Exemption of certain water rights transfers from real property disclosure requirements in Texas.

Texas SB2550 amends the Natural Resources Code and Water Code to exempt transfers of certain water rights from disclosure requirements applicable to real property transfers. Specifically, it exempts transfers of groundwater, surface water, mineral, leasehold, or security interests from these requirements. The bill also mandates notices in executory contracts for property sales, particularly for properties adjoining tidal waters, warning of potential economic risks and legal obligations related to public easements and shoreline erosion. The act takes effect September 1, 2025.

Exemption of certain water rights transfers from real property disclosure requirements in Texas.

Texas SB2550 amends the Natural Resources Code and Water Code to exempt transfers of certain water rights from disclosure requirements applicable to real property transfers. Specifically, it exempts transfers of groundwater, surface water, mineral, leasehold, or security interests from these requirements. The bill also mandates notices in executory contracts for property sales, particularly for properties adjoining tidal waters, warning of potential economic risks and legal obligations related to public easements and shoreline erosion. The act takes effect September 1, 2025.