Texas Senate Bill SB2604

Texas 2025 - 89th Regular

• Filed: 3/13/25

Caption

Relating to a seller's notice regarding the connection of water utilities to certain tracts of land.

Impact

The implementation of SB2604 is set to enhance transparency in real estate transactions in Texas, particularly in areas with significant populations and unique geographical characteristics. By ensuring that potential property buyers are fully informed about the availability of water services, the bill aims to protect consumers from entering contracts without adequate knowledge of essential utility services. This legislative move is expected to foster a more informed buyer market, potentially reducing disputes and contract terminations related to water service issues.

Summary

Senate Bill 2604 focuses on the seller's disclosure requirements pertaining to water service connectivity for certain tracts of land in Texas. Specifically, it mandates that for executory contracts involving properties of five acres or less, located in counties with a municipality of more than 500,000 residents and adjacent to an international border, sellers must provide written statements regarding the current status of water services on the property. This disclosure must be presented in both English and Spanish to ensure accessibility for a broader demographic of potential buyers.

Contention

Notable points of contention surrounding SB2604 include concerns raised by various stakeholders regarding the practical implications of the disclosure requirements. Some real estate professionals worry that the added obligations could complicate and lengthen the transaction process. Additionally, the effectiveness of the bill in various regions may vary due to the distinct conditions of local water service provision; thus, some stakeholders argue that a one-size-fits-all approach may not be suitable. The transparency effort could also be challenged by those advocating for property sellers' rights, fearing that stringent disclosure requirements might discourage investment in certain areas.

Texas Constitutional Statutes Affected

Property Code

• Chapter 5. Conveyances
  • Section: New Section