The bill, H.B. No. 2968, introduces a new chapter in the Business & Commerce Code that mandates corporate owners of multiple single-family homes used for rental purposes to register with the Secretary of State. This registration requires detailed information, including the corporate owner's name, address, type of business entity, and the number of single-family homes owned. The Secretary of State is authorized to charge a reasonable fee for the registration and renewal of certificates, which will expire annually. Additionally, corporate owners who fail to comply with the registration requirements may face civil penalties of $500 for each day of violation.

Furthermore, the bill establishes an annual study and report requirement regarding the purchases, rentals, and sales of single-family homes by corporate owners, which will be compiled by the Texas Real Estate Research Center. This report will analyze trends, impacts on housing costs, and the availability of homes for purchase and rental. The bill also includes provisions that prevent county clerks from recording title transfers for single-family homes purchased by corporate owners unless specific registration documentation is provided. The implementation of these requirements will begin on January 1, 2026, with the overall act taking effect on September 1, 2025.

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