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