Regular Session
Government Affairs & Regulatory Compliance Analysis
SB1940 establishes a non-probate "Transfer on Death" mechanism for manufactured homes classified as personal property (chattel), effective September 1, 2025. This allows owners to designate a beneficiary on the Statement of Ownership (SOL), bypassing probate but creating strict 365-day transfer deadlines that lenders and community operators must monitor to avoid title limbo.
Sen. Bryan Hughes·Senate Bill·Regular Session
This legislation has regulatory implications for the following Texas businesses and organizations:
Notable regulatory updates (effective 2025-09-01). Consider how these changes may affect your operations.
Affected business types:
lowMinimal cost impact anticipated.
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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
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
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Common questions about SB1940
SB1940 establishes a non-probate "Transfer on Death" mechanism for manufactured homes classified as personal property (chattel), effective September 1, 2025. This allows owners to designate a beneficiary on the Statement of Ownership (SOL), bypassing probate but creating strict 365-day transfer deadlines that lenders and community operators must monitor to avoid title limbo.
SB1940 was authored by Texas Senator Bryan Hughes during the Regular Session.
SB1940 was signed into law by Governor Greg Abbott on June 20, 2025.
SB1940 is enforced by Texas Department of Housing and Community Affairs (TDHCA).
The regulatory priority for SB1940 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of SB1940 is estimated as "low". This may vary based on industry and implementation requirements.
SB1940 addresses topics including housing, housing--manufactured housing, probate, probate--wills & admin of estates and property interests.
Key dates for SB1940: Effective date is 2025-09-01. Rulemaking: Adopt rules and update Statement of Ownership applications to accommodate beneficiary designations (discretionary authority granted, but operational necessity by effective date). (2025-09-01). Consult with legal counsel regarding applicability.
SB1940 establishes the following penalties: administrative penalty of Forfeiture of ownership transfer (Designation becomes void) for Beneficiary fails to submit application for Statement of Ownership and proof of death within 365 days of the owner's death.. Consult with legal counsel for specific applicability to your situation.
SB1940 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.
