SRC-TBR S.B. 775 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 775
77R1701 PAM-DBy: Harris
Business & Commerce
3/15/2001
As Filed


DIGEST AND PURPOSE 

Currently, residential subdivisions are being built in proximity to
commercial enterprises that may produce smoke, noise, vibration or odors.
As proposed, S.B. 775 requires sellers of residential property to disclose
to a buyer any unacceptable offenses to a person's senses that may be
produced by a commercial enterprise in the area. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 5A, Property Code, by adding Section 5.014, as
follows, 

 Sec. 5.014.  SELLER'S DISCLOSURE REGARDING PROXIMITY OF CERTAIN COMMERCIAL
ENTERPRISES.  (a)  Requires a seller of residential real property to give
to the purchaser of the property written notice disclosing the location of
any commercial enterprise that meets certain criteria. 

(b)Requires the seller to deliver the notice on or before the date the
executory contract binds the purchaser to purchase the property.
Authorizes the notice to be given separately, as part of the contract
during negotiations, or as part of any other notice the seller delivers to
the purchaser. 

(c)  Provides that if an executory contract is entered into without the
seller providing the notice required by this section, the purchaser may
terminate the contract for any reason within the earlier of, seven days
after the date the purchaser receives the notice or the date the transfer
occurs. 

SECTION 2.  Effective date: October 1, 2001.
    Makes application of this Act prospective.