Texas 2025 - 89th Regular

Texas House Bill HB3412

Filed

2/26/25

Out of House Committee

Voted on by House

Out of Senate Committee

Voted on by Senate

Governor Action

Bill Becomes Law

Caption

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.

Impact

The impact of HB 3412 on state laws includes the incorporation of clear guidelines regarding the obligations of title insurance companies related to homestead exemptions. By formalizing these responsibilities, the bill seeks to streamline the exemption application process, thereby potentially increasing the number of homeowners eligible for tax relief. Furthermore, the ability for title companies to charge a fee for these services adds a structured financial element to the assistance provided, which could incentivize compliance and thoroughness in helping buyers navigate their homestead exemption opportunities.

Summary

House Bill 3412 aims to enhance the assistance provided to home buyers regarding residence homestead exemption applications from ad valorem taxation. This legislation mandates title insurance companies and their agents to inform buyers during the real estate closing process about the eligibility and procedures for obtaining homestead exemptions. Specifically, the bill requires a notice detailing the relevant criteria, deadlines, and application instructions to be provided to the buyers as part of the closing settlement on residential property transactions. As an added benefit, title insurance companies are also obligated to assist buyers in applying for these exemptions unless the buyer chooses to waive this right.

Contention

While this bill is primarily focused on aiding home buyers, there may be debates surrounding the imposition of fees by title insurance companies for this service. Concerns may arise over whether such fees could create additional barriers for buyers, particularly for those with limited financial resources. Moreover, the repeal of specific sections from existing tax code reflects a shift in how the exemption application process is managed, which could lead to discussions about the broader implications of this legislative change for existing applicants and potential legal interpretations of the new rules. Overall, HB 3412 is positioned to reshape the interactions between title insurance companies and home buyers significantly.

Companion Bills

No companion bills found.

Previously Filed As

TX 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.

TX SB489

Providing for a universal homestead exemption from ad valorem property taxation.

TX HB3108

Relating to proof of eligibility for an exemption from ad valorem taxation of the residence homestead of a person.

TX HB301

Relating to an exemption from ad valorem taxation of the total appraised value of the residence homesteads of certain elderly individuals and their surviving spouses.

TX HB3499

Relating to the eligibility of an individual to receive an exemption from ad valorem taxation of the individual's residence homestead if the homestead is occupied by a registered sex offender.

TX HB382

Relating to an exemption from ad valorem taxation of the total appraised value of the residence homesteads of certain elderly persons and their surviving spouses.

TX HB252

Relating to an exemption from ad valorem taxation of the total appraised value of the residence homesteads of certain elderly persons and their surviving spouses.

TX HB4090

Relating to an exemption from ad valorem taxation of the total appraised value of the residence homesteads of certain disabled first responders and their surviving spouses.

TX HB5445

Relating to an exemption from ad valorem taxation of a portion of the appraised value of the residence homestead of a school district employee.

TX HB972

Relating to an exemption from ad valorem taxation of a portion of the appraised value of a property other than a residence homestead that is the primary residence of an adult who has an intellectual or developmental disability and who must be related to the owner or trustee of the property within a certain degree by consanguinity.

Similar Bills

TX HB982

Relating to the authority of a taxing unit other than a school district, county, municipality, or junior college district to establish a limitation on the amount of ad valorem taxes that the taxing unit may impose on the residence homesteads of certain low-income individuals who are disabled or elderly and their surviving spouses.

TX HB3212

Relating to providing for a reduction of the appraised value of a residence homestead for ad valorem tax purposes for the first tax year in which the owner qualifies the property for a residence homestead exemption based on the amount by which the limitation on increases in the appraised value of a residence homestead reduced the appraised value of the owner's former residence homestead for the last tax year in which the owner qualified the former residence homestead for a residence homestead exemption.