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A BILL TO BE ENTITLED
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AN ACT
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relating to the disclosure of information regarding a transfer on |
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death deed in certain residential real property transactions. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter L, Chapter 1101, Occupations Code, is |
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amended by adding Section 1101.562 to read as follows: |
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Sec. 1101.562. DISCLOSURE OF INFORMATION REGARDING |
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TRANSFER ON DEATH DEED. (a) In this section: |
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(1) "Residential real property" means a: |
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(A) single-family house; |
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(B) duplex, triplex, or quadraplex; or |
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(C) unit in a multiunit residential structure in |
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which title to an individual unit is transferred to the owner of the |
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unit under a condominium or cooperative system. |
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(2) "Transfer on death deed" has the meaning assigned |
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by Section 114.002, Estates Code. |
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(b) At the time of a license holder's first substantive |
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communication with a party relating to a proposed purchase of |
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specific residential real property, the license holder shall |
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provide to the party written notice in at least a 10-point font that |
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provides information regarding a transfer on death deed. The notice |
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must: |
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(1) describe a transfer on death deed, including: |
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(A) the benefits of a transfer on death deed; |
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(B) the impact of a transfer on death deed on a |
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will; and |
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(C) the repercussions of an owner of real |
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property dying without a will or transfer on death deed; and |
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(2) include a statement regarding the ability of a |
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purchaser to execute a transfer on death deed when closing the real |
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estate purchase and the role of the purchaser's title insurance |
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company in assisting with the execution and filing of the transfer |
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on death deed. |
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(c) The commission by rule shall prescribe the text of the |
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notice required under Subsection (b). |
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(d) A license holder shall provide the notice required under |
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Subsection (b) by: |
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(1) personal delivery; |
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(2) first class mail or overnight common carrier |
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delivery service; or |
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(3) e-mail, including by providing the notice: |
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(A) in the body of the e-mail; |
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(B) as an attachment to an e-mail; or |
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(C) through a link in the body of the e-mail, with |
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a specific reference to the notice in the body of the e-mail. |
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(e) A license holder is not required to provide the notice |
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required by Subsection (b) if: |
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(1) the license holder meets with a party who the |
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license holder knows is represented by another license holder; or |
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(2) the communication occurs at a property that is |
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held open for any prospective buyer and the communication concerns |
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that property. |
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(f) The commission shall publish and make available on the |
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commission's Internet website the notice required under Subsection |
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(b). |
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(g) A license holder shall maintain a link to the notice |
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required under Subsection (b) in a prominent location on the home |
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page of each Internet website maintained by the license holder for |
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advertising the license holder's services. |
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(h) At the time an offer to purchase residential real |
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property is signed, the license holder assisting the buyer with the |
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offer shall advise each buyer, in writing, that the buyer may |
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execute a transfer on death deed for the property. |
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SECTION 2. (a) Not later than December 1, 2025, the Texas |
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Real Estate Commission shall adopt rules to implement Section |
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1101.562, Occupations Code, as added by this Act. |
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(b) Section 1101.562, Occupations Code, as added by this |
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Act, applies only to conduct that occurs on or after January 1, |
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2026. Conduct that occurs before January 1, 2026, is governed by |
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the law in effect immediately before the effective date of this Act, |
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and the former law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2025. |