89R9696 JBD-D
By: Lozano H.B. No. 4617
A BILL TO BE ENTITLED
AN ACT
relating to requiring the seller of unimproved real property to
disclose if the property is in a floodplain.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 5, Property Code, is
amended by adding Section 5.0131 to read as follows:
Sec. 5.0131. SELLER'S DISCLOSURE REGARDING UNIMPROVED REAL
PROPERTY IN FLOODPLAIN. (a) In this section, "floodplain" means an
area of land designated by the Federal Emergency Management Agency
(FEMA) under the National Flood Insurance Act of 1968 (42 U.S.C.
Section 4001 et seq.) to be a special or moderate flood hazard area.
(b) A seller of unimproved real property located in this
state shall provide to the purchaser of the property a written
notice disclosing whether any part of the property is located in a
floodplain. The disclosure must be substantially equivalent to the
following:
"(Seller) ( ) is aware or ( ) is not aware that the unimproved
real property that you are purchasing is located wholly or partly in
a floodplain. A floodplain is an area of land designated by the
Federal Emergency Management Agency (FEMA) to be a special or
moderate flood hazard area. If neither box is checked, you should
assume all or part of the property is located in a floodplain."
(c) The notice must be delivered by the seller on or before
the effective date of an executory contract binding the purchaser
to purchase the property. If a contract is entered into without the
seller providing the notice as required by this section, the
purchaser may terminate the contract for any reason not later than
the seventh day after the effective date of the contract.
(d) This section applies to any seller of unimproved real
property, including a seller who is the developer of the property
and who sells the property to others for resale.
SECTION 2. The changes in law made by this Act apply only to
a contract for the sale of real property entered into on or after
the effective date of this Act. A contract entered into before the
effective date of this Act is governed by the law in effect on the
date the contract was entered into, and that law is continued in
effect for that purpose.
SECTION 3. This Act takes effect September 1, 2025.