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MANDATORY DISCLOSURE NOTICES

INCIDENT TO THE SALE OF REAL PROPERTY

SARA E. DYSART

112 E. Pecan Street, Suite 3050

San Antonio, Texas 78205

State Bar of Texas

21st ANNUAL ADVANCED REAL ESTATE DRAFTING COURSE

March 4 -5, 2010

Dallas

CHAPTER 22

Sara E. Dysart Attorney At Law

112 E. Pecan Street, Suite 3050 San Antonio, Texas 78205

Phone: (210) 224-7111 [email protected]

BACKGROUND, EDUCATION AND PRACTICE Sara E. Dysart, Attorney at Law, practices primarily in the area of commercial real estate

law. She is a graduate of St. Mary’s University (B.A. 1974 magna cum laude), University of Texas at San Antonio (Masters of Art), and St. Mary’s University School of Law (J.D. 1981 with distinction). After being admitted to the State Bar of Texas in October 1981, she served as a briefing attorney for the 4th Court of Appeals for one year and then started practicing in the area of real estate law. She is the past President of the St. Mary=s Law Alumni Association and past Chair of the San Antonio Bar Foundation. She has been an officer and director of the San Antonio Bar Association and the Bexar County Women=s Bar Association. She is currently on the State Bar Real Estate Forms Committee and has served on a number of other local and State Bar committees. She has authored and presented numerous articles in the area of real estate law.

Mandatory Disclosure Notices Incident To The Sale Of Real Property Chapter 22

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TABLE OF CONTENTS

I. CONSUMER NOTICE ............................................................................................................................. 5

II. RESIDENTIAL TRANSACTION NOTICES ......................................................................................... 5

A. Tex. Prop. Code Sec. 5.008 -- Seller’s Disclosure of Property Condition. ..................................... 5

B. Tex. Prop. Code Sec. 5.012 -- Notice of Obligations Related to Membership in

Property Owners’ Association ........................................................................................................... 6

C. Tex. Prop. Code Sec. 5.013- Seller’s Disclosure of Location of Condition of

Under Surface of Unimproved Real Property ................................................................................... 7

D. Tex. Prop. Code Sec. 5.014 -- Notice of Obligations Related to Public Improvement District ........ 8

E. Tex. Prop. Code Sec. 5.061 – 5.085 -- Subchapter D Executory Contract for Conveyance. ............ 8

F. Title 16 of the Code of Federal Regulations Sec. 460.16 -– What new home sellers

must tell new home buyers. ............................................................................................................ 12

G. Title 40 of the Code of Federal Regulations—Chapter I, Subchapter R, Part 745,

Subpart F –Disclosure of Known Lead-Based Paint and/or Lead-Based Paint Hazards

upon Sale or Lease of Residential Property, Sec. 745.100 et seq. ................................................. 12

H. Title 29 of the Code of Federal Regulations Sec. 1910.1001, et seq. and

1926.1101 et seq.-- Notice Concerning Asbestos. ......................................................................... 13

I. Tex. Prop. Code Sec. 5.016 --Conveyance of Residential Property Encumbered by Lien. ............ 13

III. CONDOMINIUM TRANSACTION NOTICES .................................................................................... 14

A. Tex. Prop. Code Sec. 82.156-– Purchaser’s Right to Cancel. ......................................................... 14

B. Tex. Prop. Code Sec. 82.157 --Resale of Unit. ................................................................................ 14

IV. ALL REAL PROPERTY TRANSACTION NOTICES ......................................................................... 15

A. Title 30 of the Tex. Adm. Code, Sec. 334.9 -– Seller’s Disclosure [Underground

and Above Ground Storage Tanks] ................................................................................................ 15

B. Tex. Local Gov’t Code, Chapter 212. Municipal Regulation of Subdivisions

and Property Development, Subchapter F. Enforcement of Land Use Restrictions

Contained in Plats and Other Instruments—Notice to Purchasers, Sec. 212.155 ........................... 15

C. Tex. Nat. Res. Code Sec. 33.135 -- Notice to Purchaser or Grantee of Coastal Area Property ...... 16

D. Tex. Nat. Res. Code Sec. 61.025-- Disclosure to Purchaser of Property ......................................... 16

E. Tex. Prop. Code Sec. 5.010 -- Notice to Purchaser of Additional Tax Liability ............................. 16

F. Tex. Prop. Code Sec. 5.011 -- Seller’s Disclosure Regarding Potential Annexation ...................... 17

G. Tex. Water Code Sec. 13.257 -- Notice to Purchasers ................................................................... 18

H. Tex. Water Code Sec. 49.452 -- Notice to Purchasers.................................................................... 19

I. Tex. Water Code Sec. 54.016(h)(4)(A) -- Notice to Purchaser of Property Located in

Certain Annexed Water Districts ..................................................................................................... 19

J. Tex. Local Gov’t Code Sec. 232.0033 -– Additional Requirements: Future

Transportation Corridor ................................................................................................................... 20

K. Tex. Occ. Code Sect. 1958.154 -- Certificate of Mold Remediation; Duty of Property .............. 20

Attachments .................................................................................................................................................... 21

Mandatory Disclosure Notices Incident to the Sale of Real Property Chapter 22

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MANDATORY DISCLOSURE NOTICES

INCIDENT TO THE SALE OF REAL PROPERTY

A real estate sales contract sets out the terms and conditions of the parties governing the sale and

purchase of the real property. As part of the contracting process, federal and Texas laws impose a series of

mandatory disclosure notices for the seller to make and deliver to the buyer. These notices are based upon

the intended use of the property and the particular circumstances impacting the property. The purpose of

this paper is to set forth sellers’ mandatory disclosure notices, the circumstances impacting the property

which require them, and the consequences to sellers, if any, when such mandatory notices are not properly

made and delivered to the buyer.

This paper is based upon the ―Notices, Statements, and Certificates‖ set forth on Exhibit ―D‖ to the

Real Estate Sales Contract in Chapter 8 of the Real Estate Forms Manual, 2010 Supplement, a project of

the Real Estate Forms Committee of the State Bar of Texas (the ―Real Estate Forms Manual‖) and Chapter

10 on Residential Contracts for Deed and Chapter 26 on Restrictive Covenants and Property Owners of the

Real Estate Forms Manual. While this paper expands on the applicable law governing these notices, the

notices are from the Real Estate Forms Manual which are re-printed with permission, and references to the

notices herein are the same as in the Real Estate Forms Manual. The notices are placed in the following

categories: (I) Consumer; (II) Residential; (III) Condominium; and (IV) All Real Estate Transactions. A

review of these notices highlights three areas of interest: (a) notices which should not be required when the

parties are represented by counsel; (b) the consequences when the notices are not properly given; and (c)

the extent to which notices and consequences are used to correct certain abuses incident to contracts for

deed.

Notices which should not be required when the parties to the transaction are represented by counsel are

the following:

1. Chapter 601 of the Texas Business and Commerce Code provides for the ―Cancellation of Certain

Consumer Transactions‖—at least where the purchaser is represented by counsel.

2. Tex. Prop. Code Sec. 5.013 -- Seller’s Disclosure of Location of Condition of Under Surface of

Unimproved Real Property—at least where the contract requires the seller to provide a title

insurance commitment to the buyer prior to closing and the buyer is entitled to terminate the

contract if the buyer’s objections to title as permitted by the contract are not cured by the seller

prior to closing.

3. Tex. Prop. Code Sec. 5.010 -- Notice to Purchaser of Additional Tax Liability—at least where the

real estate sales contract in a separate paragraph expressly provides for the payment of any

additional ad valorem taxes and interest that become due as a penalty because of: (1) the transfer

of the land or (2) a subsequent change in use of the land.

Failing to properly give a notice could result in any one of the following consequences:

1. A seller who enters into a consumer transaction in violation of Tex.Bus. &Com.Code Sec.

601.053(b) [Cancellation of Certain Consumer Transactions] has entered into a ―void‖

contract, is liable to the buyer for damages, reasonable attorney’s fees and court costs, and has

committed a false misleading, or deceptive act or practice as defined by Tex.Bus.&Com.Code Sec.

17.46(b)—A Deceptive Trade Practice. Tex.Bus.&Com.Code Sec. 601.201, 203, & 204.

2. Seller is required to give the notice [Seller’s Disclosure Notice] to buyer on or before the date of

the contract. If the seller fails to give the notice when a contract is entered into, buyer may


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terminate the contract for any reason not later than the seventh day after receiving the notice. Tex.

Prop. Code Sec. 5.008(f).

3. If seller fails to give the notice [Seller’s Notice of Obligations Related to Membership in

Property Owners’ Association] when a contract is entered into, buyer may terminate the contract

for any reason within the earlier of (1) seven days after receiving the notice or (2) the date of the

transfers occurs as provided in the contract. Termination of the contract is buyer’s sole remedy for

seller’s failure to provide the notice required under this section. Tex. Prop. Code Sec. 5.012(d) &

(e).

4. If the seller fails to give notice [Seller’s Disclosure of Location of Condition of Under Surface

of Unimproved Real Property] when a contract is entered into, buyer may terminate the contract

for any reason not later than the seventh day after the effective date of the contract. Tex. Prop.

Code Sec. 5.013(c).

5. If seller fails to give the notice [Seller’s Notice of Obligations Related to Public Improvement

District] when a contract is entered into, buyer may terminate the contract for any reason within

the earlier of (1) seven days after receiving the notice or (2) the date of the transfers occurs as

provided in the contract. Termination of the contract is buyer’s sole remedy for seller’s failure to

provide the notice required under this section. Tex. Prop. Code Sec. 5.014(d) & (e).

6. The consequences of not complying with this statute [Seller’s Disclosure of Known

Lead-Based Paint and/or Lead-Based Paint Hazards] are:

(a) Any person who knowingly fails to comply with any provision of this subpart shall be subject

to civil monetary penalties in accordance with the provisions of 42 U.S.C. 3545 and 24 CFR part 30.

(b) The Secretary [of Housing and Urban Development] is authorized to take such action as may

be necessary to enjoin any violation of this subpart in the appropriate Federal district court.

(c) Any person who knowingly violates the provisions of this subpart shall be jointly and severally

liable to the purchaser or lessee in an amount equal to 3 times the amount of damages incurred by such

individual.

(d) In any civil action brought for damages pursuant to 42 U.S.C. 4852d(b)(3), the appropriate

court may award court costs to the party commencing such action, together with reasonable attorney

fees and any expert witness fees, if that party prevails.

(e) Failure or refusal to comply with § 745.107 (disclosure requirements for sellers and lessors), §

745.110 (opportunity to conduct an evaluation), § 745.113 (certification and acknowledgment of

disclosure), or § 745.115 (agent responsibilities) is a violation of 42 U.S.C. 4852d(b)(5) and of TSCA

section 409 (15 U.S.C. 2689).

(f) Violators may be subject to civil and criminal sanctions pursuant to TSCA [Toxic Substance

Control Act] section 16 (15 U.S.C. 2615) for each violation. For purposes of enforcing this subpart, the

penalty for each violation applicable under 15 U.S.C. 2615 shall be not more than $11,000 for all

violations occurring after July 28, 1997; all violations occurring on or prior to that date are subject to a

penalty not more than $10,000.

40 C.F.R. § 745.118.


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7. A violation of this section does not invalidate a conveyance. If a contract is entered into without

the seller providing the notice [Seller’s Disclosure of Residential Property Encumbered by

Lien] required by Tex. Prop. Code Sec. 5.016, the purchaser may terminate the contract for any

reason on or before the seventh day after the purchaser receives notice in addition to other

remedies provided by this section or other law. Tex. Prop. Code Sec. 5.016(b).

8. ―If a purchaser of a [condominium] unit from a unit owner other than a declarant has not received

from the seller the declaration, bylaws, and association rules required by Section 82.157 before the

purchaser executes the contract of sale or if the contract does not contain an underlined or bold-

print provision acknowledging the purchaser’s receipt of those documents and recommending that

the purchaser read those documents before executing the contract, the purchaser may cancel the

contract before the sixth day after the date the purchaser receives the documents. If a purchaser

has not received a resale certificate before executing a contract of sale, the purchaser may cancel

the contract before the sixth day after the date the purchaser receives the resale certificate or

executes a waiver under Section 82.157, whichever occurs first.‖ Tex. Prop. Code Sec. 82.156(a).

9. The ―municipality may prescribe a penalty against a seller, not to exceed $500, for the failure of

the seller to obtain the execution and recordation of the notice [of restrictions and of the

municipality’s right to enforce compliance].‖ Tex. Loc. Govt Code Sec. 212.155(d)(3). ―This

section does not limit the seller’s right to recover a penalty, or any part of a penalty, imposed

pursuant to Subsection (d)(3) form a third party for the negligent failure to obtain the execution or

proper recordation of the notice.‖ Tex. Loc. Govt Code Sec. 212.155(e).

10. Failure to provide this notice [Seller’s Notice of Coastal Area Property or Real Property

Located Seaward of the Gulf Intracoastal Waterway] prior to closing, either in a written

executory contract or in a separate written statement is a deceptive act under section 17.46 of the

Texas Business & Commerce Code. Tex.Nat.Res.Code Sec. 33.135(d) & Tex.Nat.Res.Code Sec.

61.025(d).

