Tex. Prop. Code Ann. §§ 223.001–223.007 § 223.005
TRANSFER OF INTEREST.
Operative Text
Sec. 223.005. TRANSFER OF INTEREST. Notwithstanding any provision in an agreement between the owner and a managing entity, an owner of an interest in a managing entity may transfer the interest without approval from the managing entity. Added by Acts 2025, 89th Leg., R.S., Ch. 1096 (H.B. 4211), Sec. 1, eff. June 20, 2025.
Under Texas Property Code § 223.005, an owner who holds an interest in a managing entity—such as a property management company—retains the right to transfer that ownership interest freely, even if a contract between the owner and the managing entity would otherwise require the managing entity's consent or approval. This provision overrides any conflicting contractual language that might restrict such a transfer. The rule took effect on June 20, 2025, as part of a broader set of provisions governing managing entities.
Plain English — not legal advice.
Property owners operating under § 223.005 should be aware that any clause in a management agreement purporting to require the managing entity's sign-off before an ownership interest can be transferred is unenforceable under Texas law. Compliant operators generally review their management agreements with this statutory override in mind, particularly when structuring ownership changes, sales, or reorganizations involving a managing entity. Keeping documentation of any ownership transfers is a standard practice that supports transparency and clear recordkeeping.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
While § 223.005 primarily governs the relationship between property owners and managing entities rather than tenants directly, tenants may find it relevant when ownership of a management company changes hands without notice. Understanding that such transfers are legally permitted under Texas Property Code § 223.005—regardless of what a management contract says—can help tenants contextualize changes in who manages their building. Tenants who have questions about how a change in managing entity ownership affects their lease or rights may wish to consult a tenant-rights organization or legal aid resource familiar with Texas property law.
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.
Effective Timeline
References Out
No outbound references recorded yet for this provision.
References In
No inbound references recorded yet for this provision.