Subdividers must give Spanish copies of certain sale documents when required, provide a pre-signing property notice and yearly statements, and purchasers may deduct 15% from payments if the annual statement is not provided. Knowingly false advertising about subdivided land is an offense.
Sec. 232.217. ADVERTISING STANDARDS AND OTHER REQUIREMENTS BEFORE SALE; OFFENSE. (a) Brochures, publications, and advertising of any form relating to subdivided land: (1) may not contain any misrepresentation; and (2) except for a for-sale sign posted on the property that is no larger than three feet by three feet, must accurately describe the availability of water and sewer service facilities and electric and gas utilities. (b) The subdivider shall provide a copy in Spanish of all written documents relating to the sale of subdivided land under an executory contract, including the contract, disclosure notice, and annual statement required by this section and a notice of default required by Subchapter D, Chapter 5, Property Code, if: (1) negotiations that precede the execution of the executory contract are conducted primarily in Spanish; or (2) the purchaser requests the written documents to be provided in Spanish. (c) Before an executory contract is signed by the purchaser, the subdivider shall provide the purchaser with a written notice, which must be attached to the executory contract, informing the purchaser of the condition of the property that must, at a minimum, be executed by the subdivider and purchaser, be acknowledged, and contain language substantially similar to the following: IF ANY OF THE ITEMS BELOW HAVE NOT BEEN CHECKED, YOU MAY NOT BE ABLE TO LIVE ON THE PROPERTY. WARNING CONCERNING THE PROPERTY AT (street address or legal description and municipality) THIS DOCUMENT STATES THE TRUE FACTS ABOUT THE LAND YOU ARE CONSIDERING PURCHASING. CHECK OFF THE ITEMS THAT ARE TRUE: ___ The property is in a recorded subdivision. ___ The property has water service that provides potable water. ___ The property has sewer service or a septic system. ___ The property has electric service. ___ The property is not in a flood-prone area. ___ The roads are paved. ___ No person other than the subdivider: (1) owns the property; (2) has a claim of ownership to the property; or (3) has an interest in the property. ___ No person has a lien filed against the property. ___ There are no back taxes owed on the property. NOTICE SELLER ADVISES PURCHASER TO: (1) OBTAIN A TITLE ABSTRACT OR TITLE COMMITMENT REVIEWED BY AN ATTORNEY BEFORE SIGNING A CONTRACT OF THIS TYPE; AND (2) PURCHASE AN OWNER'S POLICY OF TITLE INSURANCE COVERING THE PROPERTY. _____________________________________________ (Date) (Signature of Subdivider) _____________________________________________ (Date) (Signature of Purchaser) (d) The subdivider shall provide any purchaser who is sold a lot under an executory contract with an annual statement in January of each year for the term of the executory contract. If the subdivider mails the statement to the purchaser, the statement must be postmarked not later than January 31. (e) The statement under Subsection (d) must include the following information: (1) the amount paid under the contract; (2) the remaining amount owed under the contract; (3) the annual interest rate charged under the contract during the preceding 12-month period; and (4) the number of payments remaining under the contract. (f) If the subdivider fails to comply with Subsections (d) and (e), the purchaser may: (1) notify the subdivider that the purchaser has not received the statement and will deduct 15 percent of each monthly payment due until the statement is received; and (2) not earlier than the 25th day after the date the purchaser provides the subdivider notice under this subsection, deduct 15 percent of each monthly payment due until the statement is received by the purchaser. (g) A purchaser who makes a deduction under Subsection (f) is not required to reimburse the subdivider for the amount deducted. (h) A person who is a seller of lots in a subdivision, or a subdivider or an agent of a seller or subdivider, commits an offense if the person knowingly authorizes or assists in the publication, advertising, distribution, or circulation of any statement or representation that the person knows is false concerning any subdivided land offered for sale or lease. An offense under this section is a Class A misdemeanor. (i) A person who holds a real estate broker's or sales agent's license under Chapter 1101, Occupations Code, acting in the person's capacity as a real estate broker or sales agent, other than a person who is a director, officer, or employee of the seller or subdivider or who is otherwise affiliated with the seller or subdivider, is not an agent of a seller or subdivider for purposes of this section. Added by Acts 2025, 89th Leg., R.S., Ch. 526 (H.B. 3680), Sec. 6, eff. September 1, 2025.