| 1 | 1 | | 89R9696 JBD-D |
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| 2 | 2 | | By: Lozano H.B. No. 4617 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to requiring the seller of unimproved real property to |
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| 10 | 10 | | disclose if the property is in a floodplain. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Subchapter A, Chapter 5, Property Code, is |
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| 13 | 13 | | amended by adding Section 5.0131 to read as follows: |
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| 14 | 14 | | Sec. 5.0131. SELLER'S DISCLOSURE REGARDING UNIMPROVED REAL |
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| 15 | 15 | | PROPERTY IN FLOODPLAIN. (a) In this section, "floodplain" means an |
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| 16 | 16 | | area of land designated by the Federal Emergency Management Agency |
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| 17 | 17 | | (FEMA) under the National Flood Insurance Act of 1968 (42 U.S.C. |
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| 18 | 18 | | Section 4001 et seq.) to be a special or moderate flood hazard area. |
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| 19 | 19 | | (b) A seller of unimproved real property located in this |
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| 20 | 20 | | state shall provide to the purchaser of the property a written |
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| 21 | 21 | | notice disclosing whether any part of the property is located in a |
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| 22 | 22 | | floodplain. The disclosure must be substantially equivalent to the |
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| 23 | 23 | | following: |
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| 24 | 24 | | "(Seller) ( ) is aware or ( ) is not aware that the unimproved |
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| 25 | 25 | | real property that you are purchasing is located wholly or partly in |
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| 26 | 26 | | a floodplain. A floodplain is an area of land designated by the |
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| 27 | 27 | | Federal Emergency Management Agency (FEMA) to be a special or |
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| 28 | 28 | | moderate flood hazard area. If neither box is checked, you should |
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| 29 | 29 | | assume all or part of the property is located in a floodplain." |
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| 30 | 30 | | (c) The notice must be delivered by the seller on or before |
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| 31 | 31 | | the effective date of an executory contract binding the purchaser |
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| 32 | 32 | | to purchase the property. If a contract is entered into without the |
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| 33 | 33 | | seller providing the notice as required by this section, the |
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| 34 | 34 | | purchaser may terminate the contract for any reason not later than |
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| 35 | 35 | | the seventh day after the effective date of the contract. |
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| 36 | 36 | | (d) This section applies to any seller of unimproved real |
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| 37 | 37 | | property, including a seller who is the developer of the property |
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| 38 | 38 | | and who sells the property to others for resale. |
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| 39 | 39 | | SECTION 2. The changes in law made by this Act apply only to |
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| 40 | 40 | | a contract for the sale of real property entered into on or after |
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| 41 | 41 | | the effective date of this Act. A contract entered into before the |
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| 42 | 42 | | effective date of this Act is governed by the law in effect on the |
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| 43 | 43 | | date the contract was entered into, and that law is continued in |
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| 44 | 44 | | effect for that purpose. |
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| 45 | 45 | | SECTION 3. This Act takes effect September 1, 2025. |
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