The bill amends Section 5.0141(b) of the Property Code to enhance the rights of purchasers in real estate transactions. Specifically, it allows a purchaser to terminate a contract of purchase and sale if the seller fails to provide notice that the property is located in a public improvement district. The new language stipulates that the purchaser can terminate the contract for any reason within seven days after receiving the notice, provided that the municipality or county has filed a copy of the service plan with the county clerk before the contract was executed.

Additionally, the bill clarifies that the amended provisions will only apply to sales or conveyances of property for which a binding contract is executed on or after the effective date of the Act. Contracts executed prior to this date will continue to be governed by the existing law. The Act is set to take effect immediately upon receiving a two-thirds vote from both houses of the legislature, or on September 1, 2025, if such a vote is not achieved.

Statutes affected:
Introduced: Property Code 5.0141 (Property Code 5)