Relating to the disclosure by a seller of certain real property to the purchaser of the property of information regarding the process for obtaining a permit from the Texas Commission on Environmental Quality for the storage, taking, or diversion of state water.
Impact
The implementation of HB3467 will result in amendments to existing property and water laws in Texas. Specifically, it introduces Section 5.0111 to the Property Code, requiring compliance from sellers when selling properties near state water sources. The legislation also makes adjustments to Section 11.121 of the Water Code to align with the new disclosure process. This could significantly affect real estate transactions by imposing additional responsibilities on sellers and enhancing transparency for buyers concerning water rights.
Summary
House Bill 3467 focuses on the disclosure requirements for the sale of real property in Texas that is adjacent to or contains state water. The bill mandates that sellers provide written notice to purchasers regarding the process of obtaining a permit from the Texas Commission on Environmental Quality (TCEQ) for the appropriation of state water. This legislative measure aims to ensure that prospective buyers are fully informed about water rights and any associated regulatory processes before completing their property transaction.
Contention
While the bill strives to tackle information asymmetry in real estate transactions, there may be some contention regarding its potential impact on the real estate market. Critics might argue that increased disclosure requirements could complicate property sales or deter potential buyers who may be baffled by the regulatory stipulations involved. On the other hand, proponents assert that this bill emphasizes the importance of environmental stewardship and responsible use of water resources, ultimately benefiting buyers and the community by fostering informed decision-making.