Texas Local Government Code 232.033 – Advertising Standards and Other Requirements Before Sale; Offense
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(a) Brochures, publications, and advertising of any form relating to subdivided land:
(1) may not contain any misrepresentation; and
(2) except for a for-sale sign posted on the property that is no larger than three feet by three feet, must accurately describe the availability of water and sewer service facilities and electric and gas utilities.
(b) The subdivider shall provide a copy in Spanish of all written documents relating to the sale of subdivided land under an executory contract, including the contract, disclosure notice, and annual statement required by this section and a notice of default required by Subchapter D, Chapter 5, Property Code, if:
(1) negotiations that precede the execution of the executory contract are conducted primarily in Spanish; or
(2) the purchaser requests the written documents to be provided in Spanish.
Attorney's Note
Under the Texas Codes, punishments for crimes depend on the classification. In the case of this section:| Class | Prison | Fine |
|---|---|---|
| Class A misdemeanor | up to 1 year | up to $4,000 |
Terms Used In Texas Local Government Code 232.033
- Contract: A legal written agreement that becomes binding when signed.
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Lien: A claim against real or personal property in satisfaction of a debt.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
- Property: means real and personal property. See Texas Government Code 311.005
- Signed: includes any symbol executed or adopted by a person with present intention to authenticate a writing. See Texas Government Code 311.005
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
- Year: means 12 consecutive months. See Texas Government Code 311.005
(c) Before an executory contract is signed by the purchaser, the subdivider shall provide the purchaser with a written notice, which must be attached to the executory contract, informing the purchaser of the condition of the property that must, at a minimum, be executed by the subdivider and purchaser, be acknowledged, and read substantially similar to the following:
IF ANY OF THE ITEMS BELOW HAVE NOT BEEN CHECKED, YOU MAY NOT BE ABLE TO LIVE ON THE PROPERTY.
WARNING
CONCERNING THE PROPERTY AT (street address or legal description and municipality)
THIS DOCUMENT STATES THE TRUE FACTS ABOUT THE LAND YOU ARE CONSIDERING PURCHASING.
CHECK OFF THE ITEMS THAT ARE TRUE:
___ The property is in a recorded subdivision.
___ The property has water service that provides potable water.
___ The property has sewer service or a septic system.
___ The property has electric service.
___ The property is not in a flood-prone area.
___ The roads are paved.
___ No person other than the subdivider:
(1) owns the property;
(2) has a claim of ownership to the property; or
(3) has an interest in the property.
___ No person has a lien filed against the property.
___ There are no back taxes owed on the property.
NOTICE
SELLER ADVISES PURCHASER TO:
(1) OBTAIN A TITLE ABSTRACT OR TITLE COMMITMENT REVIEWED BY AN ATTORNEY BEFORE SIGNING A CONTRACT OF THIS TYPE; AND
(2) PURCHASE AN OWNER’S POLICY OF TITLE INSURANCE COVERING THE PROPERTY.
__________________
___________________________
(Date)
(Signature of Subdivider)
__________________
___________________________
(Date)
(Signature of Purchaser)
(d) The subdivider shall provide any purchaser who is sold a lot under an executory contract with an annual statement in January of each year for the term of the executory contract. If the subdivider mails the statement to the purchaser, the statement must be postmarked not later than January 31.
(e) The statement under Subsection (d) must include the following information:
(1) the amount paid under the contract;
(2) the remaining amount owed under the contract;
(3) the annual interest rate charged under the contract during the preceding 12-month period; and
(4) the number of payments remaining under the contract.
(f) If the subdivider fails to comply with Subsections (d) and (e), the purchaser may:
(1) notify the subdivider that the purchaser has not received the statement and will deduct 15 percent of each monthly payment due until the statement is received; and
(2) not earlier than the 25th day after the date the purchaser provides the subdivider notice under this subsection, deduct 15 percent of each monthly payment due until the statement is received by the purchaser.
(g) A purchaser who makes a deduction under Subsection (f) is not required to reimburse the subdivider for the amount deducted.
(h) A person who is a seller of lots in a subdivision, or a subdivider or an agent of a seller or subdivider, commits an offense if the person knowingly authorizes or assists in the publication, advertising, distribution, or circulation of any statement or representation that the person knows is false concerning any subdivided land offered for sale or lease. An offense under this section is a Class A misdemeanor.