Thank you to all that voted in favor of!! In 2017, voters approved a REALTOR-supported constitutional amendment (Prop 2) to modernize the home equity lending process for property owners. The law clarifies what types of costs and considerations may be included in the calculation of late fees and provides a safe harbor for reasonable late fees. c. You will not post content or take any action on our blog posts that infringes someone elses rights or otherwise violates the law. a. Keeps rollback rate at 8% for special taxing units, including: Renames the rollback rate the voter-approval tax rate, Renames the effective rate the no-new-revenue tax rate., Provides $6.5 billion in additional funding to public education and school employee compensation, Increases the states share of education funding from 38% to 45%, Reduces recapture by 47% ($3.6 billion) in the next biennium, Raises the basic allotment from $5,140 to $6,160 per student, benefiting all school districts, Sales tax revenue from the Wayfair court decision ($300 million per year), Available School Fund revenue to be used for increased school funding ($600 million per year), Any severance tax revenue diversion provided by the Texas Constitution to be used for tax compression. The revised version of the Sellers Disclosure Notice must be used in transactions when the sales contract is executed on or after Sept. 1, 2019. Use the flood map to find their location orhave their Realtor do it for them. Additional changes: The new law creates the Tax Reduction and Excellence in Education Fund to provide further tax rate compression and funding for schools using revenue from several existing sources: The new law also maintains the enhanced transparency measures and automatic rollback elections REALTORS support. House Bill 1254, authored by Rep. Jim Murphy and sponsored by Sen. Kelly Hancock, will allow a property owner to use agricultural land as collateral for a home equity loan. How the legislative session affected Texas real estate, Texas REALTORS support more disclosure for real estate consumers, Assume Nothing About What Your Clients Know. Senate Bill 7 (authored by Sen. Lois Kolkhorst and sponsored by Rep. Dade Phelan) creates the Flood Infrastructure Fund to finance flood mitigation projects. After years of advocating for changes to the states property tax system, Texas REALTORS have succeeded in giving taxpayers more information about how tax rates are set and how to engage in the rate-setting process that determines your property tax bill. Your association read and analyzed every bill that was filed this session to ensure the interests of Texas REALTORS and real estate consumers were protected. If a municipality seeks to annex an area into its limits, the municipality must now hold an election of the affected residents. One attorneys opinion is that if the Seller or their agent sends the outdated version to a Buyer, it is as if they did not receive the SD at all and Buyer could terminate the contract. Abbotts website. One of the most impactful changes is the lowering of school property tax rates statewide, which provides $5.1 billion in tax relief through an average eight-cent tax rate reduction in 2019-2020 and 13-cent reduction in 2020-2021. The 86th Texas Legislature passed two bills that add questions to the Sellers Disclosure Notice (TXR 1406) regarding flooding, such as whether the sellers property is located wholly or partly in a 500-year floodplain or whether the seller has ever filed a claim for flood damage. The following REALTOR-supported bills have been signed into law: REALTOR-supported Senate Bill 1414, authored by Sen. Kelly Hancock and sponsored by Rep. Dade Phelan, establishes clearer parameters around fees that may be assessed for the late payment of rent. REALTOR-supported Senate Bill 962 continues the development of a stronger highway system for Texas. From the Legal Hotline: Investors and Disclosures, TREC Adopts a New Form and Updates the Contracts, What Sellers Disclosure Rules Mean for You and Your Clients. Texas REALTORS supported the bills that resulted in these changes. This new law prevents a governmental entity (city/county) from requiring or prohibiting the use of certain building methods, products, or materials in the construction of a residential or commercial structure. Your association read and analyzed every bill that was filed this session to ensure the interests of Texas REALTORS and real estate consumers were protected. REALTOR-supported House Bill 2439, authored by Rep. Dade Phelan and sponsored by Sen. The new law requires central appraisal districts to create online databases to: The new law also makes changes to the rollback rate that is currently at 8% for local taxing entities: The Texas Legislature unanimously approved legislation to reform the public school finance system and the property tax system: House Bill 3, authored by Rep. Dan Huberty and sponsored by Sen. Larry Taylor. The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. Texas REALTORS supported Senate Bill 339, authored by