By Brimer H.B. No. 1081
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to a seller's duty to disclose the condition of real
1-3 property to a purchaser.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter A, Chapter 5, Property Code, is
1-6 amended by adding Section 5.008 to read as follows:
1-7 Sec. 5.008. SELLER'S DISCLOSURE OF PROPERTY CONDITION.
1-8 (a) A seller of residential real property comprising not more than
1-9 one dwelling unit located in this state shall give to the purchaser
1-10 of the property a written notice as prescribed by this section or a
1-11 written notice substantially similar to the notice prescribed by
1-12 this section which contains, at a minimum, all of the items in the
1-13 notice prescribed by this section.
1-14 (b) The notice must be executed and must, at a minimum, read
1-15 substantially similar to the following:
1-16 SELLER'S DISCLOSURE NOTICE
1-17 CONCERNING THE PROPERTY AT
1-18 (Street Address and City)
1-19 THIS NOTICE IS A DISCLOSURE OF SELLER'S KNOWLEDGE OF
1-20 THE CONDITION OF THE PROPERTY AS OF THE DATE SIGNED BY
1-21 SELLER AND IS NOT A SUBSTITUTE FOR ANY INSPECTIONS OR
1-22 WARRANTIES THE PURCHASER MAY WISH TO OBTAIN. IT IS NOT
1-23 A WARRANTY OF ANY KIND BY SELLER OR SELLER'S AGENTS.
2-1 Seller _____ is _____ is not occupying the Property.
2-2 If unoccupied, how long since Seller has occupied the Property?
2-3 ______________________
2-4 1. The Property has the items checked below:
2-5 Write Yes (Y), No (N), or Unknown (U).
2-6 ____ Range ____ Oven ____ Microwave
2-7 ____ Dishwasher ____ Trash Compactor ____ Disposal
2-8 ____ Washer/Dryer ____ Window Screens ____ Rain Gutters
2-9 Hookups
2-10 ____ Security System ____ Fire Detection ____ Intercom
2-11 Equipment System
2-12 ____ TV Antenna ____ Cable TV Wiring ____ Satellite
2-13 Dish
2-14 ____ Ceiling Fan(s) ____ Attic Fan(s) ____ Exhaust
2-15 Fan(s)
2-16 ____ Central A/C ____ Central Heating ____ Wall/Window Air
2-17 Conditioning
2-18 ____ Plumbing System ____ Septic System ____ Public Sewer
2-19 System
2-20 ____ Patio/Decking ____ Outdoor Grill ____ Fences
2-21 ____ Pool ____ Sauna ____ Spa ___ Hot Tub
2-22 ____ Pool Equipment ____ Pool Heater ____ Automatic Lawn
2-23 Sprinkler
2-24 System
2-25 ____ Fireplace(s) & Chimney ____ Fireplace(s) &
3-1 (Woodburning) Chimney (Mock)
3-2 ____ Gas Lines (Nat./LP) ____ Gas Fixtures
3-3 Garage: ___ Attached ____ Not Attached ____ Carport
3-4 Garage Door Opener(s): ____ Electronic ____ Control(s)
3-5 Water Heater: ____ Gas ____ Electric
3-6 Water Supply: ___ City ____ Well ____ MUD ____ Co-op
3-7 Roof Type: _____________________ Age: _______________(approx)
3-8 Are you (Seller) aware of any of the above items that are not in
3-9 working condition, that have known defects, or that are in need of
3-10 repair? _____ Yes _____ No _____ Unknown.
3-11 If yes, then describe. (Attach additional sheets if necessary):
3-12 ___________________________________________________________________
3-13 ___________________________________________________________________
3-14 ___________________________________________________________________
3-15 ___________________________________________________________________
3-16 2. Are you (Seller) aware of any known defects/malfunctions in any
3-17 of the following?
3-18 Write Yes (Y), No (N), or Unknown (U).
