PROPERTY CODE TITLE 1. GENERAL PROVISIONS CHAPTER 1. GENERAL . - Texas

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PROPERTY CODETITLE 1. GENERAL PROVISIONSCHAPTER 1. GENERAL PROVISIONSSec. 1.001. PURPOSE OF CODE. (a) This code is enacted as apart of the state's continuing statutory revision program begun bythe Texas Legislative Council in 1963 as directed by the legislaturein Chapter 448, Acts of the 58th Legislature, Regular Session, 1963(Article 5429b-1, Vernon's Texas Civil Statutes). The programcontemplates a topic-by-topic revision of the state's general andpermanent statute law without substantive change.(b) Consistent with the objectives of the statutory revisionprogram, the purpose of this code is to make the law encompassed bythis code more accessible and understandable by:(1) rearranging the statutes into a more logical order;(2) employing a format and numbering system designed tofacilitate citation of the law and to accommodate future expansion ofthe law;(3) eliminating repealed, duplicative, unconstitutional,expired, executed, and other ineffective provisions; and(4) restating the law in modern American English to thegreatest extent possible.Acts 1983, 68th Leg., p. 3478, ch. 576, Sec. 1, eff. Jan. 1, 1984.Sec. 1.002. CONSTRUCTION OF CODE. The Code Construction Act(Chapter 311, Government Code) applies to the construction of eachprovision in this code, except as otherwise expressly provided bythis code.Acts 1983, 68th Leg., p. 3478, ch. 576, Sec. 1, eff. Jan. 1, 1984.Amended by Acts 1985, 69th Leg., ch. 479, Sec. 70, eff. Sept. 1,1985.Sec. 1.003. INTERNAL REFERENCES. In this code:(1) a reference to a title, chapter, or section withoutfurther identification is a reference to a title, chapter, or sectionof this code; and(2) a reference to a subtitle, subchapter, subsection,subdivision, paragraph, or other numbered or lettered unit withoutStatute text rendered on: 6/3/2022- 1 -

PROPERTY CODEfurther identification is a reference to a unit of the next largerunit of this code in which the reference appears.Acts 1983, 68th Leg., p. 3479, ch. 576, Sec. 1, eff. Jan. 1, 1984.CHAPTER 2. NATURE OF PROPERTYSec. 2.001. MANUFACTURED HOUSING. (a) Except as provided bySubsection (b), a manufactured home is personal property.(b) A manufactured home is real property if:(1) the statement of ownership and location for the homeissued under Section 1201.207, Occupations Code, reflects that theowner has elected to treat the home as real property; and(2) a certified copy of the statement of ownership andlocation has been filed in the real property records in the county inwhich the home is located.(c) In this section, "consumer," "document of title," "firstretail sale," "manufactured home," and "mobile home" have themeanings assigned by Chapter 1201, Occupations Code.(d) to (h) Repealed by Acts 2003, 78th Leg., ch. 338, Sec.52(2).(i) This section does not require a retailer or retailer'sagent to obtain a license under Chapter 1101, Occupations Code.Added by Acts 1995, 74th Leg., ch. 978, Sec. 15, eff. Sept. 1, 1995.Amended by Acts 2001, 77th Leg., ch. 899, Sec. 5, eff. Sept. 1, 2001;Acts 2001, 77th Leg., ch. 1055, Sec. 5, eff. Jan. 1, 2002; Acts2003, 78th Leg., ch. 338, Sec. 41 to 43, 52(2), eff. June 18, 2003;Acts 2003, 78th Leg., ch. 1276, Sec. 14A.802, eff. Sept. 1, 2003.Sec. 2.002. DRY FIRE HYDRANTS: AGREEMENT IS PERSONAL. (a) Anagreement between an owner, lessee, or occupant of real property anda fire-fighting agency relating to the connection of a dry firehydrant to a source of water on the property or the installation of adry fire hydrant on the property may not bind a subsequent owner,lessee, or occupant of the real property.(b) In this section:(1) "Dry fire hydrant" means a fire hydrant that isconnected to a stock tank, pond, or other similar source of waterfrom which water is pumped in case of fire.Statute text rendered on: 6/3/2022- 2 -

