H.B. No. 3502 AN ACT relating to acknowledgements required of a purchaser of residential real property in connection with the receipt of a seller's disclosure notice regarding the property. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 5.008(b), Property Code, as amended by Chapters 448 (H.B. 271), 1051 (H.B. 2118), and 1256 (H.B. 2819), Acts of the 80th Legislature, Regular Session, 2007, is reenacted and amended to read as follows: (b) The notice must be executed and must, at a minimum, read substantially similar to the following: SELLER'S DISCLOSURE NOTICE CONCERNING THE PROPERTY AT___________________________________ (Street Address and City) THIS NOTICE IS A DISCLOSURE OF SELLER'S KNOWLEDGE OF THE CONDITION OF THE PROPERTY AS OF THE DATE SIGNED BY SELLER AND IS NOT A SUBSTITUTE FOR ANY INSPECTIONS OR WARRANTIES THE PURCHASER MAY WISH TO OBTAIN. IT IS NOT A WARRANTY OF ANY KIND BY SELLER OR SELLER'S AGENTS. Seller __ is __ is not occupying the Property. If unoccupied, how long since Seller has occupied the Property? ________________________________________________________________ 1. The Property has the items checked below: Write Yes (Y), No (N), or Unknown (U). __ Range __ Oven __ Microwave __ Range __ Oven __ Microwave __ Range __ Oven __ Microwave __ Dishwasher __ Trash Compactor __ Disposal __ Dishwasher __ Trash Compactor __ Disposal __ Dishwasher __ Trash Compactor __ Disposal __ Washer/Dryer __ Window __ Rain Gutters __ Washer/Dryer __ Window __ Rain Gutters __ Washer/Dryer __ Window __ Rain Gutters Hookups Screens Hookups Screens Hookups Screens __ Security __ Fire Detection __ Intercom __ Security __ Fire Detection __ Intercom __ Security __ Fire Detection __ Intercom System Equipment System System Equipment System System Equipment System __ Smoke Detector __ Smoke Detector __ Smoke Detector __ Smoke Detector - __ Smoke Detector - __ Smoke Detector - Hearing Impaired Hearing Impaired Hearing Impaired __ Carbon Monoxide __ Carbon Monoxide __ Carbon Monoxide Alarm Alarm Alarm __ Emergency Escape __ Emergency Escape __ Emergency Escape Ladder(s) Ladder(s) Ladder(s) __ TV Antenna __ Cable TV __ Satellite __ TV Antenna __ Cable TV __ Satellite __ TV Antenna __ Cable TV __ Satellite Wiring Dish Wiring Dish Wiring Dish __ Ceiling Fan(s) __ Attic Fan(s) __ Exhaust __ Ceiling Fan(s) __ Attic Fan(s) __ Exhaust __ Ceiling Fan(s) __ Attic Fan(s) __ Exhaust Fan(s) Fan(s) Fan(s) __ Central A/C __ Central Heating __ Wall/Window __ Central A/C __ Central Heating __ Wall/Window __ Central A/C __ Central Heating __ Wall/Window Air Air Air Conditioning Conditioning Conditioning __ Plumbing System __ Septic System __ Public Sewer __ Plumbing System __ Septic System __ Public Sewer __ Plumbing System __ Septic System __ Public Sewer System System System __ Patio/Decking __ Outdoor Grill __ Fences __ Patio/Decking __ Outdoor Grill __ Fences __ Patio/Decking __ Outdoor Grill __ Fences __ Pool __ Sauna __ Spa __ Pool __ Sauna __ Spa __ Pool __ Sauna __ Spa __ Hot Tub __ Hot Tub __ Hot Tub __ Pool Equipment __ Pool Heater __ Automatic Lawn __ Pool Equipment __ Pool Heater __ Automatic Lawn __ Pool Equipment __ Pool Heater __ Automatic Lawn Sprinkler Sprinkler Sprinkler System System System __ Fireplace(s) & __ Fireplace(s) & __ Fireplace(s) & __ Fireplace(s) & __ Fireplace(s) & __ Fireplace(s) & Chimney Chimney Chimney Chimney Chimney Chimney (Woodburning) (Mock) (Woodburning) (Mock) (Woodburning) (Mock) __ Gas Lines __ Gas Fixtures __ Gas Lines __ Gas Fixtures __ Gas Lines __ Gas Fixtures (Nat./LP) (Nat./LP) (Nat./LP) Garage: __ Attached __ Not Attached __ Carport Garage: __ Attached __ Not Attached __ Carport Garage: __ Attached __ Not Attached __ Carport Garage Door Opener(s): __ Electronic __ Control(s) Garage Door Opener(s): __ Electronic __ Control(s) Garage Door Opener(s): __ Electronic __ Control(s) Water Heater: __ Gas __ Electric Water Heater: __ Gas __ Electric Water Heater: __ Gas __ Electric Water Supply: __ City __ Well __ MUD __ Co-op Water Supply: __ City __ Well __ MUD __ Co-op Water Supply: __ City __ Well __ MUD __ Co-op Roof Type: ________________________________Age: _____(approx) Are you (Seller) aware of any of the above items that are not in working condition, that have known defects, or that are in need of repair? __ Yes __ No __ Unknown. If yes, then describe. (Attach additional sheets if necessary): ________________________________________________________________ ________________________________________________________________ 2. Does the property have working smoke detectors installed in accordance with the smoke detector requirements of Chapter 766, Health and Safety Code?