CHAPTER 81. CONDOMINIUMS CREATED BEFORE ADOPTION OF UNIFORM CONDOMINIUM ACT - Texas Statutes

PROPERTY CODE

TITLE 7. CONDOMINIUMS

CHAPTER 81. CONDOMINIUMS CREATED BEFORE ADOPTION OF UNIFORM

CONDOMINIUM ACT

SUBCHAPTER A. PROVISIONS GENERALLY APPLICABLE TO CONDOMINIUMS

Sec. 81.001. SHORT TITLE. This chapter may be cited as the

Condominium Act.

Acts 1983, 68th Leg., p. 3616, ch. 576, Sec. 1, eff. Jan. 1,

1984.

Sec. 81.0011. APPLICABILITY. (a) This chapter applies only to

a condominium regime created before January 1, 1994. A

condominium regime created on or after January 1, 1994, is

governed by Chapter 82.

(b) A condominium regime created before January 1, 1994, to

which this chapter applies is also governed by Chapter 82 as

provided by Section 82.002.

Added by Acts 1993, 73rd Leg., ch. 244, Sec. 3, eff. Jan. 1,

1994.

Sec. 81.002. DEFINITIONS. In this chapter:

(1) "Apartment" means an enclosed space, regardless of whether

it is designed for residential or other use, that consists of one

or more rooms in a building and that has a direct exit to a

thoroughfare or to a common space that leads to a thoroughfare.

(2) "Building" includes each principal structure on or to be

erected on real property dedicated in a declaration to a

condominium regime.

(3) "Condominium" means a form of real property ownership that

combines separate ownership of individual apartments or units

with common ownership of other elements.

(4) "Council of owners" means all the apartment owners in a

condominium project.

(5) "Declaration" means the instrument that establishes property

under a condominium regime.

(6) "General common elements" means the property that is part of

a condominium regime other than property that is part of or

belongs to an apartment in the regime, including:

(A) land on which the building is erected;

(B) foundations, bearing walls and columns, roofs, halls,

lobbies, stairways, and entrance, exit, and communication ways;

(C) basements, flat roofs, yards, and gardens, except as

otherwise provided;

(D) premises for the lodging of janitors or persons in charge of

the building, except as otherwise provided;

(E) compartments or installation of central services such as

power, light, gas, water, refrigeration, central heat and air,

reservoirs, water tanks and pumps, and swimming pools; and

(F) elevators and elevator shafts, garbage incinerators, and all

other devices and installations generally existing for common

use.

(7) "Limited common elements" means a portion of the common

elements allocated by unanimous agreement of a council of owners

for the use of one or more but less than all of the apartments,

such as special corridors, stairways and elevators, sanitary

services common to the apartments of a particular floor, and

similar areas or facilities.

(8) "Master deed" means a deed that establishes property under a

condominium regime.

(9) "Master lease" means a lease that establishes property under

a condominium regime.

(10) "Project" means a plan to offer for sale or to sell real

property consisting of four or more apartments, rooms, office

spaces, or other units in an existing or proposed building as a

condominium.

(11) "Property" means real property, whether leased or owned,

the improvements on the property, and the incorporeal rights that

are appurtenant to the property.

Acts 1983, 68th Leg., p. 3616, ch. 576, Sec. 1, eff. Jan. 1,

1984.

Sec. 81.003. APPLICABILITY OF LOCAL ORDINANCES AND REGULATIONS.

(a) A planning or zoning commission of a county or municipality

may adopt regulations governing condominium regimes that

supplement this chapter.

(b) A local zoning ordinance must be construed to treat similar

structures, lots, or parcels in a similar manner regardless of

whether the property is a condominium or is leased.

Acts 1983, 68th Leg., p. 3617, ch. 576, Sec. 1, eff. Jan. 1,

1984.

SUBCHAPTER B. CREATION, ALTERATION, AND TERMINATION OF

CONDOMINIUMS

Sec. 81.101. CREATION OF CONDOMINIUM. An owner or developer of

an existing or a planned building establishes a condominium

regime by recording a master deed, master lease, or declaration

under Section 81.102.

Acts 1983, 68th Leg., p. 3618, ch. 576, Sec. 1, eff. Jan. 1,

1984.

