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A BILL TO BE ENTITLED
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AN ACT
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relating to notice of water level fluctuations to purchasers of |
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real property adjoining an impoundment of water. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 5, Property Code, is |
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amended by adding Section 5.019 to read as follows: |
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Sec. 5.019. NOTICE OF WATER LEVEL FLUCTUATIONS. (a) This |
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section applies only to the sale of residential or commercial real |
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property adjoining an impoundment of water, including a reservoir |
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or lake, constructed and maintained under Chapter 11, Water Code, |
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that has a storage capacity of at least 5,000 acre-feet at the |
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impoundment's normal operating level. |
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(b) A seller of real property shall give to the purchaser of |
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the property a written notice in substantially the following form: |
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NOTICE OF WATER LEVEL FLUCTUATIONS |
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The water level of the impoundment of water adjoining the |
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property at ______________ (street address and city) or described |
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as ______________ (legal description) fluctuates for various |
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reasons, including as a result of: |
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(1) an entity lawfully exercising its right to use the |
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water stored in the impoundment; or |
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(2) drought or flood conditions. |
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(c) The notice described by Subsection (b) shall be |
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delivered by the seller to the purchaser on or before the effective |
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date of an executory contract binding the purchaser to purchase the |
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property. |
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(d) If a contract is entered into without the seller |
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providing the notice within the period required by Subsection (c), |
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the purchaser may terminate the contract for any reason within |
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seven days after the date the purchaser receives: |
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(1) the notice described by Subsection (b) from the |
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seller; or |
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(2) information described by the notice under |
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Subsection (b) from any other person. |
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(e) After the date of the conveyance, the purchaser may |
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bring an action for misrepresentation against the seller if the |
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seller: |
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(1) failed to provide the notice before the date of the |
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conveyance; and |
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(2) had actual knowledge that the water level |
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described by Subsection (b) fluctuates for various reasons, |
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including the reasons stated in Subsection (b). |
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SECTION 2. Section 5.019, Property Code, as added by this |
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Act, applies only to an executory contract entered into on or after |
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the effective date of this Act. An executory contract entered into |
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before the effective date of this Act is governed by the law as it |
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existed immediately before the effective date of this Act, and that |
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law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2015. |