PROPERTY CODE(2) "Fire-fighting agency" means any entity that providesfire-fighting services, including:(A) a volunteer fire department; and(B) a political subdivision of this state authorized toprovide fire-fighting services.Added by Acts 1997, 75th Leg., ch. 437, Sec. 2, eff. Sept. 1, 1997.TITLE 2. CONVEYANCESCHAPTER 5. CONVEYANCESSUBCHAPTER A. GENERAL PROVISIONSSec. 5.001. FEE SIMPLE. (a) An estate in land that isconveyed or devised is a fee simple unless the estate is limited byexpress words or unless a lesser estate is conveyed or devised byconstruction or operation of law. Words previously necessary atcommon law to transfer a fee simple estate are not necessary.(b) This section applies only to a conveyance occurring on orafter February 5, 1840.Acts 1983, 68th Leg., p. 3480, ch. 576, Sec. 1, eff. Jan. 1, 1984.Sec. 5.002. FAILING AS A CONVEYANCE. An instrument intended asa conveyance of real property or an interest in real property that,because of this chapter, fails as a conveyance in whole or in part isenforceable to the extent permitted by law as a contract to conveythe property or interest.Acts 1983, 68th Leg., p. 3480, ch. 576, Sec. 1, eff. Jan. 1, 1984.Sec. 5.003. PARTIAL CONVEYANCE. (a) An alienation of realproperty that purports to transfer a greater right or estate in theproperty than the person making the alienation may lawfully transferalienates only the right or estate that the person may convey.(b) Neither the alienation by deed or will of an estate onwhich a remainder depends nor the union of the estate with aninheritance by purchase or descent affects the remainder.Acts 1983, 68th Leg., p. 3480, ch. 576, Sec. 1, eff. Jan. 1, 1984.Statute text rendered on: 6/3/2022- 3 -

PROPERTY CODESec. 5.004. CONVEYANCE BY AUTHORIZED OFFICER. (a) Aconveyance of real property by an officer legally authorized to sellthe property under a judgment of a court within the state passesabsolute title to the property to the purchaser.(b) This section does not affect the rights of a person who isnot or who does not claim under a party to the conveyance orjudgment.Acts 1983, 68th Leg., p. 3480, ch. 576, Sec. 1, eff. Jan. 1, 1984.Sec. 5.005. ALIENS. An alien has the same real and personalproperty rights as a United States citizen.Acts 1983, 68th Leg., p. 3481, ch. 576, Sec. 1, eff. Jan. 1, 1984.Sec. 5.006. ATTORNEY'S FEES IN BREACH OF RESTRICTIVE COVENANTACTION. (a) In an action based on breach of a restrictive covenantpertaining to real property, the court shall allow to a prevailingparty who asserted the action reasonable attorney's fees in additionto the party's costs and claim.(b) To determine reasonable attorney's fees, the court shallconsider:(1) the time and labor required;(2) the novelty and difficulty of the questions;(3) the expertise, reputation, and ability of the attorney;and(4) any other factor.Acts 1983, 68th Leg., p. 3481, ch. 576, Sec. 1, eff. Jan. 1, 1984.Sec. 5.007. VENDOR AND PURCHASER RISK ACT. (a) Any contractmade in this state for the purchase and sale of real property shallbe interpreted as including an agreement that the parties have therights and duties prescribed by this section, unless the contractexpressly provides otherwise.(b) If, when neither the legal title nor the possession of theStatute text rendered on: 6/3/2022- 4 -

