HB4170

Regular Session

Relating to venue in certain actions involving private transfer fees for real property.

ModeratePlan for compliance

Low Cost

Effective:2025-06-20

Enforcing Agencies

Texas Attorney General (Exempted from the mandatory venue requirement)

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: June 20, 2025 (Legislation passed with two-thirds vote, triggering immediate effect).
Compliance Deadline: Immediate. Any lawsuit filed on or after June 20, 2025, must adhere to the new venue rules.
Agency Rulemaking: None. This is a self-executing procedural statute enforced by the Texas court system.

Immediate Action Plan

1. Issue Litigation Directive: Instruct outside counsel today that venue for PTF disputes is no longer discretionary; suits must be filed in the property's county.
2. Audit Recent Filings: Review all lawsuits filed since June 20, 2025. If you filed in a headquarters county based on a contract, move the case voluntarily before the defendant files a motion.
3. Update Defense Protocol: If your organization is sued regarding a PTF in a non-property county (by a private party), immediately file a Motion to Transfer Venue citing Texas Property Code Sec. 5.208.
4. Note AG Exemption: Do not attempt to use this statute to transfer venue if the Texas Attorney General initiates an enforcement action; the AG is explicitly exempt from this requirement.

Operational Changes Required

Contracts

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.

Hiring/Training

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.

Reporting & Record-Keeping

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.

Fees & Costs

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.

Strategic Ambiguities & Considerations

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).

Risk: Courts may sever claims or force the entire litigation into the county of the property.
Guidance: Until appellate courts rule, assume the "county of property" rule will dominate to prevent case fragmentation.

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Legislative Timeline

This bill's path through the Texas Legislature

TopicsCourts Courts--civil Procedure Property Interests Property Interests--real Property

Official Analysis

View HRO Analysis View All Bill Documents

BILL ANALYSIS

H.B. 4170

By: Hayes

Judiciary & Civil Jurisprudence

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Private transfer fees are charges payable on the transfer of an interest in real property, typically to a third party who has no continued interest in the property. In 2011, the Texas Legislature enacted legislation that prohibited the enforcement of new private transfer fee obligations and established certain requirements for existing private transfer fee obligations. However, the law does not currently specify where lawsuits relating to private transfer fees must be filed. The bill author has informed the committee that this lack of specificity can create uncertainty and potential inconsistency in venue determinations, which are particularly important in these lawsuits because private transfer fees directly impact real property rights and values. Without a clear venue provision, litigation relating to these fees might occur in counties distant from the affected property, which can cause practical difficulties for property owners who need to challenge or resolve disputes regarding these fees. H.B. 4170 seeks to address these issues by requiring actions relating to private transfer fees, except those brought by the attorney general, to be brought in the county where the real property subject to the private transfer fee is located.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 4170 amends the Property Code to require an action brought under statutory provisions relating to private transfer fees for interests in real property, other than an action brought by the attorney general, to be brought in the county in which the real property is located. The bill applies only to an action filed on or after the bill's effective date. An action filed before the bill's effective date is governed by the law as it existed immediately before the bill's effective date, and that law is continued in effect for that purpose.

EFFECTIVE DATE

September 1, 2025.

House Authors

Rep. Richard HayesRepublican · Primary Author

Senate Sponsor

Sen. Bryan HughesRepublican · Primary Sponsor

Bill Text(with markup)

H.B. No. 4170

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to venue in certain actions involving private transfer
	fees for real property.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Subchapter G, Chapter 5, Property Code, is
	amended by adding Section 5.208 to read as follows:
	Sec. 5.208. VENUE. Notwithstanding any other law, an
	action brought under this subchapter, other than an action brought
	by the attorney general, must be brought in the county in which the
	real property is located.
	SECTION 2. Section 5.208, Property Code, as added by this
	Act, applies only to an action filed on or after the effective date
	of this Act. An action filed before the effective date of this Act
	is governed by the law as it existed immediately before the
	effective date of this Act, and that law is continued in effect for
	that purpose.
	SECTION 3. This Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


April 6, 2025

TO:	Honorable Jeff Leach, Chair, House Committee on Judiciary & Civil Jurisprudence

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	HB4170 by Hayes (Relating to venue in certain actions involving private transfer fees for real property.), As Introduced

No significant fiscal implication to the State is anticipated.

It is assumed that any costs associated with the bill could be absorbed using existing resources.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

212 Office of Court Administration, Texas Judicial Council

LBB Staff:

JMc, KDw, NTh

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Frequently Asked Questions

Common questions about HB4170

What does Texas HB4170 do?

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. Implementation Timeline Effective Date: June 20, 2025 (Legislation passed with two-thirds vote, triggering immediate effect).

Who authored HB4170?

HB4170 was authored by Texas Representative Richard Hayes during the Regular Session.

When was HB4170 signed into law?

HB4170 was signed into law by Governor Greg Abbott on June 20, 2025.

Which agencies enforce HB4170?

HB4170 is enforced by Texas Attorney General (Exempted from the mandatory venue requirement).

How urgent is compliance with HB4170?

The compliance urgency for HB4170 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of HB4170?

The cost impact of HB4170 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does HB4170 address?

HB4170 addresses topics including courts, courts--civil procedure, property interests and property interests--real property.

Legislative data provided by LegiScanLast updated: November 25, 2025

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