89R5466 RDS-D
By: Leo Wilson H.B. No. 3685
A BILL TO BE ENTITLED
AN ACT
relating to notice of possible eligibility 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 a purchase of
residential real property.
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. DEFINITION. In this subchapter, "residence
homestead" has the meaning assigned by Section 11.13, Tax Code.
Sec. 2702.152. APPLICABILITY. This subchapter does not
apply to the closing or settlement of a purchase of residential real
property if the closing or settlement is not actually handled by:
(1) a title insurance company, a title insurance
agent, or an attorney for a title insurance company or title
insurance agent; or
(2) a representative of a title insurance company, a
title insurance agent, or an attorney for a title insurance company
or title insurance agent.
Sec. 2702.153. NOTICE OF ELIGIBILITY FOR RESIDENCE
HOMESTEAD EXEMPTION. In connection with the closing and settlement
of a purchase of residential real property in this state, a title
insurance company or title insurance agent shall provide to the
buyer:
(1) a notice that the property may qualify for one or
more residence homestead exemptions from ad valorem taxation, which
would reduce the amount of taxes imposed on the property; and
(2) an application form for an exemption under Section
11.13, Tax Code.
SECTION 2. The change in law made by this Act applies only
to a purchase of residential real property under a contract entered
into on or after the effective date of this Act.
SECTION 3. This Act takes effect September 1, 2025.