1-1 By: Howard (Senate Sponsor - Lindsay) H.B. No. 641
1-2 (In the Senate - Received from the House May 7, 1999;
1-3 May 10, 1999, read first time and referred to Committee on
1-4 Intergovernmental Relations; May 14, 1999, reported favorably by
1-5 the following vote: Yeas 4, Nays 0; May 14, 1999, sent to
1-6 printer.)
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to requiring a municipal utility district to disclose to
1-10 the purchaser of residential real property whether the property is
1-11 located in a municipality's corporate boundaries or
1-12 extraterritorial jurisdiction.
1-13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14 SECTION 1. Section 49.452, Water Code, is amended to read as
1-15 follows:
1-16 Sec. 49.452. NOTICE TO PURCHASERS. (a)(1) Any person who
1-17 proposes to sell or convey real property located in a district
1-18 created under this title or by a special Act of the legislature
1-19 that is providing or proposing to provide, as the district's
1-20 principal function, water, sanitary sewer, drainage, and flood
1-21 control or protection facilities or services, or any of these
1-22 facilities or services that have been financed or are proposed to
1-23 be financed with bonds of the district payable in whole or part
1-24 from taxes of the district, or by imposition of a standby fee, if
1-25 any, to household or commercial users, other than agricultural,
1-26 irrigation, or industrial users, and which district includes less
1-27 than all the territory in at least one county and which, if located
1-28 within the corporate area of a city, includes less than 75 percent
1-29 of the incorporated area of the city or which is located outside
1-30 the corporate area of a city in whole or in substantial part, must
1-31 first give to the purchaser the written notice provided in this
1-32 section.
1-33 (2) The provisions of this section shall not be
1-34 applicable to:
1-35 (A) transfers of title under any type of lien
1-36 foreclosure;
1-37 (B) transfers of title by deed in cancellation
1-38 of indebtedness secured by a lien upon the property conveyed; [or]
1-39 (C) transfers of title by reason of a will or
1-40 probate proceedings; or
1-41 (D) transfers of title to a governmental entity.
1-42 (b) The prescribed notice for [all] districts located in
1-43 whole or in part in the extraterritorial jurisdiction of one or
1-44 more home-rule municipalities and not located within the corporate
1-45 boundaries of a municipality shall be executed by the seller and
1-46 shall read as follows:
1-47 "The real property, described below, that you are about to
1-48 purchase is located in the ___________________ District. The
1-49 district has taxing authority separate from any other taxing
1-50 authority and may, subject to voter approval, issue an unlimited
1-51 amount of bonds and levy an unlimited rate of tax in payment of
1-52 such bonds. As of this date, the rate of taxes levied by the
1-53 district on real property located in the district is $__________ on
1-54 each $100 of assessed valuation. If the district has not yet
1-55 levied taxes, the most recent projected rate of [debt service] tax,
1-56 as of this date, is $__________ on each $100 of assessed valuation.
1-57 The total amount of bonds, excluding refunding bonds and any bonds
1-58 or any portion of bonds issued that are payable solely from
1-59 revenues received or expected to be received under a contract with
1-60 a governmental entity, approved by the voters and which have been
1-61 or may, at this date, be issued is $__________, and the aggregate
1-62 initial principal amounts of all bonds issued for one or more of
1-63 the specified facilities of the district and payable in whole or in
1-64 part from property taxes is $__________.
2-1 "The district has the authority to adopt and impose a standby
2-2 fee on property in the district that has water, sanitary sewer, or
2-3 drainage facilities and services available but not connected and
2-4 which does not have a house, building, or other improvement located
2-5 thereon and does not substantially utilize the utility capacity
2-6 available to the property. The district may exercise the
2-7 authority without holding an election on the matter. As of this
2-8 date, the most recent amount of the standby fee is $__________. An
2-9 unpaid standby fee is a personal obligation of the person that
2-10 owned the property at the time of imposition and is secured by a
2-11 lien on the property. Any person may request a certificate from
2-12 the district stating the amount, if any, of unpaid standby fees on
2-13 a tract of property in the district.
2-14 "The district is located in whole or in part in the
2-15 extraterritorial jurisdiction of the City of _______________. By
2-16 law, a district located in the extraterritorial jurisdiction of a
2-17 municipality may be annexed without the consent of the district or
2-18 the voters of the district. When a district is annexed, the
2-19 district is dissolved.
