July 3, 2025

In This Issue:

Legislative Update: Foreign Ownership Prohibition and Housing Bill Highlights from 89th Regular Session
ICYMI: Reduction of Title Insurance Basic Premium Rate Did Not Go Into Effect July 1

Legislative Update: Foreign Ownership Prohibition and Housing Bill Highlights from 89th Regular Session

TLTA | July 3, 2025

Foreign Ownership Bill Approved During 89th Legislative Session

Foreign ownership of U.S. real estate continues to be a hot button political issue, and once again this session Texas lawmakers filed bills attempting to address this controversial topic. TLTA and our building trades partners worked in tandem to provide guidance to lawmakers trying to find workable solutions for legislators to consider. In the end, lawmakers approved SB 17, which will go into effect July 1.

You can learn more about this new foreign ownership prohibition here.

As reported in a previous edition of Dateline, earlier versions of these foreign ownership bills would have greatly impacted our industry when closing each transaction. Thanks to our community's good work and the leadership of the elected officials advancing these bills, SB 17 ensures that the integrity of title is maintained and that TLTA members are not deputized to enforce the law, conduct extensive due diligence, or face new liability.

Housing Affordability Bills and More

During Gov. Abbott's State of the State address delivered in February, he identified housing affordability as a challenge that lawmakers needed to address during the legislative session.

While we've previously reported here in Dateline on housing-related bills passed during the recently concluded legislative session that will impact title industry operations, there are other housing bills you should be aware of that could impact housing in your community.

Legislators filed hundreds of housing-related bills this session attempting to reduce regulations, increase housing supply, and make it easier to afford a home. The following housing-sector bills were approved during the 89th Session:

SB 15 (local regulation of lot size)
SB 785 (reducing limitation on location of manufactured housing) (effective Sept. 1, 2026)
SB 840 (multifamily construction on property zoned for commercial / industrial)
SB 2477 (commercial to residential conversions)
HB 24 (zoning protest changes)

As previously reported here in Dateline. Lawmakers also approved a property tax relief package that will only be effective if Texas voters approve the measures on ballots this November. Learn more about the Texas Legislature's property tax package here.

ICYMI: Deed Fraud Bill Impacting Title Industry On Agenda for Special Session That Will Commence July 21

At the conclusion of the 89th Session veto period, Gov. Abbott announced that he's calling lawmakers back for a special session to address several bills that he vetoed. You can read his announcement and review the issues that will be included on the special session agenda here. Note: The governor can expand the special session agenda at any time.

Among the bills on the initial special session agenda is SB 648, a deed fraud bill supported by the county clerks association and passed by lawmakers during the 89th session. TLTA's advocacy team worked with legislators and the clerks to improve this bill prior to passage, and we are ready to continue that work during the special session. Additionally, we will be working with the governor’s office and Sen. West to seek expansion of the call and bills to include a special criminal statute on seller impersonation and deed fraud. You can read the governor's veto statement on SB 648 here (scroll to page 17 of 34).

ICYMI: Reduction of Title Insurance Basic Premium Rate Did Not Go Into Effect July 1

TLTA | June 26, 2025

Texas Department of Insurance recently announced that the reduction in title rates ordered earlier this year will not go into effect July 1. You can read TDI's announcement here.

A subsequent decision by the 15th Court of Appeals further affirms that the temporary injunction ordered by the Travis County District Court will stand while the appeals court deliberations continue.

The history of TDI’s rate review, the subsequent rate reduction order, and TLTA's suit requesting the injunction can be found here.