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A BILL TO BE ENTITLED
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AN ACT
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relating to a potential erosion notice to purchasers of real |
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property in a commercial or residential development in certain |
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counties. |
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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 5.0191 to read as follows: |
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Sec. 5.0191. POTENTIAL EROSION NOTICE IN CERTAIN COUNTIES. |
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(a) This section applies only to real property located in a county |
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that: |
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(1) has a population of 585,000 or more; and |
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(2) is adjacent to a county with a population of four |
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million or more. |
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(b) A seller of real property that is used or intended to be |
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used for residential or commercial purposes and that is wholly or |
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partly located within 500 feet of a river or an impoundment of water |
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authorized under Chapter 11, Water Code, shall give to the |
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purchaser of the property a written notice that reads substantially |
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similar to the following: |
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NOTICE OF POTENTIAL EROSION |
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The property at (street address and city) or described by |
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(legal description) is subject to potential erosion caused by a |
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river or impoundment of water that may: |
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(1) damage the property or a building or structure |
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constructed on the property; or |
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(2) affect an area of the property that is available |
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for development for residential or commercial use. |
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(c) The seller shall deliver the notice required under |
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Subsection (b) to the purchaser before the effective date of an |
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executory contract binding the purchaser to purchase the property. |
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(d) If an executory contract is entered into without the |
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seller providing the notice required by this section, the purchaser |
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may terminate the contract for any reason not later than the earlier |
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of: |
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(1) the seventh day after the date the purchaser |
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receives: |
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(A) the notice from the seller; or |
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(B) the information about the property described |
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by the notice from any other person; or |
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(2) the date the transfer occurs as provided by the |
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executory contract. |
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(e) After the date of the conveyance, the purchaser may |
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bring an action for misrepresentation against the seller if the |
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seller: |
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(1) failed to provide the notice before the date of the |
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conveyance; and |
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(2) had actual knowledge that all or a portion of the |
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property was: |
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(A) located wholly or partly within 500 feet of a |
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river or an impoundment of water authorized under Chapter 11, Water |
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Code; and |
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(B) subject to potential erosion caused by the |
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river or impoundment of water. |
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SECTION 2. Section 5.0191, Property Code, as added by this |
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Act, applies only to a contract for the sale of real property |
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entered into on or after the effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2021. |