Sec. 81.102. CONTENTS OF DECLARATION, MASTER DEED, OR MASTER

LEASE. (a) A declaration, master deed, or master lease for a

condominium must contain:

(1) the legal description of the real property dedicated to the

condominium regime, depicted by a plat of the property that

locates and identifies by letter each existing or proposed

building;

(2) a general description of each apartment, including the

square footage, location, number, and other information necessary

for identification of the apartment, depicted by a plat of the

floor of the building in which the apartment is located that

identifies the building by letter and the floor and the apartment

by number;

(3) a general description of each area not already described

that is subject to individual ownership and exclusive control,

such as a garage or carport, depicted by a plat that shows the

area and appropriately identifies it by letter or number;

(4) a description of the general common elements that are not

described under Subdivision 1;

(5) a description of the limited common elements;

(6) each apartment's fractional or percentage interest in the

entire condominium regime;

(7) a provision that the declaration may only be amended at a

meeting of the apartment owners at which the amendment is

approved by the holders of at least 67 percent of the ownership

interests in the condominium; and

(8) a provision that an amendment of the declaration may not

alter or destroy a unit or a limited common element without the

consent of the owners affected and the owners' first lien

mortgagees.

(b) A declaration, master deed, or master lease for a

condominium may contain any covenants or other matters the

declarant considers appropriate.

Acts 1983, 68th Leg., p. 3618, ch. 576, Sec. 1, eff. Jan. 1,

1984. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 18, Sec.

9(b), eff. Oct. 2, 1984.

Sec. 81.103. PUBLIC RECORDS. (a) Each county clerk shall

maintain suitable records called "Condominium Records" in which

the clerk shall record master deeds, master leases, and

declarations for condominiums.

(b) A county clerk shall record plats and other instruments in a

declaration without prior approval from any other authority.

(c) A document required or authorized by this chapter to be

recorded must be recorded according to law in the real property

records of the county in which the property to which the document

relates is located.

Acts 1983, 68th Leg., p. 3618, ch. 576, Sec. 1, eff. Jan. 1,

1984.

Sec. 81.104. APARTMENT OWNERSHIP. (a) An owner of an apartment

in a condominium regime owns it exclusively, and the owner may

possess, convey, or encumber the apartment, or subject it to

judicial acts, independently of the other apartments in the

condominium regime.

(b) An individual title or interest in an apartment in a

condominium regime is recordable.

(c) The entire interest in the condominium regime shall be

divided among the apartments.

(d) A person may own an apartment in a condominium regime

jointly or in common with others.

(e) A condominium association may not alter or destroy an

apartment or a limited common element without the consent of all

owners affected and the first lien mortgagees of all affected

owners.

Acts 1983, 68th Leg., p. 3619, ch. 576, Sec. 1, eff. Jan. 1,

1984. Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 18, Sec.

9(c), eff. Oct. 2, 1984.

Sec. 81.105. APARTMENT BOUNDARIES. (a) The boundaries of an

apartment in a condominium regime are the interior surfaces of

the apartment's perimeter walls, floors, and ceilings, and the

exterior surfaces of the apartment's balconies and terraces.

(b) Except for common elements, the portions of a building on

the boundaries of an apartment in a condominium regime and the

airspace within those boundaries are part of the apartment.

(c) In interpreting a legal instrument relating to an apartment

or to an apartment that has been reconstructed substantially

according to the original plans of the apartment, the physical

boundaries of the apartment are conclusively presumed to be the

proper boundaries of the apartment regardless of settling,

rising, or lateral movement of the building containing the

apartment and regardless of variances between boundaries shown on

the plat of the building and the actual boundaries of the

building.

Acts 1983, 68th Leg., p. 3619, ch. 576, Sec. 1, eff. Jan. 1,

1984.

Sec. 81.106. APARTMENT DEEDS. A deed to an apartment in a

condominium regime must:

(1) include by reference the plats in the declaration;

(2) state the encumbrances against the apartment;

(3) describe the apartment according to the plat; and

(4) state the apartment's fractional or percentage interest in

the condominium regime.

Acts 1983, 68th Leg., p. 3620, ch. 576, Sec. 1, eff. Jan. 1,

1984.

Sec. 81.107. INTERESTS IN COMMON ELEMENTS. An owner of an

apartment in a condominium regime shares ownership of the

regime's common elements with the other apartment owners. An

apartment owner may use the common elements according to their

intended purposes, as expressed in the plat, declaration, or

bylaws of the condominium regime, without interfering with the

rights of the other apartment owners.

Acts 1983, 68th Leg., p. 3620, ch. 576, Sec. 1, eff. Jan. 1,

1984.

Sec. 81.108. PARTITION OF COMMON ELEMENTS. (a) The ownership

of the general and the limited common elements of a condominium

regime may not be judicially partitioned or divided while they

are suitable for a condominium regime.

(b) A person may not initiate an action for partition of the

limited or general common elements of a condominium regime unless

the mortgages on the property are paid or the consent of the

mortgagees is obtained.

(c) An agreement contrary to this section is void.

Acts 1983, 68th Leg., p. 3621, ch. 576, Sec. 1, eff. Jan. 1,

1984.