11. Section 5.010(e) states that if the seller fails to include this notice [of additional tax liability] in

the contract, the purchaser is entitled to recover from the seller an amount equal to the amount of

any additional taxes and interest incurred as a penalty because of the transfer of the land or a

subsequent change in use of the land that occurs before the fifth anniversary of the date of the

transfer. Tex.Prop.Code Sec. 5.010 (e).

12. If the seller fails to give the notice [of potential annexation] when a contract is entered into,

buyer may terminate the contract for any reason within the earlier of (1) seven days after receiving

the notice or (2) the date of the transfers occurs. Tex. Prop. Code Sec. 5.011(e).

13. If a sale or conveyance of real property, within (i) a certificated service area of a utility

provider, (ii) a special utility district funded by taxes from the users or (iii) certain annexed

water and sanitary sewer districts, fails to comply with this section, the purchaser may file suit

and recover damages based upon either of the following:

(1) in the amount of all costs related to the purchase of the property plus interest and reasonable

attorney’s fees and conveyance of the property to the seller upon payment of these amounts;

or

(2) in an amount not to exceed $5,000 plus reasonable attorney’s fees.

Tex. Water Code Sec. 13.257 (l), (m) & (n); Tex. Water Code Sec. 49.452(o) & (p); & Tex. Water

Code Sec. 54.016(h)(4)(A).


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―Notwithstanding general or special law or the common law of this state to the contrary, the relief

provided under Subsections (m) and (n) [set forth above] provides the exclusive remedy for a purchaser

aggrieved by the seller’s failure to comply with this section.‖ Tex. Water Code Sec. 13.257(o); Tex. Water

Code Sec. 49.452(q); & Tex. Water Code Sec. 54.01(h)(4)(A).

Lastly, the number and extent of notices and consequences which apply to contracts for deed are

reflective of Texas law addressing the apparent abuse in this area of real estate contracting. Consider the

following consequences:

(d) The seller’s failure to provide information required by this section [Seller’s Disclosure of

Property Condition]:

(1) is a false, misleading, or deceptive act or practice within the meaning of Section 17.46,

Business & Commerce Code, and is actionable in a public or private suit brought under

Subchapter E, Chapter 17, Business & Commerce Code; and

(2) entitles the purchaser to cancel and rescind the executory contract and receive a full refund of

all payments made to the seller.

(e) Subsection (d) does not limit the purchaser’s remedy against the seller for other false,

misleading, or deceptive acts or practices actionable in a suit brought under Subchapter E,

Chapter 17, Business & Commerce Code.‖

Tex. Prop. Code Sec. 5.069.

(c) A violation of this section [Fee Simple Title Required; Maintenance of Fee Simple

Title]:




(2) in addition to other rights or remedies provided by law, entitles the purchaser to cancel and

rescind the executory contract and receive from the seller:

(A) the return of all payments of any kind made to the seller under the contract; and

(B) reimbursement for:

(i) any payments the purchaser made to a taxing authority for the property; and

(ii) the value of any improvements made to the property by the purchaser.

(d) A seller is not liable under this section if:

(1) a lien is placed on the property by a third person other than the seller; and

(2) not later than the 30th

day after the date the seller receives notice of the lien, the seller takes all

steps necessary to remove the lien and has the lien removed from the property.



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Having attempted to set the stage to gain the reader’s attention, the following is a review of the

mandatory disclosure notices for the seller to make and deliver to the buyer in certain real estate

transactions.

I. CONSUMER NOTICE

Chapter 601 of the Texas Business and Commerce Code provides for the ―Cancellation of Certain

Consumer Transactions.‖ The ―Notice of Consumer’s Right to Cancel Required‖ states:

―YOU, THE BUYER, MAY CANCEL THIS TRANSACTION AT ANY TIME PRIOR TO

MIDNIGHT OF THE THIRD BUSINESS DAY AFTER THE DATE OF THIS TRANSACTION.

SEE THE ATTACHED NOTICE OF CANCELLATION FORM FOR AN EXPLANTION OF

THIS RIGHT.‖ Tex.Bus.&Com.Code Sec. 601.052.

This notice applies to ―the purchase of real property for consideration that exceeds $100, payable in

installments or cash‖ and where the seller solicits the buyer at other than the seller’s place of business and

the seller gives the contract to the buyer at a place other than the seller’s place of business.

Tex.Bus.&Com.Code Sec. 601.002(a). Provided, however, this notice does not apply to a real property

transaction if:

―(A) the purchaser is represented by a licensed attorney;

(B) the transaction is negotiated by a licensed real estate broker; or

(C) the transaction is negotiated at a place other than the consumer’s residence by the

parties who own the property.‖

A seller that provides a contract for sale of real property governed by Tex.Bus.&Com.Code Sec. 601.052

must attach to the agreement a complete notice of cancellation in duplicate. Tex.Bus.&Com.Code Sec.

601.053(a). The seller must include on both copies of the form the following information:

(1) Seller’s name;

(2) Seller’s address;

(3) Date of the transaction; and

(4) Date not earlier than the third business day after the date of the transaction by which the buyer

must give notice of cancellation.

Tex.Bus.&Com.Code Sec. 601.053(b).

The notice of cancellation form as set forth on Form 8-4 of the Texas Real Estate Forms Manual

must be easily detachable from the contract to which it is attached, must be in the same language as the

contract, and must be set out in ten-point bold-faced type, TEX. BUS. & COM. CODE § 601.052.

A seller who enters into a consumer transaction in violation of Tex.Bus. &Com.Code Sec. 601.053(b)

has entered into a ―void‖ contract, Tex.Bus.&Com.Code Sec. 601.201, is liable to the buyer for damages,

reasonable attorney’s fees and court costs, Tex.Bus.&Com.Code Sec. 601.203, and has committed a false

misleading, or deceptive act or practice as defined by Tex.Bus.&Com.Code Sec. 17.46(b)—A Deceptive

Trade Practice. Tex.Bus.&Com.Code Sec. 601.204.

II. RESIDENTIAL TRANSACTION NOTICES

A. Tex. Prop. Code Sec. 5.008 -- Seller’s Disclosure of Property Condition.


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―(a) A seller of residential real property comprising not more than one dwelling unit located in this

state shall give to the purchaser of the property a written notice as prescribed by this section or a

written notice substantially similar to the notice prescribed by this section which contains, at a

minimum, all of the items in the notice prescribed by this section.‖

Subsection (b) sets out the ―Seller’s Disclosure Notice‖ in its entirety. The text of Subsection (b) has been

modified as of January 1, 2010 to apply to contracts entered into after January 1, 2010. The notice is set

forth in its entirety in Section 5.008 of the Texas Property Code.

Tex. Prop. Code Sec. 5.008(c) excludes from the seller or the seller’s agent the duty ―to make

disclosure or release information related to whether a death by natural causes, suicide, or accident unrelated

to the condition of the property occurred on the property or whether a previous occupant had, may have

had, has, or may have AIDS, HIV related illnesses, or HIV infection.‖ The notice is to be completed to the

best of seller’s belief and knowledge as of the date of the notice. If seller does not have knowledge of the

information required, seller should indicate accordingly, and by doing so, is in compliance with this

section. Tex. Prop. Code Sec. 5.008(d).

Tex. Prop. Code Sec. 5.008(e) excludes the following transfers of real property from the mandatory

―Seller’s Disclosure of Property Condition‖:

(1) pursuant to a court order or foreclosures sale;

(2) by a trustee in bankruptcy;

(3) pursuant to a deed in lieu of foreclosure;

(4) by a lien holder who has either purchased at a foreclosure sale or a sale pursuant to a court

order or accepted a deed in lieu of foreclosure;

(5) by a fiduciary in the course of an administration of a decedent’s estate, guardianship,

conservatorship, or trust;

(6) from one co-owner to one or more other co-owners;

(7) made to a spouse or to a person or persons in the lineal line of consanguinity of one or more

of the transferors;

(8) between spouses incident to divorce, legal separation or a property settlement agreement;

(9) to or from a governmental entity;

(10) a new residence of not more than one dwelling unit that has not been occupied for

residential purposes; or

(11) of real property where the value of any dwelling does not exceed five percent of the value of

the property.

Seller is required to give the notice to buyer on or before the date of the contract. If the seller fails to give

the notice when a contract is entered into, buyer may terminate the contract for any reason not later than the

seventh day after receiving the notice. Tex. Prop. Code Sec. 5.008(f).

B. Tex. Prop. Code Sec. 5.012 -- Notice of Obligations Related to Membership in Property Owners’

Association

―(a) A seller of residential real property that is subject to membership in a property owners’

association and that comprises not more than one dwelling unit located in this state shall give to

the purchaser of the property a written notice that reads substantially similar to the following:…‖

Tex. Prop. Code Sec.5.012. The text of the notice is set out in the statute and on Form 26-8 of the

Texas Real Estate Forms Manual.


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Seller is required to deliver the notice to buyer before the contract binds the buyer to purchase the property.

The notice can be given separately, as part of the contract during negotiations, or as part of any other notice

the seller delivers to buyer. If the notice is part of the contract, the title of the notice, the references to the

street address, date of the notice, and the buyer’s signature is not required. Tex. Prop. Code Sec. 5.012(b).

Tex. Prop. Code Sec. 5.012(c) excludes the following transfers of real property from the mandatory

―Notice of Obligations Related to Membership in Property Owners’ Association‖:










of the transferors;


(9) of only a mineral interest, leasehold interest or security interest; or

(10) of a real property interest in a condominium.

If seller fails to give the notice when a contract is entered into, buyer may terminate the contract for any

reason within the earlier of (1) seven days after receiving the notice or (2) the date of the transfers occurs as

provided in the contract. Tex. Prop. Code Sec. 5.012(d). Termination of the contract is buyer’s sole remedy

for seller’s failure to provide the notice required under this section. Tex. Prop. Code Sec. 5.012(e).

C. Tex. Prop. Code Sec. 5.013- Seller’s Disclosure of Location of Condition of Under Surface of

Unimproved Real Property

―(a) A seller of unimproved real property to be used for residential purposes shall provide to the

purchaser of the property a written notice disclosing the location of a transportation pipeline,

including a pipeline for the transportation of natural gas, natural gas liquids, synthetic gas,

liquefied petroleum gas, petroleum or a petroleum product, or a hazardous substance.‖ Tex. Prop.

Code Sec. 5.013(a).‖

The notice must state the information to the best of seller’s belief and knowledge as of the date of the

notice. If the seller does not have knowledge of the information required, the seller should indicate

accordingly. Tex. Prop. Code Sec. 5.013(b). Seller is required to give the notice to buyer on or before the

date of the contract. If the seller fails to give the notice when a contract is entered into, buyer may

terminate the contract for any reason not later than the seventh day after the effective date of the contract.

Tex. Prop. Code Sec. 5.013(c).

Seller is not required to give this notice if (1) the seller is obligated under the terms of the contact to

furnish a title insurance commitment to the buyer prior to closing; and (2) the buyer is entitled to terminate

the contract if the buyer’s objections to title as permitted by the contract are not cured by the seller prior to

closing. Tex. Prop. Code Sec. 5.013(f).


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D. Tex. Prop. Code Sec. 5.014 -- Notice of Obligations Related to Public Improvement District

A seller of residential real property that is located in a public improvement district established

under Subchapter A, Chapter 372, Local Government Code, and that consists of not more than one

dwelling unit located in this state shall give to the purchaser of the property a written notice that

reads substantially similar to the following:…‖

Tex. Prop. Code Sec.5.014(a). The text of the notice is set out in the statute and on Form 8-5 of the Texas

Real Estate Forms Manual.

Seller is required to deliver the notice to buyer before the contract binds the buyer to purchase the

property. The notice can be given separately, as part of the contract during negotiations, or as part of any

other notice the seller delivers to buyer. If the notice is part of the contract, the title of the notice, the

references to the street address, date of the notice, and the buyer’s signature are not required. Tex. Prop.

Code Sec. 5.014(b).

Tex. Prop. Code Sec. 5.014(c) excludes the following transfers of real property from the mandatory

―Notice of Obligations Related to Public Improvement District‖:










of the transferors;



(10) of a real property interest in a condominium.

If seller fails to give the notice when a contract is entered into, buyer may terminate the contract for any

reason within the earlier of (1) seven days after receiving the notice or (2) the date the transfers occurs as

provided by the contract. Tex. Prop. Code Sec. 5.014(d). Termination of the contract is buyer’s sole

remedy for seller’s failure to provide the notice required under this section. Tex. Prop. Code Sec. 5.014(e).

E. Tex. Prop. Code Sec. 5.061 – 5.085 -- Subchapter D Executory Contract for Conveyance.

―This subchapter applies only to a transaction involving an executory contract for conveyance of real

property to be used as the purchaser’s residence or as the residence of a person related to the purchaser

within the second degree of consanguinity or affinity, as determined under Chapter 573, Government Code.

For purposes of this subchapter, and only for the purposes of this subchapter:

(1) a lot measuring one acre or less is presumed to be residential property; and

(2) an option to purchase real property that includes or is combined or executed concurrently with a

residential lease agreement, together with the lease, is considered an executory contract for

conveyance of real property.

