PROPERTY CODE TITLE 11. RESTRICTIVE COVENANTS …

1 PROPERTYCODETITLE11. be citedas Acts2001,77thLeg.,ch. 926, , , thischapter:(1)AA"Assessment"meansa regularassessment,specialassessment,or otheramounta propertyowneris requiredto pay apropertyowners associationunderthe dedicatoryinstrumentor bylaw.(2)AA"Board"meansthegoverningbodyo f a propertyowners association.(3)AA"Declaration"meansan instrumentfiledin therealpropertyrecordsof a countythatincludesrestrictivecovenantsgo verninga residentialsubdivision.(4)AA"Dedicatoryi nstrument"meanseachgoverninginstrumentco veringthe establishment,maintenance,and operationof a restrictivecovenants,bylaws,or similarinstrumentsgoverningtheadministra tionoroperationof a propertyowners association,to properlyadoptedrulesand regulationsof the propertyowners association,and toalllawfulamendmentsto thecovenants,bylaws,rules,orregulations.

2 (4-a)AA"Developmentperiod"meansa periodstatedin adeclarationduringwhicha declarantreserves:(A)AAa rightto facilitatethedevelopment,construction,an d marketingof the subdivision;or(B)AAa rightto directthesize,shape,andcompositionof the subdivision.(5)AA"Lot"meansany designatedparcelof landlocatedin a residentialsubdivision,includinganyimpro vementson thedesignatedparcel.(5-a)AA"Managementco mpany"meansa personor entity1establishedor contractedto providemanagementor administrativeserviceson behalfof a propertyowners association.(6)AA"Owner"meansa personwhoholdsrecordtitletopropertyin a residentialsubdivisionandincludesthepers onalrepresentativeof a personwho holdsrecordtitleto propertyin aresidentialsubdivision.(7)AA"Propertyow ners association"or "association"meansan incorporatedor unincorporatedassociationthat:(A)AAis designatedas therepresentativeof theownersof propertyin a residentialsubdivision;(B)AAhas a membershipprimarilyconsistingof theownersof the propertycoveredby the dedicatoryinstrumentfor theresidentialsubdivision;and(C)AAmanage sorregulatestheresidentialsubdivisionfor thebenefitof theownersof propertyin theresidentialsubdivision.

3 (8)AA"Regularassessment"meansanassessmen t,acharge,a fee,or duesthateachownerof propertywithinaresidentialsubdivisionis requiredto pay to the propertyowners associationon a regularbasisand thatis designatedfor use by thepropertyowners associationforthebenefitof theresidentialsubdivisionas providedby the restrictions.(9)AA"Residentialsubdivisio n"or "subdivision"meansa subdivision,plannedunitdevelopment,townh ouseregime,orsimilarplanneddevelopmentin whichall landhas beendividedintotwo or morepartsand is subjectto restrictionsthat:(A)AAlimita majorityof thelandsubjectto thededicatoryinstruments,excludingstreet s,commonareas,andpublicareas,toresidenti aluseforsingle-familyhomes,townhomes,or duplexesonly;(B)AAare recordedin the realpropertyrecordsofthe countyin whichthe residentialsubdivisionis located;and(C)AArequiremembershipin a propertyowners associationthathasauthorityto imposeregularor specialassessmentson the propertyin the subdivision.

4 (10)AA"Restrictions"meansoneor morerestrictivecovenantscontainedor incorporatedby referencein a properly2recordedmap,plat,replat,declara tion,or otherinstrumentfiledin therealpropertyrecordsor mapor amendmentor extensionof the restrictions.(11)AA"Restrictivecovenant" meansanycovenant,condition,or restrictioncontainedin a dedicatoryinstrument,whethermandatory,pr ohibitive,permissive,or administrative.(12)AA"Specialassessment" meansan assessment,acharge,a fee,or dues,otherthana regularassessment,thateachownerof propertylocatedin a residentialsubdivisionis requiredto pay to the propertyowners association,accordingto proceduresrequiredby the dedicatoryinstruments,for:(A)AAdefraying ,in wholeor in part,thecost,whetherincurredbeforeorafte rtheassessment,ofanyconstructionor reconstruction,unexpectedrepair,or replacementof a capitalimprovementin commonareasownedby thepropertyowners association,includingthe necessaryfixturesand personalpropertyrelatedto the commonareas;(B)AAmaintenanceand improvementof commonareasownedby the propertyowners association.

5 Or(C)AAotherpurposesofthepropertyowners associationas statedin itsarticlesof incorporationor thededicatoryinstrumentfor the residentialsubdivision.(13)AA"Verifiedma il"meansanymethodof mailingforwhichevidenceof mailingis providedby the UnitedStatesPostalServiceor a Acts2001,77thLeg.,ch. 926, , , :Acts2013,83rdLeg., ,Ch. 863 ( ), , , ,84thLeg., ,Ch. 1183( ), , , ,87thLeg., ,Ch. 951 ( ), , , CHAPTER.(a)Thischapterappliesonlyto a residentialsubdivisionthatis subjecttorestrictionsor provisionsin a declarationthatauthorizethe3propertyowne rs associationto collectregularor specialassessmentson all or a majorityof the propertyin the subdivision.(b)AAExceptas otherwiseprovidedby thischapter,thischapterappliesonlyto a propertyowners associationthatrequiresmandatorymembersh ipin theassociationforallor amajorityof theownersof residentialpropertywithinthesubdivisions ubjectto the association s dedicatoryinstruments.