3-19 ____ Interior Walls ____ Ceilings ____ Floors
3-20 ____ Exterior Walls ____ Doors ____ Windows
3-21 ____ Roof ____ Foundation/ ____ Basement
3-22 Slab(s)
3-23 ____ Walls/Fences ____ Driveways ____ Sidewalks
3-24 ____ Plumbing/Sewers/ ____ Electrical ____ Lighting
3-25 Septics Systems Fixtures
4-1 ____ Other Structural Components (Describe): _____________________
4-2 ___________________________________________________________________
4-3 ___________________________________________________________________
4-4 If the answer to any of the above is yes, explain. (Attach
4-5 additional sheets if necessary): _________________________________
4-6 ___________________________________________________________________
4-7 ___________________________________________________________________
4-8 3. Are you (Seller) aware of any of the following conditions?
4-9 Write Yes (Y), No (N), or Unknown (U).
4-10 ____ Active Termites ____ Previous Structural
4-11 (includes wood-destroying or Roof Repair
4-12 insects)
4-13 ____ Termite or Wood Rot Damage ____ Hazardous or Toxic
4-14 Needing Repair Waste
4-15 ____ Previous Termite Damage ____ Asbestos Components
4-16 ____ Previous Termite Treatment ____ Urea formaldehyde
4-17 Insulation
4-18 ____ Previous Flooding ____ Radon Gas
4-19 ____ Improper Drainage ____ Lead Based Paint
4-20 ____ Water Penetration ____ Aluminum Wiring
4-21 ____ Located in 100-Year ____ Previous Fires
4-22 Floodplain
4-23 ____ Present Flood Insurance ____ Unplatted Easements
4-24 Coverage
4-25 ____ Landfill, Settling, Soil ____ Subsurface
5-1 Movement, Fault Lines Structure or Pits
5-2 If the answer to any of the above is yes, explain. (Attach
5-3 additional sheets if necessary): _________________________________
5-4 ___________________________________________________________________
5-5 ___________________________________________________________________
5-6 ___________________________________________________________________
5-7 4. Are you (Seller) aware of any item, equipment, or system in
5-8 or on the property that is in need of repair? _________ Yes
5-9 ________ No _________ Unknown. If yes, explain (attach additional
5-10 sheets if necessary). ____________________________________________
5-11 ___________________________________________________________________
5-12 ___________________________________________________________________
5-13 ___________________________________________________________________
5-14 5. Are you (Seller) aware of any of the following?
5-15 Write Yes (Y), No (N), or Unknown (U).
5-16 ____ Room additions, structural modifications, or other
5-17 alterations or repairs made without necessary permits or not
5-18 in compliance with building codes in effect at that time.
5-19 ____ Homeowners' Association or maintenance fees or assessments.
5-20 ____ Any "common area" (facilities such as pools, tennis courts,
5-21 walkways, or other areas) co-owned in undivided interest with
5-22 others.
5-23 ____ Any notices of violations of deed restrictions or
5-24 governmental ordinances affecting the condition or use of the
5-25 Property.
6-1 ____ Any lawsuits directly or indirectly affecting the Property.
6-2 ____ Any condition on the Property which materially affects the
6-3 physical health or safety of an individual.
6-4 ____ Any murder, sexual assault (rape), or other serious assault
6-5 that occurred on the Property in the last twelve (12) months.
6-6 If the answer to any of the above is yes, explain. (Attach
6-7 additional sheets if necessary): _________________________
6-8 ___________________________________________________________________
6-9 ___________________________________________________________________
6-10 ___________________________________________________________________
6-11 ___________________________ _____________________________
6-12 Date Signature of Seller
6-13 The undersigned purchaser hereby acknowledges receipt of the
6-14 foregoing notice.
6-15 ___________________________ _____________________________
6-16 Date Signature of Purchaser
6-17 NOTICE: Section 5.008 of the Texas Property Code provides that
6-18 this notice shall be delivered to the purchaser before the
6-19 effective date of a contract binding the purchaser to purchase the
6-20 property. In the event a contract is entered into without this
6-21 notice being provided, the purchaser may terminate the contract
6-22 prior to closing. If the notice is furnished to the purchaser at
6-23 or prior to closing and the purchaser does not elect to terminate
6-24 the contract within 48 hours after receipt of this notice or if the
6-25 purchaser elects to close within 48 hours after receipt of this
7-1 notice, the purchaser will waive all rights to terminate the
7-2 contract for failing to timely receive this notice. In any event,
7-3 a purchaser is not entitled to rescind the purchase of the property
7-4 after closing for failing to receive this notice.
