89R3024 JAM-F     By: Darby H.B. No. 3901       A BILL TO BE ENTITLED   AN ACT   relating to an exemption of the transfer of certain rights in water   from certain disclosure requirements applicable to the transfer of   certain interests in real property.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 33.135(a), Natural Resources Code, is   amended to read as follows:          (a)  A person who sells, transfers, or conveys an interest   other than a groundwater or surface water right or a mineral,   leasehold, or security interest in real property adjoining and   abutting the tidally influenced waters of the state must include   the following notice as a part of a written executory contract for   the sale, transfer, or conveyance:                "(1)  The real property described in and subject to   this contract adjoins and shares a common boundary with the tidally   influenced submerged lands of the state.  The boundary is subject to   change and can be determined accurately only by a survey on the   ground made by a licensed state land surveyor in accordance with the   original grant from the sovereign.  The owner of the property   described in this contract may gain or lose portions of the tract   because of changes in the boundary.   "NOTICE REGARDING COASTAL AREA PROPERTY                "(2)  The seller, transferor, or grantor has no   knowledge of any prior fill as it relates to the property described   in and subject to this contract.                "(3)  State law prohibits the use, encumbrance,   construction, or placing of any structure in, on, or over   state-owned submerged lands below the applicable tide line, without   proper permission.                "(4)  The purchaser or grantee is hereby advised to   seek the advice of an attorney or other qualified person as to the   legal nature and effect of the facts set forth in this notice on the   property described in and subject to this contract.  Information   regarding the location of the applicable tide line as to the   property described in and subject to this contract may be obtained   from the surveying division of the General Land Office in Austin."          SECTION 2.  Section 61.025(a), Natural Resources Code, is   amended to read as follows:          (a)  Except as provided by Subsection (b), a person who sells   or conveys an interest, other than a groundwater or surface water   right or a mineral, leasehold, or security interest, in real   property located seaward of the Gulf Intracoastal Waterway to its   southernmost point and then seaward of the longitudinal line also   known as 97 degrees, 12', 19" which runs southerly to the   international boundary from the intersection of the centerline of   the Gulf Intracoastal Waterway and the Brownsville Ship Channel   must include in any executory contract for conveyance a statement   in substantially the following form:   CONCERNING THE PROPERTY AT ______________________________________   DISCLOSURE NOTICE CONCERNING LEGAL AND ECONOMIC RISKS   OF PURCHASING COASTAL REAL PROPERTY NEAR A BEACH          WARNING:  THE FOLLOWING NOTICE OF POTENTIAL RISKS OF   ECONOMIC LOSS TO YOU AS THE PURCHASER OF COASTAL REAL PROPERTY IS   REQUIRED BY STATE LAW.          ●    READ THIS NOTICE CAREFULLY.  DO NOT SIGN THIS CONTRACT   UNTIL YOU FULLY UNDERSTAND THE RISKS YOU ARE ASSUMING.          ●    BY PURCHASING THIS PROPERTY, YOU MAY BE ASSUMING   ECONOMIC RISKS OVER AND ABOVE THE RISKS INVOLVED IN PURCHASING   INLAND REAL PROPERTY.          ●    IF YOU OWN A STRUCTURE LOCATED ON COASTAL REAL PROPERTY   NEAR A GULF COAST BEACH, IT MAY COME TO BE LOCATED ON THE PUBLIC   BEACH BECAUSE OF COASTAL EROSION AND STORM EVENTS.          ●    AS THE OWNER OF A STRUCTURE LOCATED ON THE PUBLIC BEACH,   YOU COULD BE SUED BY THE STATE OF TEXAS AND ORDERED TO REMOVE THE   STRUCTURE.          ●    THE COSTS OF REMOVING A STRUCTURE FROM THE PUBLIC BEACH   AND ANY OTHER ECONOMIC LOSS INCURRED BECAUSE OF A REMOVAL ORDER   WOULD BE SOLELY YOUR RESPONSIBILITY.          The real property described in this contract is located   seaward of the Gulf Intracoastal Waterway to its southernmost point   and then seaward of the longitudinal line also known as 97 degrees,   12', 19" which runs southerly to the international boundary from   the intersection of the centerline of the Gulf Intracoastal   Waterway and the Brownsville Ship Channel.  If the property is in   close proximity to a beach fronting the Gulf of Mexico, the   purchaser is hereby advised that the public has acquired a right of   use or easement to or over the area of any public beach by   prescription, dedication, or presumption, or has retained a right   by virtue of continuous right in the public since time immemorial,   as recognized in law and custom.          The extreme seaward boundary of natural vegetation that   spreads continuously inland customarily marks the landward   boundary of the public easement.  If there is no clearly marked   natural vegetation line, the landward boundary of the easement is   as provided by Sections 61.016 and 61.017, Natural Resources Code.          