Sec. 81.109. CONVEYANCE OF COMMON ELEMENTS. An apartment in a

condominium regime and the undivided interest of an apartment

owner in the common elements of the regime that are attributable

to the apartment may not be conveyed separately. If a conveyance

of an apartment does not refer to the common elements, the

undivided interest of the apartment owner in the general and the

limited common elements of the regime attributable to the

apartment is conveyed with the apartment.

Acts 1983, 68th Leg., p. 3622, ch. 576, Sec. 1, eff. Jan. 1,

1984.

Sec. 81.110. TERMINATION OF CONDOMINIUM REGIME. (a) By

unanimous agreement, or if the declaration provides for

termination by agreement of the owners, by agreement of the

holders of at least 67 percent or a stated percentage in the

declaration, whichever is greater, of the ownership interests in

the condominium, the owners of a building in a condominium regime

may terminate the regime and request the county clerk of the

county in which the regime is located to merge the records of the

estates that comprise the condominium regime, if any creditors in

whose behalf encumbrances against the building are recorded agree

to accept the undivided portions of the property owned by the

debtors as security, provided no amendment may be made to a

declaration to reduce the vote required for termination of the

condominium regime.

(b) If a condominium regime is terminated, each apartment owner

owns an undivided interest in the common property that

corresponds to the undivided interest previously owned by the

apartment owner in the common elements.

(c) Property that has been removed from a condominium regime may

be dedicated to another condominium regime at any time.

Acts 1983, 68th Leg., p. 3621, ch. 576, Sec. 1, eff. Jan. 1,

1984. Amended by Acts 1989, 71st Leg., ch. 157, Sec. 1, eff. May

25, 1989.

Sec. 81.111. AMENDMENT OF CONDOMINIUM DECLARATION. After a

condominium declaration is recorded with a county clerk, the

declaration may not be amended except at a meeting of the

apartment owners at which the amendment is approved by the

holders of at least 67 percent of the ownership interests in the

condominium.

Added by Acts 1984, 68th Leg., 2nd C.S., ch. 18, Sec. 9(d), eff.

Oct. 2, 1984.

Sec. 81.112. RESTRICTION RELATING TO CLUB MEMBERSHIP. (a) A

provision of a declaration, master deed, master lease, or other

recorded contract that requires owners of apartments in a

condominium regime 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 at a meeting of the apartment

owners at which the renewal is approved by the holders of at

least 67 percent of the ownership interests in the condominium

and the text of the renewed provision is recorded 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 a council of owners.

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

2003.

SUBCHAPTER C. CONDOMINIUM MANAGEMENT

Sec. 81.201. AUTHORITY OF COUNCIL OF OWNERS. (a) The council

of owners of a condominium regime may adopt and amend bylaws.

(b) A council of owners of a condominium regime may institute

litigation on behalf of two or more apartment owners concerning a

matter related to the common elements of two or more apartments.

The council of owners may delegate its authority under this

subsection by designating in the bylaws a person who may exercise

the authority. This subsection does not limit the right of an

apartment owner to bring an action in the apartment owner's own

behalf.

Acts 1983, 68th Leg., p. 3621, ch. 576, Sec. 1, eff. Jan. 1,

1984.

Sec. 81.202. BYLAWS. The bylaws of a condominium regime govern

the administration of the buildings that comprise the regime.

Acts 1983, 68th Leg., p. 3621, ch. 576, Sec. 1, eff. Jan. 1,

1984.

Sec. 81.203. VOTING MAJORITY. For the purposes of this chapter,

the apartment owners who own at least 51 percent of the interests

in a condominium regime, as determined under the declaration, are

a majority of the apartment owners.

Acts 1983, 68th Leg., p. 3621, ch. 576, Sec. 1, eff. Jan. 1,

1984.

Sec. 81.204. MAINTENANCE OF CONDOMINIUM. (a) An apartment

owner in a condominium regime is responsible for the apartment

owner's pro rata share of:

(1) the expenses to administer the condominium regime and to

maintain and repair the general common elements;

(2) in proper cases, the expenses to administer the limited

common elements of the buildings in the condominium regime; and

(3) other expenses approved by the council of owners.

(b) An apartment owner in a condominium regime is not exempted

from the obligation under this section to contribute toward the

expenses of the condominium regime by waiving the use of the

common elements or abandoning the apartment.

Acts 1983, 68th Leg., p. 3622, ch. 576, Sec. 1, eff. Jan. 1,

1984.

Sec. 81.205. INSURANCE. (a) By resolution of a majority of the

council of owners or in the manner provided or required by the

declaration or bylaws, the council of owners may acquire the

insurance it deems appropriate for the protection of the

buildings and the apartment owners.

