Texas House Bill HB1562

Texas 2021 - 87th Regular

Caption

Relating to required notice concerning special districts in certain Texas Real Estate Commission contract forms.

Impact

By amending Section 1101.155 of the Occupations Code, the bill ensures that all contract forms reflect pertinent details including the name, type, and purpose of the special district, alongside the tax rates that affect the properties. This change seeks to protect consumers and promote informed property transactions within Texas. The Texas Real Estate Commission is tasked with updating these forms to comply with the new mandates, thus reinforcing regulatory oversight in real estate dealings in special districts.

Summary

House Bill 1562 requires that certain contract forms used by the Texas Real Estate Commission for the sale and conveyance of real property located in special districts must include specific information about those districts. This update aims to enhance transparency for potential buyers regarding the nature and financial obligations associated with properties situated in such districts, particularly the ad valorem taxes or assessments imposed in the preceding tax year. The bill mandates that these requisite details be made available to buyers, empowering them with the necessary information to make informed decisions.

Contention

While the bill is designed to inform prospective buyers, discussions surrounding the bill may touch on the burdens it could impose on real estate transactions and the administrative responsibilities of the Texas Real Estate Commission to implement these updates. Potential points of contention include the effectiveness of such disclosures in genuinely aiding purchasers versus the possibility of generating complications in the real estate closure process or even affecting property values based on heightened visibility of local tax rates.