Texas 2023 - 88th Regular

Texas House Bill HB1257 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	88R3775 DRS-D
2	2	By: Holland H.B. No. 1257
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a seller's notice of special district ad valorem taxes
8	8	or assessments on newly constructed residential real properties.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subchapter A, Chapter 5, Property Code, is
11	11	amended by adding Section 5.0146 to read as follows:
12	12	Sec. 5.0146. NOTICE OF CERTAIN AD VALOREM TAXES OR
13	13	ASSESSMENTS ON NEWLY CONSTRUCTED RESIDENTIAL PROPERTIES. (a) In
14	14	this section, "special district" means a political subdivision of
15	15	this state with a limited geographic area created by local law or
16	16	under general law for a special purpose.
17	17	(b) A seller of a newly constructed residential real
18	18	property that is located in a special district shall give to the
19	19	first purchaser of the property a written notice that reads
20	20	substantially similar to the following:
21	21	NOTICE OF OBLIGATION TO PAY AD VALOREM TAX OR ASSESSMENT IMPOSED BY
22	22	(name of the special district) CONCERNING THE PROPERTY AT (street
23	23	address)
24	24	The property at (street address) is located in (name, type,
25	25	and purpose of the special district). As a purchaser of this parcel
26	26	of real property you are obligated to pay an ad valorem tax or
27	27	assessment imposed by (name of the special district). The ad
28	28	valorem tax rate imposed by (the special district) in the (previous
29	29	tax year) tax year was (previous year's tax rate). The assessment
30	30	rate or amount imposed by (the special district) is (assessment
31	31	rate or amount). More information concerning the rate of the ad
32	32	valorem tax or the rate or amount of the assessment and the terms of
33	33	payment may be obtained from the special district imposing the ad
34	34	valorem tax or assessment.
35	35	The rate of the ad valorem tax or the rate or amount of the
36	36	assessment is subject to change. Your failure to pay the ad valorem
37	37	tax or assessment could result in a lien on and the foreclosure of
38	38	your property.
39	39	_______________ ________________________________________
40	40	Date Signature of Seller
41	41	The undersigned purchaser hereby acknowledges receipt of the
42	42	foregoing notice.
43	43	_______________ ________________________________________
44	44	Date Signature of Purchaser
45	45	(c) The seller shall deliver the notice required under
46	46	Subsection (b) to the purchaser before the effective date of an
47	47	executory contract binding the purchaser to purchase the property.
48	48	The notice may be given separately, as part of the contract during
49	49	the negotiations, or as part of any other notice the seller delivers
50	50	to the purchaser.
51	51	(d) If an executory contract is entered into without the
52	52	seller providing the notice required by this section, the purchaser
53	53	may terminate the contract for any reason not later than the earlier
54	54	of:
55	55	(1) the seventh day after the date the purchaser
56	56	receives the notice; or
57	57	(2) the date the transfer occurs as provided by the
58	58	executory contract.
59	59	(e) The purchaser's right to terminate the executory
60	60	contract under Subsection (d) is the purchaser's exclusive remedy
61	61	for the seller's failure to provide the notice required by this
62	62	section.
63	63	SECTION 2. Section 5.0146, Property Code, as added by this
64	64	Act, applies only to a sale of property for which a contract is
65	65	entered into on or after the effective date of this Act.
66	66	SECTION 3. This Act takes effect September 1, 2023.