HB3685 - 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 residential real property.

  89R5466 RDS-D     By: Leo Wilson H.B. No. 3685       A BILL TO BE ENTITLED   AN ACT   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   residential real property.          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   insurance agent; or                 (2)     a representative of a title insurance company, a   title insurance agent, or an attorney for a title insurance company   or title insurance agent.           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   buyer:                 (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   11.13, Tax Code.          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.