Relating to mandatory sales price disclosure in real property sales; providing a civil penalty.
The bill imposes a civil penalty of five percent of the sales price on purchasers or parties involved in transactions that fail to comply with the sales price disclosure requirement. This penalty is enforceable through legal action from either the Texas Attorney General or the local county or district attorney. Such a move is aimed at ensuring adherence to the new regulation and serves as a deterrent against potential non-compliance. The Act is set to take effect on September 1, 2021, marking a significant change in how real estate transactions are documented at the county level.
House Bill 1101 seeks to amend the Property Code in Texas by introducing mandatory sales price disclosures for real property sales. According to the provisions laid out in the bill, any person wishing to file for record a real property conveyance must disclose the sales price of the property in question. This is intended to increase transparency in real estate transactions and provide a clearer picture of property values within the market, benefiting buyers, sellers, and regulators alike.
While HB1101 aims to improve sales transparency, potential points of contention could arise regarding the costs associated with compliance and the implications for private sales or transactions involving unique property types. Concerns may also be raised about the potential for increased regulatory burdens on real estate agents and sellers, especially in a market experiencing rapid changes in property values. Overall, the reception of this bill could vary among stakeholders within the real estate sector.