Bill > HB5642

This bill requires real estate license holders in Texas to provide written notice about transfer on death deeds (TODDs) during residential real estate transactions. A transfer on death deed is a legal document that allows property owners to transfer real estate to a beneficiary upon their death without going through probate. The notice, which must be at least 10-point font, must explain the benefits of TODDs, their impact on wills, and the consequences of dying without a will or TODD. License holders must provide this notice during their first substantive communication with a potential buyer, either through personal delivery, mail, or email. They must also maintain a link to the notice on their website and advise buyers in writing at the time of an offer that they may execute a TODD for the property. The bill applies to residential properties including single-family homes, multi-unit dwellings like duplexes, and condominiums. The Texas Real Estate Commission is required to adopt rules implementing this requirement by December 1, 2025, with the new requirements taking effect on January 1, 2026. The bill aims to increase awareness and understanding of TODDs among property buyers and sellers.