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.