Bill Text: TX HB697 | 2023-2024 | 88th Legislature | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to seller's disclosures regarding fuel gas piping in residential real property.

Spectrum: Slight Partisan Bill (Republican 4-2)

Status: (Passed) 2023-06-09 - Effective on 9/1/23 [HB697 Detail]

Download: Texas-2023-HB697-Comm_Sub.html

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By: Holland, et al. (Senate Sponsor - Hughes) H.B. No. 697
(In the Senate - Received from the House April 13, 2023;
April 19, 2023, read first time and referred to Committee on
Business & Commerce; May 10, 2023, reported adversely, with
favorable Committee Substitute by the following vote: Yeas 11,
Nays 0; May 10, 2023, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR H.B. No. 697 By: King

A BILL TO BE ENTITLED
AN ACT
relating to seller's disclosures regarding fuel gas piping in
residential real property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 5.008(b), Property Code, is amended to
read as follows:
(b) The notice must be executed and must, at a minimum, read
substantially similar to the following:
SELLER'S DISCLOSURE NOTICE
CONCERNING THE PROPERTY AT ___________________________________
(Street Address and City)
THIS NOTICE IS A DISCLOSURE OF SELLER'S KNOWLEDGE OF
THE CONDITION OF THE PROPERTY AS OF THE DATE SIGNED BY
SELLER AND IS NOT A SUBSTITUTE FOR ANY INSPECTIONS OR
WARRANTIES THE PURCHASER MAY WISH TO OBTAIN. IT IS NOT
A WARRANTY OF ANY KIND BY SELLER OR SELLER'S AGENTS.
Seller __ is __ is not occupying the Property.
If unoccupied, how long since Seller has occupied the Property?
________________________________________________________________
1. The Property has the items checked below:
Write Yes (Y), No (N), or Unknown (U).
__ Range __ Oven __ Microwave
__ Dishwasher __ Trash Compactor __ Disposal
__ Washer/Dryer __ Window __ Rain Gutters
Hookups Screens
__ Security __ Fire Detection __ Intercom
System Equipment System
__ Smoke Detector
__ Smoke Detector -
Hearing Impaired
__ Carbon Monoxide
Alarm
__ Emergency Escape
Ladder(s)
__ TV Antenna __ Cable TV __ Satellite
Wiring Dish
__ Ceiling Fan(s) __ Attic Fan(s) __ Exhaust
Fan(s)
__ Central A/C __ Central Heating __ Wall/Window
Air
Conditioning
__ Plumbing System __ Septic System __ Public Sewer
System
__ Patio/Decking __ Outdoor Grill __ Fences
__ Pool __ Sauna __ Spa
__ Hot Tub
__ Pool Equipment __ Pool Heater __ Automatic Lawn
Sprinkler
System
__ Fireplace(s) & __ Fireplace(s) &
Chimney Chimney
(Woodburning) (Mock)
__ Natural Gas Lines __ Gas Fixtures
__ Liquid Propane Gas: __ LP Community __ LP on Property
(Captive)
__ Fuel Gas Piping: __ Black Iron Pipe __ Corrugated
__ Copper Stainless Steel
Tubing
Garage: __ Attached __ Not Attached __ Carport
Garage Door Opener(s): __ Electronic __ Control(s)
Water Heater: __ Gas __ Electric
Water Supply: __ City __ Well __ MUD __ Co-op
Roof Type: ________________________________ Age: _____(approx)
Are you (Seller) aware of any of the above items that are not in
working condition, that have known defects, or that are in need of
repair? __ Yes __ No __ Unknown.
If yes, then describe. (Attach additional sheets if necessary):
________________________________________________________________
________________________________________________________________
2. Does the property have working smoke detectors installed in
accordance with the smoke detector requirements of Chapter 766,
Health and Safety Code?* __ Yes __ No __ Unknown.
If the answer to the question above is no or unknown,
explain. (Attach additional sheets if necessary):
*Chapter 766 of the Health and Safety Code requires
one-family or two-family dwellings to have working smoke detectors
installed in accordance with the requirements of the building code
in effect in the area in which the dwelling is located, including
performance, location, and power source requirements. If you do
not know the building code requirements in effect in your area, you
may check unknown above or contact your local building official for
more information. A buyer may require a seller to install smoke
detectors for the hearing impaired if: (1) the buyer or a member of
the buyer's family who will reside in the dwelling is hearing
impaired; (2) the buyer gives the seller written evidence of the
hearing impairment from a licensed physician; and (3) within 10
days after the effective date, the buyer makes a written request for
the seller to install smoke detectors for the hearing impaired and
specifies the locations for installation. The parties may agree
