Bill > HB3685

This bill requires title insurance companies and title insurance agents to provide home buyers with specific information about potential property tax exemptions during the closing and settlement process for residential real estate purchases. Specifically, when closing a real estate transaction, these entities must give buyers a notice explaining that the property may qualify for one or more residence homestead exemptions, which can reduce the amount of property taxes owed. The bill also mandates that the title insurance company or agent provide the actual application form for these exemptions, which are detailed in Section 11.13 of the Tax Code. The law will only apply to residential property purchases with contracts entered into on or after the bill's effective date of September 1, 2025. A "residence homestead" in this context refers to a property that serves as a person's primary residence and may qualify for special tax treatment, potentially lowering the property owner's tax burden.

Business and Industry

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB3685