SRC-PNG S.B. 167 76(R)BILL ANALYSIS


Senate Research CenterS.B. 167
By: Carona
Intergovernmental Relations
6/21/1999
Enrolled


DIGEST 

Currently, a seller of real property is not required to deliver notice to
purchasers regarding possible annexation of the property.  A buyer of real
estate located outside a city's limits may not be aware that the property
lies within the city's extraterritorial jurisdiction and is subject to
future annexation. This bill requires a seller of real property to deliver
notice to a purchaser regarding the potential for annexation of the
property. 

PURPOSE

As enrolled, S.B. 167 requires a seller of real property to deliver notice
to the purchaser regarding the potential for annexation of the property. 

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 5.011, as
follows: 

 Sec.  5.011. SELLER'S DISCLOSURE REGARDING POTENTIAL ANNEXATION.  Requires
a seller of real property to deliver a written notice regarding the
potential for  annexation of the property.  Provides an example of such
notice. Requires the seller to deliver  the notice to the purchaser before
a certain date.  Authorizes the notice to be given separately,  as part of
the contract during negotiations, or as part of any other notice delivered
to the  purchaser.  Establishes that this section does not apply to certain
transfers.  Provides that the  seller has no duty to provide additional
information regarding possible annexation if the  notice is delivered as
provided by this section.  Authorizes the purchaser to terminate the
contract within a certain time frame if an executory contract is entered
into without the seller  providing such notice. 

SECTION 2. Effective date: January 1, 2000.
  Makes application of this Act prospective.
  
SECTION 3. Emergency clause.