PROPERTY CODEsubject matter of the contract has been transferred, all or amaterial part of the property is destroyed without fault of thepurchaser or is taken by eminent domain, the vendor may not enforcethe contract, and the purchaser is entitled to recover any portion ofthe contract price paid.(c) If, when either the legal title or the possession of thesubject matter of the contract has been transferred, all or any partof the property is destroyed without fault of the vendor or is takenby eminent domain, the purchaser is not relieved from the duty to paythe contract price, nor is the purchaser entitled to recover anyportion of the price already paid.(d) This section shall be interpreted and construed toaccomplish its general purpose to make uniform the law of thosestates that enact the Uniform Vendor and Purchaser Risk Act.(e) This section may be cited as the Uniform Vendor andPurchaser Risk Act.Added by Acts 1989, 71st Leg., ch. 1002, Sec. 1, eff. Sept. 1, 1989.Sec. 5.008. SELLER'S DISCLOSURE OF PROPERTY CONDITION. (a) Aseller of residential real property comprising not more than onedwelling unit located in this state shall give to the purchaser ofthe property a written notice as prescribed by this section or awritten notice substantially similar to the notice prescribed by thissection which contains, at a minimum, all of the items in the noticeprescribed by this section.(b) The notice must be executed and must, at a minimum, readsubstantially similar to the following:SELLER'S DISCLOSURE NOTICECONCERNING THE PROPERTY AT(Street Address and City)THIS NOTICE IS A DISCLOSURE OF SELLER'S KNOWLEDGE OF THECONDITION OF THE PROPERTY AS OF THE DATE SIGNED BY SELLERAND IS NOT A SUBSTITUTE FOR ANY INSPECTIONS OR WARRANTIESTHE PURCHASER MAY WISH TO OBTAIN. IT IS NOT A WARRANTY OFANY KIND BY SELLER OR SELLER'S AGENTS.Seller is is not occupying the Property.If unoccupied, how long since Seller has occupied the Property?Statute text rendered on: 6/3/2022- 5 -

PROPERTY CODE1. The Property has the items checked below:Write Yes (Y), No (N), or Unknown emTV AntennaCeiling Fan(s)Central ipmentSmokeDetectorSmokeDetector adder(s)Cable TVWiringAttic Fan(s)CentralHeatingPlumbing SystemSeptic SystemPatio/DeckingPoolOutdoor GrillSaunaPool EquipmentPool HeaterFireplace(s) &ChimneyStatute text rendered on: 6/3/2022- 6 -MicrowaveDisposalRain l/WindowAirConditioningPublic SewerSystemFencesSpaHot y

PROPERTY CODE(Woodburning)Natural GasLinesLiquid PropaneGas:Garage:AttachedGarage DoorOpener(s):Water Heater:Water Supply:City(Mock)Gas FixturesLP CommunityLP onProperty(Captive)Not AttachedCarportElectronicControl(s)GasWell MUDElectricCo-opRoof Type: Age: (approx)Are you (Seller) aware of any of the above items that are not inworking condition, that have known defects, or that are in need ofrepair? Yes No Unknown.If yes, then describe. (Attach additional sheets if necessary):2. Does the property have working smoke detectors installed inaccordance with the smoke detector requirements of Chapter 766,Health and Safety Code?* Yes No Unknown.If the answer to the question above is no or unknown, explain.(Attach additional sheets if necessary):*Chapter 766 of the Health and Safety Code requires one-familyor two-family dwellings to have working smoke detectors installed inaccordance with the requirements of the building code in effect inthe area in which the dwelling is located, including performance,location, and power source requirements. If you do not know thebuilding code requirements in effect in your area, you may checkunknown above or contact your local building official for moreinformation. A buyer may require a seller to install smoke detectorsfor the hearing impaired if: (1) the buyer or a member of thebuyer's family who will reside in the dwelling is hearing impaired;(2) the buyer gives the seller written evidence of the hearingimpairment from a licensed physician; and (3) within 10 days afterthe effective date, the buyer makes a written request for the sellerto install smoke detectors for the hearing impaired and specifies theStatute text rendered on: 6/3/2022- 7 -

PROPERTY CODElocations for installation. The parties may agree who will bear thecost of installing the smoke detectors and which brand of smokedetectors to install.3. Are you (Seller) aware of any known defects/malfunctions in anyof the following?Write Yes (Y) if you are aware, write No (N) if you are not aware.Interior WallsExterior er Structural Components (Describe):If the answer to any of the above is yes, explain. (Attachadditional sheets if necessary):4. Are you (Seller) aware of any of the following conditions?Write Yes (Y) if you are aware, write No (N) if you are not aware.Active Termites(includeswood-destroyinginsects)Termite or Wood RotDamageNeeding RepairPrevious TermiteDamagePrevious TermiteTreatmentPrevious Structuralor Roof RepairHazardous or ToxicWasteAsbestos ComponentsUrea formaldehydeInsulationRadon GasLead Based PaintAluminum WiringImproper DrainageWater Damage Not Dueto aFlood EventPrevious FiresStatute text rendered on: 6/3/2022- 8 -

