Mud Disclosure Notice For
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How to fill out Texas Notice To Purchasers?
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FAQ
The seller is required by the Texas Water Code to provide a buyer a notice to purchasers indicating that property is located within a MUD prior to the buyer entering into a sales contract. The notice must provide information regarding the tax rate, bonded indebtedness, and fees, if any, of the MUD.
The seller is required by the Texas Water Code to provide a buyer a notice to purchasers indicating that property is located within a MUD prior to the buyer entering into a sales contract.
Ing to Texas House Bill 2815 which became effective on June 18, 2023, the law covering notice required to a purchaser of property in a MUD changed. This change to the law made form 400 obsolete and no longer useable under the new law and its notice provision.
A Municipal Utility District (MUD) is one of several types of special districts that function as independent, limited governments. The purpose of a MUD is to provide a developer an alternate way to finance infrastructure, such as water, sewer, drainage, and road facilities.
What are MUD taxes? Municipal Utility Districts are funded through bonds. Homeowners then pay off those bonds through MUD tax. As the debt decreases, MUD taxes may also decrease over time.