| 1 | 1 | | 88R4247 DRS-F |
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| 2 | 2 | | By: Longoria H.B. No. 4281 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to an instrument that names a trust as a party. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Subchapter D, Chapter 114, Property Code, is |
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| 10 | 10 | | amended by adding Section 114.087 to read as follows: |
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| 11 | 11 | | Sec. 114.087. INSTRUMENT NAMING TRUST AS PARTY. (a) The |
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| 12 | 12 | | trustee of a trust is considered for all purposes to be the named |
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| 13 | 13 | | party to an instrument that names the trust as a party to the |
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| 14 | 14 | | instrument in any capacity, unless the trust is a legal entity under |
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| 15 | 15 | | state law. |
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| 16 | 16 | | (b) Subsection (a) is effective as of the effective date of |
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| 17 | 17 | | the recorded original instrument. |
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| 18 | 18 | | (c) The trustee of a trust that is the named party to an |
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| 19 | 19 | | instrument may be, but is not required to be, identified by a |
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| 20 | 20 | | correction instrument under Section 5.028. |
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| 21 | 21 | | (d) A document purporting to be a certification of trust |
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| 22 | 22 | | under Section 114.086 that is recorded in the county in which real |
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| 23 | 23 | | property of the trust is located is presumed to correctly identify |
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| 24 | 24 | | the trust and the trustee and may be relied upon by a good faith |
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| 25 | 25 | | purchaser or lender for value. |
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| 26 | 26 | | SECTION 2. Section 5.028(a), Property Code, is amended to |
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| 27 | 27 | | read as follows: |
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| 28 | 28 | | (a) A person who has personal knowledge of facts relevant to |
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| 29 | 29 | | the correction of a recorded original instrument of conveyance may |
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| 30 | 30 | | prepare or execute a correction instrument to make a nonmaterial |
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| 31 | 31 | | change that results from a clerical error, including: |
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| 32 | 32 | | (1) a correction of an inaccurate or incorrect element |
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| 33 | 33 | | in a legal description, such as a distance, angle, direction, |
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| 34 | 34 | | bearing or chord, a reference to a plat or other plat information, a |
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| 35 | 35 | | lot or block number, a unit, building designation, or section |
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| 36 | 36 | | number, an appurtenant easement, a township name or number, a |
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| 37 | 37 | | municipality, county, or state name, a range number or meridian, a |
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| 38 | 38 | | certified survey map number, or a subdivision or condominium name; |
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| 39 | 39 | | or |
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| 40 | 40 | | (2) an addition, correction, or clarification of: |
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| 41 | 41 | | (A) a party's name, including the spelling of a |
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| 42 | 42 | | name, a first or middle name or initial, a suffix, an alternate name |
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| 43 | 43 | | by which a party is known, the identity of the trustee of a trust |
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| 44 | 44 | | named as party, or a description of an entity as a corporation, |
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| 45 | 45 | | company, or other type of organization; |
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| 46 | 46 | | (B) a party's marital status; |
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| 47 | 47 | | (C) the date on which the conveyance was |
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| 48 | 48 | | executed; |
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| 49 | 49 | | (D) the recording data for an instrument |
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| 50 | 50 | | referenced in the correction instrument; or |
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| 51 | 51 | | (E) a fact relating to the acknowledgment or |
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| 52 | 52 | | authentication. |
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| 53 | 53 | | SECTION 3. The changes in law made by this Act apply to an |
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| 54 | 54 | | instrument executed on, before, or after the effective date of this |
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| 55 | 55 | | Act. |
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| 56 | 56 | | SECTION 4. This Act takes effect September 1, 2023. |
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