H.B. No. 4211 introduces Chapter 223 to the Texas Property Code, focusing on residential property interests controlled by business entities. The bill defines key terms such as "business entity," "managing entity," "residential arrangement," and "residential property." It establishes 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, or discriminating against potential interest holders based on criteria that would violate existing discrimination laws.

The bill also amends Section 301.042 of the Property Code to exempt certain sales, rentals, or occupancy of residential properties (single-family houses, duplexes, triplexes, or quadruplexes) located on larger parcels owned by religious organizations or nonprofit institutions from specific regulations. The enforcement provisions classify violations of this chapter as deceptive trade practices, allowing courts to enjoin managing entities from actions that further develop or construct on residential properties involved in these arrangements. 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)