81R9977 UM-F
 
  By: Hilderbran 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)  A seller of real property that is located in a groundwater
  conservation district established under Chapter 36, Water Code, and
  that is larger than one acre 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
  groundwater conservation 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 groundwater conservation
  district) as provided by Sections 36.111, 36.112, and 36.117(h)(1),
  Water Code.
         Your failure to register water wells located or drilled on
  the property with the (name of groundwater conservation district)
  may be a violation of the district's rules or illegal drainage and
  may result in an action for damages as provided by Section 36.119,
  Water Code.
 
Date: ____________________ _____________________________
 
Signature of Purchaser
         (b)  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 (a) and the purchaser's signature
  on the notice may be omitted.
         (c)  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.