A) restrictive covenants, bylaws, or similar instruments governing the administration or operation of a unit owners' association; (6456)

(B) properly adopted rules and regulations of the unit owners' association; or (6457)

(C) all lawful amendments to the covenants, bylaws, instruments, rules, or regulations. (6458)

(12) "Development rights" means a right or combination of rights reserved by a declarant in the declaration to: (6459)

(A) add real property to a condominium; (6460)

(B) create units, common elements, or limited common elements within a condominium; (6461)

(C) subdivide units or convert units into common elements; or (6462)

(D) withdraw real property from a condominium. (6463)

(13) "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. (6464)

(14) "General common elements" means common elements that are not limited common elements. (6465)

(15) "Identifying number" means a symbol or address that identifies only one unit in a condominium. (6466)

(16) "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. (6467)

(17) "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. (6468)

(18) "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. (6469)

(19) "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. (6470)

(20) "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. (6471)

(21) "Residential purposes" means recreational or dwelling purposes, or both. (6472)

(22) "Special declarant rights" means rights reserved for the benefit of a declarant to: (6473)

(A) complete improvements indicated on plats and plans filed with the declaration; (6474)

(B) exercise any development right; (6475)

(C) make the condominium part of a larger condominium or a planned community; (6476)

(D) maintain sales, management, and leasing offices, signs advertising the condominium, and models; (6477)

(E) 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 (6478)

(F) appoint or remove any officer or board member of the association during any period of declarant control. (6479)

(23) "Unit" means a physical portion of the condominium designated for separate ownership or occupancy, the boundaries of which are described by the declaration. (6480)

(24) "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. (6481)

(b) 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. (6482)

Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994. (6483)

Amended by: (6484)

Acts 2013, 83rd Leg., R.S., Ch. 678 (H.B. 2075), Sec. 2, eff. September 1, 2013. (6485)

Sec. 82.004. VARIATION BY AGREEMENT. (6486)(1-click HTML)

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. (6487)

Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994. (6488)

Sec. 82.005. SEPARATE TITLES AND TAXATION. (6489)(1-click HTML)

(a) 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. (6490)

(b) 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. (6491)

(c) 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. (6492)

(d) 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. (6493)

Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994. (6494)

Sec. 82.006. APPLICABILITY OF LOCAL ORDINANCES, REGULATIONS, AND BUILDING CODES. (6495)(1-click HTML)

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. (6496)

Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994. (6497)

Sec. 82.007. CONDEMNATION. (6498)(1-click HTML)

(a) 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. (6499)

(b) 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. (6500)

(c) 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. (6501)

(d) The court decree shall be recorded in each county in which any portion of the condominium is located. (6502)

Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994. (6503)

Sec. 82.008. VENUE. (6504)(1-click HTML)

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. (6505)

Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994. (6506)

Sec. 82.051. CREATION OF CONDOMINIUM. (6507)(1-click HTML)

(a) 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. (6508)

(b) 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. (6509)

(c) 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. (6510)

(d) 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. (6511)

(e) 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. (6512)

(f) 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 plat, replat, or amended plat or replat is filed after September 1 of a year, the plat, replat, or amended plat or replat must also have attached to it a tax receipt issued by the collector for each taxing unit with jurisdiction of the property indicating that the taxes imposed by the taxing unit for the current year have been paid or, if the taxes for the current year have not been calculated, a statement from the collector for the taxing unit indicating that the taxes to be imposed by that taxing unit for the current year have not been calculated. 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. (6513)

(g) 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. (6514)

Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994. (6515)

Amended by: (6516)

Acts 2007, 80th Leg., R.S., Ch. 289 (H.B. 989), Sec. 2, eff. September 1, 2007. (6517)

Acts 2007, 80th Leg., R.S., Ch. 1092 (H.B. 3232), Sec. 2, eff. June 15, 2007. (6518)

Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 27.001(77), eff. September 1, 2009. (6519)

Sec. 82.052. UNIT BOUNDARIES. (6520)(1-click HTML)

Except as otherwise provided by the declaration or plat: (6521)

(1) 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; (6522)

(2) 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; (6523)

(3) 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 (6524)

(4) 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. (6525)

Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994. (6526)

Sec. 82.053. CONSTRUCTION AND VALIDITY OF DECLARATION AND BYLAWS. (6527)(1-click HTML)

(a) The provisions of the declaration and bylaws are severable. (6528)

(b) The rule against perpetuities may not be applied to defeat any provision of the declaration, bylaws, or rules of the association. (6529)

(c) 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. (6530)

(d) 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. (6531)

Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994. (6532)

Sec. 82.054. DESCRIPTION OF UNITS. (6533)(1-click HTML)

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: (6534)

(1) the name of the condominium; (6535)

(2) the recording data for the declaration, including any amendments, plats, and plans; (6536)

(3) the county in which the condominium is located; and (6537)

(4) the identifying number of the unit. (6538)

Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994. (6539)

Sec. 82.055. CONTENTS OF DECLARATION FOR ALL CONDOMINIUMS. (6540)(1-click HTML)

The declaration for a condominium must contain: (6541)

(1) 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; (6542)

(2) the name of each county in which any part of the condominium is located; (6543)

(3) a legally sufficient description of the real property included in the condominium; (6544)

(4) a description of the boundaries of each unit created by the declaration, including the unit's identifying number; (6545)

(5) a statement of the maximum number of units that the declarant reserves the right to create; (6546)

(6) a description of the limited common elements other than those listed in Sections 82.052(2) and (4); (6547)

(7) 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; (6548)

(8) an allocation to each unit of its allocated interests; (6549)

(9) any restrictions on use, occupancy, or alienation of the units; (6550)

(10) 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; (6551)

(11) the method of amending the declaration; (6552)

(12) 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; (6553)

(13) 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; (6554)

(14) 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; (6555)

(15) 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: (6556)

(A) 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 (6557)

(B) 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; (6558)

(16) all matters required by this chapter to be stated in the declaration; and (6559)

(17) any other matters the declarant considers appropriate. (6560)

Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994. (6561)

Sec. 82.056. LEASEHOLD CONDOMINIUMS. (6562)(1-click HTML)

(a) 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: (6563)

(1) the recording data for the lease; (6564)

(2) the date on which the lease is scheduled to expire; (6565)

(3) a legally sufficient description of the real property subject to the lease; (6566)

(4) 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; (6567)

(5) 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 (6568)

(6) 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. (6569)

(b) 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. (6570)

(c) 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. (6571)

(d) 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. (6572)

Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994. (6573)

Sec. 82.057. ALLOCATION OF COMMON ELEMENT INTERESTS, VOTES, AND COMMON EXPENSE LIABILITIES. (6574)(1-click HTML)

(a) 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. (6575)

(b) 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. (6576)

(c) The declaration may provide: (6577)

(1) that different allocations of votes must be made to the units on particular matters specified in the declaration; and (6578)

(2) for class voting on specified issues affecting the class if necessary to protect valid interests of the class. (6579)

(d) 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. (6580)

(e) 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. (6581)

(f) 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. (6582)

Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994. (6583)

Sec. 82.058. LIMITED COMMON ELEMENTS. (6584)(1-click HTML)

(a) 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. (6585)

(b) 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. (6586)

(c) 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. (6587)

Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994. (6588)

Sec. 82.059. PLATS AND PLANS. (6589)(1-click HTML)

(a) 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. (6590)

(b) Each plat must show: (6591)

(1) the name and a survey or general schematic map of the entire condominium; (6592)

(2) 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; (6593)

(3) a legally sufficient description of any real property subject to development rights, labeled to identify the rights applicable to each parcel; (6594)

(4) the extent of any encroachments by or on any portion of the condominium; (6595)

(5) 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; (6596)

(6) the location and dimensions of any vertical unit boundaries not shown or projected on recorded plans and the unit's identifying number; (6597)

