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By:  Villarreal                                                   H.B. No. 399


A BILL TO BE ENTITLED
AN ACT
relating to the disclosure report of sales price to local appraisal district. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 12.001, Property Code, is amended by adding Subsections (e)-(g) to read as follows: (e) An instrument conveying real property may not be recorded under Subsection (a) unless a certificate issued by the chief appraiser of the appraisal district established for the county in which the property is located stating that the sales price disclosure report required by Subchapter D, Chapter 22, Tax Code, has been filed with the chief appraiser is filed with the instrument of conveyance. (f) Subsection (e) does not apply to an instrument conveying real property if the conveyance is made: (1) pursuant to a court order or foreclosure sale; (2) by a trustee in bankruptcy; (3) by a mortgagor or a mortgagor's successor in interest to a mortgagee or by a trustor or a trustor's successor in interest to a beneficiary of a deed of trust; (4) between spouses and results from: (A) a decree of dissolution of marriage; (B) a decree of legal separation; or (C) a property settlement agreement incidental to a decree described by Paragraph (A) or (B); or (5) to or from any governmental entity. (g) The chief appraiser of the appraisal district established for the county in which the property is located and the county clerk by written agreement may establish a procedure for the electronic transfer to the county clerk of the certificate required by Subsection (e). An instrument of conveyance may be recorded under this section without an accompanying paper copy of the certificate required by Subsection (e) if the certificate is electronically transferred to the county clerk by the chief appraiser under a procedure established under this subsection. SECTION 2. The heading to Subchapter C, Chapter 22, Tax Code, is amended to read as follows:
SUBCHAPTER C. [OTHER] REPORTS OF POLITICAL SUBDIVISION ACTIONS
SECTION 3. Chapter 22, Tax Code, is amended by adding Subchapter D to read as follows:
SUBCHAPTER D. REPORT OF SALES PRICE
Sec. 22.61. SALES PRICE DISCLOSURE REPORT. (a) Except as provided by Subsection (d), on the sale of real property the purchaser of the property or a person acting on behalf of the purchaser shall file a sales price disclosure report with the chief appraiser of the appraisal district established for the county in which the property is located. (b) A sales price disclosure report may be filed by facsimile. (c) The sales price disclosure report may be filed with the chief appraiser before the sale of the property closes. If any information required by the sales price disclosure report changes after the report is filed with the chief appraiser, the person who prepared the original report shall prepare, sign, and file with the chief appraiser a supplemental sales price disclosure report updating the information that changed. The supplemental report shall be filed not later than the third day after the date the sale of the property closed. (d) This section does not apply to a sale of real property if the sale is made: (1) pursuant to a court order or foreclosure sale; (2) by a trustee in bankruptcy; (3) by a mortgagor or a mortgagor's successor in interest to a mortgagee or by a trustor or a trustor's successor in interest to a beneficiary of a deed of trust; (4) between spouses and results from: (A) a decree of dissolution of marriage; (B) a decree of legal separation; or (C) a property settlement agreement incidental to a decree described by Paragraph (A) or (B); or (5) to or from any governmental entity. Sec. 22.62. SIGNATURE REQUIRED. A sales price disclosure report must be signed by the purchaser or by the person who prepares the report. Sec. 22.63. REPORT FORMS. (a) The comptroller shall prescribe the form and content of a sales price disclosure report filed under this subchapter. The comptroller shall ensure that each form requires the person preparing the report to provide, at a minimum: (1) the seller's name and address; (2) the purchaser's name and address; (3) information necessary to identify the property and to determine the property's location; (4) the mailing address for tax notices concerning the property; (5) a description of the use of the property at the time of sale; (6) a statement of whether any personal property was included in the sale and, if so, the estimated value of the personal property; (7) the method used to finance the sale; (8) a statement of whether the property was offered for sale to other potential purchasers; (9) a statement of whether the purchaser holds title to any adjoining property; (10) the sales price of the property; (11) the closing date of the sale; and (12) the name and address of the person preparing the report. (b) A form may not require information not relevant to the appraisal of property for tax purposes or to the assessment or collection of property taxes. (c) A person who prepares a sales price disclosure report under this subchapter must: (1) use the appropriate form prescribed by the comptroller; and (2) include all information required by the form. Sec. 22.64. DELIVERY OF CERTIFICATE TO PURCHASER. (a) Except as provided by Subsection (b), not later than the second day after the date the sales price disclosure report is filed with the chief appraiser, the chief appraiser shall provide to the purchaser a certificate stating that the completed sales price disclosure report has been filed. (b) If the chief appraiser and the county clerk of the county in which the property is located have entered into an agreement under Section 12.001(g), Property Code, the chief appraiser may electronically transfer the certificate to the county clerk. A chief appraiser that elects to electronically transfer the certificate shall: (1) transfer the certificate not later than the second day after the date the sales price disclosure report is filed; and (2) notify the purchaser in writing that the certificate has been filed with the county clerk. Sec. 22.65. PUBLICIZING REQUIREMENTS. (a) The comptroller shall publicize, in a manner reasonably designed to come to the attention of title companies, attorneys, and property owners, the requirements of this subchapter and of the availability of sales price disclosure report forms. (b) The Texas Real Estate Commission shall assist the comptroller in publicizing the information required by Subsection (a) to title companies and attorneys. (c) A chief appraiser shall assist the comptroller in publicizing the information required by Subsection (a) to property owners in the county for which the appraisal district is established. Sec. 22.66. CONFIDENTIAL INFORMATION. (a) A sales price disclosure report filed with a chief appraiser under this subchapter is confidential and not open to public inspection. The report and the information it contains about specific property or a specific person may not be disclosed to another person other than an employee of the appraisal office who appraises property except as provided by Subsection (b). (b) Information that is confidential under Subsection (a) may be disclosed: (1) in a judicial or administrative proceeding pursuant to a lawful subpoena; (2) to the person who filed the sales price disclosure report, to the owner of the property described in the report, or to a representative of the person who filed the report or the owner who is authorized in writing to receive the information; (3) to the comptroller and the comptroller's employees authorized by the comptroller in writing to receive the information or to an assessor or a chief appraiser if requested in writing; (4) in a judicial or administrative proceeding relating to property taxation: (A) in which the person who filed the sales price disclosure report is a party; (B) in which the owner of the property described in the report is a party; (C) by the appraisal district for the purpose of establishing the value of the property; or (D) for the purpose of providing evidence of comparable sales used to appraise another property; (5) for statistical purposes if the information is provided in a form that does not identify a specific property or a specific property owner; (6) if and to the extent the information is required to be included in a public document or record that the appraisal office is required to prepare or maintain; or (7) to a taxing unit or its legal representative that is engaged in the collection of delinquent taxes on the property that is described in the report. (c) A person, other than a person described by Subsection (b)(2), who legally has access to a sales price disclosure report or who legally obtains the information from a report made confidential by this section commits an offense if the person knowingly: (1) permits inspection of the confidential information by a person not authorized by Subsection (b) to inspect the information; or (2) discloses the confidential information to a person not authorized by Subsection (b) to receive the information. (d) It is a defense to prosecution under Subsection (c) that the person obtained the information from: (1) a person described by Subsection (b)(2); or (2) a record or document lawfully available to the public. (e) An offense under Subsection (c) is a Class B misdemeanor. Sec. 22.67. IMMUNITY FROM LIABILITY. A person who prepares a sales price disclosure report in compliance with this subchapter is not liable to any other person as a result of providing the information required by this subchapter. SECTION 4. This Act takes effect September 1, 2005.