Texas House Bill HB3414

Texas 2021 - 87th Regular

Caption

Relating to a seller's notice of special district assessments on newly constructed residential real properties.

Impact

The bill aims to amend Chapter 5 of the Property Code by introducing Section 5.0141, which establishes these requirements on sellers. It seeks to ensure that prospective buyers are fully informed about any financial liabilities associated with their property upfront, thereby allowing for more informed purchasing decisions. The implementation of this bill is significant as it emphasizes the seller's responsibility in conveying important financial information, fostering greater accountability within real estate transactions.

Summary

House Bill 3414 proposes to enhance transparency regarding property assessments related to special districts. Specifically, it requires sellers of newly constructed residential properties located within such special districts to provide a written notice to the first purchaser. This notice must inform the buyer about their obligation to pay assessments levied by the relevant municipality or county. The notice must include essential details such as the name and purpose of the special district, previous year's tax rate, and potential consequences of not paying the assessment, including the risk of foreclosure.

Contention

One notable point of contention related to HB3414 might arise from the added responsibilities it places on sellers. While proponents argue that such transparency is necessary for consumer protection, critics may raise concerns about the potential administrative burden this could create for home builders and real estate agents. There may also be discussions regarding how effectively such notices can be presented in practice, particularly in the context of the diverse types of buyers and properties involved.