(7) the location, with reference to established data, of any horizontal unit boundaries not shown or projected on recorded plans and the unit's identifying number; (6598)

(8) 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"; (6599)

(9) the distance between noncontiguous parcels of real property constituting the condominium; (6600)

(10) the location and dimensions of limited common elements, other than those described by Sections 82.052(2) and (4); (6601)

(11) in the case of real property not subject to development rights, all other matters required by law on land surveys; and (6602)

(12) 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. (6603)

(c) 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." (6604)

(d) To the extent not shown on the plats, plans must show: (6605)

(1) the location and dimensions of the vertical boundaries of each unit, and the unit's identifying number; (6606)

(2) the horizontal unit boundaries, with reference to established data, and the unit's identifying number; and (6607)

(3) any units, appropriately identified, in which the declarant has reserved the right to create additional units or common elements. (6608)

(e) 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. (6609)

(f) 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. (6610)

(g) 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. (6611)

Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994. (6612)

Sec. 82.060. EXERCISE OF DEVELOPMENT RIGHT. (6613)(1-click HTML)

(a) 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. (6614)

(b) 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. (6615)

(c) Whenever a declarant exercises a development right to subdivide or convert a unit previously created into additional units, common elements, or both: (6616)

(1) 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 (6617)

(2) 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. (6618)

(d) If the declaration provides that all or a portion of the real property is subject to the development right of withdrawal: (6619)

(1) 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 (6620)

(2) 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. (6621)

Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994. (6622)

Sec. 82.061. ALTERATIONS OF UNITS. (6623)(1-click HTML)

(a) Subject to the provisions of the declaration and other provisions of law, a unit owner: (6624)

(1) 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; (6625)

(2) 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 (6626)

(3) 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. (6627)

(b) Removal of partitions or creation of apertures under Subsection (a)(3) is not an alteration of boundaries. (6628)

Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994. (6629)

Sec. 82.062. RELOCATION OF BOUNDARIES BETWEEN ADJOINING UNITS. (6630)(1-click HTML)

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. (6631)

Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994. (6632)

Sec. 82.063. SUBDIVISION OF UNITS. (6633)(1-click HTML)

(a) 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. (6634)

(b) 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. (6635)

Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994. (6636)

Sec. 82.064. EASEMENT FOR ENCROACHMENTS. (6637)(1-click HTML)

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. (6638)

Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994. (6639)

Sec. 82.065. USE FOR SALES PURPOSES. (6640)(1-click HTML)

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. (6641)

Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994. (6642)

Sec. 82.066. EASEMENT RIGHTS. (6643)(1-click HTML)

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. (6644)

Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994. (6645)

Sec. 82.067. AMENDMENT OF DECLARATION. (6646)(1-click HTML)

(a) 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: (6647)

(1) 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; (6648)

(2) 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 (6649)

(3) by any method permitted by the declaration. (6650)

(b) The amendment procedures of this section do not apply to amendments that may be executed by: (6651)

(1) a declarant under Section 82.051(c), 82.059(f), or 82.060 or Subsection (f); (6652)

(2) the association under Section 82.007, 82.056(d), 82.058(c), 82.062, or 82.063 or Subsection (f); or (6653)

(3) certain unit owners under Section 82.058(b), 82.062, 82.063(b), or 82.068(b). (6654)

(c) 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. (6655)

(d) To be effective, an amendment to the declaration must be recorded in each county in which any portion of the condominium is located. (6656)

(e) 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. (6657)

(f) 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. (6658)

(g) 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. (6659)

(h) An association may amend the declaration to authorize the board: (6660)

(1) 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; (6661)

(2) 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 (6662)

(3) 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. (6663)

Added by Acts 1993, 73rd Leg., ch. 244, Sec. 1, eff. Jan. 1, 1994. (6664)

Sec. 82.0675. RESTRICTION RELATING TO CLUB MEMBERSHIP. (6665)(1-click HTML)

(a) 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. (6666)

(b) A provision described by this section may not be enacted or renewed as a bylaw by the unit owners' association. (6667)

  

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