The Texas Real Estate Commission’s Broker-Lawyer Committee (BLC) had its first meeting of the year on January 12. The committee discussed potential form changes, reviewed public comments, and took a deep dive into recent case law, but one notice stole a chunk of the conversation. Here are some of the highlights.

Clearing Up Confusion Over Voluntary MUD Notice

At its November meeting, the Commission proposed the new draft form Notice to Purchaser of Special Taxing or Assessment District recommended by the BLC. At the January BLC meeting, the committee reviewed public comments received on the draft and noted that because the form language comes directly from statute, the committee was limited in the changes it could make. However, the committee did make some clarifying edits in light of public comment and recommended the revised draft be adopted by the Commission at its next meeting in February.

Why is the BLC making this recommendation?

Under Texas law, if a seller’s property is located in a water district, like a municipal utility district (MUD), the seller must provide a notice that includes certain specific information to the buyer prior to execution of the contract. The language of the notice is provided—word for word—by statute.

Water districts are required to make the information in this form available to the public (for example, many are required to post the information on the district’s website). However, if the district has not made the notice available, the BLC recommended this form be made available as a backup, so that a seller could obtain the information from the district and then could use that information to complete the form.

What changes did the BLC make to the form?

Texas law dictates the specific wording of this form, so no major changes were made. However, the committee did make some changes aimed at addressing the common questions and comments received during the public comment period.

Is this form supposed to be used with PIDs?

No. The form should not be used with Public Improvement Districts (PIDs). To make this clear, the BLC recommended adding that language to the form.

Are license holders supposed to complete this form?

No. This is a seller’s disclosure form, meaning it is the seller’s responsibility to complete and provide the form to the buyer, much like the Seller’s Disclosure Notice. If the seller has questions about how to complete this form, the seller should contact the district.

If the district has their own form available, does the seller need to use the Commission’s form?

No. If available, the seller should use the district’s form instead of the Commission’s form. The committed added this statement to the information at the top of the form.

Meeting Materials

View the meeting agenda, materials, and video.

The Committee meets again on April 12.