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Texas · TREC 47-0Texas propane gas system service area notice (TREC 47-0)

If a Texas property may be in a propane gas system service area, the seller gives the buyer the notice required by Utilities Code §141.010 – TREC 47-0 – which warns that there may be special costs and a construction period before propane service is available. A copy of the notice the distribution system retailer recorded in the county records must be attached, and the buyer acknowledges receipt at or before signing the contract or at closing.

What the notice says

  1. The warning

    The property may be in a propane gas system service area authorized under Utilities Code chapter 141; there may be special costs or charges before service, and a period to build lines or facilities.

  2. Recorded notice attached

    Section 141.010(a) requires a copy of the notice the distribution system retailer recorded in the real property records; the seller can get it from the county clerk or the retailer.

  3. Acknowledgment

    The buyer acknowledges receipt at or before execution of a binding contract, or at closing.

  4. In the contract

    TREC 20-19 ¶6E(9) points to the same Utilities Code notice.

What the TC tracks

  • Whether the property is in a propane service area – ask early, especially for new subdivisions.
  • The recorded retailer notice attached to the addendum.
  • The buyer's signed acknowledgment in the file.

Questions about the Texas propane notice

When is TREC 47-0 used?

When the property may be located in a propane gas system service area under Utilities Code chapter 141.

What must be attached to the propane notice?

A copy of the notice the distribution system retailer recorded in the real property records (Utilities Code §141.010(a)).

When does the buyer sign the propane notice?

At or before execution of a binding contract, or at closing.

Where can the seller get the recorded notice?

From the county clerk's office where the property is located or from the distribution system retailer.

Is the propane notice the same as a fixture lease for a propane tank?

No. A leased tank is handled by the fixture lease addendum (TREC 52-1).

Texas forms

Add the propane notice and the recorded retailer notice to the deal's document checklist in ClosingCode.

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Sources: Texas Real Estate Commission, TREC No. 47-0 Addendum for Property in a Propane Gas System Service Area (2-10-2014); Texas Utilities Code §141.010 (as cited in the form); TREC No. 20-19 ¶6E(9).

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