79R6900 KCR-D

By:  Allen of Dallas                                              H.B. No. 1919



A BILL TO BE ENTITLED

AN ACT

relating to notice in certain real property transactions concerning 
public improvement districts.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter A, Chapter 5, Property Code, is 
amended by adding Section 5.014 to read as follows:
	Sec. 5.014.  NOTICE OF OBLIGATIONS RELATED TO PUBLIC 
IMPROVEMENT DISTRICT.  (a)  A seller of residential real property 
that is located in a public improvement district established under 
Chapter 372, Local Government Code, and that consists of not more 
than one dwelling unit located in this state shall give to the 
purchaser of the property a written notice that reads substantially 
similar to the following:

NOTICE OF OBLIGATION TO PAY PUBLIC IMPROVEMENT DISTRICT ASSESSMENT 
TO (municipality or county levying assessment) CONCERNING THE 
PROPERTY AT (street address)
	As a purchaser of this parcel of real property you are 
obligated to pay an assessment to a municipality or county for an 
improvement project undertaken by a public improvement district 
under Chapter 372, Local Government Code.  The assessment may be due 
annually or in periodic installments.  More information concerning 
the amount of the assessment and the due dates of that assessment 
may be obtained from the municipality or county levying the 
assessment.
	The amount of the assessments is subject to change.  Your 
failure to pay the assessments could result in a lien on and the 
foreclosure of your property. Date: ____________________               ______________________________           
                                         Signature of Purchaser                   

	(b)  The seller shall deliver the notice required under 
Subsection (a) to the purchaser before the effective date of an 
executory contract binding the purchaser to purchase the property.  
The notice may be given separately, as part of the contract during 
negotiations, or as part of any other notice the seller delivers to 
the purchaser.  If the notice is included as part of the executory 
contract or another notice, the title of the notice prescribed by 
this section, the references to the street address and date in the 
notice, and the purchaser's signature on the notice may be omitted.
	(c)  This section does not apply to a transfer:                         
		(1)  under a court order or foreclosure sale;                          
		(2)  by a trustee in bankruptcy;                                       
		(3)  to a mortgagee by a mortgagor or successor in 
interest or to a beneficiary of a deed of trust by a trustor or 
successor in interest;
		(4)  by a mortgagee or a beneficiary under a deed of 
trust who has acquired the land at a sale conducted under a power of 
sale under a deed of trust or a sale under a court-ordered 
foreclosure or has acquired the land by a deed in lieu of 
foreclosure;
		(5)  by a fiduciary in the course of the administration 
of a decedent's estate, guardianship, conservatorship, or trust;
		(6)  from one co-owner to another co-owner of an 
undivided interest in the real property;
		(7)  to a spouse or a person in the lineal line of 
consanguinity of the seller;
		(8)  to or from a governmental entity;                                 
		(9)  of only a mineral interest, leasehold interest, or 
security interest;  or
		(10)  of a real property interest in a condominium.                    
	(d)  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 not later than the earlier 
of:
		(1)  the seventh day after the date the purchaser 
receives the notice;  or
		(2)  the date the transfer occurs as provided by the 
executory contract.
	(e)  The purchaser's right to terminate the executory 
contract under Subsection (d) is the purchaser's exclusive remedy 
for the seller's failure to provide the notice required by this 
section.
	SECTION 2.  Section 5.014, Property Code, as added by this 
Act, applies only to an executory contract that is binding on a 
seller and purchaser on or after January 1, 2006.
	SECTION 3.  This Act takes effect September 1, 2005.