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
5-1 "(Note: Correct district name, tax rate, bond amounts, and
5-2 legal description are to be placed in the appropriate space.)
5-3 Except for notices included as an addendum or paragraph of a
5-4 purchase contract, the notice shall be executed by the seller and
5-5 purchaser, as indicated. If the district does not propose to
5-6 provide one or more of the specified facilities and services, the
5-7 appropriate purpose may be eliminated. If the district has not yet
5-8 levied taxes, a statement of the district's most recent projected
5-9 rate of [debt service] tax is to be placed in the appropriate
5-10 space. If the district does not have approval from the commission
5-11 to adopt and impose a standby fee, the second paragraph of the
5-12 notice may be deleted. For the purposes of the notice form
5-13 required to be given to the prospective purchaser prior to
5-14 execution of a binding contract of sale and purchase, a seller and
5-15 any agent, representative, or person acting on the seller's behalf
5-16 may modify the notice by substitution of the words 'January 1,
5-17 ______' for the words 'this date' and place the correct calendar
5-18 year in the appropriate space."
5-19 (c) The prescribed notice for districts located in whole or
5-20 in part within the corporate boundaries of a municipality shall be
5-21 executed by the seller and shall read as follows:
5-22 "The real property, described below, that you are about to
5-23 purchase is located in the ___________________ District. The
5-24 district has taxing authority separate from any other taxing
5-25 authority and may, subject to voter approval, issue an unlimited
5-26 amount of bonds and levy an unlimited rate of tax in payment of
5-27 such bonds. As of this date, the rate of taxes levied by the
6-1 district on real property located in the district is $__________ on
6-2 each $100 of assessed valuation. If the district has not yet
6-3 levied taxes, the most recent projected rate of tax, as of this
6-4 date, is $__________ on each $100 of assessed valuation. The total
6-5 amount of bonds, excluding refunding bonds and any bonds or any
6-6 portion of bonds issued that are payable solely from revenues
6-7 received or expected to be received under a contract with a
6-8 governmental entity, approved by the voters and which have been or
6-9 may, at this date, be issued is $__________, and the aggregate
6-10 initial principal amounts of all bonds issued for one or more of
6-11 the specified facilities of the district and payable in whole or in
6-12 part from property taxes is $__________.
6-13 "The district has the authority to adopt and impose a standby
6-14 fee on property in the district that has water, sanitary sewer, or
6-15 drainage facilities and services available but not connected and
6-16 which does not have a house, building, or other improvement located
6-17 thereon and does not substantially utilize the utility capacity
6-18 available to the property. The district may exercise the authority
6-19 without holding an election on the matter. As of this date, the
6-20 most recent amount of the standby fee is $__________. An unpaid
6-21 standby fee is a personal obligation of the person that owned the
6-22 property at the time of imposition and is secured by a lien on the
6-23 property. Any person may request a certificate from the district
6-24 stating the amount, if any, of unpaid standby fees on a tract of
6-25 property in the district.
6-26 "The district is located in whole or in part within the
6-27 corporate boundaries of the City of ___________. The taxpayers of
7-1 the district are subject to the taxes imposed by the municipality
7-2 and by the district until the district is dissolved. By law, a
7-3 district located within the corporate boundaries of a municipality
7-4 may be dissolved by municipal ordinance without the consent of the
7-5 district or the voters of the district.
7-6 "The purpose of this district is to provide water, sewer,
7-7 drainage, or flood control facilities and services within the
7-8 district through the issuance of bonds payable in whole or in part
7-9 from property taxes. The cost of these utility facilities is not
7-10 included in the purchase price of your property, and these utility
7-11 facilities are owned or to be owned by the district. The legal
7-12 description of the property you are acquiring is as follows:
7-13 -------------------------------------------------------------------
7-14 ______________________(Date)
7-15 ____________________________
7-16 Signature of Seller
7-17 PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORM
7-18 IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME. THE DISTRICT
7-19 ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF SEPTEMBER
7-20 THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE
7-21 TAX RATES ARE APPROVED BY THE DISTRICT. PURCHASER IS ADVISED TO
7-22 CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR
7-23 PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM.
