Texas 2011 - 82nd Regular

Texas House Bill HB2254 Compare Versions

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Old	New	Differences
1	1	82R19395 PMO-F
2	2	By: Anderson of Dallas H.B. No. 2254
3	3	Substitute the following for H.B. No. 2254:
4	4	By: Workman C.S.H.B. No. 2254
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the scope and validity of correction instruments in the
10	10	conveyance of real property.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subchapter B, Chapter 5, Property Code, is
13	13	amended by adding Sections 5.027, 5.028, 5.029, 5.030, and 5.031 to
14	14	read as follows:
15	15	Sec. 5.027. CORRECTION INSTRUMENTS: GENERALLY. (a) A
16	16	correction instrument that complies with Section 5.028 or 5.029 may
17	17	correct an ambiguity or error in a recorded original instrument of
18	18	conveyance to transfer real property or an interest in real
19	19	property, including an ambiguity or error that relates to the
20	20	description of or extent of the interest conveyed.
21	21	(b) A correction instrument may not correct an ambiguity or
22	22	error in a recorded original instrument of conveyance to transfer
23	23	real property or an interest in real property not originally
24	24	conveyed in the instrument of conveyance for purposes of a sale of
25	25	real property under a power of sale under Chapter 51 unless the
26	26	conveyance otherwise complies with all requirements of Chapter 51.
27	27	(c) A correction instrument is subject to Section 13.001.
28	28	Sec. 5.028. CORRECTION INSTRUMENTS: NONMATERIAL
29	29	CORRECTIONS. (a) A person who has personal knowledge of facts
30	30	relevant to the correction of a recorded original instrument of
31	31	conveyance may execute a correction instrument to make a
32	32	nonmaterial change that results from a clerical error, including:
33	33	(1) a correction of an inaccurate or incorrect element
34	34	in a legal description, such as a distance, angle, direction,
35	35	bearing or chord, a lot, block, unit, building designation or
36	36	section number, an appurtenant easement, a township name or number,
37	37	a municipality, county, or state name, a range number or meridian, a
38	38	certified survey map number, or a subdivision or condominium name;
39	39	or
40	40	(2) an addition, correction, or clarification of:
41	41	(A) a party's name, including the spelling of a
42	42	name, a first or middle name or initial, a suffix, an alternate name
43	43	by which a party is known, or a description of an entity as a
44	44	corporation, company, or other type of organization;
45	45	(B) a party's marital status;
46	46	(C) the date on which the conveyance was
47	47	executed;
48	48	(D) the recording data for an instrument
49	49	referenced in the correction instrument; or
50	50	(E) a fact relating to the acknowledgment or
51	51	authentication.
52	52	(b) A person who executes a correction instrument under this
53	53	section may execute a correction instrument that provides an
54	54	acknowledgment or authentication that is required and was not
55	55	included in the recorded original instrument of conveyance.
56	56	(c) A person who executes a correction instrument under this
57	57	section shall disclose in the instrument the basis for the person's
58	58	personal knowledge of the facts relevant to the correction of the
59	59	recorded original instrument of conveyance.
60	60	(d) A person who executes a correction instrument under this
61	61	section shall:
62	62	(1) record the instrument and evidence of notice as
63	63	provided by Subdivision (2), if applicable, in each county in which
64	64	the original instrument of conveyance being corrected is recorded;
65	65	and
66	66	(2) if the correction instrument is not signed by each
67	67	party to the recorded original instrument, send a copy of the
68	68	correction instrument and notice by first class mail, e-mail, or
69	69	other reasonable means to each party to the original instrument of
70	70	conveyance and, if applicable, a party's heirs, successors, or
71	71	assigns.
72	72	Sec. 5.029. CORRECTION INSTRUMENTS: MATERIAL CORRECTIONS.
73	73	(a) In addition to nonmaterial corrections, including the
74	74	corrections described by Section 5.028, the parties to the original
75	75	transaction or the parties' heirs, successors, or assigns, as
76	76	applicable may execute a correction instrument to make a material
77	77	correction to the recorded original instrument of conveyance,
78	78	including a correction to:
79	79	(1) add:
80	80	(A) a buyer's disclaimer of an interest in the
81	81	real property that is the subject of the original instrument of
82	82	conveyance;
83	83	(B) a mortgagee's consent or subordination to a
84	84	recorded document executed by the mortgagee or an heir, successor,
85	85	or assign of the mortgagee; or
86	86	(C) land to a conveyance that correctly conveys
87	87	other land;
88	88	(2) remove land from a conveyance that correctly
89	89	conveys other land; or
90	90	(3) accurately identify a lot or unit number or letter
91	91	of property owned by the grantor that was inaccurately identified
92	92	as another lot or unit number or letter of property owned by the
93	93	grantor in the recorded original instrument of conveyance.
94	94	(b) A correction instrument under this section must be:
95	95	(1) executed by each party to the recorded original
96	96	instrument of conveyance the correction instrument is executed to
97	97	correct or, if applicable, a party's heirs, successors, or assigns;
98	98	and
99	99	(2) recorded in each county in which the original
100	100	instrument of conveyance that is being corrected is recorded.
101	101	Sec. 5.030. CORRECTION INSTRUMENT: EFFECT. (a) A
102	102	correction instrument that complies with Section 5.028 or 5.029 is:
103	103	(1) effective as of the effective date of the recorded
104	104	original instrument of conveyance;
105	105	(2) prima facie evidence of the facts stated in the
106	106	correction instrument;
107	107	(3) presumed to be true;
108	108	(4) subject to rebuttal; and
109	109	(5) notice to a subsequent buyer of the facts stated in
110	110	the correction instrument.
111	111	(b) A bona fide purchaser of property that is subject to a
112	112	correction instrument may rely on the instrument against any person
113	113	making an adverse or inconsistent claim.
114	114	Sec. 5.031. CORRECTION INSTRUMENTS RECORDED BEFORE
115	115	SEPTEMBER 1, 2011. A correction instrument recorded before
116	116	September 1, 2011, that substantially complies with Section 5.028
117	117	or 5.029 and that purports to correct a recorded original
118	118	instrument of conveyance is effective to the same extent as
119	119	provided by Section 5.030 unless a court of competent jurisdiction
120	120	renders a final judgment determining that the correction instrument
121	121	does not substantially comply with Section 5.028 or 5.029.
122	122	SECTION 2. This Act takes effect September 1, 2011.