2005 Texas Property Code CHAPTER 82. UNIFORM CONDOMINIUM ACT

PROPERTY CODE

CHAPTER 82. UNIFORM CONDOMINIUM ACT

SUBCHAPTER A. GENERAL PROVISIONS


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

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


	§ 82.002. APPLICABILITY.  (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:
		(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
		(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.
	(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.
	(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) and (12)-(22), 82.108, 82.111, 82.113, 
82.114, 82.116, 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.
	(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.

Added by Acts 1993, 73rd Leg., ch. 244, § 1, eff. Jan. 1, 1994.  
Amended by Acts 1997, 75th Leg., ch. 956, § 1, eff. Jan. 1, 1998.


	§ 82.003. DEFINITIONS.  (a) In this chapter:                                
		(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.
		(2)  "Allocated interests" means the undivided 
interest in the common elements, the common expense liability, and 
votes in the association allocated to each unit.
		(3)  "Association" means the unit owners' association 
organized under Section 82.101.
		(4)  "Board" means the board of directors or the body, 
regardless of name, designated to act on behalf of the association.
		(5)  "Common elements" means all portions of a 
condominium other than the units and includes both general and 
limited common elements.
		(6)  "Common expense liability" means the liability for 
common expenses allocated to each unit.
		(7)  "Common expenses" means expenditures made by or 
financial liabilities of the association, together with any 
allocations to reserves.
		(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.
		(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.
		(10)  "Declarant" means a person, or group of persons 
acting in concert, who:
			(A)  as part of a common promotional plan, offers 
to dispose of the person's interest in a unit not previously 
disposed of;  or
			(B)  reserves or succeeds to any special declarant 
right.                  
		(11)  "Declaration" means a recorded instrument, 
however denominated, that creates a condominium, and any recorded 
amendment to that instrument.
		(12)  "Development rights" means a right or combination 
of rights reserved by a declarant in the declaration to:
			(A)  add real property to a condominium;                                     
			(B)  create units, common elements, or limited 
common elements within a condominium;
			(C)  subdivide units or convert units into common 
elements;  or            
			(D)  withdraw real property from a condominium.                              
		(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.
		(14)  "General common elements" means common elements 
that are not limited common elements.
		(15)  "Identifying number" means a symbol or address 
that identifies only one unit in a condominium.
		(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.
		(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.
		(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.
		(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.
		(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.
		(21)  "Residential purposes" means recreational or 
dwelling purposes, or both.
		(22)  "Special declarant rights" means rights reserved 
for the benefit of a declarant to:
			(A)  complete improvements indicated on plats and 
plans filed with the declaration;
			(B)  exercise any development right;                                         
			(C)  make the condominium part of a larger 
condominium or a planned community;
			(D)  maintain sales, management, and leasing 
offices, signs advertising the condominium, and models;
			(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
			(F)  appoint or remove any officer or board member 
of the association during any period of declarant control.
		(23)  "Unit" means a physical portion of the 
condominium designated for separate ownership or occupancy, the 
boundaries of which are described by the declaration.
		(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.
	(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.

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


	§ 82.004. VARIATION BY AGREEMENT.  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.

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


	§ 82.005. SEPARATE TITLES AND TAXATION.  (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.
	(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.
	(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.
	(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.

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


	§ 82.006. APPLICABILITY OF LOCAL ORDINANCES, REGULATIONS, 
AND BUILDING CODES.  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.

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


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

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


	§ 82.008. VENUE.  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.

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

SUBCHAPTER B. CREATION, ALTERATION, AND TERMINATION OF 
CONDOMINIUMS


	§ 82.051. CREATION OF CONDOMINIUM.  (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.
	(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.
	(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.
	(d)  A county clerk shall, without prior approval from any 
other authority, record declarations and amendments to 
declarations in the real property records, and a county clerk shall 
record condominium plats or plans in the real property records or in 
books maintained for that purpose, as a declarant may request.  The 
book for the condominium plat records shall be the same size and 
type as the book for recording subdivision plats.
	(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.

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


	§ 82.052. UNIT BOUNDARIES.  Except as otherwise provided 
by the declaration or plat:
		(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;
		(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;
		(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
		(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.

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


	§ 82.053. CONSTRUCTION AND VALIDITY OF DECLARATION AND 
BYLAWS.  (a) The provisions of the declaration and bylaws are 
severable.
	(b)  The rule against perpetuities may not be applied to 
defeat any provision of the declaration, bylaws, or rules of the 
association.
	(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.
	(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.

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


	§ 82.054. DESCRIPTION OF UNITS.  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:
		(1)  the name of the condominium;                                             
		(2)  the recording data for the declaration, including 
any amendments, plats, and plans;
		(3)  the county in which the condominium is located;  
and                   
		(4)  the identifying number of the unit.                                      

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


	§ 82.055. CONTENTS OF DECLARATION FOR ALL 
CONDOMINIUMS.  The declaration for a condominium must contain:
		(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;
		(2)  the name of each county in which any part of the 
condominium is located;
		(3)  a legally sufficient description of the real 
property included in the condominium;
		(4)  a description of the boundaries of each unit 
created by the declaration, including the unit's identifying 
number;
		(5)  a statement of the maximum number of units that the 
declarant reserves the right to create;
		(6)  a description of the limited common elements other 
than those listed in Sections 82.052(2) and (4);
		(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;
		(8)  an allocation to each unit of its allocated 
interests;                 
		(9)  any restrictions on use, occupancy, or alienation 
of the units;        
		(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;
		(11)  the method of amending the declaration;                                 
		(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;
		(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;
		(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;
		(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:
			(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
			(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;
		(16)  all matters required by this chapter to be stated 
in the declaration;  and
		(17)  any other matters the declarant considers 
appropriate.                

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


	§ 82.056. LEASEHOLD CONDOMINIUMS.  (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:
		(1)  the recording data for the lease;                                        
		(2)  the date on which the lease is scheduled to expire;                      
		(3)  a legally sufficient description of the real 
property subject to the lease;
		(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;
		(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
		(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.
	(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.
	(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.
	(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.

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


	§ 82.057. ALLOCATION OF COMMON ELEMENT INTERESTS, VOTES, 
AND COMMON EXPENSE LIABILITIES.  (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.
	(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.
	(c)  The declaration may provide:                                              
		(1)  that different allocations of votes must be made 
to the units on particular matters specified in the declaration;  
and
		(2)  for class voting on specified issues affecting the 
class if necessary to protect valid interests of the class.
	(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.
	(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.
	(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.

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


	§ 82.058. LIMITED COMMON ELEMENTS.  (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.
	(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.
	(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.

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


	§ 82.059. PLATS AND PLANS.  (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.
	(b)  Each plat must show:                                                      
		(1)  the name and a survey or general schematic map of 
the entire condominium;
		(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;
		(3)  a legally sufficient description of any real 
property subject to development rights, labeled to identify the 
rights applicable to each parcel;
		(4)  the extent of any encroachments by or on any 
portion of the condominium;
		(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;
		(6)  the location and dimensions of any vertical unit 
boundaries not shown or projected on recorded plans and the unit's 
identifying number;
		(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;
		(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";
		(9)  the distance between noncontiguous parcels of real 
property constituting the condominium;
		(10)  the location and dimensions of limited common 
elements, other than those described by Sections 82.052(2) and (4);
		(11)  in the case of real property not subject to 
development rights, all other matters required by law on land 
surveys;  and
		(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.
	(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."
	(d)  To the extent not shown on the plats, plans must show:                    
		(1)  the location and dimensions of the vertical 
boundaries of each unit, and the unit's identifying number;
		(2)  the horizontal unit boundaries, with reference to 
established data, and the unit's identifying number;  and
		(3)  any units, appropriately identified, in which the 
declarant has reserved the right to create additional units or 
common elements.
	(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.
	(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.
	(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.

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


	§ 82.060. EXERCISE OF DEVELOPMENT RIGHT.  (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.
	(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.
	(c)  Whenever a declarant exercises a development right to 
subdivide or convert a unit previously created into additional 
units, common elements, or both:
		(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
		(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.
	(d)  If the declaration provides that all or a portion of the 
real property is subject to the development right of withdrawal:
		(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
		(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.

