84R2455 AJA-D
 
  By: Watson S.B. No. 594
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the provision of certain information by a title
  insurance company to a buyer of residential real estate.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2702.051, Insurance Code, is amended to
  read as follows:
         Sec. 2702.051.  APPLICABILITY. Except as otherwise provided
  by this subchapter, this [This] subchapter does not apply to the
  closing or settlement of:
               (1)  a residential real property transaction regulated
  by the Real Estate Settlement Procedures Act of 1974 (Pub. L.
  No. 93-533); or
               (2)  a real property transaction if the closing or
  settlement is not actually handled by:
                     (A)  a title insurance company, a title insurance
  agent, or an attorney for a title insurance company or title
  insurance agent; or
                     (B)  a representative of a title insurance
  company, a title insurance agent, or an attorney for a title
  insurance company or title insurance agent.
         SECTION 2.  Subchapter B, Chapter 2702, Insurance Code, is
  amended by adding Section 2702.055 to read as follows:
         Sec. 2702.055.  TAX EXEMPTION INFORMATION FOR CERTAIN
  BUYERS. A title insurance company or title insurance agent
  required to provide a closing and settlement statement under this
  subchapter or a settlement statement under the Real Estate
  Settlement Procedures Act of 1974 (Pub. L. No. 93-533) for a
  transaction involving the purchase of improved residential real
  property shall provide to the purchaser, in addition to that
  statement:
               (1)  a disclosure prescribed by the department that
  describes the residence homestead exemptions available under
  Subchapter B, Chapter 11, Tax Code; and
               (2)  a copy of any application form that may be used to
  apply for one of those exemptions with an appraisal district in
  which the property is located.
         SECTION 3.  (a) The Texas Department of Insurance shall
  prescribe the disclosure required by Section 2702.055, Insurance
  Code, as added by this Act, not later than December 1, 2015.
         (b)  The change in law made by this Act applies only to a
  transaction closed or settled on or after January 1, 2016. A
  transaction closed or settled before that date is governed by the
  law as it existed immediately before the effective date of this Act,
  and that law is continued in effect for that purpose.
         SECTION 4.  This Act takes effect September 1, 2015.