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A BILL TO BE ENTITLED
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AN ACT
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relating to a seller's disclosure of the location of certain real |
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property in a floodplain. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 5, Property Code, is |
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amended by adding Section 5.020 to read as follows: |
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Sec. 5.020. SELLER'S DISCLOSURE OF LOCATION OF CERTAIN REAL |
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PROPERTY IN FLOODPLAIN. (a) In this section: |
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(1) "100-year floodplain" means any area of land that: |
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(A) is identified on the flood insurance rate map |
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as a special flood hazard area, which is designated as Zone A, V, |
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A99, AE, AO, AH, VE, or AR on the map; |
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(B) has a one percent annual chance of flooding; |
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and |
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(C) may include a regulatory floodway, flood |
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pool, or reservoir. |
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(2) "Flood insurance rate map" means the most recent |
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flood hazard map published by the Federal Emergency Management |
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Agency under the National Flood Insurance Act of 1968 (42 U.S.C. |
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Section 4001 et seq.). |
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(b) A seller of a tract of real property that measures less |
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than 15 acres and that does not have a residence located or being |
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constructed on the property at the time of the sale shall provide to |
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the purchaser of the property a written notice disclosing whether |
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any part of the property is located in a 100-year floodplain. If |
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any part of the property is located in a 100-year floodplain, the |
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notice must include a copy of a current flood insurance rate map |
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that indicates the part of the property that is located in the |
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floodplain. |
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(c) The notice must be delivered by the seller on or before |
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the effective date of an executory contract binding the purchaser |
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to purchase the property. |
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(d) The purchaser is entitled to recover from the seller |
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damages caused by flooding on any part of the purchased real |
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property that is located in a 100-year floodplain if: |
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(1) the seller fails to provide the purchaser the |
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notice required by this section; and |
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(2) the flooding occurs before the fifth anniversary |
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of the date of the purchase. |
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SECTION 2. This Act takes effect September 1, 2021. |