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Texas · Through 89th 2nd Called Legislative Session, 2025

Tex. Occupations Code § 2301.481: PROPERTY USE AGREEMENT.

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Where this section sits in the code
  1. OCCUPATIONS CODE
  2. TITLE 14. REGULATION OF MOTOR VEHICLES AND TRANSPORTATION
  3. SUBTITLE A. REGULATIONS RELATED TO MOTOR VEHICLES
  4. CHAPTER 2301. SALE OR LEASE OF MOTOR VEHICLES
  5. SUBCHAPTER J. MANUFACTURERS, DISTRIBUTORS, AND REPRESENTATIVES

(a) A manufacturer, distributor, or representative may not require that a dealer enter into a property use agreement as a condition of the manufacturer, distributor, or representative:

(1) entering into a franchise;

(2) approving a franchised dealer's application to add a line-make;

(3) approving a franchised dealer's application to relocate a franchise; or

(4) approving a sale or transfer of a dealer, dealership, or franchise.

(b) The following provisions in a property use agreement are void and unenforceable:

(1) a limitation on the franchised dealer's ability to add a line-make; or

(2) a provision that binds a franchised dealer's successor.

(c) A property use agreement expires on the earlier of:

(1) the date provided by the property use agreement; or

(2) the termination of the franchise between the parties to the property use agreement.

(d) This section applies to a subsidiary of, or a person controlled by, a manufacturer, distributor, or representative.

Added by Acts 2011, 82nd Leg., R.S., Ch. 137 (S.B. 529), Sec. 11, eff. September 1, 2011.

Collected 2026-08-27T01:47:31Z. Source file · JSON

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