Bill > HB4211

This bill introduces new regulations for residential property interests controlled by business entities, creating a comprehensive framework to protect purchasers' rights. The bill defines key terms like "business entity" and "residential arrangement" and establishes several important protections for individuals purchasing interests in such entities. Specifically, purchase agreements must clearly disclose that the transaction involves an interest in the entity, not the property itself, and dispute resolution must be conducted in state or federal courts. The bill prohibits discrimination in entity interest transfers, allowing owners to transfer their interests without managing entity approval and preventing the managing entity from charging transfer fees. Additionally, the bill makes violations of these provisions actionable under deceptive trade practice laws, with potential court injunctions that could restrict a managing entity's ability to develop property or receive public funds. The bill also includes a provision exempting certain religious organizations and nonprofit institutions from specific housing discrimination regulations when the property is located on a large parcel of land. The legislation would take effect immediately if it receives a two-thirds vote in the legislature, otherwise becoming effective on September 1, 2025.

Business and Industry, Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB4211