TX HB3710

Amends Section 31.08 of the Tax Code to address situations where a tax certificate erroneously indicates no delinquent taxes are due because a residence homestead exemption was improperly allowed and later canceled

Maintains existing protections for property purchasers, extinguishing tax liens and absolving buyers from liability when an erroneous tax certificate accompanies a property transfer, including cases involving canceled homestead exemptions

Creates an exception preventing tax lien extinguishment when property transfers occur between related parties: individuals related within the first degree by blood or marriage, employers and employees, parent companies and subsidiaries, or trusts and their beneficiaries

Keeps the original property owner personally liable for any delinquent taxes, penalties, and interest for the year the tax was imposed, regardless of the property transfer

Applies only to tax certificates issued on or after September 1, 2025