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A BILL TO BE ENTITLED
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AN ACT
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relating to an instrument that names a trust as a party. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter D, Chapter 114, Property Code, is |
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amended by adding Section 114.087 to read as follows: |
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Sec. 114.087. INSTRUMENT NAMING TRUST AS PARTY. (a) The |
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trustee of a trust is considered for all purposes to be the named |
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party to an instrument that names the trust as a party to the |
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instrument in any capacity, unless the trust is a legal entity under |
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state law. |
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(b) Subsection (a) is effective as of the effective date of |
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the recorded original instrument. |
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(c) The trustee of a trust that is the named party to an |
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instrument may be, but is not required to be, identified by a |
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correction instrument under Section 5.028. |
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(d) A document purporting to be a certification of trust |
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under Section 114.086 that is recorded in the county in which real |
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property of the trust is located is presumed to correctly identify |
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the trust and the trustee and may be relied upon by a good faith |
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purchaser or lender for value. |
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SECTION 2. Section 5.028(a), Property Code, is amended to |
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read as follows: |
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(a) A person who has personal knowledge of facts relevant to |
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the correction of a recorded original instrument of conveyance may |
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prepare or execute a correction instrument to make a nonmaterial |
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change that results from a clerical error, including: |
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(1) a correction of an inaccurate or incorrect element |
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in a legal description, such as a distance, angle, direction, |
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bearing or chord, a reference to a plat or other plat information, a |
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lot or block number, a unit, building designation, or section |
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number, an appurtenant easement, a township name or number, a |
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municipality, county, or state name, a range number or meridian, a |
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certified survey map number, or a subdivision or condominium name; |
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or |
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(2) an addition, correction, or clarification of: |
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(A) a party's name, including the spelling of a |
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name, a first or middle name or initial, a suffix, an alternate name |
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by which a party is known, the identity of the trustee of a trust |
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named as party, or a description of an entity as a corporation, |
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company, or other type of organization; |
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(B) a party's marital status; |
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(C) the date on which the conveyance was |
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executed; |
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(D) the recording data for an instrument |
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referenced in the correction instrument; or |
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(E) a fact relating to the acknowledgment or |
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authentication. |
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SECTION 3. The changes in law made by this Act apply to an |
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instrument executed on, before, or after the effective date of this |
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Act. |
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SECTION 4. This Act takes effect September 1, 2023. |
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* * * * * |