87R21915 DRS-D     By: Reynolds H.B. No. 1719       A BILL TO BE ENTITLED   AN ACT   relating to a potential erosion notice to purchasers of real   property in a commercial or residential development in certain   counties.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter A, Chapter 5, Property Code, is   amended by adding Section 5.0191 to read as follows:          Sec. 5.0191.  POTENTIAL EROSION NOTICE IN CERTAIN COUNTIES.   (a)  This section applies only to real property located in a county   that:                (1)  has a population of 585,000 or more; and                (2)  is adjacent to a county with a population of four   million or more.          (b)  A seller of real property that is used or intended to be   used for residential or commercial purposes and that is wholly or   partly located within 500 feet of a river or an impoundment of water   authorized under Chapter 11, Water Code, shall give to the   purchaser of the property a written notice that reads substantially   similar to the following:   NOTICE OF POTENTIAL EROSION          The property at (street address and city) or described by   (legal description) is subject to potential erosion caused by a   river or impoundment of water that may:                (1)  damage the property or a building or structure   constructed on the property; or                (2)  affect an area of the property that is available   for development for residential or commercial use.          (c)  The seller shall deliver the notice required under   Subsection (b) to the purchaser before the effective date of an   executory contract binding the purchaser to purchase the property.          (d)  If an executory contract is entered into without the   seller providing the notice required by this section, the purchaser   may terminate the contract for any reason not later than the earlier   of:                (1)  the seventh day after the date the purchaser   receives:                      (A)  the notice from the seller; or                      (B)  the information about the property described   by the notice from any other person; or                (2)  the date the transfer occurs as provided by the   executory contract.          (e)  After the date of the conveyance, the purchaser may   bring an action for misrepresentation against the seller if the   seller:                (1)  failed to provide the notice before the date of the   conveyance; and                (2)  had actual knowledge that all or a portion of the   property was:                      (A)  located wholly or partly within 500 feet of a   river or an impoundment of water authorized under Chapter 11, Water   Code; and                      (B)  subject to potential erosion caused by the   river or impoundment of water.          SECTION 2.  Section 5.0191, Property Code, as added by this   Act, applies only to a contract for the sale of real property   entered into on or after the effective date of this Act.          SECTION 3.  This Act takes effect September 1, 2021.