| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the exclusion of certain conveyances from |
|
|
classification as sham or pretended sales. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subchapter A, Chapter 41, Property Code, is |
|
|
amended by adding Section 41.0022 to read as follows: |
|
|
Sec. 41.0022. CERTAIN CONVEYANCES NOT SHAM OR PRETENDED |
|
|
SALES. (a) In this section: |
|
|
(1) "Entity" means a domestic or foreign: |
|
|
(A) corporation, professional corporation, or |
|
|
professional association; |
|
|
(B) limited liability company or professional |
|
|
limited liability company; or |
|
|
(C) limited partnership. |
|
|
(2) "Parcel" means one or more parcels. |
|
|
(b) The conveyance of a parcel not meeting the definition of |
|
|
an urban homestead under Section 41.002(a) or (c) by an individual |
|
|
to an entity in which the individual or individual's spouse has a |
|
|
direct or indirect ownership interest is not a sham or pretended |
|
|
sale, including a pretended sale under Section 50(c), Article XVI, |
|
|
Texas Constitution, if: |
|
|
(1) the deed conveying the parcel is recorded at least |
|
|
30 days before the entity grants a mortgage, trust deed, or other |
|
|
lien on the parcel; |
|
|
(2) the individual does not reside on the parcel at the |
|
|
time of the conveyance; |
|
|
(3) the parcel is not contiguous to the parcel on which |
|
|
the individual resides; |
|
|
(4) the deed conveying the parcel does not contain a |
|
|
condition of defeasance; and |
|
|
(5) the individual recorded contemporaneously with |
|
|
the deed an affidavit substantially in the form prescribed by |
|
|
Subsection (d). |
|
|
(c) An individual executing a deed under Subsection (b) is |
|
|
estopped from claiming that: |
|
|
(1) the conveyance is a sham or pretended sale, |
|
|
including a pretended sale under Section 50(c), Article XVI, Texas |
|
|
Constitution; or |
|
|
(2) the individual had not abandoned homestead rights, |
|
|
if any, in the parcel by executing the deed. |
|
|
(d) At the time of recording a deed under Subsection (b), an |
|
|
individual grantor of the deed shall record an affidavit containing |
|
|
the following: |
|
|
(1) a title caption stating "Affidavit Regarding |
|
|
Conveyance To An Entity"; |
|
|
(2) the date of the affidavit; |
|
|
(3) a description of the deed containing: |
|
|
(A) the title of the deed; |
|
|
(B) the date of the deed; |
|
|
(C) the name and address of the individual |
|
|
grantor; and |
|
|
(D) the name and address of the entity grantee; |
|
|
(4) a description of the parcel being conveyed to the |
|
|
entity; |
|
|
(5) a description of the parcel upon which the |
|
|
individual currently resides; |
|
|
(6) a statement that the parcel being conveyed is not |
|
|
contiguous to the parcel upon which the individual currently |
|
|
resides; |
|
|
(7) a statement that the parcel upon which the |
|
|
individual currently resides is not: |
|
|
(A) located within the limits of a municipality |
|
|
or its extraterritorial jurisdiction or a platted subdivision; or |
|
|
(B) served by police protection, paid or |
|
|
volunteer fire protection, and at least three of the following |
|
|
services provided by a municipality or under contract to a |
|
|
municipality: |
|
|
(i) electric; |
|
|
(ii) natural gas; |
|
|
(iii) sewer; |
|
|
(iv) storm sewer; or |
|
|
(v) water; |
|
|
(8) a statement that: |
|
|
(A) the individual is unmarried; or |
|
|
(B) the individual is married, and including the |
|
|
name of the individual's spouse; |
|
|
(9) a statement that the individual or individual's |
|
|
spouse owns a direct or indirect interest in the entity; |
|
|
(10) a statement that the individual has executed the |
|
|
deed conveying the parcel to the entity; |
|
|
(11) a statement that the individual intends to vest |
|
|
title in the entity; |
|
|
(12) a statement that there are no written or oral |
|
|
agreements regarding a defeasance of the parcel upon the passage of |
|
|
time or occurrence or non-occurrence of any event; |
|
|
(13) a statement that the individual acknowledges that |
|
|
the individual will be estopped from claiming the conveyance to the |
|
|
entity is a sham or pretended sale, including a pretended sale under |
|
|
Section 50(c), Article XVI, Texas Constitution; |
|
|
(14) a statement that the individual acknowledges that |
|
|
the individual will be estopped from claiming the individual had |
|
|
not abandoned homestead rights, if any, in the parcel by executing |
|
|
the deed; |
|
|
(15) a statement that the individual understands that |
|
|
if the parcel is valued for ad valorem tax purposes as qualified |
|
|
open-space land, the entity must reapply in its own name by the |
|
|
applicable filing deadline; and |
|
|
(16) a statement that the individual has had an |
|
|
opportunity: |
|
|
(A) to review the affidavit prior to the |
|
|
affidavit's execution; and |
|
|
(B) to consult with an attorney before the |
|
|
affidavit's execution, whether or not the opportunity to consult |
|
|
with an attorney was exercised. |
|
|
(e) If the individual conveying a parcel under Subsection |
|
|
(b) is married, the individual's spouse must join in the execution |
|
|
of: |
|
|
(1) the deed; and |
|
|
(2) the affidavit described by Subsection (d). |
|
|
(f) The entity or a lender for value may conclusively rely |
|
|
on an affidavit described by Subsection (d). |
|
|
SECTION 2. This Act takes effect September 1, 2023. |