Sec. 212.155.  NOTICE TO PURCHASERS.  (a)  The governing body of the municipality may require, in the manner prescribed by law for official action of the municipality, any person who sells or conveys restricted property located inside the boundaries of the municipality to first give to the purchaser written notice of the restrictions and notice of the municipality's right to enforce compliance.
(b)  If the municipality elects under this section to require that notice be given, the notice to the purchaser shall contain the following information:
(1)  the name of each purchaser;
(2)  the name of each seller;
(3)  a legal description of the property;
(4)  the street address of the property;
(5)  a statement that the property is subject to deed restrictions and the municipality is authorized to enforce the restrictions;
(6)  a reference to the volume and page, clerk's file number, or film code number where the restrictions are recorded;  and
(7)  a statement that provisions that restrict the sale, rental, or use of the real property on the basis of race, color, religion, sex, or national origin are unenforceable.
(c)  If the municipality elects under this section to require that notice be given, the following procedure shall be followed to ensure the delivery and recordation of the notice:
(1)  the notice shall be given to the purchaser at or before the final closing of the sale and purchase;
(2)  the seller and purchaser shall sign and acknowledge the notice;  and
(3)  following the execution, acknowledgment, and closing of the sale and purchase, the notice shall be recorded in the real property records of the county in which the property is located.
(d)  If the municipality elects under this section to require that notice be given:
(1)  the municipality shall file in the real property records of the county clerk's office in each county in which the municipality is located a copy of the form of notice, with its effective date, that is prescribed for use by any person who sells or conveys restricted property located inside the boundaries of the municipality;
(2)  all sellers and all persons completing the prescribed notice on the seller's behalf are entitled to rely on the currently effective form filed by the municipality;
(3)  the municipality may prescribe a penalty against a seller, not to exceed $500, for the failure of the seller to obtain the execution and recordation of the notice;  and
(4)  an action may not be maintained by the municipality against a seller to collect a penalty for the failure to obtain the execution and recordation of the notice if the municipality has not filed for record the form of notice with the county clerk of the appropriate county.
(e)  This section does not limit the seller's right to recover a penalty, or any part of a penalty, imposed pursuant to Subsection (d)(3) from a third party for the negligent failure to obtain the execution or proper recordation of the notice.
(f)  The failure of the seller to comply with the requirements of this section and the implementing municipal regulation does not affect the validity or enforceability of the sale or conveyance of restricted property or the validity or enforceability of restrictions covering the property.
(g)  For the purposes of this section, an executory contract of purchase and sale having a performance period of more than six months is considered a sale under Subsection (a).
(h)  For the purposes of the disclosure required by this section, restrictions may not include provisions that restrict the sale, rental, or use of property on the basis of race, color, religion, sex, or national origin and may not include any restrictions that by their express provisions have terminated.
Added by Acts 1989, 71st Leg., ch. 446, Sec. 1, eff. June 14, 1989.  Renumbered from Local Government Code Sec. 230.005 by Acts 2001, 77th Leg., ch. 1420, Sec. 12.002(1), eff. Sept. 1, 2001.  Renumbered from Local Government Code Sec. 212.135 by Acts 2003, 78th Leg., ch. 1275, Sec. 2(107), eff. Sept. 1, 2003.