A Public Improvement District (PID) assessment is easy to confuse with an HOA due or a MUD tax, and buyers are routinely surprised by it at closing or, worse, on their first property tax statement after moving in. It isn't either of those things. A PID is created by a municipality or county under Local Government Code Chapter 372 (or Chapter 382) to fund public improvements — streets, landscaping, parks — and the resulting assessment attaches to the property as a lien, collected like a tax rather than owed like a contractual due. An HOA due is a private, contractual obligation created by restrictive covenant, with no government taxing authority behind it. A MUD tax is a separate ad valorem property tax levied by a water district under the Water Code to repay infrastructure bonds. All three show up as a recurring cost tied to the property, but they're legally distinct, created under different statutes, and disclosed under different rules.
This guide covers the PID-specific disclosure requirement itself — when the notice has to go out and what happens if it doesn't — which is a different question from which TREC form to use. (For the form-selection question — TREC 53-0 vs. 59-0 vs. 58-0 — see the companion guide linked below.)
What the notice has to contain — Property Code §5.014
For property in a PID under Local Government Code Chapter 372 or 382, §5.014 of the Property Code requires a written notice stating that an assessment has been levied against the property for the authorized improvements, that it may be paid in full at any time, and that if it isn't paid in full it becomes annual installments that vary year to year with interest, collection, administrative, and delinquency costs. The notice also has to warn that nonpayment can lead to penalties, interest, a lien, and foreclosure. The purchaser signs acknowledging receipt before the contract's binding effective date. (This is the same substantive language TREC Form 53-0 exists to deliver — 53-0 is simply the promulgated form built to satisfy this exact statute.)
Section 5.014(c) exempts several transaction types from the notice requirement entirely: foreclosure or court-ordered sales, bankruptcy-trustee transfers, a mortgagee or beneficiary acquiring under a deed of trust, fiduciary transfers of an estate or trust, transfers between co-owners, transfers to a spouse or a relative within the second degree of consanguinity, transfers to or from a governmental entity, and transfers of only a mineral, royalty, leasehold, or security interest.
When it's due, and what happens if it's late — Property Code §5.0141
Section 5.0141 sets the delivery deadline: the notice has to reach the prospective purchaser before the execution of a binding contract, either as its own document or folded into the purchase contract as an addendum or paragraph. If a contract gets signed without it, the purchaser has a statutory right to terminate.
What that termination right looks like changed in 2025. House Bill 2468, from the 89th Texas Legislature's regular session — not to be confused with an unrelated, differently-numbered HB 2468 from an earlier session on a completely different subject — amended §5.0141(b) to put a specific clock on it. The bill was filed February 5, 2025, passed both chambers with no recorded committee opposition, and was signed into law effective immediately on June 20, 2025. It applies only to contracts signed on or after that date; earlier contracts stay under the prior version of the statute.
Under current law, §5.0141(b) reads: "In the event a contract of purchase and sale is entered into without the seller providing the notice, the purchaser is entitled to terminate the contract for any reason, not later than the seventh day after the date the purchaser receives the notice. A purchaser may terminate the contract under this subsection only if the municipality or county filed a copy of the service plan with the county clerk in accordance with Section 372.013, Local Government Code, before the date the contract was entered into." Before HB 2468, that termination right existed but carried no stated deadline of its own — it stayed open indefinitely until the buyer acted on it. The 2025 change gives both sides a defined window: once the late notice actually reaches the purchaser, the clock is running, and it closes after seven days. That's a similar shape to the familiar 7-day termination right buyers already know from the Seller's Disclosure Notice under §5.008(f) — a different statute entirely, but the same for-any-reason, receipt-triggered structure.
Two more pieces of §5.0141 round out the mechanics. First, a waiver rule: if the seller furnishes the notice at or before closing and the purchaser goes ahead and closes anyway despite it not being timely delivered before contract execution, the purchaser is conclusively presumed to have waived the right to terminate. Second, a liability shield: sellers, title companies, real estate brokers, and examining attorneys aren't liable for damages if the municipality or county never filed the required service plan with the county clerk under Local Government Code §372.013, or if an otherwise-correct notice was unintentionally wrong.
The practical takeaway
If a property sits in a PID, the notice isn't optional paperwork to clean up at closing — it has a hard delivery deadline (before the contract is signed), a defined consequence if it's missed (a 7-day termination right once the buyer actually gets it), and a waiver trap if the buyer closes anyway after getting a late notice. Getting the disclosure out before the contract goes binding is the only way to avoid all three of those consequences at once.