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Texas · Property Code §5.014Texas PID notice (public improvement district)

If a Texas property is in a public improvement district (PID), the seller must give the buyer a signed notice of the obligation to pay the PID assessment before a binding contract is executed (Property Code §5.014–5.0141; TREC 53-0). If the contract is signed without it, the buyer may terminate for any reason until the 7th day after receiving the notice – provided the city or county filed the service plan before the contract. A buyer who receives it late and closes anyway waives the right. A current copy is signed and recorded at closing.

What the notice says

  1. The assessment

    The buyer will owe assessments to the city or county for a public improvement or services project; the assessment may be paid in full at any time, otherwise in annual installments that vary from year to year.

  2. Where to get the amounts

    The exact amount comes from the city or county; each year's installment is approved in the district's annual service plan update.

  3. If unpaid

    Penalties and interest, a lien on the property and possibly foreclosure.

  4. Exempt transfers (§5.014(c))

    Court orders and foreclosures, bankruptcy trustees, transfers to lenders in default, fiduciaries, co-owners, spouses or lineal relatives, governments, and transfers of only water, mineral, leasehold or security interests.

Timing and consequences

  1. Before the contract (§5.0141(a))

    Given before execution of a binding contract – separately, or as an addendum or paragraph of the contract – and signed by the buyer (§5.0142).

  2. 7-day termination (§5.0141(b))

    Signed without it: the buyer may terminate for any reason no later than the 7th day after receiving the notice – only if the city or county filed the service plan with the county clerk before the contract.

  3. Closing anyway (§5.0141(c))

    If the seller furnishes it at or before closing and the buyer elects to close, the buyer is conclusively presumed to have waived the termination right and other remedies.

  4. Recorded (§5.0143)

    At closing a separate copy with current information is signed by seller and buyer, acknowledged and recorded in the county deed records.

What the TC tracks

  • Is the property in a PID? Check the tax certificate and the city or county's PID list before the offer.
  • The signed PID notice in the contract package – 20-19 ¶6E(7) points to §5.014.
  • If it arrives late: the 7-day window from receipt.
  • A current copy for signing and recording at closing.
  • MUDs use a different notice (Water Code §49.452).

Questions about the Texas PID notice

When must the PID notice be given in Texas?

Before the buyer signs a binding contract, separately or as part of the contract (Property Code §5.0141(a)).

How long does a buyer have to terminate without the PID notice?

Until the 7th day after receiving the notice, if the service plan was filed with the county clerk before the contract was signed.

Can a PID assessment be paid off?

Yes. The notice states the assessment may be paid in full at any time; otherwise it is paid in annual installments.

Is the PID notice recorded?

Yes. A current copy is signed, acknowledged and recorded in the county deed records at closing.

What is the difference between a PID and a MUD?

A PID levies assessments under the Local Government Code (notice under Property Code §5.014); a MUD is a water district that levies taxes (notice under Water Code §49.452).

Texas guides

Add the PID notice to the deal's document checklist in ClosingCode, and track the 7-day window as a dated task if it arrives late.

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Sources: Texas Property Code §§5.014, 5.0141, 5.0142, 5.0143 (statutes.capitol.texas.gov, read October 24, 2026); TREC No. 53-0 (11-08-2021); TREC No. 20-19, ¶6E(7).

General information, not legal advice. ClosingCode is software; it is not a law firm or brokerage, and it is not affiliated with TREC.