7-24 "The undersigned purchaser hereby acknowledges receipt of the
7-25 foregoing notice at or prior to execution of a binding contract for
8-1 the purchase of the real property described in such notice or at
8-2 closing of purchase of the real property.
8-3 -------------------------------------------------------------------
8-4 ______________________(Date)
8-5 ____________________________
8-6 Signature of Purchaser
8-7 "(Note: Correct district name, tax rate, bond amounts, and
8-8 legal description are to be placed in the appropriate space.)
8-9 Except for notices included as an addendum or paragraph of a
8-10 purchase contract, the notice shall be executed by the seller and
8-11 purchaser, as indicated. If the district does not propose to
8-12 provide one or more of the specified facilities and services, the
8-13 appropriate purpose may be eliminated. If the district has not yet
8-14 levied taxes, a statement of the district's most recent projected
8-15 rate of tax is to be placed in the appropriate space. If the
8-16 district does not have approval from the commission to adopt and
8-17 impose a standby fee, the second paragraph of the notice may be
8-18 deleted. For the purposes of the notice form required to be given
8-19 to the prospective purchaser prior to execution of a binding
8-20 contract of sale and purchase, a seller and any agent,
8-21 representative, or person acting on the seller's behalf may modify
8-22 the notice by substitution of the words 'January 1,______' for the
8-23 words 'this date' and place the correct calendar year in the
8-24 appropriate space."
8-25 (d) The prescribed notice for districts that are not located
9-1 in whole or in part within the corporate boundaries of a
9-2 municipality or the extraterritorial jurisdiction of one or more
9-3 home-rule municipalities shall be executed by the seller and shall
9-4 read as follows:
9-5 "The real property, described below, that you are about to
9-6 purchase is located in the ___________________ District. The
9-7 district has taxing authority separate from any other taxing
9-8 authority and may, subject to voter approval, issue an unlimited
9-9 amount of bonds and levy an unlimited rate of tax in payment of
9-10 such bonds. As of this date, the rate of taxes levied by the
9-11 district on real property located in the district is $__________ on
9-12 each $100 of assessed valuation. If the district has not yet
9-13 levied taxes, the most recent projected rate of tax, as of this
9-14 date, is $__________ on each $100 of assessed valuation. The total
9-15 amount of bonds, excluding refunding bonds and any bonds or any
9-16 portion of bonds issued that are payable solely from revenues
9-17 received or expected to be received under a contract with a
9-18 governmental entity, approved by the voters and which have been or
9-19 may, at this date, be issued is $__________, and the aggregate
9-20 initial principal amounts of all bonds issued for one or more of
9-21 the specified facilities of the district and payable in whole or in
9-22 part from property taxes is $__________.
9-23 "The district has the authority to adopt and impose a standby
9-24 fee on property in the district that has water, sanitary sewer, or
9-25 drainage facilities and services available but not connected and
9-26 which does not have a house, building, or other improvement located
9-27 thereon and does not substantially utilize the utility capacity
10-1 available to the property. The district may exercise the authority
10-2 without holding an election on the matter. As of this date, the
10-3 most recent amount of the standby fee is $__________. An unpaid
10-4 standby fee is a personal obligation of the person that owned the
10-5 property at the time of imposition and is secured by a lien on the
10-6 property. Any person may request a certificate from the district
10-7 stating the amount, if any, of unpaid standby fees on a tract of
10-8 property in the district.
10-9 "The purpose of this district is to provide water, sewer,
10-10 drainage, or flood control facilities and services within the
10-11 district through the issuance of bonds payable in whole or in part
10-12 from property taxes. The cost of these utility facilities is not
10-13 included in the purchase price of your property, and these utility
10-14 facilities are owned or to be owned by the district. The legal
10-15 description of the property you are acquiring is as follows:
10-16 -------------------------------------------------------------------
10-17 _____________________(Date)
10-18 ___________________________
10-19 Signature of Seller
10-20 PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORM
10-21 IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME. THE DISTRICT
10-22 ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF SEPTEMBER
10-23 THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE
10-24 TAX RATES ARE APPROVED BY THE DISTRICT. PURCHASER IS ADVISED TO
10-25 CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR
10-26 PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM.
11-1 "The undersigned purchaser hereby acknowledges receipt of the
11-2 foregoing notice at or prior to execution of a binding contract for
11-3 the purchase of the real property described in such notice or at
11-4 closing of purchase of the real property.
11-5 -----------------------------------------------------------------
11-6 ________________________(Date)
11-7 ______________________________
11-8 Signature of Purchaser
11-9 "(Note: Correct district name, tax rate, bond amounts, and
11-10 legal description are to be placed in the appropriate space.)
11-11 Except for notices included as an addendum or paragraph of a
11-12 purchase contract, the notice shall be executed by the seller and
11-13 purchaser, as indicated. If the district does not propose to
11-14 provide one or more of the specified facilities and services, the
11-15 appropriate purpose may be eliminated. If the district has not yet
11-16 levied taxes, a statement of the district's most recent projected
11-17 rate of tax is to be placed in the appropriate space. If the
11-18 district does not have approval from the commission to adopt and
11-19 impose a standby fee, the second paragraph of the notice may be
11-20 deleted. For the purposes of the notice form required to be given
11-21 to the prospective purchaser prior to execution of a binding
11-22 contract of sale and purchase, a seller and any agent,
11-23 representative, or person acting on the seller's behalf may modify
11-24 the notice by substitution of the words 'January 1, ______' for the
11-25 words 'this date' and place the correct calendar year in the
12-1 appropriate space."
12-2 (e) If the law relating to annexation or district
12-3 dissolution is amended and causes inaccuracies in the content of
12-4 the notices prescribed by this section, the district shall revise
12-5 the content of the notices to accurately reflect current law.
12-6 (f) [(c)] The notice required by this section shall be given
12-7 to the prospective purchaser prior to execution of a binding
12-8 contract of sale and purchase either separately or as an addendum
12-9 or paragraph of a purchase contract. In the event a contract of
12-10 purchase and sale is entered into without the seller providing the
12-11 notice required by this subsection, the purchaser shall be entitled
12-12 to terminate the contract. If, however, the seller furnishes the
12-13 required notice at or prior to closing the purchase and sale
12-14 contract and the purchaser elects to close even though such notice
12-15 was not timely furnished prior to execution of the contract, it
12-16 shall be conclusively presumed that the purchaser has waived all
12-17 rights to terminate the contract and recover damages or other
12-18 remedies or rights under the provisions of this section.
12-19 Notwithstanding any provision of this subchapter to the contrary,
12-20 all sellers, title companies, real estate brokers, and examining
12-21 attorneys, and any agent, representative, or person acting on their
12-22 behalf, shall not be liable for damages under the provisions of
12-23 either Subsection (o) [(l)] or (p) [(m)] or liable for any other
12-24 damages to any person for:
12-25 (1) failing [failure] to provide the notice required
12-26 by this section to a purchaser prior to execution of a binding
12-27 contract of a purchase and sale or at or prior to the closing of
13-1 the purchase and sale contract when the district has not filed the
13-2 information form and map or plat as required under Section 49.455;
13-3 or
13-4 (2) unintentionally providing a notice prescribed by
13-5 this section that is not the correct notice under the circumstances
13-6 prior to execution of a binding contract of purchase and sale or at
13-7 or prior to the closing of the purchase and sale contract.
13-8 (g) [(d)] The purchaser shall sign the notice or purchase
13-9 contract including such notice to evidence the receipt of notice.
13-10 (h) [(e)] At the closing of purchase and sale, a separate
13-11 copy of such notice with current information shall be executed by
13-12 the seller and purchaser, acknowledged, and thereafter recorded in
13-13 the deed records of the county in which the property is located.
13-14 For the purposes of this section, all sellers, title companies,
13-15 real estate brokers, and examining attorneys, and any agent,
13-16 representative, or person acting on their behalf, shall be entitled
13-17 to rely on the accuracy of the information form and map or plat as
13-18 last filed by each district under Section 49.455 or the information
13-19 contained in or shown on the notice form issued by the district
13-20 under Section 49.453 in completing the notice form to be executed
13-21 by the seller and purchaser at the closing of purchase and sale.
13-22 Any information taken from the information form or map or plat as
13-23 last filed by each district and the information contained in or
13-24 shown on the notice form issued by the district under Section
13-25 49.453 shall be, for purposes of this section, conclusively
13-26 presumed as a matter of law to be correct. All subsequent sellers,
13-27 purchasers, title insurance companies, real estate brokers,
14-1 examining attorneys, and lienholders shall be entitled to rely upon
14-2 the information form and map or plat filed by the district or the
14-3 notice form issued by the district under Section 49.453.
