Addendum

TREC 53-0 — Addendum Containing Notice of Obligation to Pay Improvement District Assessment

This addendum provides mandatory written notice to a buyer that the property being purchased is located within a Public Improvement District (PID) and that the buyer will be obligated to pay assessments levied against the property for authorized public improvements. It identifies the specific distri

Source: TREC
Form Number: 53-0
Category: Addendum
Revised: November 8, 2021

Used For

Residential Sales, Farm & Ranch, Vacant Land

Form Outline

The TREC 53-0 form is organized into the following sections:

  1. Header and District Identification
    The header identifies the municipality or county levying the PID assessment and the property address. This ties the notice to a specific governmental authority and a specific property.
  2. Notice of Assessment Obligation
    The core notice provision informs the buyer of their obligation to pay assessments for authorized public improvements within the named PID. It identifies the district name and the enabling statute under which the district was created.
  3. Assessment Payment Warning
    A prominent warning that the property has a levied assessment that may be paid in full or in variable annual installments. The annual amounts fluctuate based on interest, collection costs, administrative costs, and delinquency costs.
  4. Assessment Amount and Information Sources
    Directs the buyer to the appropriate governmental entities to obtain the exact assessment amount, learn about annual installments approved through the service plan, and get further information about assessment amounts and due dates.
  5. Penalty and Foreclosure Warning
    A warning that nonpayment of PID assessments or installments can trigger penalties, interest, liens, and ultimately foreclosure of the property. This underscores the serious financial consequences of failing to pay.
  6. Seller Signature
    The seller signs and dates the addendum to provide the required notice to the buyer. Two signature lines accommodate joint sellers.
  7. Buyer Acknowledgment of Receipt
    The buyer signs to acknowledge they received this PID notice before the effective date of the binding contract. This acknowledgment is a legal requirement and protects the seller from claims of non-disclosure.

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