Texas Real Estate Commission modifies management certificate rules for property associations

January 06, 2025 | 2025 Introduced Bills, Senate, 2025 Bills , Texas Legislation Bills, Texas


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Texas Real Estate Commission modifies management certificate rules for property associations
On January 6, 2025, Texas Senate Bill 711 was introduced in the Texas State Legislature, aiming to amend various provisions related to property owners' associations and the management of residential properties. The bill seeks to enhance transparency and accountability within property management while addressing specific homeowner concerns.

One of the primary objectives of SB 711 is to streamline the process of collecting and managing management certificates. The Texas Real Estate Commission will now collect these certificates solely for public accessibility through an online platform. This change is intended to improve transparency for homeowners and potential buyers regarding property management practices.

Key provisions of the bill include a limitation on the liability of associations and their representatives for delays in recording management certificates, unless such delays are deemed willful or grossly negligent. Additionally, unit owners will not be liable for attorney's fees related to delinquent assessments if the association fails to record the management certificate as required.

The bill also introduces a cap on fees that associations can charge for resale certificates, setting a maximum fee of $375. Furthermore, it clarifies the authority of property owners' associations regarding the installation of security cameras and fencing, allowing for certain regulations while also providing exceptions for homeowners needing enhanced security measures.

Debate surrounding SB 711 has focused on the balance between homeowners' rights and the regulatory powers of property owners' associations. Proponents argue that the bill will empower homeowners and provide necessary protections, while opponents express concerns about potential overreach by associations in regulating property modifications.

The implications of SB 711 are significant, as it addresses ongoing tensions between property owners and associations, particularly regarding transparency and homeowner autonomy. Experts suggest that if passed, the bill could lead to a shift in how associations operate, potentially fostering a more collaborative environment between homeowners and management entities.

As the legislative process unfolds, stakeholders will be closely monitoring discussions and potential amendments to SB 711, which could shape the future of property management in Texas. The bill's progression will be a key focus for both homeowners and property management professionals in the coming months.

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