If a property is within a Municipal Utility District, what disclosure is required before the contract?

When a property is located within a Municipal Utility District (MUD), it is crucial for sellers to provide potential buyers with a disclosure known as the Statutory Tax District Notice. This notice is required because the presence of a MUD often means that additional taxes will be levied on property owners within that district. These taxes help finance the infrastructure and services provided by the MUD, which can include water supply, sewage treatment, drainage, and other essential services.

The Statutory Tax District Notice serves to inform potential buyers about the existence of the MUD and the associated tax implications. This disclosure is important as it allows buyers to be aware of ongoing costs that could impact their financial obligations if they choose to purchase the property. By making these details clear, the disclosure helps ensure transparency in the transaction and prevents surprises regarding property taxes after the purchase.

The other options, while they may pertain to various aspects of real estate transactions, do not specifically address the unique considerations associated with properties in a MUD. Therefore, the requirement for the Statutory Tax District Notice is a critical component of the due diligence process for buyers considering properties within these districts.