(b) Insurance may be written in the name of the council of

owners, or in the name of a person designated in the declaration

or bylaws, as trustee for the apartment owners and their

mortgagees. Each apartment owner and mortgagee of an apartment

owner is a beneficiary of the policy, whether named as a

beneficiary or not, in proportion to the interest of an apartment

owner in the condominium regime as established by the

declaration.

(c) The acquisition of insurance by the council of owners does

not prejudice the right of an apartment owner in a condominium

regime to obtain insurance for the apartment owner's own benefit.

Acts 1983, 68th Leg., p. 3622, ch. 576, Sec. 1, eff. Jan. 1,

1984.

Sec. 81.206. DISPOSITION OF INSURANCE PROCEEDS. (a) Except as

provided by Subsection (b), if a building in a condominium regime

is damaged by a casualty against which it is insured, the

proceeds of the insurance policy shall be used to reconstruct the

building. The council of owners or the bylaws of the condominium

regime govern the conduct of the reconstruction.

(b) If more than two-thirds of a building in a condominium

regime requires reconstruction because of a casualty against

which it is insured, the council of owners may elect not to

reconstruct the building. Unless the council of owners

unanimously agrees otherwise, the insurance proceeds shall be

paid to the individual apartment owners or their mortgagees, as

their interest may appear, in proportion to the interest of an

apartment owner in the condominium regime as established by the

declaration.

Acts 1983, 68th Leg., p. 3622, ch. 576, Sec. 1, eff. Jan. 1,

1984.

Sec. 81.207. INSUFFICIENT INSURANCE. (a) If under Section

81.206 a damaged building in a condominium regime must be

reconstructed but insurance proceeds are insufficient to pay for

the cost of reconstruction, the apartment owners directly

affected by the damage shall pay the difference between the cost

of reconstruction and the insurance proceeds, unless the bylaws

provide otherwise. Each affected apartment owner shall contribute

an amount for reconstruction that is proportionate to the

interest of the apartment owner in the condominium regime.

(b) If one or more but less than a majority of the affected

apartment owners refuse to make a payment required under this

section, after a resolution by the majority of the affected

apartment owners stating the circumstances of the case and the

cost of the work, the majority may repair the damage at the

expense of all apartment owners benefited by the reconstruction.

(c) By a unanimous resolution subsequent to the date of a

casualty, the apartment owners in a condominium regime who are

concerned with the application of this section may elect to

modify its effects.

Acts 1983, 68th Leg., p. 3623, ch. 576, Sec. 1, eff. Jan. 1,

1984.

Sec. 81.208. ASSESSMENTS DUE ON CONVEYANCE. If an apartment

owner conveys the apartment and assessments against the apartment

are unpaid, the apartment owner shall pay the past due

assessments out of the sale price of the apartment, or the

purchaser shall pay the assessments, in preference to any other

charges against the property except:

(1) assessments, liens, and charges in favor of this state or a

political subdivision of this state for taxes on the apartment

that are due and unpaid; or

(2) an obligation due under a validly recorded mortgage.

Acts 1983, 68th Leg., p. 3623, ch. 576, Sec. 1, eff. Jan. 1,

1984.

Sec. 81.209. CONDOMINIUM RECORDS. (a) The administrator or

board of administration of a condominium regime or a person

appointed by the bylaws of the regime shall keep a detailed

written account of the receipts and expenditures related to the

building and its administration that specifies the expenses

incurred by the regime.

(b) The accounts and supporting vouchers of a condominium regime

shall be made available to the apartment owners for examination

on working days at convenient, established, and publicly

announced hours.

(c) The books and records of a condominium regime must comply

with good accounting procedures and must be audited at least once

each year by an auditor who is not associated with the

condominium regime.

Acts 1983, 68th Leg., p. 3625, ch. 576, Sec. 1, eff. Jan. 1,

1984.

Sec. 81.210. LOANS AS ELIGIBLE INVESTMENTS. (a) If a fiduciary

or a bank, savings and loan association, trust company, life

insurance company, or other lending institution is authorized to

make real estate loans, a loan on an apartment in a condominium

regime and the undivided interest in the common elements of the

regime that is appurtenant to the apartment is an eligible

investment for the fiduciary or lending institution.

(b) A lender may not consider the existence of a prior lien for

taxes, assessments, or other similar charges that are not

delinquent in determining whether a mortgage or deed of trust is

a first lien on the security for a loan under this section.

(c) For the purposes of this section, an apartment in a

condominium regime and the undivided interest in the common

elements appurtenant to the apartment are a single unit

independent of the other units in the regime.

(d) This section does not affect any otherwise applicable

provision of law that limits mortgage investments based on a

special fraction or percentage of the value of the mortgaged

property.

Acts 1983, 68th Leg., p. 3625, ch. 576, Sec. 1, eff. Jan. 1,

1984.