89R5137 RDS-F
By: Gámez H.B. No. 3412
A BILL TO BE ENTITLED
AN ACT
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.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 2702, Insurance Code, is amended by
adding Subchapter D to read as follows:
SUBCHAPTER D. OTHER CLOSING SERVICES
Sec. 2702.151. DEFINITIONS. In this subchapter:
(1) "Residence homestead" has the meaning assigned by
Section 11.13, Tax Code.
(2) "Title insurance company" includes a title
insurance agent.
Sec. 2702.152. APPLICABILITY. This subchapter does not
apply to the closing or settlement of a real property transaction if
the closing or settlement is not actually handled by:
(1) a title insurance company or an attorney for a
title insurance company; or
(2) a representative of a title insurance company or
an attorney for a title insurance company.
Sec. 2702.153. RESIDENCE HOMESTEAD EXEMPTION. (a) In
connection with the closing and settlement of a real property
transaction pertaining to residential real property in this state,
a title insurance company shall provide to the buyer a notice that
the property may qualify for one or more residence homestead
exemptions from ad valorem taxation of the property. The notice
must include:
(1) eligibility criteria for a property to qualify for
a residence homestead exemption under Section 11.13, 11.131,
11.132, 11.133, or 11.134, Tax Code;
(2) the deadline for filing an application for a
residence homestead exemption;
(3) instructions for completing the application form
for a residence homestead exemption; and
(4) a statement that the title insurance company is
required to assist the buyer in applying for a residence homestead
exemption for which the buyer is qualified or to apply for the
exemption on behalf of the buyer unless the buyer waives the buyer's
right to have the title insurance company provide that service.
(b) In addition to providing the notice under Subsection
(a), in connection with the closing or settlement of a transaction
pertaining to real property that the buyer intends to occupy as the
buyer's residence homestead, a title insurance company shall assist
the buyer in applying for a residence homestead exemption or apply
for the exemption on behalf of the buyer unless the buyer waives the
buyer's right to have the title insurance company provide that
service.
(c) A title insurance company may charge a reasonable fee
for a service provided under Subsection (b). A title insurance
company that charges a fee under this subsection must disclose the
fee to the buyer.
(d) A title insurance company that violates this section is
subject to an administrative penalty under Chapter 84 of not more
than $500.
SECTION 2. Sections 11.43(n) and (p), Tax Code, are
repealed.
SECTION 3. Subchapter D, Chapter 2702, Insurance Code, as
added by this Act, applies only to a transaction for the purchase of
real property under a contract entered into on or after the
effective date of this Act.
SECTION 4. The repeal of Sections 11.43(n) and (p), Tax
Code, by this Act applies only to an application for a residence
homestead exemption from ad valorem taxation filed on or after the
effective date of this Act. An application for a residence
homestead exemption from ad valorem taxation filed before the
effective date of this Act is governed by the law in effect on the
date the application was filed, and that law is continued in effect
for that purpose.
SECTION 5. This Act takes effect September 1, 2025.