PROPERTY CODE
TITLE 7. CONDOMINIUMS
CHAPTER 81. CONDOMINIUMS CREATED BEFORE ADOPTION OF UNIFORM
CONDOMINIUM ACT
SUBCHAPTER A. PROVISIONS GENERALLY APPLICABLE TO CONDOMINIUMS
§ 81.001. SHORT TITLE. This chapter may be cited as the
Condominium Act.
Acts 1983, 68th Leg., p. 3616, ch. 576, § 1, eff. Jan. 1, 1984.
§ 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, § 3, eff. Jan. 1, 1994.
§ 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, § 1, eff. Jan. 1, 1984.
§ 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, § 1, eff. Jan. 1, 1984.
SUBCHAPTER B. CREATION, ALTERATION, AND TERMINATION OF
CONDOMINIUMS
§ 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, § 1, eff. Jan. 1, 1984.
§ 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, § 1, eff. Jan. 1, 1984.
Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 18, § 9(b), eff.
Oct. 2, 1984.
§ 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, § 1, eff. Jan. 1, 1984.
§ 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, § 1, eff. Jan. 1, 1984.
Amended by Acts 1984, 68th Leg., 2nd C.S., ch. 18, § 9(c), eff.
Oct. 2, 1984.
§ 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, § 1, eff. Jan. 1, 1984.
§ 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, § 1, eff. Jan. 1, 1984.
§ 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, § 1, eff. Jan. 1, 1984.
§ 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, § 1, eff. Jan. 1, 1984.
§ 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, § 1, eff. Jan. 1, 1984.
§ 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, § 1, eff. Jan. 1, 1984.
Amended by Acts 1989, 71st Leg., ch. 157, § 1, eff. May 25, 1989.
§ 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, § 9(d), eff.
Oct. 2, 1984.
§ 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, § 1, eff. Sept. 1, 2003.
SUBCHAPTER C. CONDOMINIUM MANAGEMENT
§ 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, § 1, eff. Jan. 1, 1984.
§ 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, § 1, eff. Jan. 1, 1984.
§ 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, § 1, eff. Jan. 1, 1984.
§ 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, § 1, eff. Jan. 1, 1984.
§ 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, § 1, eff. Jan. 1, 1984.
§ 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, § 1, eff. Jan. 1, 1984.
§ 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, § 1, eff. Jan. 1, 1984.
§ 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, § 1, eff. Jan. 1, 1984.
§ 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, § 1, eff. Jan. 1, 1984.
§ 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, § 1, eff. Jan. 1, 1984.