2-20 "The purpose of this district is to provide water, sewer,
2-21 drainage, or flood control facilities and services within the
2-22 district through the issuance of bonds payable in whole or in part
2-23 from property taxes. The cost of these utility facilities is not
2-24 included in the purchase price of your property, and these utility
2-25 facilities are owned or to be owned by the district. The legal
2-26 description of the property you are acquiring is as follows:
2-27 -------------------------------------------------------------------
2-28 ______________________ (Date)
2-29 _____________________________
2-30 Signature of Seller
2-31 PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORM
2-32 IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME. THE DISTRICT
2-33 ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF SEPTEMBER
2-34 THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE
2-35 TAX RATES ARE APPROVED BY THE DISTRICT. PURCHASER IS ADVISED TO
2-36 CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR
2-37 PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM.
2-38 "The undersigned purchaser hereby acknowledges receipt of the
2-39 foregoing notice at or prior to execution of a binding contract for
2-40 the purchase of the real property described in such notice or at
2-41 closing of purchase of the real property.
2-42 -------------------------------------------------------------------
2-43 ______________________ (Date)
2-44 _____________________________
2-45 Signature of Purchaser
2-46 "(Note: Correct district name, tax rate, bond amounts, and
2-47 legal description are to be placed in the appropriate space.)
2-48 Except for notices included as an addendum or paragraph of a
2-49 purchase contract, the notice shall be executed by the seller and
2-50 purchaser, as indicated. If the district does not propose to
2-51 provide one or more of the specified facilities and services, the
2-52 appropriate purpose may be eliminated. If the district has not yet
2-53 levied taxes, a statement of the district's most recent projected
2-54 rate of [debt service] tax is to be placed in the appropriate
2-55 space. If the district does not have approval from the commission
2-56 to adopt and impose a standby fee, the second paragraph of the
2-57 notice may be deleted. For the purposes of the notice form
2-58 required to be given to the prospective purchaser prior to
2-59 execution of a binding contract of sale and purchase, a seller and
2-60 any agent, representative, or person acting on the seller's behalf
2-61 may modify the notice by substitution of the words 'January 1,
2-62 ______' for the words 'this date' and place the correct calendar
2-63 year in the appropriate space."
2-64 (c) The prescribed notice for districts located in whole or
2-65 in part within the corporate boundaries of a municipality shall be
2-66 executed by the seller and shall read as follows:
2-67 "The real property, described below, that you are about to
2-68 purchase is located in the ___________________ District. The
2-69 district has taxing authority separate from any other taxing
3-1 authority and may, subject to voter approval, issue an unlimited
3-2 amount of bonds and levy an unlimited rate of tax in payment of
3-3 such bonds. As of this date, the rate of taxes levied by the
3-4 district on real property located in the district is $__________ on
3-5 each $100 of assessed valuation. If the district has not yet
3-6 levied taxes, the most recent projected rate of tax, as of this
3-7 date, is $__________ on each $100 of assessed valuation. The total
3-8 amount of bonds, excluding refunding bonds and any bonds or any
3-9 portion of bonds issued that are payable solely from revenues
3-10 received or expected to be received under a contract with a
3-11 governmental entity, approved by the voters and which have been or
3-12 may, at this date, be issued is $__________, and the aggregate
3-13 initial principal amounts of all bonds issued for one or more of
3-14 the specified facilities of the district and payable in whole or in
3-15 part from property taxes is $__________.
3-16 "The district has the authority to adopt and impose a standby
3-17 fee on property in the district that has water, sanitary sewer, or
3-18 drainage facilities and services available but not connected and
3-19 which does not have a house, building, or other improvement located
3-20 thereon and does not substantially utilize the utility capacity
3-21 available to the property. The district may exercise the authority
3-22 without holding an election on the matter. As of this date, the
3-23 most recent amount of the standby fee is $__________. An unpaid
3-24 standby fee is a personal obligation of the person that owned the
3-25 property at the time of imposition and is secured by a lien on the
3-26 property. Any person may request a certificate from the district
3-27 stating the amount, if any, of unpaid standby fees on a tract of
3-28 property in the district.
3-29 "The district is located in whole or in part within the
3-30 corporate boundaries of the City of ___________. The taxpayers of
3-31 the district are subject to the taxes imposed by the municipality
3-32 and by the district until the district is dissolved. By law, a
3-33 district located within the corporate boundaries of a municipality
3-34 may be dissolved by municipal ordinance without the consent of the
3-35 district or the voters of the district.
