Vote Recommendation | Economic Freedom | Property Rights | Personal Responsibility | Limited Government | Individual Liberty |
---|---|---|---|---|---|
Neutral | Neutral | Neutral | Neutral | Negative | Neutral |
SB 834, if passed,
would modify the Property Code (Subchapter C, Chapter 28) by adding two new
sections, 82.119, and 82.120, each of which will be discussed in turn. The
first change regards new procedures for filing suit and the second change
regards binding arbitration made on certain claims.
Section 82.119 places new requirements on condominium
associations (with more than eight units) if said associations wish to file
suit for defects or design claims. Associations would be required to obtain an
independent inspection from a third party attesting to the elements in
question, approval of the unit owner who holds 50% or more of votes, and must provide
written notice to each party subject to the claim. This notice must identify
all parties and elements involved, and include the date and time of the
proposed inspection.
This section also requires that a special meeting be held in
which each owner is provided a written notice on the subject of
the claim which describes the nature of the claim, among other legal
information (listed under subsection f of the bill)
Section 82.229 adds new language to the code regarding binding
arbitration for certain claims. Any claim made under the above section
pertaining to construction or design elements must be resolved via binding
arbitration. This binding arbitration requirement does not apply retroactively
to claims which occurred prior to the passage of this bill.
SB 834 offers both positive and negative
developments. On the one hand, the bill would strengthen property rights.
Currently condominium associations need not inform individual unit owners of
suits filed for defects and this process could adversely affect property
values. SB 834 would make unit owners aware of the situation and given somewhat
detailed notification. On the other hand this process comes at the cost of the
detailed regulations laid forth in the bill.
The requirement that
this be resolved via binding arbitration might not be necessary. We also take
issue with the exemption of condominiums with less than eight units.
Ultimately, the gains in the realm of property rights are somewhat negated by
these other concerns. As such we are neutral on SB 834.