This subchapter does not apply to transactions involving state land or sales by certain governmental

entities. Tex. Prop. Code Sec. 5.062(b). It does not apply to an executory contract that provides for a


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delivery of a deed from the seller to the purchaser within 180 days of the date of the final execution of the

executory contract. Tex. Prop. Code Sec. 5.062(c). Certain provisions of this subsection do not apply to an

executory contract involving parties who are related within the second degree of consanguinity or affinity,

as defined under Chapter 573, Government Code and the purchaser has waived such provisions. Tex. Prop.

Code Sec. 5.062(d). Certain provisions of this subsection do not apply to an executory contract that

involves an option to purchase real property and a lease agreement. Tex. Prop. Code Sec. 5.062(e).

Further, even more provisions of this subsection do not apply to an executory contract that involves an

option to purchase real property and a lease agreement if the term of the lease is three years or less and the

parties or their agents or affiliates have not been parties to an executory contract to purchase the property

for longer than three years. Tex. Prop. Code Sec. 5.062(f).

Commonly referred to as a ―Contract for Deed‖, the following notices are required by this Subchapter.

Section 5.069 Seller’s Disclosure of Property Condition.

―(a) Before an executory contract is signed by the purchaser, the seller shall provide the purchaser

with:

(1) a survey, which was completed within the past year, or plat of a current survey of the real

property;

(2) a legible copy of any document that describes an encumbrance or other claim, including a

restrictive covenant or easement, that affects title to the real property; and a written notice,

which must be attached to the contract, informing the purchaser of the condition of the

property that must, at a minimum, be executed by the seller and purchaser and read

substantially similar to the following:… ― as set forth in the statute and Form 10-10 of the

Texas Real Estate Forms Manual. Tex. Prop. Code Sec. 5.069(a).

―(b) If the property is not located in a recorded subdivision, the seller shall provide the purchaser

with a separate disclosure form stating that utilities may not be available to the property until the

subdivision is recorded as required by law.

(c) If the seller advertises the property for sale under an executory contract, the advertisement must

disclose information regarding the availability of water, sewer, and electric service.

(d) The seller’s failure to provide information required by this section:




(4) entitles the purchaser to cancel and rescind the executory contract and receive a full refund of

all payments made to the seller.

(e) Subsection (d) does not limit the purchaser’s remedy against the seller for other false, misleading,

or deceptive acts or practices actionable in a suit brought under Subchapter E, Chapter 17, Business &

Commerce Code.‖

Tex. Prop. Code. Sec. 5.069.

Other disclosures required by the seller are the following:


10

Sec. 5.070 Seller’s Disclosure of Tax Payments and Insurance Coverage. The seller must provide

the purchaser with (1) a tax certificate for each taking unit that collects taxes due on the property as

provided by Section 31.08 of the Tax Code; and (2) a legible copy of any insurance policy or binder or

other evidence of insurance coverage on the property. The seller’s failure to comply with this section

results in the same remedies as set forth in Sec. 5.069 (d) & (e).

Sec. 5.071 Seller’s Disclosure of Financing Terms. Before an executory contract is signed, the seller

must provide to purchaser a written statement setting forth the financing terms, i.e. purchase price, interest

rate, an estimate of the total interest charged throughout the term, the total amount of principal and interest

to be paid under the contract; and the fact no prepayment fee can be charged.

Sec. 5.072 Oral Agreement Prohibited. Reinforcing that an executory contract must be in writing,

signed by the parties and excludes any prior oral agreements, this subsection sets forth a notice to this

effect which is set forth in Form 10-20 of the Texas Real Estate Forms Manual. The seller’s failure to

comply with this section results in the same remedies as set forth in Sec. 5.069 (d) & (e).

Sec. 5.074 Purchaser’s Right to Cancel Contract without Cause. A purchaser can cancel an

executory contract subject to this Chapter for any reason within 14 days after its execution by sending

written notice thereof to the seller. Tex. Prop. Code Sec. 5.074(a). Upon receipt of such notice, the seller

must return to the purchaser the executed contract and any property exchanged or payments made by the

purchaser under the contact and cancel any security interest arising out of the contract. Tex. Prop. Code.

Sec. 5.074(b). Section 5.074(c) sets forth the following provision to be placed in immediate proximity to

the signature line for the purchaser, advising the purchaser of this right.

THE PURCHASER MAY CANCEL THIS CONTRACT AT ANY TIME

DURING THE NEXT TWO WEEKS. THE DEADLINE FOR CANCELING

THE CONTRACT IS [date]. THE ATTACHED NOTICE OF

CANCELLATION EXPLAINS THIS RIGHT.

Section 5.074(d) sets out the form of the ―Notice of Cancellation‖ which the seller must provide to the

purchaser. This notice is set forth in Form 10-12 of the Texas Real Estate Forms Manual.

Sect. 5.085 Fee Simple Title Required; Maintenance of Fee Simple Title

―(a) A potential seller may not execute an executory contract with a potential purchaser if the

seller does not own the property in fee simple free from any liens or other encumbrances.

(b) Except as provided by this subsection, a seller, or the seller’s heirs or assigns, must maintain

fee simple title free from any liens or encumbrances to property covered by an executory contract for

the entire duration of the contract. This subsection does not apply to a lien or encumbrance placed on

the property that is:

(1) placed on the property because of the conduct of the purchaser;

(2) agreed to by the purchaser as a condition of a loan obtained to place improvements on the

property, including utility or fire protection improvements; or

(3) placed on the property by the seller prior to the execution of the contract in exchange for a

loan used only to purchase the property, if:

(A) the seller, not later than the third day before the date the contract is executed, notifies the

purchaser in a separate written disclosure:


11

(i) of the name, address, and phone number of the lienholder or, if applicable, servicer

of the loan;

(ii) of the loan number and outstanding balance of the loan;

(iii) of the monthly payments due on the loan and the due date of those payments; and

(iv) in 14-point type that, if the seller fails to make timely payments to the lienholder, the

lienholder may attempt to collect the debt by foreclosing the lien and selling the

property at a foreclosure sale;

(B) the lien:

(i) is attached only to the property sold to the purchaser under the contract; and

(ii) secures indebtedness that, at no time, is or will be greater in amount than the amount

of the total outstanding balance owed by the purchaser under the executory contract;

(C) the lienholder:

(i) does not prohibit the property from being encumbered by an executory contract; and

(ii) consents to verify the status of the loan on request of the purchaser and to accept

payments directly from the purchaser if the seller defaults on the loan; and

(D) the following covenants are placed in the executory contract:

(i) a covenant that requires the seller to make timely payments on the loan and to give

monthly statements to the purchaser reflecting the amount paid to the lienholder, the

date the lienholder receives the payment, and the information described by Paragraph

(A);

(ii) a covenant that obligates the seller, not later than the third day the seller receives or

has actual knowledge of a document or an event described by this subparagraph, to

notify the purchaser in writing in 14-point type that the seller has been sent a notice

of default, notice of acceleration, or notice of foreclosure or has been sued in

connection with a lien on the property and to attach a copy of all related documents

received to the written notice; and

(iii) a covenant that warrants that if the seller does not make timely payments on the loan

or any other indebtedness secured by the property, the purchaser may, without

notice, cure any deficiency with a lienholder directly and deduct from the total

outstanding balance owed by the purchaser under the executory contract, without the

necessity of judicial action, 150 percent of any amount paid to the lien holder.

(c) A violation of this section:




(4) in addition to other rights or remedies provided by law, entitles the purchaser to cancel and

rescind the executory contract and receive from the seller:

(C) the return of all payments of any kind made to the seller under the contract; and

(D) reimbursement for:


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(iii) any payments the purchaser made to a taxing authority for the property; and

(iv) the value of any improvements made to the property by the purchaser.

(d) A seller is not liable under this section if:

(3) a lien is placed on the property by a third person other than the seller; and

(4) not later than the 30th

day after the date the seller receives notice of the lien, the seller takes all

steps necessary to remove the lien and has the lien removed from the property.


F. Title 16 of the Code of Federal Regulations Sec. 460.16 -– What new home sellers must tell new

home buyers.

If you are a new home seller, you must put the following information in every sales contract: The

type, thickness, and R-value of the insulation that will be installed in each part of the house. There is an

exception to this rule. If the buyer signs the contract before you know what type of insulation will be put in

the house, or if there is a change in the contract, you can give the buyer a receipt stating this information as

soon as you find out.

16 CFR 460.16.

This notice is set out in Form 8-6 of the Texas Real Estate Forms Manual.

G. Title 40 of the Code of Federal Regulations—Chapter I, Subchapter R, Part 745, Subpart F –

Disclosure of Known Lead-Based Paint and/or Lead-Based Paint Hazards upon Sale or Lease of

Residential Property, Sec. 745.100 et seq. This subpart implements the provisions of 42 US. C. 4852d [the Residential Lead-Based Paint

Hazardous Reduction Act of 1992 (the ―Act‖)], which impose certain requirements on the sale or lease of

target housing. Under this subpart, a seller or lessor of target housing shall disclose to the purchaser or

lessee the presence of any known lead-based paint and/or lead- based paint hazards; provide available

records and reports; provide the purchaser or lessee with a lead hazard information pamphlet; give

purchasers a 10-day opportunity to conduct a risk assessment or inspection; and attach specific disclosure

and warning language to the sales or leasing contract before the purchaser or lessee is obligated under a

contract to purchase or lease target housing.

40 C.F.R. Sec. 745.100.

Target housing means any housing constructed prior to 1978, except housing

for the elderly or persons with disability (unless any child who is less than 6

years of age resides or is expected to reside in such housing) or any 0-

bedroom dwelling.

40 C.F.R. Sec. 745.103.

This notice is set out in 40 C.F.R. § 745.113 and Form 8-7 of the Texas Real Estate Forms Manual.

The seller and any agent should keep a copy of the completed notice for at least 3 years from date of

the closing of the sale. 40 C.F.R. § 745.113. ―This record keeping requirement is not intended to place any

limitations on civil suits under the Act, or to otherwise affect a lessee’s or purchaser’s rights under the civil

penalty provisions of 42. U.S.C. 4852d(b)(3).‖ 40 C.F.R. § 745.113.


13

The consequences of not comply with this statute are set forth in Sec. 745.118 Enforcement.

(a) Any person who knowingly fails to comply with any provision of this subpart shall be subject

to civil monetary penalties in accordance with the provisions of 42 U.S.C. 3545 and 24 CFR part 30.

(b) The Secretary [of Housing and Urban Development] is authorized to take such action as may

be necessary to enjoin any violation of this subpart in the appropriate Federal district court.

(c) Any person who knowingly violates the provisions of this subpart shall be jointly and severally

liable to the purchaser or lessee in an amount equal to 3 times the amount of damages incurred by such

individual.

(d) In any civil action brought for damages pursuant to 42 U.S.C. 4852d(b)(3), the appropriate

court may award court costs to the party commencing such action, together with reasonable attorney

fees and any expert witness fees, if that party prevails.

(e) Failure or refusal to comply with § 745.107 (disclosure requirements for sellers and lessors), §

745.110 (opportunity to conduct an evaluation), § 745.113 (certification and acknowledgment of

disclosure), or § 745.115 (agent responsibilities) is a violation of 42 U.S.C. 4852d(b)(5) and of TSCA

section 409 (15 U.S.C. 2689).

(f) Violators may be subject to civil and criminal sanctions pursuant to TSCA [Toxic Substance

Control Act] section 16 (15 U.S.C. 2615) for each violation. For purposes of enforcing this subpart, the

penalty for each violation applicable under 15 U.S.C. 2615 shall be not more than $11,000 for all

violations occurring after July 28, 1997; all violations occurring on or prior to that date are subject to a

penalty not more than $10,000.

40 C.F.R. § 745.118.

H. Title 29 of the Code of Federal Regulations Sec. 1910.1001, et seq. and 1926.1101 et seq.-- Notice

Concerning Asbestos. Sections 1910.1001, et seq., and 1926.1101, et seq., of Title 29 of the Code of Federal Regulations

require the seller to confirm its knowledge of the presence or absence of asbestos in the property being

sold. This notice is set out in Form 8-8 of the Texas Real Estate Forms Manual.

I. Tex. Prop. Code Sec. 5.016 --Conveyance of Residential Property Encumbered by Lien.

Under section 5.016 of the Texas Property Code, a person may not convey an interest in or enter into a

contract to convey an interest in residential real property that will be encumbered by a recorded lien at the

time the interest is conveyed unless, on or before the seventh day before the earlier of the effective date of

the conveyance or the execution of an executory contract binding the purchaser to purchase the property, an

option contract, or other contract, the person provides the purchaser and each lienholder a separate written

disclosure statement in at least 12-point type that provides the information set out in the statute and as set

forth in Form 8-9 of the Texas Real Estate Forms Manual.

A violation of this section does not invalidate a conveyance. Except for certain transactions exempted

from the disclosure requirements as provided by section 5.016(c) and (d), if a contract is entered into

without the seller providing the notice required by this section 5.016, the purchaser may terminate the

contract for any reason on or before the seventh day after the date the purchaser receives the notice in

addition to other remedies provided by this section or other law. Section 5.016(c) exempts the following

transfers from the disclosure requirements:


14




(4) by a lien holder who has either purchased at a foreclosure sale or a sale pursuant to a court order

or accepted a deed in lieu of foreclosure;




(7) made to a spouse or to a person or persons in the lineal line of consanguinity of one or more of

the transferors;

(8) Between spouses incident to a decree of divorce, legal separation or a property settlement;


(10) where a purchaser obtains a title insurance policy insuring the transfer of title to the real property;

or

(11) To a person who has purchased, conveyed, or entered into contracts to purchase or convey an

interest in real property four or more times in the last preceding 12 months.

