March 29, 2023
The Texas House is scheduled to hear the House's version of the state budget for the upcoming biennium (HB 1) on the House floor next Thursday. The Senate Finance Committee adopted the Senate's version of the budget on Monday of this week.
80 days of the 140-day legislative session have passed, and legislative activity in the state Capitol percolates around the clock. This is considered the mid stretch of the legislative session, with the final, hard push to the session's conclusion ramping up in the weeks following Easter.
There are 58 days remaining in the Texas Legislature's 88th Session.
Private Transfer Fee Developments – AG Files Lawsuit Against Covenant Clearinghouse
Two recent developments are impacting legislative discussions regarding statutory enhancement of Private Transfer Fee prohibitions. Last week, the Attorney General filed a lawsuit against Covenant Clearinghouse. Additionally, in another related lawsuit filed by Highland Homes against Covenant Clearinghouse, a summary judgement was handed down in favor of Highland Homes. See the two cases here:
Texas AG Files Petition Against Covenant Clearinghouse
Motion of Summary Judgement in Highland Homes Case
Out of deference to the suit filed by the Attorney General and other similar pending litigation, TLTA is pausing progress on the private transfer fee bill that was part of our affirmative agenda in order to closely monitor the status of these legal proceedings and evaluate what impact they might have on the current statute.
Update on NTRAPS Bill (Right-to-List Agreements)
House Bill 4126, which would codify right-to-list agreements (or Non-Title Recording Agreements for Personal Services (NTRAPS)), was heard in committee Wednesday.
Some background on this issue: Since 2018 real estate brokerage firms have been offering homeowners as little as $300 in exchange for signing decades-long listing agreements. These NTRAPS agreements are filed in property records, which can produce unreasonable restraints on future ability to sell or refinance property due to unwarranted transactional costs -- a system contrary to our industry's continued support for certainty of landownership, and the reason why ALTA and TLTA have been so vocal on this bill.
The agreements that would be codified if HB 4126 was passed are harmful to consumers in many ways, including the following:
-
Creation of unreasonably long contractual obligations
- Cost of cancellation or non-compliance 5, 10 or 15 years later is 3% of property value
- Penalties significantly greater than upfront payment
- Binding of future successors (who were not a part of the original agreement)
House Bill 4126 is outlier legislation that runs counter to bills in over 15 other states seeking to ban or limit the use of long-term listing agreements.
Former TLTA President Dawn Moore testified at yesterday's hearing on behalf of our industry and Texas consumers. Also providing testimony and national perspective on this issue was Elizabeth Blosser, ALTA's Vice President of Government Affairs. We appreciate our advocates who travelled to Austin to provide testimony about our strong concerns with this bill.
Additional development on this issue worth noting:
North Carolina is now the fifth state to sue brokerage firm over right-to-list agreements.
TLTA's Affirmative Legislative Agenda: Bills We're Working to Pass
TLTA's advocacy team is supporting passage of the following bills during the 88th Legislative Session. These affirmative legislative agenda items were approved by
TLTA's Board of Directors as recommended by our
Legislative Committee, which is chaired by Steve Streiff. These statutory changes would improve real estate transactions statewide:
Trust as Grantee Clarification
SB 801 (Sen. Hughes) |
HB 4281 (Rep. Longoria)
Review TLTA's One-Pager
Status: Passed by Texas Senate, Referred to House B&I Committee
Remote Ink Notarization
SB 1780 (Sen. Parker) |
HB 5004 (Rep. Capriglione)
Review TLTA's One-Pager
Status: Referred to Senate Jurisprudence Committee, Referred to House Judiciary and Civil Jurisprudence Committee
March 23, 2023
The House Ways and Means Committee advanced HB 2 this week.
HB 2 is the property tax reform bill identified by Speaker Phelan as a House priority this session. As we have reported, the budget surplus this session is spurring property tax reform ideas across the Capitol complex. We will continue to monitor development of this bill (and comparable Senate proposals, including SBs
3,
4, and
5, which were passed by the Senate yesterday), and alert you if there are developments of which you should be aware.
Also heard in committee this week was the Supplemental Appropriations Bill,
SB 30, the vehicle through which legislative appropriators cover deficits in funding for the previous biennium and accomplish other short term budgetary needs. Development of the state budget impacts every policy area and bill being considered by the Texas Legislature, and we continue to monitor this process for developments that could impact our industry or real estate marketplace interests.
