HB 3685
AN ACT relating to notice of possible eligibility for a residence
89th Regular Session
Jan 14, 2025 - Jun 2, 2025 • Session ended
Awaiting Committee Assignment
Bill filed, pending referral to House committee
Committee
Not yet assigned
Fiscal Note
Not available
What This Bill Does
Requires title insurance companies and agents to provide homebuyers with a notice about potential homestead tax exemptions during the property closing process. The notice must inform buyers that their property may qualify for tax exemptions that can reduce their property taxes and include an application form for these exemptions. This helps ensure homebuyers are aware of and can easily access potential tax savings opportunities when purchasing residential property in Texas.
Subject Areas
Bill Text
relating to notice of possible eligibility 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 a purchase of 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. DEFINITION. In this subchapter, "residence homestead" has the meaning assigned by Section 11.13, Tax Code. Sec. 2702.152. APPLICABILITY. This subchapter does not apply to the closing or settlement of a purchase of residential real property if the closing or settlement is not actually handled by: (1) a title insurance company, a title insurance agent, or an attorney for a title insurance company or title (2) a representative of a title insurance company, a title insurance agent, or an attorney for a title insurance company Sec. 2702.153. NOTICE OF ELIGIBILITY FOR RESIDENCE HOMESTEAD EXEMPTION. In connection with the closing and settlement of a purchase of residential real property in this state, a title insurance company or title insurance agent shall provide to the (1) a notice that the property may qualify for one or more residence homestead exemptions from ad valorem taxation, which would reduce the amount of taxes imposed on the property; and (2) an application form for an exemption under Section SECTION 2. The change in law made by this Act applies only to a purchase of residential real property under a contract entered into on or after the effective date of this Act. SECTION 3. This Act takes effect September 1, 2025.
Bill History
Bill filed: AN ACT relating to notice of possible eligibility for a residence
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