Relating to notice of and assistance in filing an application for a residence homestead exemption from ad valorem taxation provided to a home buyer by a title insurance company or title insurance agent in connection with the closing and settlement of certain transactions pertaining to residential real property; authorizing a fee; providing for the imposition of an administrative penalty.

HB 3412 requires title insurance companies and agents in Texas to provide homebuyers with clear information about eligibility for a residence homestead property tax exemption during real estate closings. The bill mandates that title companies explain exemption criteria, filing deadlines, and application steps, and actively assist buyers in applying for the exemption unless the buyer waives this service. Title companies may charge a reasonable, disclosed fee for this assistance, and violations could result in administrative penalties up to $500. This bill directly affects homebuyers purchasing residential property and title insurance providers handling real estate transactions in Texas.