By Howard H.B. No. 641
76R11169 PAM-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to requiring a municipal utility district to disclose to
1-3 the purchaser of residential real property whether the property is
1-4 located in a municipality's corporate boundaries or
1-5 extraterritorial jurisdiction.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. Section 49.452, Water Code, is amended to read as
1-8 follows:
1-9 Sec. 49.452. NOTICE TO PURCHASERS. (a)(1) Any person who
1-10 proposes to sell or convey real property located in a district
1-11 created under this title or by a special Act of the legislature
1-12 that is providing or proposing to provide, as the district's
1-13 principal function, water, sanitary sewer, drainage, and flood
1-14 control or protection facilities or services, or any of these
1-15 facilities or services that have been financed or are proposed to
1-16 be financed with bonds of the district payable in whole or part
1-17 from taxes of the district, or by imposition of a standby fee, if
1-18 any, to household or commercial users, other than agricultural,
1-19 irrigation, or industrial users, and which district includes less
1-20 than all the territory in at least one county and which, if located
1-21 within the corporate area of a city, includes less than 75 percent
1-22 of the incorporated area of the city or which is located outside
1-23 the corporate area of a city in whole or in substantial part, must
1-24 first give to the purchaser the written notice provided in this
2-1 section.
2-2 (2) The provisions of this section shall not be
2-3 applicable to:
2-4 (A) transfers of title under any type of lien
2-5 foreclosure;
2-6 (B) transfers of title by deed in cancellation
2-7 of indebtedness secured by a lien upon the property conveyed; [or]
2-8 (C) transfers of title by reason of a will or
2-9 probate proceedings; or
2-10 (D) transfers of title to a governmental entity.
2-11 (b) The prescribed notice for [all] districts located in
2-12 whole or in part in the extraterritorial jurisdiction of one or
2-13 more home-rule municipalities and not located within the corporate
2-14 boundaries of a municipality shall be executed by the seller and
2-15 shall read as follows:
2-16 "The real property, described below, that you are about to
2-17 purchase is located in the ___________________ District. The
2-18 district has taxing authority separate from any other taxing
2-19 authority and may, subject to voter approval, issue an unlimited
2-20 amount of bonds and levy an unlimited rate of tax in payment of
2-21 such bonds. As of this date, the rate of taxes levied by the
2-22 district on real property located in the district is $__________ on
2-23 each $100 of assessed valuation. If the district has not yet
2-24 levied taxes, the most recent projected rate of [debt service] tax,
2-25 as of this date, is $__________ on each $100 of assessed valuation.
2-26 The total amount of bonds, excluding refunding bonds and any bonds
2-27 or any portion of bonds issued that are payable solely from
3-1 revenues received or expected to be received under a contract with
3-2 a governmental entity, approved by the voters and which have been
3-3 or may, at this date, be issued is $__________, and the aggregate
3-4 initial principal amounts of all bonds issued for one or more of
3-5 the specified facilities of the district and payable in whole or in
3-6 part from property taxes is $__________.
3-7 "The district has the authority to adopt and impose a standby
3-8 fee on property in the district that has water, sanitary sewer, or
3-9 drainage facilities and services available but not connected and
3-10 which does not have a house, building, or other improvement located
3-11 thereon and does not substantially utilize the utility capacity
3-12 available to the property. The district may exercise the
3-13 authority without holding an election on the matter. As of this
3-14 date, the most recent amount of the standby fee is $__________. An
3-15 unpaid standby fee is a personal obligation of the person that
3-16 owned the property at the time of imposition and is secured by a
3-17 lien on the property. Any person may request a certificate from
3-18 the district stating the amount, if any, of unpaid standby fees on
3-19 a tract of property in the district.
3-20 "The district is located in whole or in part in the
3-21 extraterritorial jurisdiction of the City of _______________. By
3-22 law, a district located in the extraterritorial jurisdiction of a
3-23 municipality may be annexed without the consent of the district or
3-24 the voters of the district. When a district is annexed, the
3-25 district is dissolved.
