New State Laws: How They Impact You

Texas lawmakers stayed busy during last year’s legislative session enacting house bills that will impact home buyers, sellers, renters as well as insurance, real estate and business professionals throughout the state. Now, with the new year underway, those bills have now become laws. According to Texas REALTORS, there are many legislative changes to be aware of in the industry as you move into the new year. If these new laws haven’t directly affected you yet, they likely will before the end of the year. Here are some of the new laws, picked by our staff, that are of relevance to the insurance and real estate industries: 

HOA Resale Certificate Fees (HB 1588)

This bill places a $375 cap on what a Homeowners Association (HOA) can charge for a resale certificate while limiting the fee for an update to $75. It decreases the turnaround time for a resale certificate from 7 to 5 days. Any subdivision of 60 lots or more is required to publish their information (including fees) in a publicly accessible database. The damage for failure to deliver on time has increased from $500 to $5,000.  

Fair Housing (HB 1153)

This bill ensures that The Texas Fair Housing Act now meets and matches The Federal Fair Housing Act, offering the same exemptions. The Texas Fair Housing Act will not affect the sale or rental of single-family houses sold or rented without the services of someone in the business of selling or renting homes. This bill also defines those who are considered “a person in the business of selling or renting a dwelling.”

Appraisers & Appraisals  (HB 2533)

This bill allows appraisers to do an evaluation without complying with the Uniform Standards of Professional Appraisal Practice (USPAP) in certain situations. Since evaluations are used to help lenders determine property value for smaller loans and are intended to be quicker and less detailed than a full property appraisal, this may help ease a busy appraiser’s workload in an intense housing market.

Floodplain Notice (HB 531)

This bill amends the old property code requiring a landlord of residential rental property to provide a written notice (at or before signing a lease) regarding whether the property is in a 100-year floodplain and whether the property has flooded at least once in the past five years. The bill allows the tenant to terminate the lease if the landlord does not provide the notice as required  and the tenant suffers loss or damage due to flooding. 

Security Deposit Option (HB 1783) 

This bill allows landlords to offer tenants an option to pay a nonrefundable recurring fee in lieu of a security deposit. The bill allows the fee to be used to purchase insurance coverage to pay for damages and unpaid rent that the tenant is liable for under the lease agreement. It prohibits the landlord from submitting a claim to an insurer unless the tenant is notified by the landlord about damages within 30 days of the tenant moving out. If the tenant challenges the claim for damages and wins, the landlord cannot file an insurance claim for insurance purchased with the fee.

Warranties (HB 2110)

This bill puts into effect the automatic transfer of a manufacturer’s warranty on air conditioning systems (and other warranties) to be conveyed with residential real property as if the new owner of the system is the original purchaser. No forms are required to fill out and there will be no fees allowed.