BILL ANALYSIS

H.B. 4170

By: Hayes

Judiciary & Civil Jurisprudence

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Private transfer fees are charges payable on the transfer of an interest in real property, typically to a third party who has no continued interest in the property. In 2011, the Texas Legislature enacted legislation that prohibited the enforcement of new private transfer fee obligations and established certain requirements for existing private transfer fee obligations. However, the law does not currently specify where lawsuits relating to private transfer fees must be filed. The bill author has informed the committee that this lack of specificity can create uncertainty and potential inconsistency in venue determinations, which are particularly important in these lawsuits because private transfer fees directly impact real property rights and values. Without a clear venue provision, litigation relating to these fees might occur in counties distant from the affected property, which can cause practical difficulties for property owners who need to challenge or resolve disputes regarding these fees. H.B. 4170 seeks to address these issues by requiring actions relating to private transfer fees, except those brought by the attorney general, to be brought in the county where the real property subject to the private transfer fee is located.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 4170 amends the Property Code to require an action brought under statutory provisions relating to private transfer fees for interests in real property, other than an action brought by the attorney general, to be brought in the county in which the real property is located. The bill applies only to an action filed on or after the bill's effective date. An action filed before the bill's effective date is governed by the law as it existed immediately before the bill's effective date, and that law is continued in effect for that purpose.

EFFECTIVE DATE

September 1, 2025.