Tex. Prop. Code § 209.0052

(a) This section does not apply to a contract entered into by an association during the development period. (b) An association may enter into an enforceable contract with a current association board member, a person related to a current association board member within the third degree by consanguinity or affinity, as determined under Chapter 573 (Degrees of Relationship; Nepotism Prohibitions) , Government Code, a company in which a current association board member has a financial interest in at least 51 percent of profits, or a company in which a person related to a current association board member within the third degree by consanguinity or affinity, as determined under Chapter 573 (Degrees of Relationship; Nepotism Prohibitions) , Government Code, has a financial interest in at least 51 percent of profits only if the following conditions are satisfied: (1) the board member, relative, or company bids on the proposed contract and the association has received at least two other bids for the contract from persons not associated with the board member, relative, or company, if reasonably available in the community; (2) the board member: (A) is not given access to the other bids; (B) does not participate in any board discussion regarding the contract; and (C) does not vote on the award of the contract; (3) the material facts regarding the relationship or interest with respect to the proposed contract are disclosed to or known by the association board and the board, in good faith and with ordinary care, authorizes the contract by an affirmative vote of the majority of the board members who do not have an interest governed by this subsection; and (4) the association board certifies that the other requirements of this subsection have been satisfied by a resolution approved by an affirmative vote of the majority of the board members who do not have an interest governed by this subsection. (c) In addition to the other applicable requirements of this section, an association that proposes to contract for services that will cost more than $50,000 shall solicit bids or proposals using a bid process established by the association. Added by Acts 2013, 83rd Leg., R.S., Ch. 863 (H.B. 503 ), Sec. 2, eff. September 1, 2013. Amended by: Acts 2021, 87th Leg., R.S., Ch. 951 (S.B. 1588 ), Sec. 13, eff. September 1, 2021. Source: Section 209.0052 — Association Contracts , https://statutes.­capitol.­texas.­gov/Docs/PR/htm/PR.­209.­htm#209.­0052 (accessed May 26, 2025). 209.001 Short Title 209.002 Definitions 209.003 Applicability of Chapter 209.004 Management Certificates 209.005 Association Records 209.006 Notice Required Before Enforcement Action 209.007 Hearing Before Board 209.008 Attorney’s Fees 209.009 Foreclosure Sale Prohibited in Certain Circumstances 209.010 Notice After Foreclosure Sale 209.011 Right of Redemption After Foreclosure 209.012 Restrictive Covenants Granting Easements to Certain Property Owners’ Associations 209.013 Authority of Association to Amend Dedicatory Instrument 209.014 Mandatory Election Required After Failure to Call Regular Meeting 209.015 Regulation of Land Use: Residential Purpose 209.016 Regulation of Residential Leases or Rental Agreements 209.017 Justice Court Jurisdiction 209.0041 Adoption or Amendment of Certain Dedicatory Instruments 209.0042 Methods of Providing Notices to Owners 209.0051 Open Board Meetings 209.0052 Association Contracts 209.0055 Voting 209.0056 Notice of Election or Association Vote 209.0057 Recount of Votes 209.0058 Ballots 209.0059 Right to Vote 209.0061 Association Policy 209.0062 Alternative Payment Schedule for Certain Assessments 209.0063 Priority of Payments 209.0064 Third Party Collections 209.0065 Credit Reporting Services 209.0091 Prerequisites to Foreclosure: Notice and Opportunity to Cure for Certain Other Lienholders 209.0092 Judicial Foreclosure Required 209.0093 Removal or Adoption of Foreclosure Authority 209.0094 Assessment Lien Filing 209.00505 Architectural Review Authority 209.00591 Board Membership 209.00592 Voting 209.00593 Election of Board Members 209.00594 Tabulation of and Access to Ballots Up to date Verified: May 26, 2025 § 209.0052. Ass’n Contracts's source at texas​.gov Stay Connected Join thousands of people who receive monthly site updates. Subscribe Get Legal Help The State Bar of Texas runs a service for finding an attorney in good standing. Initial consultations are usually free or discounted: Lawyer Referral & Information Service (LRIS) Committed to Public Service We will always provide free access to the current law. In addition, we provide special support for non-profit, educational, and government users. Through social entre­pre­neurship, we’re lowering the cost of legal services and increasing citizen access. Navigate Find a Lawyer Blog About Us API Contact Us Reports Secondary Sources Privacy Policy California: Codes Colorado: C.R.S. Florida: Statutes Nevada: NRS New York: Laws Oregon: OAR , ORS Texas: Statutes World: Rome Statute , International Dictionary Location: https://texas.public.law/statutes/tex._prop._code_section_209.0052 Original Source: Section 209.0052 — Association Contracts , https://statutes.­capitol.­texas.­gov/Docs/PR/htm/PR.­209.­htm#209.­0052 (last ac­cessed May 10, 2025). Blank Outline Levels × The legislature occasionally skips outline levels. For example: (3) A person may apply [...] (4)(a) A person petitioning for relief [...] In this example, (3) , (4) , and (4)(a) are all outline levels, but (4) was omitted by its authors. It's only implied. This presents an interesting challenge when laying out the text. We've decided to display a blank section with this note, in order to aide readability. Trust but verify. Here is the original source for section 209.0052 Do you have an opinion about this solution? Drop us a line. Close