Texas 2023 - 88th Regular

Texas House Bill HB207 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	H.B. No. 207
2	2
3	3
4	4	AN ACT
5	5	relating to the exclusion of certain conveyances from
6	6	classification as sham or pretended sales.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Subchapter A, Chapter 41, Property Code, is
9	9	amended by adding Section 41.0022 to read as follows:
10	10	Sec. 41.0022. CERTAIN CONVEYANCES NOT SHAM OR PRETENDED
11	11	SALES. (a) In this section:
12	12	(1) "Entity" means a domestic or foreign:
13	13	(A) corporation, professional corporation, or
14	14	professional association;
15	15	(B) limited liability company or professional
16	16	limited liability company; or
17	17	(C) limited partnership.
18	18	(2) "Parcel" means one or more parcels.
19	19	(b) The conveyance of a parcel not meeting the definition of
20	20	an urban homestead under Section 41.002(a) or (c) by an individual
21	21	to an entity in which the individual or individual's spouse has a
22	22	direct or indirect ownership interest is not a sham or pretended
23	23	sale, including a pretended sale under Section 50(c), Article XVI,
24	24	Texas Constitution, if:
25	25	(1) the deed conveying the parcel is recorded at least
26	26	30 days before the entity grants a mortgage, trust deed, or other
27	27	lien on the parcel;
28	28	(2) the individual does not reside on the parcel at the
29	29	time of the conveyance;
30	30	(3) the parcel is not contiguous to the parcel on which
31	31	the individual resides;
32	32	(4) the deed conveying the parcel does not contain a
33	33	condition of defeasance; and
34	34	(5) the individual recorded contemporaneously with
35	35	the deed an affidavit substantially in the form prescribed by
36	36	Subsection (d).
37	37	(c) An individual executing a deed under Subsection (b) is
38	38	estopped from claiming that:
39	39	(1) the conveyance is a sham or pretended sale,
40	40	including a pretended sale under Section 50(c), Article XVI, Texas
41	41	Constitution; or
42	42	(2) the individual had not abandoned homestead rights,
43	43	if any, in the parcel by executing the deed.
44	44	(d) At the time of recording a deed under Subsection (b), an
45	45	individual grantor of the deed shall record an affidavit containing
46	46	the following:
47	47	(1) a title caption stating "Affidavit Regarding
48	48	Conveyance To An Entity";
49	49	(2) the date of the affidavit;
50	50	(3) a description of the deed containing:
51	51	(A) the title of the deed;
52	52	(B) the date of the deed;
53	53	(C) the name and address of the individual
54	54	grantor; and
55	55	(D) the name and address of the entity grantee;
56	56	(4) a description of the parcel being conveyed to the
57	57	entity;
58	58	(5) a description of the parcel upon which the
59	59	individual currently resides;
60	60	(6) a statement that the parcel being conveyed is not
61	61	contiguous to the parcel upon which the individual currently
62	62	resides;
63	63	(7) a statement that the parcel upon which the
64	64	individual currently resides is not:
65	65	(A) located within the limits of a municipality
66	66	or its extraterritorial jurisdiction or a platted subdivision; or
67	67	(B) served by police protection, paid or
68	68	volunteer fire protection, and at least three of the following
69	69	services provided by a municipality or under contract to a
70	70	municipality:
71	71	(i) electric;
72	72	(ii) natural gas;
73	73	(iii) sewer;
74	74	(iv) storm sewer; or
75	75	(v) water;
76	76	(8) a statement that:
77	77	(A) the individual is unmarried; or
78	78	(B) the individual is married, and including the
79	79	name of the individual's spouse;
80	80	(9) a statement that the individual or individual's
81	81	spouse owns a direct or indirect interest in the entity;
82	82	(10) a statement that the individual has executed the
83	83	deed conveying the parcel to the entity;
84	84	(11) a statement that the individual intends to vest
85	85	title in the entity;
86	86	(12) a statement that there are no written or oral
87	87	agreements regarding a defeasance of the parcel upon the passage of
88	88	time or occurrence or non-occurrence of any event;
89	89	(13) a statement that the individual acknowledges that
90	90	the individual will be estopped from claiming the conveyance to the
91	91	entity is a sham or pretended sale, including a pretended sale under
92	92	Section 50(c), Article XVI, Texas Constitution;
93	93	(14) a statement that the individual acknowledges that
94	94	the individual will be estopped from claiming the individual had
95	95	not abandoned homestead rights, if any, in the parcel by executing
96	96	the deed;
97	97	(15) a statement that the individual understands that
98	98	if the parcel is valued for ad valorem tax purposes as qualified
99	99	open-space land, the entity must reapply in its own name by the
100	100	applicable filing deadline; and
101	101	(16) a statement that the individual has had an
102	102	opportunity:
103	103	(A) to review the affidavit prior to the
104	104	affidavit's execution; and
105	105	(B) to consult with an attorney before the
106	106	affidavit's execution, whether or not the opportunity to consult
107	107	with an attorney was exercised.
108	108	(e) If the individual conveying a parcel under Subsection
109	109	(b) is married, the individual's spouse must join in the execution
110	110	of:
111	111	(1) the deed; and
112	112	(2) the affidavit described by Subsection (d).
113	113	(f) The entity or a lender for value may conclusively rely
114	114	on an affidavit described by Subsection (d).
115	115	(g) Notwithstanding any other provision of this section, a
116	116	transaction that does not meet the requirements of this section is
117	117	not invalid if the homestead has been abandoned or disclaimed as
118	118	provided by other provisions of law.
119	119	SECTION 2. This Act takes effect September 1, 2023.
120	120	______________________________ ______________________________
121	121	President of the Senate Speaker of the House
122	122	I certify that H.B. No. 207 was passed by the House on April
123	123	20, 2023, by the following vote: Yeas 144, Nays 2, 2 present, not
124	124	voting; and that the House concurred in Senate amendments to H.B.
125	125	No. 207 on May 19, 2023, by the following vote: Yeas 140, Nays 0, 3
126	126	present, not voting.
127	127	______________________________
128	128	Chief Clerk of the House
129	129	I certify that H.B. No. 207 was passed by the Senate, with
130	130	amendments, on May 16, 2023, by the following vote: Yeas 31, Nays
131	131	0.
132	132	______________________________
133	133	Secretary of the Senate
134	134	APPROVED: __________________
135	135	Date
136	136	__________________
137	137	Governor