3-36 "The purpose of this district is to provide water, sewer,
3-37 drainage, or flood control facilities and services within the
3-38 district through the issuance of bonds payable in whole or in part
3-39 from property taxes. The cost of these utility facilities is not
3-40 included in the purchase price of your property, and these utility
3-41 facilities are owned or to be owned by the district. The legal
3-42 description of the property you are acquiring is as follows:
3-43 -------------------------------------------------------------------
3-44 ______________________(Date)
3-45 ____________________________
3-46 Signature of Seller
3-47 PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORM
3-48 IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME. THE DISTRICT
3-49 ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF SEPTEMBER
3-50 THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE
3-51 TAX RATES ARE APPROVED BY THE DISTRICT. PURCHASER IS ADVISED TO
3-52 CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR
3-53 PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM.
3-54 "The undersigned purchaser hereby acknowledges receipt of the
3-55 foregoing notice at or prior to execution of a binding contract for
3-56 the purchase of the real property described in such notice or at
3-57 closing of purchase of the real property.
3-58 -------------------------------------------------------------------
3-59 ______________________(Date)
3-60 ____________________________
3-61 Signature of Purchaser
3-62 "(Note: Correct district name, tax rate, bond amounts, and
3-63 legal description are to be placed in the appropriate space.)
3-64 Except for notices included as an addendum or paragraph of a
3-65 purchase contract, the notice shall be executed by the seller and
3-66 purchaser, as indicated. If the district does not propose to
3-67 provide one or more of the specified facilities and services, the
3-68 appropriate purpose may be eliminated. If the district has not yet
3-69 levied taxes, a statement of the district's most recent projected
4-1 rate of tax is to be placed in the appropriate space. If the
4-2 district does not have approval from the commission to adopt and
4-3 impose a standby fee, the second paragraph of the notice may be
4-4 deleted. For the purposes of the notice form required to be given
4-5 to the prospective purchaser prior to execution of a binding
4-6 contract of sale and purchase, a seller and any agent,
4-7 representative, or person acting on the seller's behalf may modify
4-8 the notice by substitution of the words 'January 1,______' for the
4-9 words 'this date' and place the correct calendar year in the
4-10 appropriate space."
4-11 (d) The prescribed notice for districts that are not located
4-12 in whole or in part within the corporate boundaries of a
4-13 municipality or the extraterritorial jurisdiction of one or more
4-14 home-rule municipalities shall be executed by the seller and shall
4-15 read as follows:
4-16 "The real property, described below, that you are about to
4-17 purchase is located in the ___________________ District. The
4-18 district has taxing authority separate from any other taxing
4-19 authority and may, subject to voter approval, issue an unlimited
4-20 amount of bonds and levy an unlimited rate of tax in payment of
4-21 such bonds. As of this date, the rate of taxes levied by the
4-22 district on real property located in the district is $__________ on
4-23 each $100 of assessed valuation. If the district has not yet
4-24 levied taxes, the most recent projected rate of tax, as of this
4-25 date, is $__________ on each $100 of assessed valuation. The total
4-26 amount of bonds, excluding refunding bonds and any bonds or any
4-27 portion of bonds issued that are payable solely from revenues
4-28 received or expected to be received under a contract with a
4-29 governmental entity, approved by the voters and which have been or
4-30 may, at this date, be issued is $__________, and the aggregate
4-31 initial principal amounts of all bonds issued for one or more of
4-32 the specified facilities of the district and payable in whole or in
4-33 part from property taxes is $__________.
4-34 "The district has the authority to adopt and impose a standby
4-35 fee on property in the district that has water, sanitary sewer, or
4-36 drainage facilities and services available but not connected and
4-37 which does not have a house, building, or other improvement located
4-38 thereon and does not substantially utilize the utility capacity
4-39 available to the property. The district may exercise the authority
4-40 without holding an election on the matter. As of this date, the
4-41 most recent amount of the standby fee is $__________. An unpaid
4-42 standby fee is a personal obligation of the person that owned the
4-43 property at the time of imposition and is secured by a lien on the
4-44 property. Any person may request a certificate from the district
4-45 stating the amount, if any, of unpaid standby fees on a tract of
4-46 property in the district.
