Tex. Prop. Code Section 5.010
Notice of Additional Tax Liability

(a)

A person who is the owner of an interest in vacant land and who contracts for the transfer of that interest shall include in the contract the following bold-faced notice:
If for the current ad valorem tax year the taxable value of the land that is the subject of this contract is determined by a special appraisal method that allows for appraisal of the land at less than its market value, the person to whom the land is transferred may not be allowed to qualify the land for that special appraisal in a subsequent tax year and the land may then be appraised at its full market value. In addition, the transfer of the land or a subsequent change in the use of the land may result in the imposition of an additional tax plus interest as a penalty for the transfer or the change in the use of the land. The taxable value of the land and the applicable method of appraisal for the current tax year is public information and may be obtained from the tax appraisal district established for the county in which the land is located.

(b)

This section does not apply to a contract for a transfer:

(1)

under a court order or foreclosure sale;

(2)

by a trustee in bankruptcy;

(3)

to a mortgagee by a mortgagor or successor in interest or to a beneficiary of a deed of trust by a trustor or successor in interest;

(4)

by a mortgagee or a beneficiary under a deed of trust who has acquired the land at a sale conducted under a power of sale under a deed of trust or a sale under a court-ordered foreclosure or has acquired the land by a deed in lieu of foreclosure;

(5)

by a fiduciary in the course of the administration of a decedent’s estate, guardianship, conservatorship, or trust;

(6)

of only a mineral interest, leasehold interest, or security interest; or

(7)

to or from a governmental entity.

(c)

The notice described by Subsection (a) is not required to be included in a contract for transfer of an interest in land if every transferee under the contract is:

(1)

a person who is a co-owner with an owner described by Subsection (a) of an undivided interest in the land; or

(2)

a spouse or a person in the lineal line of consanguinity of an owner described by Subsection (a).

(d)

The notice described by Subsection (a) is not required to be given if in a separate paragraph of the contract the contract expressly provides for the payment of any additional ad valorem taxes and interest that become due as a penalty because of:

(1)

the transfer of the land; or

(2)

a subsequent change in the use of the land.

(e)

If the owner fails to include in the contract the notice described by Subsection (a), the person to whom the land is transferred is entitled to recover from that owner an amount equal to the amount of any additional taxes and interest that the person is required to pay as a penalty because of:

(1)

the transfer of the land; or

(2)

a subsequent change in the use of the land that occurs before the fifth anniversary of the date of the transfer.
Added by Acts 1997, 75th Leg., ch. 174, Sec. 1, eff. Jan. 1, 1998.

Source: Section 5.010 — Notice of Additional Tax Liability, https://statutes.­capitol.­texas.­gov/Docs/PR/htm/PR.­5.­htm#5.­010 (accessed Jun. 5, 2024).

5.001
Fee Simple 5.002
Failing as a Conveyance 5.003
Partial Conveyance 5.004
Conveyance by Authorized Officer 5.005
Aliens 5.006
Attorney’s Fees in Breach of Restrictive Covenant Action 5.007
Vendor and Purchaser Risk Act 5.008
Seller’s Disclosure of Property Condition 5.009
Duties of Life Tenant 5.010
Notice of Additional Tax Liability 5.011
Seller’s Disclosure Regarding Potential Annexation 5.012
Notice of Obligations Related to Membership in Property Owners’ Association 5.013
Seller’s Disclosure of Location of Conditions Under Surface of Unimproved Real Property 5.014
Notice of Obligations Related to Public Improvement District 5.015
Prohibited Fees 5.016
Conveyance of Residential Property Encumbered by Lien 5.019
Notice of Water Level Fluctuations 5.020
Easements Restricting Possession of Firearms or Alcoholic Beverages Prohibited 5.021
Instrument of Conveyance 5.022
Form 5.023
Implied Covenants 5.024
Encumbrances 5.025
Wood Shingle Roof 5.026
Discriminatory Provisions 5.027
Correction Instruments: Generally 5.028
Correction Instruments: Nonmaterial Corrections 5.029
Correction Instruments: Material Corrections 5.030
Correction Instrument: Effect 5.041
Future Estates 5.042
Abolition of Common-law Rules 5.043
Reformation of Interests Violating Rule Against Perpetuities 5.061
Definition 5.062
Applicability 5.063
Notice 5.064
Seller’s Remedies on Default 5.065
Right to Cure Default 5.066
Equity Protection 5.067
Placement of Lien for Utility Service 5.068
Foreign Language Requirement 5.069
Seller’s Disclosure of Property Condition 5.070
Seller’s Disclosure of Tax Payments and Insurance Coverage 5.071
Seller’s Disclosure of Financing Terms 5.072
Oral Agreements Prohibited 5.073
Contract Terms, Certain Waivers Prohibited 5.074
Purchaser’s Right to Cancel Contract Without Cause 5.076
Recording Requirements 5.077
Annual Accounting Statement 5.078
Disposition of Insurance Proceeds 5.079
Title Transfer 5.080
Liability for Disclosures 5.081
Right to Convert Contract 5.082
Request for Balance and Trustee 5.083
Right to Cancel Contract for Improper Platting 5.084
Right to Deduct 5.085
Fee Simple Title Required 5.087
Additional Provisions: Certain Counties 5.0141
Notice Required Before Contract Execution 5.0142
Purchaser Signature Required 5.0143
Recording of Notice at Closing 5.0144
Reliance on Filed Service Plan 5.0145
Suits for Damages 5.151
Disclosure in Offer to Purchase Mineral Interest 5.152
Certain Purchases of Mineral or Royalty Interests Void 5.201
Definitions 5.202
Certain Private Transfer Fee Obligations Void 5.203
Notice Requirements for Continuation of Existing Private Transfer Fee Obligations 5.204
Additional Compliance Requirement: Timely Acceptance of Fees Paid Under Existing Private Transfer Fee Obligations 5.0205
Equitable Interest Disclosure 5.205
Disclosure of Existing Transfer Fee Obligation Required in Contract for Sale 5.206
Waiver Void 5.207
Injunctive or Declaratory Relief 5.0261
Removal of Discriminatory Provision from Recorded Conveyance Instrument 5.0621
Construction with Other Law 5.0622
Additional Applicability: Certain Counties
Green check means up to date. Up to date

Accessed:
Jun. 5, 2024

§ 5.010’s source at texas​.gov