* __Yes __No __Unknown. If the answer to the question above is no or unknown, explain. (Attach additional sheets if necessary): _________________________ ________________________________________________________________ ________________________________________________________________ *Chapter 766 of the Health and Safety Code requires one-family or two-family dwellings to have working smoke detectors installed in accordance with the requirements of the building code in effect in the area in which the dwelling is located, including performance, location, and power source requirements. If you do not know the building code requirements in effect in your area, you may check unknown above or contact your local building official for more information. A buyer may require a seller to install smoke detectors for the hearing impaired if: (1) the buyer or a member of the buyer's family who will reside in the dwelling is hearing impaired; (2) the buyer gives the seller written evidence of the hearing impairment from a licensed physician; and (3) within 10 days after the effective date, the buyer makes a written request for the seller to install smoke detectors for the hearing impaired and specifies the locations for installation. The parties may agree who will bear the cost of installing the smoke detectors and which brand of smoke detectors to install. 3. Are you (Seller) aware of any known defects/malfunctions in any of the following? Write Yes (Y) if you are aware, write No (N) if you are not aware. __ Interior Walls __ Ceilings __ Floors __ Interior Walls __ Ceilings __ Floors __ Interior Walls __ Ceilings __ Floors __ Exterior Walls __ Doors __ Windows __ Exterior Walls __ Doors __ Windows __ Exterior Walls __ Doors __ Windows __ Roof __ Foundation/ __ Basement __ Roof __ Foundation/ __ Basement __ Roof __ Foundation/ __ Basement Slab(s) Slab(s) Slab(s) __ Walls/Fences __ Driveways __ Sidewalks __ Walls/Fences __ Driveways __ Sidewalks __ Walls/Fences __ Driveways __ Sidewalks __ Plumbing/Sewers/ __ Electrical __ Lighting __ Plumbing/Sewers/ __ Electrical __ Lighting __ Plumbing/Sewers/ __ Electrical __ Lighting Septics Systems Fixtures Septics Systems Fixtures Septics Systems Fixtures __ Other Structural Components (Describe):____________________ ________________________________________________________________ ________________________________________________________________ If the answer to any of the above is yes, explain. (Attach additional sheets if necessary):_____________________________ ________________________________________________________________ ________________________________________________________________ 4. Are you (Seller) aware of any of the following conditions? Write Yes (Y) if you are aware, write No (N) if you are not aware. __ Active Termites __ Previous Structural __ Active Termites __ Previous Structural __ Active Termites __ Previous Structural (includes or Roof Repair (includes or Roof Repair (includes or Roof Repair wood-destroying insects) wood-destroying insects) wood-destroying insects) __ Termite or Wood Rot Damage __ Hazardous or Toxic Waste __ Termite or Wood Rot Damage __ Hazardous or Toxic Waste __ Termite or Wood Rot Damage __ Hazardous or Toxic Waste Needing Repair Needing Repair Needing Repair __ Previous Termite Damage __ Asbestos Components __ Previous Termite Damage __ Asbestos Components __ Previous Termite Damage __ Asbestos Components __ Previous Termite __ Urea formaldehyde __ Previous Termite __ Urea formaldehyde __ Previous Termite __ Urea formaldehyde Treatment Insulation Treatment Insulation Treatment Insulation __ Previous Flooding __ Radon Gas __ Previous Flooding __ Radon Gas __ Previous Flooding __ Radon Gas __ Improper Drainage __ Lead Based Paint __ Improper Drainage __ Lead Based