4-47 "The purpose of this district is to provide water, sewer,
4-48 drainage, or flood control facilities and services within the
4-49 district through the issuance of bonds payable in whole or in part
4-50 from property taxes. The cost of these utility facilities is not
4-51 included in the purchase price of your property, and these utility
4-52 facilities are owned or to be owned by the district. The legal
4-53 description of the property you are acquiring is as follows:
4-54 -------------------------------------------------------------------
4-55 _____________________(Date)
4-56 ___________________________
4-57 Signature of Seller
4-58 PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORM
4-59 IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME. THE DISTRICT
4-60 ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF SEPTEMBER
4-61 THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE
4-62 TAX RATES ARE APPROVED BY THE DISTRICT. PURCHASER IS ADVISED TO
4-63 CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR
4-64 PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM.
4-65 "The undersigned purchaser hereby acknowledges receipt of the
4-66 foregoing notice at or prior to execution of a binding contract for
4-67 the purchase of the real property described in such notice or at
4-68 closing of purchase of the real property.
4-69 -----------------------------------------------------------------
5-1 ________________________(Date)
5-2 ______________________________
5-3 Signature of Purchaser
5-4 "(Note: Correct district name, tax rate, bond amounts, and
5-5 legal description are to be placed in the appropriate space.)
5-6 Except for notices included as an addendum or paragraph of a
5-7 purchase contract, the notice shall be executed by the seller and
5-8 purchaser, as indicated. If the district does not propose to
5-9 provide one or more of the specified facilities and services, the
5-10 appropriate purpose may be eliminated. If the district has not yet
5-11 levied taxes, a statement of the district's most recent projected
5-12 rate of tax is to be placed in the appropriate space. If the
5-13 district does not have approval from the commission to adopt and
5-14 impose a standby fee, the second paragraph of the notice may be
5-15 deleted. For the purposes of the notice form required to be given
5-16 to the prospective purchaser prior to execution of a binding
5-17 contract of sale and purchase, a seller and any agent,
5-18 representative, or person acting on the seller's behalf may modify
5-19 the notice by substitution of the words 'January 1, ______' for the
5-20 words 'this date' and place the correct calendar year in the
5-21 appropriate space."
5-22 (e) If the law relating to annexation or district
5-23 dissolution is amended and causes inaccuracies in the content of
5-24 the notices prescribed by this section, the district shall revise
5-25 the content of the notices to accurately reflect current law.
5-26 (f) [(c)] The notice required by this section shall be given
5-27 to the prospective purchaser prior to execution of a binding
5-28 contract of sale and purchase either separately or as an addendum
5-29 or paragraph of a purchase contract. In the event a contract of
5-30 purchase and sale is entered into without the seller providing the
5-31 notice required by this subsection, the purchaser shall be entitled
5-32 to terminate the contract. If, however, the seller furnishes the
5-33 required notice at or prior to closing the purchase and sale
5-34 contract and the purchaser elects to close even though such notice
5-35 was not timely furnished prior to execution of the contract, it
5-36 shall be conclusively presumed that the purchaser has waived all
5-37 rights to terminate the contract and recover damages or other
5-38 remedies or rights under the provisions of this section.
5-39 Notwithstanding any provision of this subchapter to the contrary,
5-40 all sellers, title companies, real estate brokers, and examining
5-41 attorneys, and any agent, representative, or person acting on their
5-42 behalf, shall not be liable for damages under the provisions of
5-43 either Subsection (o) [(l)] or (p) [(m)] or liable for any other
5-44 damages to any person for:
5-45 (1) failing [failure] to provide the notice required
5-46 by this section to a purchaser prior to execution of a binding
5-47 contract of a purchase and sale or at or prior to the closing of
5-48 the purchase and sale contract when the district has not filed the
5-49 information form and map or plat as required under Section 49.455;
5-50 or
5-51 (2) unintentionally providing a notice prescribed by
5-52 this section that is not the correct notice under the circumstances
5-53 prior to execution of a binding contract of purchase and sale or at
5-54 or prior to the closing of the purchase and sale contract.
5-55 (g) [(d)] The purchaser shall sign the notice or purchase
5-56 contract including such notice to evidence the receipt of notice.
5-57 (h) [(e)] At the closing of purchase and sale, a separate
5-58 copy of such notice with current information shall be executed by
5-59 the seller and purchaser, acknowledged, and thereafter recorded in
5-60 the deed records of the county in which the property is located.
