79R4200 PAM-D
By: Farrar H.B. No. 1875
A BILL TO BE ENTITLED
AN ACT
relating to requiring the disclosure of the sales price of real
property to local appraisal districts and to filing an instrument
of conveyance; providing criminal penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 12.001(b), Property Code, is amended to
read as follows:
(b) An instrument conveying real property may not be
recorded unless:
(1) the instrument [it] is signed and acknowledged or
sworn to by the grantor in the presence of two or more credible
subscribing witnesses or acknowledged or sworn to before and
certified by an officer authorized to take acknowledgements or
oaths, as applicable; and
(2) if applicable, a certificate required by Section
12.0011 is presented for filing with the instrument.
SECTION 2. Chapter 12, Property Code, is amended by adding
Section 12.0011 to read as follows:
Sec. 12.0011. CERTIFICATE OF SALES PRICE DISCLOSURE REPORT
REQUIRED IN CERTAIN CIRCUMSTANCES. (a) Except as provided by this
section, an instrument conveying real property may not be recorded
under Section 12.001 unless a certificate issued under Section
22.64, Tax Code, verifying that the sales price disclosure report
was filed with each chief appraiser of the appraisal district in
which the property is located, is presented for filing with the
instrument of conveyance.
(b) Subsection (a) does not apply to an instrument conveying
real property:
(1) under a court order or foreclosure sale;
(2) by a trustee in bankruptcy; or
(3) to a spouse that 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).
(c) A county clerk and a chief appraiser of an appraisal
district established for that county may by written agreement
establish a procedure for the electronic transfer to the county
clerk of a certificate required by this section. An instrument of
conveyance may be recorded under this section without presenting
for filing a copy of the certificate as required by Subsection (a)
if the certificate is electronically transferred to the county
clerk by the chief appraiser under a procedure established under
this subsection.
SECTION 3. The heading to Subchapter C, Chapter 22, Tax
Code, is amended to read as follows:
SUBCHAPTER C. [OTHER] REPORTS OF POLITICAL SUBDIVISION ACTIONS
SECTION 4. 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), a purchaser of real property or a person
acting on behalf of the purchaser shall file a sales price
disclosure report with each chief appraiser of an appraisal
district established for each 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 before
the documents conveying the property are executed. If any
information required by the sales price disclosure report changes
after the report is filed with the chief appraiser, not later than
the third day after the date the sale of the property closed, the
person who prepared the original report shall prepare, sign, and
file with the chief appraiser a supplemental sales price disclosure
report correcting the information.
(d) This section does not apply to a sale of real property:
(1) under a court order or foreclosure sale;
(2) by a trustee in bankruptcy; or
(3) to a spouse that 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).
Sec. 22.62. SIGNATURE REQUIRED. The purchaser or the
person who prepares a sales price disclosure report must sign the
report.
Sec. 22.63. REPORT FORMS. (a) The comptroller by rule
shall prescribe the form and content of a sales price disclosure
report filed under this subchapter.
(b) A form prescribed under this section, at a minimum, must
require the person preparing the report to provide:
(1) the seller's name and address;
(2) the purchaser's name and address;
(3) information necessary to identify the property and
determine the property's location;
(4) the mailing address for property tax notices;
(5) a description of the use of the property at the
time of sale;
(6) a statement indicating whether any personal
property was included in the sale and the estimated value of the
personal property, if applicable;
(7) the method used to finance the sale, if
applicable;
(8) a statement indicating whether the property was
offered for sale to other potential purchasers;
(9) a statement indicating 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.
(c) A form prescribed under this section may not require a
person to provide information that is irrelevant to the appraisal
of property for tax purposes or to the assessment or collection of
property taxes.
(d) A person who prepares a sales price disclosure report
under this subchapter must:
(1) use the form prescribed by the comptroller under
this section; and
(2) include all information required by the form.
Sec. 22.64. CERTIFICATE OF SALES PRICE DISCLOSURE REPORT.
