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MUD's & PID's

The required forms for selling a home in a MUD or a PID

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For properties located in a PID (Public Improvement District), you will require TREC 53-0 (Addendum with Notice of Obligation to Pay Improvement District Fees). It is the responsibility of the Seller/Listing Agent to complete and present this to the Buyer. This form should be available in transactiondesk for Buyers to view/sign. If it isn't, and you are representing the Buyer, it is crucial to request it from the Listing Agent.
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Ideally, though not mandatory, Listing Agents should provide or Buyers Agents should request the 'projected annual installments' form. This document details the remaining years in the PID and the annual payment amounts for those years. Note that this form does not need to be signed.

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For properties located in a MUD (Municipal Utility District), you will require TREC 57-0 (Notice to prospective buyer) AND 'Notice to purchasers'. It is the responsibility of the Seller/Listing Agent to complete and present this to the Buyer. This form should be available in transactiondesk for Buyers to view/sign. If it isn't, and you are representing the Buyer, it is crucial to request it from the Listing Agent.

The 'Notice to purchasers' form can generally be found in the Sellers closing package of when they purchased the house. It can also be found here using this Map. Or you can search other listings on the MLS to find the proper information. Note: You may need to create this form using a text extractor, and then editing the property address, lot/block, etc. Please consult your Broker before doing so.


​In the rare event that you cannot locate the 'Notice to purchasers' or recreate it, you may use TREC 59-0 (NOTICE TO PURCHASER OF SPECIAL TAXING OR ASSESSMENT DISTRICT). However, as it clearly states on this notice: If available, Seller should use the district’s form instead of this form.

Whats the difference?

 

MUDs (Municipal Utility Districts): Debt service on MUD bonds come from property taxes. The homeowners within the MUD pay off the bonds and pay for utility services through a MUD tax. A MUD tax is an additional percentage in taxes the homeowner will pay. MUD's generally never fall off or can be paid off early since its a set tax rate.
 

 

PIDs (Public Improvement Districts): PID debt service comes from an initial assessment that does not change over time. A homeowner would know the annual assessment bill at the time of purchase. The PID assessment, once repaid, is never charged to that property again. The PID Assessment can be paid off at any time or over a period of number of years. The PID Assessment amount usually varies by lot size.

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