Goodwin Bill Adds Water Rights Questions To Home Seller Disclosures

The text as introduced · 2,393 words

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.