Texas 2025 - 89th Regular

Texas House Bill HB3901

Filed
3/6/25  
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to an exemption of the transfer of certain rights in water from certain disclosure requirements applicable to the transfer of certain interests in real property.

Impact

The bill's enactment is expected to impact the way real estate transactions are managed, especially along coastal areas governed by unique environmental concerns. Property sellers and buyers may benefit from reduced paperwork and potential legal complications, as the bill removes certain disclosure elements that had to be included in contracts involving coastal properties. This could lead to a more fluid market for these kinds of properties; however, it may also raise concerns about the adequacy of information available to potential buyers concerning environmental risks and property conditions.

Summary

House Bill 3901 aims to exempt the transfer of certain water rights from specific disclosure requirements that are usually applicable to the transfer of interests in real property. This act targets the interests that do not include groundwater or surface water rights, thereby potentially easing some of the regulatory burdens associated with property transactions near tidal zones. By altering disclosure mandates, the bill seeks to streamline procedures for real estate transactions involving properties adjoining state-controlled water bodies, which can be complex due to environmental regulations.

Sentiment

Overall, the sentiment surrounding HB 3901 appears to be mixed, reflecting both support and reservations. Proponents of the bill argue that it facilitates real estate development by cutting unnecessary regulations that can stall sales and deter investment in coastal areas. They believe that reducing bureaucratic obstacles is crucial for economic growth and coastal development. Conversely, critics express apprehension regarding the potential for inadequate buyer protection, suggesting that relaxing disclosure requirements may result in buyers being unaware of significant environmental risks, particularly those related to coastal erosion and property value stability.

Contention

Notable points of contention in discussions concerning HB 3901 revolve around the balance between fostering development and ensuring environmental safeguards. Critics argue that the bill may inadvertently lead to more significant economic losses for buyers who find themselves exposed to unforeseen risks, particularly from erosion and the changing nature of coastal properties. The modifications proposed in this bill challenge the existing framework designed to protect buyers by ensuring they are informed about the potential pitfalls of purchasing coastal real estate, hence opening a debate about the priorities of economic activity versus regulatory protection.

Texas Constitutional Statutes Affected

Property Code

  • Chapter 5. Conveyances
    • Section: New Section
    • Section: New Section
    • Section: New Section

Natural Resources Code

  • Chapter 33. Management Of Coastal Public Land
    • Section: 135
    • Section: 135
    • Section: 135
  • Chapter 61. Use And Maintenance Of Public Beaches
    • Section: New Section
    • Section: New Section
    • Section: New Section

Water Code

  • Chapter 13. Water Rates And Services
    • Section: 257
    • Section: 257

Companion Bills

TX SB2550

Identical Relating to an exemption of the transfer of certain rights in water from certain disclosure requirements applicable to the transfer of certain interests in real property.

Previously Filed As

TX SB864

Relating to certain seller's disclosures for the sale of residential real property.

TX HB697

Relating to seller's disclosures regarding fuel gas piping in residential real property.

TX HB1256

Relating to seller's disclosure notice concerning special districts in which residential real property is located.

TX HB3844

Relating to certain procedural requirements for public improvement districts and transfers of property located in public improvement districts.

TX SB1958

Relating to certain procedural requirements for public improvement districts and transfers of property located in public improvement districts.

TX HB3420

Relating to the transfer of certain real property from the Texas Transportation Commission to Palo Pinto County.

TX HB4498

Relating to the transfer and statutory novation of insurance policies from a transferring insurer to an assuming insurer through an insurance business transfer plan; authorizing fees.

TX HB5336

Relating to the powers and duties of Port Freeport; limiting the authority of certain municipalities to regulate land use by Port Freeport; and the creation of a reinvestment zone containing property owned by Port Freeport.

TX HB5338

Relating to the Harris County Flood Control District and the transfer to it of the assets, programs, and facilities of the Harris County Toll Road Authority; providing for the appointment of the governing body.

TX HB4415

Relating to the transfer of certain real property from the Health and Human Services Commission to the StarCare Specialty Health System.

Similar Bills

TX SB2550

Relating to an exemption of the transfer of certain rights in water from certain disclosure requirements applicable to the transfer of certain interests in real property.

CA SB646

Local agency utility services: extension of utility services.

LA SB205

Creates certain parks and recreation districts in East Baton Rouge Parish. (7/1/21) (RE SEE FISC NOTE LF EX See Note)

MI HB4620

Taxation: other; certain references in the real estate transfer tax act; make gender neutral. Amends sec. 5 of 1966 PA 134 (MCL 207.505). TIE BAR WITH: HJR F'25

MI HB4778

Taxation: other; certain references in the real estate transfer tax act; make gender neutral. Amends sec. 5 of 1966 PA 134 (MCL 207.505). TIE BAR WITH: HJR F'23

TX HB570

Relating to requiring the disclosure of certain information to purchasers and renters of residential property.

TX HB8

Relating to prohibiting certain private transfer fees and the preservation of private real property rights; providing penalties.

DC B26-0090

Neighborhood Management Authority Act of 2025