Public Improvement District Disclosure
Under HB 1543
, which was passed by the 87th Texas Legislature effective Sept. 1, 2021, every seller of a property that is subject to or part of a Public Improvement District (“PID”) is required to disclose to a buyer the existence of and certain details about the particular PID prior to execution of a binding contract, otherwise the buyer has the right to terminate the contract.
A Public Improvement District is a special district created by a city or County under the authority of Chapter 372 or Chapter 382 of the Texas Local Code. The statute allows for a city or county to levy a special assessment against properties within the district to pay for improvements and/or maintenance. Failure to pay the assessments results in a foreclosable lien on the property.
TLTA coverage and more information about the issue.
Texas Realtors PID Webinar
Texas Realtors Memo With More Info on TREC Forms, Processes