HBA-MPM H.B. 1514 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1514
By: Junell
Business & Industry
2/23/2001
Introduced



BACKGROUND AND PURPOSE 

Some residential subdivisions in Texas are being built in close proximity
to existing commercial enterprises. Persons who sell residential properties
in these subdivisions might not disclose the proximity of an existing
commercial enterprise to a buyer.  House Bill 1514 requires sellers to
inform a potential buyer of residential property of commercial enterprises
located within one mile of the property that emit smoke, noise, vibrations,
or odors that might cause offense and makes provisions for a buyer to
terminate a contract if the notice is not provided. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 1514 amends the Property Code to require a seller of residential
real property to give the purchaser a written notice disclosing the
location of any commercial business located within one mile of the
purchaser's property that would be considered by a reasonable person to
cause an offense to the senses of a person living at the residential
property, including smoke, odors, noise, or vibrations.  The bill requires
the seller to deliver the notice on or before the date the executory
contract binds the purchaser.  The bill specifies that the notice may be
given separately, as part of the contract during negotiations, or as part
of any other notice given to the purchaser.  If an executory contract is
entered into without the seller providing the required notice, the bill
authorizes the purchaser to terminate the contract within seven days after
the purchaser receives the notice or the date the transfer occurs,
whichever is earlier. 

EFFECTIVE DATE

October 1, 2001.