Texas Property Code

§ 5.202 — CERTAIN PRIVATE TRANSFER FEE OBLIGATIONS VOID

PR § 5.202Title 2. CONVEYANCES · Ch. 5. CONVEYANCES · Art. G. CERTAIN PRIVATE TRANSFER FEES PROHIBITED; PRESERVATION OF PRIVATE REAL PROPERTY RIGHTS

Statute text

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(a)Except as provided by this subchapter, a private transfer fee obligation created on or after the effective date of this subchapter is not binding or enforceable against a subsequent owner or subsequent purchaser of an interest in real property and is void.

(b)For purposes of this subchapter, the following payments are not considered private transfer fee obligations:

(1)consideration paid by a purchaser to a seller for an interest in real property transferred, including, as applicable, a mineral interest transferred, including additional consideration paid to a seller for the property's appreciation, development, or sale after the interest in the property has been transferred to the purchaser, if the additional consideration is paid only once and that payment does not bind successors in interest to the property to any private transfer fee obligation;

(2)a commission paid to a licensed real estate broker under a written agreement between a seller or purchaser and the broker, including an additional commission for the property's appreciation, development, or sale after the interest in property is transferred to the purchaser;

(3)interest, a fee, a charge, or another type of payment to a lender under a loan secured by a mortgage on the property, including:

(A)a fee payable for the lender's consent to an assumption of the loan or transfer of the property subject to the mortgage;

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Legislative history

Acts 2017, 85th Leg., R.S., Ch. 812 (H.B. 755), Sec. 1, eff. September 1, 2017.