3-26 "The purpose of this district is to provide water, sewer,
3-27 drainage, or flood control facilities and services within the
4-1 district through the issuance of bonds payable in whole or in part
4-2 from property taxes. The cost of these utility facilities is not
4-3 included in the purchase price of your property, and these utility
4-4 facilities are owned or to be owned by the district. The legal
4-5 description of the property you are acquiring is as follows:
4-6 -------------------------------------------------------------------
4-7 ______________________ (Date)
4-8 _____________________________
4-9 Signature of Seller
4-10 PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORM
4-11 IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME. THE DISTRICT
4-12 ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF SEPTEMBER
4-13 THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE
4-14 TAX RATES ARE APPROVED BY THE DISTRICT. PURCHASER IS ADVISED TO
4-15 CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR
4-16 PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM.
4-17 "The undersigned purchaser hereby acknowledges receipt of the
4-18 foregoing notice at or prior to execution of a binding contract for
4-19 the purchase of the real property described in such notice or at
4-20 closing of purchase of the real property.
4-21 -------------------------------------------------------------------
4-22 ______________________ (Date)
4-23 _____________________________
4-24 Signature of Purchaser
4-25 "(Note: Correct district name, tax rate, bond amounts, and
4-26 legal description are to be placed in the appropriate space.)
4-27 Except for notices included as an addendum or paragraph of a
5-1 purchase contract, the notice shall be executed by the seller and
5-2 purchaser, as indicated. If the district does not propose to
5-3 provide one or more of the specified facilities and services, the
5-4 appropriate purpose may be eliminated. If the district has not yet
5-5 levied taxes, a statement of the district's most recent projected
5-6 rate of [debt service] tax is to be placed in the appropriate
5-7 space. If the district does not have approval from the commission
5-8 to adopt and impose a standby fee, the second paragraph of the
5-9 notice may be deleted. For the purposes of the notice form
5-10 required to be given to the prospective purchaser prior to
5-11 execution of a binding contract of sale and purchase, a seller and
5-12 any agent, representative, or person acting on the seller's behalf
5-13 may modify the notice by substitution of the words 'January 1,
5-14 ______' for the words 'this date' and place the correct calendar
5-15 year in the appropriate space."
5-16 (c) The prescribed notice for districts located in whole or
5-17 in part within the corporate boundaries of a municipality shall be
5-18 executed by the seller and shall read as follows:
5-19 "The real property, described below, that you are about to
5-20 purchase is located in the ___________________ District. The
5-21 district has taxing authority separate from any other taxing
5-22 authority and may, subject to voter approval, issue an unlimited
5-23 amount of bonds and levy an unlimited rate of tax in payment of
5-24 such bonds. As of this date, the rate of taxes levied by the
5-25 district on real property located in the district is $__________ on
5-26 each $100 of assessed valuation. If the district has not yet
5-27 levied taxes, the most recent projected rate of tax, as of this
6-1 date, is $__________ on each $100 of assessed valuation. The total
6-2 amount of bonds, excluding refunding bonds and any bonds or any
6-3 portion of bonds issued that are payable solely from revenues
6-4 received or expected to be received under a contract with a
6-5 governmental entity, approved by the voters and which have been or
6-6 may, at this date, be issued is $__________, and the aggregate
6-7 initial principal amounts of all bonds issued for one or more of
6-8 the specified facilities of the district and payable in whole or in
6-9 part from property taxes is $__________.
6-10 "The district has the authority to adopt and impose a standby
6-11 fee on property in the district that has water, sanitary sewer, or
6-12 drainage facilities and services available but not connected and
6-13 which does not have a house, building, or other improvement located
6-14 thereon and does not substantially utilize the utility capacity
6-15 available to the property. The district may exercise the authority
6-16 without holding an election on the matter. As of this date, the
6-17 most recent amount of the standby fee is $__________. An unpaid
6-18 standby fee is a personal obligation of the person that owned the
6-19 property at the time of imposition and is secured by a lien on the
6-20 property. Any person may request a certificate from the district
6-21 stating the amount, if any, of unpaid standby fees on a tract of
6-22 property in the district.
6-23 "The district is located in whole or in part within the
6-24 corporate boundaries of the City of ___________. The taxpayers of
6-25 the district are subject to the taxes imposed by the municipality
6-26 and by the district until the district is dissolved. By law, a
6-27 district located within the corporate boundaries of a municipality
7-1 may be dissolved by municipal ordinance without the consent of the
7-2 district or the voters of the district.