5-61 For the purposes of this section, all sellers, title companies,
5-62 real estate brokers, and examining attorneys, and any agent,
5-63 representative, or person acting on their behalf, shall be entitled
5-64 to rely on the accuracy of the information form and map or plat as
5-65 last filed by each district under Section 49.455 or the information
5-66 contained in or shown on the notice form issued by the district
5-67 under Section 49.453 in completing the notice form to be executed
5-68 by the seller and purchaser at the closing of purchase and sale.
5-69 Any information taken from the information form or map or plat as
6-1 last filed by each district and the information contained in or
6-2 shown on the notice form issued by the district under Section
6-3 49.453 shall be, for purposes of this section, conclusively
6-4 presumed as a matter of law to be correct. All subsequent sellers,
6-5 purchasers, title insurance companies, real estate brokers,
6-6 examining attorneys, and lienholders shall be entitled to rely upon
6-7 the information form and map or plat filed by the district or the
6-8 notice form issued by the district under Section 49.453.
6-9 (i) [(f)] For the purposes of this section, an executory
6-10 contract of purchase and sale having a performance period of more
6-11 than six months shall be considered a sale under Subsection (a).
6-12 (j) [(g)] For the purposes of the notice form to be given to
6-13 the prospective purchaser prior to execution of a binding contract
6-14 of sale and purchase, a seller and any agent, representative, or
6-15 person acting in the seller's behalf may modify the notice by
6-16 substitution of the words "January 1, ____" for the words "this
6-17 date" and place the correct calendar year in the appropriate space.
6-18 All sellers, and all persons completing the prescribed notice in
6-19 the sellers' behalf, shall be entitled to rely on the information
6-20 contained in or shown on the information form and map or plat filed
6-21 of record by the district under Section 49.455 in completing the
6-22 prescribed form to be given to the prospective purchaser prior to
6-23 execution of a binding contract of sale and purchase. Except as
6-24 otherwise provided in Subsection (h) [(e)], any information taken
6-25 from the information form or map or plat filed of record by the
6-26 district in effect as of January 1 of each year shall be, for
6-27 purposes of the notice to be given to the prospective purchaser
6-28 prior to execution of a binding contract of sale and purchase,
6-29 conclusively presumed as a matter of law to be correct for the
6-30 period January 1 through December 31 of such calendar year. A
6-31 seller and any persons completing the prescribed notice in the
6-32 seller's behalf may provide more recent information, if available,
6-33 than the information contained in or shown on the information form
6-34 and map or plat filed of record by the district under Section
6-35 49.455 in effect as of January 1 of each year in completing the
6-36 prescribed form to be given to the purchaser prior to execution of
6-37 a binding contract of sale and purchase. Nothing contained in the
6-38 preceding sentence shall be construed to create an affirmative duty
6-39 on the part of a seller or any persons completing the prescribed
6-40 notice in the seller's behalf to provide more recent information
6-41 than the information taken from the information form and map or
6-42 plat filed of record by the district as of January 1 of each year
6-43 in completing the prescribed notice to be given to the purchaser
6-44 prior to execution of a binding contract of sale and purchase. All
6-45 subsequent sellers, purchasers, title insurance companies, real
6-46 estate brokers, examining attorneys, and lienholders shall be
6-47 entitled to rely upon the information form and map or plat filed by
6-48 the district.
6-49 (k) [(h)] If such notice is given at closing as provided in
6-50 Subsection (h) [(e)], a purchaser, or the purchaser's heirs,
6-51 successors, or assigns, shall not be entitled to maintain any
6-52 action for damages or maintain any action against a seller, title
6-53 insurance company, real estate brokers, or lienholder, or any
6-54 agent, representative, or person acting in their behalf, by reason
6-55 of use by the seller of the information filed for record by the
6-56 district or reliance by the seller on the filed plat and filed
6-57 legal description of the district in determining whether the
6-58 property to be sold and purchased is within the district. No
6-59 action may be maintained against any title company for failure to
6-60 disclose the inclusion of the described real property within a
6-61 district when the district has not filed for record the information
6-62 form, map, or plat with the clerk of the county or counties in
6-63 which the district is located.
6-64 (l) [(i)] Any purchaser who purchases any real property in a
6-65 district and who thereafter sells or conveys the same shall on
6-66 closing of such subsequent sale be conclusively considered as
6-67 having waived any prior right to damages under this section.
