HB 2422

89R3098 ANG-D
		By: Goodwin
  H.B. No. 2422
  A BILL TO BE ENTITLED
  AN ACT
  relating to seller's disclosures regarding water services for and
  water rights 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):
  ________________________________________________________________
  ________________________________________________________________
  Are you (Seller) aware of the following:
  __  The name of the entity who regulates the water supply. If yes,
  then provide below. 
  ________________________________________________________________
  ________________________________________________________________
  __  The name of the entity responsible for billing the homeowner for
  water use. If yes, then provide below.
  ________________________________________________________________
  ________________________________________________________________
  __  Any excessive water use fees or water use pricing tiers
  applicable to the property. If yes, then describe.
  ________________________________________________________________
  ________________________________________________________________
  __  The name of the entity responsible for maintaining the water
  service line to the property. If yes, then provide below.
  ________________________________________________________________
  ________________________________________________________________
  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.  Subchapter A, Chapter 5, Property Code, is
  amended by adding Section 5.0131 to read as follows:
         Sec. 5.0131.  NOTICE OF GROUNDWATER AND SURFACE WATER
  RIGHTS.  (a)  This section applies only to the sale of a fee simple
  interest in residential real property located in this state
  comprising not more than one dwelling unit and land on which the
  dwelling is located.
         (b)  A seller of residential real property to which this
  section applies shall provide the purchaser of the property with a
  written notice describing the groundwater and surface water rights
  conveyed with the property.
         (c)  The Texas Real Estate Commission shall develop and
  publish the form for the written notice required under Subsection
  (b). The form must require the seller to disclose information
  concerning:
               (1)  whether the conveyance of the property includes
  any groundwater rights;
               (2)  whether the conveyance of the property includes
  any surface water rights;
               (3)  whether there are any water wells located on the
  property; and
               (4)  if the property is located in a groundwater
  conservation district or a subsidence district, the name and any
  relevant information concerning the applicable district.
         (d)  The notice must be delivered by the seller on or before
  the effective date of an executory contract binding the purchaser
  to purchase the property.  If a contract is entered without the
  seller providing the notice as required by this section, the
  purchaser may terminate the contract for any reason not later than
  the seventh day after the effective date of the receiving of the
  notice.
         (e)  The appropriate use of forms published by the Texas Real
  Estate Commission under this section constitutes compliance with
  this section.
         SECTION 3.  Section 5.008(b), Property Code, as amended by
  this Act, and Section 5.0131, Property Code, as added by this Act,
  apply 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 4.  This Act takes effect September 1, 2025.