S.B. No. 1919

	AN ACT
	relating to the requirements for recording a property owners'
	association management certificate.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 209.004, Property Code, is amended by
	amending Subsections (a) and (c) and adding Subsections (d), (e),
	and (f) to read as follows:
	(a)  A property owners' association shall record in each
	county in which any portion of the residential subdivision is
	located a management certificate, signed and acknowledged by an
	officer or the managing agent of the association, stating:
	(1)  the name of the subdivision;
	(2)  the name of the association;
	(3)  the recording data for the subdivision;
	(4)  the recording data for the declaration;
	(5)  the name and mailing address of the association;
	(6)  [or] the name and mailing address of the person
	managing the association or the association's designated
	representative; and
	(7) [(6)]  other information the association considers
	appropriate.
	(c)  Except as provided under Subsections (d) and (e), the
	[The] property owners' association and its officers, directors,
	employees, and agents are not subject to liability to any person for
	a delay in recording or failure to record a management certificate,
	unless the delay or failure is wilful or caused by gross negligence.
	(d)  If a property owners' association fails to record a
	management certificate or an amended management certificate under
	this section, the purchaser, lender, or title insurance company or
	its agent in a transaction involving property in the property
	owners' association is not liable to the property owners'
	association for:
	(1)  any amount due to the association on the date of a
	transfer to a bona fide purchaser; and
	(2)  any debt to or claim of the association that
	accrued before the date of a transfer to a bona fide purchaser.
	(e)  A lien of a property owners' association that fails to
	file a management certificate or an amended management certificate
	under this section to secure an amount due on the effective date of
	a transfer to a bona fide purchaser is enforceable only for an
	amount incurred after the effective date of sale.
	(f)  For purposes of this section, "bona fide purchaser"
	means:
	(1)  a person who pays valuable consideration without
	notice of outstanding rights of others and acts in good faith; or
	(2)  a third-party lender who acquires a security
	interest in the property under a deed of trust.
	SECTION 2.  The change in law made by this Act applies only
	to a transfer of an interest to a bona fide purchaser on or after the
	effective date of this Act. A transfer of an interest to a bona fide
	purchaser before the effective date of this Act is covered by the
	law in effect when the transaction occurred, and the former law is
	continued in effect for that purpose.
	SECTION 3.  A property owners' association that exists on
	September 1, 2009, shall file the information required by the
	changes in law made by this Act not later than May 1, 2010.
	SECTION 4.  This Act takes effect September 1, 2009.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 1919 passed the Senate on
	April 30, 2009, by the following vote:  Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 1919 passed the House on
	May 12, 2009, by the following vote:  Yeas 143, Nays 0, one
	present not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor