Form 4-18

This form sets out the mandatory notice under Tex. Water Code § 49.452. The seller must give a pro­spective purchaser the notice before or at the same time as the execution of the contract. If the seller fails to provide the notice, the purchaser may cancel the contract. By accepting the notice, the pur­chaser waives its rights under section 49.452. Tex. Water Code § 49.452(f). A separate copy of the notice must be executed by the seller and the purchaser, acknowledged, and recorded with the deed for the transaction. Tex. Water Code § 49.452(h). This form does not detail the permissible modifications that may be necessary under different circumstances. See section 2.280 in this manual.

Utility District Notice

Seller[s]:

Purchaser[s]:

The real property, described below, that you are about to purchase is located in the [dis­trict] District. The district has taxing authority separate from any other taxing authority and may, subject to voter approval, issue an unlimited amount of bonds and levy an unlimited rate of tax in payment of such bonds. As of [this date/January 1, [year]], the rate of taxes levied by the district on real property located in the district is $[amount] on each $100 of assessed valu­ation. If the district has not yet levied taxes, the most recent projected rate of tax, as of [this date/January 1, [year]], is $[amount] on each $100 of assessed valuation. The total amount of bonds, excluding refunding bonds and any bonds or any portion of bonds issued that are pay­able solely from revenues received or expected to be received under a contract with a govern­mental entity, approved by the voters and which have been or may, at [this date/January 1, [year]], be issued is $[amount], and the aggregate initial principal amounts of all bonds issued for one or more of the specified facilities of the district and payable in whole or in part from property taxes is $[amount].

The district has the authority to adopt and impose a standby fee on property in the dis­trict that has water, sanitary sewer, or drainage facilities and services available but not con­nected and which does not have a house, building, or other improvement located thereon and does not substantially utilize the utility capacity available to the property. The district may exercise the authority without holding an election on the matter. As of [this date/January 1, [year]], the most recent amount of the standby fee is $[amount]. An unpaid standby fee is a personal obligation of the person that owned the property at the time of imposition and is secured by a lien on the property. Any person may request a certificate from the district stating the amount, if any, of unpaid standby fees on a tract of property in the district.

The district is located in whole or in part in the extraterritorial jurisdiction of the city of [city]. By law, a district located in the extraterritorial jurisdiction of a municipality may be annexed without the consent of the district or the voters of the district. When a district is annexed, the district is dissolved.

The district is located in whole or in part within the corporate boundaries of the city of [city]. The taxpayers of the district are subject to the taxes imposed by the municipality and by the district until the district is dissolved. By law, a district located within the corporate bound­aries of a municipality may be dissolved by municipal ordinance without the consent of the district or the voters of the district.

The purpose of this district is to provide water, sewer, drainage, or flood control facili­ties and services within the district through the issuance of bonds payable in whole or in part from property taxes. The cost of these utility facilities is not included in the purchase price of your property, and these utility facilities are owned or to be owned by the district. The legal description of the property you are acquiring is as follows: [legal description].

   
[Name of seller]
Date:

Purchaser is advised that the information shown on this form is subject to change by the district at any time. The district routinely establishes tax rates during the months of September through December of each year, effective for the year in which the tax rates are approved by the district. Purchaser is advised to contact the district to determine the status of any current or pro­posed changes to the information shown on this form.

The undersigned purchaser[s] hereby acknowledge[s] receipt of the foregoing notice at or prior to execution of a binding contract for the purchase of the real property described in such notice or at closing of purchase of the real property.

   
[Name of purchaser]
Date: