| 3 | 5 | | |
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| 4 | 6 | | |
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| 5 | 7 | | A BILL TO BE ENTITLED |
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| 6 | 8 | | AN ACT |
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| 7 | 9 | | relating to a potential erosion notice to purchasers of real |
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| 8 | 10 | | property in a commercial or residential development in certain |
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| 9 | 11 | | counties. |
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| 10 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 13 | | SECTION 1. Subchapter A, Chapter 5, Property Code, is |
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| 12 | 14 | | amended by adding Section 5.0191 to read as follows: |
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| 13 | 15 | | Sec. 5.0191. POTENTIAL EROSION NOTICE IN CERTAIN COUNTIES. |
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| 14 | 16 | | (a) This section applies only to real property located in a county |
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| 15 | 17 | | that: |
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| 16 | 18 | | (1) has a population of 585,000 or more; and |
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| 17 | 19 | | (2) is adjacent to a county with a population of four |
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| 18 | 20 | | million or more. |
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| 19 | 21 | | (b) A seller of real property that is used or intended to be |
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| 20 | 22 | | used for residential or commercial purposes and that is wholly or |
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| 21 | 23 | | partly located within 500 feet of a river or an impoundment of water |
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| 22 | 24 | | authorized under Chapter 11, Water Code, shall give to the |
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| 23 | 25 | | purchaser of the property a written notice that reads substantially |
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| 24 | 26 | | similar to the following: |
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| 25 | 27 | | NOTICE OF POTENTIAL EROSION |
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| 26 | 28 | | The property at (street address and city) or described by |
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| 27 | 29 | | (legal description) is subject to potential erosion caused by a |
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| 28 | 30 | | river or impoundment of water that may: |
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| 29 | 31 | | (1) damage the property or a building or structure |
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| 30 | 32 | | constructed on the property; or |
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| 31 | 33 | | (2) affect an area of the property that is available |
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| 32 | 34 | | for development for residential or commercial use. |
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| 33 | 35 | | (c) The seller shall deliver the notice required under |
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| 34 | 36 | | Subsection (b) to the purchaser before the effective date of an |
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| 35 | 37 | | executory contract binding the purchaser to purchase the property. |
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| 36 | 38 | | (d) If an executory contract is entered into without the |
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| 37 | 39 | | seller providing the notice required by this section, the purchaser |
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| 38 | 40 | | may terminate the contract for any reason not later than the earlier |
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| 39 | 41 | | of: |
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| 40 | 42 | | (1) the seventh day after the date the purchaser |
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| 41 | 43 | | receives: |
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| 42 | 44 | | (A) the notice from the seller; or |
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| 43 | 45 | | (B) the information about the property described |
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| 44 | 46 | | by the notice from any other person; or |
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| 45 | 47 | | (2) the date the transfer occurs as provided by the |
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| 46 | 48 | | executory contract. |
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| 47 | 49 | | (e) After the date of the conveyance, the purchaser may |
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| 48 | 50 | | bring an action for misrepresentation against the seller if the |
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| 49 | 51 | | seller: |
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| 50 | 52 | | (1) failed to provide the notice before the date of the |
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| 51 | 53 | | conveyance; and |
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| 52 | 54 | | (2) had actual knowledge that all or a portion of the |
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| 53 | 55 | | property was: |
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| 54 | 56 | | (A) located wholly or partly within 500 feet of a |
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| 55 | 57 | | river or an impoundment of water authorized under Chapter 11, Water |
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| 56 | 58 | | Code; and |
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| 57 | 59 | | (B) subject to potential erosion caused by the |
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| 58 | 60 | | river or impoundment of water. |
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| 59 | 61 | | SECTION 2. Section 5.0191, Property Code, as added by this |
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| 60 | 62 | | Act, applies only to a contract for the sale of real property |
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| 61 | 63 | | entered into on or after the effective date of this Act. |
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| 62 | 64 | | SECTION 3. This Act takes effect September 1, 2021. |
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