7-3 "The purpose of this district is to provide water, sewer,
7-4 drainage, or flood control facilities and services within the
7-5 district through the issuance of bonds payable in whole or in part
7-6 from property taxes. The cost of these utility facilities is not
7-7 included in the purchase price of your property, and these utility
7-8 facilities are owned or to be owned by the district. The legal
7-9 description of the property you are acquiring is as follows:
7-10 -------------------------------------------------------------------
7-11 ______________________(Date)
7-12 ____________________________
7-13 Signature of Seller
7-14 PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORM
7-15 IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME. THE DISTRICT
7-16 ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF SEPTEMBER
7-17 THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE
7-18 TAX RATES ARE APPROVED BY THE DISTRICT. PURCHASER IS ADVISED TO
7-19 CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR
7-20 PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM.
7-21 "The undersigned purchaser hereby acknowledges receipt of the
7-22 foregoing notice at or prior to execution of a binding contract for
7-23 the purchase of the real property described in such notice or at
7-24 closing of purchase of the real property.
7-25 -------------------------------------------------------------------
7-26 ______________________(Date)
7-27 ____________________________
8-1 Signature of Purchaser
8-2 "(Note: Correct district name, tax rate, bond amounts, and
8-3 legal description are to be placed in the appropriate space.)
8-4 Except for notices included as an addendum or paragraph of a
8-5 purchase contract, the notice shall be executed by the seller and
8-6 purchaser, as indicated. If the district does not propose to
8-7 provide one or more of the specified facilities and services, the
8-8 appropriate purpose may be eliminated. If the district has not yet
8-9 levied taxes, a statement of the district's most recent projected
8-10 rate of tax is to be placed in the appropriate space. If the
8-11 district does not have approval from the commission to adopt and
8-12 impose a standby fee, the second paragraph of the notice may be
8-13 deleted. For the purposes of the notice form required to be given
8-14 to the prospective purchaser prior to execution of a binding
8-15 contract of sale and purchase, a seller and any agent,
8-16 representative, or person acting on the seller's behalf may modify
8-17 the notice by substitution of the words 'January 1,______' for the
8-18 words 'this date' and place the correct calendar year in the
8-19 appropriate space."
8-20 (d) The prescribed notice for districts that are not located
8-21 in whole or in part within the corporate boundaries of a
8-22 municipality or the extraterritorial jurisdiction of one or more
8-23 home-rule municipalities shall be executed by the seller and shall
8-24 read as follows:
8-25 "The real property, described below, that you are about to
8-26 purchase is located in the ___________________ District. The
8-27 district has taxing authority separate from any other taxing
9-1 authority and may, subject to voter approval, issue an unlimited
9-2 amount of bonds and levy an unlimited rate of tax in payment of
9-3 such bonds. As of this date, the rate of taxes levied by the
9-4 district on real property located in the district is $__________ on
9-5 each $100 of assessed valuation. If the district has not yet
9-6 levied taxes, the most recent projected rate of tax, as of this
9-7 date, is $__________ on each $100 of assessed valuation. The total
9-8 amount of bonds, excluding refunding bonds and any bonds or any
9-9 portion of bonds issued that are payable solely from revenues
9-10 received or expected to be received under a contract with a
9-11 governmental entity, approved by the voters and which have been or
9-12 may, at this date, be issued is $__________, and the aggregate
9-13 initial principal amounts of all bonds issued for one or more of
9-14 the specified facilities of the district and payable in whole or in
9-15 part from property taxes is $__________.
9-16 "The district has the authority to adopt and impose a standby
9-17 fee on property in the district that has water, sanitary sewer, or
9-18 drainage facilities and services available but not connected and
9-19 which does not have a house, building, or other improvement located
9-20 thereon and does not substantially utilize the utility capacity
9-21 available to the property. The district may exercise the authority
9-22 without holding an election on the matter. As of this date, the
9-23 most recent amount of the standby fee is $__________. An unpaid
9-24 standby fee is a personal obligation of the person that owned the
9-25 property at the time of imposition and is secured by a lien on the
9-26 property. Any person may request a certificate from the district
9-27 stating the amount, if any, of unpaid standby fees on a tract of
10-1 property in the district.
