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A BILL TO BE ENTITLED
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AN ACT
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relating to requiring the seller of unimproved real property to |
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disclose if the property is in a floodplain. |
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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 5.0131 to read as follows: |
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Sec. 5.0131. SELLER'S DISCLOSURE REGARDING UNIMPROVED REAL |
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PROPERTY IN FLOODPLAIN. (a) In this section, "floodplain" means an |
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area of land designated by the Federal Emergency Management Agency |
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(FEMA) under the National Flood Insurance Act of 1968 (42 U.S.C. |
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Section 4001 et seq.) to be a special or moderate flood hazard area. |
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(b) A seller of unimproved real property located in this |
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state shall provide to the purchaser of the property a written |
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notice disclosing whether any part of the property is located in a |
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floodplain. The disclosure must be substantially equivalent to the |
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following: |
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"(Seller) ( ) is aware or ( ) is not aware that the unimproved |
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real property that you are purchasing is located wholly or partly in |
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a floodplain. A floodplain is an area of land designated by the |
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Federal Emergency Management Agency (FEMA) to be a special or |
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moderate flood hazard area. If neither box is checked, you should |
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assume all or part of the property is located in a floodplain." |
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(c) The notice must be delivered by the seller on or before |
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the effective date of an executory contract binding the purchaser |
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to purchase the property. If a contract is entered into without the |
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seller providing the notice as required by this section, the |
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purchaser may terminate the contract for any reason not later than |
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the seventh day after the effective date of the contract. |
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(d) This section applies to any seller of unimproved real |
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property, including a seller who is the developer of the property |
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and who sells the property to others for resale. |
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SECTION 2. The changes in law made by this Act apply only to |
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a contract for the sale of real property entered into on or after |
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the effective date of this Act. A contract entered into before the |
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effective date of this Act is governed by the law in effect on the |
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date the contract was entered into, and that law is continued in |
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effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2025. |