Texas HB5642 requires real estate license holders to inform buyers about transfer on death deeds during residential real property transactions.

HB5642 amends the Occupations Code to mandate that real estate license holders provide written notice about transfer on death deeds to buyers at the first substantive communication regarding a specific property purchase. The notice must describe the benefits, impacts on wills, and repercussions of not having a will or transfer on death deed. The Texas Real Estate Commission must adopt rules to implement this notice requirement by December 1, 2025. The provisions apply to conduct occurring after January 1, 2026. The act takes effect September 1, 2025.

Texas HB5642 requires real estate license holders to inform buyers about transfer on death deeds during residential real property transactions.

HB5642 amends the Occupations Code to mandate that real estate license holders provide written notice about transfer on death deeds to buyers at the first substantive communication regarding a specific property purchase. The notice must describe the benefits, impacts on wills, and repercussions of not having a will or transfer on death deed. The Texas Real Estate Commission must adopt rules to implement this notice requirement by December 1, 2025. The provisions apply to conduct occurring after January 1, 2026. The act takes effect September 1, 2025.