Relating to the effect of a tax certificate accompanying a transfer of certain property.

HB 3710 modifies Texas Tax Code Section 31.08 to clarify the effect of tax certificates accompanying property transfers. If a tax certificate wrongly states no delinquent taxes are owed (due to a canceled homestead exemption), the taxing unit's lien on the property is typically extinguished, absolving the new owner of liability for those taxes. However, this exception does not apply to transfers between related family members (first degree), employers/employees, parent companies/subsidiaries, or trusts/beneficiaries. The law applies only to tax certificates issued on or after September 1, 2025.