H.B. No. 4211 introduces Chapter 223 to the Property Code, which establishes regulations for residential arrangements owned by business entities. The bill defines key terms such as "business entity," "managing entity," "residential arrangement," and "residential property." It specifies that this chapter does not apply to timeshare plans and mandates that agreements for purchasing interests in managing entities must clearly inform purchasers that they are acquiring an interest in the entity rather than the residential property itself. Additionally, the bill prohibits managing entities from imposing restrictions on the transfer of interests, charging fees for transfers, or engaging in discriminatory practices regarding ownership interests.

Furthermore, the bill amends Section 301.042 of the Property Code to clarify that certain sales, rentals, or occupancy of residential properties (single-family houses, duplexes, triplexes, or quadruplexes) on large parcels owned by religious organizations or nonprofits are exempt from specific regulations. The enforcement provisions allow for violations of this chapter to be treated as deceptive trade practices, with courts empowered to enjoin managing entities from further actions related to residential properties in violation of the law. The act is set to take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if not.

Statutes affected:
Introduced: Property Code 301.042 (Property Code 301)
House Committee Report: (Property Code 301)
Engrossed: Property Code 301.042 (Property Code 301)
Senate Committee Report: Property Code 301.042 (Property Code 301)
Enrolled: Property Code 301.042 (Property Code 301)