Regular Session
Government Affairs & Regulatory Compliance Analysis
Effective immediately, HB4170 mandates that all legal actions regarding Private Transfer Fees (PTFs) must be filed exclusively in the county where the real property is located, overriding any contractual "Choice of Venue" clauses. This legislation impacts real estate developers, HOAs, and financial institutions by removing the ability to litigate these disputes in corporate headquarters counties, unless the property is physically located there.
Rep. Richard Hayes·House Bill·Regular Session
Texas Attorney General (Exempted from the mandatory venue requirement)
This legislation has regulatory implications for the following Texas businesses and organizations:
Notable regulatory updates (effective 2025-06-20). Consider how these changes may affect your operations.
Affected business types:
lowMinimal cost impact anticipated.
JD Key Consulting provides government affairs and regulatory strategy services. We help businesses navigate Texas agencies, understand legislative impacts, and advocate for their interests.
JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.
Key implementation requirements and action items for compliance with this legislation
Existing Master Service Agreements (MSAs) and Declaration of Covenants (CC&Rs) containing standard venue selection clauses (e.g., "litigation shall occur in Dallas County") are now unenforceable for PTF disputes if the property is elsewhere. You do not need to repaper existing contracts immediately, but you must annotate contract management systems to flag that statutory law supersedes the contract text for these specific disputes.
Direct in-house litigation teams and outside counsel to cease filing PTF suits based on contractual venue provisions immediately. Counsel must verify the physical location of the property before filing any new petition.
No new agency reports are required. However, you must audit your litigation docket. Identify any complaints filed between June 20, 2025, and today; if venue was based on a contract rather than property location, you must amend or nonsuit and refile immediately to avoid prejudice.
There are no new statutory fees. However, filing in the wrong venue will result in "sunk costs" associated with defending against mandatory Motions to Transfer Venue and potential sanctions for filing in a statutorily prohibited forum.
The statute applies to actions "brought under this subchapter," creating uncertainty regarding "mixed action" lawsuits—cases involving both a PTF claim (mandatory venue) and a standard breach of contract claim (contractual venue).
JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.
Schedule a ConsultationInformation presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
This bill's path through the Texas Legislature
Explore more bills from this author and on related topics
Common questions about HB4170
Effective immediately, HB4170 mandates that all legal actions regarding Private Transfer Fees (PTFs) must be filed exclusively in the county where the real property is located, overriding any contractual "Choice of Venue" clauses. This legislation impacts real estate developers, HOAs, and financial institutions by removing the ability to litigate these disputes in corporate headquarters counties, unless the property is physically located there.
HB4170 was authored by Texas Representative Richard Hayes during the Regular Session.
HB4170 was signed into law by Governor Greg Abbott on June 20, 2025.
HB4170 is enforced by Texas Attorney General (Exempted from the mandatory venue requirement).
The regulatory priority for HB4170 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of HB4170 is estimated as "low". This may vary based on industry and implementation requirements.
HB4170 addresses topics including courts, courts--civil procedure, property interests and property interests--real property.
Key dates for HB4170: Effective date is 2025-06-20. Consult with legal counsel regarding applicability.
HB4170 primarily affects property owners and real estate professionals. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.
JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.
