Property Use Agreement

Sec. 2301.481. PROPERTY USE AGREEMENT. (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.