74R12400 SMH-D
By Ratliff S.B. No. 1679
Substitute the following for S.B. No. 1679:
By Saunders C.S.S.B. No. 1679
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the notice the seller of an interest in coastal area
1-3 property is required to furnish the purchaser.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 33.135 and 61.025, Natural Resources
1-6 Code, are amended to read as follows:
1-7 Sec. 33.135. NOTICE TO PURCHASER OR GRANTEE OF COASTAL AREA
1-8 PROPERTY. (a) A person who sells, transfers, or conveys an
1-9 interest other than a mineral, leasehold, or security interest in
1-10 real property adjoining and abutting water that regularly falls and
1-11 rises with the tide <the tidally influenced waters of the state>
1-12 must give to the purchaser or grantee of the property <include>
1-13 the following notice <as a part of a written executory contract for
1-14 the sale, transfer, or conveyance>:
1-15 "NOTICE REGARDING COASTAL AREA PROPERTY
1-16 "(1) The real property described in and subject to
1-17 this contract or that is the subject of this conveyance may adjoin
1-18 <adjoins> and share <shares> a common boundary with a <the> tidally
1-19 influenced water <submerged lands> of the state. The boundary may
1-20 be <is> subject to change and can be determined accurately only by
1-21 a survey on the ground made by a licensed state land surveyor or
1-22 registered professional land surveyor in accordance with the
1-23 original grant from the sovereign. The <owner of the> property
1-24 <described in this contract> may gain or lose area <portions of
2-1 the tract> because of changes in the boundary.
2-2 "(2) The seller, transferor, or grantor has no
2-3 knowledge of any prior fill as it relates to the property except as
2-4 follows: _________________________________________________________
2-5 ___________________________________________________________________
2-6 <described in and subject to this contract>.
2-7 "(3) State law prohibits the use, encumbrance,
2-8 construction, or placing of any structure in, on, or over
2-9 state-owned submerged lands below the applicable tide line, without
2-10 proper permission.
2-11 "(4) The purchaser or grantee is <hereby> advised to
2-12 seek the advice of an attorney or other qualified person as to the
2-13 legal nature and effect of the information <facts set forth> in
2-14 this notice <on the property described in and subject to this
2-15 contract>. Information regarding the location of the <applicable>
2-16 tide line <as to the property described in and subject to this
2-17 contract> may be obtained from the surveying division of the
2-18 General Land Office in Austin."
2-19 (b) If the seller and purchaser enter into an executory
2-20 contract binding the purchaser to purchase the property, the seller
2-21 shall deliver the notice to the purchaser on or before entering
2-22 into the contract <If property described under Subsection (a) of
2-23 this section is sold, transferred, or conveyed without an executory
2-24 contract for conveyance, a written statement containing the notice
2-25 prescribed by that subsection must be delivered to the grantee for
2-26 execution and acknowledgement of receipt before the conveyance is
2-27 recorded>.
3-1 (c) If the grantor and grantee do not enter into an
3-2 executory contract binding the grantee to purchase the property,
3-3 the grantor shall deliver the notice to the grantee on or before
3-4 the closing or conveyance <Failure to include the statement in an
3-5 executory contract for conveyance shall be grounds for the
3-6 purchaser to terminate such contract, and upon termination any
3-7 earnest money shall be returned to the party making the deposit>.
3-8 (d) If the seller and purchaser enter into an executory
3-9 contract binding the purchaser to purchase the property and the
3-10 seller provides the notice after the parties enter into the
3-11 contract but before closing, the purchaser may terminate the
3-12 contract for any reason not later than the seventh day after the
3-13 date the purchaser receives the notice, and on termination any
3-14 earnest money shall be returned to the party making the deposit
3-15 <Failure to provide this statement prior to closing, either in the
3-16 executory contract for conveyance or in a separate written
3-17 statement, shall constitute a deceptive act under Section 17.46,
3-18 Business & Commerce Code>.
3-19 (e) If the seller, transferor, or grantor does not give the
3-20 notice on or before the closing or conveyance, the purchaser or
3-21 grantee may seek other relief as provided by law.
3-22 (f) This section or the action of any party subject to this
3-23 section does not diminish or modify the beach access and use rights
3-24 of the public as acquired by statute or under common law.