There are 66 days remaining in the legislative session in progress.
TLTA is Actively Working on These Bills That Could Impact Our industry
While we are monitoring more than 100 bills this session that could impact our industry or the state's real estate marketplace
(see Other Bills TLTA Is Monitoring blurb below), some of the bills on that list require active engagement by our advocacy team. We are working with the bill authors and other stakeholders to address concerns and seek improvements to these bills to avoid unintended consequences and preserve our daily functions as title agents and underwriters.
HB 1382 / SB 2067
Relating to the public sale of real property taken in execution of a judgment.
HB 3573 / SB 895
Relating to modernizing the regulation of money services businesses.
HB 2017 / SB 2340
Relating to innovation waivers for certain insurance laws, regulations, and requirements; authorizing a fee.
SB 147
Relating to the purchase of or acquisition of title to real property by certain aliens or foreign entities.
HB 2788
Relating to the purchase of or acquisition of title to real property by certain aliens or foreign entities; creating a criminal offense.
HB 1075
Relating to certain property interests of a foreign government in agricultural land.
HB 3470 / SB 1441
Relating to the authority of the attorney general to acquire by eminent domain certain real property owned by aliens or foreign entities.
SB 711
Relating to the purchase of or other acquisition of title to real property by prohibited foreign actors.
SB 552
Relating to prohibiting contracts or other agreements with certain foreign-owned companies in connection with agricultural land.
HB 4006
Relating to the purchase of or acquisition of title to real property by certain foreign entities.
HB 3499 / SB 1900
Relating to foreign terrorist organizations, including the acquisition of title to real property by, the compilation of information regarding, certain civil actions brought against, and the prosecution of certain organized crime offenses involving a foreign terrorist organization.
SB 1427
Relating to certain criminal conduct and organizations that threaten the security of this state and its residents and borders; increasing criminal penalties.
HB 611
Relating to the creation of the criminal offense of unlawful disclosure of residence address or telephone number.
HB 4126
Relating to the regulation of future listing right purchase contracts; imposing a fee; requiring an occupational registration.
HB 4
Relating to the regulation of the collection, use, processing, and treatment of consumers' personal data by certain business entities; imposing a civil penalty.
HB 4513
Relating to the authority of an individual, before purchasing real property to be used as the individual's residence homestead, to request from the chief appraiser of the applicable appraisal district a preliminary determination of whether the property would qualify for a disabled veteran exemption if purchased by the individual and used for that purpose.
HB 1823
Relating to certain documents or instruments purporting to convey real or personal property.
HB 1915 / SB 604
Relating to land services performed by a landman.
HB 219
Relating to the release of a deed of trust or other contract lien securing a home loan after payoff by mortgagor.
HB 207
Relating to the exclusion of certain conveyances from classification as sham or pretended sales.
HB 1901
Relating to the filing of an annual audit report by a title insurance company, title insurance agent, or direct operation.
HB 1195 / SB 319
Relating to the authority of a county to require photo identification to file certain documents with the county clerk.
HB 2186
Relating to the authority of a county clerk to require a person to present photo identification to file a document in the real property records of a county.
HB 5209
Relating to a temporary decrease in the rates of state sales and use taxes applicable to certain sales the payment for which is made using a decentralized network in the blockchain.
HB 92 / HJR 9
Relating to the authority of a municipality, county, or property owners' association to prohibit or regulate certain activities on residence homestead property.
TLTA's Affirmative Legislative Agenda: Bills We're Working to Pass
TLTA's advocacy team is supporting passage of the following bills during the 88th Legislative Session. These affirmative legislative agenda items were approved by TLTA's Board of Directors as recommended by our Legislative Committee, which is chaired by Steve Streiff. These statutory changes would improve real estate transactions statewide:
Private Transfer Fee Statute Enhancement
HB 2447 (Rep. Darby) |
SB 1578 (Menéndez)
Review TLTA's One-Pager
Status: Referred to House B&I Committee, Referred to Senate State Affairs Committee
Trust as Grantee Clarification
SB 801 (Sen. Hughes) |
HB 4281 (Rep. Longoria)
Review TLTA's One-Pager
Status: Passed by Texas Senate, Referred to House B&I Committee
Remote Ink Notarization
SB 1780 (Sen. Parker) |
HB 5004 (Rep. Capriglione)
Review TLTA's One-Pager
Status: Referred to Senate Jurisprudence Committee, Filed in House
March 16, 2023
The bill filing deadline passed on Friday, March 10 with the Texas Legislature filing a record number of bills, exceeding the previous record by more than 800. Click the chart below to see additional data on the record number of bills filed, historical comparisons, and more:
Higher bill counts in both chambers this legislative session translate to increased opportunities and risks for our industry and the state's real estate marketplace. TLTA's team of advocates are monitoring all bills filed and will continue alerting you if bills of significance to our industry gain momentum in the legislative process, which kills roughly 3 of every 4 bills filed.
