Texas House Bill HB964

Texas 2011 - 82nd Regular

• Out of House Committee: 4/1/11
• Introduced: 1/27/11
• Refer: 2/28/11
• Report Pass: 3/30/11

Caption

Relating to the effect of indexing notices of lis pendens.

Impact

The implementation of this bill is significant as it provides clarity on how notices of lis pendens affect real property. Before this bill, there may have been ambiguity regarding whether a party involved in a legal proceeding could transfer or encumber their property without the other party's knowledge. The bill ensures that any transfer made by a party engaged in litigation is considered valid unless a notice of the pending proceedings is properly recorded and indexed, which enhances legal certainty for third-party purchasers and encumbrancers.

Summary

House Bill 964 addresses the legal effect of indexing notices of lis pendens in the context of real property transactions. Specifically, the bill amends Section 13.004 of the Texas Property Code, which establishes that a recorded lis pendens serves as public notice of the proceedings involving real property. This notice becomes effective from the time it is filed and indexed, regardless of whether the involved parties have been officially notified.

Contention

One notable aspect of the legislation is its approach to notices filed prior to its effective date. The bill stipulates that the new provisions will only apply to lis pendens notices filed after its effective date of September 1, 2011. This means that existing notices will remain governed by the previous legal standards, which could lead to transitions in practice and require stakeholders in real estate transactions to become aware of and adjust to these changes.

Additional_notes

Overall, HB 964 seeks to strengthen the protection of third-party interests in real estate transactions while clarifying the role and effect of notices of lis pendens in Texas property law. It reflects a legislative intention to enhance transparency and provide better guidance in the management of real property affected by legal disputes.