| 1 | 1 | | 89R5137 RDS-F |
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| 2 | 2 | | By: Gámez H.B. No. 3412 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to notice of and assistance in filing an application for a |
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| 10 | 10 | | residence homestead exemption from ad valorem taxation provided to |
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| 11 | 11 | | a home buyer by a title insurance company or title insurance agent |
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| 12 | 12 | | in connection with the closing and settlement of certain |
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| 13 | 13 | | transactions pertaining to residential real property; authorizing |
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| 14 | 14 | | a fee; providing for the imposition of an administrative penalty. |
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| 15 | 15 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 16 | 16 | | SECTION 1. Chapter 2702, Insurance Code, is amended by |
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| 17 | 17 | | adding Subchapter D to read as follows: |
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| 18 | 18 | | SUBCHAPTER D. OTHER CLOSING SERVICES |
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| 19 | 19 | | Sec. 2702.151. DEFINITIONS. In this subchapter: |
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| 20 | 20 | | (1) "Residence homestead" has the meaning assigned by |
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| 21 | 21 | | Section 11.13, Tax Code. |
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| 22 | 22 | | (2) "Title insurance company" includes a title |
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| 23 | 23 | | insurance agent. |
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| 24 | 24 | | Sec. 2702.152. APPLICABILITY. This subchapter does not |
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| 25 | 25 | | apply to the closing or settlement of a real property transaction if |
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| 26 | 26 | | the closing or settlement is not actually handled by: |
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| 27 | 27 | | (1) a title insurance company or an attorney for a |
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| 28 | 28 | | title insurance company; or |
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| 29 | 29 | | (2) a representative of a title insurance company or |
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| 30 | 30 | | an attorney for a title insurance company. |
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| 31 | 31 | | Sec. 2702.153. RESIDENCE HOMESTEAD EXEMPTION. (a) In |
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| 32 | 32 | | connection with the closing and settlement of a real property |
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| 33 | 33 | | transaction pertaining to residential real property in this state, |
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| 34 | 34 | | a title insurance company shall provide to the buyer a notice that |
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| 35 | 35 | | the property may qualify for one or more residence homestead |
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| 36 | 36 | | exemptions from ad valorem taxation of the property. The notice |
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| 37 | 37 | | must include: |
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| 38 | 38 | | (1) eligibility criteria for a property to qualify for |
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| 39 | 39 | | a residence homestead exemption under Section 11.13, 11.131, |
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| 40 | 40 | | 11.132, 11.133, or 11.134, Tax Code; |
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| 41 | 41 | | (2) the deadline for filing an application for a |
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| 42 | 42 | | residence homestead exemption; |
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| 43 | 43 | | (3) instructions for completing the application form |
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| 44 | 44 | | for a residence homestead exemption; and |
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| 45 | 45 | | (4) a statement that the title insurance company is |
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| 46 | 46 | | required to assist the buyer in applying for a residence homestead |
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| 47 | 47 | | exemption for which the buyer is qualified or to apply for the |
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| 48 | 48 | | exemption on behalf of the buyer unless the buyer waives the buyer's |
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| 49 | 49 | | right to have the title insurance company provide that service. |
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| 50 | 50 | | (b) In addition to providing the notice under Subsection |
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| 51 | 51 | | (a), in connection with the closing or settlement of a transaction |
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| 52 | 52 | | pertaining to real property that the buyer intends to occupy as the |
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| 53 | 53 | | buyer's residence homestead, a title insurance company shall assist |
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| 54 | 54 | | the buyer in applying for a residence homestead exemption or apply |
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| 55 | 55 | | for the exemption on behalf of the buyer unless the buyer waives the |
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| 56 | 56 | | buyer's right to have the title insurance company provide that |
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| 57 | 57 | | service. |
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| 58 | 58 | | (c) A title insurance company may charge a reasonable fee |
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| 59 | 59 | | for a service provided under Subsection (b). A title insurance |
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| 60 | 60 | | company that charges a fee under this subsection must disclose the |
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| 61 | 61 | | fee to the buyer. |
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| 62 | 62 | | (d) A title insurance company that violates this section is |
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| 63 | 63 | | subject to an administrative penalty under Chapter 84 of not more |
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| 64 | 64 | | than $500. |
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| 65 | 65 | | SECTION 2. Sections 11.43(n) and (p), Tax Code, are |
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| 66 | 66 | | repealed. |
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| 67 | 67 | | SECTION 3. Subchapter D, Chapter 2702, Insurance Code, as |
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| 68 | 68 | | added by this Act, applies only to a transaction for the purchase of |
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| 69 | 69 | | real property under a contract entered into on or after the |
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| 70 | 70 | | effective date of this Act. |
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| 71 | 71 | | SECTION 4. The repeal of Sections 11.43(n) and (p), Tax |
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| 72 | 72 | | Code, by this Act applies only to an application for a residence |
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| 73 | 73 | | homestead exemption from ad valorem taxation filed on or after the |
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| 74 | 74 | | effective date of this Act. An application for a residence |
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| 75 | 75 | | homestead exemption from ad valorem taxation filed before the |
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| 76 | 76 | | effective date of this Act is governed by the law in effect on the |
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| 77 | 77 | | date the application was filed, and that law is continued in effect |
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| 78 | 78 | | for that purpose. |
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| 79 | 79 | | SECTION 5. This Act takes effect September 1, 2025. |
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