| 7 | 3 | | |
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| 8 | 4 | | |
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| 9 | 5 | | A BILL TO BE ENTITLED |
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| 10 | 6 | | AN ACT |
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| 11 | 7 | | relating to technical defects in instruments affecting real |
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| 12 | 8 | | property. |
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| 13 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 14 | 10 | | SECTION 1. Sections 16.033(a) and (c), Civil Practice and |
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| 15 | 11 | | Remedies Code, are amended to read as follows: |
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| 16 | 12 | | (a) A person with a right of action for the recovery of real |
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| 17 | 13 | | property or an interest in real property conveyed by an instrument |
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| 18 | 14 | | with one of the following defects must bring suit not later than two |
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| 19 | 15 | | years after the day the instrument was filed for record with the |
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| 20 | 16 | | county clerk of the county where the real property is located: |
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| 21 | 17 | | (1) lack of the signature of a proper corporate |
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| 22 | 18 | | officer, partner, or company officer, manager, or member; |
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| 23 | 19 | | (2) lack of a corporate seal; |
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| 24 | 20 | | (3) failure of the record to show the corporate seal |
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| 25 | 21 | | used; |
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| 26 | 22 | | (4) failure of the record to show authority of the |
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| 27 | 23 | | board of directors or stockholders of a corporation, partners of a |
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| 28 | 24 | | partnership, or officers, managers, or members of a company; |
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| 29 | 25 | | (5) execution and delivery of the instrument by a |
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| 30 | 26 | | corporation, partnership, or other company that had been dissolved, |
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| 31 | 27 | | whose charter had expired, or whose franchise had been canceled, |
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| 32 | 28 | | withdrawn, or forfeited; |
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| 33 | 29 | | (6) [acknowledgment of the instrument in an |
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| 34 | 30 | | individual, rather than a representative or official, capacity; |
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| 35 | 31 | | [(7)] execution of the instrument by a trustee without |
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| 36 | 32 | | record of the authority of the trustee or proof of the facts recited |
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| 37 | 33 | | in the instrument; |
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| 38 | 34 | | [(8) failure of the record or instrument to show an |
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| 39 | 35 | | acknowledgment or jurat that complies with applicable law;] or |
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| 40 | 36 | | (7) [(9)] wording of the stated consideration that may |
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| 41 | 37 | | or might create an implied lien in favor of the grantor. |
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| 42 | 38 | | (c) An [For the purposes of this section, an] instrument |
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| 43 | 39 | | affecting real property containing a [ministerial] defect in, |
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| 44 | 40 | | omission of, or informality in the [certificate of] acknowledgment |
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| 45 | 41 | | that has been filed for record for longer than six months [two |
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| 46 | 42 | | years] in the office of the county recorder of the county in which |
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| 47 | 43 | | the property is located is considered to have been lawfully |
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| 48 | 44 | | recorded and to be notice of the existence of the instrument on and |
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| 49 | 45 | | after the date the instrument is filed. |
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| 50 | 46 | | SECTION 2. The change in law made by this Act applies only |
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| 51 | 47 | | to an instrument filed for record on or after the effective date of |
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| 52 | 48 | | this Act. An instrument filed for record before the effective date |
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| 53 | 49 | | of this Act is governed by the law in effect immediately before the |
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| 54 | 50 | | effective date of this Act, and that law is continued in effect for |
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| 55 | 51 | | that purpose. |
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| 56 | 52 | | SECTION 3. This Act takes effect September 1, 2019. |
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