Addendum Containing Notice of Obligation to Pay Improvement District Assessment
With many changes to the TREC sales contracts over last year, TREC decided that a new form would be developed as a disclosure for sellers when selling a property located in a Public Improvement District (PID). As of September 1, 2021, sellers are required to complete the disclosure form which is titled, Addendum Containing Notice of Obligation to Pay Improvement District Assessment.
The TREC Sales contracts reference this requirement in the following paragraphs:
Paragraph 6 (7): Addresses if the property is in a public improvement district, the seller must provide notice and attach the new addendum
Paragraph 22: Reflects the new addendum being added
Click here to access the PID form.
Information required on the PID form:
* Property Address
* Name of Public Improvement District:
Existing Properties: MLS (Taxing Jurisdiction) tab for specific property, County Appraisal District (CAD), website of city and county property located and or the seller’s property tax bill
New Construction: Builder
* Name of the municipality or county that approves and levies the assessment:
PID website for city or county that authorizes and levies the assessment, MLS or CAD website may have link or internet search
* Statue where the PID was created under (Chapter 372 or Chapter 382)
The Texas REALTORS® Legal staff created a memo that gets into more specifics about:
- Notice requirements
- Penalties for failing to provide notice
- Properly filling out the notice form
- Determining if a property is part of a public improvement district
- Exemptions to the notice requirements
- Limits of liability.