Bill Text: TX HB1196 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to foreclosure of a property owners' association's assessment lien.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-03-07 - Left pending in committee [HB1196 Detail]
Download: Texas-2011-HB1196-Introduced.html
| 82R6641 PMO-D | ||
| By: Dutton | H.B. No. 1196 | |
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| relating to foreclosure of a property owners' association's | ||
| assessment lien. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Chapter 209, Property Code, is amended by adding | ||
| Sections 209.0091 and 209.0092 to read as follows: | ||
| Sec. 209.0091. APPRAISAL AND MINIMUM SALE PRICE REQUIRED. | ||
| (a) Before a property owners' association files suit to foreclose | ||
| an assessment lien or initiates foreclosure of the lien under | ||
| Section 51.002, the association must: | ||
| (1) obtain and pay for an independent appraisal of the | ||
| fair market value of the property owner's property; and | ||
| (2) provide a copy of the appraisal to the property | ||
| owner by certified mail, return receipt requested, or by delivery | ||
| by the United States Postal Service with signature confirmation. | ||
| (b) Regardless of the amount of the lien, a property owners' | ||
| association may not conclude a judicial or nonjudicial foreclosure | ||
| sale of a property for which the property owners' association | ||
| obtained an appraisal under Subsection (a) unless the final sale | ||
| price at the foreclosure sale is at least 80 percent of the fair | ||
| market value as shown in the appraisal. | ||
| Sec. 209.0092. PRIORITY OF PAYMENTS AFTER FORECLOSURE. (a) | ||
| Proceeds received by a property owners' association at the | ||
| conclusion of a foreclosure sale of a property subject to an | ||
| assessment lien shall be applied in the following order of | ||
| priority: | ||
| (1) any delinquent assessment; | ||
| (2) any current assessment; | ||
| (3) any attorney's fees incurred by the association | ||
| associated solely with assessments or any other charge that could | ||
| provide the basis for foreclosure; | ||
| (4) any fines assessed by the association; | ||
| (5) any attorney's fees incurred by the association | ||
| that are not subject to Subdivision (3); and | ||
| (6) any other amount owed to the association. | ||
| (b) All proceeds from the foreclosure sale remaining after | ||
| the application of money in accordance with Subsection (a) shall be | ||
| paid to the property owner not later than the 60th day after the | ||
| date of the foreclosure sale. | ||
| SECTION 2. The change in law made by this Act applies only | ||
| to a foreclosure of a property owners' association assessment lien | ||
| for unpaid assessments all of which first become delinquent on or | ||
| after the effective date of this Act. Foreclosure of a property | ||
| owners' association assessment lien for assessments all or part of | ||
| which first became delinquent before the effective date of this Act | ||
| is governed by the law in effect immediately before the effective | ||
| date of this Act, and that law is continued in effect for that | ||
| purpose. | ||
| SECTION 3. This Act takes effect September 1, 2011. | ||
