HB 128 — Disclosures required to record certain contracts

90R233 SCR-D By: Holt H.B. No. 128 relating to disclosures required to record certain contracts for the conveyance of real property.

SECTION 1. Chapter 12, Property Code, is amended by adding Section 12.0014 to read as follows: Sec. 12.0014. DISCLOSURE REQUIREMENTS FOR CONTRACT FOR DEED RECORDATION. (a) In this section, "contract for deed" has the meaning assigned by Section 2306.004(3), Government Code. (b) A contract for deed may not be recorded unless it is accompanied by a completed notice of contract for deed on a form prescribed by the secretary of state under Subsection (d). For the purposes of this section, "completed notice" means that the form contains: (1) the name of the buyer and seller; (2) the address of the buyer and seller; and (3) the social security number or taxpayer identification number of the buyer and seller. (c) The notice of contract for deed form must be: (1) signed by the buyer and seller under oath; or (2) made by the buyer and seller as an unsworn declaration under Section 132.001, Civil Practice and Remedies Code. (d) The secretary of state by rule shall prescribe a form for the notice of contract for deed required by this section. (e) The form prescribed under Subsection (d) must include a place for the buyer and seller to state: (1) the address and a description of the real property to be conveyed under the contract for deed; (2) the full name, address, telephone number, citizenship status, and social security number or taxpayer identification number of the seller; (3) the full name, address, telephone number, citizenship status, and social security number or taxpayer identification number of the buyer; (4) the date the contract for deed was signed by the seller; (5) the county in which the contract was signed; (6) the name and mailing address of any lienholder and the date of lien, if applicable; (7) the purchase price and amount of any taxes paid, if applicable; (8) the signature of the buyer; (9) the signature of the seller; (10) the date the buyer and seller signed the form; and (11) an appropriate jurat. (f) The notice required by this section shall be retained by the county clerk separately from the real property records. Subject to Subsection (g), a notice filed under this section and information contained in the notice is confidential and not subject to disclosure under Chapter 552, Government Code. (g) On request of the attorney general, the county clerk shall disclose a notice filed under this section to the attorney general. A notice obtained by the attorney general under this section and information contained in the notice is confidential and not subject to disclosure under Chapter 552, Government Code. The notice and information may be used only for a governmental purpose.

SECTION 2. The changes in law made by this Act apply only to a contract that is filed for recording on or after January 1, 2028. A contract filed for recording before January 1, 2028, is governed by the law in effect immediately before the effective date of this Act, and that law is continued in effect for that purpose.

SECTION 3. Not later than December 31, 2027, the secretary of state shall adopt rules necessary for the implementation of Section 12.0014, Property Code, as added by this Act.

SECTION 4. This Act takes effect September 1, 2027.