Sen. Joan Huffman and sponsored by Rep. Geanie Morrison, and House Bill 3815, authored by Rep. Morrison and sponsored by Sen. Huffman. Texas REALTORS is committed to advocating for a strong real estate industry, advancing a culture of continued learning, and staying ahead of issues concerning members and their clients. The 86th Texas Legislature passed two bills that add questions to the Seller's Disclosure Notice (TXR 1406) regarding flooding, such as whether the seller's property is located wholly or partly in a 500-year floodplain or whether the seller has ever filed a claim for flood damage. Study with Quizlet and memorize flashcards containing terms like Which of the following requirements was eliminated as a result of TREC's Sunset Review?, TREC Rule 535.2, Broker Responsibility, requires which of the following to be appointed as a delegated supervisor?, Amendments to TREC Rule 535.148, Receiving an Undisclosed Commission or Rebate, clarify that a license holder CANNOT and more. The new law extends provisions related to that constitutional amendment to ensure no interruption of funding for 10 years, continuing voters desire to invest in transportation projects. Greg Abbott. Then, we monitored bills that had the potential to directly or indirectly affect the Texas real estate industry. The new law implements several REALTOR-supported measures that enhance transparency for taxpayers. Texas REALTORS is committed to advocating for a strong real estate industry, advancing a culture of continued learning, and staying ahead of issues concerning members and their clients. d. You will not post any information intended to sell or advertise a business, product, or service. Texas REALTORS is committed to advocating for a strong real estate industry, advancing a culture of continued learning, and staying ahead of issues concerning members and their clients. The Texas Legislature passed 10 measures that will be on the November 5, 2019 ballot as constitutional amendments for every Texas voter. See a redlined version of the Sellers Disclosure Notice on texasrealestate.com. Immediately after the flood HAR MLS was requiring disclosure of flooding but removed the mandatory field from the MLS. With Texas REALTORS member benefit Mylo, you can quickly find the coverage you need at the best value from 40-plus, Bias Override: Overcoming Barriers to Fair Housing is a free online event on April 24 designed to help real estate, Issues Mobilization and Political Advocacy Assessment, TACS Texas Accredited Commercial Specialist, TAHS Texas Affordable Housing Specialist, TRLP Texas REALTORS Leadership Program, TRLS Texas Residential Leasing Specialist, TRPM Texas Residential Property Manager, Sales of Million-Dollar Homes in Texas Report, Updated Sellers Disclosure Notice Available August 1. a. This pro-consumer law is the most comprehensive update to the Sellers Disclosure statement since the statements creation in 1993. Thanks to your grassroots advocacy efforts during REALTOR Day at the Texas Capitol and timely response to calls for action, Texas REALTORS earned several incredible legislative victories this session that were signed into law by Gov. That will be covered in paragraph 4 of the new TREC contract. Mayor of Cedar Park, Corbin Van Arsdale, let us know at a quarterly office meeting that the Floodplain Ordinances will change within the next few months. While Texas REALTORS has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, Texas REALTORS makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here. REALTOR-supported House Bill 1743, authored by Rep. Tracy King and sponsored by Sen. Brandon Creighton, reduces change-of-use lookback taxes due when a property is changed from agricultural to non-agricultural use. The Texas Legislature agreed that property tax reform is critical, passing REALTOR-supported Senate Bill 2, also known as The Texas Property Tax Reform and Transparency Act.. The State Highway Fund can only be used for constructing, maintaining, and acquiring rights of way for public non-toll roadways. Provide information about when and where a property owners local taxing entities are holding public hearings to set their tax rates. Most cities and counties will be subject to a 3.5% rollback rate, Most cities and counties will have automatic elections if they exceed the rollback rate. How could this come back to haunt them? In 2014, 80% of voters approved an amendment to the Texas Constitution to allocate revenue from oil and gas production tax (a.k.a. July 01, 2019. It may also be used on a voluntary basis for transactions where the contract is executed prior to that date. By interacting with any of our blog posts, you agree to comply with the following terms and conditions: Texas REALTORS, in its sole discretion, reserves the right to remove any content you have uploaded, posted, or submitted onto any of our blog posts if we believe that it violates these terms or conditions. By interacting with any of our blog posts, you agree to comply with the following terms and conditions: Texas