By: Wentworth, Van de Putte S.B. No. 270

(In the Senate - Filed January 23, 2007; January 30, 2007, read first time and referred to Committee on Intergovernmental Relations; May 3, 2007, reported adversely, with favorable Committee Substitute by the following vote: Yeas 3, Nays 2; May 3, 2007, sent to printer.)

COMMITTEE SUBSTITUTE FOR S.B. No. 270 By: Wentworth

A BILL TO BE ENTITLED

AN ACT

relating to mandatory sales price disclosure in certain real property sales; providing a civil penalty.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 12, Property Code, is amended by adding Section 12.0011 to read as follows:

Sec. 12.0011. MANDATORY SALES PRICE DISCLOSURE. (a) In this section:

(1) "Commercial property" means real property that is primarily used in the course of business that provides items for sale or services to the general public.

(2) "Multifamily residential property" means real property that includes residential improvements containing two or more residential units under single ownership.

(3) "Vacant land" means unimproved real property.

(b) A person may not file for record or have recorded in the county clerk's office an instrument conveying commercial property, multifamily residential property, or vacant land under a contract for sale unless the instrument discloses the sales price of the property.

(c) The purchaser of any property for which an instrument is recorded in violation of Subsection (b) is liable to the state for a civil penalty for each violation in an amount equal to five percent of the sales price of the property.

(d) The attorney general or the county or district attorney for the county in which the property is located may bring suit to recover a penalty under this section.

(e) This section does not apply to an instrument conveying only a mineral interest in real property.

SECTION 2. This Act takes effect September 1, 2007.

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