By Solis H.B. No. 471
74R1711 PAM-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to requiring a seller of real property to provide the
1-3 purchaser a notice disclosing the condition of the property.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 5.008, Property Code, as added by Chapter
1-6 356, Acts of the 73rd Legislature, Regular Session, 1993, is
1-7 amended to read as follows:
1-8 Sec. 5.008. Seller's Disclosure of Property Condition.
1-9 (a) A seller of <residential> real property <comprising not more
1-10 than one dwelling unit> located in this state shall give to the
1-11 purchaser of the property a written notice as prescribed by this
1-12 section or a written notice substantially similar to the notice
1-13 prescribed by this section which contains, at a minimum, all of the
1-14 items in the notice prescribed by this section.
1-15 (b) The notice given by a seller of residential real
1-16 property comprising not more than one dwelling unit must be
1-17 executed and <must>, at a minimum, read substantially similar to
1-18 the following:
1-19 SELLER'S DISCLOSURE NOTICE
1-20 CONCERNING THE PROPERTY AT ________________________________________
1-21 (Street Address and City)
1-22 THIS NOTICE IS A DISCLOSURE OF SELLER'S KNOWLEDGE OF THE CONDITION
1-23 OF THE PROPERTY AS OF THE DATE SIGNED BY SELLER AND IS NOT A
1-24 SUBSTITUTE FOR ANY INSPECTIONS OR WARRANTIES THE PURCHASER MAY WISH
2-1 TO OBTAIN. IT IS NOT A WARRANTY OF ANY KIND BY SELLER OR SELLER'S
2-2 AGENTS.
2-3 Seller ____________ is _____________ is not occupying the Property.
2-4 If unoccupied, how long since Seller has occupied the Property? ___
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
2-26 ____ Fireplace(s) & ____ Fireplace(s) &
2-27 Chimney ____ Chimney (Mock)
3-1 (Woodburning)
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 2. Are you (Seller) aware of any known defects/malfunctions in any
3-15 of the following?
3-16 Write Yes (Y) if you are aware, write No (N) if you are not aware.
3-17 _____ Interior Walls _____ Ceilings _____ Floors
3-18 _____ Exterior Walls _____ Doors _____ Windows
3-19 _____ Roof _____ Foundation/ _____ Basement
3-20 Slab(s)
3-21 _____ Walls/Fences _____ Driveways _____ Sidewalks
3-22 _____ Plumbing/Sewers/ _____ Electrical _____ Lighting
3-23 Septics Systems Fixtures
3-24 _____ Other Structural Components (Describe): ___________________
3-25 ___________________________________________________________________
3-26 ___________________________________________________________________
3-27 If the answer to any of the above is yes, explain. (Attach
4-1 additional sheets if necessary): __________________________________
4-2 ___________________________________________________________________
4-3 ___________________________________________________________________
4-4 3. Are you (Seller) aware of any of the following conditions?
4-5 Write Yes (Y) if you are aware, write No (N) if you are not aware.
4-6 _____ Active Termites _____ Previous Structural
4-7 (includes wood-destroying or Roof Repair
4-8 insects)
4-9 _____ Termite or Wood Rot Damage _____ Hazardous or Toxic
4-10 Needing Repair Waste
4-11 _____ Previous Termite Damage _____ Asbestos Components
4-12 _____ Previous Termite Treatment _____ Urea formaldehyde
4-13 Insulation
4-14 _____ Previous Flooding _____ Radon Gas
4-15 _____ Improper Drainage _____ Lead Based Paint
4-16 _____ Water Penetration _____ Aluminum Wiring
4-17 _____ Located in 100-Year _____ Previous Fires
4-18 Floodplain
4-19 _____ Present Flood Insurance _____ Unplatted Easements
4-20 Coverage
4-21 _____ Landfill, Settling, Soil _____ Subsurface
4-22 Movement, Fault Lines Structure or Pits
4-23 If the answer to any of the above is yes, explain. (Attach
4-24 additional sheets if necessary): _________________________________
4-25 __________________________________________________________________
4-26 4. Are you (Seller) aware of any item, equipment, or system in or
4-27 on the property that is in need of repair? _____ Yes (if you are
5-1 aware) _____ No (if you are not aware). If yes, explain (attach
5-2 additional sheets as necessary). _________________________________
5-3 5. Are you (Seller) aware of any of the following?
5-4 Write Yes (Y) if you are aware, write No (N) if you are not aware.
5-5 _____ Room additions, structural modifications, or other
5-6 alterations or repairs made without necessary permits or
5-7 not in compliance with building codes in effect at that
5-8 time.
5-9 _____ Homeowners' Association or maintenance fees or assessments.
5-10 _____ Any "common area" (facilities such as pools, tennis courts,
5-11 walkways, or other areas) co-owned in undivided interest
5-12 with others.
5-13 _____ Any notices of violations of deed restrictions or
5-14 governmental ordinances affecting the condition or use of
5-15 the Property.
5-16 _____ Any lawsuits directly or indirectly affecting the Property.
5-17 _____ Any condition on the Property which materially affects the
5-18 physical health or safety of an individual.
5-19 If the answer to any of the above is yes, explain. (Attach
5-20 additional sheets if necessary): _________________________________
5-21 __________________________________________________________________
5-22 __________________________________________________________________
5-23 ________________________________ ____________________________
5-24 Date Signature of Seller
5-25 The undersigned purchaser hereby acknowledges receipt of the
5-26 foregoing notice.
