Texas Senate Bill SB1436

Texas 2019 - 86th Regular

Caption

Relating to a required notice concerning an easement or right-of-way in certain Texas Real Estate Commission contract forms.

Impact

This legislation is expected to enhance transparency in real estate transactions within Texas. By obligating real estate agents and sellers to inform buyers about easements and rights-of-way, the bill aims to protect buyers from potential financial implications that can arise from these property encumbrances. It ensures that buyers fully understand what they are purchasing and can assess how such factors might impact their investments in real estate.

Summary

SB1436 seeks to amend the Texas Occupations Code by including a new requirement for contract forms used in the sale of property. Specifically, it mandates that these forms must contain a notice regarding easements or rights-of-way that may affect the property's value. The intent behind the bill is to ensure that potential buyers are adequately informed about any existing or adjacent easements that govern the usage and maintenance of those areas, as these can significantly influence property interests and market value.

Contention

Discussions surrounding SB1436 have highlighted points of contention regarding the accessibility of this information for buyers.While proponents argue that the bill promotes informed buyer decisions and safeguards property value, critics caution that compliance with this new requirement could add complexity to the process of real estate transactions. Additionally, there are concerns regarding how effectively this information will be communicated to less experienced buyers who may not grasp the implications of easements or rights-of-way.