How to get the water-district notice your seller needs

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11/18/2014 | Author: Editorial Staff

When does a seller have to provide a water-district notice to a buyer? How can my seller get the right form and fill it out correctly?

Generally speaking, a seller of property located in a water district must provide a water-district notice to a buyer, if depending on how the water district is financed, the seller owes a tax or standby fee. Sellers who are unsure if they are required to provide such a notice should check with their particular water district.

There are three types of notices, and the one required depends on if the property is:

  • Located in whole or in part within the corporate boundaries of a municipality
  • Located in whole or in part in the extraterritorial jurisdiction of one or more home-rule municipalities and not within the corporate boundaries of a municipality
  • Not located in whole or in part within the corporate boundaries of a municipality or the extraterritorial jurisdiction of one or more home-rule municipalities.

Water districts are required to file certain information with the appropriate county clerk and with the Texas Commission on Environmental Quality (TCEQ), which has a list of water districts in Texas and other useful resources. Once the water district is identified, a seller can submit a written request for the right notice from the water district, which will provide the notice filled in with all the required information. The district may charge a fee for mailing the notice or allowing the requester to pick it up in person, but it cannot be more than $10. However, an alternative or faster method of delivery may require an additional fee.

Get more answers to legal questions on texasrealestate.com.

Categories: Legal
Tags: legal faq, forms, sellers, water district


Comments

Laura M Martin on 11/10/2016

The tax rate information can usually be found with the rest of the county taxing information. It is public information. Not all GCD’s provide a Notice of Purchaser, only a Notice of the Tax Rate. You should check with the County Appraisal District first.

Guy E. Gimenez Broker/Investor on 12/08/2014

A MUD is not the same as a WCID.  You should be able to ask your title company for a copy of the Conservation District, WCID, MUD or other required notice since these are generally filed in the public records per statute.  However, smaller districts are not aware of the requirement that these forms be filed of record so you may need to do your own search online and contact the District yourself, as I just had to do for a rural district. 

Attach the Notice to the seller’s disclosure to make sure you get it signed prior to execution of the contract.

Gail Akromis on 12/08/2014

If a property is in a WCID do you use the appropriate MUD form to give notice to the buyer?

Guy E. Gimenez Broker/Investor on 11/29/2014

I don’t allow my agents to complete anything in the form outside the legal description as all other information in the form is the responsibility of the district and should be completed by the district prior to recording the document.

I agree having 3 forms is confusing, but since neither the seller or agent can be held liable for damages if the wrong form is used or for failing to provide the form when the form is not filed of record, it makes the liability issue less troublesome for brokers.

Claude Humbert on 11/29/2014

I have always wondered why we need 3 different forms. It should be relatively easy to combine these 3 documents, which are for the most part identical. Too many agents are using the wrong form. This would not eliminate the errors on the form; however, it may mitigate the risk of errors as they may have to think about the proper answer or box to fill in!

Judy McKee on 11/20/2014

Excellent! Thank you for reviewing.  Article is much more informative. We have to disclose all whether law requires it or not!

Editorial Staff on 11/20/2014

Your comments and calls prompted further review of this topic by the TAR Legal Department. As a result, the answer to the above question has been updated to better reflect the language in the Texas Water Code.

Liz Newell on 11/20/2014

It was my understanding that you MUST let the buyer know if the property is located in a water district. If they have not been notified that they can get out of the contract even after it has closed. If I am representing the Seller, I attach it to the Sellers Disclosure. If I don’t have the document from the Water Distract by the time we hit the market I attach the Notice to Purchaser form.

Shawn Gray on 11/18/2014

I’ve always wondered about this.  In my area, our water districts are taxing entities.  Why do we have to provide a special notice for this but not other taxing entities where the property is located like the county, the city, emergency service districts, colleges, etc??? 
Also, one of the districts provided a form to use but another one declined and just emailed their tax rate.

Guy E. Gimenez Broker/Investor on 11/18/2014

I contacted TAR Legal as soon as I read it this morning as I believe the wording they used is confusing.

The statute seems unambiguous in that if the district is properly formed and the either taxes or charges a fee, and the conveyance is not otherwise exempted per statute, then the notice must be provided.

Judy McKee on 11/18/2014

Even if state law does not require us to disclose or the seller to disclose, Fiduciary duties require total disclosure of everything known to the Agent and Seller.
Why do you always advise the membership they do not have to do something when Fiduciary Duties and the Code of Ethics go beyond the law.
Please consider this in future articles.

Mark Butterfield on 11/18/2014

Is this new “However, if the property is located within a district that doesn’t charge a fee, the seller is not required to provide a water-district notice to a buyer.” ?  I remember several Realtors and sellers got sued and lost when WCID #17 started charging a fee back in the early 1990’s.


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Legal disclaimer

The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

While the Texas Association of REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, the Texas Association of REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on texasrealestate.com. Any legal or other information found here, on texasrealestate.com, or at other sites to which we link, should be verified before it is relied upon.

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