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HB 2422

AN ACT relating to seller's disclosures regarding water services for and

House Bill
Filed

Filed

Bill introduced by legislator

Committee

Hearing

Passed Cmte

Calendar

Passed

Sent

Enrolled

Governor

Signed

89th Regular Session

Jan 14, 2025 - Jun 2, 2025 • Session ended

Awaiting Committee Assignment

Bill filed, pending referral to House committee

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Committee

Not yet assigned

Fiscal Note

Not available

What This Bill Does

Requires residential property sellers to provide more detailed disclosures about water services and water rights when selling their property. Sellers must now inform potential buyers about specific water-related information, including whether the property's sale includes water rights, the presence of water wells, and details about local groundwater conservation or subsidence districts. The new disclosure form, developed by the Texas Real Estate Commission, must be delivered to the buyer before the final property sale contract, and buyers have the right to terminate the contract within seven days if the required notice is not provided.

Subject Areas

Bill Text

relating to seller's disclosures regarding water services for and
water rights in residential real property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 5.008(b), Property Code, is amended to
(b)  The notice must be executed and must, at a minimum, read
substantially similar to the following:
CONCERNING THE PROPERTY AT ___________________________________
THIS NOTICE IS A DISCLOSURE OF SELLER'S KNOWLEDGE OF
THE CONDITION OF THE PROPERTY AS OF THE DATE SIGNED BY
SELLER AND IS NOT A SUBSTITUTE FOR ANY INSPECTIONS OR
WARRANTIES THE PURCHASER MAY WISH TO OBTAIN. IT IS NOT
A WARRANTY OF ANY KIND BY SELLER OR SELLER'S AGENTS.
Seller __ is __ is not occupying the Property.
If unoccupied, how long since Seller has occupied the Property?
________________________________________________________________
1.  The Property has the items checked below:
Write Yes (Y), No (N), or Unknown (U).
__ Range
                     
                     __ Oven
                     
                     __ Microwave
__ Dishwasher
                     
                     __ Trash Compactor
                     
                     __ Disposal
__ Washer/Dryer
                     
                     __ Window
                     
                     __ Rain Gutters
Hookups
                     
                        Screens
__ Security
                     
                     __ Fire Detection
                     
                     __ Intercom
System
                     
                        Equipment
                     
                        System
__ TV Antenna
                     
                     __ Cable TV
                     
                     __ Satellite
Wiring
                     
                        Dish
__ Ceiling Fan(s)
                     
                     __ Attic Fan(s)
                     
                     __ Exhaust
__ Central A/C
                     
                     __ Central Heating
                     
                     __ Wall/Window
__ Plumbing System
                     
                     __ Septic System
                     
                     __ Public Sewer
__ Patio/Decking
                     
                     __ Outdoor Grill
                     
                     __ Fences
__ Pool
                     
                     __ Sauna
                     
                     __ Spa
__ Pool Equipment
                     
                     __ Pool Heater
                     
                     __ Automatic Lawn
__ Fireplace(s) &
                     
                     
                     
                     __ Fireplace(s) &
Chimney
                     
                     
                     
                        Chimney
(Woodburning)
                     
                     
                     
                        (Mock)
__ Natural Gas Lines
                     
                     
                     
                     __ Gas Fixtures
__ Liquid Propane Gas:
                     
                     __ LP Community
                     
                     __ LP on Property
__ Fuel Gas Piping:
                     
                     __ Black Iron Pipe
                     
                     __ Corrugated
__ Copper
                     
                       Stainless Steel
Garage: __ Attached
                     
                     __ Not Attached
                     
                     __ Carport
Garage Door Opener(s):
                     
                     __ Electronic
                     
                     __ Control(s)
Water Heater:
                     
                     __ Gas
                     
                     __ Electric
Water Supply: __ City
                     
                     __ Well __ MUD
                     
                     __ Co-op
Roof Type:  ________________________________ Age:  _____(approx)
Are you (Seller) aware of any of the above items that are not in
working condition, that have known defects, or that are in need of
repair?  __ Yes  __ No  __ Unknown.
If yes, then describe.  (Attach additional sheets if necessary):
________________________________________________________________
________________________________________________________________
Are you (Seller) aware of the following:
__  The name of the entity who regulates the water supply. If yes,
________________________________________________________________
________________________________________________________________
__  The name of the entity responsible for billing the homeowner for
water use. If yes, then provide below.
________________________________________________________________
________________________________________________________________
__  Any excessive water use fees or water use pricing tiers
applicable to the property. If yes, then describe.
________________________________________________________________
________________________________________________________________
__  The name of the entity responsible for maintaining the water
service line to the property. If yes, then provide below.
________________________________________________________________
________________________________________________________________
2.  Does the property have working smoke detectors installed in
accordance with the smoke detector requirements of Chapter 766,
Health and Safety Code?*  __ Yes  __ No  __ Unknown.
If the answer to the question above is no or unknown,
explain.  (Attach additional sheets if necessary):
*Chapter 766 of the Health and Safety Code requires
one-family or two-family dwellings to have working smoke detectors
installed in accordance with the requirements of the building code
in effect in the area in which the dwelling is located, including
performance, location, and power source requirements.  If you do
not know the building code requirements in effect in your area, you
may check unknown above or contact your local building official for
more information.  A buyer may require a seller to install smoke
detectors for the hearing impaired if:  (1) the buyer or a member of
the buyer's family who will reside in the dwelling is hearing
impaired; (2) the buyer gives the seller written evidence of the
hearing impairment from a licensed physician; and (3) within 10
days after the effective date, the buyer makes a written request for
the seller to install smoke detectors for the hearing impaired and
specifies the locations for installation.  The parties may agree
who will bear the cost of installing the smoke detectors and which
brand of smoke detectors to install.
3.  Are you (Seller) aware of any known defects/malfunctions in any
Write Yes (Y) if you are aware, write No (N) if you are not aware.
__ Interior Walls
                     
                     __ Ceilings
                     
                     __ Floors
__ Exterior Walls
                     
                     __ Doors
                     
                     __ Windows
__ Roof
                     
                     __ Foundation/
                     
                     __ Basement
__ Walls/Fences
                     
                     __ Driveways
                     
                     __ Sidewalks
__ Plumbing/Sewers/
                     
                     __ Electrical
                     
                     __ Lighting
Septics
                     
                        Systems
                     
                        Fixtures
__ Other Structural Components (Describe):_______________________
________________________________________________________________
________________________________________________________________
If the answer to any of the above is yes, explain.  (Attach
additional sheets if necessary):________________________________
________________________________________________________________
________________________________________________________________
4.  Are you (Seller) aware of any of the following conditions?
Write Yes (Y) if you are aware, write No (N) if you are not aware.
__ Active Termites
                     
                     __ Previous Structural
(includes
                     
                        or Roof Repair
__ Termite or Wood Rot Damage
                     
                     __ Hazardous or Toxic Waste
__ Previous Termite Damage
                     
                     __ Asbestos Components
__ Previous Termite
                     
                     __ Urea formaldehyde
Treatment
                     
                        Insulation
__ Improper Drainage
                     
                     __ Lead Based Paint
__ Water Damage Not Due to a
                     
                     __ Aluminum Wiring
__ Landfill, Settling, Soil
                     
                     __ Subsurface
Movement, Fault Lines
                     
                        Structure or Pits
__ Single Blockable Main
                     
                     __ Previous Use of Premises
Drain in Pool/Hot
                     
                        for Manufacture of
Tub/Spa*
                     
                        Methamphetamine
If the answer to any of the above is yes, explain.  (Attach
additional sheets if necessary):________________________________
________________________________________________________________
________________________________________________________________
*A single blockable main drain may cause a suction entrapment
5.  Are you (Seller) aware of any item, equipment, or system in or
on the property that is in need of repair?  __ Yes (if you are
aware)  __ No (if you are not aware).  If yes, explain (attach
additional sheets as necessary).
_________________________________
6.  Are you (Seller) aware of any of the following conditions?
*  Write Yes (Y) if you are aware, write No (N) if you are not aware.
__  Present flood insurance coverage
__  Previous flooding due to a failure or breach of a reservoir or a
controlled or emergency release of water from a reservoir
__  Previous water penetration into a structure on the property due
Write Yes (Y) if you are aware and check wholly or partly as
applicable, write No (N) if you are not aware.
__ Located ( ) wholly  ( ) partly in a 100-year floodplain (Special
Flood Hazard Area-Zone A, V, A99, AE, AO, AH, VE, or AR)
__ Located ( ) wholly  ( ) partly in a 500-year floodplain (Moderate
Flood Hazard Area-Zone X (shaded))
__ Located ( ) wholly  ( ) partly in a floodway
__ Located ( ) wholly  ( ) partly in a flood pool
__ Located ( ) wholly  ( ) partly in a reservoir
If the answer to any of the above is yes, explain (attach additional
"100-year floodplain" means any area of land that:
(A)  is identified on the flood insurance rate map as a
special flood hazard area, which is designated as Zone A, V, A99,
AE, AO, AH, VE, or AR on the map;
(B)  has a one percent annual chance of flooding, which
is considered to be a high risk of flooding; and
(C)  may include a regulatory floodway, flood pool, or
"500-year floodplain" means any area of land that:
(A)  is identified on the flood insurance rate map as a
moderate flood hazard area, which is designated on the map as Zone X
(B)  has a two-tenths of one percent annual chance of
flooding, which is considered to be a moderate risk of flooding.
"Flood pool" means the area adjacent to a reservoir that lies
above the normal maximum operating level of the reservoir and that
is subject to controlled inundation under the management of the
United States Army Corps of Engineers.
"Flood insurance rate map" means the most recent flood hazard
map published by the Federal Emergency Management Agency under the
National Flood Insurance Act of 1968 (42 U.S.C. Section 4001 et
"Floodway" means an area that is identified on the flood
insurance rate map as a regulatory floodway, which includes the
channel of a river or other watercourse and the adjacent land areas
that must be reserved for the discharge of a base flood, also
referred to as a 100-year flood, without cumulatively increasing
the water surface elevation more than a designated height.
"Reservoir" means a water impoundment project operated by the
United States Army Corps of Engineers that is intended to retain
water or delay the runoff of water in a designated surface area of
7.  Have you (Seller) ever filed a claim for flood damage to the
property with any insurance provider, including the National Flood
Insurance Program (NFIP)?* __ Yes  __ No.  If yes, explain (attach
