TX
Texas Senate Bill SB2550

Texas 2025 - 89th Regular

Texas Senate Bill SB2550

Filed
3/13/25  
Out of Senate Committee
4/23/25  
Voted on by Senate
5/5/25  
Out of House Committee
5/10/25  
Voted on by House
5/12/25  
Governor Action
5/24/25  

Caption

Relating to an exemption of the transfer of certain rights in water from certain disclosure requirements applicable to the transfer of certain interests in real property.

Impact

The bill is expected to significantly reduce the burden on property developers and owners who engage in transactions involving water rights, thereby facilitating smoother property transfers. This change will have implications on how property owners are informed about potential risks associated with ownership of coastal properties, particularly those located near tidally influenced waters. The bill takes effect on September 1, 2025, signaling an important upcoming change in the real estate landscape in Texas.

Summary

SB2550 aims to amend existing regulations concerning property transfers related to interests in water. It specifically seeks to exempt transfers of certain rights in water from specific disclosure requirements that typically apply to the transfer of real property interests. This change is intended to streamline the process for property transactions involving water rights, particularly in coastal areas of Texas.

Sentiment

The sentiment surrounding SB2550 appears to be mixed. Proponents argue that the bill will promote economic development and provide clarity in property transactions, making it less cumbersome for real estate professionals and landowners. On the other hand, some critics are concerned that reducing disclosure requirements could lead to unanticipated legal and economic risks for buyers, especially in coastal areas that are prone to erosion and other environmental challenges.

Contention

Notably, points of contention in discussions around the bill include concerns about the adequacy of disclosures regarding coastal erosion risks and the potential for increased disputes over property boundaries. Critics suggest that without proper awareness and warning, new property owners may find themselves in precarious situations concerning the legal and economic implications of their purchases. The ongoing debate reflects the tension between facilitating property transfers and ensuring that buyers are adequately informed of the risks associated with coastal real estate.

Texas Constitutional Statutes Affected

Property Code

  • Chapter 5. Conveyances
    • Section: New Section
    • Section: New Section
    • Section: New Section
    • Section: New Section
    • Section: New Section
    • Section: New Section
    • Section: New Section

Natural Resources Code

  • Chapter 33. Management Of Coastal Public Land
    • Section: 135
    • Section: 135
    • Section: 135
    • Section: 135
    • Section: 135
    • Section: 135
    • Section: 135
  • Chapter 61. Use And Maintenance Of Public Beaches
    • Section: New Section
    • Section: New Section
    • Section: New Section
    • Section: New Section
    • Section: New Section
    • Section: New Section
    • Section: New Section

Water Code

  • Chapter 13. Water Rates And Services
    • Section: 257
    • Section: 257
    • Section: 257
    • Section: 257
    • Section: 257
    • Section: 257

Companion Bills

TX HB3901

Identical Relating to an exemption of the transfer of certain rights in water from certain disclosure requirements applicable to the transfer of certain interests in real property.

Previously Filed As

TX SB864

Relating to certain seller's disclosures for the sale of residential real property.

TX HB697

Relating to seller's disclosures regarding fuel gas piping in residential real property.

TX HB1256

Relating to seller's disclosure notice concerning special districts in which residential real property is located.

TX HB3844

Relating to certain procedural requirements for public improvement districts and transfers of property located in public improvement districts.

TX SB1958

Relating to certain procedural requirements for public improvement districts and transfers of property located in public improvement districts.

TX HB3420

Relating to the transfer of certain real property from the Texas Transportation Commission to Palo Pinto County.

TX HB4498

Relating to the transfer and statutory novation of insurance policies from a transferring insurer to an assuming insurer through an insurance business transfer plan; authorizing fees.

TX HB5336

Relating to the powers and duties of Port Freeport; limiting the authority of certain municipalities to regulate land use by Port Freeport; and the creation of a reinvestment zone containing property owned by Port Freeport.

TX HB5338

Relating to the Harris County Flood Control District and the transfer to it of the assets, programs, and facilities of the Harris County Toll Road Authority; providing for the appointment of the governing body.

TX HB4415

Relating to the transfer of certain real property from the Health and Human Services Commission to the StarCare Specialty Health System.

Similar Bills

TX HB3901

Relating to an exemption of the transfer of certain rights in water from certain disclosure requirements applicable to the transfer of certain interests in real property.

CA SB646

Local agency utility services: extension of utility services.

LA SB205

Creates certain parks and recreation districts in East Baton Rouge Parish. (7/1/21) (RE SEE FISC NOTE LF EX See Note)

MI HB4620

Taxation: other; certain references in the real estate transfer tax act; make gender neutral. Amends sec. 5 of 1966 PA 134 (MCL 207.505). TIE BAR WITH: HJR F'25

MI HB4778

Taxation: other; certain references in the real estate transfer tax act; make gender neutral. Amends sec. 5 of 1966 PA 134 (MCL 207.505). TIE BAR WITH: HJR F'23

TX HB570

Relating to requiring the disclosure of certain information to purchasers and renters of residential property.

TX HB8

Relating to prohibiting certain private transfer fees and the preservation of private real property rights; providing penalties.

DC B26-0090

Neighborhood Management Authority Act of 2025