89R13999 RAL-D
By: Garcia of Bexar H.B. No. 5642
A BILL TO BE ENTITLED
AN ACT
relating to the disclosure of information regarding a transfer on
death deed in certain residential real property transactions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter L, Chapter 1101, Occupations Code, is
amended by adding Section 1101.562 to read as follows:
Sec. 1101.562. DISCLOSURE OF INFORMATION REGARDING
TRANSFER ON DEATH DEED. (a) In this section:
(1) "Residential real property" means a:
(A) single-family house;
(B) duplex, triplex, or quadraplex; or
(C) unit in a multiunit residential structure in
which title to an individual unit is transferred to the owner of the
unit under a condominium or cooperative system.
(2) "Transfer on death deed" has the meaning assigned
by Section 114.002, Estates Code.
(b) At the time of a license holder's first substantive
communication with a party relating to a proposed purchase of
specific residential real property, the license holder shall
provide to the party written notice in at least a 10-point font that
provides information regarding a transfer on death deed. The notice
must:
(1) describe a transfer on death deed, including:
(A) the benefits of a transfer on death deed;
(B) the impact of a transfer on death deed on a
will; and
(C) the repercussions of an owner of real
property dying without a will or transfer on death deed; and
(2) include a statement regarding the ability of a
purchaser to execute a transfer on death deed when closing the real
estate purchase and the role of the purchaser's title insurance
company in assisting with the execution and filing of the transfer
on death deed.
(c) The commission by rule shall prescribe the text of the
notice required under Subsection (b).
(d) A license holder shall provide the notice required under
Subsection (b) by:
(1) personal delivery;
(2) first class mail or overnight common carrier
delivery service; or
(3) e-mail, including by providing the notice:
(A) in the body of the e-mail;
(B) as an attachment to an e-mail; or
(C) through a link in the body of the e-mail, with
a specific reference to the notice in the body of the e-mail.
(e) A license holder is not required to provide the notice
required by Subsection (b) if:
(1) the license holder meets with a party who the
license holder knows is represented by another license holder; or
(2) the communication occurs at a property that is
held open for any prospective buyer and the communication concerns
that property.
(f) The commission shall publish and make available on the
commission's Internet website the notice required under Subsection
(b).
(g) A license holder shall maintain a link to the notice
required under Subsection (b) in a prominent location on the home
page of each Internet website maintained by the license holder for
advertising the license holder's services.
(h) At the time an offer to purchase residential real
property is signed, the license holder assisting the buyer with the
offer shall advise each buyer, in writing, that the buyer may
execute a transfer on death deed for the property.
SECTION 2. (a) Not later than December 1, 2025, the Texas
Real Estate Commission shall adopt rules to implement Section
1101.562, Occupations Code, as added by this Act.
(b) Section 1101.562, Occupations Code, as added by this
Act, applies only to conduct that occurs on or after January 1,
2026. Conduct that occurs before January 1, 2026, is governed by
the law in effect immediately before the effective date of this Act,
and the former law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2025.