Understanding Texas Property Laws & Codes (2025 Update)

Sy Melo
3 days ago
5 min read

Navigating the New Texas Real Estate Landscape

They say everything is bigger in Texas, and in 2025, that includes the changes to our property laws. Whether you are a seasoned real estate investor in Houston, a first-time homeowner in Dallas, or a landlord managing a portfolio in Austin, the rules of engagement have shifted. The 89th Texas Legislative Session was one of the most active in recent history regarding real estate, delivering sweeping reforms that impact everything from your property tax bill to your rights against unauthorized occupants.

For many property owners, these changes bring welcome relief and stronger protections. For others, particularly in property management, they introduce new compliance hurdles that cannot be ignored. Are you prepared for the new "immediate removal" process for squatters? Have you adjusted your tenant screening criteria to meet the new mandatory disclosure rules?

In this comprehensive 2025 update, we break down the complex legalese of the Texas Property Code into clear, actionable insights. We’ll guide you through the historic property tax cuts, the crackdown on fraudulent deeds, and the new transparency requirements for HOAs. Let’s dive in and ensure your assets are protected under the new law of the land.

1. The Homestead Exemption Victory: A Historic Tax Cut

Code Reference: Texas Tax Code § 11.13; Texas Constitution Art. VIII

The headline news for 2025 is undoubtedly the massive win for Texas homeowners regarding property taxes. Following the approval of the constitutional amendment in November 2025, the standard homestead exemption has increased from $100,000 to $140,000.

What This Means for You

If you own and occupy your primary residence in Texas, the first $140,000 of your home's value is now exempt from school district taxes. For a home valued at $300,000, you are now taxed as if it were worth only $160,000 by your local school district.

For Seniors & Disabled Homeowners: The exemption is even more robust, with total exemptions often exceeding $200,000 depending on local overlays, freezing school tax ceilings at even lower rates.

Actionable Tip:

Check Your Status: Go to your County Appraisal District (CAD) website immediately. Ensure your "Homestead" designation is active. If you bought your home in 2025, you no longer have to wait until January 1st of the following year to file; you can file for a prorated exemption immediately.

2. Squatters No More: The "Immediate Removal" Law (SB 1333)

Code Reference: Texas Penal Code § 30.05; Texas Property Code Updates

Code Reference: Texas Penal Code § 30.05; Texas Property Code Updates

For years, Texas property owners were stuck in a legal nightmare when dealing with squatters. Police would often deem it a "civil matter," forcing owners into a months-long eviction process while their property was damaged. That ended in late 2025 with the passage of Senate Bill 1333.

The New Process

The law now empowers law enforcement to remove unauthorized persons immediately upon the owner filing a sworn affidavit.

The Affidavit: You must sign a document under penalty of perjury stating that the occupant is not a tenant, has no lease, and has no legal right to be there.
Criminal Penalties: SB 1333 also increases penalties for "criminal squatting" and for presenting fraudulent lease documents, making these offenses a higher-grade felony.

Caution: This law comes with heavy penalties for misuse. If you use this process to wrongfully evict a legitimate tenant (even one with a verbal lease), you could face criminal charges and significant civil liability.

Actionable Tip for Investors:

Secure Your Vacants: While this law helps, prevention is better. Ensure all vacant investment properties have clearly posted "No Trespassing" signs and consider installing Wi-Fi-enabled security cameras to provide immediate proof of illegal entry timeframes.

3. HOA Reforms: Transparency and Fairness (Effective Sept 1, 2025)

Code Reference: Texas Property Code Ch. 202 & 209

Homeowners Associations (HOAs) have long been a source of frustration for their lack of transparency and excessive fees. The 2025 legislative updates addressed these grievances head-on.

Key Changes:

Fee Caps: There is now a statutory cap of $375 on the fee an HOA (or its management company) can charge for a resale certificate. This stops the predatory practice of charging thousands of dollars just to transfer paperwork during a home sale.
Website Requirement: All HOAs with 60+ lots or those professionally managed must now maintain a website with all "dedicatory instruments" (bylaws, rules, guidelines) accessible to members.
Drought Protections: HOAs are now prohibited from fining residents for "brown turf" or installing drought-resistant landscaping during municipally declared drought stages.

Actionable Tip:

Review Your Closing Statements: If you sold a property after September 1, 2025, and paid more than $375 for an HOA resale certificate, you may be entitled to a refund of the overage.

4. Landlord-Tenant Updates: Screening and "Right to Cure"

Code Reference: Texas Property Code Ch. 92

Mandatory Screening Criteria Disclosure

Before accepting an application fee, you must provide the applicant with your written tenant screening criteria (credit score minimums, criminal history policy, income requirements). The applicant must sign an acknowledgment of this receipt.

The Risk: If you fail to provide this notice and then reject the applicant, you are legally required to refund their application fee and deposit, and could face a civil penalty of $100 plus three times the amount of the fee.

Preparing for 2026: The "Right to Cure" (SB 38)

Looking ahead to January 1, 2026, SB 38 will grant tenants a statutory "Right to Cure" non-payment of rent. This means landlords will be required to give a specific notice period (often 3 days) allowing the tenant to pay all overdue rent to stop an eviction suit before it is filed. This formalizes what was previously a courtesy into a legal requirement.

Actionable Tip for Landlords:

Update Your Forms: Do not use generic lease applications from the internet. Ensure your application forms have a dedicated "Screening Criteria Acknowledgment" page.

5. Foreign Ownership Ban (SB 17)

Code Reference: Texas Property Code Ch. 5

Effective September 1, 2025, SB 17 prohibits the purchase of real property in Texas by governmental entities or companies headquartered in identifying "countries of concern" (specifically China, Russia, Iran, and North Korea).

Impact: This primarily affects commercial and agricultural land but can impact residential transactions involving foreign-backed investment firms. Title companies are now required to vet the citizenship/corporate structure of buyers more rigorously.

Summary: Adapting to the New Rules

The changes in 2025 reflect a Texas that is protecting property rights more aggressively while demanding higher standards of transparency.

Homeowners won big with the $140k homestead exemption.
Investors gained a powerful tool against squatters but face tighter restrictions on foreign capital.
Landlords must tighten their paperwork game regarding tenant screening to avoid penalties.

At Core Properties Texas, we understand that navigating these legal shifts can be overwhelming, especially if you are dealing with a distressed property, a difficult tenant, or an inherited home with title issues.

Need to sell a property that’s become a legal headache? We buy houses in any condition, handling the paperwork, the repairs, and even the difficult occupants so you don’t have to.

Contact Core Properties Texas Today for a Cash Offer

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