10-2 "The purpose of this district is to provide water, sewer,
10-3 drainage, or flood control facilities and services within the
10-4 district through the issuance of bonds payable in whole or in part
10-5 from property taxes. The cost of these utility facilities is not
10-6 included in the purchase price of your property, and these utility
10-7 facilities are owned or to be owned by the district. The legal
10-8 description of the property you are acquiring is as follows:
10-9 -------------------------------------------------------------------
10-10 _____________________(Date)
10-11 ___________________________
10-12 Signature of Seller
10-13 PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORM
10-14 IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME. THE DISTRICT
10-15 ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF SEPTEMBER
10-16 THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE
10-17 TAX RATES ARE APPROVED BY THE DISTRICT. PURCHASER IS ADVISED TO
10-18 CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR
10-19 PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM.
10-20 "The undersigned purchaser hereby acknowledges receipt of the
10-21 foregoing notice at or prior to execution of a binding contract for
10-22 the purchase of the real property described in such notice or at
10-23 closing of purchase of the real property.
10-24 -----------------------------------------------------------------
10-25 ________________________(Date)
10-26 ______________________________
10-27 Signature of Purchaser
11-1 "(Note: Correct district name, tax rate, bond amounts, and
11-2 legal description are to be placed in the appropriate space.)
11-3 Except for notices included as an addendum or paragraph of a
11-4 purchase contract, the notice shall be executed by the seller and
11-5 purchaser, as indicated. If the district does not propose to
11-6 provide one or more of the specified facilities and services, the
11-7 appropriate purpose may be eliminated. If the district has not yet
11-8 levied taxes, a statement of the district's most recent projected
11-9 rate of tax is to be placed in the appropriate space. If the
11-10 district does not have approval from the commission to adopt and
11-11 impose a standby fee, the second paragraph of the notice may be
11-12 deleted. For the purposes of the notice form required to be given
11-13 to the prospective purchaser prior to execution of a binding
11-14 contract of sale and purchase, a seller and any agent,
11-15 representative, or person acting on the seller's behalf may modify
11-16 the notice by substitution of the words 'January 1, ______' for the
11-17 words 'this date' and place the correct calendar year in the
11-18 appropriate space."
11-19 (e) If the law relating to annexation or district
11-20 dissolution is amended and causes inaccuracies in the content of
11-21 the notices prescribed by this section, the district shall revise
11-22 the content of the notices to accurately reflect current law.
11-23 (f) [(c)] The notice required by this section shall be given
11-24 to the prospective purchaser prior to execution of a binding
11-25 contract of sale and purchase either separately or as an addendum
11-26 or paragraph of a purchase contract. In the event a contract of
11-27 purchase and sale is entered into without the seller providing the
12-1 notice required by this subsection, the purchaser shall be entitled
12-2 to terminate the contract. If, however, the seller furnishes the
12-3 required notice at or prior to closing the purchase and sale
12-4 contract and the purchaser elects to close even though such notice
12-5 was not timely furnished prior to execution of the contract, it
12-6 shall be conclusively presumed that the purchaser has waived all
12-7 rights to terminate the contract and recover damages or other
12-8 remedies or rights under the provisions of this section.
12-9 Notwithstanding any provision of this subchapter to the contrary,
12-10 all sellers, title companies, real estate brokers, and examining
12-11 attorneys, and any agent, representative, or person acting on their
12-12 behalf, shall not be liable for damages under the provisions of
12-13 either Subsection (o) [(l)] or (p) [(m)] or liable for any other
12-14 damages to any person for:
12-15 (1) failing [failure] to provide the notice required
12-16 by this section to a purchaser prior to execution of a binding
12-17 contract of a purchase and sale or at or prior to the closing of
12-18 the purchase and sale contract when the district has not filed the
12-19 information form and map or plat as required under Section 49.455;
12-20 or
12-21 (2) unintentionally providing a notice prescribed by
12-22 this section that is not the correct notice under the circumstances
12-23 prior to execution of a binding contract of purchase and sale or at
12-24 or prior to the closing of the purchase and sale contract.
12-25 (g) [(d)] The purchaser shall sign the notice or purchase
12-26 contract including such notice to evidence the receipt of notice.
12-27 (h) [(e)] At the closing of purchase and sale, a separate
13-1 copy of such notice with current information shall be executed by
13-2 the seller and purchaser, acknowledged, and thereafter recorded in
13-3 the deed records of the county in which the property is located.
13-4 For the purposes of this section, all sellers, title companies,
13-5 real estate brokers, and examining attorneys, and any agent,
13-6 representative, or person acting on their behalf, shall be entitled
13-7 to rely on the accuracy of the information form and map or plat as
13-8 last filed by each district under Section 49.455 or the information
13-9 contained in or shown on the notice form issued by the district
13-10 under Section 49.453 in completing the notice form to be executed
13-11 by the seller and purchaser at the closing of purchase and sale.