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


	§ 82.061. ALTERATIONS OF UNITS.  (a) Subject to the 
provisions of the declaration and other provisions of law, a unit 
owner:
		(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;
		(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
		(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.
	(b)  Removal of partitions or creation of apertures under 
Subsection (a)(3) is not an alteration of boundaries.

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


	§ 82.062. RELOCATION OF BOUNDARIES BETWEEN ADJOINING 
UNITS.  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.

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


	§ 82.063. SUBDIVISION OF UNITS.  (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.
	(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.

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


	§ 82.064. EASEMENT FOR ENCROACHMENTS.  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.

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


	§ 82.065. USE FOR SALES PURPOSES.  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.

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


	§ 82.066. EASEMENT RIGHTS.  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.

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


	§ 82.067. AMENDMENT OF DECLARATION.  (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:
		(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;
		(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
		(3)  by any method permitted by the declaration.                              
	(b)  The amendment procedures of this section do not apply to 
amendments that may be executed by:
		(1)  a declarant under Section 82.051(c), 82.059(f), or 
82.060 or Subsection (f);
		(2)  the association under Section 82.007, 82.056(d), 
82.058(c), 82.062, or 82.063 or Subsection (f);  or
		(3)  certain unit owners under Section 82.058(b), 
82.062, 82.063(b), or 82.068(b).
	(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.
	(d)  To be effective, an amendment to the declaration must be 
recorded in each county in which any portion of the condominium is 
located.
	(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.
	(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.
	(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.
	(h)  An association may amend the declaration to authorize 
the board:        
		(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;
		(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
		(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.

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


	§ 82.0675. RESTRICTION RELATING TO CLUB MEMBERSHIP.  (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.
	(b)  A provision described by this section may not be enacted 
or renewed as a bylaw by the unit owners' association.

Added by Acts 2003, 78th Leg., ch. 1101, § 2, eff. Sept. 1, 2003.          


	§ 82.068. TERMINATION OF CONDOMINIUM.  (a) Unless the 
declaration provides otherwise and except for a taking of all the 
units by condemnation, a condominium may be terminated only by the 
agreement of 100 percent of the votes in the association and each 
holder of a deed of trust or vendor's lien on a unit.  The 
declaration may not allow a termination by less than 80 percent of 
the votes in the association if any unit is restricted exclusively 
to residential uses.
	(b)  An agreement of unit owners to terminate a condominium 
must be evidenced by the execution or ratification of a termination 
agreement by the requisite number of unit owners.  If, pursuant to a 
termination agreement, the real property constituting the 
condominium is to be sold following termination, the termination 
agreement must set forth the terms of the sale.  To be effective, a 
termination agreement and all ratifications of the agreement must 
be recorded in each county in which a portion of the condominium is 
located.
	(c)  The association, on behalf of the unit owners, may 
contract for the sale of real property in the condominium, but the 
contract is not binding on the unit owners until it is approved 
under Subsections (a) and (b).  If the real property constituting 
the condominium is to be sold following termination, on termination 
title to that real property vests in the association as trustee for 
the holders of all interests in the units, and the association has 
all powers necessary and appropriate to effect the sale, including 
the power to convey the interests of nonconsenting owners.  Until 
the sale has been concluded and the proceeds distributed, the 
association shall continue to exist and retains the powers it had 
before termination.  Proceeds of the sale must be distributed to 
unit owners and lienholders as their interests may appear, in 
proportion to the respective interests of unit owners as provided 
by Subsection (f).  Unless the termination agreement specifies 
differently, as long as the association holds title to the real 
property, each unit owner and the owner's successors in interest 
have an exclusive right to occupy the portion of the real property 
that formerly constituted the owner's unit.  During that period of 
occupancy a unit owner and the owner's successors in interest 
remain liable for all assessments and other obligations imposed on 
unit owners by this chapter or the declaration.
	(d)  If the real property constituting the condominium is not 
to be sold following termination, on termination title to the real 
property vests in the unit owners as tenants in common in proportion 
to their respective interests, and liens on the units shift 
accordingly.  While the tenancy in common exists, a unit owner and 
the owner's successors in interest have an exclusive right to 
occupy the portion of the real property that formerly constituted 
the owner's unit.
	(e)  Following termination of the condominium, and after 
payment of or provision for the claims of the association's 
creditors, the assets of the association shall be distributed to 
unit owners in proportion to their respective interests.  The 
proceeds of sale described by Subsection (c) and held by the 
association as trustee are not assets of the association.
	(f)  The interest of a unit owner referred to in Subsections 
(c), (d), and (e) is, except as provided by Subsection (g), the fair 
market value of the owner's unit, limited common elements, and 
common element interest immediately before the termination, as 
determined by one or more independent appraisers selected by the 
association.  The decision of the independent appraisers shall be 
distributed to the unit owners and becomes final unless disapproved 
by unit owners of units to which 25 percent of the votes in the 
association are allocated not later than the 30th day after the date 
of distribution.  The proportion of a unit owner's interest to that 
of all unit owners is determined by dividing the fair market value 
of the unit owner's unit and common element interest by the total 
fair market values of all the units and common elements.
	(g)  If a unit or a limited common element is destroyed to the 
extent that an appraisal of the fair market value before the 
destruction cannot be made, the interest of a unit owner is the 
owner's common element interest immediately before the 
termination.
	(h)  Foreclosure or enforcement of a lien or encumbrance 
against the entire condominium does not of itself terminate the 
condominium, and foreclosure or enforcement of a lien or 
encumbrance against a portion of the condominium does not withdraw 
that portion from the condominium, unless the portion is 
withdrawable real property or unless the mortgage being foreclosed 
was recorded before the date the declaration was recorded and the 
mortgagee did not consent in writing to the declaration.
	(i)  By agreement of the same percentage of unit owners that 
is required to terminate the condominium, the unit owners may 
rescind a termination agreement and reinstate the declaration in 
effect immediately before the election to terminate.  To be 
effective, the rescission agreement must be in writing, executed by 
the unit owners who desire to rescind, and recorded in each county 
in which any portion of the condominium is located.

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


	§ 82.069. RIGHTS OF SECURED LENDERS.  The declaration may 
require that all or a specified number or percentage of the 
mortgagees or beneficiaries of deeds of trust encumbering the units 
approve specified actions of the unit owners or the association as a 
condition to the effectiveness of those actions, but a requirement 
for approval may not operate to:
		(1)  deny or delegate control over the general 
administrative affairs of the association by the unit owners or the 
board;  or
		(2)  prevent the association or the board from:                               
			(A)  commencing, intervening in, or settling any 
litigation or proceeding;  or
			(B)  receiving and distributing insurance 
proceeds under Section 82.111.   

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


	§ 82.070. MEETING AT WHICH AMENDMENTS MAY BE 
ADOPTED.  (a) An association or a board may not meet to adopt an 
amendment or other change to the declaration, articles of 
incorporation, bylaws, or rules of the association unless the 
association or board has given to each unit owner a document showing 
the specific amendment or other change that would be made to the 
declaration, articles of incorporation, bylaws, or rules.
	(b)  The information described by Subsection (a) must be 
given to each unit owner after the 20th day but before the 10th day 
preceding the date of the meeting.  The information is considered to 
have been given to a unit owner on the date the information is 
personally delivered to the unit owner, as shown by a receipt signed 
by the unit owner, or on the date shown by the postmark on the 
information after it is deposited in the United States mail with a 
proper address and postage paid.

Added by Acts 1997, 75th Leg., ch. 956, § 2, eff. Jan. 1, 1998.            

SUBCHAPTER C. CONDOMINIUM MANAGEMENT


	§ 82.101. ORGANIZATION OF UNIT OWNERS' ASSOCIATION.  A 
unit owners' association must be organized as a profit or nonprofit 
corporation.  The declarant may not convey a unit until the 
secretary of state has issued a certificate of incorporation under 
Article 3.03, Texas Business Corporation Act, or Article 3.03, 
Texas Non-Profit Corporation Act (Article 1396-3.03, Vernon's 
Texas Civil Statutes). The membership of the association at all 
times consists exclusively of all the unit owners or, following 
termination of the condominium, all former unit owners entitled to 
distribution of proceeds, or the owners' heirs, successors, or 
assigns.