5-27 ________________________________ ____________________________
6-1 Date Signature of Purchaser
6-2 (c) The notice given by a seller of real property that is
6-3 not covered by Subsection (b) must be executed and, at a minimum,
6-4 read substantially similar to the following:
6-5 SELLER'S DISCLOSURE NOTICE
6-6 CONCERNING THE PROPERTY AT (street address or legal description and
6-7 city)
6-8 THIS NOTICE IS A DISCLOSURE OF SELLER'S KNOWLEDGE OF THE CONDITION
6-9 OF THE PROPERTY AS OF THE DATE SIGNED BY SELLER AND IS NOT A
6-10 SUBSTITUTE FOR ANY INSPECTIONS OR WARRANTIES THE PURCHASER MAY WISH
6-11 TO OBTAIN. IT IS NOT A WARRANTY OF ANY KIND BY SELLER OR SELLER'S
6-12 AGENTS.
6-13 1. Seller: (name)
6-14 (address)
6-15 (work and home telephone numbers)
6-16 2. Purchaser: (name)
6-17 (address)
6-18 (work and home telephone numbers)
6-19 3. Subdivision Plat Information
6-20 (A) The plat was approved by commissioners court on (date)
6-21 (B) Engineer: (name and address)
6-22 (C) Water service available to land by (date)
6-23 (D) Wastewater service available to land by (date)
6-24 (E) Drainage information:
6-25 Sea level elevation: (elevation level)
6-26 Floodplain classification: (classification)
6-27 (F) Roads:
7-1 Subdivision roads are: private ___ county ___
7-2 Access roads are: private ___ county ___
7-3 4. Purchaser understands that as of the time of executing this
7-4 notice:
7-5 (A) the subdivision roads will _____ will not _____ be
7-6 maintained by the county; and
7-7 (B) the access road, (name), to this land will _______ will
7-8 not _______ be maintained by the county.
7-9 _____________________ __________________________
7-10 Date Signature of Seller
7-11 The undersigned purchaser hereby acknowledges receipt of the
7-12 foregoing notice.
7-13 _____________________ __________________________
7-14 Date Signature of Purchaser
7-15 (d) A seller or seller's agent shall have no duty to make a
7-16 disclosure or release information related to whether a death by
7-17 natural causes, suicide, or accident unrelated to the condition of
7-18 the property occurred on the property or whether a previous
7-19 occupant had, may have had, has, or may have AIDS, HIV related
7-20 illnesses, or HIV infection.
7-21 (e) <(d)> The notice required by this section shall be
7-22 completed to the best of seller's belief and knowledge as of the
7-23 date the notice is completed and signed by the seller. If the
7-24 information required by the notice is unknown to the seller, the
7-25 seller shall indicate that fact on the notice, and by that act is
7-26 in compliance with this section.
7-27 (f) <(e)> This section does not apply to a transfer:
8-1 (1) pursuant to a court order or foreclosure sale;
8-2 (2) by a trustee in bankruptcy;
8-3 (3) to a mortgage by a mortgagor or successor in
8-4 interest, or to a beneficiary of a deed of trust by a trustor or
8-5 successor in interest;
8-6 (4) by a mortgagee or a beneficiary under a deed of
8-7 trust who has acquired the real property at a sale conducted
8-8 pursuant to a power of sale under a deed of trust or a sale
8-9 pursuant to a court ordered foreclosure or has acquired the real
8-10 property by a deed in lieu of foreclosure;
8-11 (5) by a fiduciary in the course of the administration
8-12 of a decedent's estate, guardianship, conservatorship, or trust;
8-13 (6) from one co-owner to one or more other co-owners;
8-14 (7) made to a spouse or to a person or persons in the
8-15 lineal line of consanguinity of one or more of the transferors;
8-16 (8) between spouses resulting from a decree of
8-17 dissolution of marriage or a decree of legal separation or from a
8-18 property settlement agreement incidental to such a decree;
8-19 (9) to or from any governmental entity;
8-20 (10) transfers of new residences of not more than one
8-21 dwelling unit which have not previously been occupied for
8-22 residential purposes; or
8-23 (11) transfers of real property where the value of any
8-24 dwelling does not exceed five percent (5%) of the value of the
8-25 property.
8-26 (g) <(f)> The notice required by this section shall be
8-27 delivered by the seller to the purchaser on or before the effective
9-1 date of an executory contract binding the purchaser to purchase the
9-2 property. If a contract is entered without the seller providing
9-3 the notice <required by this section>, the purchaser may terminate
9-4 the contract for any reason within seven days after receiving the
9-5 notice.
9-6 (h) If negotiations that precede the execution of an
9-7 executory contract binding the purchaser are conducted primarily in
9-8 Spanish, the seller shall provide a copy in Spanish of all written
9-9 documents required by this section.
9-10 SECTION 2. The change in law made by this Act applies only
9-11 to a sale of real property that occurs on or after the effective
9-12 date of this Act. A sale that occurs before the effective date of
9-13 this Act is covered by the law in effect when the sale occurred,
9-14 and the former law is continued in effect for that purpose.
9-15 SECTION 3. The importance of this legislation and the
9-16 crowded condition of the calendars in both houses create an
9-17 emergency and an imperative public necessity that the
9-18 constitutional rule requiring bills to be read on three several
9-19 days in each house be suspended, and this rule is hereby suspended.