Texas 2011 - 82nd Regular

Texas Senate Bill SB1496 Compare Versions

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1	1	By: Uresti S.B. No. 1496
2	2	(Anderson of Dallas)
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the scope and validity of correction instruments in the
8	8	conveyance of real property.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subchapter B, Chapter 5, Property Code, is
11	11	amended by adding Sections 5.027, 5.028, 5.029, 5.030, and 5.031 to
12	12	read as follows:
13	13	Sec. 5.027. CORRECTION INSTRUMENTS: GENERALLY. (a) A
14	14	correction instrument that complies with Section 5.028 or 5.029 may
15	15	correct an ambiguity or error in a recorded original instrument of
16	16	conveyance to transfer real property or an interest in real
17	17	property, including an ambiguity or error that relates to the
18	18	description of or extent of the interest conveyed.
19	19	(b) A correction instrument may not correct an ambiguity or
20	20	error in a recorded original instrument of conveyance to transfer
21	21	real property or an interest in real property not originally
22	22	conveyed in the instrument of conveyance for purposes of a sale of
23	23	real property under a power of sale under Chapter 51 unless the
24	24	conveyance otherwise complies with all requirements of Chapter 51.
25	25	(c) A correction instrument is subject to Section 13.001.
26	26	Sec. 5.028. CORRECTION INSTRUMENTS: NONMATERIAL
27	27	CORRECTIONS. (a) A person who has personal knowledge of facts
28	28	relevant to the correction of a recorded original instrument of
29	29	conveyance may execute a correction instrument to make a
30	30	nonmaterial change that results from a clerical error, including:
31	31	(1) a correction of an inaccurate or incorrect element
32	32	in a legal description, such as a distance, angle, direction,
33	33	bearing or chord, a lot, block, unit, building designation or
34	34	section number, an appurtenant easement, a township name or number,
35	35	a municipality, county, or state name, a range number or meridian, a
36	36	certified survey map number, or a subdivision or condominium name;
37	37	or
38	38	(2) an addition, correction, or clarification of:
39	39	(A) a party's name, including the spelling of a
40	40	name, a first or middle name or initial, a suffix, an alternate name
41	41	by which a party is known, or a description of an entity as a
42	42	corporation, company, or other type of organization;
43	43	(B) a party's marital status;
44	44	(C) the date on which the conveyance was
45	45	executed;
46	46	(D) the recording data for an instrument
47	47	referenced in the correction instrument; or
48	48	(E) a fact relating to the acknowledgment or
49	49	authentication.
50	50	(b) A person who executes a correction instrument under this
51	51	section may execute a correction instrument that provides an
52	52	acknowledgment or authentication that is required and was not
53	53	included in the recorded original instrument of conveyance.
54	54	(c) A person who executes a correction instrument under this
55	55	section shall disclose in the instrument the basis for the person's
56	56	personal knowledge of the facts relevant to the correction of the
57	57	recorded original instrument of conveyance.
58	58	(d) A person who executes a correction instrument under this
59	59	section shall:
60	60	(1) record the instrument and evidence of notice as
61	61	provided by Subdivision (2), if applicable, in each county in which
62	62	the original instrument of conveyance being corrected is recorded;
63	63	and
64	64	(2) if the correction instrument is not signed by each
65	65	party to the recorded original instrument, send a copy of the
66	66	correction instrument and notice by first class mail, e-mail, or
67	67	other reasonable means to each party to the original instrument of
68	68	conveyance and, if applicable, a party's heirs, successors, or
69	69	assigns.
70	70	Sec. 5.029. CORRECTION INSTRUMENTS: MATERIAL CORRECTIONS.
71	71	(a) In addition to nonmaterial corrections, including the
72	72	corrections described by Section 5.028, the parties to the original
73	73	transaction or the parties' heirs, successors, or assigns, as
74	74	applicable may execute a correction instrument to make a material
75	75	correction to the recorded original instrument of conveyance,
76	76	including a correction to:
77	77	(1) add:
78	78	(A) a buyer's disclaimer of an interest in the
79	79	real property that is the subject of the original instrument of
80	80	conveyance;
81	81	(B) a mortgagee's consent or subordination to a
82	82	recorded document executed by the mortgagee or an heir, successor,
83	83	or assign of the mortgagee; or
84	84	(C) land to a conveyance that correctly conveys
85	85	other land;
86	86	(2) remove land from a conveyance that correctly
87	87	conveys other land; or
88	88	(3) accurately identify a lot or unit number or letter
89	89	of property owned by the grantor that was inaccurately identified
90	90	as another lot or unit number or letter of property owned by the
91	91	grantor in the recorded original instrument of conveyance.
92	92	(b) A correction instrument under this section must be:
93	93	(1) executed by each party to the recorded original
94	94	instrument of conveyance the correction instrument is executed to
95	95	correct or, if applicable, a party's heirs, successors, or assigns;
96	96	and
97	97	(2) recorded in each county in which the original
98	98	instrument of conveyance that is being corrected is recorded.
99	99	Sec. 5.030. CORRECTION INSTRUMENT: EFFECT. (a) A
100	100	correction instrument that complies with Section 5.028 or 5.029 is:
101	101	(1) effective as of the effective date of the recorded
102	102	original instrument of conveyance;
103	103	(2) prima facie evidence of the facts stated in the
104	104	correction instrument;
105	105	(3) presumed to be true;
106	106	(4) subject to rebuttal; and
107	107	(5) notice to a subsequent buyer of the facts stated in
108	108	the correction instrument.
109	109	(b) A bona fide purchaser of property that is subject to a
110	110	correction instrument may rely on the instrument against any person
111	111	making an adverse or inconsistent claim.
112	112	Sec. 5.031. CORRECTION INSTRUMENTS RECORDED BEFORE
113	113	SEPTEMBER 1, 2011. A correction instrument recorded before
114	114	September 1, 2011, that substantially complies with Section 5.028
115	115	or 5.029 and that purports to correct a recorded original
116	116	instrument of conveyance is effective to the same extent as
117	117	provided by Section 5.030 unless a court of competent jurisdiction
118	118	renders a final judgment determining that the correction instrument
119	119	does not substantially comply with Section 5.028 or 5.029.
120	120	SECTION 2. This Act takes effect September 1, 2011.