By Carona S.B. No. 167 76R3653 PAM-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to requiring a seller of real property to deliver notice 1-3 to the purchaser regarding the potential for annexation of the 1-4 property. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Subchapter A, Chapter 5, Property Code, is 1-7 amended by adding Section 5.011 to read as follows: 1-8 Sec. 5.011. SELLER'S DISCLOSURE REGARDING POTENTIAL 1-9 ANNEXATION. (a) A person who sells an interest in real property 1-10 in this state shall give to the purchaser of the property a written 1-11 notice that reads substantially similar to the following: 1-12 NOTICE REGARDING POSSIBLE ANNEXATION 1-13 If the property that is the subject of this 1-14 contract is located outside the limits of a 1-15 municipality, the property may now or later be included 1-16 in the extraterritorial jurisdiction of a municipality 1-17 and may now or later be subject to annexation by the 1-18 municipality. Each municipality maintains a map that 1-19 depicts its boundaries and extraterritorial 1-20 jurisdiction. To determine if the property is located 1-21 within a municipality's extraterritorial jurisdiction 1-22 or is likely to be located within a municipality's 1-23 extraterritorial jurisdiction, contact all 1-24 municipalities located in the general proximity of the 2-1 property for further information. 2-2 (b) The seller shall deliver the notice to the purchaser 2-3 before the date the executory contract binds the purchaser to 2-4 purchase the property. The notice may be given separately, as part 2-5 of the contract during negotiations, or as part of any other notice 2-6 the seller delivers to the purchaser. 2-7 (c) This section does not apply to a transfer: 2-8 (1) under a court order or foreclosure sale; 2-9 (2) by a trustee in bankruptcy; 2-10 (3) to a mortgagee by a mortgagor or successor in 2-11 interest or to a beneficiary of a deed of trust by a trustor or 2-12 successor in interest; 2-13 (4) by a mortgagee or a beneficiary under a deed of 2-14 trust who has acquired the land at a sale conducted under a power 2-15 of sale under a deed of trust or a sale under a court-ordered 2-16 foreclosure or has acquired the land by a deed in lieu of 2-17 foreclosure; 2-18 (5) by a fiduciary in the course of the administration 2-19 of a decedent's estate, guardianship, conservatorship, or trust; 2-20 (6) from one co-owner to another co-owner of an 2-21 undivided interest in the real property; 2-22 (7) to a spouse or a person in the lineal line of 2-23 consanguinity of the seller; 2-24 (8) to or from a governmental entity; 2-25 (9) of only a mineral interest, leasehold interest, or 2-26 security interest; or 2-27 (10) of real property that is located wholly within a 3-1 municipality's corporate boundaries. 3-2 (d) If the notice is delivered as provided by this section, 3-3 the seller has no duty to provide additional information regarding 3-4 the possible annexation of the property by a municipality. 3-5 (e) If an executory contract is entered into without the 3-6 seller providing the notice required by this section, the purchaser 3-7 may terminate the contract for any reason within the earlier of: 3-8 (1) seven days after the date the purchaser receives 3-9 the notice; or 3-10 (2) the date the transfer occurs. 3-11 SECTION 2. (a) This Act takes effect January 1, 2000. 3-12 (b) The change in law made by this Act applies only to a 3-13 transfer of property that occurs on or after the effective date of 3-14 this Act. For purposes of this section, a transfer of property 3-15 occurs before the effective date of this Act if the executory 3-16 contract binding the purchaser to purchase the property is executed 3-17 before that date. 3-18 (c) Property transferred before the effective date of this 3-19 Act is covered by the law in effect when the property was 3-20 transferred, and the former law is continued in effect for that 3-21 purpose. 3-22 SECTION 3. The importance of this legislation and the 3-23 crowded condition of the calendars in both houses create an 3-24 emergency and an imperative public necessity that the 3-25 constitutional rule requiring bills to be read on three several 3-26 days in each house be suspended, and this rule is hereby suspended.