13-12 Any information taken from the information form or map or plat as
13-13 last filed by each district and the information contained in or
13-14 shown on the notice form issued by the district under Section
13-15 49.453 shall be, for purposes of this section, conclusively
13-16 presumed as a matter of law to be correct. All subsequent sellers,
13-17 purchasers, title insurance companies, real estate brokers,
13-18 examining attorneys, and lienholders shall be entitled to rely upon
13-19 the information form and map or plat filed by the district or the
13-20 notice form issued by the district under Section 49.453.
13-21 (i) [(f)] For the purposes of this section, an executory
13-22 contract of purchase and sale having a performance period of more
13-23 than six months shall be considered a sale under Subsection (a).
13-24 (j) [(g)] For the purposes of the notice form to be given to
13-25 the prospective purchaser prior to execution of a binding contract
13-26 of sale and purchase, a seller and any agent, representative, or
13-27 person acting in the seller's behalf may modify the notice by
14-1 substitution of the words "January 1, ____" for the words "this
14-2 date" and place the correct calendar year in the appropriate space.
14-3 All sellers, and all persons completing the prescribed notice in
14-4 the sellers' behalf, shall be entitled to rely on the information
14-5 contained in or shown on the information form and map or plat filed
14-6 of record by the district under Section 49.455 in completing the
14-7 prescribed form to be given to the prospective purchaser prior to
14-8 execution of a binding contract of sale and purchase. Except as
14-9 otherwise provided in Subsection (h) [(e)], any information taken
14-10 from the information form or map or plat filed of record by the
14-11 district in effect as of January 1 of each year shall be, for
14-12 purposes of the notice to be given to the prospective purchaser
14-13 prior to execution of a binding contract of sale and purchase,
14-14 conclusively presumed as a matter of law to be correct for the
14-15 period January 1 through December 31 of such calendar year. A
14-16 seller and any persons completing the prescribed notice in the
14-17 seller's behalf may provide more recent information, if available,
14-18 than the information contained in or shown on the information form
14-19 and map or plat filed of record by the district under Section
14-20 49.455 in effect as of January 1 of each year in completing the
14-21 prescribed form to be given to the purchaser prior to execution of
14-22 a binding contract of sale and purchase. Nothing contained in the
14-23 preceding sentence shall be construed to create an affirmative duty
14-24 on the part of a seller or any persons completing the prescribed
14-25 notice in the seller's behalf to provide more recent information
14-26 than the information taken from the information form and map or
14-27 plat filed of record by the district as of January 1 of each year
15-1 in completing the prescribed notice to be given to the purchaser
15-2 prior to execution of a binding contract of sale and purchase. All
15-3 subsequent sellers, purchasers, title insurance companies, real
15-4 estate brokers, examining attorneys, and lienholders shall be
15-5 entitled to rely upon the information form and map or plat filed by
15-6 the district.
15-7 (k) [(h)] If such notice is given at closing as provided in
15-8 Subsection (h) [(e)], a purchaser, or the purchaser's heirs,
15-9 successors, or assigns, shall not be entitled to maintain any
15-10 action for damages or maintain any action against a seller, title
15-11 insurance company, real estate brokers, or lienholder, or any
15-12 agent, representative, or person acting in their behalf, by reason
15-13 of use by the seller of the information filed for record by the
15-14 district or reliance by the seller on the filed plat and filed
15-15 legal description of the district in determining whether the
15-16 property to be sold and purchased is within the district. No
15-17 action may be maintained against any title company for failure to
15-18 disclose the inclusion of the described real property within a
15-19 district when the district has not filed for record the information
15-20 form, map, or plat with the clerk of the county or counties in
15-21 which the district is located.
15-22 (l) [(i)] Any purchaser who purchases any real property in a
15-23 district and who thereafter sells or conveys the same shall on
15-24 closing of such subsequent sale be conclusively considered as
15-25 having waived any prior right to damages under this section.
