bill making agents explain transfer on death deeds to buyers

The text as introduced · 583 words

90R4257 RAL-D

By: Garcia of Bexar
H.B. No. 1014

A BILL TO BE ENTITLED

AN ACT

relating to the disclosure of information regarding a transfer on

death deed in certain residential real property transactions.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter L, Chapter 1101, Occupations Code, is

amended by adding Section 1101.564 to read as follows:

Sec. 1101.564. DISCLOSURE OF INFORMATION REGARDING

TRANSFER ON DEATH DEED. (a) In this section:

(1) "Residential real property" has the meaning

assigned by Section 1101.563.

(2) "Transfer on death deed" has the meaning assigned

by Section 114.002, Estates Code.

(b) At the time of a license holder's first substantive

communication with a party relating to a proposed purchase of

specific residential real property, the license holder shall

provide to the party written notice in at least a 10-point font that

provides information regarding a transfer on death deed. The notice

must:

(1) describe a transfer on death deed, including:

(A) the benefits of a transfer on death deed;

(B) the impact of a transfer on death deed on a

will; and

(C) the repercussions of an owner of real

property dying without a will or transfer on death deed; and

(2) include a statement regarding the ability of a

purchaser to execute a transfer on death deed when closing the real

estate purchase and the role of the purchaser's title insurance

company in assisting with the execution and filing of the transfer

on death deed.

(c) The commission by rule shall prescribe the text of the

notice required under Subsection (b).

(d) A license holder shall provide the notice required under

Subsection (b) by:

(1) personal delivery;

(2) first class mail or overnight common carrier

delivery service; or

(3) e-mail, including by providing the notice:

(A) in the body of the e-mail;

(B) as an attachment to the e-mail; or

(C) through a link in the body of the e-mail, with

a specific reference to the notice in the body of the e-mail.

(e) A license holder is not required to provide the notice

required by Subsection (b) if:

(1) the license holder meets with a party who the

license holder knows is represented by another license holder; or

(2) the communication occurs at a property that is

held open for any prospective buyer and the communication concerns

that property.

(f) The commission shall publish and make available on the

commission's Internet website the notice required under Subsection

(b).

(g) A license holder shall maintain a link to the notice

required under Subsection (b) in a prominent location on the home

page of each Internet website maintained by the license holder for

advertising the license holder's services.

(h) At the time an offer to purchase residential real

property is signed, the license holder assisting the buyer with the

offer shall advise each buyer, in writing, that the buyer may

execute a transfer on death deed for the property.

SECTION 2. (a) Not later than December 1, 2027, the Texas

Real Estate Commission shall adopt rules to implement Section

1101.564, Occupations Code, as added by this Act.

(b) Section 1101.564, Occupations Code, as added by this

Act, applies only to conduct that occurs on or after January 1,

2028. Conduct that occurs before January 1, 2028, is governed by

the law in effect immediately before the effective date of this Act,

and the former law is continued in effect for that purpose.

SECTION 3. This Act takes effect September 1, 2027.