| 1 | 1 | | 89R5466 RDS-D |
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| 2 | 2 | | By: Leo Wilson H.B. No. 3685 |
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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 possible eligibility for a residence |
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| 10 | 10 | | homestead exemption from ad valorem taxation provided to a home |
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| 11 | 11 | | buyer by a title insurance company or title insurance agent in |
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| 12 | 12 | | connection with the closing and settlement of a purchase of |
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| 13 | 13 | | residential real property. |
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| 14 | 14 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 15 | 15 | | SECTION 1. Chapter 2702, Insurance Code, is amended by |
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| 16 | 16 | | adding Subchapter D to read as follows: |
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| 17 | 17 | | SUBCHAPTER D. OTHER CLOSING SERVICES |
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| 18 | 18 | | Sec. 2702.151. DEFINITION. In this subchapter, "residence |
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| 19 | 19 | | homestead" has the meaning assigned by Section 11.13, Tax Code. |
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| 20 | 20 | | Sec. 2702.152. APPLICABILITY. This subchapter does not |
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| 21 | 21 | | apply to the closing or settlement of a purchase of residential real |
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| 22 | 22 | | property if the closing or settlement is not actually handled by: |
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| 23 | 23 | | (1) a title insurance company, a title insurance |
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| 24 | 24 | | agent, or an attorney for a title insurance company or title |
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| 25 | 25 | | insurance agent; or |
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| 26 | 26 | | (2) a representative of a title insurance company, a |
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| 27 | 27 | | title insurance agent, or an attorney for a title insurance company |
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| 28 | 28 | | or title insurance agent. |
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| 29 | 29 | | Sec. 2702.153. NOTICE OF ELIGIBILITY FOR RESIDENCE |
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| 30 | 30 | | HOMESTEAD EXEMPTION. In connection with the closing and settlement |
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| 31 | 31 | | of a purchase of residential real property in this state, a title |
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| 32 | 32 | | insurance company or title insurance agent shall provide to the |
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| 33 | 33 | | buyer: |
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| 34 | 34 | | (1) a notice that the property may qualify for one or |
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| 35 | 35 | | more residence homestead exemptions from ad valorem taxation, which |
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| 36 | 36 | | would reduce the amount of taxes imposed on the property; and |
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| 37 | 37 | | (2) an application form for an exemption under Section |
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| 38 | 38 | | 11.13, Tax Code. |
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| 39 | 39 | | SECTION 2. The change in law made by this Act applies only |
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| 40 | 40 | | to a purchase of residential real property under a contract entered |
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| 41 | 41 | | into on or after the effective date of this Act. |
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| 42 | 42 | | SECTION 3. This Act takes effect September 1, 2025. |
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