86R3070 NC-D By: Huffman S.B. No. 339 A BILL TO BE ENTITLED AN ACT relating to a seller's disclosure notice for residential property regarding floodplains, flood pools, or reservoirs. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 5.008(b), Property Code, is amended to read as follows: (b) The notice must be executed and must, at a minimum, read substantially similar to the following: SELLER'S DISCLOSURE NOTICE CONCERNING THE PROPERTY AT ___________________________________ (Street Address and City) THIS NOTICE IS A DISCLOSURE OF SELLER'S KNOWLEDGE OF THE CONDITION OF THE PROPERTY AS OF THE DATE SIGNED BY SELLER AND IS NOT A SUBSTITUTE FOR ANY INSPECTIONS OR WARRANTIES THE PURCHASER MAY WISH TO OBTAIN. IT IS NOT A WARRANTY OF ANY KIND BY SELLER OR SELLER'S AGENTS. Seller __ is __ is not occupying the Property. If unoccupied, how long since Seller has occupied the Property? ________________________________________________________________ 1. The Property has the items checked below: Write Yes (Y), No (N), or Unknown (U). __ Range __ Oven __ Microwave __ Range __ Oven __ Microwave __ Range __ Oven __ Microwave __ Dishwasher __ Trash Compactor __ Disposal __ Dishwasher __ Trash Compactor __ Disposal __ Dishwasher __ Trash Compactor __ Disposal __ Washer/Dryer __ Window __ Rain Gutters __ Washer/Dryer __ Window __ Rain Gutters __ Washer/Dryer __ Window __ Rain Gutters Hookups Screens Hookups Screens Hookups Screens __ Security __ Fire Detection __ Intercom __ Security __ Fire Detection __ Intercom __ Security __ Fire Detection __ Intercom System Equipment System System Equipment System System Equipment System __ Smoke Detector __ Smoke Detector __ Smoke Detector __ Smoke Detector - __ Smoke Detector - __ Smoke Detector - Hearing Impaired Hearing Impaired Hearing Impaired __ Carbon Monoxide __ Carbon Monoxide __ Carbon Monoxide Alarm Alarm Alarm __ Emergency Escape __ Emergency Escape __ Emergency Escape Ladder(s) Ladder(s) Ladder(s) __ TV Antenna __ Cable TV __ Satellite __ TV Antenna __ Cable TV __ Satellite __ TV Antenna __ Cable TV __ Satellite Wiring Dish Wiring Dish Wiring Dish __ Ceiling Fan(s) __ Attic Fan(s) __ Exhaust __ Ceiling Fan(s) __ Attic Fan(s) __ Exhaust __ Ceiling Fan(s) __ Attic Fan(s) __ Exhaust Fan(s) Fan(s) Fan(s) __ Central A/C __ Central Heating __ Wall/Window __ Central A/C __ Central Heating __ Wall/Window __ Central A/C __ Central Heating __ Wall/Window Air Air Air Conditioning Conditioning Conditioning __ Plumbing System __ Septic System __ Public Sewer __ Plumbing System __ Septic System __ Public Sewer __ Plumbing System __ Septic System __ Public Sewer System System System __ Patio/Decking __ Outdoor Grill __ Fences __ Patio/Decking __ Outdoor Grill __ Fences __ Patio/Decking __ Outdoor Grill __ Fences __ Pool __ Sauna __ Spa __ Pool __ Sauna __ Spa __ Pool __ Sauna __ Spa __ Hot Tub __ Hot Tub __ Hot Tub __ Pool Equipment __ Pool Heater __ Automatic Lawn __ Pool Equipment __ Pool Heater __ Automatic Lawn __ Pool Equipment __ Pool Heater __ Automatic Lawn Sprinkler Sprinkler Sprinkler System System System __ Fireplace(s) & __ Fireplace(s) & __ Fireplace(s) & __ Fireplace(s) & __ Fireplace(s) & __ Fireplace(s) & Chimney Chimney Chimney Chimney Chimney Chimney (Woodburning) (Mock) (Woodburning) (Mock) (Woodburning) (Mock) __ Natural Gas Lines __ Gas Fixtures __ Natural Gas Lines __ Gas Fixtures __ Natural Gas Lines __ Gas Fixtures __ Liquid Propane Gas: __ LP Community __ LP on Property __ Liquid Propane Gas: __ LP Community __ LP on Property __ Liquid Propane Gas: __ LP Community __ LP on Property (Captive) (Captive) (Captive) Garage: __ Attached __ Not Attached __ Carport Garage: __ Attached __ Not Attached __ Carport Garage: __ Attached __ Not Attached __ Carport Garage Door Opener(s): __ Electronic __ Control(s) Garage Door Opener(s): __ Electronic __ Control(s) Garage Door Opener(s): __ Electronic __ Control(s) Water Heater: __ Gas __ Electric Water Heater: __ Gas __ Electric Water Heater: __ Gas __ Electric Water Supply: __ City __ Well __ MUD __ Co-op Water Supply: __ City __ Well __ MUD __ Co-op Water Supply: __ City __ Well __ MUD __ Co-op Roof Type: ________________________________ Age: _____(approx) Are you (Seller) aware of any of the above items that are not in working condition, that have known defects, or that are in need of repair? __ Yes __ No __ Unknown. If yes, then describe. (Attach additional sheets if necessary): ________________________________________________________________ ________________________________________________________________ 2. Does the property have working smoke detectors installed in accordance with the smoke detector requirements of Chapter 766, Health and Safety Code?