Tex. Prop. Code Ann. §§ 223.001–223.007 § 223.001
DEFINITIONS.
Operative Text
Sec. 223.001. DEFINITIONS. In this chapter:(1) "Business entity" means a partnership, corporation, joint venture, limited liability company, or other business organization or business association, however organized.(2) "Managing entity" means a business entity that owns residential property used in a residential arrangement.(3) "Residential arrangement" means an arrangement in which the purchaser of an interest in a business entity is entitled to exclusive possession of residential property owned by the entity as long as the purchaser holds the interest in the business entity.(4) "Residential property" means the real property and improvements for a single-family house, duplex, triplex, or quadruplex. Added by Acts 2025, 89th Leg., R.S., Ch. 1096 (H.B. 4211), Sec. 1, eff. June 20, 2025.
Texas Property Code §§ 223.001–223.007 establishes the foundational vocabulary for a chapter governing a specific type of residential ownership arrangement. Under this definitional section, a "residential arrangement" describes a setup where someone buys an interest in a business entity—such as an LLC or partnership—and in exchange receives the exclusive right to occupy a home, duplex, triplex, or quadruplex owned by that entity. These definitions set the scope for the rest of the chapter, clarifying which entities, properties, and arrangements fall under its rules.
Plain English — not legal advice.
Property owners and managers operating under the structure described in Tex. Prop. Code § 223.001—where a business entity holds title to residential property and sells interests that entitle purchasers to exclusive occupancy—should be aware that their arrangements fall within the scope of this chapter. A compliant managing entity generally ensures that its organizational structure, property types, and occupancy agreements align with the definitions provided, since those definitions determine whether the remaining provisions of §§ 223.001–223.007 apply. Operators of single-family homes, duplexes, triplexes, and quadruplexes structured this way would typically review the full chapter to understand their obligations.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
If you occupy a home, duplex, triplex, or quadruplex through an arrangement where you purchased an interest in a business entity rather than signing a traditional lease, the definitions in Tex. Prop. Code § 223.001 may be relevant to understanding your rights under this chapter. This section clarifies that such occupancy arrangements—where your right to live in the property is tied to your ownership stake in a business entity—are specifically covered by the broader framework of §§ 223.001–223.007. Tenants or occupants in these arrangements may wish to review the full chapter or consult a tenant-rights organization to understand how these definitions affect their protections.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 28, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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