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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 5.008(b), Property Code, as amended by |
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Chapters 448 (H.B. 271), 1051 (H.B. 2118), and 1256 (H.B. 2819), |
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Acts of the 80th Legislature, Regular Session, 2007, is reenacted |
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and amended to read as follows: |
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(b) The notice must be executed and must, at a minimum, read |
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substantially similar to the following: |
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SELLER'S DISCLOSURE NOTICE |
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CONCERNING THE PROPERTY AT___________________________________ |
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(Street Address and City) |
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THIS NOTICE IS A DISCLOSURE OF SELLER'S KNOWLEDGE |
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OF THE CONDITION OF THE PROPERTY AS OF THE DATE SIGNED |
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BY SELLER AND IS NOT A SUBSTITUTE FOR ANY INSPECTIONS |
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OR WARRANTIES THE PURCHASER MAY WISH TO OBTAIN. IT IS |
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NOT A WARRANTY OF ANY KIND BY SELLER OR SELLER'S |
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AGENTS. |
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Seller __ is __ is not occupying the Property. |
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If unoccupied, how long since Seller has occupied the Property? |
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________________________________________________________________ |
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1. The Property has the items checked below: |
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Write Yes (Y), No (N), or Unknown (U). |
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| __ Range |
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__ Oven |
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__ Microwave |
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| __ Dishwasher |
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__ Trash Compactor |
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__ Disposal |
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| __ Washer/Dryer |
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__ Window |
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__ Rain Gutters |
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| __ Security |
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__ Fire Detection |
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__ Intercom |
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| __ TV Antenna |
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__ Cable TV |
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__ Satellite |
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| __ Ceiling Fan(s) |
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__ Attic Fan(s) |
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__ Exhaust |
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| __ Central A/C |
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__ Central Heating |
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__ Wall/Window |
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| __ Plumbing System |
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__ Septic System |
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__ Public Sewer |
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| __ Patio/Decking |
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__ Outdoor Grill |
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__ Fences |
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| __ Pool Equipment |
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__ Pool Heater |
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__ Automatic Lawn |
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| __ Fireplace(s) & |
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__ Fireplace(s) & |
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| __ Gas Lines |
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__ Gas Fixtures |
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| Garage: __ Attached |
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__ Not Attached |
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__ Carport |
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| Garage Door Opener(s): |
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__ Electronic |
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__ Control(s) |
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| Water Heater: |
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__ Gas |
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__ Electric |
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| Water Supply: __ City |
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__ Well __ MUD |
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__ Co-op |
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Roof Type: ________________________________Age: _____(approx) |
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Are you (Seller) aware of any of the above items that are not in |
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working condition, that have known defects, or that are in need of |
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repair? __ Yes __ No __ Unknown. |
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If yes, then describe. (Attach additional sheets if necessary): |
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________________________________________________________________ |
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________________________________________________________________ |
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2. Does the property have working smoke detectors installed in |
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accordance with the smoke detector requirements of Chapter 766, |
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Health and Safety Code? __Yes __No __Unknown. |
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If the answer to the question above is no or unknown, explain. |
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(Attach additional sheets if necessary): _________________________ |
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________________________________________________________________ |
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________________________________________________________________ |
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3. Are you (Seller) aware of any known defects/malfunctions in any |
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of the following? |
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Write Yes (Y) if you are aware, write No (N) if you are not aware. |
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__ Interior Walls |
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__ Ceilings |
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__ Floors |
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__ Exterior Walls |
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__ Doors |
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__ Windows |
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__ Roof |
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__ Foundation/ |
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__ Basement |
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__ Walls/Fences |
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__ Driveways |
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__ Sidewalks |
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__ Plumbing/Sewers/ |
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__ Electrical |
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__ Lighting |
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__ Other Structural Components (Describe):____________________ |
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________________________________________________________________ |
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________________________________________________________________ |
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If the answer to any of the above is yes, explain. (Attach |
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additional sheets if necessary):_____________________________ |
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________________________________________________________________ |
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________________________________________________________________ |
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4. Are you (Seller) aware of any of the following conditions? |
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Write Yes (Y) if you are aware, write No (N) if you are not aware. |
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| __ Active Termites |
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__ Previous Structural |
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| __ Termite or Wood Rot Damage |
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__ Hazardous or Toxic Waste |
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| __ Previous Termite Damage |
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__ Asbestos Components |
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| __ Previous Termite |
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__ Urea formaldehyde |
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| __ Previous Flooding |
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__ Radon Gas |
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| __ Improper Drainage |
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__ Lead Based Paint |
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| __ Water Penetration |
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__ Aluminum Wiring |
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| __ Located in 100-Year |
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__ Previous Fires |
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| __ Present Flood Insurance |
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__ Unplatted Easements |
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| __ Landfill, Settling, Soil |
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__ Subsurface |
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| Movement, Fault Lines |
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Structure or Pits |
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If the answer to any of the above is yes, explain. (Attach |
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additional sheets if necessary):_____________________________ |
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________________________________________________________________ |
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________________________________________________________________ |