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


	§ 82.102. POWERS OF UNIT OWNERS' ASSOCIATION.  (a) Unless 
otherwise provided by the declaration, the association, acting 
through its board, may:
		(1)  adopt and amend bylaws;                                                  
		(2)  adopt and amend budgets for revenues, 
expenditures, and reserves, and collect assessments for common 
expenses from unit owners;
		(3)  hire and terminate managing agents and other 
employees, agents, and independent contractors;
		(4)  institute, defend, intervene in, settle, or 
compromise litigation or administrative proceedings in its own name 
on behalf of itself or two or more unit owners on matters affecting 
the condominium;
		(5)  make contracts and incur liabilities relating to 
the operation of the condominium;
		(6)  regulate the use, maintenance, repair, 
replacement, modification, and appearance of the condominium;
		(7)  adopt and amend rules regulating the use, 
occupancy, leasing or sale, maintenance, repair, modification, and 
appearance of units and common elements, to the extent the 
regulated actions affect common elements or other units;
		(8)  cause additional improvements to be made as a part 
of the common elements;
		(9)  acquire, hold, encumber, and convey in its own 
name any right, title, or interest to real or personal property, 
except common elements of the condominium;
		(10)  grant easements, leases, licenses, and 
concessions through or over the common elements;
		(11)  impose and receive payments, fees, or charges for 
the use, rental, or operation of the common elements and for 
services provided to unit owners;
		(12)  impose interest and late charges for late 
payments of assessments, returned check charges, and, if notice and 
an opportunity to be heard are given, reasonable fines for 
violations of the declaration, bylaws, and rules of the 
association;
		(13)  adopt and amend rules regulating the collection 
of delinquent assessments and the application of payments;
		(14)  adopt and amend rules regulating the termination 
of utility service to a unit, the owner of which is delinquent in 
the payment of an assessment that is used, in whole or in part, to 
pay the cost of that utility;
		(15)  impose reasonable charges for preparing, 
recording, or copying declaration amendments, resale certificates, 
or statements of unpaid assessments;
		(16)  enter a unit for bona fide emergency purposes 
when conditions present an imminent risk of harm or damage to the 
common elements, another unit, or the occupants;
		(17)  assign its right to future income, including the 
right to receive common expense assessments, but only to the extent 
the declaration so provides;
		(18)  suspend the voting privileges of or the use of 
certain general common elements by an owner delinquent for more 
than 30 days in the payment of assessments;
		(19)  purchase insurance and fidelity bonds it 
considers appropriate or necessary;
		(20)  exercise any other powers conferred by the 
declaration or bylaws;     
		(21)  exercise any other powers that may be exercised 
in this state by a corporation of the same type as the association;  
and
		(22)  exercise any other powers necessary and proper 
for the government and operation of the association.
	(b)  The declaration may not impose limitations on the power 
of the association to deal with the declarant that are more 
restrictive than the limitations imposed on the power of the 
association to deal with other persons.
	(c)  To be enforceable, a bylaw or rule of the association 
must not be arbitrary or capricious.
	(d)  Before an association may charge the unit owner for 
property damage for which the unit owner is liable or levy a fine 
for violation of the declaration, bylaws, or rules, the association 
shall give to the unit owner a written notice that:
		(1)  describes the violation or property damage and 
states the amount of the proposed fine or damage charge;
		(2)  states that not later than the 30th day after the 
date of the notice, the unit owner may request a hearing before the 
board to contest the fine or damage charge;  and
		(3)  allows the unit owner a reasonable time, by a 
specified date, to cure the violation and avoid the fine unless the 
unit owner was given notice and a reasonable opportunity to cure a 
similar violation within the preceding 12 months.
	(e)  The association may give a copy of the notice required 
by Subsection (d) to an occupant of the unit.  The association must 
give notice of a levied fine or damage charge to the unit owner not 
later than the 30th day after the date of levy.

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


	§ 82.103. BOARD MEMBERS AND OFFICERS.  (a) Except as 
provided by the declaration, bylaws, or this chapter, the board 
shall act in all instances on behalf of the association if in the 
good-faith judgment of the board the action is reasonable.  Each 
officer or member of the board is liable as a fiduciary of the unit 
owners for the officer's or member's acts or omissions.  All acts of 
the association must be by and through the board unless otherwise 
provided by the declaration or bylaws or by law.
	(b)  The board may not act on behalf of the association to 
amend the declaration except as permitted by this chapter, to 
terminate the condominium, to elect members of the board, or to 
determine the qualifications, powers and duties, or terms of office 
of board members.  The board may fill a vacancy in its membership 
for the unexpired portion of a term.
	(c)  Subject to Subsection (d), the declaration may provide 
for a period of declarant control of the association during which a 
declarant, or persons designated by the declarant, may appoint and 
remove the officers and members of the board.  Regardless of the 
period provided by the declaration, a period of declarant control 
terminates not later than the 120th day after conveyance of 75 
percent of the units that may be created to unit owners other than a 
declarant.  Transfer of special declarant rights does not terminate 
the period of declarant control.  A declarant may voluntarily 
surrender the right to appoint and remove officers and members of 
the board before termination of the period, but in that event the 
declarant may require, for the duration of the period that the 
declarant would otherwise control, that specified actions of the 
association or board be approved by the declarant before they 
become effective.
	(d)  Not later than the 120th day after conveyance of 50 
percent of the units that may be created to unit owners other than a 
declarant, not less than one-third of the members of the board must 
be elected by unit owners other than the declarant.
	(e)  Not later than the termination of a period of declarant 
control, the unit owners shall elect a board of at least three 
members who need not be unit owners.  The board shall elect the 
officers before the 31st day after the date declarant control 
terminates.  The persons elected shall take office on election.
	(f)  An officer or director of the association is not liable 
to the association or any unit owner for monetary damages for an act 
or omission occurring in the person's capacity as an officer or 
director unless:
		(1)  the officer or director breached a fiduciary duty 
to the association or a unit owner;
		(2)  the officer or director received an improper 
benefit;  or              
		(3)  the act or omission was in bad faith, involved 
intentional misconduct, or was one for which liability is expressly 
provided by statute.
	(g)  Subsection (f) does not diminish a limitation of 
liability provided an officer or director of the association by the 
declaration, bylaws, articles of incorporation of the association, 
or other laws.

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


	§ 82.104. TRANSFER OF SPECIAL DECLARANT RIGHTS.  (a) 
Special declarant rights created or reserved under this chapter may 
not be transferred except by an instrument evidencing the transfer 
recorded in each county in which any portion of the condominium is 
located.  The instrument is not effective unless executed by the 
transferee.
	(b)  On transfer of any special declarant right, a transferor 
is not relieved of an obligation or liability arising before the 
transfer.  A transferor is not liable for an act or omission or a 
breach of an obligation arising from the exercise of a special 
declarant right by a successor declarant who is not an affiliate of 
the transferor.
	(c)  Unless otherwise provided by a mortgage instrument or 
deed of trust, in case of foreclosure of a mortgage, tax sale, 
judicial sale, sale by a trustee under a deed of trust, or sale 
under Bankruptcy Code or receivership proceedings, of a unit owned 
by a declarant or of real property in a condominium subject to 
development rights, a person acquiring title to all the real 
property being foreclosed or sold may request to succeed to all 
special declarant rights or only to rights reserved by the 
declaration to maintain models, offices, and signs.  The judgment 
or instrument conveying title may provide for transfer of only the 
special declarant rights requested.
	(d)  On foreclosure, tax sale, judicial sale, sale by a 
trustee under a deed of trust, or sale under Bankruptcy Code or 
receivership proceedings of all units and other real property in a 
condominium owned by a declarant:
		(1)  the declarant ceases to have any special declarant 
rights;  and        
		(2)  the period of declarant control terminates unless 
the judgment or instrument conveying title provides for transfer of 
all special declarant rights held by that declarant to a successor 
declarant.
	(e)  The liabilities and obligations of a person who succeeds 
to special declarant rights are as follows:
		(1)  a successor to a special declarant right who is an 
affiliate of a declarant is subject to all obligations and 
liabilities imposed on the transferor by this chapter or by the 
declaration;
		(2)  a successor to a special declarant right, other 
than a successor described by Subdivision (3) or (4), who is not an 
affiliate of a declarant, is subject to all obligations and 
liabilities imposed on the transferor by this chapter or by the 
declaration;
		(3)  a successor to only a right reserved by the 
declaration to maintain models, offices, and signs, who is not an 
affiliate of a declarant, may not exercise any other special 
declarant right, and is not subject to any liability or obligation 
as a declarant, except the obligation to provide a condominium 
information statement and any liability arising as a result;  and
		(4)  a successor to all special declarant rights held 
by the successor's transferor who is not an affiliate of that 
declarant and who succeeded to those rights pursuant to a deed in 
lieu of foreclosure or a judgment or instrument conveying title to 
units under Subsection (c) may declare the person's intention in a 
recorded instrument to hold those rights solely for transfer to 
another person;  thereafter, until all special declarant rights are 
transferred to a person acquiring title to any unit owned by the 
successor, or until an instrument permitting exercise of all those 
rights is recorded, the successor may not exercise any of those 
rights other than any right held by the successor's transferor to 
control the board as provided by Section 82.103(c) for the duration 
of the period of declarant control, and an attempt to exercise those 
rights is void;  so long as a successor declarant may not exercise 
special declarant rights under this subdivision, the successor is 
not subject to any liability or obligation as a declarant other than 
liability for acts and omissions under Section 82.103(a).
	(f)  This section does not subject a successor to a special 
declarant right to any claims against or other obligations of a 
transferor declarant, other than claims and obligations arising 
under this chapter or the declaration.

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


	§ 82.105. TERMINATION OF CONTRACTS AND LEASES OF 
DECLARANT.  An association in a residential or recreational 
condominium may terminate, without penalty, contracts or leases 
between the association and a declarant or an affiliate of a 
declarant if:
		(1)  the contract is entered into by the association 
while controlled by the declarant;
		(2)  the association terminates the contract or lease 
before the first anniversary of the date a board elected by the unit 
owners takes office;  and
		(3)  the association gives at least 90 days' notice of 
its intent to terminate the contract or lease to the other party.

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


	§ 82.106. BYLAWS.  (a) The administration and operation 
of the condominium are governed by the bylaws, which must provide 
for:
		(1)  the number of members on the board and the titles 
of the officers of the association;
		(2)  election by the board of a president, treasurer, 
secretary, and any other officers the bylaws specify;
		(3)  the qualifications, powers and duties, terms of 
office, and the manner of electing and removing a board member or 
officer and filling vacancies;
		(4)  the powers, if any, that the board or an officer 
may delegate to other persons or to a managing agent;
		(5)  the designation of officers who are authorized to 
prepare, execute, certify, and record amendments to the declaration 
on behalf of the association;
		(6)  the method of amending the bylaws;  and                                  
		(7)  the manner of notice of meetings of the 
association.                   
	(b)  Subject to the declaration, the bylaws may provide for 
other matters the association considers desirable, necessary, or 
appropriate.

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


	§ 82.107. UPKEEP OF CONDOMINIUM.  (a) Except as provided 
by the declaration or Subsections (b) and (c), the association is 
responsible for maintenance, repair, and replacement of the common 
elements, and each unit owner is responsible for maintenance, 
repair, and replacement of the owner's unit.  Each unit owner shall 
afford to the association and the other unit owners, and to their 
agents or employees, access through the owner's unit reasonably 
necessary for those purposes.  If damage is inflicted on the common 
elements or on any unit through which access is taken, the unit 
owner responsible for the damage, or the association if it is 
responsible, is liable for the prompt repair of the damage.
	(b)  Except as provided by the declaration, each unit owner 
is responsible for the cost of maintenance, repair, and replacement 
of any utility installation or equipment serving only the owner's 
unit, without regard to whether the installation or equipment is 
located wholly or partially outside the designated boundaries of 
the unit.  For purposes of this subsection, utility installations 
and equipment include electricity, water, sewage, gas, water 
heaters, heating and air conditioning equipment, and television 
antennas.
	(c)  Except as provided by the declaration, each unit owner 
is responsible for the cost of maintenance, repair, and replacement 
of windows and doors serving only the owner's unit.
	(d)  Unless otherwise provided by the declaration, the 
association may enter a unit, after giving notice to the owner and 
occupant of the unit, to:
		(1)  prevent or terminate waste of water purchased by 
the association as a common expense;  or
		(2)  perform maintenance and repairs of the condominium 
that, if not performed, may result in increased damage by water to 
components of the condominium that the association maintains.

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


	§ 82.108. MEETINGS.  (a) Meetings of the association must 
be held at least once each year.  Unless the declaration provides 
otherwise, special meetings of the association may be called by the 
president, a majority of the board, or unit owners having at least 
20 percent of the votes in the association. 
	(b)  Meetings of the association and board must be open to 
unit owners, subject to the right of the board to adjourn a meeting 
of the board and reconvene in closed executive session to consider 
actions involving personnel, pending litigation, contract 
negotiations, enforcement actions, matters involving the invasion 
of privacy of individual unit owners, or matters that are to remain 
confidential by request of the affected parties and agreement of 
the board.  The general nature of any business to be considered in 
executive session must first be announced at the open meeting.
	(c)  Unless the declaration, bylaws, or articles of 
incorporation of the association provide otherwise:
		(1)  a meeting of the board may be held by any method of 
communication, including electronic and telephonic, if:
			(A)  notice of the meeting has been given in 
accordance with Subsection (e);
			(B)  each director may hear and be heard by every 
other director;  and     
			(C)  the meeting does not involve voting on a 
fine, damage assessment, appeal from a denial of architectural 
control approval, or suspension of a right of a particular 
association member before the member has an opportunity to attend a 
board meeting to present the member's position, including any 
defense, on the issue;  and
		(2)  the board may act by unanimous written consent of 
all the directors, without a meeting, if:
			(A)  the board action does not involve voting on a 
fine, damage assessment, appeal from a denial of architectural 
control approval, or suspension of a right of a particular 
association member before the member has an opportunity to attend a 
board meeting to present the member's position, including any 
defense, on the issue;  and
			(B)  a record of the board action is filed with the 
minutes of board meetings.
	(d)  Notice of a meeting of the association must be given as 
provided by the bylaws, or, if the bylaws do not provide for notice, 
notice must be given to each unit owner in the same manner in which 
notice is given to members of a nonprofit corporation under Section 
A, Article 2.11, Texas Non-Profit Corporation Act (Article 
1396-2.11, Vernon's Texas Civil Statutes).
	(e)  Notice of a meeting of the board must be given as 
provided by the bylaws, or, if the bylaws do not provide for notice, 
notice must be given to each board member in the same manner in 
which notice is given to members of the board of a nonprofit 
corporation under Section B, Article 2.19, Texas Non-Profit 
Corporation Act (Article 1396-2.19, Vernon's Texas Civil 
Statutes).
	(f)  An association, on the written request of a unit owner, 
shall inform the unit owner of the time and place of the next 
regular or special meeting of the board.  If the association 
representative to whom the request is made does not know the time 
and place of the meeting, the association promptly shall obtain the 
information and disclose it to the unit owner or inform the unit 
owner where the information may be obtained.

Added by Acts 1993, 73rd Leg., ch. 244, § 1, eff. Jan. 1, 1994.  
Amended by Acts 1997, 75th Leg., ch. 956, § 3, eff. Jan. 1, 1998.


	§ 82.109. QUORUMS.  (a) Unless the bylaws provide 
otherwise, a quorum is present throughout any meeting of the 
association if persons entitled to cast at least 20 percent of the 
votes that may be cast for election of the board are present in 
person or by proxy at the beginning of the meeting.  The bylaws may 
not reduce the standard for a quorum to less than 10 percent.
	(b)  Unless the bylaws specify a larger percentage, a quorum 
is present throughout a meeting of the board if persons entitled to 
cast at least 50 percent of the votes on the board are present at the 
beginning of the meeting.

