82R9838 TJS-D
By: Christian H.B. No. 3483
A BILL TO BE ENTITLED
AN ACT
relating to seller's disclosure regarding the presence of
contaminants on residential real 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 5.019 to read as follows:
Sec. 5.019. SELLER'S DISCLOSURE REGARDING CONTAMINATION.
(a) A person who sells an interest in residential real property in
this state shall give to the purchaser of the property written
notice that specifies the nature of any contamination on or under
the property, including the contaminant, the source, if known, and
the location and extent of the contamination.
(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 within the earlier of:
(1) seven days after the date the purchaser receives
the notice; or
(2) the date the transfer occurs.
SECTION 2. 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 an executory
contract binding the purchaser to purchase the property is executed
before that date. Property transferred 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, 2011.