1-1 By: Carona S.B. No. 167 1-2 (In the Senate - Filed January 15, 1999; January 28, 1999, 1-3 read first time and referred to Committee on Intergovernmental 1-4 Relations; March 18, 1999, reported favorably by the following 1-5 vote: Yeas 5, Nays 0; March 18, 1999, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to requiring a seller of real property to deliver notice 1-9 to the purchaser regarding the potential for annexation of the 1-10 property. 1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-12 SECTION 1. Subchapter A, Chapter 5, Property Code, is 1-13 amended by adding Section 5.011 to read as follows: 1-14 Sec. 5.011. SELLER'S DISCLOSURE REGARDING POTENTIAL 1-15 ANNEXATION. (a) A person who sells an interest in real property 1-16 in this state shall give to the purchaser of the property a written 1-17 notice that reads substantially similar to the following: 1-18 NOTICE REGARDING POSSIBLE ANNEXATION 1-19 If the property that is the subject of this 1-20 contract is located outside the limits of a 1-21 municipality, the property may now or later be included 1-22 in the extraterritorial jurisdiction of a municipality 1-23 and may now or later be subject to annexation by the 1-24 municipality. Each municipality maintains a map that 1-25 depicts its boundaries and extraterritorial 1-26 jurisdiction. To determine if the property is located 1-27 within a municipality's extraterritorial jurisdiction 1-28 or is likely to be located within a municipality's 1-29 extraterritorial jurisdiction, contact all 1-30 municipalities located in the general proximity of the 1-31 property for further information. 1-32 (b) The seller shall deliver the notice to the purchaser 1-33 before the date the executory contract binds the purchaser to 1-34 purchase the property. The notice may be given separately, as part 1-35 of the contract during negotiations, or as part of any other notice 1-36 the seller delivers to the purchaser. 1-37 (c) This section does not apply to a transfer: 1-38 (1) under a court order or foreclosure sale; 1-39 (2) by a trustee in bankruptcy; 1-40 (3) to a mortgagee by a mortgagor or successor in 1-41 interest or to a beneficiary of a deed of trust by a trustor or 1-42 successor in interest; 1-43 (4) by a mortgagee or a beneficiary under a deed of 1-44 trust who has acquired the land at a sale conducted under a power 1-45 of sale under a deed of trust or a sale under a court-ordered 1-46 foreclosure or has acquired the land by a deed in lieu of 1-47 foreclosure; 1-48 (5) by a fiduciary in the course of the administration 1-49 of a decedent's estate, guardianship, conservatorship, or trust; 1-50 (6) from one co-owner to another co-owner of an 1-51 undivided interest in the real property; 1-52 (7) to a spouse or a person in the lineal line of 1-53 consanguinity of the seller; 1-54 (8) to or from a governmental entity; 1-55 (9) of only a mineral interest, leasehold interest, or 1-56 security interest; or 1-57 (10) of real property that is located wholly within a 1-58 municipality's corporate boundaries. 1-59 (d) If the notice is delivered as provided by this section, 1-60 the seller has no duty to provide additional information regarding 1-61 the possible annexation of the property by a municipality. 1-62 (e) If an executory contract is entered into without the 1-63 seller providing the notice required by this section, the purchaser 1-64 may terminate the contract for any reason within the earlier of: 2-1 (1) seven days after the date the purchaser receives 2-2 the notice; or 2-3 (2) the date the transfer occurs. 2-4 SECTION 2. (a) This Act takes effect January 1, 2000. 2-5 (b) The change in law made by this Act applies only to a 2-6 transfer of property that occurs on or after the effective date of 2-7 this Act. For purposes of this section, a transfer of property 2-8 occurs before the effective date of this Act if the executory 2-9 contract binding the purchaser to purchase the property is executed 2-10 before that date. 2-11 (c) Property transferred before the effective date of this 2-12 Act is covered by the law in effect when the property was 2-13 transferred, and the former law is continued in effect for that 2-14 purpose. 2-15 SECTION 3. The importance of this legislation and the 2-16 crowded condition of the calendars in both houses create an 2-17 emergency and an imperative public necessity that the 2-18 constitutional rule requiring bills to be read on three several 2-19 days in each house be suspended, and this rule is hereby suspended. 2-20 * * * * *