85R22396 AJA-F
By: Wray H.B. No. 4086
Substitute the following for H.B. No. 4086:
By: Shine C.S.H.B. No. 4086
A BILL TO BE ENTITLED
AN ACT
relating to expunction of a notice of lis pendens.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 12.0071(f), Property Code, is amended to
read as follows:
(f) After a certified copy of an order expunging a notice of
lis pendens has been recorded:
(1) [,] the notice of lis pendens and any information
derived or that could be derived from the notice:
(A) [(1)] does not:
(i) [(A)] constitute constructive or
actual notice of any matter contained in the notice or of any matter
relating to the action in connection with which the notice was filed
[proceeding];
(ii) [(B)] create any duty of inquiry in a
person with respect to the property described in the notice; or
(iii) [(C)] affect the validity of a
conveyance to a purchaser for value or of a mortgage to a lender for
value; and
(B) [(2)] is not enforceable against a purchaser
or lender described by Paragraph (A)(iii) [Subdivision (1)(C)],
regardless of whether the purchaser or lender knew of the lis
pendens action; and
(2) an interest in the real property may be sold or
encumbered free of all matters asserted or disclosed in the notice
and all claims or other matters asserted or disclosed in the action
in connection with which the notice was filed.
SECTION 2. The change in law made by this Act applies only
to a certified copy of an order expunging a notice of lis pendens
recorded on or after the effective date of this Act. A certified
copy of an order expunging a notice of lis pendens recorded before
the effective date of this Act is governed by the law in effect at
that time, and that law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2017.