SRC-SLL S.B. 1094 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1094
By: Wentworth
Jurisprudence
3-26-97
As Filed


DIGEST 

Currently, in order to fix a mechanic's, contractor's, or materialman's
lien on a homestead, a person who is to furnish material or perform labor
and the owner must execute a written contract setting forth the terms of
the agreement and file it with the county clerk of the county in which the
homestead is located.  If the filing proves to be inadequate for any
reason, the contract is unenforceable.  This bill will provide that
creation of a lien on a homestead is binding between the parties
regardless of filing, but will not be binding on third parties without
notice. 

PURPOSE

As proposed, S.B. 1094 provides that creation of a lien on a homestead is
binding between the parties regardless of filing, but will not be binding
on third parties without notice. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 13.001(a), Property Code, to provide that a
contract executed under Section 53.059, Property Code, is void as to a
creditor or to a subsequent purchaser for a valuable consideration without
notice unless the instrument has been acknowledged, sworn to, or proved
and filed for record as required by law. 

SECTION 2. Repealer: Section 53.059(d), Property Code (Homestead).

SECTION 3. Effective date: September 1, 1997.
  Makes application of this Act prospective.

SECTION 4. Emergency clause.