H.B. No. 4211         AN ACT   relating to certain residential property interests controlled by   certain entities.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Title 12, Property Code, is amended by adding   Chapter 223 to read as follows:   CHAPTER 223. BUSINESS ENTITY-OWNED RESIDENTIAL ARRANGEMENTS          Sec. 223.001.  DEFINITIONS. In this chapter:                (1)  "Business entity" means a partnership,   corporation, joint venture, limited liability company, or other   business organization or business association, however organized.                (2)  "Managing entity" means a business entity that   owns residential property used in a residential arrangement.                (3)  "Residential arrangement" means an arrangement in   which the purchaser of an interest in a business entity is entitled   to exclusive possession of residential property owned by the entity   as long as the purchaser holds the interest in the business entity.                (4)  "Residential property" means the real property and   improvements for a single-family house, duplex, triplex, or   quadruplex.          Sec. 223.002.  APPLICABILITY. This chapter does not apply   to a timeshare plan, as defined by Section 221.002.          Sec. 223.003.  AGREEMENTS AND RULES. (a) An agreement for   the purchase of an interest in a managing entity must disclose to   the purchaser that the agreement is for the purchase of an interest   in the entity and not in any residential property itself.          (b)  The purchase agreement and any other agreement or rules   governing the residential arrangement or the ownership interest in   the entity may not require that a dispute concerning the   arrangement or interest be brought before a tribunal other than a   court established under the laws of this state or the United States.          Sec. 223.004.  DISCRIMINATION PROHIBITED. A managing entity   may not take an action with respect to an interest in the entity in a   manner that would be a violation of Chapter 301 if the interest in   the entity were an interest in real property, including:                (1)  restricting the transfer of the interest;                (2)  imposing requirements to maintain the interest; or                (3)  refusing to grant an interest to an otherwise   qualified person.          Sec. 223.005.  TRANSFER OF INTEREST. Notwithstanding any   provision in an agreement between the owner and a managing entity,   an owner of an interest in a managing entity may transfer the   interest without approval from the managing entity.          Sec. 223.006.  CERTAIN CHARGES PROHIBITED. A managing   entity may not charge a fee for or share in the proceeds of the   transfer of an interest in the managing entity from an owner to a   subsequent purchaser.          Sec. 223.007.  ENFORCEMENT. (a)  A violation of this chapter   is a deceptive trade practice actionable under Subchapter E,   Chapter 17, Business & Commerce Code.          (b)  A court that finds a violation of this chapter may   enjoin a managing entity or a person affiliated with the managing   entity from taking action in furtherance of development of or   construction on residential property used in a residential   arrangement subject to an action under this section, including:                (1)  filing a petition with the Texas Commission on   Environmental Quality for the creation of a municipal utility   district under Chapter 49, Water Code;                (2)  taking action in connection with a petition for   the creation of a district described by Subdivision (1) filed with   the Texas Commission on Environmental Quality before the issuance   of the injunction; or                (3)  receiving, directly or indirectly, any public   money or benefit.          SECTION 2.  Section 301.042, Property Code, is amended by   adding Subsection (a-1) to read as follows:          (a-1)  Subsection (a) does not apply to the sale, rental, or   occupancy of a dwelling that is a single-family house, duplex,   triplex, or quadruplex located on a subdivided lot in a parcel of   land 25 acres or greater owned by a religious organization,   association, or society or a nonprofit institution or organization   operated, supervised, or controlled by or in conjunction with a   religious organization, association, or society.          SECTION 3.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution.  If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2025.       ______________________________ ______________________________      President of the Senate Speaker of the House                   I certify that H.B. No. 4211 was passed by the House on May 8,   2025, by the following vote:  Yeas 104, Nays 41, 2 present, not   voting; and that the House concurred in Senate amendments to H.B.   No. 4211 on May 29, 2025, by the following vote:  Yeas 110, Nays 26,   1 present, not voting.     ______________________________   Chief Clerk of the House               I certify that H.B. No. 4211 was passed by the Senate, with   amendments, on May 27, 2025, by the following vote:  Yeas 30, Nays   1.     ______________________________   Secretary of the Senate      APPROVED: __________________                   Date                       __________________                 Governor