Under section 5.016(d), a violation of this section is not actionable if the person required to give notice

reasonably believes and takes any necessary action to ensure that each lien for which notice was not

provided will be released on or before the 30th day after the date on which title to the property is

transferred.

III. CONDOMINIUM TRANSACTION NOTICES

A. Tex. Prop. Code Sec. 82.156-– Purchaser’s Right to Cancel.

―(a) If a purchaser of a unit from a unit owner other than a declarant has not received from the

seller the declaration, bylaws, and association rules required by Section 82.157 before the

purchaser executes a contract of sale or if the contract does not contain an underlined or bold-print

provision acknowledging the purchaser’s receipt of those documents and recommending that the

purchaser read those documents before executing the contract, the purchaser may cancel the

contract before the sixth day after the date the purchaser receives the documents. If a purchaser

has not received a resale certificate before executing a contract of sale, the purchaser may cancel

the contract before the sixth day after the date the purchaser receives the resale certificate or

executes a waiver under Section 82.157, whichever occurs first.‖

Tex. Prop. Code Sec. 82.156(a).

The Acknowledgement of Receipt of Condominium Documents is set out in Forms 8-10 of the

Texas Real Estate Forms Manual.

Section 82.156(b) of the Texas Property Code sets out a comparable provision for the declarant except

it requires the declarant to deliver the ―condominium information statement‖ as required by section 82.153

of the Texas Property Code, instead of the declaration, bylaws, and association rules as required by section

82.157 of the Texas Property Code.

B. Tex. Prop. Code Sec. 82.157 --Resale of Unit.

Pursuant to section 81.157 of the Texas Property Code, a condominium association is required to

furnish a Resale Certificate no later than the 10th

day after the date of receiving a written request from the

selling unit owner. If a condominium association fails to furnish the Resale Certificate within the 10-day

period, the selling unit owner may deliver to purchaser a sworn affidavit in lieu of the Resale Certificate


15

and the seller and purchaser may agree in writing to waive the requirement of seller delivering the Resale

Certificate.

If the purchaser from a seller, other than a declarant, has not received a resale certificate before the

purchaser executes the contract, the purchaser has the right to cancel the contract before the sixth day after

the purchaser receives the resale certificate or executes a waiver pursuant to section 82.157(c) of the Texas

Property Code, whichever occurs first.

The Condominium Resale Certificate and Waiver of Condominium Resale Certificate are set out

in Form 8-11 of the Texas Real Estate Forms Manual.

IV. ALL REAL PROPERTY TRANSACTION NOTICES

A. Title 30 of the Tex. Adm. Code, Sec. 334.9 -– Seller’s Disclosure [Underground and Above

Ground Storage Tanks] Effective on and after the effective date of this subchapter [9/29/89], any person who sells or otherwise

legally conveys a tank (or tank system) which is designed or intended to be installed as an underground

storage tank (UST) or an aboveground storage tank (AST) must provide the purchaser (or grantee) with

written notification of a tank owner's obligations relative to the agency's tank registration, compliance self-

certification, and construction/installation notification provisions under § 334.7 of this title (relating to

Registration for Underground Storage Tanks (USTs) and UST Systems); § 334.127 of this title (relating to

Registration for Aboveground Storage Tanks (ASTs)); § 334.8 of this title (relating to Certification for

Underground Storage Tanks (USTs) and UST Systems); § 334.6 of this title (relating to Construction

Notification for Underground Storage Tanks (USTs) and UST Systems); and § 334.126 of this title

(relating to Installation Notification for Aboveground Storage Tanks (ASTs)).

Tex. Adm. Code Sec. 334.9.

The information required is set forth in the statute and in Form 8-12 of the Texas Real Estate Forms

Manual. ―The written notification must be provided by the seller (or grantor) to the purchaser (or grantee)

prior to the conveyance of the tanks, or prior to the time of the real property closing, as applicable.‖ Tex.

Adm. Code. Sec. 334.9(3).

B. Tex. Local Gov’t Code, Chapter 212. Municipal Regulation of Subdivisions and Property

Development, Subchapter F. Enforcement of Land Use Restrictions Contained in Plats and

Other Instruments—Notice to Purchasers, Sec. 212.155

The governing body of the municipality may require, in the manner prescribed by law for official

action of the municipality, any person who sells or conveys restricted property located inside the

boundaries of the municipality to first give to the purchaser written notice of the restrictions and notice of

the municipality’s right to enforce compliance.

Tex. Local Gov’t Code Sec. 212.155(a).

The notice shall contain the information set forth in the statue and Form 8-13 of the Texas Forms

Manual. The notice must be given to the purchaser on or before the final closing, signed and

acknowledged by both seller and purchaser, and recorded in the real property records in the county where

the real property is located. Tex. Local Gov't Code Sec. 212.155(b) & (c). The ―municipality may

prescribe a penalty against a seller, not to exceed $500, for the failure of the seller to obtain the execution

and recordation of the notice.‖ Tex. Local Gov’t Code Sec. 212.155(d)(3). ―This section does not limit the

seller’s right to recover a penalty, or any part of a penalty, imposed pursuant to Subsection (d)(3) form a

third party for the negligent failure to obtain the execution or proper recordation of the notice.‖ Tex. Local

Gov’t Code Sec. 212.155(e).


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C. Tex. Nat. Res. Code Sec. 33.135 -- Notice to Purchaser or Grantee of Coastal Area Property

Section 33.135(a) of the Texas Natural Resources sets out the mandatory notice that must be placed in

a written executory contract for the sale, transfer, or conveyance of real property, other than a mineral,

leasehold, or security interest, adjoining and abutting the tidally influenced waters of the State of Texas.

Tex.Nat.Res.Code Sec. 33.135(a). If the real property described in this section is sold, transferred or

conveyed without a written executory contract, this notice must be delivered to the grantee for execution

and acknowledgement of receipt before the conveyance is recorded. Tex.Nat.Res.Code Sec. 33.135(b).

Failure to include this notice in a written executory contract is grounds for the purchaser to terminate the

contract and have its earnest money returned. Tex.Nat.Res.Code Sec.33.135(c). Failure to provide this

notice prior to closing, either in a written executory contract or in a separate written statement is a

deceptive act under section 17.46 of the Texas Business & Commerce Code. Tex.Nat.Res.Code Sec.

33.135(d). This notice is set forth in Form 8-14 of the Texas Real Estate Forms Manual.

D. Tex. Nat. Res. Code Sec. 61.025-- Disclosure to Purchaser of Property Section 61.025 of the Texas Natural Resources Code sets out the mandatory notice that must be placed

in a written executory contract for the sale, transfer, or conveyance of real property, other than a mineral,

leasehold, or security interest, located seaward of the Gulf Intracoastal Waterway to its southernmost point

and then seaward of the longitudinal line also known as 97 degrees, 12’, 19‖ which runs southerly to the

international boundary from the intersection of the centerline of the Gulf Intracoastal Waterway and the

Brownsville Ship Channel. Tex.Nat.Res.Code Sec. 61.025(a). If the real property described in this section

is sold, transferred, or conveyed without a written executory contract, this notice must be delivered to the

grantee for execution and acknowledgement of receipt not later than ten calendar days before closing of the

transaction.. Tex.Nat.Res.Code Sec.61.025(b). Failure to include this notice in a written executory

contract is grounds for the purchaser to terminate the contract and have its earnest money returned.

Tex.Nat.Res.Code Sec.61.025(c). Failure to provide this notice prior to closing, either in a written

executory contract or in a separate written statement, is a deceptive act under section 17.46 of the Texas

Business & Commerce Code. Tex.Nat.Res.Code Sec. 61.025(d). This notice is set forth in Form 8-15 of

the Texas Real Estate Forms Manual.

E. Tex. Prop. Code Sec. 5.010 -- Notice to Purchaser of Additional Tax Liability

―(a) A person who is the owner of an interest in vacant land and who contracts for the transfer of

that interest shall include in the contract the following bold-faced notice:…‖ as set forth in the

statute and in Form 8-16 of the Texas Real Estate Forms Manual. The notice essentially advises

the purchaser that the property may be subject to reduced taxation which the purchaser may not

qualify for and/or may be removed based upon the transfer of the property and/or the change in use

of the property.

Tex. Prop. Code Sec. 5.010(b) states that this section does not apply to contracts for the following

transfers:








(6) of only mineral interest, leasehold interest or security interest; or


17

(7) to or from a governmental entity.

Tex. Prop. Code Sec. 5.010(c) states that this section does not apply to contracts for transfers of

interest in land if every transferee under the contract is:

(1) a person who is a co-owner with an owner described by Subsection (a) of an undivided interest

in the land; or

(2) a spouse or a person in the lineal line of consanguinity of an owner described by Subsection (a).

Tex. Prop. Code Sec. 5.010(d) states that this section does not apply ―if in a separate paragraph of the

contract the contract expressly provides for the payment of any additional ad valorem taxes and interest that

become due as a penalty because of:

4. the transfer of the land; or

5. a subsequent change in use of the land.

Tex. Prop. Code Sec. 5.010(e) states that if the seller fails to include this notice in the contract, the

purchaser is entitled to recover from the seller an amount equal to the amount of any additional taxes and

interest incurred as a penalty because of the transfer of the land or a subsequent change in use of the land

that occurs before the fifth anniversary of the date of the transfer. Tex.Prop.Code Sec. 5.010 (e).

F. Tex. Prop. Code Sec. 5.011 -- Seller’s Disclosure Regarding Potential Annexation

―(a) A person who sells an interest in real property in this state shall give to the purchaser of the

property a written notice that reads substantially similar to the following:…‖ as set forth in the statute and

in Form 8-17 of the Texas Real Estate Forms Manual. The notice advises the purchaser that the

property may now or later be included in the extraterritorial jurisdiction of a municipality and may now or

later be subject to annexation by the municipality.

Tex. Prop. Code Sec. 5.011(c) excludes the following transfers of real property from this section:









(7) made to a spouse or to a person or persons in the lineal line of consanguinity of one or more of

the transferors;



(10) of real property that is located wholly within a municipality’s corporate boundaries.

If the seller fails to give the notice when a contract is entered into, buyer may terminate the contract for any

reason within the earlier of (1) seven days after receiving the notice or (2) the date of the transfers occurs.

Tex. Prop. Code Sec. 5.011(e).

G. Tex. Water Code Sec. 13.257 -- Notice to Purchasers

Section 13.257 (a) of the Texas Water Code defines ―utility service provider‖ as ―a utility, a water


18

supply or sewer service corporation, or a special utility district organized and operating under Chapter 65.‖

―If a person proposes to sell or convey unimproved real property located in a certificated service area of a

utility provider, the person must give to the purchaser written notice as prescribed by this section. An

executory contract for the purchase and sale of real property that has a performance period of more than

six months is considered a sale of real property under this section.‖ Tex. Water Code Sec. 13.257(b).

Transfers exempt from this section are:

(1) Under any type of lien foreclosure;

(2) in cancellation of indebtedness secured by a lien on the property conveyed;

(3) by reason of a will or probate proceeding;


(5) of real property that is located wholly within the corporate limits of a municipality;

(6) of property that receives water or sewer service from a utility service provider on the date

the property is transferred;


(8) pursuant to non-judicial foreclosure sale, a court ordered sale, or a deed in lieu of

foreclosure;



of the transferors;

(11) of mineral interests, leasehold interests, or security interest.

Tex. Water Code Sec. 13.257(c).

The seller must give a prospective purchaser this notice before or at the same time as the execution of

the contract. At closing, purchaser and seller must sign and acknowledge a separate copy of the notice with

current information. The signed copy must be filed in the real property records where the property is

located. Tex. Water Code Sec. 13.257(g). Each special utility district keeps a map of its service area and

must file the map in the real property records of the certificated service area. Tex. Water Code Sec.

13.257(h). This notice is set forth in Form 8-18 of the Texas Real Estate Forms Manual.

If a sale or conveyance of real property within a certificated service area of a utility provider fails to

comply with this section, the purchaser may file suit and recover damages based upon either of the

following:

(3) Subsection (m) provides for damages in the amount of all costs related to the purchase of the

property plus interest and reasonable attorney’s fees and conveyance of the property to the seller

upon payment of these amounts; or

(4) Subsection (n) provides for damages in an amount not to exceed $5,000 plus reasonable attorney’s

fees.

Tex. Water Code Sec. 13.257 (l), (m) & (n).

―Notwithstanding general or special law or the common law of this state to the contrary, the relief

provided under Subsections (m) and (n) provides the exclusive remedy for a purchaser aggrieved by the

seller’s failure to comply with this section.‖ Tex. Water Code Sec. 13.257(o).


