Texas Real Estate Legislative Update - 89th Legislature

The 89th Texas Legislature concluded with significant changes affecting real estate law and practice. Of the 2,551 bills tracked during the session, 368 were passed by the Legislature, with the governor vetoing nine bills. The following summary addresses key legislation impacting real estate transactions, property ownership, landlord-tenant relationships, and related legal frameworks.

Important Note: Unless otherwise specified, all legislative changes discussed herein became effective September 1, 2025, and are currently in force. Residential Real Estate and Landlord-Tenant Law House Bill 47: Sexual Assault Victim Lease Termination Rights

Current Law: Sexual assault victims may now terminate residential leases regardless of where the assault occurred. The previous restriction requiring the offense to occur on the leased premises has been eliminated.

Practice Impact: This expansion of tenant protections requires updated lease termination procedures and consideration in lease dispute matters involving domestic violence situations.

House Bill 2037: Tenant Repair Requirements and Communications Key Changes:

• Tenant-initiated repairs must be performed by municipality-licensed independent contractors, companies, or repairmen
• Managing agents, leasing agents, and resident managers are explicitly designated as landlord agents for tenant notice purposes
• Email communications between landlords and tenants are permitted when both parties have previously communicated via email

Implementation Requirements: Lease agreements should be updated to reflect these notice provisions and electronic communication standards.

Senate Bill 2349: Floodplain Notice Requirements

Modified Requirements: Landlords are exempt from providing floodplain notices for:

• Leases with terms less than 30 days
• Temporary residential leases of 90 days or less created by purchase contracts where buyers occupy before closing or sellers remain after closing

Additional Changes: Floodplain notices no longer require separate written documents, but both landlord and tenant must sign the document containing the notice. These provisions apply to leases entered into or renewed after September 1, 2025.

Property Owners' Associations and Condominium Law House Bill 621: Political Speech in Association Communities

New Protections: Property owners' associations cannot adopt or enforce rules in dedicatory instruments that prohibit government officials and candidates for office from addressing members. Standard meeting regulations (rental fees, occupancy limits, meeting hours) remain enforceable.

Senate Bill 711: Association Transparency and Management Requirements Comprehensive Changes Include:

• Property owner associations with management contracts and condominium associations with 60 or more units must maintain member-accessible websites containing publicly recorded dedicatory instruments
• All associations must amend management certificates within 30 days of any information changes
• Electronic filing of management certificates with the Texas Real Estate Commission (TREC) is mandatory
• Associations cannot collect interest and attorney fees from delinquent owners during periods when management certificates are not properly filed with the county and TREC
• Resale certificate fees are capped at $375
• New eligibility and procedural requirements for architectural review authority in associations with more than 40 lots

Compliance Requirements: Associations must ensure proper filing procedures and website maintenance to preserve collection rights.

Senate Bill 2629: Electronic Meetings and Voting

Authorized Procedures: Condominium unit owners' associations and property owners' associations may conduct meetings electronically or telephonically. Electronic voting is now permitted in addition to absentee voting methods.

Purchase and Sale Agreement Disclosures House Bill 2468: Public Improvement District Disclosure

New Termination Rights: Purchasers have seven days after receiving notice to terminate purchase agreements when sellers fail to disclose that property is located in a public improvement district with a service plan on record.

Effective Date: This provision became effective June 20, 2025, and applies to purchase agreements signed on or after that date.

House Bill 4211: Business Entity Interest Purchases Disclosure and Restriction Requirements:

• Purchase agreements for business entity interests granting exclusive possession of residential real property must disclose that the transaction does not constitute a residential real property purchase
• Contractual provisions requiring foreign court dispute resolution are prohibited
• Contractual provisions obligating purchasers to pay fees or proceeds upon sale of ownership interests are prohibited
• Violations constitute Texas DTPA violations and may trigger Fair Housing Act claims

Effective Date: June 20, 2025

Construction and Mechanics' Liens Senate Bill 841: Trust Fund Assignment Rights

New Assignment Authority: Artisans, laborers, mechanics, contractors, subcontractors, and materialmen may assign beneficial interests in unpaid trust funds upon providing written notice to property owners and project contractors within seven days of assignment.

Senate Bill 929: Lien Deadline Extensions

Automatic Extensions: Mechanics' and materialmen's lien deadlines falling on Saturdays, Sundays, or legal holidays automatically extend to the next business day. The bill also corrects section references in Property Code Section 53.124 regarding lien inception timing.

Effective Date: May 21, 2025

Property Protection and Ownership Restrictions House Bill 4350: Personal Information Protection

Expanded Coverage: County, local, and federal peace officers, along with state district attorney criminal investigators, may have personal information omitted or redacted from public instruments.

Effective Date: June 20, 2025

Senate Bill 17: Foreign Ownership Prohibitions

Ownership Restrictions: New prohibitions prevent governmental entities, companies, organizations, and individuals from "designated countries" (currently China, Iran, Russia, and North Korea) from owning Texas real property. Exceptions exist for U.S. citizens, lawful permanent residents, and others lawfully present in the United States.

Due Diligence Impact: This legislation requires enhanced ownership structure analysis and verification procedures.

Document Fraud and Unlawful Occupancy Senate Bill 1333: Criminal Penalties for Fraudulent Documents

Criminal Provisions: Creates misdemeanor and felony penalties for persons presenting false, fraudulent, or fictitious leases, deeds, or conveyances with intent to enter or remain on real property.

Civil Remedies: Adds Property Code Chapter 24B, establishing procedures for property owners to have sheriffs or constables remove unlawful occupants from residential real property.

Senate Bill 1734: Judicial Review of Fraudulent Instruments

New Procedures: Establishes a "Petition for Judicial Review of Document or Instrument Purporting to Convey Title to or an Interest in Real Property" process and expands presumptions regarding fraudulent property documents. The bill provides standardized petition forms.

Combined Effect: These measures work together to address fraudulent property document issues and unlawful occupancy situations.

Justice Court Eviction Procedures Senate Bill 38: Comprehensive Eviction Law Reform

Background and Purpose: Senate Bill 38's core purpose is to bring consistency and clarity back to the eviction process by clarifying that only the Texas Legislature has the authority to modify or suspend eviction procedures, which aims to prevent future confusion and ensure a consistent process is followed statewide. This legislation was primarily designed to address squatting issues while reforming the broader eviction process.

Major Changes Include:

1. Accelerated Court Timeline Requirements The bill reforms the civil eviction process to require courts to act within 10-21 days of an eviction filing – faster than previously, but longer than the five days in the original Senate version. This creates mandatory judicial action deadlines that did not previously exist.
2. Limited Summary Disposition Process The bill limits expedited "summary disposition" evictions strictly to specific circumstances. In uncontested squatter or forcible entry cases, courts can issue judgment without a trial if the occupant fails to present valid evidence within four days. This process is significantly more limited than originally proposed and focuses primarily on squatter situations rather than traditional landlord-tenant disputes.
3. Shortened Appeal Timeline SB 38 sets a strict five-day deadline for tenants to appeal an eviction judgment by filing a bond, cash deposit, or statement of inability to afford payment of court costs with the justice court not later than the fifth day after the date the judgment is signed. This represents a significant reduction from previous appeal windows.
4. Enhanced Service Requirements Constables must attempt service within five business days under the new simplified notice delivery requirements, creating specific timeframes for process service that promote faster case resolution.
5. Jurisdictional Clarifications The bill provides extensive clarifications regarding justice court subject matter jurisdiction in forcible entry and detainer cases, addressing inconsistencies that had developed across different jurisdictions.
6. Pro Se Representation Enhancements Enhanced procedures for pro se appearances before justice courts, including standardized forms and clearer procedural guidance for self-represented parties.
7. Writ of Possession Modifications Updated procedures for obtaining and executing writs of possession, including specific timing requirements and enhanced due process protections.

Legislative History and Modifications The bill faced substantial revisions during the legislative process due to tenant advocacy concerns. In its introduced form, the bill included a "summary disposition" process which allowed landlords to secure eviction judgments in as little as four days and without a hearing (which was later amended to five days in a later iteration proposed in the process before being further limited in the final version.

Implementation Timeline:

• September 1, 2025: Texas Supreme Court required to adopt implementing rules (currently in effect)
• January 1, 2026: Effective date for eviction petitions filed on or after this date

Practical Impact for Practitioners: These changes will take effect on January 1, 2026, and are expected to impact landlords in residential lease disputes. SB38 introduces new requirements and procedures designed to enhance due process and improve consistency in eviction proceedings.

Key Preparation Steps:

1. Review all current eviction procedure templates and update for new timelines
2. Ensure familiarity with summary disposition limitations and appropriate case types
3. Update client advisories regarding shortened appeal windows
4. Prepare for accelerated court scheduling requirements
5. Review service requirements with process servers and constables
6. Update retainer agreements and fee structures to account for accelerated timelines

Risk Management Considerations: The shortened timelines create increased malpractice exposure for missed deadlines. The five-day appeal window is particularly critical, as missing this deadline could result in significant client prejudice. Practitioners should implement enhanced calendar and deadline management systems to accommodate these accelerated timeframes.

Eminent Domain and Water Rights House Bill 2011: Expanded Repurchase Rights

Enhanced Rights: Former eminent domain property owners, their heirs, successors, and assigns have expanded repurchase rights when acquiring entities fail to pay ad valorem taxes before the third anniversary of the due date.

Senate Bill 2550: Water Rights Disclosure Exceptions

Disclosure Modifications: Groundwater rights and surface water rights are added as exceptions to seller disclosure obligations for property transfers involving coastal property, annexations, public improvement districts, and certificated water or sewer service areas.

Technical Updates Senate Bill 372: Trustee Definition Expansion

Broadened Definitions: Expands trustee and substitute trustee definitions to include individuals, corporations, governmental entities, business trusts, estates, trusts, partnerships, associations, and other legal entities.

Effective Date: May 19, 2025

This summary addresses selected bills affecting real estate law and should not be considered a comprehensive analysis of all relevant legislation.