| 1 | 1 | | 88R14 NC-D |
|---|
| 2 | 2 | | By: Kitzman H.B. No. 2260 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to a seller's disclosure of the location of certain real |
|---|
| 8 | 8 | | property in a floodplain. |
|---|
| 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 5.0085 to read as follows: |
|---|
| 12 | 12 | | Sec. 5.0085. SELLER'S DISCLOSURE OF LOCATION OF CERTAIN |
|---|
| 13 | 13 | | REAL PROPERTY IN FLOODPLAIN. (a) In this section: |
|---|
| 14 | 14 | | (1) "100-year floodplain" means any area of land that: |
|---|
| 15 | 15 | | (A) is identified on the flood insurance rate map |
|---|
| 16 | 16 | | as a special flood hazard area, which is designated as Zone A, V, |
|---|
| 17 | 17 | | A99, AE, AO, AH, VE, or AR on the map; |
|---|
| 18 | 18 | | (B) has a one percent annual chance of flooding; |
|---|
| 19 | 19 | | and |
|---|
| 20 | 20 | | (C) may include a regulatory floodway, flood |
|---|
| 21 | 21 | | pool, or reservoir. |
|---|
| 22 | 22 | | (2) "Flood insurance rate map" means the most recent |
|---|
| 23 | 23 | | flood hazard map published by the Federal Emergency Management |
|---|
| 24 | 24 | | Agency under the National Flood Insurance Act of 1968 (42 U.S.C. |
|---|
| 25 | 25 | | Section 4001 et seq.). |
|---|
| 26 | 26 | | (b) A seller of a tract of real property that measures less |
|---|
| 27 | 27 | | than 15 acres and that does not have a residence located or being |
|---|
| 28 | 28 | | constructed on the property at the time of the sale shall provide to |
|---|
| 29 | 29 | | the purchaser of the property a written notice disclosing whether |
|---|
| 30 | 30 | | any part of the property is located in a 100-year floodplain. If |
|---|
| 31 | 31 | | any part of the property is located in a 100-year floodplain, the |
|---|
| 32 | 32 | | notice must include a copy of a current flood insurance rate map |
|---|
| 33 | 33 | | that indicates the part of the property that is located in the |
|---|
| 34 | 34 | | floodplain. |
|---|
| 35 | 35 | | (c) The notice must be delivered by the seller on or before |
|---|
| 36 | 36 | | the effective date of an executory contract binding the purchaser |
|---|
| 37 | 37 | | to purchase the property. |
|---|
| 38 | 38 | | (d) The purchaser is entitled to recover from the seller |
|---|
| 39 | 39 | | damages caused by flooding on any part of the purchased real |
|---|
| 40 | 40 | | property that is located in a 100-year floodplain if: |
|---|
| 41 | 41 | | (1) the seller fails to provide the purchaser the |
|---|
| 42 | 42 | | notice required by this section; and |
|---|
| 43 | 43 | | (2) the flooding occurs before the fifth anniversary |
|---|
| 44 | 44 | | of the date of the purchase. |
|---|
| 45 | 45 | | SECTION 2. This Act takes effect September 1, 2023. |
|---|