(a) Except as provided by Subsection (c), 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 verifying that a completed sales price
disclosure report has been filed.
(b) The comptroller by rule shall prescribe the form and
content of the certificate required by this section.
(c) If the chief appraiser and the county clerk of a county
in which the property is located have entered into an agreement
under Section 12.0011(c), 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 the requirements of this subchapter in a manner
reasonably designed to notify title companies, attorneys, and
property owners of the requirements of this subchapter and the
availability of sales price disclosure report forms.
(b) The Texas Real Estate Commission shall assist the
comptroller in publicizing the information under this section to
title companies and attorneys.
(c) The chief appraiser of each appraisal district shall
assist the comptroller in publicizing the information under this
section to property owners in the county for which that appraisal
district is located.
Sec. 22.66. SUMMARY REPORT. (a) The chief appraiser of
each appraisal district shall compile a report that summarizes the
relevant data contained in the sales price disclosure reports for
the appraisal district.
(b) The comptroller by rule shall prescribe the form and
content of the summary report.
(c) A summary report under this section may not refer to a
specific property, specific property owner, or other specific
person.
Sec. 22.67. CONFIDENTIAL INFORMATION. (a) Except as
provided by Subsection (b), a sales price disclosure report filed
with a chief appraiser under this subchapter is confidential and
not subject to public disclosure, including the information the
report contains about specific property or a specific person.
(b) Information that is confidential under Subsection (a)
may be disclosed:
(1) to the person who files the sales price disclosure
report, the owner of the property described in the report, or a
person authorized in writing to receive the information by the
person who files the report or the owner of the property;
(2) to the comptroller or an employee of the
comptroller authorized by the comptroller in writing to receive the
information;
(3) to a chief appraiser or assessor if requested in
writing;
(4) to an employee of the appraisal office responsible
for appraising the property that is the subject of a report;
(5) in a judicial or administrative proceeding
pursuant to a lawful subpoena;
(6) in a judicial or administrative proceeding
relating to property taxation in which:
(A) the person who filed the sales price
disclosure report is a party;
(B) the owner of the property described in the
report is a party;
(C) the appraisal district filed the proceeding
for the purpose of establishing the value of the property; or
(D) the purpose of the proceeding is to provide
evidence of comparable sales used to appraise another property;
(7) for statistical purposes if the information is
provided in a form that does not identify a specific property or a
specific property owner;
(8) 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
(9) 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.
Sec. 22.68. CRIMINAL OFFENSE. (a) A person, other than a
person described by Section 22.67(b)(1), who legally has access to
a sales price disclosure report or who legally obtains the
information from a report made confidential under that section
commits an offense if the person knowingly:
(1) permits a person to inspect the confidential
information if the person is not authorized by Section 22.67(b) to
inspect the information; or
(2) discloses the confidential information to a person
who is not authorized under Section 22.67(b) to receive the
information.
(b) It is a defense to prosecution under this section that
the person obtained the information from:
(1) a person described by Section 22.67(b)(1); or
(2) a record or document lawfully available to the
public.
(c) An offense under this section is a Class B misdemeanor.
Sec. 22.69. IMMUNITY FROM LIABILITY. A person who prepares
a sales price disclosure report as required by this subchapter is
not liable to any other person as the result of providing the
information.
SECTION 5. (a) Not later than December 1, 2005, the
comptroller shall adopt rules prescribing the form and content of:
(1) the sales price disclosure report, as required by
Section 22.63, Tax Code, as added by this Act;
(2) the certificate verifying that a sales price
disclosure report has been filed, as required by Section 22.64, Tax
Code, as added by this Act; and
(3) the summary report, as required by Section 22.66,
Tax Code, as added by this Act.
(b) The change in law made by this Act applies only to real
property purchased under an agreement entered into on or after
January 1, 2006.
SECTION 6. This Act takes effect September 1, 2005.