Texas 2025 - 89th Regular

Texas Senate Bill SB647 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: West, Blanco S.B. No. 647
	1	+	By: West S.B. No. 647
	2	+	(In the Senate - Filed December 18, 2024; February 3, 2025,
	3	+	read first time and referred to Committee on Business & Commerce;
	4	+	April 16, 2025, reported adversely, with favorable Committee
	5	+	Substitute by the following vote: Yeas 10, Nays 0, one present not
	6	+	voting; April 16, 2025, sent to printer.)
	7	+	Click here to see the committee vote
	8	+	COMMITTEE SUBSTITUTE FOR S.B. No. 647 By: Blanco
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6	13		A BILL TO BE ENTITLED
7	14		AN ACT
8	15		relating to the filing or recording of documents or instruments
9	16		conveying or purporting to convey an interest in real or personal
10	17		property.
11	18		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	19		SECTION 1. Section 51.901, Government Code, is amended by
13	20		amending Subsections (a), (c), and (d) and adding Subsections (c-1)
14	21		and (d-1) to read as follows:
15	22		(a) If a clerk of the supreme court, clerk of the court of
16	23		criminal appeals, clerk of a court of appeals, district clerk,
17	24		county clerk, district and county clerk, or municipal clerk has a
18	25		reasonable basis to believe in good faith that a document or
19	26		instrument previously filed or recorded or offered or submitted for
20	27		filing or for filing and recording is fraudulent, the clerk shall:
21	28		(1) if the document is a purported judgment or other
22	29		document purporting to memorialize or evidence an act, an order, a
23	30		directive, or process of a purported court, provide written notice
24	31		of the filing, recording, or submission for filing or for filing and
25	32		recording to the stated or last known address of the person against
26	33		whom the purported judgment, act, order, directive, or process is
27	34		rendered; or
28	35		(2) if the document or instrument purports to create a
29	36		lien against or assert a claim to [on real or personal property] or
30	37		an interest in real or personal property, provide written notice of
31	38		the filing, recording, or submission for filing or for filing and
32	39		recording to the stated or last known address of:
33	40		(A) the person named in the document or
34	41		instrument as the grantor, obligor, or debtor, and to any person
35	42		named as the grantee or as owning or acquiring any interest in the
36	43		real or personal property described in the document or instrument;
37	44		and
38	45		(B) as applicable, the last known owner of the
39	46		property if that owner's address is different from the address of
40	47		the grantor, obligor, or debtor named in the document or
41	48		instrument.
42	49		(c) For purposes of this section, a document or instrument
43	50		is presumed to be fraudulent if:
44	51		(1) the document is a purported judgment or other
45	52		document purporting to memorialize or evidence an act, an order, a
46	53		directive, or process of:
47	54		(A) a purported court or a purported judicial
48	55		entity not expressly created or established under the constitution
49	56		or the laws of this state or of the United States; or
50	57		(B) a purported judicial officer of a purported
51	58		court or purported judicial entity described by Paragraph (A);
52	59		(2) the document or instrument purports to create a
53	60		lien against or assert a claim to [against real or personal
54	61		property] or an interest in real or personal property and:
55	62		(A) is not a document or instrument provided for
56	63		by the constitution or laws of this state or of the United States;
57	64		(B) is not created by implied or express consent
58	65		or agreement of the grantor, obligor, debtor, or the owner of the
59	66		real or personal property or an interest in the real or personal
60	67		property, if required under the laws of this state, or by implied or
61	68		express consent or agreement of an agent, fiduciary, or other
62	69		representative of that person; or
63	70		(C) is not an equitable, constructive, or other
64	71		lien imposed by a court with jurisdiction created or established
65	72		under the constitution or laws of this state or of the United
66	73		States; or
67	74		(3) the document or instrument purports to create a
68	75		lien or assert a claim against real or personal property or an
69	76		interest in real or personal property and the document or
70	77		instrument is filed by an inmate or on behalf of an inmate.
71	78		(c-1) For purposes of this section, a document or instrument
72	79		is presumed to not be fraudulent if the prospective filer provides
73	80		to the county clerk, at the time of filing or on the clerk's
74	81		request, additional documentation such as a contract for the sale
75	82		of or another document creating a lien against or asserting a claim
76	83		to the property subject to the document or instrument that contains
77	84		the signature of the property owner.
78	85		(d) If a county clerk believes in good faith that a document
79	86		or instrument filed, recorded, or submitted for filing or recording
80	87		with the county clerk to create a lien against or assert a claim to
81	88		or an interest in real or personal property is fraudulent, the clerk
82	89		shall:
83	90		(1) request the assistance of the county or district
84	91		attorney to determine whether the document or instrument is
85	92		fraudulent before filing or recording the document or instrument;
86	93		(2) request that the prospective filer provide to the
87	94		county clerk additional documentation supporting the existence of
88	95		the lien, claim, or interest, such as a contract or other document
89	96		that contains the signature of the alleged owner, debtor, grantor,
90	97		or obligor [obligor's signature]; [and]
91	98		(3) forward any additional documentation received to
92	99		the county or district attorney; and
93	100		(4) refuse to file or record the document or
94	101		instrument submitted for filing or recording if:
95	102		(A) the district or county attorney whose
96	103		assistance the clerk requested under Subdivision (1) determines
97	104		there is probable cause to believe the document or instrument is
98	105		fraudulent; or
99	106		(B) the prospective filer does not provide the
100	107		clerk the additional documentation requested under Subdivision
101	108		(2).
102	109		(d-1) The additional documentation described by Subsection
103	110		(c-1) or (d)(2):
104	111		(1) is confidential and exempt from disclosure under
105	112		Chapter 552; and
106	113		(2) may be submitted to a county clerk by an individual
107	114		or entity without civil process.
108	115		SECTION 2. Section 12.003(b), Civil Practice and Remedies
109	116		Code, is amended to read as follows:
110	117		(b) Notwithstanding any other law, a person or a person
111	118		licensed or regulated by Title 11, Insurance Code (the Texas Title
112	119		Insurance Act), does not have a duty to disclose a fraudulent, as
113	120		described by Section 51.901(c), Government Code, court record,
114	121		document, or instrument purporting to create a lien against or
115	122		[purporting to] assert a claim to [on real property] or an interest
116	123		in real property in connection with a sale, conveyance, mortgage,
117	124		or other transfer of the real property or interest in real property.
118	125		SECTION 3. The changes in law made by this Act apply only to
119	126		a document or instrument conveying or purporting to convey an
120	127		interest in real or personal property filed, recorded, or offered
121	128		for filing or recording on or after the effective date of this Act.
122	129		A document or instrument conveying or purporting to convey an
123	130		interest in real or personal property filed, recorded, or offered
124	131		for filing or recording before the effective date of this Act is
125	132		governed by the law in effect on the day the document or instrument
126	133		was filed, recorded, or offered for filing or recording, and the
127	134		former law is continued in effect for that purpose.
128	135		SECTION 4. This Act takes effect September 1, 2025.
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