82R6942 PMO-D
By: Anderson of Dallas H.B. No. 2254
A BILL TO BE ENTITLED
AN ACT
relating to scope and validity of correction instruments in the
conveyance of real property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 5, Property Code, is
amended by adding Section 5.027 to read as follows:
Sec. 5.027. CORRECTION INSTRUMENTS. (a) Except as
provided by Subsection (b), a correction instrument may correct
only an ambiguity or error in an instrument of conveyance to
transfer real property or an interest in real property if the
ambiguity or error:
(1) relates to the description of or extent of the
interest conveyed; or
(2) resulted in:
(A) the conveyance of real property or an
interest in real property that the parties to the original
instrument did not intend to convey; or
(B) the failure to convey real property or an
interest in real property that the parties to the original
instrument intended to convey.
(b) A correction instrument may not correct an ambiguity or
error in an instrument of conveyance to transfer real property or an
interest in real property not originally conveyed in the instrument
of conveyance for purposes of a sale of real property under a power
of sale under Chapter 51.
(c) A correction instrument must be:
(1) executed by each party to the original instrument
the correction instrument is executed to correct; and
(2) recorded in each county in which the original
instrument that is being corrected is recorded.
(d) A correction instrument that does not comply with this
section is:
(1) binding on:
(A) a party to the instrument and the party's
heirs; and
(B) a subsequent purchaser who:
(i) does not pay a valuable consideration
for the real property or an interest in the real property; or
(ii) has notice of the correction
instrument; and
(2) void as to a creditor or to a subsequent purchaser
who:
(A) pays a valuable consideration for the real
property or an interest in the real property; and
(B) does not have notice of the correction
instrument.
(e) A correction instrument that complies with this section
or is otherwise binding relates back and is effective as of the date
of the original instrument the correction instrument is executed to
correct.
SECTION 2. The changes in law made by this Act apply only to
a correction instrument executed on or after the effective date of
this Act. A correction instrument executed before the effective
date of this Act is governed by the law in effect 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, 2011.