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.