The bill, H.B. No. 4211, introduces Chapter 223 to the Property Code, which establishes regulations for residential property interests controlled by business entities. It defines key terms such as "business entity," "managing entity," "residential arrangement," and "residential property." The chapter outlines that agreements for purchasing interests in managing entities must clarify that the purchase is for an interest in the entity rather than the residential property itself. Additionally, it prohibits managing entities from imposing restrictions on the transfer of interests, charging fees for transfers, and engaging in discriminatory practices that would violate existing property laws.

Furthermore, the bill amends Section 301.042 of the Property Code to specify that certain provisions do not apply to the sale, rental, or occupancy of residential properties (single-family houses, duplexes, triplexes, or quadruplexes) located on larger parcels of land owned by religious organizations or nonprofit institutions. This amendment aims to provide clarity and protection for specific residential arrangements associated with these entities. The act is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Property Code 301.042 (Property Code 301)