6 (c)AAThischapterappliesto a residentialpropertyowners associationregardlessof whethertheentityis designatedas a"homeowners association,""communityassociation,"or similardesignationin the restrictionsor dedicatoryinstrument.(d)AAThischapterdoe snot applyto a condominiumas definedby (e)AAThe followingprovisionsof thischapterdo not applytoa propertyowners associationthatis a mixed-usemasterassociationthatexistedbef oreJanuary1, 1974,and thatdoesnothavethe authorityundera dedicatoryinstrumentor othergoverningdocumentto imposefines:(1) (c);(2) ;(3) ;(4) ;(5) ;and(6) Acts2001,77thLeg.,ch. 926, , , :Acts2007,80thLeg., ,Ch. 1367( ), , , ,82ndLeg., ,Ch. 1026( ), , , ,82ndLeg., ,Ch. 1142( ), , , ,82ndLeg., ,Ch. 1217( ), , , ,82ndLeg., ,Ch. 1282( ), , , ,83rdLeg.

7 , , ( ), (a), , ,83rdLeg., , ( ), (b), , ,84thLeg., ,Ch. 1183( ), , , (a)AAA propertyowners associationshallrecordin eachcountyin whichanyportionof theresidentialsubdivisionis locateda managementcertificate,signedand acknowledgedby an officeror the managingagentof the association,stating:(1)AAthe nameof the subdivision;(2)AAthe nameof the association;(3)AAthe recordingdatafor the subdivision;(4)AAtherecordingdataforthed eclarationandanyamendmentsto the declaration;(5)AAthe nameand mailingaddressof the association;(6)AAthename,mailingaddress, telephonenumber,ande-mailaddressof thepersonmanagingtheassociationor theassociation s designatedrepresentative;(7)AAthewebsite addressof anyInternetwebsiteonwhichtheassociation s ;(8)AAthe amountand descriptionof a fee or feeschargedby theassociationrelatingto a propertytransferin thesubdivision;and(9)AAotherinformationt heassociationconsidersappropriate.

8 (a-1)AAThe countyclerkof eachcountyin whicha managementcertificateis filedas requiredby thissectionshallrecordthemanagementcerti ficatein the realpropertyrecordsof the countyandindexthedocumentas a "PropertyOwners AssociationManagementCertificate."(b)AAT hepropertyowners associationshallrecordanamendedmanagemen tcertificatein eachcountyin whichany portionof the residentialsubdivisionis locatednot laterthanthe 30thdayafterthedatetheassociationhasnoti ceof a changein any5informationin the recordedcertificaterequiredby Subsection(a).(b-1)AANotlaterthantheseve nthdayafterthedateapropertyowners associationfilesa managementcertificateforrecordingunderSu bsection(a)or filesan amendedmanagementcertificateforrecording underSubsection(b),thepropertyowners associationshallelectronicallyfiletheman agementcertificateor amendedmanagementcertificatewiththe makingthedataaccessibleto thegeneralpublicthroughan Internetwebsite.

9 (c)AAExceptas providedunderSubsections(d)and(e),thepro pertyowners associationanditsofficers,directors,empl oyees,and agentsare not subjectto liabilityto any personfora delayin recordingor failureto recorda managementcertificatewitha countyclerk s officeor electronicallyfilethe managementcertificatewiththe TexasRealEstateCommission,unlessthe delayor failureis wilfulor causedby grossnegligence.(d)AAIf a propertyowners associationfailsto recordamanagementcertificateor an amendedmanagementcertificateunderthissec tion,the purchaser,lender,or titleinsurancecompanyoritsagentin a transactioninvolvingpropertyin thepropertyowners associationis notliableto thepropertyowners associationfor:(1)AAany amountdue to the associationon the dateof atransferto a bonafidepurchaser;and(2)AAanydebtto or claimof theassociationthataccruedbeforethe dateof a transferto a bonafidepurchaser.

10 (e)AAA lienof a propertyowners associationthatfailstofilea managementcertificateor an amendedmanagementcertificateunderthissec tionto securean amountdue on the effectivedateofa transferto a bonafidepurchaseris enforceableonlyforanamountincurredaftert he effectivedateof owneris notliableforattorney s feesincurredby a propertyowners associationrelatingto the collectionof a delinquentassessmentagainsttheowneror intereston theamountof a delinquentassessmentif the attorney s feesare incurredby the association6or the interestaccruesduringthe perioda managementcertificateis not recordedwitha countyclerkor electronicallyfiledwiththeTexasRealEstat eCommissionas requiredby thissection.(f)AAForpurposesof thissection,"bonafidepurchaser"means:(1) AAa personwhopaysvaluableconsiderationwithou tnoticeof outstandingrightsof othersand actsin goodfaith;or(2)AAa third-partylenderwhoacquiresa securityinterestin the propertyundera deedof Acts2001,77thLeg.