Mud Disclosure Notice Form Texas
Description
How to fill out Texas Notice To Purchasers?
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FAQ
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.
MUD: Municipal Utility District This same law states that the notice must be given to the buyer prior to the buyer entering into the contract OR as an addendum to the contract at the time the contract is negotiated. If the notice is not timely provided, the buyer can terminate the contract at any time.
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. The notice must provide information regarding the tax rate, bonded indebtedness, and fees, if any, of the MUD.
Unlike a MUD, a PID is not a political entity. Some developments use a PID instead of a HOA since PID assessments are tax deductible. Unlike tax rates for MUDs, these assessments are fixed once the bonds are sold. PIDs are funded through bonds secured by liens against the property.