87R21915 DRS-D
By: Reynolds H.B. No. 1719
Substitute the following for H.B. No. 1719:
By: Deshotel C.S.H.B. No. 1719
A BILL TO BE ENTITLED
AN ACT
relating to a potential erosion notice to purchasers of real
property in a commercial or residential development in certain
counties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 5, Property Code, is
amended by adding Section 5.0191 to read as follows:
Sec. 5.0191. POTENTIAL EROSION NOTICE IN CERTAIN COUNTIES.
(a) This section applies only to real property located in a county
that:
(1) has a population of 585,000 or more; and
(2) is adjacent to a county with a population of four
million or more.
(b) A seller of real property that is used or intended to be
used for residential or commercial purposes and that is wholly or
partly located within 500 feet of a river or an impoundment of water
authorized under Chapter 11, Water Code, shall give to the
purchaser of the property a written notice that reads substantially
similar to the following:
NOTICE OF POTENTIAL EROSION
The property at (street address and city) or described by
(legal description) is subject to potential erosion caused by a
river or impoundment of water that may:
(1) damage the property or a building or structure
constructed on the property; or
(2) affect an area of the property that is available
for development for residential or commercial use.
(c) The seller shall deliver the notice required under
Subsection (b) to the purchaser before the effective date of an
executory contract binding the purchaser to purchase the property.
(d) If an executory contract is entered into without the
seller providing the notice required by this section, the purchaser
may terminate the contract for any reason not later than the earlier
of:
(1) the seventh day after the date the purchaser
receives:
(A) the notice from the seller; or
(B) the information about the property described
by the notice from any other person; or
(2) the date the transfer occurs as provided by the
executory contract.
(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 all or a portion of the
property was:
(A) located wholly or partly within 500 feet of a
river or an impoundment of water authorized under Chapter 11, Water
Code; and
(B) subject to potential erosion caused by the
river or impoundment of water.
SECTION 2. Section 5.0191, Property Code, as added by this
Act, applies only to a contract for the sale of real property
entered into on or after the effective date of this Act.
SECTION 3. This Act takes effect September 1, 2021.