14-4 (i) [(f)] For the purposes of this section, an executory
14-5 contract of purchase and sale having a performance period of more
14-6 than six months shall be considered a sale under Subsection (a).
14-7 (j) [(g)] For the purposes of the notice form to be given to
14-8 the prospective purchaser prior to execution of a binding contract
14-9 of sale and purchase, a seller and any agent, representative, or
14-10 person acting in the seller's behalf may modify the notice by
14-11 substitution of the words "January 1, ____" for the words "this
14-12 date" and place the correct calendar year in the appropriate space.
14-13 All sellers, and all persons completing the prescribed notice in
14-14 the sellers' behalf, shall be entitled to rely on the information
14-15 contained in or shown on the information form and map or plat filed
14-16 of record by the district under Section 49.455 in completing the
14-17 prescribed form to be given to the prospective purchaser prior to
14-18 execution of a binding contract of sale and purchase. Except as
14-19 otherwise provided in Subsection (h) [(e)], any information taken
14-20 from the information form or map or plat filed of record by the
14-21 district in effect as of January 1 of each year shall be, for
14-22 purposes of the notice to be given to the prospective purchaser
14-23 prior to execution of a binding contract of sale and purchase,
14-24 conclusively presumed as a matter of law to be correct for the
14-25 period January 1 through December 31 of such calendar year. A
14-26 seller and any persons completing the prescribed notice in the
14-27 seller's behalf may provide more recent information, if available,
15-1 than the information contained in or shown on the information form
15-2 and map or plat filed of record by the district under Section
15-3 49.455 in effect as of January 1 of each year in completing the
15-4 prescribed form to be given to the purchaser prior to execution of
15-5 a binding contract of sale and purchase. Nothing contained in the
15-6 preceding sentence shall be construed to create an affirmative duty
15-7 on the part of a seller or any persons completing the prescribed
15-8 notice in the seller's behalf to provide more recent information
15-9 than the information taken from the information form and map or
15-10 plat filed of record by the district as of January 1 of each year
15-11 in completing the prescribed notice to be given to the purchaser
15-12 prior to execution of a binding contract of sale and purchase. All
15-13 subsequent sellers, purchasers, title insurance companies, real
15-14 estate brokers, examining attorneys, and lienholders shall be
15-15 entitled to rely upon the information form and map or plat filed by
15-16 the district.
15-17 (k) [(h)] If such notice is given at closing as provided in
15-18 Subsection (h) [(e)], a purchaser, or the purchaser's heirs,
15-19 successors, or assigns, shall not be entitled to maintain any
15-20 action for damages or maintain any action against a seller, title
15-21 insurance company, real estate brokers, or lienholder, or any
15-22 agent, representative, or person acting in their behalf, by reason
15-23 of use by the seller of the information filed for record by the
15-24 district or reliance by the seller on the filed plat and filed
15-25 legal description of the district in determining whether the
15-26 property to be sold and purchased is within the district. No
15-27 action may be maintained against any title company for failure to
16-1 disclose the inclusion of the described real property within a
16-2 district when the district has not filed for record the information
16-3 form, map, or plat with the clerk of the county or counties in
16-4 which the district is located.
16-5 (l) [(i)] Any purchaser who purchases any real property in a
16-6 district and who thereafter sells or conveys the same shall on
16-7 closing of such subsequent sale be conclusively considered as
16-8 having waived any prior right to damages under this section.
16-9 (m) [(j)] It is the express intent of this section that all
16-10 sellers, title insurance companies, examining attorneys, vendors of
16-11 property and tax information, real estate brokers, and lienholders,
16-12 and any agent, representative, or person acting on their behalf,
16-13 shall be entitled to rely on the accuracy of the information form
16-14 and map or plat as last filed by each district or the information
16-15 contained in or shown on the notice form issued by the district
16-16 under Section 49.453, or for the purposes of the notice to be given
16-17 the purchaser prior to execution of a binding contract of sale and
16-18 purchase the information contained in or shown on the information
16-19 form and map or plat filed of record by the district in effect as
16-20 of January 1 of each year for the period January 1 through December
16-21 31 of such calendar year.
