BILL ANALYSIS

Senate Research Center	H.B. 2468
89R8053 DRS-F	By: Harris (Parker)
	Business & Commerce
	5/9/2025
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

The 87th Legislature enacted legislation that created a notification process for the transfer of property located in public improvement districts. Among other provisions, this legislation provided for the unrestricted termination of a contract for such a property transfer if a sale is entered into without the seller providing notice regarding the property's location in a public improvement district. The bill author informed the committee that, while these changes brought welcomed transparency, there is no enforcement mechanism to ensure that the public improvement district service plan information is filed with the proper county clerk as required by law and that, if the information is not filed in the appropriate location and readily accessible, a purchaser of property should not be able to cancel the purchase agreement merely for the lack of a public improvement district location notification. H.B. 2468 seeks to remedy this situation by specifying that the right of a purchaser to terminate a contract of purchase and sale of real property if the seller fails to provide the requisite public improvement district location notice is an entitlement to terminate the contract for any reason, but not later than the seventh day after the date the purchaser receives the notice.

H.B. 2468 amends current law relating to the right of a purchaser to terminate a contract of purchase and sale of real property for failure to provide notice that the property is located in a public improvement district.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 5.0141(b), Property Code, as follows:

(b) Provides that, in the event a contract of purchase and sale is entered into without the seller providing the notice, the purchaser is entitled to terminate the contract for any reason, not later than the seventh day after the date the purchaser receives the notice. Authorizes a purchaser to terminate the contract under this subsection only if the municipality or county filed a copy of the service plan with the county clerk in accordance with Section 372.013 (Service Plan), Local Government Code, before the date the contract was entered into.

SECTION 2. Makes application of Section 5.0141, Property Code, as amended by this Act, prospective.

SECTION 3. Effective date: upon passage or September 1, 2025.