1-1     By:  Oliveira (Senate Sponsor - Lucio)                H.B. No. 1665

 1-2           (In the Senate - Received from the House May 9, 1997;

 1-3     May 12, 1997, read first time and referred to Committee on

 1-4     Jurisprudence; May 17, 1997, reported favorably by the following

 1-5     vote:  Yeas 7, Nays 0; May 17, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to disclosure of the location of certain subsurface

 1-9     conditions by a person  who is selling unimproved real property to

1-10     be used for residential purposes.

1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-12           SECTION 1.  Subchapter A, Chapter 5, Property Code, is

1-13     amended by adding Section 5.010 to read as follows:

1-14           Sec. 5.010.  SELLER'S DISCLOSURE OF LOCATION OF CONDITIONS

1-15     UNDER SURFACE OF UNIMPROVED REAL PROPERTY.  (a)  A seller of

1-16     unimproved real property to be used for residential purposes shall

1-17     provide to the purchaser of the property a written notice

1-18     disclosing the location of a transportation pipeline, including a

1-19     pipeline for the transportation of natural gas, natural gas

1-20     liquids, synthetic gas, liquefied petroleum gas, petroleum or a

1-21     petroleum product, or a hazardous substance.

1-22           (b)  The notice must state the information to the best of the

1-23     seller's belief and knowledge as of the date the notice is

1-24     completed and signed by the seller.  If the information required to

1-25     be disclosed is not known to the seller, the seller shall indicate

1-26     that fact in the notice.

1-27           (c)  The notice must be delivered by the seller on or before

1-28     the effective date of an executory contract binding the purchaser

1-29     to purchase the property.  If a contract is entered without the

1-30     seller providing the notice as required by this section, the

1-31     purchaser may terminate the contract for any reason not later than

1-32     the seventh day after the effective date of the contract.

1-33           (d)  This section applies to any seller of unimproved real

1-34     property, including a seller who is the developer of the property

1-35     and who sells the property to others for resale.

1-36           (e)  In this section, "hazardous substance" and "hazardous

1-37     waste" have the meanings assigned by Section 361.003, Health and

1-38     Safety Code.

1-39           (f)  A seller is not required to give the notice if:

1-40                 (1)  the seller is obligated under an earnest money

1-41     contract to furnish a title insurance commitment to the buyer prior

1-42     to closing; and

1-43                 (2)  the buyer is entitled to terminate the contract if

1-44     the buyer's objections to title as permitted by the contract are

1-45     not cured by the seller prior to closing.

1-46           SECTION 2.  Section 5.010, Property Code, as added by this

1-47     Act, applies only to a sale of property for which a contract  is

1-48     entered into on or after January 1, 1998.

1-49           SECTION 3.  The importance of this legislation and the

1-50     crowded condition of the calendars in both houses create an

1-51     emergency and an imperative public necessity that the

1-52     constitutional rule requiring bills to be read on three several

1-53     days in each house be suspended, and this rule is hereby suspended,

1-54     and that this Act take effect and be in force from and after its

1-55     passage, and it is so enacted.

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