87R21915 DRS-D
 
  By: Reynolds H.B. No. 1719
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a potential erosion notice to purchasers of real
  property in a commercial or residential development in certain
  counties.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter A, Chapter 5, Property Code, is
  amended by adding Section 5.0191 to read as follows:
         Sec. 5.0191.  POTENTIAL EROSION NOTICE IN CERTAIN COUNTIES.
  (a)  This section applies only to real property located in a county
  that:
               (1)  has a population of 585,000 or more; and
               (2)  is adjacent to a county with a population of four
  million or more.
         (b)  A seller of real property that is used or intended to be
  used for residential or commercial purposes and that is wholly or
  partly located within 500 feet of a river or an impoundment of water
  authorized under Chapter 11, Water Code, shall give to the
  purchaser of the property a written notice that reads substantially
  similar to the following:
  NOTICE OF POTENTIAL EROSION
         The property at (street address and city) or described by
  (legal description) is subject to potential erosion caused by a
  river or impoundment of water that may:
               (1)  damage the property or a building or structure
  constructed on the property; or
               (2)  affect an area of the property that is available
  for development for residential or commercial use.
         (c)  The seller shall deliver the notice required under
  Subsection (b) to the purchaser before the effective date of an
  executory contract binding the purchaser to purchase the property.
         (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 not later than the earlier
  of:
               (1)  the seventh day after the date the purchaser
  receives:
                     (A)  the notice from the seller; or
                     (B)  the information about the property described
  by the notice from any other person; or
               (2)  the date the transfer occurs as provided by the
  executory contract.
         (e)  After the date of the conveyance, the purchaser may
  bring an action for misrepresentation against the seller if the
  seller:
               (1)  failed to provide the notice before the date of the
  conveyance; and
               (2)  had actual knowledge that all or a portion of the
  property was:
                     (A)  located wholly or partly within 500 feet of a
  river or an impoundment of water authorized under Chapter 11, Water
  Code; and
                     (B)  subject to potential erosion caused by the
  river or impoundment of water.
         SECTION 2.  Section 5.0191, Property Code, as added by this
  Act, applies only to a contract for the sale of real property
  entered into on or after the effective date of this Act.
         SECTION 3.  This Act takes effect September 1, 2021.