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Bill

SB 1107

Relating to the right of a purchaser to terminate a contract of purchase and sale of real property for failure to provide notice that the property is located in a public improvement district.

89th Legislature (2025) Introduced by Tan Parker

Allows Texas homebuyers to terminate real estate contracts if sellers don't disclose the property is in a public improvement district that levies special assessments.

Referred to Business & Commerce
#citygovernment--general(i0060) #countygovernment--general(i0096) #propertyinterests--realproperty(i0595) #specialdistricts&authorities--miscellaneous(i0770)
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WeVote Research Nonpartisan
Bill Summary · SB 1107

Legislative bill overview

SB 1107 would establish a legal right for homebuyers to terminate real estate purchase contracts if sellers fail to disclose that the property is located within a public improvement district (PID). The bill aims to protect buyers from unexpected financial obligations tied to PID assessments that they may not have been aware of at purchase.

Why is this important

Public improvement districts levy special assessments on property owners for infrastructure improvements, which can significantly increase the cost of property ownership beyond the initial purchase price. Without proper notice, buyers could unknowingly commit to properties with hidden long-term financial obligations, making this disclosure requirement a consumer protection issue with direct financial implications.

Potential points of contention

  • Seller liability and timeline concerns: The bill may create ambiguity about when sellers must provide notice and what constitutes adequate disclosure, potentially leading to disputes about technical compliance versus actual knowledge transfer
  • Market impact and deal certainty: Providing an easy termination right could destabilize real estate transactions, allowing buyers to back out based on PID status, which may deter sellers from listing or complicate financing
  • PID assessment scope: Questions remain about whether this applies to all PIDs or only certain types, and whether buyers can still proceed after receiving notice versus having an unconditional termination right

Compiled from official sources — confirm details with the bill’s official record.

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