19

H. Tex. Water Code Sec. 49.452 -- Notice to Purchasers

Any person who proposes to sell or convey real property located in a district created under this title or

by a special Act of the legislature that is providing or proposing to provide, as the district’s principal

function, water, sanitary sewer, drainage, and flood control or protection facilities or services, or any of

these facilities or services that have been financed or are proposed to be financed with bonds of the district

payable in whole or part form taxes of the users, other than agricultural, irrigation, or industrial users, and

which district includes less than all the territory in at least one county and which, if located within the

corporate area of a city, includes less than 75 percent of the city in whole or in substantial part, must first

give to purchaser the written notice provided in this section. [This notice is set forth in Form 8-19 of the

Texas Real Estate Forms Manual.]

Tex. Water Code Sec. 49.542(a)(1).

Transfers exempt from this section are:

(1) Under any type of lien foreclosure;

(2) in cancellation of indebtedness secured by a lien on the property conveyed;

(3) by reason of a will or probate proceeding; or

(4) to or from a governmental entity.

Tex. Water Code Sec. 49.452(a)(2).

If the seller fails to provide the notice, the purchaser may cancel the contract. By accepting the notice,

the purchaser waives its rights under section 49.452. Tex. Water Code Sec. 49.452(f). A separate copy of

the notice must be executed by the seller and purchaser, acknowledged, and recorded with the deed.

Tex.Water Code Sec. 49.452(h).

If a sale or conveyance of real property within a certificated service area of a utility provider fails to

comply with this section, the purchaser may file suit and recover damages based upon either of the

following:

(1) Subsection (o) provides for damages in the amount of all costs related to the purchase of the

property plus interest and reasonable attorney’s fees and conveyance of the property to the seller

upon payment of these amounts; or

(2) Subsection (p) provides for damages in an amount not to exceed $5,000 plus reasonable attorney’s

fees.

Tex. Water Code Sec. 49.452(o) & (p).

―Notwithstanding any part or provision of the general or special law or the common law of this state to

the contrary, the relief provided under Subsections (o) and (p) shall be the exclusive remedies for a

purchaser aggrieved by the seller’s failure to comply with this section.‖ Tex. Water Code Sec. 49.452(q).

I. Tex. Water Code Sec. 54.016(h)(4)(A) -- Notice to Purchaser of Property Located in Certain

Annexed Water Districts

Tex. Water Code Sec. 54.016(h)(4)(A) sets out the mandatory notice provisions when the real property

is located in a water or sanitary sewer district which entered into a contract with a city with a population of

1.8 million or less that allows the city to set rates in the district after annexation which are different from

rates charged to other residents of the city. The seller, at or prior to closing, must deliver a separate written

notice, executed and acknowledged by the seller containing the information set forth in this notice. The

purchaser must sign the notice to evidence receipt thereof. Tex. Water Code Sec. 49.452(g)-(p) apply to


20

this notice provision, including purchaser’s right to seek damages if the sale or conveyance of the property

is not made in compliance with this statute. Tex. Water Code Sec. 54.01(h)(4)(A). This notice is set forth

in Form 8-20 of the Texas Real Estate Forms Manual.

J. Tex. Local Gov’t Code Sec. 232.0033 -– Additional Requirements: Future Transportation

Corridor

If all or part of a subdivision for which a plat is required under this chapter is located within a future

transportation corridor identified in an agreement under Section 201.619, Transportation Code: …

(2) each purchase contract or lease between the subdivider and a

purchaser or lessee of land in the subdivision must contain a

conspicuous statement that the land is located within the area of the

alignment of a transportation project as shown in the final

environmental decision document that is applicable to the future

transportation corridor.

Tex. Local Gov’t Code Sec. 232.0033(b). The form of this notice is set forth in Form 8-21 of the Texas

Real Estate Forms Manual.

K. Tex. Occ. Code Sect. 1958.154 -- Certificate of Mold Remediation; Duty of Property Owner A property owner, who sells property that has been issued a certificate of mold remediation pursuant to

this section, must deliver copies to the purchaser of each certificate of mold remediation issued for the

property during the preceding five (5) years. Tex. Occ. Code Sec. 1958.154.


21

Exhibit D

Notices, Statements, and Certificates

The notices, statements, and certificates (arranged by their application to particular transactions) that

are listed below are [included in the sales contract/ [and] attached for delivery to Buyer], and Buyer

acknowledges receipt of the notices, statements, and certificates by executing this contract:

Consumer Notices

1. Notice concerning the purchaser’s three-day right of rescission under a contract to purchase real

property if (1) the seller or the seller’s agent solicits the sale at a place other than the seller’s

place of business; (2) the purchaser submits the purchase contract to the seller or the seller’s

agent at a place other than the seller’s place of business; and (3) the consideration payable under

the purchase contract exceeds $100; unless either (1) the purchaser is represented by a licensed

attorney; (2) the transaction is negotiated by a licensed real estate broker; or (3) the transaction

is negotiated at a place other than the purchaser’s residence by the person who owns the

property, as described in chapter 39 of the Texas Business and Commerce Code. Form 8-4

Residential Transaction Notices

2. Seller’s disclosure of the condition of residential property, described in section 5.008 of the

Texas Property Code. (No form provided, statute contains full text of disclosures required.)


22

3. Notice concerning the sale of single-family residential property that is subject to membership in

a property owners association, described in section 5.012 of the Texas Property Code. Form 26-

8 (located in Chapter 26).

4. Seller’s disclosure of the location of pipelines under the surface of unimproved property to be

used for residential purposes, described in section 5.013 of the Texas Property Code. A seller of

unimproved property to be used for residential purposes shall provide the purchaser written

notice disclosing the location of any transportation pipeline to the best of seller’s belief and

knowledge as of the date the notice is completed and signed by the seller. If the information

required to be disclosed is not known by the seller, the seller shall indicate that fact in the

notice. A seller is not required to give this notice if (1) the seller is obligated under the terms of

the contact to furnish a title insurance commitment to the buyer prior to closing; and (2) the

buyer is entitled to terminate the contract if the buyer’s objections to title as permitted by the

contract are not cured by the seller prior to closing. (No form provided because the attached

Real Estate Sales Contract satisfies the provisions for exemption from disclosure.)

5. Seller’s disclosure that a single-family residential property is located within a public

improvement district, described in section 5.014 of the Texas Property Code. Form 8-5

(Formerly Form 29-43)

6. Notice regarding the sale of property used or to be used as the purchaser’s residence if the

contract does not provide for delivery of a deed from the seller to the purchaser within 180 days

after the final execution of the contract, described in sections 5.061–.085 of the Texas Property


23

Code. (No form provided since Chapter 10 addresses Residential Contracts for Deed and has all

of the required notices.)

7. Notice concerning insulation to be installed in a new home, described in section 460.16 of title

16 of the Code of Federal Regulations. Form 8-6 ( New)

8. Lead-paint warning statement, described in section 745.100 et seq. of title 40 of the Code of

Federal Regulations. Form 8-7 (Formerly Form 29-20)

9. Notice concerning asbestos, described in sections 1910.1001 and 1926.1101 of title 29 of the

Code of Federal Regulations. Form 8-8 (Formerly Form 29-5)

10. Notice to the purchaser and each lienholder required under Texas Property Code section 5.016

that property being sold will be conveyed subject to a lien. Form 8-9 (New)

Condominium Transaction Notices

11. Condominium declaration, bylaws, and association rules, described in section 82.156 of the

Texas Property Code. Form 8-10 (New)

12. Resale certificate from the condominium owners association, described in section 82.157 of the

Texas Property Code. (Form of Condominium Resale Certificate promulgated by the Texas Real

Estate Commission is set forth in Appendix B, Form B-14.) Waiver of Resale Certificate is

described in section 82.158 of the Texas Property Code. Form 8-11 (New)


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All Real Property Transaction Notices

13. Notice concerning underground storage tanks, described in section 334.9 of title 30 of the Texas

Administrative Code. Form 8-12 (New)

14. Notice of deed restrictions, described in section 212.155 of the Texas Local Government Code.

Form 8-13 (New)

15. Notice regarding real property located adjacent to tidally influenced, submerged lands of Texas,

described in section 33.135 of the Texas Natural Resources Code. Form 8-14 (New)

16. Notice concerning public easements to the public beach, described in section 61.025 of the

Texas Natural Resources Code. Form 8-15 (New)

17. Notice of additional tax liability for vacant land that has been subject to a special tax appraisal

method, described in section 5.010 of the Texas Property Code. Form 8-16 (New)

18. Notice concerning the sale of property located outside the limits of a municipality that may now

or later be included in the extraterritorial jurisdiction of a municipality and may now or later be

subject to annexation by the municipality, described in section 5.011 of the Texas Property

Code. Form 8-17 (formerly Form 29-39)


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19. Notice for property in a certificated service area of a utility service provider, described in

section 13.257 of the Texas Water Code. Form 8-18 (formerly Form 29-41)

20. Notice concerning the bonded indebtedness of, or rates to be charged by, a utility or other

special district, described in section 49.452 of the Texas Water Code, with the form of notice to

be used being dependent on whether the property is (1) located in whole or in part within the

extraterritorial jurisdiction of one or more home-rule municipalities but is not located within the

corporate boundaries of a municipality, (2) located in whole or in part within the corporate

boundaries of a municipality, or (3) not located in whole or in part within the corporate

boundaries of a municipality or the extraterritorial jurisdiction of one or more home-rule

municipalities. Form 8-19 (Formerly Form 29-36) and

21. Notice required by section 54.016(h)(4)(A) of the Texas Water Code when property being sold

is located in a water or sanitary sewer district which entered into a contract with a city with a

population of 1.8 million or less under which the city is permitted to set rates in the district after

annexation that are different from rates charged other residents of the city. Form 8-20 (New)

22. Notice required under Texas Local Government Code section 232.0033 that all or part of the

subdivision in which property being sold is located within the area of the alignment of a

transportation project as shown in the final environmental decision document that is applicable

to a future transportation corridor identified in a contract between the Texas Department of

Transportation and a county under Texas Transportation Code section 201.619. Form 8-21

(New)


26

23. Notice pursuant to section 1958.154 of the Texas Occupations Code, entitled ―Certificate of

Mold Remediation; Duty of Property Owner,‖ requiring a property owner who sells property

that has been issued a certificate of mold remediation pursuant to this section, to deliver copies

to the purchaser of each certificate of mold remediation issued for the property within the

preceding five years.


27

Form 8-4 Notice of Cancellation

A notice concerning the purchaser’s three-day right of rescission under a contract to purchase real property

must be given if (1) the seller or the seller’s agent solicits the sale at a place other than the seller’s place of

business; (2) the purchaser submits the purchase contract to the seller or the seller’s agent at a place other

than the seller’s place of business; and (3) the consideration payable under the purchase contract exceeds

$100; unless either (1) the purchaser is represented by a licensed attorney; (2) the transaction is negotiated

by a licensed real estate broker; or (3) the transaction is negotiated at a place other than the purchaser’s

residence by the person who owns the property, TEX. BUS. & COM. CODE § 601.002.

The notice of cancellation form must be easily detachable from the contract to which it is attached, must be

in the same language as the contract, and must contain the following information and statements in ten-

point bold-faced type, TEX. BUS. & COM. CODE § 601.052.

______________________________________________________________________________

Notice of Cancellation

[Date]

YOU MAY CANCEL THIS TRANSACTION, WITHOUT ANY PENALTY OR

OBLIGATION, WITHIN THREE BUSINESS DAYS FROM THE ABOVE DATE.

IF YOU CANCEL, ANY PROPERTY TRADED IN, ANY PAYMENTS MADE BY YOU

UNDER THE CONTRACT OR SALE, AND ANY NEGOTIABLE INSTRUMENT EXECUTED BY

YOU WILL BE RETURNED WITHIN 10 BUSINESS DAYS FOLLOWING RECEIPT BY THE

MERCHANT OF YOUR CANCELLATION NOTICE, AND ANY SECURITY INTEREST

ARISING OUT OF THE TRANSACTION WILL BE CANCELED.

IF YOU CANCEL YOU MUST MAKE AVAILABLE TO THE MERCHANT AT YOUR

RESIDENCE, IN SUBSTANTIALLY AS GOOD CONDITION AS WHEN RECEIVED, ANY

GOODS DELIVERED TO YOU UNDER THIS CONTRACT OR SALE; OR YOU MAY IF YOU

WISH, COMPLY WITH THE INSTRUCTIONS OF THE MERCHANT REGARDING THE

RETURN SHIPMENT OF THE GOODS AT THE MERCHANT’S EXPENSE AND RISK.

IF YOU DO NOT AGREE TO RETURN THE GOODS TO THE MERCHANT OR IF THE

MERCHANT DOES NOT PICK THEM UP WITHIN 20 DAYS OF THE DATE OF YOUR

NOTICE OF CANCELLATION, YOU MAY RETAIN OR DISPOSE OF THE GOODS WITHOUT

ANY FURTHER OBLIGATION.

TO CANCEL THIS TRANSACTION, MAIL OR DELIVER A SIGNED AND DATED COPY

OF THIS CANCELLATION NOTICE OR ANY OTHER WRITTEN NOTICE, OR SEND A


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TELEGRAM TO [name of merchant], AT [address of merchant's place of business] NOT LATER

THAN MIDNIGHT OF [date].

I HEREBY CANCEL THIS TRANSACTION.

Dated: ________________________________

___________________________________

Name of purchaser]

[In addition to giving the notice of cancellation separately, the seller must insert the following at the end of

the contract to purchase above the buyer’s signature. This must be in a minimum of ten-point bold-faced

type.]

