By: Hughes S.B. No. 801
(In the Senate - Filed February 9, 2023; March 1, 2023, read
first time and referred to Committee on State Affairs;
March 13, 2023, reported favorably by the following vote: Yeas 9,
Nays 0; March 13, 2023, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to an instrument that names a trust as a party.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 114, Property Code, is
amended by adding Section 114.087 to read as follows:
Sec. 114.087. INSTRUMENT NAMING TRUST AS PARTY. (a) The
trustee of a trust is considered for all purposes to be the named
party to an instrument that names the trust as a party to the
instrument in any capacity, unless the trust is a legal entity under
state law.
(b) Subsection (a) is effective as of the effective date of
the recorded original instrument.
(c) The trustee of a trust that is the named party to an
instrument may be, but is not required to be, identified by a
correction instrument under Section 5.028.
(d) A document purporting to be a certification of trust
under Section 114.086 that is recorded in the county in which real
property of the trust is located is presumed to correctly identify
the trust and the trustee and may be relied upon by a good faith
purchaser or lender for value.
SECTION 2. Section 5.028(a), Property Code, is amended to
read as follows:
(a) A person who has personal knowledge of facts relevant to
the correction of a recorded original instrument of conveyance may
prepare or execute a correction instrument to make a nonmaterial
change that results from a clerical error, including:
(1) a correction of an inaccurate or incorrect element
in a legal description, such as a distance, angle, direction,
bearing or chord, a reference to a plat or other plat information, a
lot or block number, a unit, building designation, or section
number, an appurtenant easement, a township name or number, a
municipality, county, or state name, a range number or meridian, a
certified survey map number, or a subdivision or condominium name;
or
(2) an addition, correction, or clarification of:
(A) a party's name, including the spelling of a
name, a first or middle name or initial, a suffix, an alternate name
by which a party is known, the identity of the trustee of a trust
named as party, or a description of an entity as a corporation,
company, or other type of organization;
(B) a party's marital status;
(C) the date on which the conveyance was
executed;
(D) the recording data for an instrument
referenced in the correction instrument; or
(E) a fact relating to the acknowledgment or
authentication.
SECTION 3. The changes in law made by this Act apply to an
instrument executed on, before, or after the effective date of this
Act.
SECTION 4. This Act takes effect September 1, 2023.
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