TX
Texas House Bill HB4086

Texas 2017 - 85th Regular

Texas House Bill HB4086 Compare Versions

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1-85R22396 AJA-F
21 By: Wray H.B. No. 4086
3- Substitute the following for H.B. No. 4086:
4- By: Shine C.S.H.B. No. 4086
52
63
74 A BILL TO BE ENTITLED
85 AN ACT
9- relating to expunction of a notice of lis pendens.
6+ relating to the expunction of a notice of lis pendens.
107 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11- SECTION 1. Section 12.0071(f), Property Code, is amended to
12- read as follows:
8+ SECTION 1. Section 12.0071, Property Code, is amended by
9+ amending Subsection (f) and adding Subsection (h) to read as
10+ follows:
1311 (f) After a certified copy of an order expunging a notice of
14- lis pendens has been recorded:
15- (1) [,] the notice of lis pendens and any information
16- derived or that could be derived from the notice:
17- (A) [(1)] does not:
18- (i) [(A)] constitute constructive or
19- actual notice of any matter contained in the notice or of any matter
20- relating to the action in connection with which the notice was filed
21- [proceeding];
22- (ii) [(B)] create any duty of inquiry in a
23- person with respect to the property described in the notice; or
24- (iii) [(C)] affect the validity of a
25- conveyance to a purchaser for value or of a mortgage to a lender for
26- value; and
27- (B) [(2)] is not enforceable against a purchaser
28- or lender described by Paragraph (A)(iii) [Subdivision (1)(C)],
29- regardless of whether the purchaser or lender knew of the lis
30- pendens action; and
31- (2) an interest in the real property may be sold or
32- encumbered free of all matters asserted or disclosed in the notice
33- and all claims or other matters asserted or disclosed in the action
34- in connection with which the notice was filed.
35- SECTION 2. The change in law made by this Act applies only
36- to a certified copy of an order expunging a notice of lis pendens
37- recorded on or after the effective date of this Act. A certified
38- copy of an order expunging a notice of lis pendens recorded before
39- the effective date of this Act is governed by the law in effect at
40- that time, and that law is continued in effect for that purpose.
41- SECTION 3. This Act takes effect September 1, 2017.
12+ lis pendens has been recorded, the notice of lis pendens and any
13+ information derived or that could be derived from the notice:
14+ (1) does not:
15+ (A) constitute constructive or actual notice of
16+ any matter contained in the notice or of any matter relating to the
17+ action in connection with which the notice was filed [proceeding];
18+ (B) create any duty of inquiry in a person with
19+ respect to the property described in the notice; or
20+ (C) affect the validity of a conveyance to a
21+ purchaser for value or of a mortgage to a lender for value; and
22+ (2) is not enforceable against a purchaser or lender
23+ described by Subdivision (1)(C), regardless of whether the
24+ purchaser or lender knew of the lis pendens action.
25+ (h) When a notice of lis pendens is expunged in accordance
26+ with this section, the notice of lis pendens or the action in
27+ connection with which the notice was filed does not encumber any
28+ transfer of the real property.
29+ SECTION 2. This Act takes effect immediately if it receives
30+ a vote of two-thirds of all the members elected to each house, as
31+ provided by Section 39, Article III, Texas Constitution.
32+ If this
33+ Act does not receive the vote necessary for immediate effect, this
34+ Act takes effect September 1, 2017.