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5. Are you (Seller) aware of any item, equipment, or system in or |
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on the property that is in need of repair? __ Yes (if you are |
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aware) __ No (if you are not aware). If yes, explain (attach |
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additional sheets as necessary)._________________________________ |
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6. Are you (Seller) aware of any of the following? |
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Write Yes (Y) if you aware, write No (N) if you are not aware. |
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Room additions, structural modifications, or other alterations or repairs made without necessary permits or not in compliance with building codes in effect at that time. |
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Homeowners' Association or maintenance fees or assessments. |
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Any "common area" (facilities such as pools, tennis courts, walkways, or other areas) co-owned in undivided interest with others. |
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Any notices of violations of deed restrictions or governmental ordinances affecting the condition or use of the Property. |
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Any lawsuits directly or indirectly affecting the Property. |
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Any condition on the Property which materially affects the physical health or safety of an individual. |
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If the answer to any of the above is yes, explain. (Attach |
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additional sheets if necessary):_____________________________ |
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________________________________________________________________ |
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________________________________________________________________ |
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7 [6]. If the property is located in a coastal area that is seaward |
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of the Gulf Intracoastal Waterway or within 1,000 feet of the mean |
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high tide bordering the Gulf of Mexico, the property may be subject |
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to the Open Beaches Act or the Dune Protection Act (Chapter 61 or |
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63, Natural Resources Code, respectively) and a beachfront |
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construction certificate or dune protection permit may be required |
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for repairs or improvements. Contact the local government with |
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ordinance authority over construction adjacent to public beaches |
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for more information. |
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8. The seller must check which of the following options apply: |
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_____ The seller has received notice under Section 43.052, Local |
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Government Code, from a municipality that the property is included |
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in the municipality's annexation plan and may be subject to |
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annexation by the municipality. A copy of the notice is attached. |
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_____ The seller has not received notice under Section 43.052, |
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Local Government Code, from a municipality that the property is |
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included in the municipality's annexation plan. |
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_____ The seller is not aware whether notice has been received under |
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Section 43.052, Local Government Code, from a municipality that the |
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property is included in the municipality's annexation plan. |
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_______________________________________________________ |
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Date Signature of Seller |
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The undersigned purchaser hereby acknowledges receipt of the |
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foregoing notice and acknowledges the property complies with the |
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smoke detector requirements of Chapter 766, Health and Safety Code, |
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or, if the property does not comply with the smoke detector |
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requirements of Chapter 766, the buyer waives the buyer's rights to |
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have smoke detectors installed in compliance with Chapter 766. |
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_______________________________________________________ |
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Date Signature of Purchaser |
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SECTION 2. 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 5.008 or 5.0111, as |
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applicable [has no duty to provide additional information regarding
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the possible annexation of the property by a municipality]. |
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SECTION 3. 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, a |
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seller of property that is new construction described by Section |
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5.008(e)(10) shall give written notice to a purchaser indicating |
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whether the seller has received 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 and may be subject |
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to annexation by the municipality. The seller must include a copy |
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of any notice received from the municipality by the seller under |
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Section 43.052, Local Government Code. The written notice shall |
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read substantially similar to the following: |
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NOTICE REGARDING POSSIBLE ANNEXATION |
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A seller of certain types of property is required by Section 5.0111, |
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Property Code, to give a purchaser a written notice indicating |
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whether the seller has received 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 and may be subject |
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to annexation by the municipality. In addition, the seller must |
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include a copy of any notice received. |
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The seller must check which option applies: |
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_____ The seller of the property that is the subject of this |
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contract has received notice under Section 43.052, Local Government |
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Code, from a municipality that the property is included in the |
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municipality's annexation plan and may be subject to annexation by |
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the municipality. A copy of the notice is attached. |
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_____ The seller of the property that is the subject of this |
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contract has not received notice under Section 43.052, Local |
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Government Code, from a municipality that the property is included |
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in the municipality's annexation plan. |
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_____ The seller of the property that is the subject of this |
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contract is not aware whether notice has been received under |
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Section 43.052, Local Government Code, from a municipality that the |
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property is included in the municipality's annexation plan. |
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(b) The seller shall deliver the notice to the purchaser on |
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or before the effective date of an executory contract binding the |
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purchaser to purchase the property. The notice may be given |
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separately, as part of the contract during negotiations, or as part |
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of any other notice the seller delivers to the purchaser. |
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(c) This section does not apply to a transfer described by |
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Section 5.008(e), other than a transfer described by Section |
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5.008(e)(10). |
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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 seventh 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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(e) Subsection (d) does not apply if the seller has not |
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received written notice from a municipality under Section 43.052, |
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Local Government Code, that the property is included in the |
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municipality's annexation plan. |
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SECTION 4. 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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governed by the law applicable to the transfer immediately before |
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that date, and the former law is continued in effect for that |
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purpose. For the purposes of this section, a transfer of property |
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occurs before the effective date of this Act if the contract binding |
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the purchaser to purchase the property is executed before that |
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date. |
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SECTION 5. This Act takes effect September 1, 2009. |