88R3775 DRS-D
By: Holland H.B. No. 1257
A BILL TO BE ENTITLED
AN ACT
relating to a seller's notice of special district ad valorem taxes
or 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 5.0146 to read as follows:
Sec. 5.0146. NOTICE OF CERTAIN AD VALOREM TAXES OR
ASSESSMENTS ON NEWLY CONSTRUCTED RESIDENTIAL PROPERTIES. (a) In
this section, "special district" means a political subdivision of
this state with a limited geographic area created by local law or
under general law for a special purpose.
(b) A seller of a newly constructed residential real
property that is located in a special district shall give to the
first purchaser of the property a written notice that reads
substantially similar to the following:
NOTICE OF OBLIGATION TO PAY AD VALOREM TAX OR ASSESSMENT IMPOSED BY
(name of the special district) CONCERNING THE PROPERTY AT (street
address)
The property at (street address) is located in (name, type,
and purpose of the special district). As a purchaser of this parcel
of real property you are obligated to pay an ad valorem tax or
assessment imposed by (name of the special district). The ad
valorem tax rate imposed by (the special district) in the (previous
tax year) tax year was (previous year's tax rate). The assessment
rate or amount imposed by (the special district) is (assessment
rate or amount). More information concerning the rate of the ad
valorem tax or the rate or amount of the assessment and the terms of
payment may be obtained from the special district imposing the ad
valorem tax or assessment.
The rate of the ad valorem tax or the rate or amount of the
assessment is subject to change. Your failure to pay the ad valorem
tax or assessment could result in a lien on and the foreclosure of
your property.
_______________ ________________________________________
Date Signature of Seller
The undersigned purchaser hereby acknowledges receipt of the
foregoing notice.
_______________ ________________________________________
Date Signature of Purchaser
(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.
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.
(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 the notice; or
(2) the date the transfer occurs as provided by the
executory contract.
(e) The purchaser's right to terminate the executory
contract under Subsection (d) is the purchaser's exclusive remedy
for the seller's failure to provide the notice required by this
section.
SECTION 2. Section 5.0146, 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, 2023.