Just about anyone that has sold a home in Houston suburbia is familiar with Municipal Utility Districts (MUD) and the paperwork needed for buyers purchasing in that area. Sellers of a property in a MUD are required to include a statement about the potential for annexation of the property by a municipality or the potential for dissolution of the MUD.
The notices vary depending on the location of the property relative to city limits and boundaries of the city’s extraterritorial jurisdiction (ETJ) which generally expand beyond the actual city limits. These notice requirements are intended to inform property buyers in a MUD that they could be annexed if the property is located within the ETJ of a city, or the MUD could be dissolved if the property lay within city limits.
If you haven’t noticed, there are three different MUD forms. Confused about which one to use? You’re not alone. Check out a breakdown of each and sleep well knowing your paperwork is waterproof (get it?).
The 3 Forms
• HAR Form 400A – Applies to property located partially or wholly within the corporate limits of a municipality. The seller needs to provide notice that the MUD is subject to dissolution by the municipality without the consent of the property owners served by the MUD. If your property is located within the city limits, this is the form for you.
• HAR Form 400B – Applies to property located partially or wholly within the ETJ of a municipality but not within the municipal corporate limits. In this scenario the seller must provide notice that the property is subject to annexation by the municipality without the consent of the property owner. If your property is located outside of the incorporated city limits but inside the city’s ETJ, this is the form for you.
• HAR Form 400C – Applies to property located outside the limits of either a municipality or a municipal ETJ. The required notice does not need to include a statement concerning annexation or dissolution. If your property is located outside of city limits and beyond the city’s ETJ boundary, this is the form for you.
How to find MUD info
Determining if a property is located within city limits or a within city’s ETJ is the hardest part. HAR provides an “ETJ and City Limits Map” to help members better determine if a property lies within city limits or within a city’s ETJ. You can find this data by navigating the the MLS top toolbar and hovering over the Tax/Public Records tab.
Also, In the “MLS Links” section of the sidebar utility there is a link to the map and a link to the HAR Forms Manager where you can search, view and download water district notices and all other HAR, TAR and TREC forms.