* __ Yes __ No __ Unknown. If the answer to the question above is no or unknown, explain. (Attach additional sheets if necessary): *Chapter 766 of the Health and Safety Code requires one-family or two-family dwellings to have working smoke detectors installed in accordance with the requirements of the building code in effect in the area in which the dwelling is located, including performance, location, and power source requirements. If you do not know the building code requirements in effect in your area, you may check unknown above or contact your local building official for more information. A buyer may require a seller to install smoke detectors for the hearing impaired if: (1) the buyer or a member of the buyer's family who will reside in the dwelling is hearing impaired; (2) the buyer gives the seller written evidence of the hearing impairment from a licensed physician; and (3) within 10 days after the effective date, the buyer makes a written request for the seller to install smoke detectors for the hearing impaired and specifies the locations for installation. The parties may agree who will bear the cost of installing the smoke detectors and which brand of smoke detectors to install. 3. Are you (Seller) aware of any known defects/malfunctions in any of the following? Write Yes (Y) if you are aware, write No (N) if you are not aware. __ Interior Walls __ Ceilings __ Floors __ Interior Walls __ Ceilings __ Floors __ Interior Walls __ Ceilings __ Floors __ Exterior Walls __ Doors __ Windows __ Exterior Walls __ Doors __ Windows __ Exterior Walls __ Doors __ Windows __ Roof __ Foundation/ __ Basement __ Roof __ Foundation/ __ Basement __ Roof __ Foundation/ __ Basement Slab(s) Slab(s) Slab(s) __ Walls/Fences __ Driveways __ Sidewalks __ Walls/Fences __ Driveways __ Sidewalks __ Walls/Fences __ Driveways __ Sidewalks __ Plumbing/Sewers/ __ Electrical __ Lighting __ Plumbing/Sewers/ __ Electrical __ Lighting __ Plumbing/Sewers/ __ Electrical __ Lighting Septics Systems Fixtures Septics Systems Fixtures Septics Systems Fixtures __ Other Structural Components (Describe):_______________________ ________________________________________________________________ ________________________________________________________________ If the answer to any of the above is yes, explain. (Attach additional sheets if necessary):________________________________ ________________________________________________________________ ________________________________________________________________ 4. Are you (Seller) aware of any of the following conditions? Write Yes (Y) if you are aware, write No (N) if you are not aware. __ Active Termites __ Previous Structural __ Active Termites __ Previous Structural __ Active Termites __ Previous Structural (includes or Roof Repair (includes or Roof Repair (includes or Roof Repair wood-destroying insects) wood-destroying insects) wood-destroying insects) __ Termite or Wood Rot Damage __ Hazardous or Toxic Waste __ Termite or Wood Rot Damage __ Hazardous or Toxic Waste __ Termite or Wood Rot Damage __ Hazardous or Toxic Waste Needing Repair Needing Repair Needing Repair __ Previous Termite Damage __ Asbestos Components __ Previous Termite Damage __ Asbestos Components __ Previous Termite Damage __ Asbestos Components __ Previous Termite __ Urea formaldehyde __ Previous Termite __ Urea formaldehyde __ Previous Termite __ Urea formaldehyde Treatment Insulation Treatment Insulation Treatment Insulation __ Previous Flooding __ Radon Gas __ Previous Flooding __ Radon Gas __ Previous Flooding __ Radon Gas __ Improper Drainage __ Lead Based Paint __ Improper Drainage __ Lead Based Paint __ Improper Drainage __ Lead Based Paint __ Water Penetration __ Aluminum Wiring __ Water Penetration __ Aluminum Wiring __ Water Penetration __ Aluminum Wiring [__ Located in 100-Year __ Previous Fires [__ Located in 100-Year __ Previous Fires [__ Located in 100-Year __ Previous Fires Floodplain] Floodplain] Floodplain] __ Present Flood Insurance __ Unplatted Easements __ Present Flood Insurance __ Unplatted Easements __ Present Flood Insurance __ Unplatted