| 1 | 1 | | 87R10089 MWC-D |
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| 2 | 2 | | By: Holland H.B. No. 3414 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to a seller's notice of special district assessments on |
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| 8 | 8 | | newly constructed residential real properties. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter A, Chapter 5, Property Code, is |
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| 11 | 11 | | amended by adding Section 5.0141 to read as follows: |
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| 12 | 12 | | Sec. 5.0141. NOTICE OF CERTAIN ASSESSMENTS ON NEWLY |
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| 13 | 13 | | CONSTRUCTED RESIDENTIAL PROPERTIES. (a) A seller of a newly |
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| 14 | 14 | | constructed residential real property that is located in a special |
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| 15 | 15 | | district, as defined under Section 178.001, Local Government Code, |
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| 16 | 16 | | shall give to the first purchaser of the property a written notice |
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| 17 | 17 | | that reads substantially similar to the following: |
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| 18 | 18 | | NOTICE OF OBLIGATION TO PAY (name of special district) ASSESSMENT |
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| 19 | 19 | | TO (municipality or county levying assessment) CONCERNING THE |
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| 20 | 20 | | PROPERTY AT (street address) |
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| 21 | 21 | | As a purchaser of this parcel of real property you are |
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| 22 | 22 | | obligated to pay an assessment to a municipality or county for |
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| 23 | 23 | | (name, type, and purpose of the district) under (applicable law). |
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| 24 | 24 | | The rate of the assessment imposed by (the special district) in the |
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| 25 | 25 | | (previous tax year) tax year was (previous year's tax rate). The |
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| 26 | 26 | | amount of the assessment imposed by (the special district) in the |
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| 27 | 27 | | (previous tax year) tax year for real property with an appraised |
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| 28 | 28 | | value of (appraised value of property) was $(dollar amount of |
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| 29 | 29 | | assessment). More information concerning the amount of the |
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| 30 | 30 | | assessment and the due dates of that assessment may be obtained from |
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| 31 | 31 | | the municipality or county levying the assessment. |
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| 32 | 32 | | The amount and rate of the assessment is subject to change. |
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| 33 | 33 | | Your failure to pay the assessment could result in a lien on and the |
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| 34 | 34 | | foreclosure of your property. |
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| 35 | 35 | | Date: ______ _____________________________________ |
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| 36 | 36 | | Signature of Purchaser |
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| 37 | 37 | | (b) The seller shall deliver the notice required under |
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| 38 | 38 | | Subsection (a) to the purchaser before the effective date of an |
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| 39 | 39 | | executory contract binding the purchaser to purchase the property. |
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| 40 | 40 | | The notice may be given separately, as part of the contract during |
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| 41 | 41 | | the negotiations, or as part of any other notice the seller delivers |
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| 42 | 42 | | to the purchaser. |
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| 43 | 43 | | (c) If an executory contract is entered into without the |
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| 44 | 44 | | seller providing the notice required by this section, the purchaser |
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| 45 | 45 | | may terminate the contract for any reason not later than the earlier |
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| 46 | 46 | | of: |
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| 47 | 47 | | (1) the seventh day after the date the purchaser |
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| 48 | 48 | | receives the notice; or |
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| 49 | 49 | | (2) the date the transfer occurs as provided by the |
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| 50 | 50 | | executory contract. |
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| 51 | 51 | | (d) The purchaser's right to terminate the executory |
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| 52 | 52 | | contract under Subsection (c) is the purchaser's exclusive remedy |
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| 53 | 53 | | for the seller's failure to provide the notice required by this |
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| 54 | 54 | | section. |
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| 55 | 55 | | SECTION 2. Section 5.0141, Property Code, as added by this |
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| 56 | 56 | | Act, applies only to a sale of property for which a contract is |
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| 57 | 57 | | entered into on or after the effective date of this Act. |
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| 58 | 58 | | SECTION 3. This Act takes effect September 1, 2021. |
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