YOU, THE BUYER, MAY CANCEL THIS TRANSACTION AT ANY TIME PRIOR TO

MIDNIGHT OF THE THIRD BUSINESS DAY AFTER THE DATE OF THIS TRANSACTION.

SEE THE ATTACHED NOTICE OF CANCELLATION FORM FOR AN EXPLANATION OF

THIS RIGHT.


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Form 8-5 Notice of Obligation to Pay Public Improvement District Assessment

A seller of residential property that is located in a public improvement district and that consists of not more

than one dwelling unit must give the purchaser written notice that it will be obligated to pay assessments

for an improvement project. Certain transactions are exempted. The notice must be given before the

effective date of the executory contract. Notice may be given separately, as part of the contract, or as part

of another notice and must be substantially similar to the prescribed form. If an executory contract is

entered into without the notice having been given, the purchaser may, as its exclusive remedy, terminate the

contract for any reason no later than the earlier of (1) the seventh day after the date the purchaser receives

the notice or (2) the date the transfer occurs as provided by the executory contract. The requirement applies

to an executory contract that is binding on a seller and purchaser on or after January 1, 2006. TEX. PROP.

CODE § 5.014.

______________________________________________________________________________

Notice of Obligation to Pay Public Improvement District Assessment

to [name of municipality or county levying assessment]

Concerning the Property at [street address]

Seller[s]:

Purchaser[s]:

Real Property:

Date:

As a purchaser of this parcel of real property you are obligated to pay an assessment to a

municipality or county for an improvement project undertaken by a public improvement district under

chapter 372 of the Local Government Code. The assessment may be due annually or in periodic

installments. More information concerning the amount of the assessment and the due dates of that

assessment may be obtained from the municipality or county levying the assessment.

The amount of the assessments is subject to change. Your failure to pay the assessments could result

in a lien on and the foreclosure of your property.

___________________________________

[Name of purchaser]


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Form 8-6 Notice by Seller of New Home to Buyer of New Home

This form sets out the mandatory notice under section 460.16 of title 16 of the Code of Federal

Regulations. If a person is a new home seller, that person must put the following information in every sales

contract: The type, thickness, and R-value of the insulation that will be installed in each part of the house.

There is an exception to this rule. If the buyer signs a sales contract before the seller knows what type of

insulation will be put in the house, or if there is a change in the contract, the seller can give the buyer a

receipt stating this information as soon as the seller finds out the information. This regulation is

enforceable by the Federal Trade Commission. The failure of the seller to provide this information does not

appear to invalidate the contract or render the sale voidable but may subject the seller to a claim for

damages.

NOTICE REGARDING INSULATION TO BUYER OF NEW HOME1

Name of Seller:

Address of Seller:

Name of Buyer:

Address of Buyer’s New Home:

Description of Type, Thickness and R-value of the insulation that will be installed in each part of the new

house:

(Date) (Signature of Seller)

(Name of Seller - Typed or Printed)

1 Use this form when the information was not available to be included in the sale contract or the relevant information changed

after the execution of the sale contract.


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Form 8-7 Disclosure of Information on Lead Based Paint

This disclosure is used to warn a buyer about potential risks associated with lead-based paint. The

form is based on the notice requirements of 40 C.F.R. § 745.113 and the disclosure form suggested

by the Department of Housing and Urban Development; the language should not be altered without a

review of the applicable regulations. The heading and text of the notice are required by the regulations

to be in bold-faced type.

______________________________________________________________________________

Disclosure of Information on Lead-Based Paint

and/or Lead-Based Paint Hazards Seller’s Name and Address:

Buyer’s Name and Address:

Description of Property:

Lead Warning Statement

Every purchaser of any interest in residential real property on which a residential

dwelling was built prior to 1978 is notified that such property may present exposure to

lead from lead-based paint that may place young children at risk of developing lead

poisoning. Lead poisoning in young children may produce permanent neurological

damage, including learning disabilities, reduced intelligence quotient, behavioral

problems, and impaired memory. Lead poisoning also poses a particular risk to

pregnant women. The seller of any interest in residential real property is required to

provide the buyer with any information on lead-based paint hazards from risk

assessments or inspections in the seller’s possession and notify the buyer of any known

lead-based paint hazards. A risk assessment or inspection for possible lead-based paint

hazards is recommended prior to purchase.

Seller’s Disclosure

(a) Presence of lead-based paint and/or lead-based paint hazards (check (i) or (ii) below):

❏ (i) Known lead-based paint and/or lead-based paint hazards are present in the housing

[explain, providing the basis for the determination that lead-based paint and/or

lead-based paint hazards exist, its/their location(s) and condition(s), and any

additional information about the lead-based paint or lead-based paint hazards

(if known)].

❏ (ii) Seller has no knowledge of lead-based paint and/or lead-based paint hazards in the

housing.

(b) Records and reports available to Seller (check (i) or (ii) below):

❏ (i) Seller has provided Buyer with all available records and reports pertaining to lead-

based paint and/or lead-based paint hazards in the housing (list documents below).

❏ (ii) Seller has no reports or records pertaining to lead-based paint and/or lead-


32

based paint hazards in the housing.

Buyer’s Acknowledgment (initial)

____ (c) Buyer has received copies of all information listed above.

____ (d) Buyer has received the lead hazard information pamphlet described in 15 U.S.C. section

2686.

____ (e) Buyer has (check (i) or (ii) below):

❏ (i) received a ten-day opportunity (or mutually agreed upon period) to conduct a risk

assessment or inspection for the presence of lead-based paint and/or lead-based

paint hazards; or

❏ (ii) waived the opportunity to conduct a risk assessment or inspection for the presense

of lead-based paint and/or lead-based paint hazards.

Agent’s Acknowledgment (initial)

____ (f) Agent has informed Seller of Seller’s obligations under 42 U.S.C. section 4852d and is aware

of his/her responsibility to ensure compliance.

Certification of Accuracy

The following parties have reviewed the information above and certify, to the best of their knowledge,

that the information they have provided is true and accurate.

____________________________________

Seller Date

____________________________________

Buyer Date

____________________________________

Agent Date


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Form 8-8 Asbestos Disclosure Notice

This form is used to confirm a seller’s knowledge of the presence or absence of asbestos in the property

being sold, as required by 29 C.F.R. §§ 1910.1001 et seq., 1926.1101 et seq. ______________________________________________________________________________

Asbestos Disclosure Notice

[Sales]

Date:

Seller’s Name and Address:



THIS ASBESTOS DISCLOSURE NOTICE (“NOTICE”) IS A DISCLOSURE OF KNOWLEDGE OF

THE CONDITION OF THE PROPERTY AS OF THE DATE SIGNED AND IS NOT A SUBSTITUTE

FOR ANY INSPECTIONS OR WARRANTIES THAT MAY BE DESIRED. THIS NOTICE IS NOT A

WARRANTY OF ANY KIND.

Seller’s Disclosure

1. Presence of asbestos-containing or presumed asbestos-containing material (check one):

❏ Known asbestos-containing material is present in the Property (explain).

_________________________________________________________

❏ The Property was constructed before 1981, and presumed asbestos-containing material is

present in the Property (explain).

_________________________________________________________

❏ The Property was constructed after 1980, and Seller has no knowledge of asbestos-

containing material in the Property.

2. Records and reports available to Buyer (check one):

❏ Seller has provided Buyer with all available records and reports pertaining to asbestos-

containing material in the Property (list documents below).

_________________________________________________________

❏ Seller has no records or reports pertaining to asbestos-containing material in the

Property.


34

3. Seller has no knowledge of other facts or records concerning the presence, location, or

quantity of asbestos-containing or presumed asbestos-containing material in the property (including any

data supporting any rebuttal of the presumption that a material contains asbestos).

Buyer’s Acknowledgment

Buyer has received copies of all information listed above. Buyer is aware of Buyer’s responsibility

to ensure compliance with 15 U.S.C. sections 2641 through 2656 and 29 C.F.R. sections 1910.1001 et seq.

and 1926.1101 et seq.

____________________________________

Seller Date

____________________________________

Buyer Date


35

Form 8-9 Notice of Sale of Property Subject to a Lien

Under § 5.016 of the Texas Property Code, a person may not convey an interest in or enter into a

contract to convey an interest in residential real property that will be encumbered by a recorded lien at the

time the interest is conveyed unless, on or before the seventh day before the earlier of the effective date of

the conveyance or the execution of an executory contract binding the purchaser to purchase the property, an

option contract, or other contract, the person provides the purchaser and each lienholder a separate written

disclosure statement in at least 12-point type that provides the information set out in the form below. A

violation of this section does not invalidate a conveyance. Except for certain transactions exempted from

the disclosure requirements, if a contract is entered into without the seller providing the notice, the

purchaser may terminate the contract for any reason on or before the seventh day after the date the

purchaser receives the notice in addition to other remedies provided by this section or other law. Section

5.016(c) exempts a number of transfers from the disclosure requirements, including transfers in which the

purchaser obtains a title insurance policy insuring the transfer of title to the real property and transfers to a

person who has purchased, conveyed, or entered into contracts to purchase or convey an interest in real

property four or more times in the preceding twelve months. Under § 5.016(d), a violation of this section is

not actionable if the person required to give notice reasonably believes and takes any necessary action to

ensure that each lien for which notice was not provided will be released on or before the thirtieth day after

the date on which title to the property is transferred.

WARNING: ONE OR MORE RECORDED LIENS HAVE BEEN FILED THAT MAKE A CLAIM AGAINST THIS

PROPERTY AS LISTED BELOW. IF A LIEN IS NOT RELEASED AND THE PROPERTY IS CONVEYED WITHOUT

THE CONSENT OF THE LIENHOLDER, IT IS POSSIBLE THE LIENHOLDER COULD DEMAND FULL PAYMENT OF

THE OUTSTANDING BALANCE OF THE LIEN IMMEDIATELY. YOU MAY WISH TO CONTACT EACH

LIENHOLDER FOR FURTHER INFORMATION AND DISCUSS THIS MATTER WITH AN ATTORNEY.

NOTICE REGARDING SALE SUBJECT TO A RECORDED LIEN

This notice is being provided pursuant to section 5.016 of the Texas Property Code

Identification of Property:


36

Name and Address of Seller:

Name and Address of Buyer:

Information Regarding First Lien and Lienholder:

Name of Lienholder:

Address of Lienholder:

Telephone Number of Lienholder:

Amount of Debt Secured by this Lien:

Rate of Interest on Debt:

Required Periodic Installments:

Account Number:

Other Terms:

Has Lienholder Consented to Sale by Seller to Purchaser: ____ Yes ____ No

Information Regarding Second Lien and Lienholder:

Name of Lienholder:

Address of Lienholder:

Telephone Number of Lienholder:

Amount of Debt Secured by this Lien:

Rate of Interest on Debt:

Required Periodic Installments:

Account Number:

Other Terms:

Has Lienholder Consented to Sale by Seller to Purchaser: ____ Yes ____ No

(If there are more than two recorded liens against the Property, attach a separate sheet and provide the

information requested above with respect to each such recorded lien.)

Information Regarding any Insurance Policy Relating to the Property:

Name of the Insurer:

Name of the Insured:

Amount for which property is insured:

Property that is insured:

(If there are more than one insurance policies relating to the Property, attach a separate sheet and provide

the information requested above with respect to each such insurance policy.)

The amount of any property taxes due on the property:

(Date) (Signature of Seller)

(Name of Seller - Typed or Printed)


37

(Date) (Signature of Buyer)

(Name of Buyer - Typed or Printed)


38

Form 8-10 Acknowledgment of Receipt of Condominium Documents Pursuant to section 82.156 of the Texas Property Code, if the seller, other than a declarant, fails to

deliver to the purchaser copies of the declaration, bylaws, and association rules as required by

section 82.157 of the Texas Property Code before the purchaser executes the contract or if the

contract does not contain an underlined or bold-print provision acknowledging the purchaser’s

receipt of these documents and recommending that the purchaser read these documents before

executing the contract, the purchaser has the right to cancel the contract before the sixth day after

the date the seller delivers these documents to the purchaser.

This form may be modified to use as additional clauses in the sales contract.

