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