Groundwater Conversation Districts

There are almost 100 groundwater conservation districts (GCDs) in Texas, covering 70% of the state, and more are created during each legislative session. GCDs are created in areas where groundwater conservation and protection are deemed necessary.

How do GCDs affect my clients’ properties?

GCD rules that cover your clients' communities may affect the transfer of property with existing wells, encumber a property owner with fees for well production if they produce more than a specific amount of water, or place a restriction on the construction of a new well on a property.

How do I know if my client is in a groundwater conservation district?

Take a look a this map that the Texas Water Development Board publishes of all the GCDs in Texas.

Where can I find the GCD’s rules?

Visit the Texas Water Development Board’s website and look on the right side of the page for links to “District Information” listed alphabetically. Once you find the district, you’ll see links to the legislation that created it, contact information, a website, and the current rules. Some districts may have “presently unavailable” listed under the rules section, which could mean that there aren’t any rules in place and you or your clients may have a chance to influence the development of them. There are no uniform rules for GCDs; each one creates its own rules.

To learn more about how to deal with the rules of GCDs, contact the Texas Association of REALTORS® Legal Hotline at 800-873-9155.

Question: Does the order in which buyers and sellers sign the Lead-Based Paint Addendum matter??

The order in which a buyer and a seller sign the addendum for lead-based paint does matter. The seller must sign first because the seller provides information to the buyer regarding any known lead-based paint and/or lead-based paint hazards, as well as any records and reports pertaining to lead-based paint and/or lead-based paint hazards. The prospective buyer must have this information when deciding whether to conduct a risk assessment or inspection for the presence of lead-based paint or lead-based paint hazards. Note that the disclosure must be made before any contract is executed.

Question: Is a buyers' rebate legal?

TREC rules state that a buyers' agent may rebate a portion of his/her commission to the buyer so long as that rebate is disclosed on the HUD-1 form. Failure to disclose a payment to the buyer on the settlement statement can constitute a “false statement to the lender,” which is a federal crime. Generally speaking, a licensee may rebate a portion of his/her commission to a party in a real estate transaction. Note that if a licensee offers a rebate to a party that the licensee does not represent, the licensee must obtain the consent of the party represented by the licensee prior to making the payment.