By Oliveira H.B. No. 1665
75R4580 CAS-D
A BILL TO BE ENTITLED
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 any of the following under the surface
1-13 of the property:
1-14 (1) a transportation pipeline, including a pipeline
1-15 for the transportation of natural gas, natural gas liquids,
1-16 synthetic gas, liquefied petroleum gas, petroleum or a petroleum
1-17 product, or a hazardous substance; or
1-18 (2) an injection well, a tank, or a facility used or
1-19 formerly used for storage or disposal of hazardous waste, solid
1-20 waste, natural gas, or petroleum or a petroleum product.
1-21 (b) The notice must state the information to the best of the
1-22 seller's belief and knowledge as of the date the notice is
1-23 completed and signed by the seller. If the information required to
1-24 be disclosed is not known to the seller, the seller shall indicate
2-1 that fact in the notice.
2-2 (c) The notice must be delivered by the seller on or before
2-3 the effective date of an executory contract binding the purchaser
2-4 to purchase the property. If a contract is entered without the
2-5 seller providing the notice as required by this section, the
2-6 purchaser may terminate the contract for any reason not later than
2-7 the seventh day after the effective date of the contract.
2-8 (d) This section applies to any seller of unimproved real
2-9 property, including a seller who is the developer of the property
2-10 and who sells the property to others for resale.
2-11 (e) In this section, "hazardous substance" and "hazardous
2-12 waste" have the meanings assigned by Section 361.003, Health and
2-13 Safety Code.
2-14 SECTION 2. Section 5.010, Property Code, as added by this
2-15 Act, applies only to a sale of property for which a contract is
2-16 entered into on or after January 1, 1998.
2-17 SECTION 3. The importance of this legislation and the
2-18 crowded condition of the calendars in both houses create an
2-19 emergency and an imperative public necessity that the
2-20 constitutional rule requiring bills to be read on three several
2-21 days in each house be suspended, and this rule is hereby suspended,
2-22 and that this Act take effect and be in force from and after its
2-23 passage, and it is so enacted.
2-24 COMMITTEE AMENDMENT NO. 1
2-25 Amend H.B. 1665, on page 1, lines 9-20, by striking
2-26 subsection (a) and inserting the following:
2-27 (a) A seller of unimproved real property to be used for
3-1 residential purposes shall provide to the purchaser of the property
3-2 a written notice disclosing the location of a transportation
3-3 pipeline, including a pipeline for the transportation of natural
3-4 gas, natural gas liquids, synthetic gas, liquefied petroleum gas,
3-5 petroleum or a petroleum product, or a hazardous substance.
3-6 Woolley
3-7 COMMITTEE AMENDMENT NO. 2
3-8 Amend H.B. 1665, on page 2, between lines 13 and 14 add the
3-9 following:
3-10 (f) A seller is not required to give the notice if:
3-11 (1) the seller is obligated under an earnest money
3-12 contract to furnish a title insurance commitment to the buyer prior
3-13 to closing; and
3-14 (2) the buyer is entitled to terminate the contract if
3-15 the buyer's objections to title as permitted by the contract are
3-16 not cured by the seller prior to closing.
3-17 Corte