Easements Coverage Coverage Coverage __ Landfill, Settling, Soil __ Subsurface __ Landfill, Settling, Soil __ Subsurface __ Landfill, Settling, Soil __ Subsurface Movement, Fault Lines Structure or Pits Movement, Fault Lines Structure or Pits Movement, Fault Lines Structure or Pits __ Single Blockable Main __ Previous Use of Premises __ Single Blockable Main __ Previous Use of Premises __ Single Blockable Main __ Previous Use of Premises Drain in Pool/Hot for Manufacture of Drain in Pool/Hot for Manufacture of Drain in Pool/Hot for Manufacture of Tub/Spa* Methamphetamine Tub/Spa* Methamphetamine Tub/Spa* Methamphetamine If the answer to any of the above is yes, explain. (Attach additional sheets if necessary):________________________________ ________________________________________________________________ ________________________________________________________________ *A single blockable main drain may cause a suction entrapment hazard for an individual. 5. Are you (Seller) aware of any item, equipment, or system in or on the property that is in need of repair? __ Yes (if you are aware) __ No (if you are not aware). If yes, explain (attach additional sheets as necessary). _________________________________ 6. Are you (Seller) aware of any of the following? Write Yes (Y) if you are aware, write No (N) if you are not aware. __ Room additions, structural modifications, or other alterations or repairs made without necessary permits or not in compliance with building codes in effect at that time. __ Room additions, structural modifications, or other alterations or repairs made without necessary permits or not in compliance with building codes in effect at that time. __ Room additions, structural modifications, or other alterations or repairs made without necessary permits or not in compliance with building codes in effect at that time. __ Homeowners' Association or maintenance fees or assessments. __ Homeowners' Association or maintenance fees or assessments. __ Homeowners' Association or maintenance fees or assessments. __ Any "common area" (facilities such as pools, tennis courts, walkways, or other areas) co-owned in undivided interest with others. __ Any "common area" (facilities such as pools, tennis courts, walkways, or other areas) co-owned in undivided interest with others. __ Any "common area" (facilities such as pools, tennis courts, walkways, or other areas) co-owned in undivided interest with others. __ Any notices of violations of deed restrictions or governmental ordinances affecting the condition or use of the Property. __ Any notices of violations of deed restrictions or governmental ordinances affecting the condition or use of the Property. __ Any notices of violations of deed restrictions or governmental ordinances affecting the condition or use of the Property. __ Any lawsuits directly or indirectly affecting the Property. __ Any lawsuits directly or indirectly affecting the Property. __ Any lawsuits directly or indirectly affecting the Property. __ Any condition on the Property which materially affects the physical health or safety of an individual. __ Any condition on the Property which materially affects the physical health or safety of an individual. __ Any condition on the Property which materially affects the physical health or safety of an individual. __ Any rainwater harvesting system located on the property that is larger than 500 gallons and that uses a public water supply as an auxiliary water source. __ Any rainwater harvesting system located on the property that is larger than 500 gallons and that uses a public water supply as an auxiliary water source. __ Any rainwater harvesting system located on the property that is larger than 500 gallons and that uses a public water supply as an auxiliary water source. __ Any portion of the property that is located in a groundwater conservation district or a subsidence district. __ Any portion of the property that is located in a groundwater conservation district or a subsidence district. __ Any portion of the property that is located in a groundwater conservation district or a subsidence district. If the answer to any of the above is yes, explain. (Attach additional sheets if necessary): ______________________________ ________________________________________________________________ ________________________________________________________________ 7. If the property is located in a coastal area that is seaward of the Gulf Intracoastal Waterway or within 1,000 feet of the mean high tide bordering the Gulf of Mexico, the property may be subject to the Open Beaches Act or the Dune Protection Act (Chapter 61 or 63, Natural Resources Code, respectively) and a beachfront construction certificate or dune protection permit may be required for repairs or improvements. Contact the local government with ordinance authority over construction adjacent to public beaches for more information. 8. This property may be located near a military installation and may be affected by high noise or air installation compatible use zones or other operations. Information relating to high noise and compatible use zones is available in the most recent Air Installation Compatible Use Zone Study or Joint Land Use Study prepared for a military installation and may be accessed on the Internet website of the military installation and of the county and any municipality in which the military installation is located. _______________ ________________________________________ Date Signature of Seller The undersigned purchaser hereby acknowledges receipt of the foregoing notice. _______________ ________________________________________ Date Signature of Purchaser SECTION 2. Subchapter A, Chapter 5, Property Code, is amended by adding Section 5.020 to read as follows: Sec. 5.020. SELLER'S DISCLOSURE NOTICE OF FLOODPLAIN, FLOOD POOL, OR RESERVOIR. (a) In this section: (1) "100-year floodplain" means any area of land that is identified on a flood insurance rate map as an area that has a one percent chance of being inundated by a flood event each year. (2) "500-year floodplain" means any area of land that is identified on a flood insurance rate map as an area that has a two-tenths of one percent chance of being inundated by a flood event each year. (3) "Flood pool" means the area adjacent to a reservoir that lies above the normal maximum operating level of the reservoir and that is subject to controlled inundation under the management of the United States Army Corps of Engineers. (4) "Flood insurance rate map" means the most recent flood hazard map published by the Federal Emergency Management Agency under the National Flood Insurance Act of 1968 (42 U.S.C. Section 4001 et seq.). (5) "Reservoir" means a water impoundment project operated by the United States Army Corps of Engineers that is intended to retain water or delay the runoff of water in a designated surface area of land. (b) This section applies only to the sale of residential real property. (c) On or before the date a seller of residential real property and a purchaser enter into a contract binding the purchaser to purchase the property, the seller shall give to the purchaser a signed, written notice in substantially the following form: SELLER'S DISCLOSURE NOTICE OF FLOODPLAIN, FLOOD POOL, OR RESERVOIR Concerning the property at ______________ (street address and city) or described as ______________ (legal description): Are you (Seller) aware of any of the following conditions? Write Yes (Y), No (N), or Unknown (U). The property is located (check wholly or partly as applicable): __ ( ) wholly ( ) partly in a 100-year floodplain __ ( ) wholly ( ) partly in a 500-year floodplain __ ( ) wholly ( ) partly in a flood pool __ ( ) wholly ( ) partly in a reservoir __ within five miles downstream of a reservoir and the property: __ may flood under catastrophic circumstances __ has flooded in a flood event. For purposes of this notice: 1. "100-year floodplain" means any area of land that is identified on a flood insurance rate map as an area that has a one percent chance of being inundated by a flood event each year. 2. "500-year floodplain" means any area of land that is identified on a flood insurance rate map as an area that has a two-tenths of one percent chance of being inundated by a flood event each year. 3. "Flood pool" means the area adjacent to a reservoir that lies above the normal maximum operating level of the reservoir and that is subject to controlled inundation under the management of the United States Army Corps of Engineers. 4. "Flood insurance rate map" means the most recent flood hazard map published by the Federal Emergency Management Agency under the National Flood Insurance Act of 1968 (42 U.S.C. Section 4001 et seq.). 