Texas House bill would require disclosure of flood issues in real estate sales

HB 3815 by Rep. Geanie Morrison (R-Victoria) and Sen. Paul Bettencourt (R-Houston) amends the property code to require the disclosure of a real estate property's condition by a seller to the purchaser of the property, including notice of whether the property has flood insurance coverage or has had previous flooding due to a reservoir breach, failure or release, or to a natural flood.

The disclosure must also include whether the seller:

• Is aware if the property is located in a floodplain, floodway, flood pool, or reservoir;
• Has ever filed a flood damage insurance claim on the property; or
• Has ever received assistance from FEMA or the U.S. Small Business Administration for flood damage to the property.

The bill was passed by the House 145–1, has been reported favorably from the Senate Business and Commerce Committee, and is set for consideration by the Senate.

Contact Jeff Huffman, Texas Credit Union Association, at 469-385-6488 or [email protected] for more information.