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A BILL TO BE ENTITLED
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AN ACT
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relating to requiring notice by a seller of real property of |
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potential annexation of the property by a municipality. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 5.011(d), Property Code, is amended to |
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read as follows: |
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(d) In addition to the [If the] notice required by [is
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delivered as provided by] this section, the seller is required to |
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provide the notice required by Section 5.0111 [has no duty to
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provide additional information regarding the possible annexation
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of the property by a municipality]. |
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SECTION 2. Subchapter A, Chapter 5, Property Code, is |
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amended by adding Section 5.0111 to read as follows: |
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Sec. 5.0111. SELLER'S DISCLOSURE REGARDING ANNEXATION |
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PLAN. (a) In addition to the notice required by Section 5.011, if |
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the seller has received written notice from a municipality under |
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Section 43.052, Local Government Code, that the property is |
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included in the municipality's annexation plan, then the seller |
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shall notify the purchaser in writing that the seller has received |
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notice of potential annexation from the municipality. |
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(b) The seller shall deliver the notice to the purchaser |
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before the date the executory contract binds the purchaser to |
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purchase the property. The notice may be given separately, as part |
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of the contract during negotiations, or as part of any other notice |
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the seller delivers to the purchaser. |
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(c) This section does not apply to a transfer: |
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(1) under a court order or foreclosure sale; |
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(2) by a trustee in bankruptcy; |
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(3) to a mortgagee by a mortgagor or successor in |
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interest or to a beneficiary of a deed of trust by a trustor or |
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successor in interest; |
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(4) by a mortgagee or a beneficiary under a deed of |
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trust who has acquired the land at a sale conducted under a power of |
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sale under a deed of trust or a sale under a court-ordered |
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foreclosure or has acquired the land by a deed in lieu of |
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foreclosure; |
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(5) by a fiduciary in the course of the administration |
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of a decedent's estate, guardianship, conservatorship, or trust; |
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(6) from one co-owner to another co-owner of an |
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undivided interest in the real property; |
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(7) to a spouse or a person in the lineal line of |
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consanguinity of the seller; |
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(8) to or from a governmental entity; |
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(9) of only a mineral interest, leasehold interest, or |
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security interest; or |
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(10) of real property that is located wholly within a |
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municipality's corporate boundaries. |
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(d) If an executory contract is entered into without the |
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seller providing the notice required by this section, the purchaser |
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may terminate the contract for any reason before the earlier of: |
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(1) the eighth day after the date the purchaser |
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receives the notice; or |
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(2) the date the transfer occurs. |
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SECTION 3. This Act applies only to a transfer of property |
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that occurs on or after the effective date of this Act. A transfer |
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of property that occurs before the effective date of this Act is |
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covered by the law in effect at the time the transfer occurs, and |
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the former law is continued in effect for that purpose. For the |
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purposes of this section, a transfer of property occurs before the |
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effective date of this Act if the contract binding the purchaser to |
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purchase the property is executed before that date. |
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SECTION 4. This Act takes effect September 1, 2007. |