________________________________________________________________________________________________________ Acknowledgment of Receipt of Condominium Documents

Buyer: Seller: Contract: Condominium Association: Buyer has received copies of the Declaration, Bylaws and Rules of the Condominium Association. Seller has recommended to Buyer that Buyer read these documents before executing the Contract. OR Buyer has not received copies of the Declaration, Bylaws, and Rules of the Condominium Association. Seller will deliver these documents to Buyer within [number]days after the effective date of the Contract. Buyer has the right to cancel the Contract before the sixth day after Buyer receives copies of these documents by delivering written notice of cancellation to Seller. Add Signatures


39

Form 8-11 Condominium Resale Certificate Pursuant to § 82.156 of the Texas Property Code, if the purchaser from a seller other than a declarant has not received a resale certificate before the purchaser executes the contract, the purchaser has the right to cancel the contract before the sixth day after the purchaser receives the resale certificate or executes a waiver pursuant to § 82.157 of the Texas Property Code, whichever occurs first. A copy of a Condominium Resale Certificate promulgated by the Texas Real Estate Commission is set forth in Appendix B, Form B-14. Pursuant to § 81.157, a condominium association is required to furnish a Resale Certificate no later than the tenth day after the date of receiving a written request from the selling unit owner. If a condominium association fails to furnish the Resale Certificate within the ten-day period, the selling unit owner may deliver to purchaser a sworn affidavit in lieu of the Resale Certificate and the seller and purchaser may agree in writing to waive the requirement of seller delivering the Resale Certificate. This form may be modified to use as additional clauses in the sales contract. ________________________________________________________________________________________________________

Waiver of Condominium Resale Certificate

Buyer: Seller: Contract: Condominium Association: Description of Condominium: ________________________________________________________________ Seller has advised Buyer that the Condominium Association has failed to issue a resale certificate within ten days after Seller’s written request for the Condominium Association to issue the resale certificate. Seller has delivered to Buyer a sworn affidavit setting out the information required in the resale certificate. Seller and Buyer hereby waive the requirement for the Condominium Association to issue a resale certificate incident to sale of the [Property/Condominium described above.] SELLER ________________________________________ BUYER _______________________________________


40

Form 8-12 Storage Tanks Disclosure Provider

It property contains an underground storage tank or tank system, or an aboveground tank or tank system,

subject to regulation by the Texas Commission on Environmental Quality, the following notice is given by

the seller to the purchaser pursuant to 30 Tex. Admin. Code § 334.9.

Storage Tanks Disclosure

Seller’s Name and Address:



The number of tanks involved is [number]:

Attached is a description of each tank (capacity, tank material and product stored, if

applicable)

The designated facility identification number (if the entire facility is being conveyed) is

[number]:

The underground storage tank[s]] that are included in this conveyance are presumed to be

regulated by the Texas Commission on Environmental Quality and may be subject to certain

registration, compliance self-certification, construction notification, and other requirements

found in 30 Texas Administrative Code Chapter 334.

The aboveground storage tank [s] that are included in this conveyance are presumed to be

regulated by the Texas Commission on Environmental Quality and may be subject to certain

registration, delivery prohibition, installation notification, and other requirements found in

30 Texas Administrative Code Chapter 334.


41

Form 8-13 Notice to Purchaser Regarding Restrictive Covenants Pursuant to section 212.155 of the Texas Local Government Code, if the governing body of a municipality has required any person who sells or conveys restricted property located within its jurisdiction to first give written notice to the purchaser of (i) the restrictions and (ii) the municipality’s right to enforce compliance with the restrictions, the following written notice must be given to the purchaser on or before the final closing, signed and acknowledged by both seller and purchaser, and recorded in the real property records in the county where the real property is located:

NOTICE TO PURCHASER REGARDING RESTRICTIVE COVENANTS

STATE OF TEXAS COUNTY OF [COUNTY]________________ Purchaser: Seller: Property (the “Property”): (include legal description and street address) The Property is being purchased by Purchaser, and is subject to deed restrictions recorded in [Recording Data] of the Official Public Records of _[COUNTY] County, Texas. THE RESTRICTIONS LIMIT THE PURCHASER’S USE OF THE PROPERTY. THE CITY OF [CITY] IS AUTHORIZED BY STATUTE TO ENFORCE COMPLIANCE WITH CERTAIN DEED RESTRICTIONS. ANY PROVISIONS THAT RESTRICT THE SALE, RENTAL, OR USE OF THE REAL PROPERTY ON THE BASIS OF RACE, COLOR, RELIGION, SEX, OR NATIONAL ORIGINAL ARE UNENFORCEABLE; however, the inclusion of such provisions does not render the remainder of the deed restrictions invalid. SELLER: _______________________________ Print Name: __________________ Title: _________________________ Date: _________________________ ADD ACKNOWLEDGMENT


42

The undersigned hereby acknowledges receipt of the Notice to Purchaser Regarding Restrictive Covenants at or prior to closing the purchase of the Property described herein. BUYER: _______________________________ Print Name: __________________ Title: _________________________ Date: _________________________ ADD ACKNOWLEDGMENT (Date) (Signature of Buyer)


43

Form 8-14 Notice to Purchaser Regarding Coastal Area Property This form sets out the mandatory notice under section 33.135(a) of the Texas Natural Resources. The notice must be placed in a written executory contract for the sale, transfer, or conveyance of real property, other than a mineral, leasehold, or security interest, adjoining and abutting the tidally influenced waters of the State of Texas. Tex.Nat.Res.Code § 33.135(a). If the real property described in this section is sold, transferred or conveyed without a written executory contract, this notice must be delivered to the grantee for execution and acknowledgement of receipt before the conveyance is recorded. Tex.Nat.Res.Code § 33.135(b). Failure to include this notice in a written executory contract is grounds for the purchaser to terminate the contract and have its earnest money returned. Tex.Nat.Res.Code §33.135(c). Failure to provide this notice prior to closing, either in a written executory contract or in a separate written statement is a deceptive act under section 17.46 of the Texas Business & Commerce Code. Tex.Nat.Res.Code § 33.135(d). _____________________________________________________________________________________

NOTICE REGARDING COASTAL AREA PROPERTY

(1) The real property described in and subject to this contract adjoins and shares a common boundary with the tidally influenced submerged lands of the state. The boundary is subject to change and can be determined accurately only by a survey on the ground made by a licensed state land surveyor in accordance with the original grant from the sovereign. The owner of the property described in this contract may gain or lose portions of the tract because of changes in the boundary.

(2) The seller, transferor, or grantor has no knowledge of any prior fill as it relates to the

property described in and subject to this contract.

(3) State law prohibits the use, encumbrance, construction, or placing of any structure in, on, or over state-owned submerged lands below the applicable tide line, without proper permission.

(4) The purchaser or grantee is hereby advised to seek the advice of an attorney or other

qualified person as to the legal nature and effect of the facts set forth in this notice on the property described in and subject to this contract. Information regarding the location of the applicable tide line as to the property described in and subject to this contract may be obtained from the surveying division of the General Land Office in Austin.


44

Form 8-15 Notice to Purchaser of Property Seaward of Gulf Intracoastal Waterway This form sets out the mandatory notice under of section 61.025 of the Texas Natural Resources Code. The following notice must be placed in a written executory contract for the sale, transfer, or conveyance of real property, other than a mineral, leasehold, or security interest, located seaward of the Gulf Intracoastal Waterway to its southernmost point and then seaward of the longitudinal line also known as 97 degrees, 12’, 19” which runs southerly to the international boundary from the intersection of the centerline of the Gulf Intracoastal Waterway and the Brownsville Ship Channel. Tex.Nat.Res.Code § 61.025(a). If the real property described in this section is sold, transferred or conveyed without a written executory contract, this notice must be delivered to the grantee for execution and acknowledgement of receipt not later than ten calendar days before closing of the transaction.. Tex.Nat.Res.Code §61.025(b). Failure to include this notice in a written executory contract is grounds for the purchaser to terminate the contract and have its earnest money returned. Tex.Nat.Res.Code §61.025(c). Failure to provide this notice prior to closing, either in a written executory contract or in a separate written statement is a deceptive act under section 17.46 of the Texas Business & Commerce Code. Tex.Nat.Res.Code § 61.025(d). _____________________________________________________________________________________ CONCERING THE PROPERTY AT:

DISCLOSURE NOTICE CONCERNING LEGAL AND ECONOMIC RISKS OF PURCHASING COASTAL REAL

PROPERTY NEAR A BEACH WARNING: THE FOLLOWING NOTICE OF POTENTIAL RISKS OF ECONOMICH LOSS TO YOU AS THE PURCHASER OF COASTAL REAL PROPERTY IS REQUIRED BY STATE LAW. ● READ THIS NOTICE CAREFULLY. DO NOT SIGN THIS CONTRACT UNTIL YOU FULLY UNDERSTAND THE RISKS YOU ARE ASSUMING. ● BY PURCHASING THIS PROPERTY, YOU MAY BE ASSUMING ECONOMIC RISKS OVER AND ABOVE THE RISKS INVOLVED IN PURCHASING INLAND REAL PROPERTY. ● IF YOU OWN A STRUCTURE LOCATED ON COASTAL REAL PROPERTY NEAR A GULF COAST BEACH, IT MAY COME TO BE LOCATED ON THE PUBLIC BEACH BECAUSE OF COASTAL EROSION AND STORM EVENTS. ● AS THE OWNER OF A STRUCTURE LOCATED ON THE PUBLIC BEACH, YOU COULD BE SUED BY THE STATE OF TEXAS AND ORDERED TO REMOVE THE STRUCTURE. ● THE COSTS OF REMOVING A STRUCTURE FROM THE PUBLIC BEACH AND ANY OTHER

ECONOMIC LOSS INCURRED BECAUSE OF A REMOVAL ORDER WOULD BE SOLELY YOUR

RESPONSIBILITY.

The real property described in this contract is located seaward of the Gulf Intracoastal Waterway to its southernmost point and then seaward of the longitudinal line also known as 97 degrees, 12', 19" which runs southerly to the international boundary from the intersection of the centerline of the Gulf Intracoastal Waterway and the


45

Brownsville Ship Channel. If the property is in close proximity to a beach fronting the Gulf of Mexico, the purchaser is hereby advised that the public has acquired a right of use or easement to or over the area of any public beach by prescription, dedication, or presumption, or has retained a right by virtue of continuous right in the public since time immemorial, as recognized in law and custom.

The extreme seaward boundary of natural vegetation that spreads continuously inland

customarily marks the landward boundary of the public easement. If there is no clearly marked natural vegetation line, the landward boundary of the easement is as provided by Sections 61.016 and 61.017, Natural Resources Code.

Much of the Gulf of Mexico coastline is eroding at rates of more than five feet per year.

Erosion rates for all Texas Gulf property subject to the open beaches act are available from the Texas General Land Office.

State law prohibits any obstruction, barrier, restraint, or interference with the use of

the public easement, including the placement of structures seaward of the landward boundary of the easement. OWNERS OF STRUCTURES ERECTED SEAWARD OF THE VEGETATION LINE (OR OTHER APPLICABLE EASEMENT BOUNDARY) OR THAT BECOME SEAWARD OF THE VEGETATION LINE AS A RESULT OF PROCESSES SUCH AS SHORELINE EROSION ARE SUBJECT TO A LAWSUIT BY THE STATE OF TEXAS TO REMOVE THE STRUCTURES.

The purchaser is hereby notified that the purchaser should:

(1) determine the rate of shoreline erosion in the vicinity of the real property; and (2) seek the advice of an attorney or other qualified person before executing this contract or instrument of conveyance as to the relevance of these statutes and facts to the value of the property the purchaser is hereby purchasing or contracting to purchase.


46

Form 8-16 Notice to Purchaser of Additional Tax Liability The following is the mandatory notice to be placed in bold-faced type in a contract for the sale and purchase of vacant land pursuant to Tex.Prop.Code § 5.010. This notice requirement does not apply to certain sellers or buyers, Tex.Prop.Code § 5.010 (b) & (c), or if the contract contains a separate paragraph providing for the payment of any additional ad valorem taxes and interest that become due as a penalty because of the transfer of the property or a subsequent change in use of the property. Tex.Prop.Code § 5.010 (d). If the seller fails to include this notice in the contract, the purchaser is entitled to recover from the seller an amount equal to the amount of any additional taxes and interest incurred as a penalty because of the transfer of the land or a subsequent change in use of the land that occurs before the fifth anniversary of the date of the transfer. Tex.Prop.Code § 5.010 (e). ___________________________________________________________________________________

NOTICE REGARDING POSSIBLE LIABILITY FOR ADDITIONAL TAXES

If for the current ad valorem tax year the taxable value of the land that is the

subject of this contract is determined by a special appraisal method that allows

for appraisal of the land at less than its market value, the person to whom the

land is transferred may not be allowed to qualify the land for that special

appraisal in a subsequent tax year and the land may then be appraised at its full

market value. In addition, the transfer of the land or a subsequent change in the

use of the land may result in the imposition of an additional tax plus interest as a

penalty for the transfer or the change in the use of the land. The taxable value of

the land and the applicable method of appraisal for the current tax year is public

information and may be obtained from the tax appraisal district established for

the county in which the land is located.


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Form 8-17 Notice Regarding Possible Annexation

A person who sells an interest in real property must give the purchaser a written notice substantially similar

to the following unless the property is located wholly within a municipality’s corporate boundaries.

Exceptions exist for some types of transactions. Tex. Prop. Code § 5.011.

Notice Regarding Possible Annexation

If the property that is the subject of this contract is located outside the limits of a municipality, the

property may now or later be included in the extraterritorial jurisdiction of a municipality and may now or

later be subject to annexation by the municipality. Each municipality maintains a map that depicts its

boundaries and extraterritorial jurisdiction. To determine if the property is located within a municipality’s

extraterritorial jurisdiction or is likely to be located within a municipality’s extraterritorial jurisdiction,

contact all municipalities located in the general proximity of the property for further information.

Dated: __________________________

___________________________________

[Name of purchaser]


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Form 8-18 Notice for Unimproved Property in a

Certificated Service of a Utility Service Provider

This notice must be given to the purchaser of a property that does not have water or sewer service from a

utility service provider on the date the property is transferred and that is located in a certificated service

area of a utility service provider. TEX. WATER CODE § 13.257. Refer to Texas Water Code section

13.257(c) for types of sales that are excepted from the notice requirement. The seller must give a

prospective purchaser this notice before or at the same time as the execution of the contract. At closing,

purchaser and seller must sign and acknowledge a separate copy of the notice with current information; that

copy must be recorded. TEX. WATER CODE § 13.257(g). Each special utility district keeps a map of its

service area; this information is also available from the Texas Commission on Environmental Quality.

