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.