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


	§ 82.110. VOTING AND PROXIES.  (a) If only one of the 
multiple owners of a unit is present at a meeting of the 
association, that person may cast the vote or votes allocated to 
that unit.  If more than one of the multiple owners is present, the 
vote or votes allocated to that unit may be cast only in accordance 
with the owners' unanimous agreement unless the declaration 
provides otherwise.  Multiple owners are in unanimous agreement if 
one of the multiple owners casts the votes allocated to a unit and 
none of the other owners makes prompt protest to the person 
presiding over the meeting.
	(b)  Votes allocated to a unit may be cast under a written 
proxy duly executed by a unit owner.  If a unit is owned by more than 
one person, each owner of the unit may vote or register protest to 
the casting of votes by the other owners of the unit through a proxy 
duly executed by the unit owner.  A unit owner may not revoke a proxy 
given under this section except by giving actual notice of 
revocation to the person presiding over a meeting of the 
association.  A proxy is void if it is not dated or if it purports to 
be revocable without notice.  A proxy terminates one year after its 
date unless it specifies a shorter or longer time.
	(c)  Cumulative voting is not allowed.                                         

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


	§ 82.111. INSURANCE.  (a) Beginning not later than the 
time of the first conveyance of a unit to a person other than a 
declarant, the association shall maintain, to the extent reasonably 
available:
		(1)  property insurance on the insurable common 
elements insuring against all risks of direct physical loss 
commonly insured against, including fire and extended coverage, in 
a total amount of at least 80 percent of the replacement cost or 
actual cash value of the insured property as of the effective date 
and at each renewal date of the policy;  and
		(2)  commercial general liability insurance, including 
medical payments insurance, in an amount determined by the board 
but not less than any amount specified by the declaration covering 
all occurrences commonly insured against for death, bodily injury, 
and property damage arising out of or in connection with the use, 
ownership, or maintenance of the common elements.
	(b)  If a building contains units having horizontal 
boundaries described in the declaration, the insurance maintained 
under Subsection (a)(1), to the extent reasonably available, must 
include the units, but need not include improvements and 
betterments installed by unit owners.
	(c)  If the insurance described by Subsections (a) and (b) is 
not reasonably available, the association shall cause notice of 
that fact to be delivered or mailed to all unit owners and 
lienholders.  The declaration may require the association to carry 
any other insurance, and the association in any event may carry any 
other insurance the board considers appropriate to protect the 
condominium, the association, or the unit owners.  This section 
does not affect the right of a holder of a mortgage on a unit to 
require a unit owner to acquire insurance in addition to that 
provided by the association.
	(d)  Insurance policies carried under Subsection (a) must 
provide that:      
		(1)  each unit owner is an insured person under the 
policy with respect to liability arising out of the person's 
ownership of an undivided interest in the common elements or 
membership in the association;
		(2)  the insurer waives its right to subrogation under 
the policy against a unit owner;
		(3)  no action or omission of a unit owner, unless 
within the scope of the unit owner's authority on behalf of the 
association, will void the policy or be a condition to recovery 
under the policy;  and
		(4)  if, at the time of a loss under the policy, there 
is other insurance in the name of a unit owner covering the same 
property covered by the policy, the association's policy provides 
primary insurance.
	(e)  A claim for any loss covered by the policy under 
Subsection (a)(1) must be submitted by and adjusted with the 
association.  The insurance proceeds for that loss shall be payable 
to an insurance trustee designated by the association for that 
purpose, if the designation of an insurance trustee is considered 
by the board to be necessary or desirable, or otherwise to the 
association, and not to any unit owner or lienholder.
	(f)  The insurance trustee or the association shall hold 
insurance proceeds in trust for unit owners and lienholders as 
their interests may appear.  Subject to Subsection (i), the 
proceeds paid under a policy must be disbursed first for the repair 
or restoration of the damaged common elements and units, and unit 
owners and lienholders are not entitled to receive payment of any 
portion of the proceeds unless there is a surplus of proceeds after 
the property has been completely repaired or restored, or the 
condominium is terminated.
	(g)  An insurance policy issued to the association does not 
prevent a unit owner from obtaining insurance for the owner's own 
benefit.
	(h)  The insurer issuing the policy may not cancel or refuse 
to renew it less than 30 days after written notice of the proposed 
cancellation or nonrenewal has been mailed to the association.
	(i)  Any portion of the condominium for which insurance is 
required that is damaged or destroyed shall be promptly repaired or 
replaced by the association unless the condominium is terminated, 
repair or replacement would be illegal under any state or local 
health or safety statute or ordinance, or at least 80 percent of the 
unit owners, including each owner of a unit or assigned limited 
common element that will not be rebuilt or repaired, vote to not 
rebuild.  A vote to not rebuild does not increase an insurer's 
liability to loss payment obligation under a policy, and the vote 
does not cause a presumption of total loss.  The cost of repair or 
replacement in excess of the insurance proceeds and reserves is a 
common expense.  If the entire condominium is not repaired or 
replaced, any insurance proceeds attributable to the damaged common 
elements shall be used to restore the damaged area to a condition 
compatible with the remainder of the condominium, the insurance 
proceeds attributable to units and limited common elements that are 
not rebuilt shall be distributed to the owners of those units and 
the owners of the units to which those limited common elements were 
assigned, or to their mortgagees, as their interests may appear, 
and the remainder of the proceeds shall be distributed to all the 
unit owners as their interests may appear.  If the unit owners vote 
to not rebuild any unit, that unit's allocated interests shall be 
automatically reallocated on the vote as if the unit had been 
condemned, and the association shall prepare, execute, and record 
an amendment to the declaration reflecting the reallocation.  
Section 82.068 governs the distribution of insurance proceeds if 
the condominium is terminated.
	(j)  The provisions of this section may be varied or waived 
if all the units in a condominium are restricted to nonresidential 
use.

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


	§ 82.112. ASSESSMENTS FOR COMMON EXPENSES.  (a) Until an 
association makes a common expense assessment, a declarant shall 
pay all the expenses of the condominium as the expenses accrue.  
After an initial assessment by an association, assessments must be 
made at least annually and must be based on a budget adopted at 
least annually by the association.  The association's reserves and 
the unit owners' working capital contributions may not be used to 
pay operational expenses until the declarant control terminates.
	(b)  From the date of the initial assessment until declarant 
control terminates, or three years from a declarant's first 
conveyance of a unit, whichever is earlier, the declarant shall 
periodically pay to the association:
		(1)  an amount equal to all operational expenses of the 
association, less the operational expense portion of the 
assessments paid by unit owners other than declarant;  or
		(2)  the common expense liability allocated to each 
unit owned by the declarant.
	(c)  Common expenses shall be assessed against all units 
conveyed, rented, or used as models or offices by the declarant and 
against all units owned by a declarant after termination of a 
declarant's control or three years from a declarant's first 
conveyance of a unit, whichever is earlier, in accordance with the 
common expense liability allocated to each unit.  A past due 
assessment or installment of an assessment may bear interest at a 
lawful rate established by the association.
	(d)  Except as provided by the declaration and Section 
82.107, a common expense for the maintenance, repair, or 
replacement of a limited common element shall be assessed against 
all the units as if it were for a general common element.
	(e)  If common expense liabilities are reallocated, common 
expense assessments and an assessment installment not yet due shall 
be recomputed in accordance with the reallocated common expense 
liabilities.
	(f)  A declaration may allow the accumulation of reserve 
funds for an unspecified period to provide for any anticipated 
expense of the condominium.
	(g)  This section does not prevent a declarant from 
collecting from a purchaser at closing the prorated amount of any 
expenses, such as insurance or taxes, that the declarant has 
prepaid to the association or directly to others on behalf of the 
unit that is being purchased.

