1-1                                   AN ACT

 1-2     relating to disclosure of the location of certain subsurface

 1-3     conditions by a person  who is selling unimproved real property to

 1-4     be used for residential purposes.

 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.  SELLER'S DISCLOSURE OF LOCATION OF CONDITIONS

 1-9     UNDER SURFACE OF UNIMPROVED REAL PROPERTY.  (a)  A seller of

1-10     unimproved real property to be used for residential purposes shall

1-11     provide to the purchaser of the property a written notice

1-12     disclosing the location of a transportation pipeline, including a

1-13     pipeline for the transportation of natural gas, natural gas

1-14     liquids, synthetic gas, liquefied petroleum gas, petroleum or a

1-15     petroleum product, or a hazardous substance.

1-16           (b)  The notice must state the information to the best of the

1-17     seller's belief and knowledge as of the date the notice is

1-18     completed and signed by the seller.  If the information required to

1-19     be disclosed is not known to the seller, the seller shall indicate

1-20     that fact in the notice.

1-21           (c)  The notice must be delivered by the seller on or before

1-22     the effective date of an executory contract binding the purchaser

1-23     to purchase the property.  If a contract is entered without the

1-24     seller providing the notice as required by this section, the

 2-1     purchaser may terminate the contract for any reason not later than

 2-2     the seventh day after the effective date of the contract.

 2-3           (d)  This section applies to any seller of unimproved real

 2-4     property, including a seller who is the developer of the property

 2-5     and who sells the property to others for resale.

 2-6           (e)  In this section, "hazardous substance" and "hazardous

 2-7     waste" have the meanings assigned by Section 361.003, Health and

 2-8     Safety Code.

 2-9           (f)  A seller is not required to give the notice if:

2-10                 (1)  the seller is obligated under an earnest money

2-11     contract to furnish a title insurance commitment to the buyer prior

2-12     to closing; and

2-13                 (2)  the buyer is entitled to terminate the contract if

2-14     the buyer's objections to title as permitted by the contract are

2-15     not cured by the seller prior to closing.

2-16           SECTION 2.  Section 5.010, Property Code, as added by this

2-17     Act, applies only to a sale of property for which a contract  is

2-18     entered into on or after January 1, 1998.

2-19           SECTION 3.  The importance of this legislation and the

2-20     crowded condition of the calendars in both houses create an

2-21     emergency and an imperative public necessity that the

2-22     constitutional rule requiring bills to be read on three several

2-23     days in each house be suspended, and this rule is hereby suspended,

2-24     and that this Act take effect and be in force from and after its

2-25     passage, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 1665 was passed by the House on May

         8, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 1665 was passed by the Senate on May

         26, 1997, by the following vote:  Yeas 31, Nays 0.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor