| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to notice of and assistance in filing an application for a |
|
|
residence homestead exemption from ad valorem taxation provided to |
|
|
a home buyer by a title insurance company or title insurance agent |
|
|
in connection with the closing and settlement of certain |
|
|
transactions pertaining to residential real property; authorizing |
|
|
a fee; providing for the imposition of an administrative penalty. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Chapter 2702, Insurance Code, is amended by |
|
|
adding Subchapter D to read as follows: |
|
|
SUBCHAPTER D. OTHER CLOSING SERVICES |
|
|
Sec. 2702.151. DEFINITIONS. In this subchapter: |
|
|
(1) "Residence homestead" has the meaning assigned by |
|
|
Section 11.13, Tax Code. |
|
|
(2) "Title insurance company" includes a title |
|
|
insurance agent. |
|
|
Sec. 2702.152. APPLICABILITY. This subchapter does not |
|
|
apply to the closing or settlement of a real property transaction if |
|
|
the closing or settlement is not actually handled by: |
|
|
(1) a title insurance company or an attorney for a |
|
|
title insurance company; or |
|
|
(2) a representative of a title insurance company or |
|
|
an attorney for a title insurance company. |
|
|
Sec. 2702.153. RESIDENCE HOMESTEAD EXEMPTION. (a) In |
|
|
connection with the closing and settlement of a real property |
|
|
transaction pertaining to residential real property in this state, |
|
|
a title insurance company shall provide to the buyer a notice that |
|
|
the property may qualify for one or more residence homestead |
|
|
exemptions from ad valorem taxation of the property. The notice |
|
|
must include: |
|
|
(1) eligibility criteria for a property to qualify for |
|
|
a residence homestead exemption under Section 11.13, 11.131, |
|
|
11.132, 11.133, or 11.134, Tax Code; |
|
|
(2) the deadline for filing an application for a |
|
|
residence homestead exemption; |
|
|
(3) instructions for completing the application form |
|
|
for a residence homestead exemption; and |
|
|
(4) a statement that the title insurance company is |
|
|
required to assist the buyer in applying for a residence homestead |
|
|
exemption for which the buyer is qualified or to apply for the |
|
|
exemption on behalf of the buyer unless the buyer waives the buyer's |
|
|
right to have the title insurance company provide that service. |
|
|
(b) In addition to providing the notice under Subsection |
|
|
(a), in connection with the closing or settlement of a transaction |
|
|
pertaining to real property that the buyer intends to occupy as the |
|
|
buyer's residence homestead, a title insurance company shall assist |
|
|
the buyer in applying for a residence homestead exemption or apply |
|
|
for the exemption on behalf of the buyer unless the buyer waives the |
|
|
buyer's right to have the title insurance company provide that |
|
|
service. |
|
|
(c) A title insurance company may charge a reasonable fee |
|
|
for a service provided under Subsection (b). A title insurance |
|
|
company that charges a fee under this subsection must disclose the |
|
|
fee to the buyer. |
|
|
(d) A title insurance company that violates this section is |
|
|
subject to an administrative penalty under Chapter 84 of not more |
|
|
than $500. |
|
|
SECTION 2. Sections 11.43(n) and (p), Tax Code, are |
|
|
repealed. |
|
|
SECTION 3. Subchapter D, Chapter 2702, Insurance Code, as |
|
|
added by this Act, applies only to a transaction for the purchase of |
|
|
real property under a contract entered into on or after the |
|
|
effective date of this Act. |
|
|
SECTION 4. The repeal of Sections 11.43(n) and (p), Tax |
|
|
Code, by this Act applies only to an application for a residence |
|
|
homestead exemption from ad valorem taxation filed on or after the |
|
|
effective date of this Act. An application for a residence |
|
|
homestead exemption from ad valorem taxation filed before the |
|
|
effective date of this Act is governed by the law in effect on the |
|
|
date the application was filed, and that law is continued in effect |
|
|
for that purpose. |
|
|
SECTION 5. This Act takes effect September 1, 2025. |