By Harris                                              S.B. No. 775
         77R1701 PAM-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to requiring the seller of residential real property to
 1-3     disclose to the purchaser the location of certain commercial
 1-4     enterprises.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. Subchapter A, Chapter 5, Property Code, is amended
 1-7     by adding Section 5.014 to read as follows:
 1-8           Sec. 5.014.  SELLER'S DISCLOSURE REGARDING PROXIMITY OF
 1-9     CERTAIN COMMERCIAL ENTERPRISES. (a)  A seller of residential real
1-10     property shall give to the purchaser of the property written notice
1-11     disclosing the location of any commercial enterprise that:
1-12                 (1)  is located within one mile of the residential
1-13     property; and
1-14                 (2)  would be considered by a reasonable person to
1-15     cause an unacceptable offense to the senses, including smoke,
1-16     odors, noise, or vibrations, of a person living at the residential
1-17     property.
1-18           (b)  The seller shall deliver the notice on or before the
1-19     date the executory contract binds the purchaser to purchase the
1-20     property.  The notice may be given separately, as part of the
1-21     contract during negotiations, or as part of any other notice the
1-22     seller delivers to the purchaser.
1-23           (c)  If an executory contract is entered into without the
1-24     seller providing the notice required by this section, the purchaser
 2-1     may terminate the contract for any reason within the earlier of:
 2-2                 (1)  seven days after the date the purchaser receives
 2-3     the notice; or
 2-4                 (2)  the date the transfer occurs.
 2-5           SECTION 2. (a)  This Act takes effect October 1, 2001.
 2-6           (b)  The change in law made by this Act applies only to a
 2-7     transfer of property that occurs on or after the effective date of
 2-8     this Act.  For purposes of this section, a transfer of property
 2-9     occurs before the effective date of this Act if the executory
2-10     contract binding the purchaser to purchase the property is executed
2-11     before that date.
2-12           (c)  Property transferred before the effective date of this
2-13     Act is covered by the law in effect when the property was
2-14     transferred, and the former law is continued in effect for that
2-15     purpose.