Texas 2011 - 82nd Regular

Texas Senate Bill SB1368 Compare Versions

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Old	New	Differences
1	1	By: West S.B. No. 1368
2	2	(Deshotel)
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the authority of a co-owner of residential property to
8	8	encumber the property.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subtitle B, Title 5, Property Code, is amended by
11	11	adding Chapter 64 to read as follows:
12	12	CHAPTER 64. AUTHORITY OF CO-OWNER TO ENCUMBER RESIDENTIAL PROPERTY
13	13	Sec. 64.001. APPLICATION OF CHAPTER. This chapter applies
14	14	only to residential property:
15	15	(1) that has residential improvements primarily
16	16	designed for not more than four families;
17	17	(2) that is not more than 10 acres of land;
18	18	(3) that is owned by more than one person; and
19	19	(4) for which at least one co-owner has received a
20	20	residence homestead exemption under Section 11.13, Tax Code.
21	21	Sec. 64.002. CONDITIONS FOR AUTHORITY TO ACT AS AGENT FOR
22	22	CO-OWNER. A co-owner of residential property may act in the name of
23	23	and on behalf of another co-owner, whether known or unknown, as the
24	24	co-owner's statutory agent and attorney-in-fact for the purposes
25	25	described by Section 64.004 if:
26	26	(1) the co-owner has occupied the property for more
27	27	than five years;
28	28	(2) the co-owner has a residence homestead exemption
29	29	for the property under Section 11.13, Tax Code;
30	30	(3) for the five years preceding the date the
31	31	documents required by Section 64.003 are filed, the occupying
32	32	co-owner has paid all assessed ad valorem taxes without delinquency
33	33	and without contribution from the other co-owner; and
34	34	(4) the occupying co-owner files the documents
35	35	required by Section 64.003.
36	36	Sec. 64.003. REQUIRED DOCUMENTATION. The occupying
37	37	co-owner may establish the authority to act as an agent and
38	38	attorney-in-fact for another co-owner by filing in the office of
39	39	the county clerk of the county in which the real property is
40	40	located:
41	41	(1) an affidavit of the occupying co-owner affirming
42	42	the facts described by Sections 64.002(1)-(3);
43	43	(2) the affidavits of two additional affiants
44	44	personally familiar with the co-owner's occupancy of the real
45	45	property corroborating the occupancy during the preceding five
46	46	years; and
47	47	(3) a certificate of the tax assessor-collector for
48	48	the county in which the real property is located affirming that the
49	49	co-owner has paid all taxes assessed against the real property for
50	50	the preceding five years without delinquency.
51	51	Sec. 64.004. SCOPE OF AUTHORITY. (a) The authority of the
52	52	occupying co-owner to act as an agent and attorney-in-fact is
53	53	limited to the authority to enter into a contract giving rise to a
54	54	mechanic's and materialman's lien and to execute a deed of trust for
55	55	the purpose of preserving or improving the residential property.
56	56	The occupying co-owner is the sole obligor of the debt incurred
57	57	under the contract and secured by the deed of trust.
58	58	(b) A lien that arises under a contract entered into by an
59	59	occupying co-owner under this section is not subject to repudiation
60	60	or disaffirmance by another co-owner.
61	61	SECTION 2. This Act takes effect immediately if it receives
62	62	a vote of two-thirds of all the members elected to each house, as
63	63	provided by Section 39, Article III, Texas Constitution. If this
64	64	Act does not receive the vote necessary for immediate effect, this
65	65	Act takes effect September 1, 2011.