HB3412 - 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.

  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.