By: Hilderbran (Senate Sponsor - Fraser) H.B. No. 3834
(In the Senate - Received from the House May 18, 2009;
May 19, 2009, read first time and referred to Committee on Natural
Resources; May 23, 2009, reported favorably by the following vote:
Yeas 9, Nays 0; May 23, 2009, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to requiring the seller of certain real property to
provide notice regarding the purchaser's duty to register water
wells located or drilled on the property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 5, Property Code, is
amended by adding Section 5.0141 to read as follows:
Sec. 5.0141. NOTICE OF OBLIGATION TO REGISTER WATER WELLS.
(a) In this section, "district" means a groundwater conservation
district to which Chapter 36, Water Code, is applicable, a
subsidence district governed by Chapter 8801, Special District
Local Laws Code, or a subsidence district established under Chapter
1045, Acts of the 71st Legislature, Regular Session, 1989.
(b) A seller of real property larger than one acre any part
of which is located in a district shall give to the purchaser of the
property a written notice that reads substantially similar to the
following:
NOTICE OF OBLIGATION TO REGISTER WATER WELLS WITH THE (name of
district)
As a purchaser of this parcel of real property you are
obligated to register all existing water wells located on the
property and all water wells drilled on the property after the
purchase of this parcel with the (name of district) as provided by
(Chapter 36, Water Code, Chapter 8801, Special District Local Laws
Code, or Chapter 1045, Acts of the 71st Legislature, Regular
Session, 1989, as applicable).
Your failure to register water wells located or drilled on
the property with the (name of district) may be a violation of the
district's rules or illegal drainage and may result in an action for
damages.
Date: ____________________ _____________________________ Date: ____________________ _____________________________
Date: ____________________ _____________________________
Signature of Purchaser Signature of Purchaser
Signature of Purchaser
(c) The seller shall deliver the notice required by
Subsection (b) to the purchaser before the effective date of an
executory contract binding 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. If the notice is included as part of the executory
contract or another notice, the title of the notice prescribed by
Subsection (b) and the purchaser's signature on the notice may be
omitted.
(d) This section does not apply to a transfer:
(1) 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;
(2) 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;
(3) by a fiduciary in the course of the administration
of a decedent's estate, guardianship, conservatorship, or trust;
(4) from one co-owner to another co-owner of an
undivided interest in the real property;
(5) to a spouse or a person in the lineal line of
consanguinity of the seller; or
(6) of only a mineral interest, leasehold interest, or
security interest.
SECTION 2. (a) The change in law made by this Act applies
only to a transfer of property that occurs on or after the effective
date of this Act. For purposes of this section, a transfer of
property occurs before the effective date of this Act if the
executory contract binding the purchaser to purchase the property
is executed before that date.
(b) A transfer of property before the effective date of this
Act is governed by the law in effect immediately before the
effective date of this Act, and that law is continued in effect for
that purpose.
SECTION 3. This Act takes effect September 1, 2009.
* * * * *
Date: ____________________ _____________________________
Signature of Purchaser