PROPERTY CODEUnplatted EasementsLandfill, Settling,SoilMovement, Fault LinesSingle Blockable MainSubsurfaceStructure or PitsPrevious Use ofPremisesfor Manufacture ofMethamphetamineDrain in Pool/HotTub/Spa*If the answer to any of the above is yes, explain. (Attachadditional sheets if necessary):*A single blockable main drain may cause a suction entrapmenthazard for an individual.5. Are you (Seller) aware of any item, equipment, or system in or onthe property that is in need of repair? Yes (if you are aware)No (if you are not aware). If yes, explain (attach additionalsheets as necessary).6. Are you (Seller) aware of any of the following conditions?*Write Yes (Y) if you are aware, write No (N) if you are not aware.Present flood insurance coveragePrevious flooding due to a failure or breach of a reservoir or acontrolled or emergency release of water from a reservoirPrevious water penetration into a structure on the property dueto a natural flood eventWrite Yes (Y) if you are aware and check wholly or partly asapplicable, write No (N) if you are not aware.Located ( ) wholly ( ) partly in a 100-year floodplain (SpecialFlood Hazard Area-Zone A, V, A99, AE, AO, AH, VE, or AR)Located ( ) wholly ( ) partly in a 500-year floodplain (ModerateFlood Hazard Area-Zone X (shaded))Located ( ) wholly( ) partly in a floodwayLocated ( ) wholly( ) partly in a flood poolLocated ( ) wholly( ) partly in a reservoirIf the answer to any of the above is yes, explain (attach additionalsheets as necessary):Statute text rendered on: 6/3/2022- 9 -

PROPERTY CODE* For purposes of this notice:"100-year floodplain" means any area of land that:(A) is identified on the flood insurance rate map as aspecial flood hazard area, which is designated as Zone A, V, A99, AE,AO, AH, VE, or AR on the map;(B) has a one percent annual chance of flooding, which isconsidered to be a high risk of flooding; and(C) may include a regulatory floodway, flood pool, orreservoir."500-year floodplain" means any area of land that:(A) is identified on the flood insurance rate map as amoderate flood hazard area, which is designated on the map as Zone X(shaded); and(B) has a two-tenths of one percent annual chance offlooding, which is considered to be a moderate risk of flooding."Flood pool" means the area adjacent to a reservoir that liesabove the normal maximum operating level of the reservoir and that issubject to controlled inundation under the management of the UnitedStates Army Corps of Engineers."Flood insurance rate map" means the most recent flood hazardmap published by the Federal Emergency Management Agency under theNational Flood Insurance Act of 1968 (42 U.S.C. Section 4001 etseq.)."Floodway" means an area that is identified on the floodinsurance rate map as a regulatory floodway, which includes thechannel of a river or other watercourse and the adjacent land areasthat must be reserved for the discharge of a base flood, alsoreferred to as a 100-year flood, without cumulatively increasing thewater surface elevation more than a designated height."Reservoir" means a water impoundment project operated by theUnited States Army Corps of Engineers that is intended to retainwater or delay the runoff of water in a designated surface area ofland.7. Have you (Seller) ever filed a claim for flood damage to theproperty with any insurance provider, including the National FloodInsurance Program (NFIP)?* Yes No. If yes, explain (attachadditional sheets as necessary):*Homes in high risk flood zones with mortgages from federallyStatute text rendered on: 6/3/2022- 10 -

