When Is a MUD or CCN Notice Needed?
How to recognize when Texas utility or water-district notices may be required and where to obtain current information.
MUD notice: when to review it
If property is located in a Municipal Utility District (MUD), Texas REALTORS® explains that the seller is required by the Texas Water Code to provide the buyer the applicable MUD notice before the buyer enters into the sales contract. The notice contains district information such as the tax rate, bonded indebtedness, and any standby fee.
How to find the current MUD notice
1. Check whether a MUD serves the property
The MUD assessment may appear on the property tax bill. Confirm the actual district rather than relying on an old transaction file.
2. Locate the district contact
Texas REALTORS® directs agents to the Texas Commission on Environmental Quality water-district search to locate district contact information.
3. Obtain the current Notice to Purchasers
Contact the MUD’s agent for the current notice. Texas Water Code §49.455(b)(9) requires MUDs to file their completed notice form in the county property records.
4. Deliver it before contract execution
Keep evidence showing the buyer received the applicable notice before entering into the sales contract.
CCN / certificated service area notices
A CCN gives a retail water or wastewater utility the exclusive right to serve a specified area. For certain unimproved property outside a municipality’s jurisdiction, Texas law may require a statutory notice explaining that extending water or sewer service could involve additional cost or delay.
Before the contract
The statutory notice must be provided before execution when the requirement applies. The current Texas REALTORS® Unimproved Property Contract includes language addressing this notice.
At closing
Texas REALTORS® explains that a separate current copy of the notice is executed and acknowledged at closing and then recorded in the county real-property records when the statute applies.
Finding the provider
If the seller does not know the certificated service provider, the Public Utility Commission of Texas Water and Sewer CCN Viewer can be searched by property address.
Related forms and resources
This guide is based on Texas REALTORS® “MUD and CCN Notices” guidance and the current forms/reference material supplied for this Resource Center.
Open Texas REALTORS® MUD & CCN guidanceNeed further assistance?
For a property-specific notice question, contact your broker or Broker Rochelle Fitzgerald.
For educational purposes only. Agents should verify current forms and consult with their broker when needed.