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                                  * * * * *