who will bear the cost of installing the smoke detectors and which
brand of smoke detectors to install.
3. Are you (Seller) aware of any known defects/malfunctions in any
of the following?
Write Yes (Y) if you are aware, write No (N) if you are not aware.
__ Interior Walls __ Ceilings __ Floors
__ Exterior Walls __ Doors __ Windows
__ Roof __ Foundation/ __ Basement
Slab(s)
__ Walls/Fences __ Driveways __ Sidewalks
__ Plumbing/Sewers/ __ Electrical __ Lighting
Septics Systems Fixtures
__ Other Structural Components (Describe):_______________________
________________________________________________________________
________________________________________________________________
If the answer to any of the above is yes, explain. (Attach
additional sheets if necessary):________________________________
________________________________________________________________
________________________________________________________________
4. Are you (Seller) aware of any of the following conditions?
Write Yes (Y) if you are aware, write No (N) if you are not aware.
__ Active Termites __ Previous Structural
(includes or Roof Repair
wood-destroying insects)
__ Termite or Wood Rot Damage __ Hazardous or Toxic Waste
Needing Repair
__ Previous Termite Damage __ Asbestos Components
__ Previous Termite __ Urea formaldehyde
Treatment Insulation
__ Radon Gas
__ Improper Drainage __ Lead Based Paint
__ Water Damage Not Due to a __ Aluminum Wiring
Flood Event
__ Previous Fires
__ Unplatted Easements
__ Landfill, Settling, Soil __ Subsurface
Movement, Fault Lines Structure or Pits
__ Single Blockable Main __ Previous Use of Premises
Drain in Pool/Hot for Manufacture of
Tub/Spa* Methamphetamine
If the answer to any of the above is yes, explain. (Attach
additional sheets if necessary):________________________________
________________________________________________________________
________________________________________________________________
*A single blockable main drain may cause a suction entrapment
hazard for an individual.
5. Are you (Seller) aware of any item, equipment, or system in or
on the property that is in need of repair? __ Yes (if you are
aware) __ No (if you are not aware). If yes, explain (attach
additional sheets as necessary).
_________________________________
6. Are you (Seller) aware of any of the following conditions?
* Write Yes (Y) if you are aware, write No (N) if you are not aware.
__ Present flood insurance coverage
__ Previous flooding due to a failure or breach of a reservoir or a
controlled or emergency release of water from a reservoir
__ Previous water penetration into a structure on the property due
to a natural flood event
Write Yes (Y) if you are aware and check wholly or partly as
applicable, write No (N) if you are not aware.
__ Located ( ) wholly ( ) partly in a 100-year floodplain (Special
Flood Hazard Area-Zone A, V, A99, AE, AO, AH, VE, or AR)
__ Located ( ) wholly ( ) partly in a 500-year floodplain (Moderate
Flood Hazard Area-Zone X (shaded))
__ Located ( ) wholly ( ) partly in a floodway
__ Located ( ) wholly ( ) partly in a flood pool
__ Located ( ) wholly ( ) partly in a reservoir
If the answer to any of the above is yes, explain (attach additional
sheets as necessary):
* For purposes of this notice:
"100-year floodplain" means any area of land that:
(A) is identified on the flood insurance rate map as a
special flood hazard area, which is designated as Zone A, V, A99,
AE, AO, AH, VE, or AR on the map;
(B) has a one percent annual chance of flooding, which
is considered to be a high risk of flooding; and
(C) may include a regulatory floodway, flood pool, or
reservoir.
"500-year floodplain" means any area of land that:
(A) is identified on the flood insurance rate map as a
moderate flood hazard area, which is designated on the map as Zone X
(shaded); and
(B) has a two-tenths of one percent annual chance of
flooding, which is considered to be a moderate risk of flooding.
"Flood pool" means the area adjacent to a reservoir that lies
above the normal maximum operating level of the reservoir and that
is subject to controlled inundation under the management of the
United States Army Corps of Engineers.
"Flood insurance rate map" means the most recent flood hazard
map published by the Federal Emergency Management Agency under the
National Flood Insurance Act of 1968 (42 U.S.C. Section 4001 et
seq.).
"Floodway" means an area that is identified on the flood
insurance rate map as a regulatory floodway, which includes the
