82R19395 PMO-F
By: Anderson of Dallas H.B. No. 2254
Substitute the following for H.B. No. 2254:
By: Workman C.S.H.B. No. 2254
A BILL TO BE ENTITLED
AN ACT
relating to the 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 Sections 5.027, 5.028, 5.029, 5.030, and 5.031 to
read as follows:
Sec. 5.027. CORRECTION INSTRUMENTS: GENERALLY. (a) A
correction instrument that complies with Section 5.028 or 5.029 may
correct an ambiguity or error in a recorded original instrument of
conveyance to transfer real property or an interest in real
property, including an ambiguity or error that relates to the
description of or extent of the interest conveyed.
(b) A correction instrument may not correct an ambiguity or
error in a recorded original 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 unless the
conveyance otherwise complies with all requirements of Chapter 51.
(c) A correction instrument is subject to Section 13.001.
Sec. 5.028. CORRECTION INSTRUMENTS: NONMATERIAL
CORRECTIONS. (a) A person who has personal knowledge of facts
relevant to the correction of a recorded original instrument of
conveyance may execute a correction instrument to make a
nonmaterial change that results from a clerical error, including:
(1) a correction of an inaccurate or incorrect element
in a legal description, such as a distance, angle, direction,
bearing or chord, a lot, block, unit, building designation or
section number, an appurtenant easement, a township name or number,
a municipality, county, or state name, a range number or meridian, a
certified survey map number, or a subdivision or condominium name;
or
(2) an addition, correction, or clarification of:
(A) a party's name, including the spelling of a
name, a first or middle name or initial, a suffix, an alternate name
by which a party is known, or a description of an entity as a
corporation, company, or other type of organization;
(B) a party's marital status;
(C) the date on which the conveyance was
executed;
(D) the recording data for an instrument
referenced in the correction instrument; or
(E) a fact relating to the acknowledgment or
authentication.
(b) A person who executes a correction instrument under this
section may execute a correction instrument that provides an
acknowledgment or authentication that is required and was not
included in the recorded original instrument of conveyance.
(c) A person who executes a correction instrument under this
section shall disclose in the instrument the basis for the person's
personal knowledge of the facts relevant to the correction of the
recorded original instrument of conveyance.
(d) A person who executes a correction instrument under this
section shall:
(1) record the instrument and evidence of notice as
provided by Subdivision (2), if applicable, in each county in which
the original instrument of conveyance being corrected is recorded;
and
(2) if the correction instrument is not signed by each
party to the recorded original instrument, send a copy of the
correction instrument and notice by first class mail, e-mail, or
other reasonable means to each party to the original instrument of
conveyance and, if applicable, a party's heirs, successors, or
assigns.
Sec. 5.029. CORRECTION INSTRUMENTS: MATERIAL CORRECTIONS.
(a) In addition to nonmaterial corrections, including the
corrections described by Section 5.028, the parties to the original
transaction or the parties' heirs, successors, or assigns, as
applicable may execute a correction instrument to make a material
correction to the recorded original instrument of conveyance,
including a correction to:
(1) add:
(A) a buyer's disclaimer of an interest in the
real property that is the subject of the original instrument of
conveyance;
(B) a mortgagee's consent or subordination to a
recorded document executed by the mortgagee or an heir, successor,
or assign of the mortgagee; or
(C) land to a conveyance that correctly conveys
other land;
(2) remove land from a conveyance that correctly
conveys other land; or
(3) accurately identify a lot or unit number or letter
of property owned by the grantor that was inaccurately identified
as another lot or unit number or letter of property owned by the
grantor in the recorded original instrument of conveyance.
(b) A correction instrument under this section must be:
(1) executed by each party to the recorded original
instrument of conveyance the correction instrument is executed to
correct or, if applicable, a party's heirs, successors, or assigns;
and
(2) recorded in each county in which the original
instrument of conveyance that is being corrected is recorded.
Sec. 5.030. CORRECTION INSTRUMENT: EFFECT. (a) A
correction instrument that complies with Section 5.028 or 5.029 is:
(1) effective as of the effective date of the recorded
original instrument of conveyance;
(2) prima facie evidence of the facts stated in the
correction instrument;
(3) presumed to be true;
(4) subject to rebuttal; and
(5) notice to a subsequent buyer of the facts stated in
the correction instrument.
(b) A bona fide purchaser of property that is subject to a
correction instrument may rely on the instrument against any person
making an adverse or inconsistent claim.
Sec. 5.031. CORRECTION INSTRUMENTS RECORDED BEFORE
SEPTEMBER 1, 2011. A correction instrument recorded before
September 1, 2011, that substantially complies with Section 5.028
or 5.029 and that purports to correct a recorded original
instrument of conveyance is effective to the same extent as
provided by Section 5.030 unless a court of competent jurisdiction
renders a final judgment determining that the correction instrument
does not substantially comply with Section 5.028 or 5.029.
SECTION 2. This Act takes effect September 1, 2011.