REALTORS, in its sole discretion, reserves the right to remove any content you have uploaded, posted, or submitted onto any of our blog posts if we believe that it violates these terms or conditions. What about investors? Applicability of the legal principles discussed in this material may differ substantially in individual situations. The revised disclosure notice is mandatory starting Sept. 1, 2019. With Texas REALTORS member benefit Mylo, you can quickly find the coverage you need at the best value from 40-plus, Bias Override: Overcoming Barriers to Fair Housing is a free online event on April 24 designed to help real estate, Issues Mobilization and Political Advocacy Assessment, TACS Texas Accredited Commercial Specialist, TAHS Texas Affordable Housing Specialist, TRLP Texas REALTORS Leadership Program, TRLS Texas Residential Leasing Specialist, TRPM Texas Residential Property Manager, Sales of Million-Dollar Homes in Texas Report. The revised disclosure notice is mandatory starting Sept. 1 . Currently, when a property changes its use classification from agricultural to non-agricultural, county chief appraisers can assess the owners five years of retroactive taxes based on the new classification, plus 7% interest per year. The 86th Texas Legislature adjourned May 27, closing out a monumental session for Texas real estate consumers and private property rights. You should contact your attorney to obtain advice with respect to any particular issue or problem. Texas REALTORS staff worked on your behalf with the Sunset Commission and staff on final recommendations for TREC that were reflected in the legislationREALTOR-supported Senate Bill 624, authored by Sen. Robert Nichols and sponsored by Rep. Senfronia Thompson. There is a FEMA Flood Map Services Center info map at the end of CRS report House Bill 6 (authored by Rep. Geanie Morrison and sponsored by Sen. Lois Kolkhorst) creates a disaster recovery task force to assist with long-term recovery plans. Investors are not exempt from providing seller disclosure, even though many think they are. As leaders in the fight for property tax and school finance reform, Texas REALTORS issued a press release with comments from Chairman Tray Bates reinforcing our support of the legislation when the final version was rolled out. Senate Bill 6 (authored by Sen. Lois Kolkhorst and sponsored by Rep. Geanie Morrison) creates a disaster response plan for local officials. The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. This needed to happen. Dawn Buckingham, protects Texas property owners. The new law implements the Sunset Commissions recommendations for TREC, such as extending TREC for six years, allowing the agency to maintain its self-directed, semi-independent status, and requiring additional reporting to the Legislature, governor, and Sunset Commission. You will not use our blog posts or posted content to do anything unlawful, misleading, malicious, or discriminatory; and. This new law further updates those provisions to allow more homeowners the ability to access the hard-earned equity in their homes while maintaining the strong consumer protections in the Texas Constitution. House Bill 7 (authored by Rep. Geanie Morrison and sponsored by Sen. Joan Huffman) creates a disaster recovery plan to be enacted by state agencies as needed. The sellers insurance carrier is the best source. Any legal or other information found on this page or at other sites to which we link, should be verified before it is relied upon. The following two REALTOR-supported joint resolutions will help Texans prepare for or recover from disasters. The 86 th Texas Legislature adjourned May 27, closing out a monumental session for Texas real estate consumers and private property rights. Updated Seller's Disclosure Notice Available August 1. c. You will not post content or take any action on our blog posts that infringes someone elses rights or otherwise violates the law. House Joint Resolution 4, authored by Rep. Dade Phelan and sponsored by Sen. Brandon Creighton, proposes a constitutional amendment to create a fund to aid in financing flood mitigation projects, with the following ballot language: The constitutional amendment providing for the creation of the flood infrastructure fund to assist in the financing of drainage, flood mitigation, and flood control projects., House Bill 492/House Joint Resolution 34, authored by Rep. Hugh Shine and sponsored by Sens. Texas REALTORS provides content through various online platforms, including this blog. they bought flooded properties, repair its and put on the market and omit the information related or sometimes appear in the MLS No sellers Disclosure. Usually every local government agency have a department (engineering, planning & zoning, etc) that have maps or should be able to tell you if the property is in a flood zone. severance tax), split between the State Highway Fund and the Economic Stabilization Fund (a.k.a. Texas REALTORS know harmful legislation when we see it. 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