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Real Estate Wrap Up for 89th Texas Legislature

This session of the 89th Texas Legislature addressed several issues that will affect licensed real estate agents and buyers, sellers, tenants and landlords.

This recap from Texas REALTORS outlines the key bills:

REAL ESTATE WINS: TEXAS REALTORShttps://public.texasrealestate.com/635515/Real+Estate+Wins+from+the+89th+Legislative+Session+Booklet.pdf

TAKEAWAYS

🏠Licensing and Regulation of Real Estate Professionals SB 1968 eliminates subagency, requires written agreement before showing or writing an offer and allows for showings without a written agreement for customers (no advice or opinion). The Education Standards Advisory Committee will address changes to licensing requirements. Watch for upcoming classes on these changes to go into law Jan. 1, 2026 and changes to the Texas REALTORS representation agreements.
🏠Property Tax Relief Homestead SJR 2, SB 4, SJR 85 & SB 23 increases homestead exemption to $140,000, increases over 65 and disabled exemption to $60,000. To be voted on Nov. 4, 2025.
🏠Property Tax Relief Investment HB9 & HJR 1 changes tax code to exempt $125,000 of appraised value for income-producing personal property
🏠Prohibition of Capital Gains Tax SJR 18 prohibits taxes on capital gains. To be voted on Nov. 4, 2025
🏠Property Appraisal System Reforms HB 1533 increases transparency, accessibility and fairness in the property appraisal and protest process. Effective Sept. 1, 2025 with some provisions starting Jan. 1, 2026
🏠Housing Affordability SB 15, SB 785, SB 1567, HB 24, HB 2559 & HB 3526 these bills aim to increase housing availability and affordability by easing zoning and development restrictions
🏠Homeowners' Associations: Prohibition on Fines for Discolored Vegetation During Water Restrictions HB 517 Effective Sept. 1, 2025
🏠HOA Regulation of Assembly and Speech HB 621 Effective Sept. 1, 2025
🏠Regulation of Property Owners Associations SB 711 extends transparency for condos, limits regulation of fencing. Effective Sept. 1, 2025.
🏠Commercial SB 2477 & SB 840 these bills focus on commercial real estate development and conversions to residential
🏠Termination Rights for Public Improvement District Notice Failure HB 2468 strengthens the rights of buyers to receive the PID notice. Effective immediately.
🏠Floodplain Notice Requirements for Leased Dwellings SB 2349 exempts short-term and temporary leases. Effective Sept. 1, 2025
🏠 Insurance Policy Declination and Cancellation Notices HB 2067 amends Texas Insurance Code to enhance transparency regarding declination, cancellation or non-renewal of insurance policies. Effective Jan. 1, 2026
🏠Eviction Procedures for Unauthorized Occupants SB 38 supports more uniform efficient and predictable eviction process. Effective Sept. 1, 2025