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HB 3412

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.

89th Legislature (2025) Introduced by Erin Gámez

Texas bill requiring title insurance companies to notify homebuyers of homestead tax exemptions at closing and offer filing assistance, with authorized fees and penalties for non-compliance.

Referred to Insurance
#insurance--general(i0445) #insurance--insurers&agents(i0425) #insurance--property&casualty(i0442) #propertyinterests--homestead(i0616) #propertyinterests--realproperty(i0595) #taxation--property-appraisals&appraisaldistricts(i0792) #taxation--property-exemptions(i0793)
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Bill Summary · HB 3412

Legislative bill overview

HB 3412 requires title insurance companies and agents to provide notice to home buyers about homestead exemptions during closing and offer assistance in filing applications. The bill authorizes these companies to charge a fee for this service and establishes administrative penalties for non-compliance.

Why is this important

Homestead exemptions significantly reduce property tax burdens for owner-occupied homes, yet many eligible homeowners miss filing deadlines or are unaware of the benefit. By requiring notification at the critical closing moment when buyers are already interacting with title companies, the bill aims to increase exemption uptake and ensure homeowners receive tax relief they're entitled to receive.

Potential points of contention

  • Fee authorization concerns: Allowing title companies to charge for assistance with a government benefit may be viewed as profiting from services homeowners could complete themselves, potentially creating barriers for lower-income buyers
  • Compliance burden: Title companies may argue this creates additional administrative costs and complexity during an already document-heavy closing process, potentially delaying transactions
  • Scope and enforcement: Unclear definitions of what "assistance" entails and how administrative penalties will be enforced could create inconsistent implementation across the state

Compiled from official sources — confirm details with the bill’s official record.

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