Bill Text: TX HB1719 | 2021-2022 | 87th Legislature | Engrossed
Bill Title: Relating to a potential erosion notice to purchasers of real property in a commercial or residential development in certain counties.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2021-05-14 - Referred to Business & Commerce [HB1719 Detail]
Download: Texas-2021-HB1719-Engrossed.html
| 87R21915 DRS-D | ||
| By: Reynolds | H.B. No. 1719 | |
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| relating to a potential erosion notice to purchasers of real | ||
| property in a commercial or residential development in certain | ||
| counties. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter A, Chapter 5, Property Code, is | ||
| amended by adding Section 5.0191 to read as follows: | ||
| Sec. 5.0191. POTENTIAL EROSION NOTICE IN CERTAIN COUNTIES. | ||
| (a) This section applies only to real property located in a county | ||
| that: | ||
| (1) has a population of 585,000 or more; and | ||
| (2) is adjacent to a county with a population of four | ||
| million or more. | ||
| (b) A seller of real property that is used or intended to be | ||
| used for residential or commercial purposes and that is wholly or | ||
| partly located within 500 feet of a river or an impoundment of water | ||
| authorized under Chapter 11, Water Code, shall give to the | ||
| purchaser of the property a written notice that reads substantially | ||
| similar to the following: | ||
| NOTICE OF POTENTIAL EROSION | ||
| The property at (street address and city) or described by | ||
| (legal description) is subject to potential erosion caused by a | ||
| river or impoundment of water that may: | ||
| (1) damage the property or a building or structure | ||
| constructed on the property; or | ||
| (2) affect an area of the property that is available | ||
| for development for residential or commercial use. | ||
| (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. | ||
| (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: | ||
| (A) the notice from the seller; or | ||
| (B) the information about the property described | ||
| by the notice from any other person; or | ||
| (2) the date the transfer occurs as provided by the | ||
| executory contract. | ||
| (e) After the date of the conveyance, the purchaser may | ||
| bring an action for misrepresentation against the seller if the | ||
| seller: | ||
| (1) failed to provide the notice before the date of the | ||
| conveyance; and | ||
| (2) had actual knowledge that all or a portion of the | ||
| property was: | ||
| (A) located wholly or partly within 500 feet of a | ||
| river or an impoundment of water authorized under Chapter 11, Water | ||
| Code; and | ||
| (B) subject to potential erosion caused by the | ||
| river or impoundment of water. | ||
| SECTION 2. Section 5.0191, Property Code, as added by this | ||
| Act, applies only to a contract for the sale of real property | ||
| entered into on or after the effective date of this Act. | ||
| SECTION 3. This Act takes effect September 1, 2021. | ||