15-26 (m) [(j)] It is the express intent of this section that all
15-27 sellers, title insurance companies, examining attorneys, vendors of
16-1 property and tax information, real estate brokers, and lienholders,
16-2 and any agent, representative, or person acting on their behalf,
16-3 shall be entitled to rely on the accuracy of the information form
16-4 and map or plat as last filed by each district or the information
16-5 contained in or shown on the notice form issued by the district
16-6 under Section 49.453, or for the purposes of the notice to be given
16-7 the purchaser prior to execution of a binding contract of sale and
16-8 purchase the information contained in or shown on the information
16-9 form and map or plat filed of record by the district in effect as
16-10 of January 1 of each year for the period January 1 through December
16-11 31 of such calendar year.
16-12 (n) [(k)] Except as otherwise provided in Subsection (f)
16-13 [(c)], if any sale or conveyance of real property within a district
16-14 is not made in compliance with the provisions of this section, the
16-15 purchaser may institute a suit for damages under the provisions of
16-16 either Subsection (o) [(l)] or (p) [(m)].
16-17 (o) [(l)] A purchaser of real property covered by the
16-18 provisions of this section, if the sale or conveyance of the
16-19 property is not made in compliance with this section, may institute
16-20 a suit for damages in the amount of all costs relative to the
16-21 purchase of the property plus interest and reasonable attorney's
16-22 fees. The suit for damages may be instituted jointly or severally
16-23 against the person, firm, corporation, partnership, organization,
16-24 business trust, estate, trust, association, or other legal entity
16-25 that sold or conveyed the property to the purchaser. Following the
16-26 recovery of damages under this subsection, the amount of the
16-27 damages shall first be paid to satisfy all unpaid obligations on
17-1 each outstanding lien or liens on the property and the remainder of
17-2 the damage amount shall be paid to the purchaser. On payment of
17-3 all damages respectively to the lienholders and purchaser, the
17-4 purchaser shall reconvey the property to the seller.
17-5 (p) [(m)] A purchaser of real property covered by the
17-6 provisions of this section, if the sale or conveyance of the
17-7 property is not made in compliance with this section, may institute
17-8 a suit for damages in an amount not to exceed $5,000, plus
17-9 reasonable attorney's fees.
17-10 (q) [(n)] A purchaser is not entitled to recover damages
17-11 under both Subsections (o) [(l)] and (p) [(m)], and entry of a
17-12 final decision awarding damages to the purchaser under either
17-13 Subsection (o) [(l)] or (p) [(m)] shall preclude the purchaser from
17-14 recovering damages under the other subsection. Notwithstanding any
17-15 part or provision of the general or special laws or the common law
17-16 of the state to the contrary, the relief provided under Subsections
17-17 (o) [(l)] and (p) [(m)] shall be the exclusive remedies for a
17-18 purchaser aggrieved by the seller's failure to comply with the
17-19 provisions of this section. Any action for damages shall not,
17-20 however, apply to, affect, alter, or impair the validity of any
17-21 existing vendor's lien, mechanic's lien, or deed of trust lien on
17-22 the property.
17-23 (r) [(o)] A suit for damages under the provisions of this
17-24 section must be brought within 90 days after the purchaser receives
17-25 the first district tax notice or within four years after the
17-26 property is sold or conveyed to the purchaser, whichever time
17-27 occurs first, or the purchaser loses the right to seek damages
18-1 under this section.
18-2 (s) [(p)] Notwithstanding any provisions of this subchapter
18-3 to the contrary, a purchaser may not recover damages of any kind
18-4 under this section if that person:
18-5 (1) purchases an equity in real property and in
18-6 conjunction with the purchase assumes any liens, whether purchase
18-7 money or otherwise; and
18-8 (2) does not require proof of title by abstract, title
18-9 policy, or any other proof of title.
18-10 SECTION 2. (a) This Act takes effect September 1, 1999.
18-11 (b) The change in law made by this Act applies only to a
18-12 transfer of property that occurs on or after the effective date of
18-13 this Act. For purposes of this section, a transfer of property
18-14 occurs before the effective date of this Act if the contract of
18-15 sale and purchase binding the purchaser to purchase the property is
18-16 executed before that date.
18-17 (c) Property transferred before the effective date of this
18-18 Act is covered by the law in effect when the property was
18-19 transferred, and the former law is continued in effect for that
18-20 purpose.
18-21 SECTION 3. The importance of this legislation and the
18-22 crowded condition of the calendars in both houses create an
18-23 emergency and an imperative public necessity that the
18-24 constitutional rule requiring bills to be read on three several
18-25 days in each house be suspended, and this rule is hereby suspended.