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
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  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.
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