PROPERTY CODEregulated or insured lenders are required to have flood insurance.Even when not required, the Federal Emergency Management Agency(FEMA) encourages homeowners in high risk, moderate risk, and lowrisk flood zones to purchase flood insurance that covers thestructure(s) and the personal property within the structure(s).8. Have you (Seller) ever received assistance from FEMA or the U.S.Small Business Administration (SBA) for flood damage to the property?Yes No. If yes, explain (attach additional sheets asnecessary):9. Are you (Seller) aware of any of the following?Write Yes (Y) if you are aware, write No (N) if you are not aware.Room additions, structural modifications, or otheralterations or repairs made without necessarypermits or not in compliance with building codes ineffect at that time.Homeowners' Association or maintenance fees orassessments.Any "common area" (facilities such as pools, tenniscourts, walkways, or other areas) co-owned inundivided interest with others.Any notices of violations of deed restrictions orgovernmental ordinances affecting the condition oruse of the Property.Any lawsuits directly or indirectly affecting theProperty.Any condition on the Property which materiallyaffects the physical health or safety of anindividual.Any rainwater harvesting system located on theproperty that is larger than 500 gallons and thatuses a public water supply as an auxiliary watersource.Any portion of the property that is located in agroundwater conservation district or a subsidencedistrict.If the answer to any of the above is yes, explain. (Attachadditional sheets if necessary):10. If the property is located in a coastal area that is seaward ofthe Gulf Intracoastal Waterway or within 1,000 feet of the mean hightide bordering the Gulf of Mexico, the property may be subject to theStatute text rendered on: 6/3/2022- 11 -

PROPERTY CODEOpen Beaches Act or the Dune Protection Act (Chapter 61 or 63,Natural Resources Code, respectively) and a beachfront constructioncertificate or dune protection permit may be required for repairs orimprovements. Contact the local government with ordinance authorityover construction adjacent to public beaches for more information.11. This property may be located near a military installation andmay be affected by high noise or air installation compatible usezones or other operations. Information relating to high noise andcompatible use zones is available in the most recent Air InstallationCompatible Use Zone Study or Joint Land Use Study prepared for amilitary installation and may be accessed on the Internet website ofthe military installation and of the county and any municipality inwhich the military installation is located.DateSignature of SellerThe undersigned purchaser hereby acknowledges receipt of theforegoing notice.DateSignature of Purchaser(c) A seller or seller's agent shall have no duty to make adisclosure or release information related to whether a death bynatural causes, suicide, or accident unrelated to the condition ofthe property occurred on the property or whether a previous occupanthad, may have had, has, or may have AIDS, HIV related illnesses, orHIV infection.(d) The notice shall be completed to the best of seller'sbelief and knowledge as of the date the notice is completed andsigned by the seller. If the information required by the notice isunknown to the seller, the seller shall indicate that fact on thenotice, and by that act is in compliance with this section.(e) This section does not apply to a transfer:(1) pursuant to a court order or foreclosure sale;(2) by a trustee in bankruptcy;(3) to a mortgagee by a mortgagor or successor in interest,or to a beneficiary of a deed of trust by a trustor or successor ininterest;(4) by a mortgagee or a beneficiary under a deed of trustwho has acquired the real property at a sale conducted pursuant to apower of sale under a deed of trust or a sale pursuant to a courtStatute text rendered on: 6/3/2022- 12 -

PROPERTY CODEordered foreclosure or has acquired the real property by a deed inlieu of foreclosure;(5) by a fiduciary in the course of the administration of adecedent'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 thelineal line of consanguinity of one or more of the transferors;(8) between spouses resulting from a decree of dissolutionof marriage or a decree of legal separation or from a propertysettlement agreement incidental to such a decree;(9) to or from any governmental entity;(10) of a new residence of not more than one dwelling unitwhich has not previously been occupied for residential purposes; or(11) of real property where the value of any dwelling doesnot exceed five percent of the value of the property.(f) The notice shall be delivered by the seller to thepurchaser on or before the effective date of an executory contractbinding the purchaser to purchase the property. If a contract isentered without the seller providing the notice required by thissection, the purchaser may terminate the contract for any reasonwithin seven days after receiving the notice.(g) In this section:(1) "Blockable main drain" means a main drain of any sizeand shape that a human body can sufficiently block to create asuction entrapment hazard.(2) "Main drain" means a submerged suction outlet typicallylocated at the bottom of a swimming pool or spa to conduct water to arecirculating pump.Added by Acts 1993, 73rd Leg., ch. 356, Sec. 1, eff. Jan. 1, 1994.Amended by:Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 17.001, eff.September 1, 2005.Acts 2007, 80th Leg., R.S., Ch. 448 (H.B. 271), Sec. 1, eff.January 1, 2008.Acts 2007, 80th Leg., R.S., Ch. 1051 (H.B. 2118), Sec. 11, eff.September 1, 2007.Acts 2007, 80th Leg., R.S., Ch. 1256 (H.B. 2819), Sec. 22, eff.September 1, 2007.Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 20.001, eff.Statute text rendered on: 6/3/2022- 13 -

