HB2468

Regular Session

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.

CriticalImmediate action required

Low Cost

Effective:2025-06-20

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: June 20, 2025
Compliance Deadline: Immediate. The law applies to all binding contracts for the sale or conveyance of real property executed on or after June 20, 2025.
Agency Rulemaking: None. This is a self-executing change to the Texas Property Code. No state agency will issue guidance; interpretation will occur through civil litigation.

Immediate Action Plan

1. Issue a Legal Hold: Instruct closing teams to pause any processing of contract terminations based on "missing PID notices" for contracts signed after June 20, 2025.
2. Verify Filings: For every active PID in your portfolio, conduct a County Clerk search to determine if the municipality has properly filed the service plan. Map your risk exposure based on these filings.
3. Update Dispute Workflows: Amend your internal dispute resolution checklist to include a "County Filing Verification" step prior to releasing earnest money.
4. Review Legacy Contracts: Ensure your team distinguishes between contracts signed pre- and post-June 20, 2025. The grandfather clause preserves the buyer's absolute right to terminate on older contracts.

Operational Changes Required

Contracts

Purchase and Sale Agreements (PSAs): Standard PSA templates do not require text amendment. However, the enforcement logic has changed.
Dispute Resolution: If a buyer attempts to terminate under Section 5.0141 (failure to provide PID notice), you must immediately verify the county property records. If the service plan is unfiled, the termination is invalid, and the contract remains binding.

Hiring/Training

Sales & Closing Teams: Train staff that a "missed PID notice" is no longer an automatic "out" for the buyer. They must escalate these specific termination requests to Legal immediately.
Legal/Compliance: In-house counsel must be trained to audit County Clerk records for specific PID service plan filings under Local Government Code Section 372.013 before accepting a contract termination.

Reporting & Record-Keeping

Due Diligence Files: In the event of a dispute, the burden of proof is on the seller to demonstrate the government's failure to file. You must be prepared to produce a negative record search or a certification from the County Clerk that the service plan was not on file at the time of contract execution.
Continued Notice: Do not stop providing the PID notice. This law is a safety net, not a permission slip to ignore disclosure requirements.

Fees & Costs

No new fees.
Cost Savings: This legislation potentially saves significant revenue by preventing contract terminations based on technicalities outside the seller's control.

Strategic Ambiguities & Considerations

"Service Plan" Definition: The statute refers to the "service plan." PIDs often have an original service plan and annual updates (SAP updates). It is currently ambiguous whether a failure to file the *most recent annual update* triggers the seller's defense, or if the presence of the *original* plan is sufficient to allow the buyer to terminate.
*Guidance:* Until case law settles this, assume that if *any* valid service plan is on file, the buyer retains the right to terminate if you fail to provide notice.
Clerical Indexing Errors: The law protects sellers if the plan is not filed "in accordance with Section 372.013." If a plan was submitted but mis-indexed by the clerk, sellers should argue this constitutes a failure to file properly, thereby blocking the buyer's termination right.

Need Help Understanding Implementation?

Our government affairs experts can walk you through this bill's specific impact on your operations.

Schedule Consultation

Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

Legislative Timeline

This bill's path through the Texas Legislature

TopicsCity Government City Government--general County Government County Government--general Property Interests Property Interests--real Property Special Districts & Authorities Special Districts & Authorities--miscellaneous

