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A BILL TO BE ENTITLED
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AN ACT
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relating to the provision of certain information by a title |
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insurance company to a buyer of residential real estate. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2702.051, Insurance Code, is amended to |
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read as follows: |
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Sec. 2702.051. APPLICABILITY. Except as otherwise provided |
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by this subchapter, this [This] subchapter does not apply to the |
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closing or settlement of: |
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(1) a residential real property transaction regulated |
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by the Real Estate Settlement Procedures Act of 1974 (Pub. L. |
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No. 93-533); or |
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(2) a real property transaction if the closing or |
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settlement is not actually handled by: |
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(A) a title insurance company, a title insurance |
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agent, or an attorney for a title insurance company or title |
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insurance agent; or |
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(B) a representative of a title insurance |
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company, a title insurance agent, or an attorney for a title |
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insurance company or title insurance agent. |
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SECTION 2. Subchapter B, Chapter 2702, Insurance Code, is |
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amended by adding Section 2702.055 to read as follows: |
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Sec. 2702.055. TAX EXEMPTION INFORMATION FOR CERTAIN |
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BUYERS. A title insurance company or title insurance agent |
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required to provide a closing and settlement statement under this |
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subchapter or a settlement statement under the Real Estate |
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Settlement Procedures Act of 1974 (Pub. L. No. 93-533) for a |
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transaction involving the purchase of improved residential real |
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property shall provide to the purchaser, in addition to that |
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statement: |
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(1) a disclosure prescribed by the department that |
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describes the residence homestead exemptions available under |
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Subchapter B, Chapter 11, Tax Code; and |
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(2) a copy of any application form that may be used to |
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apply for one of those exemptions with an appraisal district in |
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which the property is located. |
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SECTION 3. (a) The Texas Department of Insurance shall |
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prescribe the disclosure required by Section 2702.055, Insurance |
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Code, as added by this Act, not later than December 1, 2015. |
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(b) The change in law made by this Act applies only to a |
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transaction closed or settled on or after January 1, 2016. A |
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transaction closed or settled before that date is governed by the |
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law as it existed immediately before the effective date of this Act, |
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and that law is continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2015. |