PROPERTY CODESeptember 1, 2009.Acts 2009, 81stJanuary 1, 2010.Acts 2011, 82ndSeptember 1, 2011.Acts 2011, 82ndSeptember 1, 2011.Acts 2011, 82ndSeptember 1, 2011.Acts 2013, 83rdSeptember 1, 2013.Acts 2015, 84thJanuary 1, 2016.Acts 2017, 85thSeptember 1, 2017.Acts 2019, 86thSeptember 1, 2019.Acts 2019, 86thSeptember 1, 2019.Leg., R.S., Ch. 1178 (H.B. 3502), Sec. 1, eff.Leg., R.S., Ch. 578 (H.B. 3389), Sec. 1, eff.Leg., R.S., Ch. 621 (S.B. 710), Sec. 1, eff.Leg., R.S., Ch. 1311 (H.B. 3391), Sec. 5, eff.Leg., R.S., Ch. 695 (H.B. 2781), Sec. 6, eff.Leg., R.S., Ch. 524 (H.B. 1221), Sec. 1, eff.Leg., R.S., Ch. 35 (H.B. 890), Sec. 2, eff.Leg., R.S., Ch. 1307 (H.B. 3815), Sec. 1, eff.Leg., R.S., Ch. 1337 (S.B. 339), Sec. 1, eff.Sec. 5.009. DUTIES OF LIFE TENANT. (a) Subject to Subsection(b), if the life tenant of a legal life estate is given the power tosell and reinvest any life tenancy property, the life tenant issubject, with respect to the sale and investment of the property, toall of the fiduciary duties of a trustee imposed by the Texas TrustCode (Subtitle B, Title 9, Property Code) or the common law of thisstate.(b) A life tenant may retain, as life tenancy property, anyreal property originally conveyed to the life tenant without beingsubject to the fiduciary duties of a trustee; however, the lifetenant is subject to the common law duties of a life tenant.Acts 1993, 73rd Leg., ch. 846, Sec. 34, eff. Sept. 1, 1993.Renumbered from Property Code Sec. 5.008 by Acts 1995, 74th Leg., ch.76, Sec. 17.01(42), eff. Sept. 1, 1995.Sec. 5.010. NOTICE OF ADDITIONAL TAX LIABILITY. (a) A personwho is the owner of an interest in vacant land and who contracts forStatute text rendered on: 6/3/2022- 14 -

PROPERTY CODEthe transfer of that interest shall include in the contract thefollowing bold-faced notice:NOTICE REGARDING POSSIBLE LIABILITY FOR ADDITIONAL TAXESIf for the current ad valorem tax year the taxable value of theland that is the subject of this contract is determined by a specialappraisal method that allows for appraisal of the land at less thanits market value, the person to whom the land is transferred may notbe allowed to qualify the land for that special appraisal in asubsequent tax year and the land may then be appraised at its fullmarket value. In addition, the transfer of the land or a subsequentchange in the use of the land may result in the imposition of anadditional tax plus interest as a penalty for the transfer or thechange in the use of the land. The taxable value of the land and theapplicable method of appraisal for the current tax year is publicinformation and may be obtained from the tax appraisal districtestablished for the county in which the land is located.(b) This section does not apply to a contract for a transfer:(1) under a court order or foreclosure sale;(2) by a trustee in bankruptcy;(3) to a mortgagee by a mortgagor or successor in interestor to a beneficiary of a deed of trust by a trustor or successor ininterest;(4) by a mortgagee or a beneficiary under a deed of trustwho has acquired the land at a sale conducted under a power of saleunder a deed of trust or a sale under a court-ordered foreclosure orhas acquired the land by a deed in lieu of foreclosure;(5) by a fiduciary in the course of the administration of adecedent's estate, guardianship, conservatorship, or trust;(6) of only a mineral interest, leasehold interest, orsecurity interest; or(7) to or from a governmental entity.(c) The notice described by Subsection (a) is not required tobe included in a contract for transfer of an interest in land ifevery transferee under the contract is:(1) a person who is a co-owner with an owner described bySubsection (a) of an undivided interest in the land; or(2) a spouse or a person in the lineal line ofconsanguinity of an owner described by Subsection (a).(d) The notice described by Subsection (a) is not required tobe given if in a separate paragraph of the contract the contractStatute text rendered on: 6/3/2022- 15 -

