81R1406 AJA-D
By: Leibowitz H.B. No. 28
A BILL TO BE ENTITLED
AN ACT
relating to requiring notice by a seller of real property of
potential annexation of the property by a municipality.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 5.011(d), Property Code, is amended to
read as follows:
(d) In addition to the [If the] notice required by [is
delivered as provided by] this section, the seller is required to
provide the notice required by Section 5.0111 [has no duty to
provide additional information regarding the possible annexation
of the property by a municipality].
SECTION 2. Subchapter A, Chapter 5, Property Code, is
amended by adding Section 5.0111 to read as follows:
Sec. 5.0111. SELLER'S DISCLOSURE REGARDING ANNEXATION
PLAN. (a) In addition to the notice required by Section 5.011, a
seller of property shall give written notice to a purchaser
indicating whether the seller has received notice from a
municipality under Section 43.052, Local Government Code, that the
property is included in the municipality's annexation plan and may
be subject to annexation by the municipality. The seller must
include a copy of any notice received from the municipality by the
seller under Section 43.052, Local Government Code. The written
notice shall read substantially similar to the following:
NOTICE REGARDING POSSIBLE ANNEXATION
A seller of property is required by Section 5.0111, Property Code,
to give a purchaser a written notice indicating whether the seller
has received notice from a municipality under Section 43.052, Local
Government Code, that the property is included in the
municipality's annexation plan and may be subject to annexation by
the municipality. In addition, the seller must include a copy of
any notice received.
The seller must check which option applies:
_____ The seller of the property that is the subject of this
contract has received notice under Section 43.052, Local Government
Code, from a municipality that the property is included in the
municipality's annexation plan and may be subject to annexation by
the municipality. A copy of the notice is attached.
_____ The seller of the property that is the subject of this
contract has not received notice under Section 43.052, Local
Government Code, from a municipality that the property is included
in the municipality's annexation plan.
_____ The seller of the property that is the subject of this
contract is not aware whether notice has been received under
Section 43.052, Local Government Code, from a municipality that the
property is included in the municipality's annexation plan.
(b) The seller shall deliver the notice to the purchaser
before the date the executory contract binds the purchaser to
purchase the property. The notice may be given separately, as part
of the contract during negotiations, or as part of any other notice
the seller delivers to the purchaser.
(c) This section does not apply to a transfer:
(1) under a court order or foreclosure sale;
(2) by a trustee in bankruptcy;
(3) to a mortgagee by a mortgagor or successor in
interest or to a beneficiary of a deed of trust by a trustor or
successor in interest;
(4) by a mortgagee or a beneficiary under a deed of
trust who has acquired the land at a sale conducted under a power of
sale under a deed of trust or a sale under a court-ordered
foreclosure or has acquired the land by a deed in lieu of
foreclosure;
(5) by a fiduciary in the course of the administration
of a decedent's estate, guardianship, conservatorship, or trust;
(6) from one co-owner to another co-owner of an
undivided interest in the real property;
(7) to a spouse or a person in the lineal line of
consanguinity of the seller;
(8) to or from a governmental entity;
(9) of only a mineral interest, leasehold interest, or
security interest; or
(10) of real property that is located wholly within a
municipality's corporate boundaries.
(d) If an executory contract is entered into without the
seller providing the notice required by this section, the purchaser
may terminate the contract for any reason before the earlier of:
(1) the seventh day after the date the purchaser
receives the notice; or
(2) the date the transfer occurs.
(e) Subsection (d) does not apply if the seller has not
received written notice from a municipality under Section 43.052,
Local Government Code, that the property is included in the
municipality's annexation plan.
SECTION 3. This Act applies only to a transfer of property
that occurs on or after the effective date of this Act. A transfer
of property that occurs before the effective date of this Act is
governed by the law applicable to the transfer immediately before
that date, and the former law is continued in effect for that
purpose. For the purposes of this section, a transfer of property
occurs before the effective date of this Act if the contract binding
the purchaser to purchase the property is executed before that
date.
SECTION 4. This Act takes effect September 1, 2009.