Skip to content
ClosingCodeClosingCode
ENES

Texas · Water Code §13.257Texas water or sewer service area notice (Water Code §13.257)

A Texas seller of property in a certificated water or sewer service area of a utility service provider must give the buyer the statutory notice before a binding contract: there may be special costs or charges and a construction period before the property can get water or sewer service (Water Code §13.257). The buyer signs the notice or the contract that includes it – the TREC contract carries it in ¶6E(6). At closing a separate copy with current information is signed by seller and buyer, acknowledged and recorded. Without the notice the buyer may terminate.

The rules

  1. Before the contract (§13.257(e))

    Given before a binding contract of purchase and sale – separately or as an addendum or paragraph of the contract.

  2. Buyer signs (f)

    The buyer signs the notice, or the contract that includes it, as evidence of receipt.

  3. At closing (g)

    A separate copy with current information is executed by seller and buyer, acknowledged and recorded in the county real property records.

  4. Missing notice (e)

    The buyer may terminate. If the notice comes at or before closing and the buyer closes anyway, the right to terminate and other remedies are waived.

Exempt transfers (§13.257(c))

  • Foreclosure and deed in lieu, wills and probate, bankruptcy trustees, government.
  • Property inside city limits served by a city-owned utility, or already receiving water or sewer service from a utility on the transfer date.
  • Co-owners, spouses and lineal relatives; water, mineral, leasehold or security interests only.

What the TC tracks

  • Whether the property is in a certificated area and already served.
  • Notice signed with the contract (¶6E(6) of the TREC contract).
  • The separate notice for recording prepared with the title company for closing.

Questions about the Texas service area notice

What is a certificated service area notice in Texas?

The Water Code §13.257 notice that a property may be in an area where a utility is authorized to provide water or sewer service, with possible special costs and construction time.

Is the §13.257 notice recorded?

Yes. At closing a separate copy with current information is signed by seller and buyer, acknowledged and recorded in the county records (§13.257(g)).

What if the seller does not give the notice?

The buyer may terminate the contract; closing after a late notice waives that right (§13.257(e)).

Is the notice needed if the house already has water service?

No. Property that receives water or sewer service from a utility on the transfer date is exempt (§13.257(c)(6)).

Related guides

Add the service area notice and the recorded closing copy as tasks with owners and due dates in ClosingCode.

Start free trial

Source: Texas Water Code §13.257 (statutes.capitol.texas.gov) and TREC 20-19 ¶6E(6), read October 25, 2026.

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