H.B. No. 733 introduces new regulations regarding the verification of citizenship or legal residency for individuals entering into contracts related to the purchase of residential real property located in platted subdivisions. The bill adds a new subchapter to Chapter 5 of the Property Code, which outlines definitions, applicability, and requirements for sellers and potential sellers. Specifically, it mandates that a seller cannot enter into a contract unless the purchaser provides proof of citizenship or legal residency through specified documents, such as a U.S. passport or a combination of a social security number and photo identification. Additionally, sellers must file an affidavit affirming the verification of the purchaser's status along with a copy of the contract within 30 days of execution.

The bill also establishes a criminal penalty for violations of these requirements, classifying the offense as a Class B misdemeanor, with escalated penalties for repeat offenders. The changes will apply only to contracts entered into after the effective date of the Act, which is set for September 1, 2025. This legislation aims to ensure that transactions involving residential real property are conducted with verified legal residency or citizenship status, thereby enhancing compliance and accountability in real estate dealings.

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