Gámez Homestead Bill Also Repeals Two Tax Code Provisions

The text as introduced · 624 words

89R5137 RDS-F

By: Gámez
H.B. No. 3412

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.