A Municipal Utility District (MUD) is a political subdivision of the state that's authorized by the Texas Commission on Environmental Quality to provide water, sewage, drainage, and other services within its boundaries.
The seller is required by the Texas Water Code to provide a buyer a notice to purchasers indicating that property is located within a MUD prior to the buyer entering into a sales contract. The notice must provide information regarding the tax rate, bonded indebtedness, and fees, if any, of the MUD.
The 88th Texas legislature made changes that went into effect June 18, 2023, that modify the content of the notice to provide more clarity to purchasers. MUDs are also now required to make the notice available online.
Where Can I Obtain a Copy of the Notices?
You have a few options for obtaining copies of the notices. Beginning on June 18, 2023, MUDs were required to make the notice available on their websites. Additionally, MUDs are required to file these notices with their county property records office, so you may request a copy from the county. Lastly, the MUD is required to keep the correct notice on file and can provide a copy for an administrative fee not to exceed $10.
To look up a district's information, including the contact information for the district's agent, use TCEQ's online database of utility districts.
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When you list your home on the MLS with homecoin.com for a one-time fee of $95, we will upload your disclosures directly in your MLS listing, so you can easily comply with Texas law. Learn more about our flat fee MLS service here: https://homecoin.com/flat-fee-mls/texas