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


	§ 82.113. ASSOCIATION'S LIEN FOR ASSESSMENTS.  (a) An 
assessment levied by the association against a unit or unit owner is 
a personal obligation of the unit owner and is secured by a 
continuing lien on the unit and on rents and insurance proceeds 
received by the unit owner and relating to the owner's unit.  In 
this section, "assessments" means regular and special assessments, 
dues, fees, charges, interest, late fees, fines, collection costs, 
attorney's fees, and any other amount due to the association by the 
unit owner or levied against the unit by the association, all of 
which are enforceable as assessments under this section unless the 
declaration provides otherwise.
	(b)  The association's lien for assessments has priority 
over any other lien except:
		(1)  a lien for real property taxes and other 
governmental assessments or charges against the unit unless 
otherwise provided by Section 32.05, Tax Code;
		(2)  a lien or encumbrance recorded before the 
declaration is recorded;     
		(3)  a first vendor's lien or first deed of trust lien 
recorded before the date on which the assessment sought to be 
enforced becomes delinquent under the declaration, bylaws, or 
rules;  and
		(4)  unless the declaration provides otherwise, a lien 
for construction of improvements to the unit or an assignment of the 
right to insurance proceeds on the unit if the lien or assignment is 
recorded or duly perfected before the date on which the assessment 
sought to be enforced becomes delinquent under the declaration, 
bylaws, or rules.
	(c)  The association's lien for assessments is created by 
recordation of the declaration, which constitutes record notice and 
perfection of the lien.  Unless the declaration provides otherwise, 
no other recordation of a lien or notice of lien is required.
	(d)  By acquiring a unit, a unit owner grants to the 
association a power of sale in connection with the association's 
lien.  By written resolution, a board may appoint, from time to 
time, an officer, agent, trustee, or attorney of the association to 
exercise the power of sale on behalf of the association.  Except as 
provided by the declaration, an association shall exercise its 
power of sale pursuant to Section 51.002.
	(e)  The association has the right to foreclose its lien 
judicially or by nonjudicial foreclosure pursuant to the power of 
sale created by this chapter or the declaration, except that the 
association may not foreclose a lien for assessments consisting 
solely of fines.  Costs of foreclosure may be added to the amount 
owed by the unit owner to the association.  A unit owner may not 
petition a court to set aside a sale solely because the purchase 
price at the foreclosure sale was insufficient to fully satisfy the 
owner's debt.
	(f)  The association may bid for and purchase the unit at 
foreclosure sale as a common expense.  The association may own, 
lease, encumber, exchange, sell, or convey a unit.
	(g)  The owner of a unit used for residential purposes and 
purchased by an association at a foreclosure sale of the 
association's lien for assessments may redeem the unit not later 
than the 90th day after the date of the foreclosure sale.  To redeem 
the unit, the owner must pay to the association all amounts due the 
association at the time of the foreclosure sale, interest from the 
date of foreclosure sale to the date of redemption at the rate 
provided by the declaration for delinquent assessments, reasonable 
attorney's fees and costs incurred by the association in 
foreclosing the lien, any assessment levied against the unit by the 
association after the foreclosure sale, and any reasonable cost 
incurred by the association as owner of the unit, including costs of 
maintenance and leasing.  On redemption, the association shall 
execute a deed to the redeeming unit owner.  The exercise of the 
right of redemption is not effective against a subsequent purchaser 
or lender for value without notice of the redemption after the 
redemption period expires unless the redeeming unit owner records 
the deed from the association or an affidavit stating that the owner 
has exercised the right of redemption.  A unit that has been 
redeemed remains subject to all liens and encumbrances on the unit 
before foreclosure.  All rents and other income collected from the 
unit by the association from the date of foreclosure sale to the 
date of redemption belong to the association, but the rents and 
income shall be credited against the redemption amount.  An 
association purchasing a unit at a sale foreclosing its lien may not 
transfer ownership of the unit during the redemption period to a 
person other than a redeeming owner.
	(h)  If a unit owner defaults in the owner's monetary 
obligations to the association, the association may notify other 
lien holders of the default and the association's intent to 
foreclose its lien.  The association shall notify any holder of a 
recorded lien or duly perfected mechanic's lien against a unit who 
has given the association a written request for notification of the 
unit owner's monetary default or the association's intent to 
foreclose its lien.
	(i)  This section does not prohibit the association from 
taking a deed in lieu of foreclosure or from filing suit to recover 
a money judgment for sums that may be secured by the lien.
	(j)  At any time before a nonjudicial foreclosure sale, a 
unit owner may avoid foreclosure by paying all amounts due the 
association.
	(k)  If, on January 1, 1994, a unit is the homestead of the 
unit owner and is subject to a declaration that does not contain a 
valid assessment lien against the unit, the lien provided by this 
section does not attach against the unit until the unit ceases to be 
the homestead of the person owning it on January 1, 1994.
	(l)  Foreclosure of a tax lien attaching against a unit under 
Chapter 32, Tax Code, does not discharge the association's lien for 
assessments under this section or under a declaration for amounts 
becoming due to the association after the date of foreclosure of the 
tax lien.
	(m)  If a unit owner is delinquent in payment of assessments 
to an association, at the request of the association a holder of a 
recorded lien against the unit may provide the association with 
information about the unit owner's debt secured by the holder's lien 
against the unit and other relevant information.  At the request of 
a lien holder, the association may furnish the lien holder with 
information about the condominium and the unit owner's obligations 
to the association.

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


	§ 82.114. ASSOCIATION RECORDS.  (a) The association shall 
keep:           
		(1)  detailed financial records that comply with 
generally accepted accounting principles and that are sufficiently 
detailed to enable the association to prepare a resale certificate 
under Section 82.157;
		(2)  the plans and specifications used to construct the 
condominium except for buildings originally constructed before 
January 1, 1994;
		(3)  the condominium information statement prepared 
under Section 82.152 and any amendments;
		(4)  the name and mailing address of each unit owner;                         
		(5)  voting records, proxies, and correspondence 
relating to amendments to the declaration;  and
		(6)  minutes of meetings of the association and board.                        
	(b)  All financial and other records of the association shall 
be reasonably available at its registered office or its principal 
office in this state for examination by a unit owner and the owner's 
agents.  An attorney's files and records relating to the 
association are not records of the association and are not subject 
to inspection by unit owners or production in a legal proceeding.
	(c)  The association shall, as a common expense, annually 
obtain an independent audit of the records.  Copies of the audit 
must be made available to the unit owners.  An audit required by 
this subsection shall be performed by a certified public accountant 
if required by the bylaws or a vote of the board of directors or a 
majority vote of the members of the association voting at a meeting 
of the association.
	(d)  A declarant shall furnish copies to the association of 
the information required by Subsection (a) on the date the first 
unit is sold.
	(e)  Not later than the 30th day after the date of acquiring 
an interest in a unit, the unit owner shall provide the association 
with:
		(1)  the unit owner's mailing address, telephone 
number, and driver's license number, if any;
		(2)  the name and address of the holder of any lien 
against the unit, and any loan number;
		(3)  the name and telephone number of any person 
occupying the unit other than the unit owner;  and
		(4)  the name, address, and telephone number of any 
person managing the unit as agent of the unit owner.
	(f)  A unit owner shall notify the association not later than 
the 30th day after the date the owner has notice of a change in any 
information required by Subsection (e), and shall provide the 
information on request by the association from time to time.

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


	§ 82.115. ASSOCIATION AS TRUSTEE.  A third person dealing 
with an association in the association's capacity as a trustee may 
assume without inquiry the existence of trust powers and their 
proper exercise by the association.  A third person who lacks actual 
knowledge that an association is exceeding or improperly exercising 
its powers is fully protected in dealing with the association as if 
the association possessed and properly exercised the powers it 
purports to exercise.  A third person is not bound to ensure the 
proper application of trust assets paid or delivered to an 
association in its capacity as trustee.

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


	§ 82.116. MANAGEMENT CERTIFICATE.  (a) An association 
shall record in each county in which any portion of the condominium 
is located a certificate, signed and acknowledged by an officer of 
the association, stating:
		(1)  the name of the condominium;                                             
		(2)  the name of the association;                                             
		(3)  the location of the condominium;                                         
		(4)  the recording data for the declaration;                                  
		(5)  the mailing address of the association, or the 
name and mailing address of the person or entity managing the 
association;  and
		(6)  other information the association considers 
appropriate.               
	(b)  The association shall record a management certificate 
not later than the 30th day after the date the association has 
notice of a change in any information in a recorded certificate 
required by Subdivisions (a)(1)-(5).
	(c)  The association and its officers, directors, employees, 
and agents are not subject to liability to any person for delay or 
failure to record a management certificate, unless the delay or 
failure is wilful or caused by gross negligence.

