By Pitts H.B. No. 946
74R1212 SMH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the disclosure at the sale of real property of
1-3 information concerning the imposition of ad valorem taxes on the
1-4 property.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subchapter A, Chapter 5, Property Code, is
1-7 amended by adding Section 5.010 to read as follows:
1-8 Sec. 5.010. OWNER'S DISCLOSURE OF PROPERTY TAX INFORMATION.
1-9 (a) A person who is the owner of a fee simple interest in real
1-10 property and who contracts for the sale of that interest shall give
1-11 to each party who is a purchaser a written notice that is signed by
1-12 the owner and that is substantially in the following form:
1-13 OWNER'S DISCLOSURE OF TAX INFORMATION
1-14 1. Property description:____________________________________
1-15 ___________________________________________________________________
1-16 ___________________________________________________________________
1-17 2. Did the property, for the tax year ending on the last
1-18 preceding December 31, receive a total or partial exemption from ad
1-19 valorem taxation? Yes No. If yes, explain. (Attach
1-20 additional sheets if necessary.)___________________________________
1-21 ___________________________________________________________________
1-22 ___________________________________________________________________
1-23 ___________________________________________________________________
1-24 3. Was the property, for the tax year ending on the last
2-1 preceding December 31, appraised as agricultural or open-space
2-2 land, timberland, recreational, park, or scenic-use land, or public
2-3 access airport property so that an additional tax may be imposed as
2-4 a penalty if the property no longer qualifies to be appraised in
2-5 that manner? Yes No. If yes, explain. (Attach additional
2-6 sheets if necessary.)______________________________________________
2-7 ___________________________________________________________________
2-8 ___________________________________________________________________
2-9 ___________________________________________________________________
2-10 ________________________ _________________________
2-11 Date Signature of Owner
2-12 The undersigned purchaser acknowledges receipt of this notice.
2-13 ________________________ _________________________
2-14 Date Signature of Purchaser
2-15 (b) This section does not apply to a contract for a
2-16 transfer:
2-17 (1) under a court order or foreclosure sale;
2-18 (2) by a trustee in bankruptcy;
2-19 (3) to a mortgagee by a mortgagor or successor in
2-20 interest or to a beneficiary of a deed of trust by a trustor or
2-21 successor in interest;
2-22 (4) by a mortgagee or a beneficiary under a deed of
2-23 trust who has acquired the property at a sale conducted under a
2-24 power of sale under a deed of trust or a sale under a court-ordered
2-25 foreclosure or has acquired the property by a deed in lieu of
2-26 foreclosure;
2-27 (5) by a fiduciary in the course of the administration
3-1 of a decedent's estate, guardianship, conservatorship, or trust; or
3-2 (6) to or from a governmental entity.
3-3 (c) The notice described by Subsection (a) is not required
3-4 to be given to:
3-5 (1) a person who is a co-owner with an owner described
3-6 by Subsection (a) of an undivided interest in the property; or
3-7 (2) a spouse or a person in the lineal line of
3-8 consanguinity of an owner described by Subsection (a).
3-9 (d) The owner shall deliver the notice to the purchaser on
3-10 or before the effective date of the contract binding the purchaser
3-11 to purchase the property. If the owner fails to provide the notice
3-12 on or before the effective date of the contract, the purchaser may
3-13 terminate the contract for any reason before closing.
3-14 SECTION 2. This Act takes effect January 1, 1996, and
3-15 applies only to a contract of sale that is executed on or after
3-16 that date.
3-17 SECTION 3. The importance of this legislation and the
3-18 crowded condition of the calendars in both houses create an
3-19 emergency and an imperative public necessity that the
3-20 constitutional rule requiring bills to be read on three several
3-21 days in each house be suspended, and this rule is hereby suspended.