SRC-AAA H.B. 384 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 384
By: Pitts (Harris)
Jurisprudence
4-25-97
Engrossed


DIGEST 

Currently, a seller of property is not required to provide notice of
additional ad valorem tax on a real estate disclosure form.  Consequently,
a buyer may purchase a piece of property without being aware of the tax
liability and penalties.   This bill requires a person who is the owner of
an interest in vacant land who contracts for a transfer of that interest
to include in the contract a certain notice. 

PURPOSE

As proposed, H.B. 384 requires a person who is the owner of an interest in
vacant land who contracts for a transfer of that interest to include in
the contract a certain notice. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 5A, Property Code, by adding Section 5.010, as
follows: 

Sec. 5.010. NOTICE OF ADDITIONAL TAX LIABILITY. Requires a person who is
the owner of an interest in vacant land who contracts for a transfer of
that interest to include in the contract a certain notice.  Sets forth the
applicability of this section.  Sets forth the applicability of the notice
in Subsection (a). Sets forth the requirements for placing the notice in
Subsection (a) in a separate paragraph of the contract.  Sets forth the
effects of failing to include the notice in the contract. 

SECTION 2. Effective date: January 1, 1998.
  Makes application of this Act prospective.

SECTION 3. Emergency clause.