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


	§ 82.117. OBLIGATIONS OF UNIT OWNERS.  Without limiting 
the obligations of the unit owners and except as provided by the 
declaration, bylaws, rules of the association, or this chapter, the 
unit owner:
		(1)  shall pay assessments, interest, and other charges 
properly levied by the association against the owner or the owner's 
unit, and shall pay regular periodic assessments without demand by 
the association;
		(2)  shall comply with the declaration, bylaws, and 
rules of the association, including any amendments;
		(3)  shall pay for damage to the condominium caused by 
the negligence or wilful misconduct of the owner, an occupant of the 
owner's unit, or the owner or occupant's family, guests, employees, 
contractors, agents, or invitees;  and
		(4)  is liable to the association for violations of the 
declaration, bylaws, or rules of the association, including any 
amendments, by the owner, an occupant of the owner's unit, or the 
owner or occupant's family, guests, employees, agents, or invitees, 
and for costs incurred by the association to obtain compliance, 
including attorney's fees whether or not suit is filed.

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

SUBCHAPTER D. PROTECTION OF PURCHASERS


	§ 82.151. APPLICABILITY.  (a) This subchapter applies to 
each unit subject to this chapter, except as provided by Subsection 
(b) or as modified or waived by the agreement of a purchaser of a 
unit in a condominium in which all units are restricted to 
nonresidential use.
	(b)  A condominium information statement or resale 
certificate need not be prepared or delivered in the case of:
		(1)  a gratuitous disposition of a unit;                                      
		(2)  a disposition pursuant to court order;                                   
		(3)  a disposition by a government or governmental 
agency;                  
		(4)  a disposition by foreclosure or deed in lieu of 
foreclosure;  or       
		(5)  a disposition that may be canceled at any time, for 
any reason, and without penalty.

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


	§ 82.152. LIABILITY FOR CONDOMINIUM INFORMATION 
STATEMENT.  (a) Except as provided by Subsection (b), a declarant 
shall prepare a condominium information statement before offering 
to the public any interest in a unit.
	(b)  A declarant may transfer responsibility for preparation 
of all or a part of the condominium information statement to a 
successor declarant or to a person in the business of selling real 
property who intends to offer units in the condominium for the 
person's own account.  On such transfer, the transferor shall 
provide the transferee with any information necessary to enable the 
transferee to prepare a condominium information statement.
	(c)  A declarant or other person in the business of selling 
real property who offers a unit for the person's own account to a 
purchaser shall provide a purchaser of a unit with a copy of the 
condominium information statement, as amended, before conveyance 
of the unit or the date of a contract of sale, whichever is earlier.
	(d)  The person preparing all or part of the condominium 
information statement is liable for any false or misleading 
statement or for any omission of material fact in the portion of the 
condominium information statement that the person prepared.  If a 
declarant did not prepare any part of a condominium information 
statement that the declarant delivers, the declarant is not liable 
for any false or misleading statement or any omission of material 
fact unless the declarant actually knew or should have known of the 
statement or omission.

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


	§ 82.153. CONDOMINIUM INFORMATION STATEMENTS IN 
GENERAL.  (a) A condominium information statement must contain or 
accurately disclose:
		(1)  the name and principal address of the declarant 
and of the condominium;
		(2)  a general description of the condominium that 
includes the types of units and the maximum number of units;
		(3)  the minimum and maximum number of additional 
units, if any, that may be included in the condominium;
		(4)  a brief narrative description of any development 
rights reserved by a declarant and of any conditions relating to or 
limitations upon the exercise of development rights;
		(5)  copies of the declaration, articles of 
incorporation of the association, the bylaws, any rules of the 
association, and amendments to any of them, and copies of leases and 
contracts, other than loan documents, that are required by the 
declarant to be signed by purchasers at closing;
		(6)  a projected or pro forma budget for the 
association that complies with Subsection (b) for the first fiscal 
year of the association following the date of the first conveyance 
to a purchaser, identification of the person who prepared the 
budget, and a statement of the budget's assumptions concerning 
occupancy and inflation factors;
		(7)  a general description of each lien, lease, or 
encumbrance on or affecting the title to the condominium after 
conveyance by the declarant;
		(8)  a copy of each written warranty provided by the 
declarant;             
		(9)  a description of any unsatisfied judgments against 
the association and any pending suits to which the association is a 
party or which are material to the land title and construction of 
the condominium of which a declarant has actual knowledge;
		(10)  a general description of the insurance coverage 
provided for the benefit of unit owners;  and
		(11)  current or expected fees or charges to be paid by 
unit owners for the use of the common elements and other facilities 
related to the condominium.
	(b)  A budget under Subsection (a)(6) must be prepared in 
accordance with generally accepted accounting principles and a 
consideration of the physical condition of the condominium and be 
based on assumptions that, to the best of the declarant's knowledge 
and belief, are reasonable.  The budget must include:
		(1)  a statement of the amount included, or a statement 
that no amount is included, in the budget as a reserve;  and
		(2)  the projected monthly common expense assessment 
for each type of unit. 
	(c)  A declarant shall promptly amend the condominium 
information statement to reflect a material and substantial change 
in its contents.  If the change may adversely affect a prospective 
purchaser who has received a condominium information statement, the 
declarant shall furnish a copy of the amendment to the prospective 
purchaser before closing.

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


	§ 82.154. CONDOMINIUMS WITH CONVERSION BUILDINGS.  If a 
building contains units that may be occupied for residential use, 
the condominium information statement of a condominium containing 
any conversion building must additionally contain:
		(1)  a dated statement by the declarant, based on a 
report by an independent architect or engineer, describing the 
present condition of all structural components and mechanical and 
electrical installations material to the use and enjoyment of the 
building;
		(2)  a dated statement by the declarant of the expected 
useful life of each item reported in Subdivision (1) or a statement 
that no representations are made in that regard;  and
		(3)  a list of violations of building code or other 
governmental regulations of which the declarant has received notice 
and that have not been cured, together with the estimated cost of 
curing those violations.

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


	§ 82.155. CONDOMINIUM SECURITIES.  A declarant satisfies 
all requirements relating to preparation of a condominium 
information statement if an interest in the condominium is 
currently registered with the Securities and Exchange Commission of 
the United States and if the declarant delivers to the purchaser a 
copy of the public offering statement filed with the commission.

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


	§ 82.156. PURCHASER'S RIGHT TO CANCEL.  (a) If a 
purchaser of a unit from a unit owner other than a declarant has not 
received from the seller the declaration, bylaws, and association 
rules required by Section 82.157 before the purchaser executes a 
contract of sale or if the contract does not contain an underlined 
or bold-print provision acknowledging the purchaser's receipt of 
those documents and recommending that the purchaser read those 
documents before executing the contract, the purchaser may cancel 
the contract before the sixth day after the date the purchaser 
receives those documents.  If a purchaser has not received a resale 
certificate before executing a contract of sale, the purchaser may 
cancel the contract before the sixth day after the date the 
purchaser receives the resale certificate or executes a waiver 
under Section 82.157, whichever occurs first.
	(b)  If a purchaser from a declarant has not received the 
condominium information statement before the purchaser executes a 
contract of sale or if a contract does not contain an underlined or 
bold-print provision acknowledging the purchaser's receipt of the 
condominium information statement and recommending that the 
purchaser read the condominium information statement before 
executing the contract, the purchaser may cancel the contract 
before the sixth day after the date the purchaser receives the 
condominium information statement.
	(c)  If a purchaser elects to cancel a contract under 
Subsection (a) or (b), the cancellation must be by hand-delivering 
written notice of cancellation to the declarant or selling unit 
owner or by mailing notice of cancellation by certified United 
States mail, return receipt requested, to the offeror or the 
offeror's agent for service of process within the five-day 
cancellation period.  Cancellation is without penalty, and all 
payments made by the purchaser before cancellation must be 
refunded.
	(d)  A selling unit owner may not require a purchaser to 
close until the purchaser is given the declaration, bylaws, and any 
association rules.  A declarant may not require a purchaser to close 
until a condominium information statement has been furnished to the 
purchaser.