______________________________________________________________________________

Notice for Unimproved Property in a Certificated Service Area

of a Utility Service Provider

The real property, described below, that you are about to purchase may be located in a certificated

water or sewer service area, which is authorized by law to provide water or sewer service to the properties

in the certificated area. If your property is located in a certificated area there may be special costs or

charges that you will be required to pay before you can receive water or sewer service. There may be a

period required to construct lines or other facilities necessary to provide water or sewer service to your

property. You are advised to determine if the property is in a certificated area and contact the utility service

provider to determine the cost that you will be required to pay and the period, if any, that is required to

provide water or sewer service to your property.

The undersigned purchaser hereby acknowledges receipt of the foregoing notice at or before the

execution of a binding contract for the purchase of the real property described in the notice or at closing of

purchase of the real property.

___________________________________

[Name of purchaser]

Date:

___________________________________

[Name of seller]

Date:

[Insert property description]


49

[No signatures are required if the notice is an addendum to a signed purchase

and sale contract. If the notice is separate from the purchase and sale

contract, only the purchaser’s signature is required. Both the purchaser and

seller must sign the copy executed at the time of closing. TEX. WATER

CODE § 13.257(g).

Except for notices included as an addendum to or paragraph of a purchase contract, the notice must

be executed by the seller and purchaser, as indicated.

[Include acknowledgments if the notice is signed at the time of closing.]


50

Form 8-19 Utility District Notice

This form sets out the mandatory notices under section 49.452 of the Texas Water Code. The seller must

give a prospective purchaser the notice before or at the same time as the execution of the contract. If the

seller fails to provide the notice, the purchaser may cancel the contract. By accepting the notice, the

purchaser waives its rights under section 49.452. TEX. WATER CODE § 49.452(f). A separate copy of

the notice must be executed by the seller and purchaser, acknowledged, and recorded with the deed for the

transaction. TEX. WATER CODE § 49.452(h). This form does not detail the permissible modifications

that may be necessary under different circumstances. See the section title “Utility District Disclosures” in

chapter 2 of this manual.

______________________________________________________________________________

Utility District Notice

Seller[s]:

Purchaser[s]:

The real property, described below, that you are about to purchase is located in the [district] District.

The district has taxing authority separate from any other taxing authority and may, subject to voter

approval, issue an unlimited amount of bonds and levy an unlimited rate of tax in payment of such bonds.

As of [this date/January 1, [year]], the rate of taxes levied by the district on real property located in the

district is $[amount] on each $100 of assessed valuation. If the district has not yet levied taxes, the most

recent projected rate of tax, as of [this date/January 1, [year]], is $[amount] on each $100 of assessed

valuation. The total amount of bonds, excluding refunding bonds and any bonds or any portion of bonds

issued that are payable solely from revenues received or expected to be received under a contract with a

governmental entity, approved by the voters and which have been or may, at [this date/January 1, [year]],

be issued is $[amount], and the aggregate initial principal amounts of all bonds issued for one or more of

the specified facilities of the district and payable in whole or in part from property taxes is $[amount].

The district has the authority to adopt and impose a standby fee on property in the district that has

water, sanitary sewer, or drainage facilities and services available but not connected and which does not

have a house, building, or other improvement located thereon and does not substantially utilize the utility

capacity available to the property. The district may exercise the authority without holding an election on the

matter. As of [this date/January 1, [year]], the most recent amount of the standby fee is $[amount]. An

unpaid standby fee is a personal obligation of the person that owned the property at the time of imposition

and is secured by a lien on the property. Any person may request a certificate from the district stating the

amount, if any, of unpaid standby fees on a tract of property in the district.

[Select one of the following paragraphs if appropriate. Include the first

paragraph if the property is in a district located in whole or in part in the

extraterritorial jurisdiction of one or more home-rule municipalities and not

located within the corporate boundaries of a municipality as defined by TEX.

WATER CODE SEC. 49.452(b). Include the second paragraph if the

property is in a district located in whole or in part within the corporate

boundaries of a municipality as defined by TEX. WATER CODE SEC.

49.452(c). Do not include either paragraph if the property is in a district that


51

is not located in whole or in part within the corporate boundaries of a

municipality or the extraterritorial jurisdiction of one or more home-rule

municipalities as defined by TEX. WATER CODE SED. 49.452(d).]

The district is located in whole or in part in the extraterritorial jurisdiction of the city of [city]. By law,

a district located in the extraterritorial jurisdiction of a municipality may be annexed without the consent of

the district or the voters of the district. When a district is annexed, the district is dissolved.

The district is located in whole or in part within the corporate boundaries of the city of [city]. The

taxpayers of the district are subject to the taxes imposed by the municipality and by the district until the

district is dissolved. By law, a district located within the corporate boundaries of a municipality may be

dissolved by municipal ordinance without the consent of the district or the voters of the district.

The purpose of this district is to provide water, sewer, drainage, or flood control facilities and services

within the district through the issuance of bonds payable in whole or in part from property taxes. The cost

of these utility facilities is not included in the purchase price of your property, and these utility facilities are

owned or to be owned by the district. The legal description of the property you are acquiring is as follows:

[legal description].

___________________________________

[Name of seller]

Date:

PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORM IS SUBJECT

TO CHANGE BY THE DISTRICT AT ANY TIME. THE DISTRICT ROUTINELY ESTABLISHES

TAX RATES DURING THE MONTHS OF SEPTEMBER THROUGH DECEMBER OF EACH YEAR,

EFFECTIVE FOR THE YEAR IN WHICH THE TAX RATES ARE APPROVED BY THE DISTRICT.

PURCHASER IS ADVISED TO CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY

CURRENT OR PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM.


52

The undersigned purchaser[s] hereby acknowledge[s] receipt of the foregoing notice at or prior to

execution of a binding contract for the purchase of the real property described in such notice or at closing

of purchase of the real property.

___________________________________

[Name of purchaser]

Date:


53

Form 8-20 Notice to Purchaser of Property Located in Certain Annexed Water Districts This form sets out the mandatory notice under Tex. Water Code Ann. § 54.016(h)(4). If the real property is located in a water or sanitary sewer district that entered into a contract with a city with a population of 1.8 million or less that allows the city to set rates in the district after annexation that are different from rates charged to other residents of the city, the seller at or before closing must deliver a separate written notice, executed and acknowledged by the seller contain the information in this notice. The purchaser must sign the notice to evidence receipt. Tex. Water Code Ann. § 49.452(g)-(p) apply to this notice provision, including purchaser’s right to seek damages if the sale or conveyance of the property is not made in compliance with this statute. ___________________________________________________________________________________________________

Notice to Purchaser of Property Located in Certain Annexed Water Districts.

The real property that is being conveyed is subject to the following [water/sewer/water and sewer] rates and adjustments:

(i) the basis on which the monthly [water/sewer/water and sewer] rate is to be charged under the contract stated as a percentage of the [water/sewer/water and sewer] rates of the city is [PER CENT]__________;

(ii) the length of time such rates will be in effect is[PERIOD]______________; and

(iii) the time or conditions of annexation by the city implementing such rates are [describe conditions and period of annexation].

PURCHASER __________________________ Name of Purchaser


54

Form 8-21 Notice to Purchaser that Property is Located within the Area of the Alignment of a Transportation Project Pursuant to section 232.0033 of the Texas Local Government Code, a seller and subdivider of land located within the area of the alignment of a transportation project as shown on the final environmental decision document applicable to the future transportation corridor identified in an agreement between the Texas Department of Transportation and the county under section 201.619 of the Texas Transportation Code, must provide the following conspicuous statement in the contract: ________________________________________________________________________________________________________

Notice to Purchaser that Property is Located within the Area of the Alignment of a Transportation Project

Property Description: ____________________________________________________________ (the “Property”) THE PROPERTY IS LOCATED WITHIN THE AREA OF THE ALIGNMENT OF A TRANSPORATION PROJECT AS SHOWN ON A FINAL ENVIRONMENTAL DECISION DOCUMENT THAT IS APPLICABLE TO THE FUTURE TRANSPORATION CORRIDOR IDENTIFIED IN AN AGREEMENT UNDER SECTION 201.619 OF THE TEXAS TRANSPORTATION CODE.


55

Form 10-10 Seller’s Disclosure Notice

WARNING: IF ANY OF THE ITEMS BELOW HAVE NOT BEEN CHECKED, YOU MAY NOT

BE ABLE TO LIVE ON THE PROPERTY.

Seller’s Disclosure Notice

CONCERNING THE PROPERTY AT [street address or legal description and city].

THIS DOCUMENT STATES CERTAIN APPLICABLE FACTS ABOUT THE PROPERTY YOU

ARE CONSIDERING PURCHASING.

CHECK ALL THE ITEMS THAT ARE APPLICABLE OR TRUE:

❏ The property is in a recorded subdivision.

❏ The property has water service that provides potable water.

❏ The property has sewer service.

❏ The property has been approved by the appropriate municipal, county, or state agency for the

installation of a septic system.

❏ The property has electric service.

❏ The property is not in a floodplain.

❏ The roads to the boundaries of the property are paved and maintained by:

❏ the seller;

❏ the owner of the property on which the road exists;

❏ the municipality;

❏ the county; or

❏ the state.

❏ No individual or entity other than the seller:

1. owns the property;

2. has a claim of ownership to the property; or


56

3. has an interest in the property.

❏ No individual or entity has a lien filed against the property.

❏ There are no restrictive covenants, easements, or other title exceptions or encumbrances that

prohibit construction of a house on the property.

NOTICE

SELLER ADVISES PURCHASER TO:

1. OBTAIN A TITLE ABSTRACT OR TITLE COMMITMENT COVERING THE PROPERTY

AND HAVE THE ABSTRACT OR COMMITMENT REVIEWED BY AN ATTORNEY BEFORE

SIGNING A CONTRACT OF THIS TYPE, AND

2. PURCHASE AN OWNER’S POLICY OF TITLE INSURANCE COVERING THE PROPERTY.

____________________________________

[Name of seller]

Date:

____________________________________

[Name of buyer]

Date:


57

Form 10-12 Notice of Cancellation

(For Any Reason, Pursuant to Texas Property Code § 5.074)

CONTRACT FOR DEED

DATE:

SELLER:

SELLER’S ADDRESS: [include county]

BUYER:

BUYER’S ADDRESS: [include county]

PROPERTY:

YOU MAY CANCEL THE CONTRACT FOR DEED FOR ANY REASON

WITHOUT ANY PENALTY OR OBLIGATION BY [date].

1. YOU MUST SEND BY TELEGRAM OR CERTIFIED OR REGISTERED MAIL,

RETURN RECEIPT REQUESTED, OR DELIVER IN PERSON A SIGNED AND

DATED COPY OF THIS CANCELLATION NOTICE OR ANY OTHER WRITTEN

NOTICE TO SELLER AT SELLER’S ADDRESS BY [date].

2. SELLER WILL, NOT LATER THAN THE TENTH DAY AFTER THE DATE

SELLER RECEIVES YOUR CANCELLATION NOTICE:

(A) RETURN THE EXECUTED CONTRACT FOR DEED AND ANY

PROPERTY EXCHANGED OR PAYMENTS MADE BY YOU

UNDER THE CONTRACT; AND

(B) CANCEL ANY SECURITY INTEREST ARISING OUT OF THE

CONTRACT FOR DEED.

I ACKNOWLEDGE RECEIPT OF THIS NOTICE OF CANCELLATION FORM.

_______________________________ [Name of buyer] DATE:

IF YOU DESIRE TO CANCEL THE CONTRACT, PLEASE SIGN YOUR NAME

BELOW AND SEND OR DELIVER THIS NOTICE TO SELLER IN THE MANNER


58

STATED ABOVE.

I HEREBY CANCEL THIS CONTRACT FOR DEED.

______________________________ [Name of buyer] DATE:


59

Form 10-20 Notice of Final Agreement

THIS EXECUTORY CONTRACT REPRESENTS THE FINAL AGREEMENT

BETWEEN THE SELLER AND PURCHASER AND MAY NOT BE CONTRADICTED

BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL

AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL

AGREEMENTS BETWEEN THE PARTIES.

___________________________________

[Name of seller]

Date:

___________________________________

[Name of buyer]

Date:


60

Form 26 -8 Notice of Membership in Property Owners Association

Concerning the Property at [street address and name of residential community]

As a purchaser of property in the residential community in which this property is located, you

are obligated to be a member of a property owners association. Restrictive covenants governing the use and occupancy of the property and a dedicatory instrument governing the establishment, maintenance, and operation of this residential community have been or will be recorded in the real property records of the county in which the property is located. Copies of the restrictive covenants and dedicatory instrument may be obtained from the county clerk.

You are obligated to pay assessments to the property owners association. The amount of the

assessments is subject to change. Your failure to pay the assessments could result in a lien on and the foreclosure of your property. Dated: ________________________________.

___________________________________ [Name of purchaser]