Paint __ Improper Drainage __ Lead Based Paint __ Water Penetration __ Aluminum Wiring __ Water Penetration __ Aluminum Wiring __ Water Penetration __ Aluminum Wiring __ Located in 100-Year __ Previous Fires __ Located in 100-Year __ Previous Fires __ Located in 100-Year __ Previous Fires Floodplain Floodplain Floodplain __ Present Flood Insurance __ Unplatted Easements __ Present Flood Insurance __ Unplatted Easements __ Present Flood Insurance __ Unplatted Easements Coverage Coverage Coverage __ Landfill, Settling, Soil __ Subsurface __ Landfill, Settling, Soil __ Subsurface __ Landfill, Settling, Soil __ Subsurface Movement, Fault Lines Structure or Pits Movement, Fault Lines Structure or Pits Movement, Fault Lines Structure or Pits __ Previous Use of __ Previous Use of __ Previous Use of Premises for Premises for Premises for Manufacture of Manufacture of Manufacture of Methamphetamine Methamphetamine Methamphetamine If the answer to any of the above is yes, explain. (Attach additional sheets if necessary):_____________________________ ________________________________________________________________ ________________________________________________________________ 5. Are you (Seller) aware of any item, equipment, or system in or on the property that is in need of repair? __ Yes (if you are aware) __ No (if you are not aware). If yes, explain (attach additional sheets as necessary)._________________________________ 6. Are you (Seller) aware of any of the following? Write Yes (Y) if you aware, write No (N) if you are not aware. __ Room additions, structural modifications, or other alterations or repairs made without necessary permits or not in compliance with building codes in effect at that time. __ Room additions, structural modifications, or other alterations or repairs made without necessary permits or not in compliance with building codes in effect at that time. __ Room additions, structural modifications, or other alterations or repairs made without necessary permits or not in compliance with building codes in effect at that time. __ Homeowners' Association or maintenance fees or assessments. __ Homeowners' Association or maintenance fees or assessments. __ Homeowners' Association or maintenance fees or assessments. __ Any "common area" (facilities such as pools, tennis courts, walkways, or other areas) co-owned in undivided interest with others. __ Any "common area" (facilities such as pools, tennis courts, walkways, or other areas) co-owned in undivided interest with others. __ Any "common area" (facilities such as pools, tennis courts, walkways, or other areas) co-owned in undivided interest with others. __ Any notices of violations of deed restrictions or governmental ordinances affecting the condition or use of the Property. __ Any notices of violations of deed restrictions or governmental ordinances affecting the condition or use of the Property. __ Any notices of violations of deed restrictions or governmental ordinances affecting the condition or use of the Property. __ Any lawsuits directly or indirectly affecting the Property. __ Any lawsuits directly or indirectly affecting the Property. __ Any lawsuits directly or indirectly affecting the Property. __ Any condition on the Property which materially affects the physical health or safety of an individual. __ Any condition on the Property which materially affects the physical health or safety of an individual. __ Any condition on the Property which materially affects the physical health or safety of an individual. If the answer to any of the above is yes, explain. (Attach additional sheets if necessary):_____________________________ ________________________________________________________________ ________________________________________________________________ 7 [6]. If the property is located in a coastal area that is seaward of the Gulf Intracoastal Waterway or within 1,000 feet of the mean high tide bordering the Gulf of Mexico, the property may be subject to the Open Beaches Act or the Dune Protection Act (Chapter 61 or 63, Natural Resources Code, respectively) and a beachfront construction certificate or dune protection permit may be required for repairs or improvements. Contact the local