Texas SB 1372 Signed by Governor Perry


Issue Brief

Due to the many confusing sections of the Texas Property Code that could apply to timeshare owners' associations in Texas, ARDA and ARDA-ROC supported SB 1372, that will exempt timeshare associations from those sections and establish basic provisions for timeshare associations under the Texas Timeshare Act. 


The bill, that adds a new Subchapter I. to the Texas Timeshare Act, establishes basic operating procedures for timeshare owners' associations in Texas and sets standards for the developer control period of the association.  The new developer control period only applies to associations created after the bill is enacted.  Now that the bill has been signed by Governor Perry it will take effect on September 1, 2013.

Position/Call to Action

ARDA and ARDA-ROC decided to support this legislation to avoid the problems experienced in 2011, when 51 bills affecting owners' associations were introduced, several of which would have adversely affected timeshare associations had they been enacted.  The 2013 bills will clarify what provisions apply to timeshares and protect their associations from burdensome provisions in other sections of the Property Code.  It was submitted to the Texas Real Estate Commission for their review.  For existing timeshare associations, the bill in most cases provides that their project instruments control and, if they wish, existing associations can opt-out of the new law (but would lose the protection of the exemption from other whole-ownership HOA laws).  The House version is HB 2944 by Rep. Phil King and the Senate version is SB 1372 by Sen. Hinojosa. 

Issue Updates

SB 1372 was signed by Governor Perry and June 14, 2013 and was effective on September 1, 2013.

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