Bill Text: TX SB339 | 2019-2020 | 86th Legislature | Introduced

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

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Bill Title: Relating to a seller's disclosure notice for residential property regarding floodplains, flood pools, floodways, or reservoirs.

Spectrum: Bipartisan Bill

Status: (Passed) 2019-06-14 - Effective on 9/1/19 [SB339 Detail]

Download: Texas-2019-SB339-Introduced.html

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86R3070 NC-D
By: Huffman S.B. No. 339

A BILL TO BE ENTITLED
AN ACT
relating to a seller's disclosure notice for residential property
regarding floodplains, flood pools, or reservoirs.
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)
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
__ Previous Flooding __ Radon Gas
__ Improper Drainage __ Lead Based Paint
__ Water Penetration __ Aluminum Wiring
[__ Located in 100-Year __ Previous Fires
Floodplain]
__ Present Flood Insurance __ Unplatted Easements
Coverage
__ 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?
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): ______________________________
________________________________________________________________
________________________________________________________________
7. 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.
8. 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. Subchapter A, Chapter 5, Property Code, is
amended by adding Section 5.020 to read as follows:
Sec. 5.020. SELLER'S DISCLOSURE NOTICE OF FLOODPLAIN, FLOOD
POOL, OR RESERVOIR. (a) In this section:
(1) "100-year floodplain" means any area of land that
is identified on a flood insurance rate map as an area that has a one
percent chance of being inundated by a flood event each year.
(2) "500-year floodplain" means any area of land that
is identified on a flood insurance rate map as an area that has a
two-tenths of one percent chance of being inundated by a flood event
each year.
(3) "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.
(4) "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.).
(5) "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.
(b) This section applies only to the sale of residential
real property.
(c) On or before the date a seller of residential real
property and a purchaser enter into a contract binding the
purchaser to purchase the property, the seller shall give to the
purchaser a signed, written notice in substantially the following
form:
SELLER'S DISCLOSURE NOTICE OF
FLOODPLAIN, FLOOD POOL, OR RESERVOIR
Concerning the property at ______________ (street address
and city) or described as ______________ (legal description):
Are you (Seller) aware of any of the following conditions?
Write Yes (Y), No (N), or Unknown (U). The property is located
(check wholly or partly as applicable):
__ ( ) wholly ( ) partly in a 100-year floodplain
__ ( ) wholly ( ) partly in a 500-year floodplain
__ ( ) wholly ( ) partly in a flood pool
__ ( ) wholly ( ) partly in a reservoir
__ within five miles downstream of a reservoir and the
property:
__ may flood under catastrophic circumstances
__ has flooded in a flood event.
For purposes of this notice:
1. "100-year floodplain" means any area of land that is
identified on a flood insurance rate map as an area that has a one
percent chance of being inundated by a flood event each year.
2. "500-year floodplain" means any area of land that is
identified on a flood insurance rate map as an area that has a
two-tenths of one percent chance of being inundated by a flood event
each year.
3. "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.
4. "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.).
5. "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.
_______________________
(Purchaser's signature)
_______________
(Date)
_______________________
(Seller's signature)
______________
(Date)
(d) If a contract is entered into without the seller
providing the notice required by this section, the purchaser may
terminate the contract for any reason within seven days after the
date the purchaser receives:
(1) the notice from the seller; or
(2) information described by the notice under
Subsection (c) from any other person.
(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 the property was
located:
(A) in a 100-year floodplain, 500-year
floodplain, flood pool, or reservoir; or
(B) within five miles downstream of a reservoir
and the property has flooded in a flood event.
SECTION 3. The changes in law made by this Act in amending
Section 5.008, Property Code, and adding Section 5.020, Property
Code, apply only to a contract for the sale of real property entered
into on or after the effective date of this Act. A contract entered
into before the effective date of this Act is governed by the law in
effect on the date the contract was entered into, and that law is
continued in effect for that purpose.
SECTION 4. This Act takes effect September 1, 2019.