Great news: All of our legislative agenda items have been filed in both chambers. Our deepest respect and gratitude for all our bill authors, who are noted individually below.
There are 73 days remaining in the legislative session in progress.
TLTA Legislative Priority, Trust as Grantee Clarification, Passed by Texas Senate, Filed in House
Among the industry priorities on TLTA's affirmative legislative agenda this session is a Trust as Grantee Clarification bill. This important real estate marketplace legislation would clarify that a deed conveying title to a trust (as opposed to naming the trustee of that trust) should be deemed to be a conveyance into the trustee.
Learn more in this one-pager.
Last week the Senate version of this bill,
SB 801, was approved by the Senate State Affairs Committee. Leslie Johnson, TLTA Board member and Judiciary Committee Chair, testified in support of SB 801 during the hearing. Today, SB 801 made it to the Senate floor, where it was approved by the full Senate. It's now headed to the Texas House for that chamber's consideration.
We are also excited to report that an identical companion bill,
HB 4281, was filed in the House by Rep. Oscar Longoria, who chairs the House Business and Industry Committee.
Thank you, Chairman Hughes and Chairman Longoria for your leadership on this important real estate marketplace legislation.
TLTA Legislative Priority, Remote Ink Notarization as Part of RON Framework, Filed in House - HB 5004
Allowing the use of Remote Ink Notarization (RIN) within the existing Remote Online Notary (RON) statutory framework is an important part of TLTA's affirmative agenda for the 88th Legislative Session, and we are pleased to announce that Rep. Giovanni Capriglione filed
HB 5004.
Learn more in this one-pager.
As reported in last week's Dateline, Sen. Tan Parker filed the companion bill in the Senate.
Thank you, Sen. Parker and Rep. Capriglione for supporting the continuation of this effective real estate marketplace tool.
Bills TLTA Advocates Are Working to Pass
TLTA's advocacy team is supporting passage of the following bills during the 88th Legislative Session. These affirmative legislative agenda items were approved by
TLTA's Board of Directors as recommended by our Legislative Committee, which is chaired by Steve Streiff. These statutory changes would improve real estate transactions statewide:
Private Transfer Fee Statute Enhancement
HB 2447 (Rep. Darby) |
SB 1578 (Menéndez)
Review TLTA's One-Pager
Status: Filed in House, Filed in Senate
Trust as Grantee Clarification
SB 801 (Sen. Hughes) |
HB 4281 (Rep. Longoria)
Review TLTA's One-Pager
Status: Passed by Texas Senate, Files in House
Remote Ink Notarization
SB 1780 (Sen. Parker) |
HB 5004 (Rep. Capriglione)
Review TLTA's One-Pager
Status: Filed in Senate, Filed in House
March 9, 2023
The Texas Legislature's bill filing deadline is this Friday, March 10. We are pleased to announce that all of TLTA's affirmative agenda for the legislative session have been filed in either the Texas House or the Texas Senate. We're grateful for our bill authors and we celebrate their leadership on these important industry and real estate marketplace priorities. Learn more about TLTA's affirmative legislative agenda below.
There are 80 days remaining in the legislative session in progress.
Hearing on TLTA-supported SB 801 today at 9 a.m. in Senate State Affairs Committee. TLTA Board Member Leslie Johnson to testify.
SB 801, a TLTA priority bill filed by Sen. Bryan Hughes, will be heard today at 9 a.m. in the Senate State Affairs Committee, which Hughes chairs. This important real estate marketplace legislation would clarify that a deed conveying title to a trust (as opposed to naming the trustee of that trust) should be deemed to be a conveyance into the trustee.
Learn more in this one-pager.
