HB733 - Relating to verification of citizenship or legal residency for purposes of certain contracts for or concerning the purchase of residential real property located in platted subdivisions; creating a criminal offense.

  89R1218 PRL-D     By: Bell of Montgomery H.B. No. 733       A BILL TO BE ENTITLED   AN ACT   relating to verification of citizenship or legal residency for   purposes of certain contracts for or concerning the purchase of   residential real property located in platted subdivisions;   creating a criminal offense.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 5, Property Code, is amended by adding   Subchapter I to read as follows:   SUBCHAPTER I. VERIFICATION AND FILING REQUIREMENTS FOR CERTAIN   RESIDENTIAL REAL PROPERTY TRANSACTIONS           Sec. 5.301.  DEFINITIONS. In this subchapter:                 (1)     "Commercial real property" means real property   that is held or used for the production of income, including   industrial real property.                 (2)     "Residential real property" means real property   that is improved and is designed principally for residential   occupancy or vacant land that may be improved for that purpose. The   term includes an individual unit of a condominium or cooperative.   The term does not include commercial real property.           Sec.   5.302.     APPLICABILITY OF SUBCHAPTER. This subchapter   applies only to:                 (1)     an executory contract for conveyance of   residential real property located in a platted subdivision that   allows the purchaser to take immediate possession of the property   and make periodic payments toward the purchase price before the   deed is delivered to the purchaser; and                 (2)     a contract in which a potential seller of   residential real property located in a platted subdivision grants   an individual an option to purchase the property that includes or is   combined or executed concurrently with a residential lease   agreement.           Sec.   5.303.     SELLER VERIFICATION OF PURCHASER'S CITIZENSHIP   OR LEGAL RESIDENCY REQUIRED. A seller or potential seller may not   enter into a contract to which this subchapter applies unless the   purchaser or potential purchaser presents to the seller or   potential seller proof of United States citizenship or legal   residency in the form of:                 (1)  a United States passport;                 (2)     a Certificate of United States Citizenship,   Certificate of Naturalization, United States Citizen   Identification Card, or other document denoting United States   citizenship issued by the federal Department of Homeland Security   or the United States Department of State including an   identification photograph;                 (3)  a combination of:                       (A)  a social security number; and                       (B)     photo identification in the form of an   unexpired driver's license, election identification certificate,   or personal identification card issued by a state; or                 (4)  a combination of:                       (A)  a passport issued by a foreign country; and                       (B)     a Permanent Resident Card, Temporary   Resident Card, Employment Authorization Card, or other document   denoting legal residency issued by the federal Department of   Homeland Security or the United States Department of State   including an identification photograph.           Sec.   5.304.     FILING REQUIREMENTS TO SELL RESIDENTIAL REAL   PROPERTY. A seller or potential seller who enters into a contract   to which this subchapter applies shall, not later than the 30th day   after the date the contract is executed, file for recording with the   clerk of each county in which property subject to the contract is   located:                 (1)     an affidavit from the seller or potential seller   affirming that the purchaser or potential purchaser presented proof   to the seller or potential seller of the purchaser's or potential   purchaser's United States citizenship or legal residency status in   a form listed in Section 5.303; and                 (2)  a copy of the contract.           Sec.   5.305.     CRIMINAL PENALTY. (a) A person commits an   offense if the person violates this subchapter.           (b)     An offense under this section is a Class B misdemeanor,   except that if it is shown on the trial of the offense that the   defendant has previously been:                 (1)     finally convicted of an offense under this   section, the offense is a Class A misdemeanor; or                 (2)     finally convicted two or more times of an offense   under this section, the offense is a state jail felony.          SECTION 2.  The changes in law made by this Act apply only to   a contract entered into on or after the effective date of this Act.   A contract entered into before the effective date of this Act is   governed by the law in effect immediately before the effective date   of this Act, and that law is continued in effect for that purpose.          SECTION 3.  This Act takes effect September 1, 2025.