| 4 | 6 | | AN ACT |
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| 5 | 7 | | relating to expunction of a notice of lis pendens. |
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| 6 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 7 | 9 | | SECTION 1. Section 12.0071(f), Property Code, is amended to |
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| 8 | 10 | | read as follows: |
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| 9 | 11 | | (f) After a certified copy of an order expunging a notice of |
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| 10 | 12 | | lis pendens has been recorded: |
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| 11 | 13 | | (1) [,] the notice of lis pendens and any information |
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| 12 | 14 | | derived or that could be derived from the notice: |
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| 13 | 15 | | (A) [(1)] does not: |
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| 14 | 16 | | (i) [(A)] constitute constructive or |
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| 15 | 17 | | actual notice of any matter contained in the notice or of any matter |
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| 16 | 18 | | relating to the action in connection with which the notice was filed |
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| 17 | 19 | | [proceeding]; |
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| 18 | 20 | | (ii) [(B)] create any duty of inquiry in a |
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| 19 | 21 | | person with respect to the property described in the notice; or |
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| 20 | 22 | | (iii) [(C)] affect the validity of a |
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| 21 | 23 | | conveyance to a purchaser for value or of a mortgage to a lender for |
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| 22 | 24 | | value; and |
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| 23 | 25 | | (B) [(2)] is not enforceable against a purchaser |
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| 24 | 26 | | or lender described by Paragraph (A)(iii) [Subdivision (1)(C)], |
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| 25 | 27 | | regardless of whether the purchaser or lender knew of the lis |
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| 26 | 28 | | pendens action; and |
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| 27 | 29 | | (2) an interest in the real property may be |
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| 28 | 30 | | transferred or encumbered free of all matters asserted or disclosed |
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| 29 | 31 | | in the notice and all claims or other matters asserted or disclosed |
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| 30 | 32 | | in the action in connection with which the notice was filed. |
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| 31 | 33 | | SECTION 2. The change in law made by this Act applies only |
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| 32 | 34 | | to a certified copy of an order expunging a notice of lis pendens |
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| 33 | 35 | | recorded on or after the effective date of this Act. A certified |
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| 34 | 36 | | copy of an order expunging a notice of lis pendens recorded before |
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| 35 | 37 | | the effective date of this Act is governed by the law in effect at |
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| 36 | 38 | | that time, and that law is continued in effect for that purpose. |
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| 37 | 39 | | SECTION 3. This Act takes effect September 1, 2017. |
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| 38 | | - | ______________________________ ______________________________ |
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| 39 | | - | President of the Senate Speaker of the House |
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| 40 | | - | I hereby certify that S.B. No. 1955 passed the Senate on |
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| 41 | | - | April 26, 2017, by the following vote: Yeas 31, Nays 0. |
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| 42 | | - | ______________________________ |
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| 43 | | - | Secretary of the Senate |
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| 44 | | - | I hereby certify that S.B. No. 1955 passed the House on |
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| 45 | | - | May 6, 2017, by the following vote: Yeas 142, Nays 0, one present |
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| 46 | | - | not voting. |
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| 47 | | - | ______________________________ |
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| 48 | | - | Chief Clerk of the House |
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| 49 | | - | Approved: |
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| 50 | | - | ______________________________ |
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| 51 | | - | Date |
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| 52 | | - | ______________________________ |
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| 53 | | - | Governor |
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