Texas 2009 - 81st Regular

Texas House Bill HB570 Compare Versions

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1	1	81R18064 PAM-D
2	2	By: McClendon H.B. No. 570
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to requiring the disclosure of certain information to
8	8	purchasers and renters of residential property.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subchapter A, Chapter 5, Property Code, is
11	11	amended by adding Section 5.019 to read as follows:
12	12	Sec. 5.019. SELLER'S DISCLOSURE OF TAXING AUTHORITIES AND
13	13	TERRITORIAL BOUNDARIES IN CERTAIN AREAS. (a) In this section:
14	14	(1) "Local government" means a county, municipality,
15	15	school district, special district, or other political subdivision
16	16	of this state.
17	17	(2) "Unincorporated enclave" means an unincorporated
18	18	area of a county bounded entirely by:
19	19	(A) the incorporated territory and the
20	20	extraterritorial jurisdiction of one or more municipalities;
21	21	(B) the incorporated territory of one or more
22	22	municipalities; or
23	23	(C) the extraterritorial jurisdiction of one or
24	24	more municipalities.
25	25	(b) This section applies only to a county that has a
26	26	population of more than one million and in which more than 80
27	27	percent of the population lives in a single municipality.
28	28	(c) A seller of residential real property wholly or partly
29	29	located in an unincorporated enclave shall provide to the purchaser
30	30	of the property a written notice:
31	31	(1) listing:
32	32	(A) each taxing authority to which the property
33	33	is subject; and
34	34	(B) each local government in whose territory the
35	35	property is located; and
36	36	(2) describing the boundaries of the unincorporated
37	37	enclave.
38	38	(d) The seller shall deliver the notice required under
39	39	Subsection (c) to the purchaser before the effective date of an
40	40	executory contract binding the purchaser to purchase the
41	41	property. The notice may be given separately, as part of the
42	42	contract during negotiations, or as part of any other notice the
43	43	seller delivers to the purchaser.
44	44	(e) This section does not apply to a transfer:
45	45	(1) under a court order or foreclosure sale;
46	46	(2) by a trustee in bankruptcy;
47	47	(3) to a mortgagee by a mortgagor or successor in
48	48	interest or to a beneficiary of a deed of trust by a trustor or
49	49	successor in interest;
50	50	(4) by a mortgagee or a beneficiary under a deed of
51	51	trust who has acquired the land at a sale conducted under a power of
52	52	sale under a deed of trust or a sale under a court-ordered
53	53	foreclosure or has acquired the land by a deed in lieu of
54	54	foreclosure;
55	55	(5) by a fiduciary in the course of the administration
56	56	of a decedent's estate, guardianship, conservatorship, or trust;
57	57	(6) from one co-owner to another co-owner of an
58	58	undivided interest in the real property;
59	59	(7) to a spouse or a person in the lineal line of
60	60	consanguinity of the seller;
61	61	(8) to or from a governmental entity; or
62	62	(9) of only a mineral interest, leasehold interest, or
63	63	security interest.
64	64	(f) If an executory contract is entered into without the
65	65	seller providing the notice required by this section, the purchaser
66	66	may terminate the contract for any reason not later than the earlier
67	67	of:
68	68	(1) the seventh day after the date the purchaser
69	69	receives the notice; or
70	70	(2) the date the transfer occurs as provided by the
71	71	executory contract.
72	72	(g) The purchaser's right to terminate the executory
73	73	contract under Subsection (f) is the purchaser's exclusive remedy
74	74	for the seller's failure to provide the notice required by this
75	75	section.
76	76	SECTION 2. Subchapter A, Chapter 92, Property Code, is
77	77	amended by adding Section 92.021 to read as follows:
78	78	Sec. 92.021. LANDLORD'S DISCLOSURE OF TAXING AUTHORITIES
79	79	AND TERRITORIAL BOUNDARIES IN CERTAIN AREAS. (a) In this section:
80	80	(1) "Local government" means a county, municipality,
81	81	school district, special district, or other political subdivision
82	82	of this state.
83	83	(2) "Unincorporated enclave" means an unincorporated
84	84	area of a county bounded entirely by:
85	85	(A) the incorporated territory and the
86	86	extraterritorial jurisdiction of one or more municipalities;
87	87	(B) the incorporated territory of one or more
88	88	municipalities; or
89	89	(C) the extraterritorial jurisdiction of one or
90	90	more municipalities.
91	91	(b) This section applies only to a county that has a
92	92	population of more than one million and in which more than 80
93	93	percent of the population lives in a single municipality.
94	94	(c) A landlord who leases property located partly in an
95	95	unincorporated enclave shall provide to a proposed tenant of the
96	96	property a written notice indicating that the leased property is
97	97	not wholly located within the incorporated territory of a
98	98	municipality and that municipal services may not be available.
99	99	(d) A landlord who leases property located wholly in an
100	100	unincorporated enclave shall provide to a proposed tenant of the
101	101	property a written notice indicating that the leased property is
102	102	wholly located outside the incorporated territory of a municipality
103	103	and that municipal services may not be available.
104	104	(e) The landlord shall deliver the notice required under
105	105	Subsection (c) or (d) to the proposed tenant before the effective
106	106	date of a lease binding the proposed tenant to lease the property.
107	107	The notice may be given separately, as part of the lease, or as part
108	108	of any other notice the landlord delivers to the proposed tenant.
109	109	(f) If a lease is entered into without the landlord
110	110	providing the notice required under Subsection (c) or (d), the
111	111	tenant may terminate the lease for any reason not later than the
112	112	earlier of:
113	113	(1) the seventh day after the date the tenant receives
114	114	the notice; or
115	115	(2) the effective date of the lease.
116	116	(g) The tenant's right to terminate the lease under
117	117	Subsection (f) is the tenant's exclusive remedy for the failure of
118	118	the landlord to provide the notice required under Subsection (c) or
119	119	(d).
120	120	SECTION 3. (a) Section 5.019, Property Code, as added by
121	121	this Act, applies only to an executory contract entered into on or
122	122	after the effective date of this Act.
123	123	(b) Section 92.021, Property Code, as added by this Act,
124	124	applies only to a lease entered into on or after the effective date
125	125	of this Act.
126	126	SECTION 4. This Act takes effect September 1, 2009.