PROPERTY CODEexpressly provides for the payment of any additional ad valorem taxesand interest that become due as a penalty because of:(1) the transfer of the land; or(2) a subsequent change in the use of the land.(e) If the owner fails to include in the contract the noticedescribed by Subsection (a), the person to whom the land istransferred is entitled to recover from that owner an amount equal tothe amount of any additional taxes and interest that the person isrequired to pay as a penalty because of:(1) the transfer of the land; or(2) a subsequent change in the use of the land that occursbefore the fifth anniversary of the date of the transfer.Added by Acts 1997, 75th Leg., ch. 174, Sec. 1, eff. Jan. 1, 1998.Sec. 5.011. SELLER'S DISCLOSURE REGARDING POTENTIAL ANNEXATION.(a) A person who sells an interest in real property in this stateshall give to the purchaser of the property a written notice thatreads substantially similar to the following:NOTICE REGARDING POSSIBLE ANNEXATIONIf the property that is the subject of this contract is locatedoutside the limits of a municipality, the property may now or laterbe included in the extraterritorial jurisdiction of a municipalityand may now or later be subject to annexation by the municipality.Each municipality maintains a map that depicts its boundaries andextraterritorial jurisdiction. To determine if the property islocated within a municipality's extraterritorial jurisdiction or islikely to be located within a municipality's extraterritorialjurisdiction, contact all municipalities located in the generalproximity of the property for further information.(b) The seller shall deliver the notice to the purchaser beforethe date the executory contract binds the purchaser to purchase theproperty. The notice may be given separately, as part of thecontract during negotiations, or as part of any other notice theseller delivers to the purchaser.(c) This section does not apply to a transfer:(1) under a court order or foreclosure sale;(2) by a trustee in bankruptcy;(3) to a mortgagee by a mortgagor or successor in interestStatute text rendered on: 6/3/2022- 16 -

PROPERTY CODEor to a beneficiary of a deed of trust by a trustor or successor ininterest;(4) by a mortgagee or a beneficiary under a deed of trustwho has acquired the land at a sale conducted under a power of saleunder a deed of trust or a sale under a court-ordered foreclosure orhas acquired the land by a deed in lieu of foreclosure;(5) by a fiduciary in the course of the administration of adecedent's estate, guardianship, conservatorship, or trust;(6) from one co-owner to another co-owner of an undividedinterest in the real property;(7) to a spouse or a person in the lineal line ofconsanguinity of the seller;(8) to or from a governmental entity;(9) of only a mineral interest, leasehold interest, orsecurity interest; or(10) of real property that is located wholly within amunicipality's corporate boundaries.(d) If the notice is delivered as provided by this section, theseller has no duty to provide additional information regarding thepossible annexation of the property by a municipality.(e) If an executory contract is entered into without the sellerproviding the notice required by this section, the purchaser mayterminate the contract for any reason within the earlier of:(1) seven days after the date the purchaser receives thenotice; or(2) the date the transfer occurs.Added by Acts 1999, 76th Leg., ch. 529, Sec. 1, eff. Jan. 1, 2000.Sec. 5.012. NOTICE OF OBLIGATIONS RELATED TO MEMBERSHIP INPROPERTY OWNERS' ASSOCIATION. (a) A seller of residential realproperty that is subject to membership in a property owners'association and that comprises not more than one dwelling

TITLE 1. GENERAL PROVISIONS CHAPTER 1. GENERAL PROVISIONS Sec. 1.001. PURPOSE OF CODE. (a) This code is enacted as a part of the state's continuing statutory revision program begun by the Texas Legislative Council in 1963 as directed by the legislature in Chapter 448, Acts of the 58th Legislature, Regular Session, 1963