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


	§ 82.157. RESALE OF UNIT.  (a) Except as provided by 
Subsection (c), if a unit owner other than a declarant intends to 
sell a unit, before executing a contract or conveying the unit, the 
unit owner must furnish to the purchaser a current copy of the 
declaration, bylaws, any association rules, and a resale 
certificate that must have been prepared not earlier than three 
months before the date it is delivered to the purchaser.  The resale 
certificate must be issued by the association and must contain the 
current operating budget of the association and statements of:
		(1)  any right of first refusal or other restraint 
contained in the declaration that restricts the right to transfer a 
unit;
		(2)  the amount of the periodic common expense 
assessment and the unpaid common expenses or special assessments 
currently due and payable from the selling unit owner;
		(3)  other unpaid fees or amounts payable to the 
association by the selling unit owner;
		(4)  capital expenditures, if any, approved by the 
association for the next 12 months;
		(5)  the amount of reserves, if any, for capital 
expenditures and of portions of those reserves designated by the 
association for a specified project;
		(6)  any unsatisfied judgments against the 
association;                     
		(7)  the nature of any pending suits against the 
association;               
		(8)  insurance coverage provided for the benefit of 
unit owners;            
		(9)  whether the board has knowledge that any 
alterations or improvements to the unit or to the limited common 
elements assigned to that unit violate the declaration, bylaws, or 
association rules;
		(10)  whether the board has received notice from a 
governmental authority concerning violations of health or building 
codes with respect to the unit, the limited common elements 
assigned to that unit, or any other portion of the condominium;
		(11)  the remaining term of any leasehold estate that 
affects the condominium and the provisions governing an extension 
or renewal of the lease;  and
		(12)  the name, mailing address, and telephone number 
of the association's managing agent, if any.
	(b)  Not later than the 10th day after the date of receiving a 
written request by a unit owner, an association shall furnish to the 
selling unit owner or the owner's agent a resale certificate signed 
and dated by an officer or authorized agent of the association 
containing the information required by Subsection (a).  A selling 
unit owner or the owner's agent is not liable to the purchaser for 
erroneous information provided by the association in the 
certificate.  If an association does not furnish a resale 
certificate or any information required in the certificate within 
the 10-day period, the unit owner may provide the purchaser with a 
sworn affidavit signed by the unit owner in lieu of the certificate.  
An affidavit must state that the unit owner requested information 
from the association concerning its financial condition, as 
required by this section, and that the association did not timely 
provide a resale certificate or the information required in the 
certificate.  If a unit owner has furnished an affidavit to a 
purchaser, the unit owner and the purchaser may agree in writing to 
waive the requirement to furnish a resale certificate.  The 
association is not liable to a selling unit owner for delay or 
failure to furnish a resale certificate, and an officer or agent of 
the association is not liable for a delay or failure to furnish a 
certificate unless the officer or agent wilfully refuses to furnish 
the certificate or is grossly negligent in not furnishing the 
resale certificate.  Failure to provide a resale certificate does 
not void a deed to a purchaser.
	(c)  If a properly executed resale certificate incorrectly 
states the total of delinquent sums owed by the selling unit owner 
to the association, the purchaser is not liable for payment of 
additional delinquencies that are unpaid on the date the 
certificate is prepared and that exceed the total sum stated in the 
certificate.  A unit owner or the owner's agent is not liable to a 
purchaser for the failure or delay of the association to provide the 
certificate in a timely manner.
	(d)  A resale certificate does not affect:                                     
		(1)  an association's right to recover debts or claims 
that arise or become due after the date the certificate is prepared;  
or
		(2)  an association's lien on a unit securing payment of 
future assessments.
	(e)  A purchaser, lender, or title insurer who relies on a 
resale certificate is not liable for any debt or claim that is not 
disclosed in the certificate.  An association may not deny the 
validity of any statement in the certificate.

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


	§ 82.158. ESCROW OF DEPOSITS.  A deposit made in 
connection with the purchase or reservation of a unit from a 
declarant shall be placed in escrow and held in this state in an 
account designated for that purpose by a real estate broker, an 
attorney, a title insurance company licensed in this state, an 
independent bonded escrow company, or an institution whose accounts 
are insured by a governmental agency or instrumentality until 
delivered to the declarant at closing, delivered to the declarant 
because of the purchaser's default under a contract to purchase the 
unit, or refunded to the purchaser.  Escrow deposits may be placed 
in interest-bearing accounts, and the interest is payable as may be 
agreed in writing between the declarant and the purchaser.

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


	§ 82.159. RELEASE OF LIENS.  Before conveying real 
property to an association, a declarant shall have that real 
property released from all liens the foreclosure of which would 
deprive unit owners of any right of access to or easement of support 
of the owners' units, and all other liens on that real property 
unless the condominium information statement describes certain 
real property that may be conveyed subject to liens in specified 
amounts.

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


	§ 82.160. CONVERSION BUILDINGS.  (a) A declarant of a 
condominium containing a conversion building shall give each 
residential tenant or subtenant in possession of a portion of a 
conversion building notice of the conversion at least 60 days 
before the date the declarant will require the tenant or subtenant 
in possession to vacate.  The notice must state generally the rights 
of tenants and subtenants under this section and shall be 
hand-delivered to the unit or mailed by certified United States 
mail, return receipt requested, to the tenant or subtenant at the 
address of the unit or any other mailing address provided by the 
tenant or subtenant.  The declarant may not require a tenant or 
subtenant to vacate on less than 60 days' notice, except for 
nonpayment of rent, waste, or conduct that violates the rental 
agreement or is illegal, and the terms of a tenancy may not be 
altered during that period.  Failure of a declarant to give notice 
as required by this section is a defense to an action for 
possession.
	(b)  If a notice of conversion specifies a date by which a 
unit or proposed unit must be vacated and otherwise complies with 
Section 24.005, the notice also constitutes legal notice to vacate 
on that date for purposes of Section 24.005.  A declarant may not 
terminate a lease in violation of its terms.
	(c)  Unless expressly authorized by a rental agreement, a 
declarant may not make substantial alterations to the interior of a 
leased premises for purposes of a condominium conversion.

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


	§ 82.161. EFFECT OF VIOLATIONS ON RIGHTS OF ACTION AND 
ATTORNEY'S FEES.  (a) If a declarant or any other person subject to 
this chapter violates this chapter, the declaration, or the bylaws, 
any person or class of persons adversely affected by the violation 
has a claim for appropriate relief.
	(b)  The prevailing party in an action to enforce the 
declaration, bylaws, or rules is entitled to reasonable attorney's 
fees and costs of litigation from the nonprevailing party.

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


	§ 82.162. LABELING OF PROMOTIONAL MATERIAL.  If any 
improvement contemplated in a condominium is labeled "NEED NOT BE 
BUILT" on a plat or plan or is to be located within a portion of a 
condominium with respect to which the declarant has reserved a 
development right, no promotional material that describes or 
depicts the improvement may be displayed or delivered to 
prospective purchasers unless the description or depiction of the 
improvement is conspicuously labeled or identified as "NEED NOT BE 
BUILT."

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


	§ 82.163. DECLARANT'S OBLIGATION TO COMPLETE AND 
RESTORE.  The declarant shall complete all improvements labeled 
"MUST BE BUILT" on plats or plans.  The declarant is subject to 
liability for the prompt repair and restoration, to a condition 
compatible with the remainder of the condominium, of any portion of 
the condominium affected by the exercise of rights reserved 
pursuant to or created under this chapter.

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


	§ 82.164. LOANS AS ELIGIBLE INVESTMENTS.  (a) A loan on a 
condominium unit and the undivided interest in the common elements 
is an eligible investment for a bank, savings and loan association, 
trust company, life insurance company, or other lending institution 
that is authorized to make real property loans, and for an 
administrator, guardian, executor, trustee, individual, 
partnership, corporation, or other fiduciary that is authorized to 
make real property loans.  In determining eligibility, the 
existence of a prior lien for taxes, assessments, or other similar 
charges not yet delinquent may not be considered in determining 
whether a mortgage or deed of trust on the security is a first lien.  
This section does not change any provision of law that would 
otherwise be applicable that limits mortgage investments based on a 
special fraction or percentage of the value of the mortgaged 
property.
	(b)  An association's lien for assessments does not make a 
condominium unit ineligible for loans for which the unit would 
otherwise qualify.

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