additional sheets as necessary):
*Homes in high risk flood zones with mortgages from federally
regulated or insured lenders are required to have flood
insurance.  Even when not required, the Federal Emergency
Management Agency (FEMA) encourages homeowners in high risk,
moderate risk, and low risk flood zones to purchase flood insurance
that covers the structure(s) and the personal property within the
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
9.  Are you (Seller) aware of any of the following?
Write Yes (Y) if you are aware, write No (N) if you are not aware.
__ 
                     Room additions, structural modifications, or other alterations or repairs made without
                        necessary permits or not in compliance with building codes in effect at that time.
__ 
                     Homeowners' Association or maintenance fees or assessments.
__ 
                     Any "common area" (facilities such as pools, tennis courts, walkways, or other areas)
                        co-owned in undivided interest with others.
__ 
                     Any notices of violations of deed restrictions or governmental ordinances affecting
                        the condition or use of the Property.
__ 
                     Any lawsuits directly or indirectly affecting the Property.
__ 
                     Any condition on the Property which materially affects the physical health or safety
                        of an individual.
__ 
                     Any rainwater harvesting system located on the property that is larger than 500 gallons
                        and that uses a public water supply as an auxiliary water source.
__
                     Any portion of the property that is located in a groundwater conservation district
                        or a subsidence district.
If the answer to any of the above is yes, explain.  (Attach
additional sheets if necessary):  ______________________________
________________________________________________________________
________________________________________________________________
10.  If the property is located in a coastal area that is seaward of
the Gulf Intracoastal Waterway or within 1,000 feet of the mean high
tide bordering the Gulf of Mexico, the property may be subject to
the Open Beaches Act or the Dune Protection Act (Chapter 61 or 63,
Natural Resources Code, respectively) and a beachfront
construction certificate or dune protection permit may be required
for repairs or improvements.  Contact the local government with
ordinance authority over construction adjacent to public beaches
11.  This property may be located near a military installation and
may be affected by high noise or air installation compatible use
zones or other operations.  Information relating to high noise and
compatible use zones is available in the most recent Air
Installation Compatible Use Zone Study or Joint Land Use Study
prepared for a military installation and may be accessed on the
Internet website of the military installation and of the county and
any municipality in which the military installation is located.
_______________         ________________________________________
Date                     Signature of Seller
The undersigned purchaser hereby acknowledges receipt of the
_______________         ________________________________________
Date                     Signature of Purchaser
SECTION 2.  Subchapter A, Chapter 5, Property Code, is
amended by adding Section 5.0131 to read as follows:
Sec. 5.0131.  NOTICE OF GROUNDWATER AND SURFACE WATER
RIGHTS.  (a)  This section applies only to the sale of a fee simple
interest in residential real property located in this state
comprising not more than one dwelling unit and land on which the
(b)  A seller of residential real property to which this
section applies shall provide the purchaser of the property with a
written notice describing the groundwater and surface water rights
(c)  The Texas Real Estate Commission shall develop and
publish the form for the written notice required under Subsection
(b). The form must require the seller to disclose information
(1)  whether the conveyance of the property includes
(2)  whether the conveyance of the property includes
(3)  whether there are any water wells located on the
(4)  if the property is located in a groundwater
conservation district or a subsidence district, the name and any
relevant information concerning the applicable district.
(d)  The notice must be delivered by the seller on or before
the effective date of an executory contract binding the purchaser
to purchase the property.  If a contract is entered without the
seller providing the notice as required by this section, the
purchaser may terminate the contract for any reason not later than
the seventh day after the effective date of the receiving of the
(e)  The appropriate use of forms published by the Texas Real
Estate Commission under this section constitutes compliance with
SECTION 3.  Section 5.008(b), Property Code, as amended by
this Act, and Section 5.0131, Property Code, as added by this Act,
apply only to a transfer of property that occurs on or after the
effective date of this Act.  A transfer of property that occurs
before the effective date of this Act is governed by the law
applicable to the transfer immediately before that date, and the
former law is continued in effect for that purpose.  For the
purposes of this section, a transfer of property occurs before the
effective date of this Act if the contract binding the purchaser to
purchase the property is executed before that date.
SECTION 4.  This Act takes effect September 1, 2025.

Bill History

filed

Bill filed: AN ACT relating to seller's disclosures regarding water services for and