Official Analysis

View HRO Analysis View All Bill Documents

BILL ANALYSIS

H.B. 2468

By: Harris

Trade, Workforce & Economic Development

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The 87th Legislature enacted legislation that created a notification process for the transfer of property located in public improvement districts. Among other provisions, this legislation provided for the unrestricted termination of a contract for such a property transfer if a sale is entered into without the seller providing notice regarding the property's location in a public improvement district. The bill author informed the committee that, while these changes brought welcomed transparency, there is no enforcement mechanism to ensure that the public improvement district service plan information is filed with the proper county clerk as required by law and that, if the information is not filed in the appropriate location and readily accessible, a purchaser of property should not be able to cancel the purchase agreement merely for the lack of a public improvement district location notification. H.B. 2468 seeks to remedy this situation by specifying that the right of a purchaser to terminate a contract of purchase and sale of real property if the seller fails to provide the requisite public improvement district location notice is an entitlement to terminate the contract for any reason, but not later than the seventh day after the date the purchaser receives the notice.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 2468 amends the Property Code to specify that the right of a purchaser to terminate a contract of purchase and sale of real property if the seller fails to provide notice that the property is located in a public improvement district is an entitlement to terminate the contract for any reason, but not later than the seventh day after the date the purchaser receives the notice. The bill authorizes the purchaser to terminate the contract under this provision only if the municipality or county filed a copy of the service plan in connection with the improvement with the county clerk in accordance with Local Government Code requirements before the date the contract was entered into. The bill applies only to a sale or conveyance of property for which a binding contract is executed on or after the bill's effective date. A sale or conveyance for which a binding contract is executed before the bill's effective date is governed by the law in effect on the date the contract is executed, and the former law is continued in effect for that purpose.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2025.

House Authors

Rep. Cody HarrisRepublican · Primary Author

Coauthors (1)

Penny Morales Shaw (D)

Senate Sponsor

Sen. Tan ParkerRepublican · Primary Sponsor

Bill Text(with markup)

H.B. No. 2468

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	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.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Section 5.0141(b), Property Code, is amended to
	read as follows:
	(b) In the event a contract of purchase and sale is entered
	into without the seller providing the notice, the purchaser is
	entitled to terminate the contract for any reason, not later than
	the seventh day after the date the purchaser receives the notice. A
	purchaser may terminate the contract under this subsection only if
	the municipality or county filed a copy of the service plan with the
	county clerk in accordance with Section 372.013, Local Government
	Code, before the date the contract was entered into.
	SECTION 2. Section 5.0141, Property Code, as amended by
	this Act, applies only to a sale or conveyance of property for which
	a binding contract is executed on or after the effective date of
	this Act. A sale or conveyance for which a binding contract is
	executed before the effective date of this Act is governed by the
	law in effect on the date the contract is executed, and the former
	law is continued in effect for that purpose.
	SECTION 3. This Act takes effect immediately if it receives
	a vote of two-thirds of all the members elected to each house, as
	provided by Section 39, Article III, Texas Constitution. If this
	Act does not receive the vote necessary for immediate effect, this
	Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


March 24, 2025

TO:	Honorable Angie Chen Button, Chair, House Committee on Trade, Workforce & Economic Development

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	HB2468 by Harris (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.), As Introduced

No significant fiscal implication to the State is anticipated.

It is assumed that any costs associated with the bill could be absorbed using existing resources.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

LBB Staff:

JMc, RStu, CMA

Related Legislation

Explore more bills from this author and on related topics

Frequently Asked Questions

Common questions about HB2468

What does Texas HB2468 do?

Effective immediately, HB2468 restricts a purchaser's statutory right to terminate a real estate contract due to a failure to receive Public Improvement District (PID) notice. Specifically, a buyer may not terminate the contract for lack of notice if the municipality or county failed to properly file the PID service plan with the county clerk. This legislation shifts the risk of administrative errors from the seller to the local government, providing a critical defense against contract rescission.

Who authored HB2468?

HB2468 was authored by Texas Representative Cody Harris during the Regular Session.

When was HB2468 signed into law?

HB2468 was signed into law by Governor Greg Abbott on June 20, 2025.

How urgent is compliance with HB2468?

The compliance urgency for HB2468 is rated as "critical". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of HB2468?

The cost impact of HB2468 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does HB2468 address?

HB2468 addresses topics including city government, city government--general, county government, county government--general and property interests.

Legislative data provided by LegiScanLast updated: November 25, 2025

Need Strategic Guidance on This Bill?

Need help with Government Relations, Lobbying, or compliance? JD Key Consulting has the expertise you're looking for.