| 1 | 1 | | 82R4112 PMO-F |
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| 2 | 2 | | By: Hartnett H.B. No. 964 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the effect of indexing notices of lis pendens. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 13.004, Property Code, is amended to |
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| 10 | 10 | | read as follows: |
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| 11 | 11 | | Sec. 13.004. EFFECT OF RECORDING LIS PENDENS. (a) A |
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| 12 | 12 | | recorded lis pendens is notice to the world of its contents. The |
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| 13 | 13 | | notice is effective from the time it is filed for record and indexed |
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| 14 | 14 | | as provided by Section 12.007(c), regardless of whether service has |
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| 15 | 15 | | been made on the parties to the proceeding. |
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| 16 | 16 | | (b) A transfer or encumbrance of real property involved in a |
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| 17 | 17 | | proceeding by a party to the proceeding to a third party who has |
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| 18 | 18 | | paid a valuable consideration and who does not have actual or |
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| 19 | 19 | | constructive notice of the proceeding is effective, even though the |
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| 20 | 20 | | judgment is against the party transferring or encumbering the |
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| 21 | 21 | | property, unless a notice of the pendency of the proceeding has been |
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| 22 | 22 | | recorded and indexed under that party's name as provided by Section |
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| 23 | 23 | | 12.007(c) in each county in which the property is located. |
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| 24 | 24 | | SECTION 2. The change in law made by this Act applies only |
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| 25 | 25 | | to a notice of lis pendens filed for record on or after the |
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| 26 | 26 | | effective date of this Act. A notice filed for record before the |
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| 27 | 27 | | effective date of this Act is covered by the law in effect when the |
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| 28 | 28 | | notice was filed, and the former law is continued in effect for that |
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| 29 | 29 | | purpose. |
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| 30 | 30 | | SECTION 3. This Act takes effect September 1, 2011. |
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