Sec. 5.069. SELLER'S DISCLOSURE OF PROPERTY CONDITION

1. (a) Before an executory contract is signed by the purchaser, the seller shall provide the purchaser with:

   1. (1) a survey, which was completed within the past year, or plat of a current survey of the real property;
   2. (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

   3. (3) 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:

      IF ANY OF THE ITEMS BELOW HAVE NOT BEEN CHECKED, YOU MAY NOT BE ABLE TO LIVE ON THE PROPERTY.

      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 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:

   4. (1) owns the property;
   5. (2) has a claim of ownership to the property; or

   6. (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:

2. (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

3. (2) PURCHASE AN OWNER'S POLICY OF TITLE INSURANCE

   COVERING THE PROPERTY.

4. (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.
5. (c) If the seller advertises property for sale under an executory contract, the advertisement must disclose information regarding the availability of water, sewer, and electric service.

6. (d) The seller's failure to provide information required by this section:

   1. (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. (2) entitles the purchaser to cancel and rescind the executory contract and receive a full refund of all payments made to the seller.
7. (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.

Added by Acts 1995, 74th Leg., ch. 994, Sec. 3, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 5.094 and amended by Acts 2001, 77th Leg., ch. 693, Sec. 1, eff. Sept. 1, 2001.