Tex. Prop. Code Ann. §§ 223.001–223.007 § 223.006
CERTAIN CHARGES PROHIBITED.
Operative Text
Sec. 223.006. CERTAIN CHARGES PROHIBITED. A managing entity may not charge a fee for or share in the proceeds of the transfer of an interest in the managing entity from an owner to a subsequent purchaser. Added by Acts 2025, 89th Leg., R.S., Ch. 1096 (H.B. 4211), Sec. 1, eff. June 20, 2025.
Texas Property Code § 223.006 prohibits a managing entity from collecting any fee—or taking a cut of the proceeds—when an ownership interest in that managing entity changes hands from one owner to a new buyer. The rule targets transfer-related charges that a managing entity might otherwise impose or benefit from during such a transaction. This provision took effect on June 20, 2025, as part of a broader set of regulations governing managing entities under §§ 223.001–223.007.
Plain English — not legal advice.
Under Tex. Prop. Code § 223.006, property owners and managers operating as or through a managing entity should ensure that no fee is assessed against, nor any share of proceeds collected from, the transfer of an ownership interest in the managing entity to a subsequent purchaser. Compliant operators review their fee schedules and transfer agreements to confirm that no such charge or revenue-sharing arrangement exists. Policies and contracts put in place before June 20, 2025, may need to be revisited for alignment with this provision.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Tex. Prop. Code § 223.006 establishes a protection relevant to the structure of managing entities that oversee rental housing—specifically barring those entities from profiting off ownership transfers within their own organization. While this provision primarily governs the business conduct of managing entities rather than day-to-day tenant-landlord interactions, tenants who believe a managing entity is violating this rule may wish to consult a tenant-rights organization or a licensed attorney familiar with Texas property law. Awareness of the full §§ 223.001–223.007 framework can help tenants understand the broader accountability standards that managing entities are required to meet.
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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