2005 Texas Property Code CHAPTER 81. CONDOMINIUMS CREATED BEFORE ADOPTION OF UNIFORM CONDOMINIUM ACT

PROPERTY CODE

TITLE 7. CONDOMINIUMS

CHAPTER 81. CONDOMINIUMS CREATED BEFORE ADOPTION OF UNIFORM 
CONDOMINIUM ACT

SUBCHAPTER A. PROVISIONS GENERALLY APPLICABLE TO CONDOMINIUMS


	§ 81.001. SHORT TITLE.  This chapter may be cited as the 
Condominium Act. 

Acts 1983, 68th Leg., p. 3616, ch. 576, § 1, eff. Jan. 1, 1984.            


	§ 81.0011. APPLICABILITY.  (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.
	(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.

Added by Acts 1993, 73rd Leg., ch. 244, § 3, eff. Jan. 1, 1994.            


	§ 81.002. DEFINITIONS.  In this chapter:                                    
		(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.
		(2)  "Building" includes each principal structure on or 
to be erected on real property dedicated in a declaration to a 
condominium regime.
		(3)  "Condominium" means a form of real property 
ownership that combines separate ownership of individual 
apartments or units with common ownership of other elements.
		(4)  "Council of owners" means all the apartment owners 
in a condominium project.
		(5)  "Declaration" means the instrument that 
establishes property under a condominium regime.
		(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:
			(A)  land on which the building is erected;                                  
			(B)  foundations, bearing walls and columns, 
roofs, halls, lobbies, stairways, and entrance, exit, and 
communication ways;
			(C)  basements, flat roofs, yards, and gardens, 
except as otherwise provided;
			(D)  premises for the lodging of janitors or 
persons in charge of the building, except as otherwise provided;
			(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
			(F)  elevators and elevator shafts, garbage 
incinerators, and all other devices and installations generally 
existing for common use.
		(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.
		(8)  "Master deed" means a deed that establishes 
property under a condominium regime.
		(9)  "Master lease" means a lease that establishes 
property under a condominium regime.
		(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.
		(11)  "Property" means real property, whether leased or 
owned, the improvements on the property, and the incorporeal rights 
that are appurtenant to the property.

Acts 1983, 68th Leg., p. 3616, ch. 576, § 1, eff. Jan. 1, 1984.            


	§ 81.003. APPLICABILITY OF LOCAL ORDINANCES AND 
REGULATIONS.  (a) A planning or zoning commission of a county or 
municipality may adopt regulations governing condominium regimes 
that supplement this chapter.
	(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.

Acts 1983, 68th Leg., p. 3617, ch. 576, § 1, eff. Jan. 1, 1984.            

SUBCHAPTER B. CREATION, ALTERATION, AND TERMINATION OF 
CONDOMINIUMS


	§ 81.101. CREATION OF CONDOMINIUM.  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.

Acts 1983, 68th Leg., p. 3618, ch. 576, § 1, eff. Jan. 1, 1984.            


	§ 81.102. CONTENTS OF DECLARATION, MASTER DEED, OR MASTER 
LEASE.  (a) A declaration, master deed, or master lease for a 
condominium must contain:
		(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;
		(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;
		(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;
		(4)  a description of the general common elements that 
are not described under Subdivision 1;
		(5)  a description of the limited common elements;                            
		(6)  each apartment's fractional or percentage interest 
in the entire condominium regime;
		(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
		(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.
	(b)  A declaration, master deed, or master lease for a 
condominium may contain any covenants or other matters the 
declarant considers appropriate.

Acts 1983, 68th Leg., p. 3618, ch. 576, § 1, eff. Jan. 1, 1984.  
Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 18, § 9(b), eff. 
Oct. 2, 1984.


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

Acts 1983, 68th Leg., p. 3618, ch. 576, § 1, eff. Jan. 1, 1984.            


	§ 81.104. APARTMENT OWNERSHIP.  (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.
	(b)  An individual title or interest in an apartment in a 
condominium regime is recordable.
	(c)  The entire interest in the condominium regime shall be 
divided among the apartments.
	(d)  A person may own an apartment in a condominium regime 
jointly or in common with others.
	(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.

Acts 1983, 68th Leg., p. 3619, ch. 576, § 1, eff. Jan. 1, 1984.  
Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 18, § 9(c), eff. 
Oct. 2, 1984.


	§ 81.105. APARTMENT BOUNDARIES.  (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.
	(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.
	(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.

Acts 1983, 68th Leg., p. 3619, ch. 576, § 1, eff. Jan. 1, 1984.            


