HB5642 - Relating to the disclosure of information regarding a transfer on death deed in certain residential real property transactions.

  89R13999 RAL-D     By: Garcia of Bexar H.B. No. 5642       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 1101.562 to read as follows:           Sec.   1101.562.     DISCLOSURE OF INFORMATION REGARDING   TRANSFER ON DEATH DEED. (a) In this section:                 (1)  "Residential real property" means a:                       (A)  single-family house;                       (B)  duplex, triplex, or quadraplex; or                       (C)     unit in a multiunit residential structure in   which title to an individual unit is transferred to the owner of the   unit under a condominium or cooperative system.                 (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 an 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, 2025, the Texas   Real Estate Commission shall adopt rules to implement Section   1101.562, Occupations Code, as added by this Act.          (b)  Section 1101.562, Occupations Code, as added by this   Act, applies only to conduct that occurs on or after January 1,   2026.  Conduct that occurs before January 1, 2026, 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, 2025.