Selling homes in subdivisions which have water districts is becoming more common these days.
Under the Texas Water Code a seller must give written notice at the time the contract is entered into. If the notice is not received the buyer had the right to terminate the contract. If the seller delivers the notice at or prior to closing and the buyer accept the notice then they waive their right to terminate.
At closing another copy of this notice will be signed by the buyer, notarized and recorded in with the deed.