87R10089 MWC-D
By: Holland H.B. No. 3414
A BILL TO BE ENTITLED
AN ACT
relating to a seller's notice of special district assessments on
newly constructed residential real properties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 5, Property Code, is
amended by adding Section 5.0141 to read as follows:
Sec. 5.0141. NOTICE OF CERTAIN ASSESSMENTS ON NEWLY
CONSTRUCTED RESIDENTIAL PROPERTIES. (a) A seller of a newly
constructed residential real property that is located in a special
district, as defined under Section 178.001, Local Government Code,
shall give to the first purchaser of the property a written notice
that reads substantially similar to the following:
NOTICE OF OBLIGATION TO PAY (name of special district) ASSESSMENT
TO (municipality or county levying assessment) CONCERNING THE
PROPERTY AT (street address)
As a purchaser of this parcel of real property you are
obligated to pay an assessment to a municipality or county for
(name, type, and purpose of the district) under (applicable law).
The rate of the assessment imposed by (the special district) in the
(previous tax year) tax year was (previous year's tax rate). The
amount of the assessment imposed by (the special district) in the
(previous tax year) tax year for real property with an appraised
value of (appraised value of property) was $(dollar amount of
assessment). More information concerning the amount of the
assessment and the due dates of that assessment may be obtained from
the municipality or county levying the assessment.
The amount and rate of the assessment is subject to change.
Your failure to pay the assessment could result in a lien on and the
foreclosure of your property.
Date: ______ _____________________________________
Signature of Purchaser
(b) The seller shall deliver the notice required under
Subsection (a) to the purchaser before the effective date of an
executory contract binding the purchaser to purchase the property.
The notice may be given separately, as part of the contract during
the negotiations, or as part of any other notice the seller delivers
to the purchaser.
(c) 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 the notice; or
(2) the date the transfer occurs as provided by the
executory contract.
(d) The purchaser's right to terminate the executory
contract under Subsection (c) is the purchaser's exclusive remedy
for the seller's failure to provide the notice required by this
section.
SECTION 2. Section 5.0141, Property Code, as added by this
Act, applies only to a sale of property for which a contract is
entered into on or after the effective date of this Act.
SECTION 3. This Act takes effect September 1, 2021.