7-5 (c) A seller or seller's agent shall have no duty to make a
7-6 disclosure or release information related to whether a death by
7-7 natural causes, suicide, or accident unrelated to the condition of
7-8 the property occurred on the property or whether a previous
7-9 occupant had, may have had, has, or may have AIDS, HIV related
7-10 illnesses, or HIV infection.
7-11 (d) The notice shall be completed to the best of seller's
7-12 belief and knowledge as of the date the notice is completed and
7-13 signed by the seller. If the information required by the notice is
7-14 unknown to the seller, the seller shall indicate that fact on the
7-15 notice, and by that act is in compliance with this section.
7-16 (e) This section does not apply to a transfer:
7-17 (1) pursuant to a court order or foreclosure sale;
7-18 (2) by a trustee in bankruptcy;
7-19 (3) to a mortgage by a mortgagor or successor in
7-20 interest, or to a beneficiary of a deed of trust by a trustor or
7-21 successor in interest;
7-22 (4) by a mortgagee or a beneficiary under a deed of
7-23 trust who has acquired the real property at a sale conducted
7-24 pursuant to a power of sale under a deed of trust or a sale
7-25 pursuant to a court ordered foreclosure or has acquired the real
8-1 property by a deed in lieu of foreclosure;
8-2 (5) by a fiduciary in the course of the administration
8-3 of a decedent's estate, guardianship, conservatorship, or trust;
8-4 (6) from one co-owner to one or more other co-owners;
8-5 (7) made to a spouse or to a person or persons in the
8-6 lineal line of consanguinity of one or more of the transferors;
8-7 (8) between spouses resulting from a decree of
8-8 dissolution of marriage or a decree of legal separation or from a
8-9 property settlement agreement incidental to such a decree;
8-10 (9) to or from any governmental entity; or
8-11 (10) transfers of new residences of not less than one
8-12 or more than four dwelling units which have not previously been
8-13 occupied for residential purposes.
8-14 (f) The notice shall be delivered by the seller to the
8-15 purchaser on or before the effective date of an executory contract
8-16 binding the purchaser to purchase the property. If a contract of
8-17 purchase and sale is entered into without the seller providing the
8-18 notice required by this section, the purchaser is entitled to
8-19 terminate the contract prior to the closing of the contract. If,
8-20 however, the seller furnishes the notice required by this section
8-21 at or before closing the purchase and sale contract and the
8-22 purchaser does not elect to terminate the contract within 48 hours
8-23 after receipt of the notice or if the purchaser elects to close the
8-24 purchase and sale contract within 48 hours after receipt of the
8-25 notice, the purchaser waives all rights to terminate the contract
9-1 for failing to timely receive the notice required by this section.
9-2 Notwithstanding any other provision of this subchapter, a purchaser
9-3 is not entitled to rescind the sale or purchase of a property after
9-4 closing the purchase and sale contract for failing to receive or
9-5 failing to timely receive the notice required by this section.
9-6 (g) A seller who provides the information required by this
9-7 section is not liable for any error, inaccuracy, or omission unless
9-8 the seller knew of same and such misinformation was intended to
9-9 induce the purchaser into a transaction into which the purchaser
9-10 would not have entered had the information been correct. An agent
9-11 for the seller shall not be liable for any error, inaccuracy, or
9-12 omission of any information provided by the seller under this
9-13 section unless the agent had personal knowledge of the error,
9-14 inaccuracy, or omission and such misinformation was intended to
9-15 induce the purchaser into a transaction into which the purchaser
9-16 would not have entered had the information been correct.
9-17 SECTION 2. This Act takes effect January 1, 1994.
9-18 SECTION 3. The importance of this legislation and the
9-19 crowded condition of the calendars in both houses create an
9-20 emergency and an imperative public necessity that the
9-21 constitutional rule requiring bills to be read on three several
9-22 days in each house be suspended, and this rule is hereby suspended.