Relating to a seller's notice regarding the connection of water utilities to certain tracts of land.
Summary
HB 5335 would require sellers in certain executory land-sale contracts to give buyers a written disclosure stating whether the property currently has water service. The requirement applies only to lots of five acres or less in counties that both contain a municipality with more than 500,000 people and border an international boundary, which in practice narrows the bill to a small set of border-area counties. The disclosure must be provided before the contract is signed and must be printed in both English and Spanish in large, bold type.
If the seller fails to provide the required notice, the purchaser may terminate the executory contract for any reason within a limited period after receiving the notice, or before the transfer occurs under the contract. The bill is set to take effect September 1, 2025.
Impact
The bill would amend Subchapter A, Chapter 5 of the Texas Property Code by adding a new Section 5.0131 governing seller disclosures in certain executory contracts for small tracts of land. It creates a new statutory notice obligation for sellers and a corresponding rescission right for purchasers when the notice is not provided. The practical effect is to increase transparency about water utility access for buyers of rural or semi-rural property in qualifying border counties, and to give buyers a remedy if the disclosure is omitted.
Sentiment
The available record shows no committee testimony or recorded votes, so there is no documented debate or formal opposition in the materials provided. Based on the bill’s text, the measure appears to be framed as a consumer-protection and disclosure bill, with an emphasis on informing buyers about water service before they commit to a land purchase. The absence of recorded opposition or amendments in the provided context suggests the bill had not yet generated a visible public controversy at the time of referral.
Contention
The main potential points of contention are the bill’s narrow geographic scope, the burden it places on sellers in executory contracts, and the buyer’s right to terminate if the disclosure is missing. Sellers, land developers, or parties involved in contract-for-deed transactions could view the requirement as an added compliance obligation and a source of contract uncertainty. Buyers and consumer advocates would likely support the measure because it addresses possible confusion or misrepresentation about utility access, especially in areas where water service may be limited or uneven.
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.
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.