Regular Session
Government Affairs & Regulatory Compliance Analysis
Effective immediately, HB4211 fundamentally alters the business model for "undivided interest" or entity-owned residential communities by prohibiting transfer restrictions and resale fees. Developers and "Managing Entities" that sell shares in an LLC (rather than deeds) to grant residential possession must immediately cease vetting resales and collecting transfer fees, or face Deceptive Trade Practices Act (DTPA) liability and injunctive halts on construction.
Rep. Candy Noble·House Bill·Regular Session
Civil Courts • Texas Attorney General (Consumer Protection Division) • Texas Commission on Environmental Quality (TCEQ) • Texas Secretary of State
This legislation has regulatory implications for the following Texas businesses and organizations:
Significant regulatory changes (effective 2025-06-20). Review with your legal and compliance teams to understand implications.
Affected business types:
Affected business types:
highSignificant operational investment may be required.
JD Key Consulting provides government affairs and regulatory strategy services. We help businesses navigate Texas agencies, understand legislative impacts, and advocate for their interests.
JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.
Key implementation requirements and action items for compliance with this legislation
Critical Amendments Required:
JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.
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This bill's path through the Texas Legislature
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Common questions about HB4211
Effective immediately, HB4211 fundamentally alters the business model for "undivided interest" or entity-owned residential communities by prohibiting transfer restrictions and resale fees. Developers and "Managing Entities" that sell shares in an LLC (rather than deeds) to grant residential possession must immediately cease vetting resales and collecting transfer fees, or face Deceptive Trade Practices Act (DTPA) liability and injunctive halts on construction.
HB4211 was authored by Texas Representative Candy Noble during the Regular Session.
HB4211 was signed into law by Governor Greg Abbott on June 20, 2025.
HB4211 is enforced by Civil Courts, Texas Attorney General (Consumer Protection Division), Texas Commission on Environmental Quality (TCEQ) and Texas Secretary of State.
The regulatory priority for HB4211 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of HB4211 is estimated as "high". This may vary based on industry and implementation requirements.
HB4211 addresses topics including business & commerce, business & commerce--trade practices, property interests, property interests--property owners association and property interests--real property.
Key dates for HB4211: Effective date is 2025-06-20. Consult with legal counsel regarding applicability.
HB4211 establishes the following penalties: civil penalty of Treble damages, court costs, and attorney's fees for Violation of Chapter 223 is classified as a Deceptive Trade Practice under Business & Commerce Code, Chapter 17 (DTPA).; injunctive penalty of Cessation of development/construction for Court finding of a violation allows for injunctions stopping development, construction, or MUD creation petitions.; administrative penalty of Denial of public funds/permits for Governmental entities are prohibited from granting public money, benefits, or permits to entities subject to an enforcement order.. Consult with legal counsel for specific applicability to your situation.
HB4211 primarily affects Texas businesses and commercial enterprises, property owners and real estate professionals. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.
JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.