5. "Reservoir" means a water impoundment project operated by the United States Army Corps of Engineers that is intended to retain water or delay the runoff of water in a designated surface area of land. _______________________ (Purchaser's signature) _______________ (Date) _______________________ (Seller's signature) ______________ (Date) (d) If a contract is entered into without the seller providing the notice required by this section, the purchaser may terminate the contract for any reason within seven days after the date the purchaser receives: (1) the notice from the seller; or (2) information described by the notice under Subsection (c) from any other person. (e) After the date of the conveyance, the purchaser may bring an action for misrepresentation against the seller if the seller: (1) failed to provide the notice before the date of the conveyance; and (2) had actual knowledge that the property was located: (A) in a 100-year floodplain, 500-year floodplain, flood pool, or reservoir; or (B) within five miles downstream of a reservoir and the property has flooded in a flood event. SECTION 3. The changes in law made by this Act in amending Section 5.008, Property Code, and adding Section 5.020, Property Code, apply only to a contract for the sale of real property entered into on or after the effective date of this Act. A contract entered into before the effective date of this Act is governed by the law in effect on the date the contract was entered into, and that law is continued in effect for that purpose. SECTION 4. This Act takes effect September 1, 2019. __ Range __ Oven __ Microwave __ Dishwasher __ Trash Compactor __ Disposal __ Washer/Dryer __ Window __ Rain Gutters Hookups Screens __ Security __ Fire Detection __ Intercom System Equipment System __ Smoke Detector __ Smoke Detector - Hearing Impaired __ Carbon Monoxide Alarm __ Emergency Escape Ladder(s) __ TV Antenna __ Cable TV __ Satellite Wiring Dish __ Ceiling Fan(s) __ Attic Fan(s) __ Exhaust Fan(s) __ Central A/C __ Central Heating __ Wall/Window Air Conditioning __ Plumbing System __ Septic System __ Public Sewer System __ Patio/Decking __ Outdoor Grill __ Fences __ Pool __ Sauna __ Spa __ Hot Tub __ Pool Equipment __ Pool Heater __ Automatic Lawn Sprinkler System __ Fireplace(s) & __ Fireplace(s) & Chimney Chimney (Woodburning) (Mock) __ Natural Gas Lines __ Gas Fixtures __ Liquid Propane Gas: __ LP Community __ LP on Property (Captive) Garage: __ Attached __ Not Attached __ Carport Garage Door Opener(s): __ Electronic __ Control(s) Water Heater: __ Gas __ Electric Water Supply: __ City __ Well __ MUD __ Co-op __ Interior Walls __ Ceilings __ Floors __ Exterior Walls __ Doors __ Windows __ Roof __ Foundation/ __ Basement Slab(s) __ Walls/Fences __ Driveways __ Sidewalks __ Plumbing/Sewers/ __ Electrical __ Lighting Septics Systems Fixtures __ Active Termites __ Previous Structural (includes or Roof Repair wood-destroying insects) __ Termite or Wood Rot Damage __ Hazardous or Toxic Waste Needing Repair __ Previous Termite Damage __ Asbestos Components __ Previous Termite __ Urea formaldehyde Treatment Insulation __ Previous Flooding __ Radon Gas __ Improper Drainage __ Lead Based Paint __ Water Penetration __ Aluminum Wiring [__ Located in 100-Year __ Previous Fires Floodplain] __ Present Flood Insurance __ Unplatted Easements Coverage __ Landfill, Settling, Soil __ Subsurface Movement, Fault Lines Structure or Pits __ Single Blockable Main __ Previous Use of Premises Drain in Pool/Hot for Manufacture of Tub/Spa* Methamphetamine __ Room additions, structural modifications, or other alterations or repairs made without necessary permits or not in compliance with building codes in effect at that time. __ Homeowners' Association or maintenance fees or assessments. __ Any "common area" (facilities such as pools, tennis courts, walkways, or other areas) co-owned in undivided interest with others. __ Any notices of violations of deed restrictions or governmental ordinances affecting the condition or use of the Property. __ Any lawsuits directly or indirectly affecting the Property. __ Any condition on the Property which materially affects the physical health or safety of an individual. __ Any rainwater harvesting system located on the property that is larger than 500 gallons and that uses a public water supply as an auxiliary water source. __ Any portion of the property that is located in a groundwater conservation district or a subsidence district.