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A BILL TO BE ENTITLED
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AN ACT
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relating to notice of possible eligibility for a residence |
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homestead exemption from ad valorem taxation provided to a home |
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buyer by a title insurance company or title insurance agent in |
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connection with the closing and settlement of a purchase of |
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residential real property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 2702, Insurance Code, is amended by |
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adding Subchapter D to read as follows: |
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SUBCHAPTER D. OTHER CLOSING SERVICES |
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Sec. 2702.151. DEFINITION. In this subchapter, "residence |
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homestead" has the meaning assigned by Section 11.13, Tax Code. |
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Sec. 2702.152. APPLICABILITY. This subchapter does not |
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apply to the closing or settlement of a purchase of residential real |
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property if the closing or settlement is not actually handled by: |
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(1) 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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(2) a representative of a title insurance company, a |
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title insurance agent, or an attorney for a title insurance company |
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or title insurance agent. |
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Sec. 2702.153. NOTICE OF ELIGIBILITY FOR RESIDENCE |
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HOMESTEAD EXEMPTION. In connection with the closing and settlement |
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of a purchase of residential real property in this state, a title |
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insurance company or title insurance agent shall provide to the |
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buyer: |
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(1) a notice that the property may qualify for one or |
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more residence homestead exemptions from ad valorem taxation, which |
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would reduce the amount of taxes imposed on the property; and |
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(2) an application form for an exemption under Section |
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11.13, Tax Code. |
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SECTION 2. The change in law made by this Act applies only |
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to a purchase of residential real property under a contract entered |
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into on or after the effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2025. |