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A BILL TO BE ENTITLED
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AN ACT
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relating to a seller's notice of special district ad valorem taxes |
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or assessments on newly constructed residential real properties. |
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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 5.0146 to read as follows: |
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Sec. 5.0146. NOTICE OF CERTAIN AD VALOREM TAXES OR |
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ASSESSMENTS ON NEWLY CONSTRUCTED RESIDENTIAL PROPERTIES. (a) In |
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this section, "special district" means a political subdivision of |
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this state with a limited geographic area created by local law or |
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under general law for a special purpose. |
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(b) A seller of a newly constructed residential real |
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property that is located in a special district shall give to the |
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first purchaser of the property a written notice that reads |
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substantially similar to the following: |
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NOTICE OF OBLIGATION TO PAY AD VALOREM TAX OR ASSESSMENT IMPOSED BY |
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(name of the special district) CONCERNING THE PROPERTY AT (street |
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address) |
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The property at (street address) is located in (name, type, |
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and purpose of the special district). As a purchaser of this parcel |
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of real property you are obligated to pay an ad valorem tax or |
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assessment imposed by (name of the special district). The ad |
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valorem tax rate imposed by (the special district) in the (previous |
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tax year) tax year was (previous year's tax rate). The assessment |
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rate or amount imposed by (the special district) is (assessment |
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rate or amount). More information concerning the rate of the ad |
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valorem tax or the rate or amount of the assessment and the terms of |
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payment may be obtained from the special district imposing the ad |
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valorem tax or assessment. |
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The rate of the ad valorem tax or the rate or amount of the |
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assessment is subject to change. Your failure to pay the ad valorem |
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tax or assessment could result in a lien on and the foreclosure of |
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your property. |
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_______________ ________________________________________ |
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Date Signature of Seller |
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The undersigned purchaser hereby acknowledges receipt of the |
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foregoing notice. |
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_______________ ________________________________________ |
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Date Signature of Purchaser |
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(c) The seller shall deliver the notice required under |
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Subsection (b) to the purchaser before the effective date of an |
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executory contract binding the purchaser to purchase the property. |
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The notice may be given separately, as part of the contract during |
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the negotiations, or as part of any other notice the seller delivers |
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to the purchaser. |
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(d) 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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(e) The purchaser's right to terminate the executory |
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contract under Subsection (d) 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. Section 5.0146, Property Code, as added by this |
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Act, applies only to a sale of property for which a contract is |
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entered into on or after the effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2023. |