87R13193 BEE-F
By: Murr, Cain, Lambert, Shine, Patterson H.B. No. 2424
A BILL TO BE ENTITLED
AN ACT
relating to the exclusion of certain conveyances from
classification as pretended sales.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 41, Property Code, is
amended by adding Section 41.0022 to read as follows:
Sec. 41.0022. CERTAIN CONVEYANCES NOT PRETENDED SALES. (a)
In this section:
(1) "Entity" means a domestic or foreign:
(A) corporation, professional corporation, or
professional association;
(B) limited liability company or professional
limited liability company; or
(C) limited partnership.
(2) "Parcel" means one or more parcels.
(b) The conveyance of a parcel not meeting the definition of
an urban homestead under Section 41.002(a) or (c) by an individual
to an entity in which the individual or individual's spouse has a
direct or indirect ownership interest is not a pretended sale under
Section 50(c), Article XVI, Texas Constitution, if:
(1) the deed conveying the parcel is recorded at least
30 days before the entity grants a mortgage, trust deed, or other
lien on the parcel;
(2) the individual does not reside on the parcel at the
time of the conveyance;
(3) the parcel is not contiguous to the parcel on which
the individual resides;
(4) the deed conveying the parcel does not contain a
condition of defeasance; and
(5) the individual recorded contemporaneously with
the deed an affidavit substantially in the form prescribed by
Subsection (d).
(c) An individual executing a deed under Subsection (b) is
estopped from claiming the conveyance is a pretended sale under
Section 50(c), Article XVI, Texas Constitution.
(d) At the time of recording a deed under Subsection (b), an
individual grantor of the deed shall record an affidavit containing
the following:
(1) a title caption stating "Affidavit Regarding
Conveyance To An Entity";
(2) the date of the affidavit;
(3) a description of the deed containing:
(A) the title of the deed;
(B) the date of the deed;
(C) the name and address of the individual
grantor; and
(D) the name and address of the entity grantee;
(4) a description of the parcel being conveyed to the
entity;
(5) a description of the parcel upon which the
individual currently resides;
(6) a statement that the parcel being conveyed is not
contiguous to the parcel upon which the individual currently
resides;
(7) a statement that the parcel upon which the
individual currently resides is not:
(A) located within the limits of a municipality
or its extraterritorial jurisdiction or a platted subdivision; or
(B) served by police protection, paid or
volunteer fire protection, and at least three of the following
services provided by a municipality or under contract to a
municipality:
(i) electric;
(ii) natural gas;
(iii) sewer;
(iv) storm sewer; or
(v) water;
(8) a statement that:
(A) the individual is unmarried; or
(B) the individual is married, and including the
name of the individual's spouse;
(9) a statement that the individual or individual's
spouse owns a direct or indirect interest in the entity;
(10) a statement that the individual has executed the
deed conveying the parcel to the entity;
(11) a statement that the individual intends to vest
title in the entity;
(12) a statement that there are no written or oral
agreements regarding a defeasance of the parcel upon the passage of
time or occurrence or non-occurrence of any event;
(13) a statement that the individual acknowledges that
the individual will be estopped from claiming the conveyance to the
entity is a pretended sale under Section 50(c), Article XVI, Texas
Constitution; and
(14) a statement that the individual has had an
opportunity:
(A) to review the affidavit prior to the
affidavit's execution; and
(B) to consult with an attorney before the
affidavit's execution, whether or not the opportunity to consult
with an attorney was exercised.
(e) If the individual conveying a parcel under Subsection
(b) is married, the individual's spouse must join in the execution
of:
(1) the deed; and
(2) the affidavit described by Subsection (d).
SECTION 2. This Act takes effect September 1, 2021.