	§ 81.106. APARTMENT DEEDS.  A deed to an apartment in a 
condominium regime must:
		(1)  include by reference the plats in the declaration;                       
		(2)  state the encumbrances against the apartment;                            
		(3)  describe the apartment according to the plat;  and                       
		(4)  state the apartment's fractional or percentage 
interest in the condominium regime.

Acts 1983, 68th Leg., p. 3620, ch. 576, § 1, eff. Jan. 1, 1984.            


	§ 81.107. INTERESTS IN COMMON ELEMENTS.  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.

Acts 1983, 68th Leg., p. 3620, ch. 576, § 1, eff. Jan. 1, 1984.            


	§ 81.108. PARTITION OF COMMON ELEMENTS.  (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.
	(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.
	(c)  An agreement contrary to this section is void.                            

Acts 1983, 68th Leg., p. 3621, ch. 576, § 1, eff. Jan. 1, 1984.            


	§ 81.109. CONVEYANCE OF COMMON ELEMENTS.  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.

Acts 1983, 68th Leg., p. 3622, ch. 576, § 1, eff. Jan. 1, 1984.            


	§ 81.110. TERMINATION OF CONDOMINIUM REGIME.  (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.
	(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.
	(c)  Property that has been removed from a condominium regime 
may be dedicated to another condominium regime at any time.

Acts 1983, 68th Leg., p. 3621, ch. 576, § 1, eff. Jan. 1, 1984.  
Amended by Acts 1989, 71st Leg., ch. 157, § 1, eff. May 25, 1989.


	§ 81.111. AMENDMENT OF CONDOMINIUM DECLARATION.  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.

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


	§ 81.112. RESTRICTION RELATING TO CLUB MEMBERSHIP.  (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.
	(b)  A provision described by this section may not be enacted 
or renewed as a bylaw by a council of owners.

Added by Acts 2003, 78th Leg., ch. 1101, § 1, eff. Sept. 1, 2003.          

SUBCHAPTER C. CONDOMINIUM MANAGEMENT


	§ 81.201. AUTHORITY OF COUNCIL OF OWNERS.  (a) The 
council of owners of a condominium regime may adopt and amend 
bylaws.
	(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.

Acts 1983, 68th Leg., p. 3621, ch. 576, § 1, eff. Jan. 1, 1984.            


	§ 81.202. BYLAWS.  The bylaws of a condominium regime 
govern the administration of the buildings that comprise the 
regime.

Acts 1983, 68th Leg., p. 3621, ch. 576, § 1, eff. Jan. 1, 1984.            


	§ 81.203. VOTING MAJORITY.  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.

Acts 1983, 68th Leg., p. 3621, ch. 576, § 1, eff. Jan. 1, 1984.            


	§ 81.204. MAINTENANCE OF CONDOMINIUM.  (a) An apartment 
owner in a condominium regime is responsible for the apartment 
owner's pro rata share of:
		(1)  the expenses to administer the condominium regime 
and to maintain and repair the general common elements;
		(2)  in proper cases, the expenses to administer the 
limited common elements of the buildings in the condominium regime;  
and
		(3)  other expenses approved by the council of owners.                        
	(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.

Acts 1983, 68th Leg., p. 3622, ch. 576, § 1, eff. Jan. 1, 1984.            


	§ 81.205. INSURANCE.  (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.
	(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.
	(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.

Acts 1983, 68th Leg., p. 3622, ch. 576, § 1, eff. Jan. 1, 1984.            


	§ 81.206. DISPOSITION OF INSURANCE PROCEEDS.  (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.
	(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.

Acts 1983, 68th Leg., p. 3622, ch. 576, § 1, eff. Jan. 1, 1984.            


	§ 81.207. INSUFFICIENT INSURANCE.  (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.
	(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.
	(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.

Acts 1983, 68th Leg., p. 3623, ch. 576, § 1, eff. Jan. 1, 1984.            


	§ 81.208. ASSESSMENTS DUE ON CONVEYANCE.  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:
		(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
		(2)  an obligation due under a validly recorded 
mortgage.                   

Acts 1983, 68th Leg., p. 3623, ch. 576, § 1, eff. Jan. 1, 1984.            


	§ 81.209. CONDOMINIUM RECORDS.  (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.
	(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.
	(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.

Acts 1983, 68th Leg., p. 3625, ch. 576, § 1, eff. Jan. 1, 1984.            


	§ 81.210. LOANS AS ELIGIBLE INVESTMENTS.  (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.
	(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.
	(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.
	(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.

Acts 1983, 68th Leg., p. 3625, ch. 576, § 1, eff. Jan. 1, 1984.