Texas House Bill HB1036

Texas 2019 - 86th Regular

Caption

Relating to mandatory sales price disclosure in real property sales; providing a civil penalty.

Impact

The bill amends the Texas Property Code by adding specific provisions that mandate the disclosure of sales prices during property transactions. With this change, all parties involved in the sale of real estate must ensure that their documentation includes the sale price prior to any official recording. Failure to comply will expose the purchaser to a civil penalty equal to five percent of the sales price, which serves as a deterrent against non-disclosure and promotes accountability in property sales.

Summary

House Bill 1036 introduces a requirement for mandatory sales price disclosure in real property sales within Texas. Under this legislation, any person who files a conveyance instrument in the county clerk's office that fails to disclose the sales price will face civil penalties. This aims to enhance transparency in real estate transactions, ensuring that buyers and the state are informed of the actual sales price of properties being conveyed.

Contention

While the bill is designed to foster transparency and provide the state with better data on property sales for taxation and regulatory purposes, there are potential concerns about its implications for privacy and the burden it places on individuals looking to sell real estate. Critics may argue that mandatory disclosure could deter certain transactions or impose unnecessary compliance costs. Conversely, supporters are likely to advocate that increased transparency benefits the market and helps prevent fraud and misrepresentation in property dealings.