Leslie Johnson, TLTA Board member and Judiciary Committee Chair, will testify in support of SB 801 at this morning's hearing:
Watch the hearing beginning at 9 a.m. this morning, Thursday, March 9 »
TLTA priority RIN bill filed in Texas Senate - SB 1780
Allowing the use of Remote Ink Notarization (RIN) within the existing Remote Online Notary (RON) statutory framework is an important part of TLTA's affirmative agenda for the 88th Texas Legislative Session in progress now, and we are pleased to announced that Sen. Tan Parker filed that bill this week - SB 1780.
Learn more about SB 1780 in this one-pager »
Bills TLTA Advocates Are Working to Pass
TLTA's advocacy team is supporting passage of the following bills during the 88th Legislative Session. These affirmative legislative agenda items were approved by
TLTA's Board of Directors as recommended by our Legislative Committee, which is chaired by Steve Streiff. These statutory changes would improve real estate transactions statewide:
Private Transfer Fee Statute Enhancement
HB 2447 (Rep. Darby) |
SB 1578 (Menéndez)
Review TLTA's One-Pager
Status: Filed in House, Filed in Senate
Trust as Grantee Clarification
SB 801 (Sen. Hughes)
Review TLTA's One-Pager
Status: Hearing in Senate State Affairs scheduled
Remote Ink Notarization
SB 1780 (Sen. Parker)
Review TLTA's One-Pager
Status: Filed
Bills TLTA Is Monitoring
TLTA's legislative team reviews all bills filed during the session and monitors those that might impact our industry or the state's real estate marketplace. If these bills begin to move through the process and TLTA takes official positions on them, we’ll provide more detailed information about our stance and how they might affect you and your business.
Review Current Bills to Watch List »
Questions About TLTA's Legislative Process?
TLTA's Legislative Committee, Local Legislative Liaisons, our industry's grassroots network and the TLTA PAC Board of Governors are all part of TLTA's team of engaged legislative advocates.
Learn More About TLTA's Legislative Process and How You Can Get Involved »
March 1, 2023
Texas House Speaker Phelan announced two packages of bills that will be House priorities this session, including a package focused on
economic and workforce development. We expect to see additional announcements from the House regarding high priority legislation in the coming days.
There are 88 days remaining in the 88th Texas Legislative Session.
Senate State Affairs Committee Holding Hearing on Foreign Ownership Bills Tomorrow, Thursday, March 2
You may recall that last session a bill was filed related to foreign ownership of real estate, which as drafted would have negatively impacted our industry. TLTA shared its concerns with the legislature about that bill. The issue has resurfaced this session with myriad bills filed that could impact our industry when closing transactions involving foreign buyers.
The Senate State Affairs Committee is meeting tomorrow, Thursday, March 1, to hear two of those bills:
TLTA Legislative Committee Chair Steve Streiff will be testifying on behalf of TLTA at the hearing.
When TLTA's Board of Directors met last week, they voted to oppose SB 147 as filed. We continue working with SB 147's bill author and other stakeholders to improve the bill, and our concerns have been communicated to Senate State Affairs leadership, members and staff as part of the prep for tomorrow's hearing.
You can
watch the Senate State Affairs hearing tomorrow, Thursday, March 2 at 9 am.
As foreign ownership of U.S. real estate continues to grow as a hot button political issue, we may see additional bills filed on this subject. TLTA's advocacy team will continue to monitor and work to address each of these.
Bills TLTA Advocates Are Working to Pass
TLTA's advocacy team is supporting passage of the following bills during the 88th Legislative Session. These affirmative legislative agenda items were approved by
TLTA's Board of Directors as recommended by our
Legislative Committee, which is chaired by Steve Streiff. These statutory changes would improve real estate transactions statewide:
Bills TLTA Is Monitoring
TLTA's legislative team reviews all bills filed during the session and monitors those that might impact our industry or the state's real estate marketplace. If these bills begin to move through the process and TLTA takes official positions on them, we’ll provide more detailed information about our stance and how they might affect you and your business.
Review Current Bills to Watch List »
Questions About TLTA's Legislative Process?
TLTA's Legislative Committee, Local Legislative Liaisons, our industry's grassroots network and the TLTA PAC Board of Governors are all part of TLTA's team of engaged legislative advocates.
Learn More About TLTA's Legislative Process and How You Can Get Involved »