Amend CSHB 1038 on page 1, between lines 4 and 5, by inserting
the following appropriately numbered SECTION and renumbering
subsequent SECTIONS accordingly:
SECTION ____. Subchapter A, Chapter 5, Property Code, is
amended by adding Section 5.016 to read as follows:
Sec. 5.016. DISCLOSURE OF ABSENCE OF CERTAIN WARRANTIES.
(a) A seller of residential real property that is exempt from Title
16 under Section 401.005 shall give to the purchaser of the property
a written notice that reads substantially similar to the following:
NOTICE OF NONAPPLICABILITY OF CERTAIN WARRANTIES
AND BUILDING AND PERFORMANCE STANDARDS
The property that is subject to this contract is exempt from
Title 16, Property Code, including the provisions of that title
that provide statutory warranties and building and performance
standards.
(b) A notice required by this section shall be delivered by
the seller to the purchaser on or before the effective date of an
executory contract binding the purchaser to purchase the property.
If a contract is entered into without the seller providing the
notice, the purchaser may terminate the contract for any reason on
or before the seventh day after the date the purchaser receives the
notice.
(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; or
(9) of only a mineral interest, leasehold interest, or
security interest.