Texas 2023 - 88th Regular

Texas House Bill HB2571

Filed
2/21/23  
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to notice of water and wastewater requirements for the foreclosure sale of residential properties by certain political subdivisions.

Impact

The bill specifically targets the foreclosure process, ensuring that public notices and deeds related to the sale of residential properties disclose crucial information regarding water and wastewater services. If passed, it will require public notices to contain explicit statements about the status of services, reinforcing accountability among sellers and providing potential buyers with essential information. The new provisions would help mitigate issues that can arise in situations where properties are sold without access to necessary utilities.

Summary

House Bill 2571 relates to the notice of water and wastewater requirements for the foreclosure sale of residential properties by certain political subdivisions in Texas. Filed at the request of Webb County, the bill amends existing legislation to clarify the obligations of counties and other political subdivisions when selling residential properties that may lack adequate water or wastewater services. This legislative change aims to ensure potential buyers are sufficiently informed about the utilities necessary for a property to qualify for residential use, thus preventing problematic situations from arising post-sale.

Sentiment

The general sentiment around HB 2571 is supportive, especially from local government representatives and advocates for community welfare, as it addresses the critical issue of providing clear information in real estate transactions. However, there may be some opposition from those who believe added requirements could complicate the foreclosure process or from sellers who might find compliance burdensome. The discussions indicate a recognition among committee members of the importance of protecting homebuyers, particularly in areas prone to issues related to inadequate infrastructure.

Contention

Notable points of contention discussed during committee meetings include concerns about the implications of mandating additional disclosures for political subdivisions involved in property sales. Some representatives worry about the burden such requirements might place on these entities and whether it could deter entities from engaging in necessary foreclosure processes. Nevertheless, the predominant view suggests that ensuring prospective buyers are informed about their potential investments outweighs any possible drawbacks associated with the imposition of these requirements.

Texas Constitutional Statutes Affected

Local Government Code

  • Chapter 232. County Regulation Of Subdivisions
    • Section: 0315
    • Section: 0315

Tax Code

  • Chapter 34. Tax Sales And Redemption
    • Section: 01
    • Section: New Section

Companion Bills

TX SB59

Identical Relating to notice of water and wastewater requirements for the foreclosure sale of residential properties by certain political subdivisions.

Previously Filed As

TX SB1924

Relating to notice of water and wastewater requirements for the foreclosure sale of residential properties by certain political subdivisions.

TX SB59

Relating to notice of water and wastewater requirements for the foreclosure sale of residential properties by certain political subdivisions.

TX HB4429

Relating to notice of water and wastewater requirements for the foreclosure sale of residential properties by certain political subdivisions.

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