16-22 (n) [(k)] Except as otherwise provided in Subsection (f)
16-23 [(c)], if any sale or conveyance of real property within a district
16-24 is not made in compliance with the provisions of this section, the
16-25 purchaser may institute a suit for damages under the provisions of
16-26 either Subsection (o) [(l)] or (p) [(m)].
16-27 (o) [(l)] A purchaser of real property covered by the
17-1 provisions of this section, if the sale or conveyance of the
17-2 property is not made in compliance with this section, may institute
17-3 a suit for damages in the amount of all costs relative to the
17-4 purchase of the property plus interest and reasonable attorney's
17-5 fees. The suit for damages may be instituted jointly or severally
17-6 against the person, firm, corporation, partnership, organization,
17-7 business trust, estate, trust, association, or other legal entity
17-8 that sold or conveyed the property to the purchaser. Following the
17-9 recovery of damages under this subsection, the amount of the
17-10 damages shall first be paid to satisfy all unpaid obligations on
17-11 each outstanding lien or liens on the property and the remainder of
17-12 the damage amount shall be paid to the purchaser. On payment of
17-13 all damages respectively to the lienholders and purchaser, the
17-14 purchaser shall reconvey the property to the seller.
17-15 (p) [(m)] A purchaser of real property covered by the
17-16 provisions of this section, if the sale or conveyance of the
17-17 property is not made in compliance with this section, may institute
17-18 a suit for damages in an amount not to exceed $5,000, plus
17-19 reasonable attorney's fees.
17-20 (q) [(n)] A purchaser is not entitled to recover damages
17-21 under both Subsections (o) [(l)] and (p) [(m)], and entry of a
17-22 final decision awarding damages to the purchaser under either
17-23 Subsection (o) [(l)] or (p) [(m)] shall preclude the purchaser from
17-24 recovering damages under the other subsection. Notwithstanding any
17-25 part or provision of the general or special laws or the common law
17-26 of the state to the contrary, the relief provided under Subsections
17-27 (o) [(l)] and (p) [(m)] shall be the exclusive remedies for a
18-1 purchaser aggrieved by the seller's failure to comply with the
18-2 provisions of this section. Any action for damages shall not,
18-3 however, apply to, affect, alter, or impair the validity of any
18-4 existing vendor's lien, mechanic's lien, or deed of trust lien on
18-5 the property.
18-6 (r) [(o)] A suit for damages under the provisions of this
18-7 section must be brought within 90 days after the purchaser receives
18-8 the first district tax notice or within four years after the
18-9 property is sold or conveyed to the purchaser, whichever time
18-10 occurs first, or the purchaser loses the right to seek damages
18-11 under this section.
18-12 (s) [(p)] Notwithstanding any provisions of this subchapter
18-13 to the contrary, a purchaser may not recover damages of any kind
18-14 under this section if that person:
18-15 (1) purchases an equity in real property and in
18-16 conjunction with the purchase assumes any liens, whether purchase
18-17 money or otherwise; and
18-18 (2) does not require proof of title by abstract, title
18-19 policy, or any other proof of title.
18-20 SECTION 2. (a) This Act takes effect September 1, 1999.
18-21 (b) The change in law made by this Act applies only to a
18-22 transfer of property that occurs on or after the effective date of
18-23 this Act. For purposes of this section, a transfer of property
18-24 occurs before the effective date of this Act if the contract of
18-25 sale and purchase binding the purchaser to purchase the property is
18-26 executed before that date.
18-27 (c) Property transferred before the effective date of this
19-1 Act is covered by the law in effect when the property was
19-2 transferred, and the former law is continued in effect for that
19-3 purpose.
19-4 SECTION 3. The importance of this legislation and the
19-5 crowded condition of the calendars in both houses create an
19-6 emergency and an imperative public necessity that the
19-7 constitutional rule requiring bills to be read on three several
19-8 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 641 was passed by the House on May 6,
1999, by a non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 641 was passed by the Senate on May
26, 1999, by the following vote: Yeas 30, Nays 0.
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Secretary of the Senate
APPROVED: _____________________
Date
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Governor