| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to seller's disclosure regarding the presence of |
|
|
contaminants on residential real 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 5.019 to read as follows: |
|
|
Sec. 5.019. SELLER'S DISCLOSURE REGARDING CONTAMINATION. |
|
|
(a) A person who sells an interest in residential real property in |
|
|
this state shall give to the purchaser of the property written |
|
|
notice that specifies the nature of any contamination on or under |
|
|
the property, including the contaminant, the source, if known, and |
|
|
the location and extent of the contamination. |
|
|
(b) The seller shall deliver the notice to the purchaser |
|
|
before the date the executory contract binds 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. |
|
|
(c) This section does not apply to a transfer: |
|
|
(1) under a court order or foreclosure sale; |
|
|
(2) by a trustee in bankruptcy; |
|
|
(3) 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; |
|
|
(4) 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; |
|
|
(5) by a fiduciary in the course of the administration |
|
|
of a decedent's estate, guardianship, conservatorship, or trust; |
|
|
(6) from one co-owner to another co-owner of an |
|
|
undivided interest in the real property; |
|
|
(7) to a spouse or a person in the lineal line of |
|
|
consanguinity of the seller; |
|
|
(8) to or from a governmental entity; |
|
|
(9) of only a mineral interest, leasehold interest, or |
|
|
security interest; or |
|
|
(10) of real property that is located wholly within a |
|
|
municipality's corporate boundaries. |
|
|
(d) If an executory contract is entered into without the |
|
|
seller providing the notice required by this section, the purchaser |
|
|
may terminate the contract for any reason within the earlier of: |
|
|
(1) seven days after the date the purchaser receives |
|
|
the notice; or |
|
|
(2) the date the transfer occurs. |
|
|
SECTION 2. 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 an executory |
|
|
contract binding the purchaser to purchase the property is executed |
|
|
before that date. Property transferred 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, 2011. |