6/11/10

Yesterday, Texas Attorney General Opinion No. GA-0780 (2010) was issued on "Application and constitutionality of section 5.017(b) of the Texas Property Code with respect to restrictive covenants that were in existence and recorded in a county's public records prior to the statute's effective date."

The opinion explains a general legal tenet that, “The Code Construction Act instructs that '[a] statute is presumed to be prospective in its operation unless expressly made retrospective.' Tex. Gov't Code Ann. § 311.022 (Vernon 2005) (emphasis added).” 

The opinion states “Section 5.017 of the Texas Property Code prohibits and declares void deed restrictions and other covenants running with the land that require certain transfer fees Tex. Prop. Code Ann. § 5.017(b) (Vernon Supp. 2009).…[however]…Subsection (c) creates exceptions for fees that are payable to certain property owners' associations, section 501(c)(3) entities, and governmental entities.”

The Summary to the Opinion stated,

"Section 5.017(b) of the Property Code does not apply to restrictive covenants that were in existence and recorded prior to the statute's effective date.."

 To read the opinion, click on the link below.

http://www.oag.state.tx.us/opinions/opinions/50abbott/op/2010/htm/ga-0780.htm