Texas 2025 - 89th Regular

Texas House Bill HB3412

Voted on by House
 
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to notice of and assistance in filing an application for a residence homestead exemption from ad valorem taxation provided to a home buyer by a title insurance company or title insurance agent in connection with the closing and settlement of certain transactions pertaining to residential real property; authorizing a fee; providing for the imposition of an administrative penalty.

Impact

The impact of HB 3412 on state laws includes the incorporation of clear guidelines regarding the obligations of title insurance companies related to homestead exemptions. By formalizing these responsibilities, the bill seeks to streamline the exemption application process, thereby potentially increasing the number of homeowners eligible for tax relief. Furthermore, the ability for title companies to charge a fee for these services adds a structured financial element to the assistance provided, which could incentivize compliance and thoroughness in helping buyers navigate their homestead exemption opportunities.

Summary

House Bill 3412 aims to enhance the assistance provided to home buyers regarding residence homestead exemption applications from ad valorem taxation. This legislation mandates title insurance companies and their agents to inform buyers during the real estate closing process about the eligibility and procedures for obtaining homestead exemptions. Specifically, the bill requires a notice detailing the relevant criteria, deadlines, and application instructions to be provided to the buyers as part of the closing settlement on residential property transactions. As an added benefit, title insurance companies are also obligated to assist buyers in applying for these exemptions unless the buyer chooses to waive this right.

Contention

While this bill is primarily focused on aiding home buyers, there may be debates surrounding the imposition of fees by title insurance companies for this service. Concerns may arise over whether such fees could create additional barriers for buyers, particularly for those with limited financial resources. Moreover, the repeal of specific sections from existing tax code reflects a shift in how the exemption application process is managed, which could lead to discussions about the broader implications of this legislative change for existing applicants and potential legal interpretations of the new rules. Overall, HB 3412 is positioned to reshape the interactions between title insurance companies and home buyers significantly.

Texas Constitutional Statutes Affected

Insurance Code

  • Chapter 2702. Closing And Settlement
    • Section: New Section

Companion Bills

No companion bills found.

Previously Filed As

TX HB66

Relating to notice of eligibility for a residence homestead ad valorem tax exemption.

TX HB3325

Relating to notice by an appraisal district to an owner of residential property of the owner's potential eligibility for a residence homestead exemption from ad valorem taxation of the property and the manner in which certain owners may apply for the exemption.

TX HB5134

Relating to an exemption from ad valorem taxation of the total appraised value of the residence homesteads of certain elderly persons and their surviving spouses.

TX HB215

Relating to an exemption from ad valorem taxation of the total appraised value of the residence homesteads of certain elderly persons and their surviving spouses.

TX HB5013

Relating to an exemption from ad valorem taxation of 50 percent of the appraised value of the residence homestead of a person who has received a residence homestead exemption on the property for at least the preceding 10 years.

TX HB207

Relating to an exemption from ad valorem taxation of the total appraised value of the residence homesteads of certain elderly persons and their surviving spouses.

TX HB96

Relating to an exemption from ad valorem taxation of the total appraised value of the residence homesteads of certain elderly persons and their surviving spouses.

TX HB68

Relating to an exemption from ad valorem taxation of the total appraised value of the residence homesteads of certain elderly persons and their surviving spouses.

TX HB3640

Relating to an exemption from ad valorem taxation of a portion of the appraised value of a property other than a residence homestead that is the primary residence of an adult who has an intellectual or developmental disability and who must be related to the owner or trustee of the property within a certain degree by consanguinity.

TX HB3973

Relating to an exemption from ad valorem taxation of a portion of the appraised value of the residence homesteads of certain elderly persons and their surviving spouses.

Similar Bills

NJ S2037

Requires direct payment of homestead credit to claimant following sale of qualifying homestead and upon claimant request.

NJ S1309

Requires direct payment of homestead credit to claimant following sale of qualifying homestead and upon claimant request.

CA AB1885

Debtor exemptions: homestead exemption.

NJ A5089

Prohibits homestead property tax rebates and credits and ANCHOR property tax benefits from being paid to property owners who move out of State.

FL H1105

Rescinding a Homestead Exemption Application

NJ A254

Permits eligible claimant who is proportionate owner paying entire property tax bill to collect entire homestead property tax reimbursement amount.

NJ A975

Permits eligible claimant who is proportionate owner paying entire property tax bill to collect entire homestead property tax reimbursement amount.

CA SB832

Debtor exemptions: homestead exemption.