Much of the Gulf of Mexico coastline is eroding at rates of   more than five feet per year.  Erosion rates for all Texas Gulf   property subject to the open beaches act are available from the   Texas General Land Office.          State law prohibits any obstruction, barrier, restraint, or   interference with the use of the public easement, including the   placement of structures seaward of the landward boundary of the   easement.  OWNERS OF STRUCTURES ERECTED SEAWARD OF THE VEGETATION   LINE (OR OTHER APPLICABLE EASEMENT BOUNDARY) OR THAT BECOME SEAWARD   OF THE VEGETATION LINE AS A RESULT OF PROCESSES SUCH AS SHORELINE   EROSION ARE SUBJECT TO A LAWSUIT BY THE STATE OF TEXAS TO REMOVE THE   STRUCTURES.          The purchaser is hereby notified that the purchaser should:                (1)  determine the rate of shoreline erosion in the   vicinity of the real property; and                (2)  seek the advice of an attorney or other qualified   person before executing this contract or instrument of conveyance   as to the relevance of these statutes and facts to the value of the   property the purchaser is hereby purchasing or contracting to   purchase.          SECTION 3.  Section 5.011(c), Property Code, is amended to   read as follows:          (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   interest or to a beneficiary of a deed of trust by a trustor or   successor in interest;                (4)  by a mortgagee or a beneficiary under a deed of   trust who has acquired the land at a sale conducted under a power of   sale under a deed of trust or a sale under a court-ordered   foreclosure or has acquired the land by a deed in lieu of   foreclosure;                (5)  by a fiduciary in the course of the administration   of a decedent's estate, guardianship, conservatorship, or trust;                (6)  from one co-owner to another co-owner of an   undivided interest in the real property;                (7)  to a spouse or a person in the lineal line of   consanguinity of the seller;                (8)  to or from a governmental entity;                (9)  of only a groundwater right, surface water right,    mineral interest, leasehold interest, or security interest; or                (10)  of real property that is located wholly within a   municipality's corporate boundaries.          SECTION 4.  Section 5.014(c), Property Code, is amended to   read as follows:          (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   interest or to a beneficiary of a deed of trust by a trustor or   successor in interest;                (4)  by a mortgagee or a beneficiary under a deed of   trust who has acquired the land at a sale conducted under a power of   sale under a deed of trust or a sale under a court-ordered   foreclosure or has acquired the land by a deed in lieu of   foreclosure;                (5)  by a fiduciary in the course of the administration   of a decedent's estate, guardianship, conservatorship, or trust;                (6)  from one co-owner to another co-owner of an   undivided interest in the real property;                (7)  to a spouse or a person in the lineal line of   consanguinity of the seller;                (8)  to or from a governmental entity; or                (9)  of only a groundwater right, surface water right,    mineral interest, leasehold interest, or security interest.          SECTION 5.  Section 13.257(c), Water Code, is amended to   read as follows:          (c)  This section does not apply to:                (1)  a transfer of title under any type of lien   foreclosure;                (2)  a transfer of title by deed in cancellation of   indebtedness secured by a lien on the property conveyed;                (3)  a transfer of title by reason of a will or probate   proceeding;                (4)  a transfer of title to or from a governmental   entity;                (5)  a transfer of title to property located within the   corporate limits of a municipality that is served by a municipally   owned utility;                (6)  a transfer of title to property that receives   water or sewer service from a utility service provider on the date   the property is transferred;                (7)  a transfer of title by a trustee in bankruptcy;                (8)  a transfer of title by a mortgagee or beneficiary   under a deed of trust who acquired the property:                      (A)  at a sale conducted under a power of sale   conferred by a deed of trust or other contract lien;                      (B)  at a sale under a court judgment foreclosing   a lien; or                      (C)  by a deed in lieu of foreclosure;                (9)  a transfer of title from one co-owner to another   co-owner;                (10)  a transfer of title between spouses or to a person   in the lineal line of consanguinity of the transferor; or                (11)  a transfer of a groundwater right, surface water   right, mineral interest, leasehold interest, or security interest.          SECTION 6.  This Act takes effect September 1, 2025.