Texas Senate Bill SB2402

Texas 2019 - 86th Regular

Caption

Relating to technical defects in instruments affecting real property.

Impact

This change reduces the statute of limitations for filing legal action related to defects in real property instruments, which may lead to expedited resolutions in property disputes. Moreover, it aims to streamline property transactions by clarifying the conditions under which property-related documents are considered lawfully recorded. Instruments that had minor technical faults but were recorded more than six months prior are deemed valid, thereby reducing the uncertainty in property ownership that can arise from such defects.

Summary

SB2402 addresses technical defects in legal instruments affecting real property by amending the Civil Practice and Remedies Code. The bill stipulates that individuals who have a right of action for the recovery of real property due to specified defects in such instruments must file suit within six months of the instrument being recorded with the county clerk. Previously, this period was two years. The identified defects include issues such as missing signatures from corporate officers, lack of a corporate seal, and acknowledgment failures in the documentation.

Contention

While the bill aims to promote clarity and efficiency in property law, it has generated discussion regarding the potential impact on property rights. Critics might argue that shortening the time frame for filing suits could disadvantage individuals who discover defects later than the six-month window allows, which can be particularly problematic in complex property transactions. Supporters contend that the measure is necessary to prevent prolonged legal battles over property ownership and to create a more predictable legal environment.