Texas House Bill HB2260

Texas 2023 - 88th Regular

• Filed: 2/13/23

Caption

Relating to a seller's disclosure of the location of certain real property in a floodplain.

Impact

The enactment of HB2260 will modify Texas state property law by introducing mandatory disclosure requirements for property sellers regarding floodplain locations. This change seeks to protect homebuyers from potential flooding risks by ensuring they have access to relevant data before completing a purchase. The bill also grants purchasers the right to seek damages from the seller for flooding-related issues occurring within five years of the purchase if the necessary disclosures were not provided. Such legal provisions could significantly influence the dynamics of real property transactions and seller responsibilities in flood-prone areas.

Summary

House Bill 2260 aims to enhance transparency in real estate transactions involving properties located in designated floodplain areas. The bill requires sellers of certain real property, defined as less than 15 acres and not having a residence at the time of the sale, to disclose in writing whether any part of the property lies within a '100-year floodplain.' This includes the necessity of providing a current flood insurance rate map that outlines the floodplain areas, thus offering prospective buyers critical information to make informed decisions. The bill emphasizes the importance of this disclosure ahead of the effective date of any binding contract.

Sentiment

The general sentiment surrounding HB2260 appears to be positive, as it is designed to enhance consumer protection for homebuyers in Texas. Supporters argue that this bill will lead to more informed purchasing decisions and ultimately safeguard the investments of individuals purchasing property in floodplains. However, the bill may invite some resistance from real estate sellers concerned about increased obligations and potential liability. Overall, the dialogue points to a recognized need for better flood risk communication in the real estate market.

Contention

Potential points of contention may arise regarding the scope of the bill, particularly in terms of compliance and the adequacy of the disclosures required. Stakeholders may question how strictly these requirements will be enforced and whether all sellers can access and accurately interpret the necessary mapping information. Furthermore, discussions could focus on whether the provisions appropriately balance the need for disclosure without imposing excessive burdens on sellers. These factors could lead to contentious debates regarding how best to protect consumers while not stifling real estate transactions in potentially vulnerable areas.

Texas Constitutional Statutes Affected

Property Code

• Chapter 5. Conveyances
  • Section: New Section