Bill Text: TX HB1257 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to a seller's notice of special district ad valorem taxes or assessments on newly constructed residential real properties.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-03-03 - Referred to Business & Industry [HB1257 Detail]
Download: Texas-2023-HB1257-Introduced.html
| 88R3775 DRS-D | ||
| By: Holland | H.B. No. 1257 | |
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| 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. | ||
