Texas House bill by Rep. Noble regulates residential property interests controlled by business entities

Passed bill authored by State Rep. Candy Noble aims to regulate residential property interests controlled by business entities, prohibit discrimination, and require disclosures about property interest purchases, according to the Texas Legislature website.

In the House, 27 Democrats and 83 Republicans voted in favor of the bill, while 26 Democrats opposed it.

Meanwhile, in the Senate, 10 Democrats and 20 Republicans voted in favor, while one Democrat voted against it.

Candy Noble introduced the bill in the Texas House on Monday, March 10, during the 89th regular legislative session.

Noble graduated from Hardin-Simmons University.

Noble, a Republican, was elected to the Texas State House in 2019 to represent the state’s 89th House district, replacing previous state representative Jodie Laubenberg.

According to the Texas Legislature, the bill’s official text was summarized as follows: ‘Relating to certain residential property interests controlled by certain entities’.

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill amends the Texas Property Code to regulate residential property interests controlled by business entities, such as partnerships, corporations, and LLCs, providing exclusive possession of properties like single-family homes and duplexes. It mandates disclosure that purchasing an interest is not an acquisition of the property itself. Disputes must be handled in courts of Texas or the U.S., not alternate tribunals. Discrimination in actions regarding the interest is prohibited, with owners allowed to transfer interests without managing entity approval or incurring extra fees. Violations are deemed deceptive trade practices. Additionally, certain property use by religious organizations is exempt from specific existing restrictions. The bill takes effect Sept. 1, 2025.

The bill was co-authored by Rep. James Frank (Republican – District 69), Rep. Brooks Landgraf (Republican – District 81), and Rep. Jeff Leach (Republican – District 67), along with 33 other authors.

The bill received its final legislative approval on Thursday, May 29, and was signed into law by Gov. Greg Abbott on Friday, June 20.

Bills in Texas go through a multi-step legislative process, including committee review, debates, and votes in both chambers before reaching a final decision. Each session, there are typically thousands of bills introduced, but only a portion successfully navigate the process to become law.

You can read more about the bills and other measures here.