2021 Texas Statutes
Occupations Code
Title 14 - Regulation of Motor Vehicles and Transportation
Subtitle A - Regulations Related to Motor Vehicles
Chapter 2301 - Sale or Lease of Motor Vehicles
Subchapter J. Manufacturers, Distributors, and Representatives
Section 2301.481. Property Use Agreement
Sec. 2301.481. PROPERTY USE AGREEMENT. (a) A manufacturer, distributor, or representative may not require that a dealer enter into a property use agreement as a condition of the manufacturer, distributor, or representative:
(1) entering into a franchise;
(2) approving a franchised dealer's application to add a line-make;
(3) approving a franchised dealer's application to relocate a franchise; or
(4) approving a sale or transfer of a dealer, dealership, or franchise.
(b) The following provisions in a property use agreement are void and unenforceable:
(1) a limitation on the franchised dealer's ability to add a line-make; or
(2) a provision that binds a franchised dealer's successor.
(c) A property use agreement expires on the earlier of:
(1) the date provided by the property use agreement; or
(2) the termination of the franchise between the parties to the property use agreement.
(d) This section applies to a subsidiary of, or a person controlled by, a manufacturer, distributor, or representative.
Added by Acts 2011, 82nd Leg., R.S., Ch. 137 (S.B. 529), Sec. 11, eff. September 1, 2011.
