Insurance companies and large investors could not buy Texas homes as investments.

What it does

The bill would bar covered institutional investors, including insurance companies, companies that with their affiliates hold at least $100 million in total assets, and groups that own or control 100 or more single-family residences in the United States, from buying Texas single-family homes for an investment purpose. An investment purpose includes collecting rent, gaining value, or reselling for profit, but not buying a home to live in it. Before closing, a buyer that is a business entity would have to give the seller a written certification saying it is not a covered investor or naming the exception that allows the purchase, and would have to keep those records for four years. The attorney general could sue, a court could order the home sold to an allowed buyer within 180 days after the judgment is final, a knowing violation could bring a civil penalty of up to the greater of $100,000 or 20 percent of the purchase price for each home, and the bill would take effect September 1, 2027.