81R27033 UM-F
 
  By: Hilderbran H.B. No. 3834
 
  Substitute the following for H.B. No. 3834:
 
  By:  Smithee C.S.H.B. No. 3834
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to requiring the seller of certain real property to
  provide notice regarding the purchaser's duty to register water
  wells located or drilled on the property.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter A, Chapter 5, Property Code, is
  amended by adding Section 5.0141 to read as follows:
         Sec. 5.0141.  NOTICE OF OBLIGATION TO REGISTER WATER WELLS.  
  (a)  In this section, "district" means a groundwater conservation
  district to which Chapter 36, Water Code, is applicable, a
  subsidence district governed by Chapter 8801, Special District
  Local Laws Code, or a subsidence district established under Chapter
  1045, Acts of the 71st Legislature, Regular Session, 1989.
         (b)  A seller of real property larger than one acre any part
  of which is located in a district shall give to the purchaser of the
  property a written notice that reads substantially similar to the
  following:
  NOTICE OF OBLIGATION TO REGISTER WATER WELLS WITH THE (name of
  district)
         As a purchaser of this parcel of real property you are
  obligated to register all existing water wells located on the
  property and all water wells drilled on the property after the
  purchase of this parcel with the (name of district) as provided by
  (Chapter 36, Water Code, Chapter 8801, Special District Local Laws
  Code, or Chapter 1045, Acts of the 71st Legislature, Regular
  Session, 1989, as applicable).
         Your failure to register water wells located or drilled on
  the property with the (name of district) may be a violation of the
  district's rules or illegal drainage and may result in an action for
  damages.
 
Date: ____________________ _____________________________
 
Signature of Purchaser
         (c)  The seller shall deliver the notice required by
  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 Subsection (b) and the purchaser's signature
  on the notice may be omitted.
         (d)  This section does not apply to a transfer:
               (1)  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;
               (2)  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;
               (3)  by a fiduciary in the course of the administration
  of a decedent's estate, guardianship, conservatorship, or trust;
               (4)  from one co-owner to another co-owner of an
  undivided interest in the real property;
               (5)  to a spouse or a person in the lineal line of
  consanguinity of the seller; or
               (6)  of only a mineral interest, leasehold interest, or
  security interest.
         SECTION 2.  (a)  The change in law made by this Act applies
  only to a transfer of property that occurs on or after the effective
  date of this Act. For purposes of this section, a transfer of
  property occurs before the effective date of this Act if the
  executory contract binding the purchaser to purchase the property
  is executed before that date.
         (b)  A transfer of property before the effective date of this
  Act is governed by the law in effect immediately before the
  effective date of this Act, and that law is continued in effect for
  that purpose.
         SECTION 3.  This Act takes effect September 1, 2009.