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A BILL TO BE ENTITLED
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AN ACT
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relating to requiring the disclosure of certain information to |
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purchasers and renters of residential property in certain counties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 5, Property Code, is |
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amended by adding Section 5.019 to read as follows: |
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Sec. 5.019. SELLER'S DISCLOSURE OF TAXING AUTHORITIES AND |
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TERRITORIAL BOUNDARIES IN CERTAIN AREAS. (a) In this section: |
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(1) "Local government" means a county, municipality, |
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school district, special district, or other political subdivision |
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of this state. |
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(2) "Unincorporated enclave" means an unincorporated |
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area of a county bounded entirely by: |
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(A) the incorporated territory and the |
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extraterritorial jurisdiction of one or more municipalities; |
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(B) the incorporated territory of one or more |
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municipalities; or |
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(C) the extraterritorial jurisdiction of one or |
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more municipalities. |
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(b) This section applies only to a county that has a |
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population of more than 1.5 million and in which more than 75 |
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percent of the population lives in a single municipality. |
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(c) A seller of residential real property wholly or partly |
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located in an unincorporated enclave shall provide to the purchaser |
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of the property a written notice: |
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(1) listing: |
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(A) each taxing authority to which the property |
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is subject; and |
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(B) each local government in whose territory the |
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property is located; and |
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(2) describing the boundaries of the unincorporated |
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enclave. |
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(d) The seller shall deliver the notice required under |
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Subsection (c) to the purchaser before the effective date of an |
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executory contract binding the purchaser to purchase the |
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property. The notice may be given separately, as part of the |
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contract during negotiations, or as part of any other notice the |
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seller delivers to the purchaser. |
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(e) 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; or |
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(9) of only a mineral interest, leasehold interest, or |
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security interest. |
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(f) 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 not later than the earlier |
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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 as provided by the |
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executory contract. |
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(g) The purchaser's right to terminate the executory |
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contract under Subsection (f) is the purchaser's exclusive remedy |
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for the seller's failure to provide the notice required by this |
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section. |
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SECTION 2. Subchapter A, Chapter 92, Property Code, is |
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amended by adding Section 92.022 to read as follows: |
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Sec. 92.022. LANDLORD'S DISCLOSURE OF AVAILABILITY OF |
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MUNICIPAL SERVICES IN CERTAIN AREAS. (a) In this section, |
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"unincorporated enclave" means an unincorporated area of a county |
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bounded entirely by: |
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(1) the incorporated territory and the |
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extraterritorial jurisdiction of one or more municipalities; |
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(2) the incorporated territory of one or more |
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municipalities; or |
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(3) the extraterritorial jurisdiction of one or more |
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municipalities. |
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(b) This section applies only to a county that has a |
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population of more than 1.5 million and in which more than 75 |
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percent of the population lives in a single municipality. |
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(c) A landlord who leases property located partly in an |
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unincorporated enclave shall provide to a proposed tenant of the |
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property a written notice indicating that: |
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(1) regardless of whether the property has an address |
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including the name and zip code of a municipality, the leased |
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property is not wholly located within the incorporated territory of |
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a municipality; and |
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(2) municipal services may not be available. |
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(d) A landlord who leases property located wholly in an |
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unincorporated enclave shall provide to a proposed tenant of the |
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property a written notice indicating that: |
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(1) regardless of whether the property has an address |
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including the name and zip code of a municipality, the leased |
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property is wholly located outside the incorporated territory of a |
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municipality; and |
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(2) municipal services may not be available. |
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(e) The landlord shall deliver the notice required under |
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Subsection (c) or (d) to the proposed tenant before the effective |
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date of a lease binding the proposed tenant to lease the property. |
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The notice may be given separately, as part of the lease, or as part |
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of any other notice the landlord delivers to the proposed tenant. |
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(f) If a lease is entered into without the landlord |
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providing the notice required under Subsection (c) or (d), the |
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tenant may terminate the lease for any reason not later than the |
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earlier of: |
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(1) the seventh day after the date the tenant receives |
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the notice; or |
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(2) the effective date of the lease. |
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(g) The tenant's right to terminate the lease under |
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Subsection (f) is the tenant's exclusive remedy for the failure of |
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the landlord to provide the notice required under Subsection (c) or |
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(d). |
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SECTION 3. (a) Section 5.019, Property Code, as added by |
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this Act, applies only to an executory contract entered into on or |
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after the effective date of this Act. |
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(b) Section 92.022, Property Code, as added by this Act, |
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applies only to a lease entered into on or after the effective date |
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of this Act. |
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SECTION 4. This Act takes effect September 1, 2011. |