§ 10-556. Notice of deed restrictions upon conveyance of property.  


Latest version.
  • (a)

    In this section the following words and terms shall have the meanings herein ascribed:

    (1)

    Deed restrictions shall have the meaning ascribed to the word "restriction" in Section 230.002 of the Local Government Code, as amended, provided that it shall not be deemed to include any restrictions that by their express provisions have terminated or any provisions contained within any restrictions to the extent and only to the extent that the provisions restrict the sale, rental, or use of property on the basis of race, color, religion, sex or national origin.

    (2)

    Sale or conveyance means any transfer of any lot, tract or parcel of real property subject to deed restrictions that is situated in whole or in part within the corporate limits of the city, except:

    a.

    A conveyance by trustee's or substitute trustee's deed to the lienholder pursuant to a foreclosure sale;

    b.

    A conveyance by deed to the lienholder in full or partial satisfaction of a debt secured by the property conveyed;

    c.

    A deed of trust conveyed to secure a lien;

    d.

    An auction sale conducted by a public official pursuant to an order of a court of competent jurisdiction; or

    e.

    A conveyance in which the purchaser is a governmental entity.

    Without limitation, the term shall include an executory contract of purchase and sale having a performance period of more than six months.

    (3)

    Purchaser shall mean each person who constitutes a grantee, purchaser, buyer, or transferee in a sale or conveyance, regardless of the amount or nature of the consideration received.

    (4)

    Seller shall mean each person who constitutes a seller, grantor or transferor in a sale or conveyance, regardless of the amount or nature of the consideration received.

    (b)

    It shall be the duty of each seller to ensure that each buyer receives, in connection with each sale or conveyance, notice issued in accordance with the terms of this section in the form of Exhibit A to Ordinance No. 89-1312 which exhibit is incorporated herein by reference. The following procedure shall be followed in the giving and recording of the notice:

    (1)

    The notice shall be given to each purchaser at the final closing of the sale and purchase; provided, however, seller may provide the notice prior to closing;

    (2)

    Each seller and each purchaser shall sign and acknowledge the notice; and

    (3)

    Following the execution, acknowledgment and closing of the sale and purchase, the notice shall be recorded in the real property records of the county in which the property is located.

    (c)

    The failure of any seller to comply with this section shall constitute a misdemeanor punishable upon conviction by a fine of not more than $500.00. Each person who constitutes a seller shall be criminally responsible and each sale or conveyance for which the seller has failed to comply with this section shall constitute a separate offense.

    (Ord. No. 89-1312, § 2, 9-20-89; Ord. No. 2014-364, § 4, 4-30-2014)

    Note— Formerly § 41-11.