Texas 2021 - 87th Regular

Texas House Bill HB2424 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		87R13193 BEE-F
2	2		By: Murr, Cain, Lambert, Shine, Patterson H.B. No. 2424
	3	+	Substitute the following for H.B. No. 2424:
	4	+	By: Turner of Tarrant C.S.H.B. No. 2424
3	5
4	6
5	7		A BILL TO BE ENTITLED
6	8		AN ACT
7	9		relating to the exclusion of certain conveyances from
8	10		classification as pretended sales.
9	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	12		SECTION 1. Subchapter A, Chapter 41, Property Code, is
11	13		amended by adding Section 41.0022 to read as follows:
12	14		Sec. 41.0022. CERTAIN CONVEYANCES NOT PRETENDED SALES. (a)
13	15		In this section:
14	16		(1) "Entity" means a domestic or foreign:
15	17		(A) corporation, professional corporation, or
16	18		professional association;
17	19		(B) limited liability company or professional
18	20		limited liability company; or
19	21		(C) limited partnership.
20	22		(2) "Parcel" means one or more parcels.
21	23		(b) The conveyance of a parcel not meeting the definition of
22	24		an urban homestead under Section 41.002(a) or (c) by an individual
23	25		to an entity in which the individual or individual's spouse has a
24	26		direct or indirect ownership interest is not a pretended sale under
25	27		Section 50(c), Article XVI, Texas Constitution, if:
26	28		(1) the deed conveying the parcel is recorded at least
27	29		30 days before the entity grants a mortgage, trust deed, or other
28	30		lien on the parcel;
29	31		(2) the individual does not reside on the parcel at the
30	32		time of the conveyance;
31	33		(3) the parcel is not contiguous to the parcel on which
32	34		the individual resides;
33	35		(4) the deed conveying the parcel does not contain a
34	36		condition of defeasance; and
35	37		(5) the individual recorded contemporaneously with
36	38		the deed an affidavit substantially in the form prescribed by
37	39		Subsection (d).
38	40		(c) An individual executing a deed under Subsection (b) is
39	41		estopped from claiming the conveyance is a pretended sale under
40	42		Section 50(c), Article XVI, Texas Constitution.
41	43		(d) At the time of recording a deed under Subsection (b), an
42	44		individual grantor of the deed shall record an affidavit containing
43	45		the following:
44	46		(1) a title caption stating "Affidavit Regarding
45	47		Conveyance To An Entity";
46	48		(2) the date of the affidavit;
47	49		(3) a description of the deed containing:
48	50		(A) the title of the deed;
49	51		(B) the date of the deed;
50	52		(C) the name and address of the individual
51	53		grantor; and
52	54		(D) the name and address of the entity grantee;
53	55		(4) a description of the parcel being conveyed to the
54	56		entity;
55	57		(5) a description of the parcel upon which the
56	58		individual currently resides;
57	59		(6) a statement that the parcel being conveyed is not
58	60		contiguous to the parcel upon which the individual currently
59	61		resides;
60	62		(7) a statement that the parcel upon which the
61	63		individual currently resides is not:
62	64		(A) located within the limits of a municipality
63	65		or its extraterritorial jurisdiction or a platted subdivision; or
64	66		(B) served by police protection, paid or
65	67		volunteer fire protection, and at least three of the following
66	68		services provided by a municipality or under contract to a
67	69		municipality:
68	70		(i) electric;
69	71		(ii) natural gas;
70	72		(iii) sewer;
71	73		(iv) storm sewer; or
72	74		(v) water;
73	75		(8) a statement that:
74	76		(A) the individual is unmarried; or
75	77		(B) the individual is married, and including the
76	78		name of the individual's spouse;
77	79		(9) a statement that the individual or individual's
78	80		spouse owns a direct or indirect interest in the entity;
79	81		(10) a statement that the individual has executed the
80	82		deed conveying the parcel to the entity;
81	83		(11) a statement that the individual intends to vest
82	84		title in the entity;
83	85		(12) a statement that there are no written or oral
84	86		agreements regarding a defeasance of the parcel upon the passage of
85	87		time or occurrence or non-occurrence of any event;
86	88		(13) a statement that the individual acknowledges that
87	89		the individual will be estopped from claiming the conveyance to the
88	90		entity is a pretended sale under Section 50(c), Article XVI, Texas
89	91		Constitution; and
90	92		(14) a statement that the individual has had an
91	93		opportunity:
92	94		(A) to review the affidavit prior to the
93	95		affidavit's execution; and
94	96		(B) to consult with an attorney before the
95	97		affidavit's execution, whether or not the opportunity to consult
96	98		with an attorney was exercised.
97	99		(e) If the individual conveying a parcel under Subsection
98	100		(b) is married, the individual's spouse must join in the execution
99	101		of:
100	102		(1) the deed; and
101	103		(2) the affidavit described by Subsection (d).
102	104		SECTION 2. This Act takes effect September 1, 2021.