CS/CS/CS/HB 735 - Real Property Bill Summary

• Prohibits counties and municipalities from delegating their police power to third parties through restrictions or covenants, while preserving their ability to amend, release, or terminate such restrictions later.

• Creates section 163.035 to prevent local governments from establishing common law customary use of property through ordinances or regulations.

• Authorizes lienholders in mortgage foreclosure actions to submit bankruptcy documents as admissions and creates rebuttable presumptions when defendants evidence intent to surrender property and receive discharge or repayment plan approval.

• Establishes the "Marketable Record Title Act" and modifies its provisions to extend preservation periods for covenants and restrictions, requiring two-thirds approval of affected parcel owners for homeowners' associations to preserve such restrictions.

• Enables parcel owners in communities without homeowners' associations to revive lapsed covenants and restrictions using existing procedures, with a sunset provision expiring June 30, 2019.