SRC-AAA S.B. 1614 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1614
By: Harris
Jurisprudence
3-27-97
As Filed


DIGEST 

Currently, several lenders are preparing legal instruments affecting real
property title.  In effect, these lenders are acting as title attorneys
without having a license to practice law.  S.B. 1641 prohibits a lender
from receiving compensation as a title attorney, either by hiding the
costs through interest, costs, fees, or charges in connection with a loan
secured by a lien on real property, or by the lender paying an attorney to
transact a title. 

PURPOSE

As proposed, S.B. 1614 prohibits a lender from receiving compensation as a
title attorney, either by hiding the costs through interest, costs, fees,
or charges in connection with a loan secured by a lien on real property,
or by the lender paying an attorney to transact a title. 

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 83.001(a), Government Code, to prohibit
partnerships, corporations, or other entities from receiving compensation
for preparation of certain legal instruments.  Defines "compensation." 

SECTION 2. Amends Section 83.002, Government Code, to provide that no
payments shall be made by an attorney directly or indirectly to a party to
the transaction for which the legal documents are prepared. 

SECTION 3. Effective date: September 1, 1997.

SECTION 4. Emergency clause.