Form 4-6

A person who proposes to sell or otherwise convey real property that is located in a public improve­ment district established under Texas Local Government Code chapter 372, subchapter A, or chapter 382 shall first give to the purchaser of the property the notice set forth below. Tex. Prop. Code § 5.014(a). Certain transactions are exempted. The notice must be given before the effective date of the executory contract. Notice may be given separately or as an addendum or paragraph of the contract. If an executory contract is entered into without the notice having been given, the purchaser is entitled to terminate the contract. If, however, the seller furnishes the notice at or before the closing of the con­tract and the purchaser elects to close even though the notice was not timely furnished before execu­tion of the contract, it shall be conclusively presumed that the purchaser has waived all rights to terminate the contract, recover damages, or seek other remedies or rights under Tex. Prop. Code § 5.0145.

Tex. Prop. Code § 5.014(a–2) sets forth the notice required by Tex. Prop. Code § 5.014(a) for districts described by Tex. Loc. Gov’t Code § 372.0035, which are composed of territory where the only busi­nesses are hotels, as described therein. In these districts, the seller must deliver this notice in compli­ance with Tex. Prop. Code § 5.014(a).

The seller or the municipality or county that created the public improvement district may provide addi­tional information regarding the district in the notice, including whether the assessment has been lev­ied, the amount of the assessment, and the payment schedule for assessments.Tex. Prop. Code § 5.014(b).

Notice of Obligation to Pay Improvement District Assessment to [name of municipality or county levying assessment], Texas, Concerning the Following [Hotel] Property 
[street address]

Seller[s]:

Purchaser[s]:

Real Property:

Date:

As the purchaser of the real property described above, you are obligated to pay assess­ments to [name of municipality or county], Texas, for the costs of a portion of a public improvement or services project (the “Authorized [Improvements/Services]”) undertaken for the benefit of the property within [name of public improvement district] (the “District”) cre­ated under [Subchapter A, Chapter 372, Local Government Code/Chapter 382, Local Govern­ment Code].

AN ASSESSMENT HAS BEEN LEVIED AGAINST YOUR PROPERTY FOR THE AUTHORIZED IMPROVEMENTS, WHICH MAY BE PAID IN FULL AT ANY TIME. IF THE ASSESSMENT IS NOT PAID IN FULL, IT WILL BE DUE AND PAYABLE IN ANNUAL INSTALLMENTS THAT WILL VARY FROM YEAR TO YEAR DEPENDING ON THE AMOUNT OF INTEREST PAID, COLLECTION COSTS, ADMINISTRATIVE COSTS, AND DELNQUENCY COSTS.

The exact amount of the assessment may be obtained from [name of municipality or county]. The exact amount of each annual installment will be approved each year by [name of city council or county commissioners court] in the annual service plan update for the district. More information about the assessments, including the amounts and due dates, may be obtained from [name of municipality or county].

Your failure to pay any assessment or any annual installment may result in penalties and interest being added to what you owe or in a lien on and the foreclosure of your property.

AN ASSESSMENT HAS BEEN LEVIED AGAINST YOUR PROPERTY FOR THE AUTHORIZED SERVICES, WHICH MUST BE PAID IN FULL WITH EVERY PAY­MENT BY THE HOTEL OF LOCAL HOTEL OCCUPANCY TAX REMITTANCES TO THE MUNICIPALITY. YOUR FAILURE TO PAY THE ASSESSMENT MAY RESULT IN PENALITIES AND INTEREST BEING ADDED TO WHAT YOU OWE, AND MAY INCLUDE THE PURSUIT OF ANY OTHER REMEDY THAT IS AUTHORIZED UNDER SECTION 372.0035(d), LOCAL GOVERNMENT CODE.

Information about the calculation of the assessment may be obtained from [name of municipality]. The exact assessment rate will be approved each year by [name of city council] in the annual service plan update for the district. More information about the assessments, including the assessment rate and due dates, may be obtained from [name of municipality].

The undersigned purchaser acknowledges receipt of this notice before the effective date of a binding contract for the purchase of the real property at the address described above.

   
[Name of purchaser]
Date: