| 1 | 1 | | 89R13999 RAL-D |
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| 2 | 2 | | By: Garcia of Bexar H.B. No. 5642 |
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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 the disclosure of information regarding a transfer on |
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| 10 | 10 | | death deed in certain residential real property transactions. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Subchapter L, Chapter 1101, Occupations Code, is |
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| 13 | 13 | | amended by adding Section 1101.562 to read as follows: |
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| 14 | 14 | | Sec. 1101.562. DISCLOSURE OF INFORMATION REGARDING |
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| 15 | 15 | | TRANSFER ON DEATH DEED. (a) In this section: |
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| 16 | 16 | | (1) "Residential real property" means a: |
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| 17 | 17 | | (A) single-family house; |
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| 18 | 18 | | (B) duplex, triplex, or quadraplex; or |
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| 19 | 19 | | (C) unit in a multiunit residential structure in |
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| 20 | 20 | | which title to an individual unit is transferred to the owner of the |
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| 21 | 21 | | unit under a condominium or cooperative system. |
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| 22 | 22 | | (2) "Transfer on death deed" has the meaning assigned |
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| 23 | 23 | | by Section 114.002, Estates Code. |
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| 24 | 24 | | (b) At the time of a license holder's first substantive |
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| 25 | 25 | | communication with a party relating to a proposed purchase of |
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| 26 | 26 | | specific residential real property, the license holder shall |
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| 27 | 27 | | provide to the party written notice in at least a 10-point font that |
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| 28 | 28 | | provides information regarding a transfer on death deed. The notice |
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| 29 | 29 | | must: |
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| 30 | 30 | | (1) describe a transfer on death deed, including: |
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| 31 | 31 | | (A) the benefits of a transfer on death deed; |
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| 32 | 32 | | (B) the impact of a transfer on death deed on a |
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| 33 | 33 | | will; and |
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| 34 | 34 | | (C) the repercussions of an owner of real |
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| 35 | 35 | | property dying without a will or transfer on death deed; and |
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| 36 | 36 | | (2) include a statement regarding the ability of a |
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| 37 | 37 | | purchaser to execute a transfer on death deed when closing the real |
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| 38 | 38 | | estate purchase and the role of the purchaser's title insurance |
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| 39 | 39 | | company in assisting with the execution and filing of the transfer |
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| 40 | 40 | | on death deed. |
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| 41 | 41 | | (c) The commission by rule shall prescribe the text of the |
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| 42 | 42 | | notice required under Subsection (b). |
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| 43 | 43 | | (d) A license holder shall provide the notice required under |
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| 44 | 44 | | Subsection (b) by: |
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| 45 | 45 | | (1) personal delivery; |
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| 46 | 46 | | (2) first class mail or overnight common carrier |
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| 47 | 47 | | delivery service; or |
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| 48 | 48 | | (3) e-mail, including by providing the notice: |
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| 49 | 49 | | (A) in the body of the e-mail; |
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| 50 | 50 | | (B) as an attachment to an e-mail; or |
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| 51 | 51 | | (C) through a link in the body of the e-mail, with |
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| 52 | 52 | | a specific reference to the notice in the body of the e-mail. |
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| 53 | 53 | | (e) A license holder is not required to provide the notice |
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| 54 | 54 | | required by Subsection (b) if: |
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| 55 | 55 | | (1) the license holder meets with a party who the |
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| 56 | 56 | | license holder knows is represented by another license holder; or |
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| 57 | 57 | | (2) the communication occurs at a property that is |
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| 58 | 58 | | held open for any prospective buyer and the communication concerns |
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| 59 | 59 | | that property. |
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| 60 | 60 | | (f) The commission shall publish and make available on the |
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| 61 | 61 | | commission's Internet website the notice required under Subsection |
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| 62 | 62 | | (b). |
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| 63 | 63 | | (g) A license holder shall maintain a link to the notice |
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| 64 | 64 | | required under Subsection (b) in a prominent location on the home |
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| 65 | 65 | | page of each Internet website maintained by the license holder for |
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| 66 | 66 | | advertising the license holder's services. |
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| 67 | 67 | | (h) At the time an offer to purchase residential real |
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| 68 | 68 | | property is signed, the license holder assisting the buyer with the |
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| 69 | 69 | | offer shall advise each buyer, in writing, that the buyer may |
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| 70 | 70 | | execute a transfer on death deed for the property. |
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| 71 | 71 | | SECTION 2. (a) Not later than December 1, 2025, the Texas |
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| 72 | 72 | | Real Estate Commission shall adopt rules to implement Section |
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| 73 | 73 | | 1101.562, Occupations Code, as added by this Act. |
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| 74 | 74 | | (b) Section 1101.562, Occupations Code, as added by this |
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| 75 | 75 | | Act, applies only to conduct that occurs on or after January 1, |
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| 76 | 76 | | 2026. Conduct that occurs before January 1, 2026, is governed by |
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| 77 | 77 | | the law in effect immediately before the effective date of this Act, |
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| 78 | 78 | | and the former law is continued in effect for that purpose. |
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| 79 | 79 | | SECTION 3. This Act takes effect September 1, 2025. |
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