Relating to requiring notices of property located in floodplains, flood pools, or reservoirs to be provided by sellers of real property and on subdivision plats.
The bill modifies several sections of the Local Government Code and the Property Code, impacting how properties in flood-prone areas are treated in real estate transactions. Local governments will need to comply with these new disclosure requirements when recording subdivision plats and will need to ascertain compliance with the National Flood Insurance Program. The changes are set to apply to real estate contracts executed after the bill’s effective date, making prior contracts subject to the old regulations.
House Bill 3839 mandates that notifications regarding properties situated in floodplains, flood pools, or reservoirs must be provided by sellers when selling real estate. Specifically, it emphasizes the requirement for detailed disclosures on subdivision plats and entails a certification from a registered surveyor or engineer, confirming whether any part of the property falls within a defined flood zone. These provisions aim to ensure potential buyers are well-informed about any risks associated with flooding before completing their purchase.
One point of contention surrounding HB 3839 relates to the enforcement of disclosure requirements and the responsibility placed on property sellers. Critics argue that such mandates may increase costs and bureaucratic obstacles for sellers, potentially discouraging transactions in flood-prone regions. Supporters, however, contend that these disclosures are vital for consumer protection, ensuring that buyers have a clear understanding of the potential hazards associated with their prospective properties.