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Bill

HB 3685

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.

89th Legislature (2025) Introduced by Terri Leo-Wilson

Requires title insurance companies to notify home buyers about homestead exemption eligibility during residential property closing.

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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WeVote Research Nonpartisan
Bill Summary · HB 3685

Legislative bill overview

HB 3685 requires title insurance companies and agents to provide home buyers with written notice about their potential eligibility for a residential homestead exemption from property taxes at the time of closing. The bill mandates this notification occur during the settlement process for residential real property purchases in Texas.

Why is this important

Homestead exemptions can significantly reduce property tax liability for primary residences, potentially saving homeowners thousands of dollars annually. Many new homebuyers are unaware of this exemption or miss filing deadlines, resulting in unnecessary tax payments. This bill aims to ensure buyers receive timely information when they're already engaged with title professionals handling their purchase.

Potential points of contention

  • Enforcement and liability: Unclear penalties or liability if title companies fail to provide notice, or disputes over whether notice was properly delivered
  • Scope of responsibility: Whether title insurance professionals should bear responsibility for tax-related notifications that fall outside their core function
  • Notice effectiveness: Whether a notice at closing is sufficient, or if buyers need more detailed guidance on how to actually apply for the exemption

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

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