6-68 (m) [(j)] It is the express intent of this section that all
6-69 sellers, title insurance companies, examining attorneys, vendors of
7-1 property and tax information, real estate brokers, and lienholders,
7-2 and any agent, representative, or person acting on their behalf,
7-3 shall be entitled to rely on the accuracy of the information form
7-4 and map or plat as last filed by each district or the information
7-5 contained in or shown on the notice form issued by the district
7-6 under Section 49.453, or for the purposes of the notice to be given
7-7 the purchaser prior to execution of a binding contract of sale and
7-8 purchase the information contained in or shown on the information
7-9 form and map or plat filed of record by the district in effect as
7-10 of January 1 of each year for the period January 1 through December
7-11 31 of such calendar year.
7-12 (n) [(k)] Except as otherwise provided in Subsection (f)
7-13 [(c)], if any sale or conveyance of real property within a district
7-14 is not made in compliance with the provisions of this section, the
7-15 purchaser may institute a suit for damages under the provisions of
7-16 either Subsection (o) [(l)] or (p) [(m)].
7-17 (o) [(l)] A purchaser of real property covered by the
7-18 provisions of this section, if the sale or conveyance of the
7-19 property is not made in compliance with this section, may institute
7-20 a suit for damages in the amount of all costs relative to the
7-21 purchase of the property plus interest and reasonable attorney's
7-22 fees. The suit for damages may be instituted jointly or severally
7-23 against the person, firm, corporation, partnership, organization,
7-24 business trust, estate, trust, association, or other legal entity
7-25 that sold or conveyed the property to the purchaser. Following the
7-26 recovery of damages under this subsection, the amount of the
7-27 damages shall first be paid to satisfy all unpaid obligations on
7-28 each outstanding lien or liens on the property and the remainder of
7-29 the damage amount shall be paid to the purchaser. On payment of
7-30 all damages respectively to the lienholders and purchaser, the
7-31 purchaser shall reconvey the property to the seller.
7-32 (p) [(m)] A purchaser of real property covered by the
7-33 provisions of this section, if the sale or conveyance of the
7-34 property is not made in compliance with this section, may institute
7-35 a suit for damages in an amount not to exceed $5,000, plus
7-36 reasonable attorney's fees.
7-37 (q) [(n)] A purchaser is not entitled to recover damages
7-38 under both Subsections (o) [(l)] and (p) [(m)], and entry of a
7-39 final decision awarding damages to the purchaser under either
7-40 Subsection (o) [(l)] or (p) [(m)] shall preclude the purchaser from
7-41 recovering damages under the other subsection. Notwithstanding any
7-42 part or provision of the general or special laws or the common law
7-43 of the state to the contrary, the relief provided under Subsections
7-44 (o) [(l)] and (p) [(m)] shall be the exclusive remedies for a
7-45 purchaser aggrieved by the seller's failure to comply with the
7-46 provisions of this section. Any action for damages shall not,
7-47 however, apply to, affect, alter, or impair the validity of any
7-48 existing vendor's lien, mechanic's lien, or deed of trust lien on
7-49 the property.
7-50 (r) [(o)] A suit for damages under the provisions of this
7-51 section must be brought within 90 days after the purchaser receives
7-52 the first district tax notice or within four years after the
7-53 property is sold or conveyed to the purchaser, whichever time
7-54 occurs first, or the purchaser loses the right to seek damages
7-55 under this section.
7-56 (s) [(p)] Notwithstanding any provisions of this subchapter
7-57 to the contrary, a purchaser may not recover damages of any kind
7-58 under this section if that person:
7-59 (1) purchases an equity in real property and in
7-60 conjunction with the purchase assumes any liens, whether purchase
7-61 money or otherwise; and
7-62 (2) does not require proof of title by abstract, title
7-63 policy, or any other proof of title.
7-64 SECTION 2. (a) This Act takes effect September 1, 1999.
7-65 (b) The change in law made by this Act applies only to a
7-66 transfer of property that occurs on or after the effective date of
7-67 this Act. For purposes of this section, a transfer of property
7-68 occurs before the effective date of this Act if the contract of
7-69 sale and purchase binding the purchaser to purchase the property is
8-1 executed before that date.
8-2 (c) Property transferred before the effective date of this
8-3 Act is covered by the law in effect when the property was
8-4 transferred, and the former law is continued in effect for that
8-5 purpose.
8-6 SECTION 3. The importance of this legislation and the
8-7 crowded condition of the calendars in both houses create an
8-8 emergency and an imperative public necessity that the
8-9 constitutional rule requiring bills to be read on three several
8-10 days in each house be suspended, and this rule is hereby suspended.
8-11 * * * * *