Tex. Prop. Code Section 82.119
Procedures for Filing Suit or Initiating Arbitration Proceedings for Defect or Design Claims for Certain Associations

(a)

This section does not apply to an association with less than eight units.

(b)

In addition to any preconditions to filing suit or initiating an arbitration proceeding included in the declaration, an association, before filing suit or initiating an arbitration proceeding to resolve a claim pertaining to the construction or design of a unit or the common elements, must:

(1)

obtain an inspection and a written independent third-party report from a licensed professional engineer that:

(A)

identifies the specific units or common elements subject to the claim;

(B)

describes the present physical condition of the units or common elements subject to the claim; and

(C)

describes any modifications, maintenance, or repairs to the units or common elements performed by the unit owners or the association; and

(2)

obtain approval from unit owners holding more than 50 percent of the total votes allocated under the declaration, voting in person or by proxy as provided by Section 82.110 (Voting and Proxies), at a regular, annual, or special meeting called in accordance with the declaration or bylaws, as applicable.

(c)

The association must provide written notice of the inspection to be conducted by the engineer to each party subject to a claim not later than the 10th day before the date the inspection occurs. The notice must:

(1)

identify the party engaged to prepare the report required by Subsection (b)(1);

(2)

identify the specific units or common elements to be inspected; and

(3)

include the date and time the inspection will occur.

(d)

Each party subject to a claim may attend the inspection conducted by the engineer, either personally or through an agent.

(e)

Before providing the notice of the meeting under Subsection (f), an association must:

(1)

on completion of the independent third-party report, provide the report to each unit owner and each party subject to a claim; and

(2)

allow each party subject to a claim at least 90 days after the date of completion of the report to inspect and correct any condition identified in the report.

(f)

Not later than the 30th day before the date the meeting described by Subsection (b)(2) is held, the association must provide each unit owner with written notice of the date, time, and location of the meeting. The notice must also include:

(1)

a description of the nature of the claim, the relief sought, the anticipated duration of prosecuting the claim, and the likelihood of success;

(2)

a copy of the report required by Subsection (b)(1);

(3)

a copy of the contract or proposed contract between the association and the attorney selected by the board to assert or provide assistance with the claim;

(4)

a description of the attorney’s fees, consultant fees, expert witness fees, and court costs, whether incurred by the association directly or for which the association may be liable as a result of prosecuting the claim;

(5)

a summary of the steps previously taken by the association to resolve the claim;

(6)

a statement that initiating a lawsuit or arbitration proceeding to resolve a claim may affect the market value, marketability, or refinancing of a unit while the claim is prosecuted; and

(7)

a description of the manner in which the association proposes to fund the cost of prosecuting the claim.

(g)

The notice required by Subsection (f) must be prepared and signed by a person who is not:

(1)

the attorney who represents or will represent the association in the claim;

(2)

a member of the law firm of the attorney who represents or will represent the association in the claim; or

(3)

employed by or otherwise affiliated with the law firm of the attorney who represents or will represent the association in the claim.

(h)

The period of limitations for filing a suit or initiating an arbitration proceeding for a claim described by Subsection (b) is tolled until the first anniversary of the date the procedures are initiated by the association under that subsection if the procedures are initiated during the final year of the applicable period of limitation.
Added by Acts 2015, 84th Leg., R.S., Ch. 730 (H.B. 1455), Sec. 1, eff. September 1, 2015.

Source: Section 82.119 — Procedures for Filing Suit or Initiating Arbitration Proceedings for Defect or Design Claims for Certain Associations, https://statutes.­capitol.­texas.­gov/Docs/PR/htm/PR.­82.­htm#82.­119 (accessed Jun. 5, 2024).

82.001
Short Title 82.002
Applicability 82.003
Definitions 82.004
Variation by Agreement 82.005
Separate Titles and Taxation 82.006
Applicability of Local Ordinances, Regulations, and Building Codes 82.007
Condemnation 82.008
Venue 82.051
Creation of Condominium 82.052
Unit Boundaries 82.053
Construction and Validity of Declaration and Bylaws 82.054
Description of Units 82.055
Contents of Declaration for All Condominiums 82.056
Leasehold Condominiums 82.057
Allocation of Common Element Interests, Votes, and Common Expense Liabilities 82.058
Limited Common Elements 82.059
Plats and Plans 82.060
Exercise of Development Right 82.061
Alterations of Units 82.062
Relocation of Boundaries Between Adjoining Units 82.063
Subdivision of Units 82.064
Easement for Encroachments 82.065
Use for Sales Purposes 82.066
Easement Rights 82.067
Amendment of Declaration 82.068
Termination of Condominium 82.069
Rights of Secured Lenders 82.070
Meeting at Which Amendments May Be Adopted 82.101
Organization of Unit Owners’ Association 82.102
Powers of Unit Owners’ Association 82.103
Board Members and Officers 82.104
Transfer of Special Declarant Rights 82.105
Termination of Contracts and Leases of Declarant 82.106
Bylaws 82.107
Upkeep of Condominium 82.108
Meetings 82.109
Quorums 82.110
Voting and Proxies 82.111
Insurance 82.112
Assessments for Common Expenses 82.113
Association’s Lien for Assessments 82.114
Association Records 82.115
Association as Trustee 82.116
Management Certificate 82.117
Obligations of Unit Owners 82.118
Service of Process on Unit Owners in Certain Municipalities 82.119
Procedures for Filing Suit or Initiating Arbitration Proceedings for Defect or Design Claims for Certain Associations 82.120
Binding Arbitration for Certain Claims 82.121
Possession of Firearm or Firearm Ammunition on Condominium Property 82.151
Applicability 82.152
Liability for Condominium Information Statement 82.153
Condominium Information Statements in General 82.154
Condominiums with Conversion Buildings 82.155
Condominium Securities 82.156
Purchaser’s Right to Cancel 82.157
Resale of Unit 82.158
Escrow of Deposits 82.159
Release of Liens 82.160
Conversion Buildings 82.161
Effect of Violations on Rights of Action and Attorney’s Fees 82.162
Labeling of Promotional Material 82.163
Declarant’s Obligation to Complete and Restore 82.164
Loans as Eligible Investments 82.0675
Restriction Relating to Club Membership 82.1141
Access to Association Records
Green check means up to date. Up to date

Accessed:
Jun. 5, 2024

§ 82.119’s source at texas​.gov