What’s a Texas Agricultural Development District?

May 01, 2025

I’m helping my client prepare an offer for a vacant residential lot using the Unimproved Property Contract. A checkbox in the form asks whether the property is located in a Texas agricultural development district. What does this mean?

The process for creating agricultural development districts was enacted in 2001 by the Texas Legislature under Chapter 60 of the Texas Agriculture Code to promote the development of agricultural facilities that result in employment and economic activity. To date, no such districts have been created under that chapter of the Texas Agriculture Code, according to the Texas Department of Agriculture. However, the Southeast Texas Agricultural Development District in Chambers County was created outside the context of Chapter 60 by the Legislature.

The provision you described is in the Unimproved Property Contract (TXR 1607, TREC 9-17) and the Farm and Ranch Contract (TXR 1701, TREC 25-16). In the event a seller is located in such a district, the seller is required to give written notice to prospective buyers prior to the execution of a binding contract to purchase the property. This notice can be given separately or within the terms of the contract itself. The seller and buyer of property in an agricultural development district must also sign a separate notice at closing that is recorded in the deed records.

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