channel of a river or other watercourse and the adjacent land areas
that must be reserved for the discharge of a base flood, also
referred to as a 100-year flood, without cumulatively increasing
the water surface elevation more than a designated height.
"Reservoir" means a water impoundment project operated by the
United States Army Corps of Engineers that is intended to retain
water or delay the runoff of water in a designated surface area of
land.
7. Have you (Seller) ever filed a claim for flood damage to the
property with any insurance provider, including the National Flood
Insurance Program (NFIP)?* __ Yes __ No. If yes, explain (attach
additional sheets as necessary):
*Homes in high risk flood zones with mortgages from federally
regulated or insured lenders are required to have flood
insurance. Even when not required, the Federal Emergency
Management Agency (FEMA) encourages homeowners in high risk,
moderate risk, and low risk flood zones to purchase flood insurance
that covers the structure(s) and the personal property within the
structure(s).
8. Have you (Seller) ever received assistance from FEMA or the
U.S. Small Business Administration (SBA) for flood damage to the
property? __ Yes __ No. If yes, explain (attach additional sheets
as necessary):
9. Are you (Seller) aware of any of the following?
Write Yes (Y) if you are aware, write No (N) if you are not aware.
__ Room additions, structural modifications, or other alterations or repairs made without necessary permits or not in compliance with building codes in effect at that time.
__ Homeowners' Association or maintenance fees or assessments.
__ Any "common area" (facilities such as pools, tennis courts, walkways, or other areas) co-owned in undivided interest with others.
__ Any notices of violations of deed restrictions or governmental ordinances affecting the condition or use of the Property.
__ Any lawsuits directly or indirectly affecting the Property.
__ Any condition on the Property which materially affects the physical health or safety of an individual.
__ Any rainwater harvesting system located on the property that is larger than 500 gallons and that uses a public water supply as an auxiliary water source.
__ Any portion of the property that is located in a groundwater conservation district or a subsidence district.
If the answer to any of the above is yes, explain. (Attach
additional sheets if necessary): ______________________________
________________________________________________________________
________________________________________________________________
10. If the property is located in a coastal area that is seaward of
the Gulf Intracoastal Waterway or within 1,000 feet of the mean high
tide bordering the Gulf of Mexico, the property may be subject to
the Open Beaches Act or the Dune Protection Act (Chapter 61 or 63,
Natural Resources Code, respectively) and a beachfront
construction certificate or dune protection permit may be required
for repairs or improvements. Contact the local government with
ordinance authority over construction adjacent to public beaches
for more information.
11. This property may be located near a military installation and
may be affected by high noise or air installation compatible use
zones or other operations. Information relating to high noise and
compatible use zones is available in the most recent Air
Installation Compatible Use Zone Study or Joint Land Use Study
prepared for a military installation and may be accessed on the
Internet website of the military installation and of the county and
any municipality in which the military installation is located.
_______________ ________________________________________
Date Signature of Seller
The undersigned purchaser hereby acknowledges receipt of the
foregoing notice.
_______________ ________________________________________
Date Signature of Purchaser
SECTION 2. Section 5.008(b), Property Code, as amended by
this Act, applies only to a transfer of property that occurs on or
after the effective date of this Act. A transfer of property that
occurs before the effective date of this Act is governed by the law
applicable to the transfer immediately before that date, and the
former law is continued in effect for that purpose. For the
purposes of this section, a transfer of property occurs before the
effective date of this Act if the contract binding the purchaser to
purchase the property is executed before that date.
SECTION 3. This Act takes effect September 1, 2023.
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