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Bill

HB 5642

Relating to the disclosure of information regarding a transfer on death deed in certain residential real property transactions.

89th Legislature (2025) Introduced by Josey Garcia

HB 5642 mandates disclosure of transfer on death deeds to buyers in Texas residential property transactions, protecting purchasers from post-sale ownership complications.

Left pending in subcommittee
#probate--wills&adminofestates(i0590) #propertyinterests--realproperty(i0595) #texasrealestatecommission(v4353)
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Bill Summary · HB 5642

Legislative bill overview

HB 5642 requires enhanced disclosure requirements for transfer on death (TOD) deeds in residential real property transactions in Texas. The bill mandates that sellers and real estate professionals inform buyers about the existence and implications of TOD deeds affecting the property being purchased.

Why is this important

Transfer on death deeds allow property owners to designate beneficiaries outside of probate, but buyers may not discover these encumbrances until after purchase, potentially complicating ownership or creating disputes. Clear disclosure requirements protect buyers from unexpected post-purchase complications and ensure informed decision-making in real estate transactions.

Potential points of contention

  • Implementation burden: Real estate professionals and title companies must verify and disclose TOD deed status, potentially increasing transaction costs and timeline
  • Scope ambiguity: Unclear whether disclosure applies to all TOD deeds or only those that would significantly impact buyer interests and property rights
  • Liability concerns: Determining who bears responsibility for incomplete or inaccurate TOD deed disclosures and what legal remedies exist for buyers harmed by non-disclosure

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

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