Texas Codes

Tex. Prop. Code § 5.201 (2026)

Definitions

✓ current as of May 2026
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Sec. 5.201. DEFINITIONS. In this subchapter:

(1) "Encumbered property" means all property, including the property of a subsequent purchaser, subject to the same private transfer fee obligation.

(2) "Lender" means a lending institution, including a bank, trust company, banking association, savings and loan association, mortgage company, investment bank, credit union, life insurance company, and governmental agency, that customarily provides financing or an affiliate of a lending institution.

(3) "Payee" means a person who claims the right to receive or collect a private transfer fee payable under a private transfer fee obligation and who may or may not have a pecuniary interest in the obligation.

(4) "Private transfer fee" means an amount of money, regardless of the method of determining the amount, that is payable on the transfer of an interest in real property or payable for a right to make or accept a transfer.

(5) "Private transfer fee obligation" means an obligation to pay a private transfer fee created under:

(A) a declaration or other covenant recorded in the real property records in the county in which the property subject to the private transfer fee obligation is located;

(B) a contractual agreement or promise; or

(C) an unrecorded contractual agreement or promise.

(6) "Subsequent owner" means a person who acquires real property by transfer from a person other than the person who is the seller of the property on the date the private transfer fee obligation is created.

(7) "Subsequent purchaser" means a person who purchases real property from a person other than the person who is the seller on the date the private transfer fee obligation is created. The term includes a lender who provides a mortgage loan to a subsequent purchaser to purchase the property.

(8) "Transfer" means the sale, gift, conveyance, assignment, inheritance, or other transfer of an ownership interest in real property.

Added by Acts 2011, 82nd Leg., R.S., Ch. 211 (H.B. 8), Sec. 1, eff. June 17, 2011.

Notes of Decisions
Cited in 9 cases (7 in the last 5 years), 2018–2026 · leading case: Gardens of Connemara Ltd. & Emerson Farm Co., Ltd. v. Longhorn Creek Ltd. (Tex. 2026).
Gardens of Connemara Ltd. & Emerson Farm Co., Ltd. v. Longhorn Creek Ltd. (Tex. 2026). · cites it 2× “Laws 780 , 780 (codified at Tex. Prop. Code §§ 5.201–.207). Through the new statute, Texas law now “in large part prohibit[s] the use of private transfer fees associated with real property transactions.”
Untitled Texas Attorney Gen. Opinion (Tex. Att'y Gen. 2018). “" TEX. PROP. CODE§ 5.201(4). It also defined "private transfer fee obligation" as: an obligation to pay a private transfer fee created under: (A) a declaration or other covenant recorded in the real property records in the county in which the property subject to the private…”
Covenant Clearinghouse, LLC v. Kush & Krishna, LLC (Tex. App. 2020). “” Tex. Prop. Code § 5.201(4). A “private transfer fee obligation” can be created by any number of instruments, including as here a declaration requiring payment of a private transfer fee that is recorded in the real property records in the county in which the property is located.”
Longhorn Creek Ltd. v. Gardens of Connemara Ltd. & Emerson Farm Co., Ltd. (Tex. App. 2024). “” TEX. PROP. CODE § 5.201(4). “Private transfer fee obligation” means an obligation to pay a private transfer fee created under “(A) a declaration or other covenant recorded in the real property records in the county in which the property subject to the private transfer fee…”
Covenant Clearinghouse, LLC, in Its Capacity as Successor Tr. Under That Declaration of Covenant Executed by I-45 Thirty JV & Recorded Under Document No. 20090418137 in the Off. Prop. Records of Harris Cnty., Texas v. Kush & Krishna LLC (Tex. App. 2024). “” Tex. Prop. Code § 5.201(4). A “private transfer fee obligation” can be created by any number of instruments, including as here a declaration requiring payment of a private transfer fee that is recorded in the real property records in the county in which the property is located.”
Covenant Clearinghouse, LLC v. Trinity Falls Holdings, L.P. (E.D. Tex. 2023). “at 3610-11 (citing TEX. PROP. CODE § 5.201(5) (defining “private transfer fee obligation”)).”
Covenant Clearinghouse, LLC v. Trinity Falls Holdings, L.P. (E.D. Tex. 2023). “at 3610-11 (citing TEX. PROP. CODE § 5.201(5) (defining “private transfer fee obligation”)).”
Denise Gray, Rowdy Wickline, David Agrue, Jeremy Purgason, Ashley Purgason, Barbara Coburn, Robert Bell, Kenneth Hooper, & Gavin Frazier v. River Run Prop. Owners' Ass'n, Inc. (Tex. App. 2025). “2d at 261–62; (2) Appellants offered no independent evidence showing when the deeds were delivered; and (3) all of the deeds were filed after the filing of the Declaration, 9 the record supports a finding that the deeds were not delivered—and thus the lots were not…”
Darrell Wayne Henry v. Senter Lee Henry, III, as Dependent Adm'r of the Est. of Mozelle Henry (Tex. App. 2025). “Tex. Prop. Code Ann. § 5.201 . “Two elements must be established to prove delivery of a deed: (1) the deed must be delivered into the control of the grantee, and (2) the grantor must intend the deed to become operative as a conveyance.”
— Tex. Prop. Code § 5.201(4) — 5 cases
Untitled Texas Attorney Gen. Opinion (Tex. Att'y Gen. 2018). “" TEX. PROP. CODE§ 5.201(4). It also defined "private transfer fee obligation" as: an obligation to pay a private transfer fee created under: (A) a declaration or other covenant recorded in the real property records in the county in which the property subject to the private…”
Covenant Clearinghouse, LLC v. Kush & Krishna, LLC (Tex. App. 2020). “” Tex. Prop. Code § 5.201(4). A “private transfer fee obligation” can be created by any number of instruments, including as here a declaration requiring payment of a private transfer fee that is recorded in the real property records in the county in which the property is located.”
Longhorn Creek Ltd. v. Gardens of Connemara Ltd. & Emerson Farm Co., Ltd. (Tex. App. 2024). “” TEX. PROP. CODE § 5.201(4). “Private transfer fee obligation” means an obligation to pay a private transfer fee created under “(A) a declaration or other covenant recorded in the real property records in the county in which the property subject to the private transfer fee…”
Covenant Clearinghouse, LLC, in Its Capacity as Successor Tr. Under That Declaration of Covenant Executed by I-45 Thirty JV & Recorded Under Document No. 20090418137 in the Off. Prop. Records of Harris Cnty., Texas v. Kush & Krishna LLC (Tex. App. 2024). “” Tex. Prop. Code § 5.201(4). A “private transfer fee obligation” can be created by any number of instruments, including as here a declaration requiring payment of a private transfer fee that is recorded in the real property records in the county in which the property is located.”
Gardens of Connemara Ltd. & Emerson Farm Co., Ltd. v. Longhorn Creek Ltd. (Tex. 2026). “Laws 780 , 780 (codified at Tex. Prop. Code §§ 5.201–.207). Through the new statute, Texas law now “in large part prohibit[s] the use of private transfer fees associated with real property transactions.”
— Tex. Prop. Code § 5.201(5) — 2 cases
Covenant Clearinghouse, LLC v. Trinity Falls Holdings, L.P. (E.D. Tex. 2023). “at 3610-11 (citing TEX. PROP. CODE § 5.201(5) (defining “private transfer fee obligation”)).”
Covenant Clearinghouse, LLC v. Trinity Falls Holdings, L.P. (E.D. Tex. 2023). “at 3610-11 (citing TEX. PROP. CODE § 5.201(5) (defining “private transfer fee obligation”)).”
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