government with ordinance authority over construction adjacent to public beaches for more information. _______________________________________________________ Date Signature of Seller The undersigned purchaser hereby acknowledges receipt of the foregoing notice [and acknowledges the property complies with the smoke detector requirements of Chapter 766, Health and Safety Code, or, if the property does not comply with the smoke detector requirements of Chapter 766, the buyer waives the buyer's rights to have smoke detectors installed in compliance with Chapter 766]. _______________________________________________________ Date Signature of Purchaser SECTION 2. The change in law made by this Act to Section 5.008, Property Code, applies only to a notice executed on or after the effective date of this Act. A notice executed before the effective date of this Act is governed by the law in effect immediately before that date, and that law is continued in effect for that purpose. SECTION 3. This Act takes effect January 1, 2010. ______________________________ ______________________________ President of the Senate Speaker of the House I certify that H.B. No. 3502 was passed by the House on May 6, 2009, by the following vote: Yeas 145, Nays 0, 2 present, not voting; and that the House concurred in Senate amendments to H.B. No. 3502 on May 29, 2009, by the following vote: Yeas 143, Nays 2, 1 present, not voting. ______________________________ Chief Clerk of the House I certify that H.B. No. 3502 was passed by the Senate, with amendments, on May 26, 2009, by the following vote: Yeas 31, Nays 0. ______________________________ Secretary of the Senate APPROVED: __________________ Date __________________ Governor __ Range __ Oven __ Microwave __ Dishwasher __ Trash Compactor __ Disposal __ Washer/Dryer __ Window __ Rain Gutters Hookups Screens __ Security __ Fire Detection __ Intercom System Equipment System __ Smoke Detector __ Smoke Detector - Hearing Impaired __ Carbon Monoxide Alarm __ Emergency Escape Ladder(s) __ TV Antenna __ Cable TV __ Satellite Wiring Dish __ Ceiling Fan(s) __ Attic Fan(s) __ Exhaust Fan(s) __ Central A/C __ Central Heating __ Wall/Window Air Conditioning __ Plumbing System __ Septic System __ Public Sewer System __ Patio/Decking __ Outdoor Grill __ Fences __ Pool __ Sauna __ Spa __ Hot Tub __ Pool Equipment __ Pool Heater __ Automatic Lawn Sprinkler System __ Fireplace(s) & __ Fireplace(s) & Chimney Chimney (Woodburning) (Mock) __ Gas Lines __ Gas Fixtures (Nat./LP) Garage: __ Attached __ Not Attached __ Carport Garage Door Opener(s): __ Electronic __ Control(s) Water Heater: __ Gas __ Electric Water Supply: __ City __ Well __ MUD __ Co-op __ Interior Walls __ Ceilings __ Floors __ Exterior Walls __ Doors __ Windows __ Roof __ Foundation/ __ Basement Slab(s) __ Walls/Fences __ Driveways __ Sidewalks __ Plumbing/Sewers/ __ Electrical __ Lighting Septics Systems Fixtures __ Active Termites __ Previous Structural (includes or Roof Repair wood-destroying insects) __ Termite or Wood Rot Damage __ Hazardous or Toxic Waste Needing Repair __ Previous Termite Damage __ Asbestos Components __ Previous Termite __ Urea formaldehyde Treatment Insulation __ Previous Flooding __ Radon Gas __ Improper Drainage __ Lead Based Paint __ Water Penetration __ Aluminum Wiring __ Located in 100-Year __ Previous Fires Floodplain __ Present Flood Insurance __ Unplatted Easements Coverage __ Landfill, Settling, Soil __ Subsurface Movement, Fault Lines Structure or Pits __ Previous Use of Premises for Manufacture of Methamphetamine __ Room additions, structural modifications, or other alterations or repairs made without necessary permits or not in compliance with building codes in effect at that time. __ Homeowners' Association or maintenance fees or assessments. __ Any "common area" (facilities such as pools, tennis courts, walkways, or other areas) co-owned in undivided interest with others. __ Any notices of violations of deed restrictions or governmental ordinances affecting the condition or use of the Property. __ Any lawsuits directly or indirectly affecting the Property. __ Any condition on the Property which materially affects the physical health or safety of an individual.