3-25 Sec. 61.025. DISCLOSURE TO PURCHASER OF PROPERTY. (a) A
3-26 person who sells or conveys an interest, other than a mineral,
3-27 leasehold, or security interest, in real property located seaward
4-1 of the Gulf Intracoastal Waterway to its southernmost point and
4-2 then seaward of the longitudinal line also known as 97 degrees,
4-3 12', 19" which runs southerly to the international boundary from
4-4 the intersection of the centerline of the Gulf Intracoastal
4-5 Waterway and the Brownsville Ship Channel must give to the
4-6 purchaser <include in any executory contract for conveyance> the
4-7 following statement:
4-8 The real property described in this contract is located
4-9 seaward of the Gulf Intracoastal Waterway to its southernmost point
4-10 and then seaward of the longitudinal line also known as 97 degrees,
4-11 12', 19" which runs southerly to the international boundary from
4-12 the intersection of the centerline of the Gulf Intracoastal
4-13 Waterway and the Brownsville Ship Channel. If the property is in
4-14 close proximity to a beach fronting the Gulf of Mexico, the
4-15 purchaser is hereby advised that the public has acquired a right of
4-16 use or easement to or over the area of any public beach by
4-17 prescription, dedication, or presumption, or has retained a right
4-18 by virtue of continuous right in the public since time immemorial,
4-19 as recognized in law and custom.
4-20 The extreme seaward boundary of natural vegetation that
4-21 spreads continuously inland customarily marks the landward boundary
4-22 of the public easement. If there is no clearly marked natural
4-23 vegetation line, the landward boundary of the easement is as
4-24 provided by Sections 61.016 and 61.017, Natural Resources Code.
4-25 State law prohibits any obstruction, barrier, restraint, or
4-26 interference with the use of the public easement, including the
4-27 placement of structures seaward of the landward boundary of the
5-1 easement. STRUCTURES ERECTED SEAWARD OF THE VEGETATION LINE (OR
5-2 OTHER APPLICABLE EASEMENT BOUNDARY) OR THAT BECOME SEAWARD OF THE
5-3 VEGETATION LINE AS A RESULT OF NATURAL PROCESSES ARE SUBJECT TO A
5-4 LAWSUIT BY THE STATE OF TEXAS TO REMOVE THE STRUCTURES.
5-5 The purchaser is hereby notified that the purchaser should
5-6 seek the advice of an attorney or other qualified person before
5-7 executing this contract or instrument of conveyance as to the
5-8 relevance of these statutes and facts to the value of the property
5-9 the purchaser is hereby purchasing or contracting to purchase.
5-10 (b) If the seller and purchaser enter into an executory
5-11 contract binding the purchaser to purchase the property, the seller
5-12 shall deliver the notice to the purchaser on or before entering
5-13 into the contract <If there is no executory contract for
5-14 conveyance, the statement must be delivered to, and receipt thereof
5-15 acknowledged by, the purchaser prior to closing the transaction>.
5-16 (c) If the seller and purchaser do not enter into an
5-17 executory contract binding the purchaser to purchase the property,
5-18 the seller shall deliver the notice to the purchaser on or before
5-19 the closing or conveyance <Failure to include the statement in an
5-20 executory contract for conveyance shall be grounds for the
5-21 purchaser to terminate such contract, and upon termination any
5-22 earnest money shall be returned to the party making the deposit>.
5-23 (d) If the seller and purchaser enter into an executory
5-24 contract binding the purchaser to purchase the property and the
5-25 seller provides the notice after the parties enter into the
5-26 contract but before closing, the purchaser may terminate the
5-27 contract for any reason not later than the seventh day after the
6-1 date the purchaser receives the notice, and on termination any
6-2 earnest money shall be returned to the party making the deposit
6-3 <Failure to provide this statement prior to closing, either in the
6-4 executory contract for conveyance or in a separate written
6-5 statement, shall constitute a deceptive act under Section 17.46,
6-6 Business & Commerce Code>.
6-7 (e) If the seller does not give the notice on or before the
6-8 closing or conveyance, the purchaser may seek other relief as
6-9 provided by law.
6-10 (f) This section, or the failure of a person to give or
6-11 receive the notice required by this section, does not diminish or
6-12 modify the beach access and use rights of the public acquired
6-13 through statute or under common law.
6-14 SECTION 2. The change in law made by this Act applies only
6-15 to a notice required to be provided on or after the effective date
6-16 of this Act. A notice required to be provided before the effective
6-17 date of this Act is covered by the law in effect on the date the
6-18 notice was required to be provided, and that law is continued in
6-19 effect for that purpose.
6-20 SECTION 3. This Act takes effect September 1, 1995.
6-21 SECTION 4. The importance of this legislation and the
6-22 crowded condition of the calendars in both houses create an
6-23 emergency and an imperative public necessity that the
6-24 constitutional rule requiring bills to be read on three several
6-25 days in each house be suspended, and this rule is hereby suspended.