75R5254 MLS-D
By Pitts H.B. No. 225
Substitute the following for H.B. No. 225:
By Solomons C.S.H.B. No. 225
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the statute of limitations applying to a lien on real
1-3 property.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 16.035, Civil Practice and Remedies Code,
1-6 is amended to read as follows:
1-7 Sec. 16.035. LIEN [DEBT] ON REAL PROPERTY. (a) A person
1-8 must bring suit for the recovery of real property under a real
1-9 property lien [debt] or the foreclosure of a real property lien
1-10 [debt] not later than four years after the day the cause of action
1-11 accrues.
1-12 (b) A sale of real property under a power of sale in a
1-13 mortgage or deed of trust that creates a real property [secures a]
1-14 lien [debt] must be made not later than four years after the day
1-15 the cause of action accrues.
1-16 (c) The running of the statute of limitations is not
1-17 suspended against a bona fide purchaser for value, a lienholder, or
1-18 a lessee who has no notice or knowledge of the suspension of the
1-19 limitations period and who acquires an interest in the property
1-20 when a cause of action on an outstanding real property lien has
1-21 accrued for [debt is] more than four years [past due], except as
1-22 provided by:
1-23 (1) Section 16.062, providing for suspension in the
1-24 event of death; or
2-1 (2) Section 16.036, providing for recorded extensions
2-2 of real property liens [lien debts].
2-3 (d) On the expiration of the four-year limitations period,
2-4 the real property [it is conclusively presumed that a] lien [debt
2-5 has been paid and the lien debt] and a power of sale to enforce
2-6 the real property lien become void [at that time].
2-7 (e) If a series of notes or obligations or a note or
2-8 obligation payable in installments is secured by a real property
2-9 lien [on real property], the four-year limitations period does not
2-10 begin to run until the maturity date of the last note, obligation,
2-11 or installment.
2-12 (f) The limitations period under this section is not
2-13 affected by Section 3.118, Business & Commerce Code.
2-14 (g) In this section, "real property lien" ["lien debt"]
2-15 means:
2-16 (1) a superior title retained by a vendor in a deed of
2-17 conveyance or a purchase money note; or
2-18 (2) a vendor's lien, a mortgage, a deed of trust, a
2-19 voluntary mechanic's lien, or a voluntary materialman's lien on
2-20 real estate, securing a note or other written obligation.
2-21 SECTION 2. Section 16.036, Civil Practice and Remedies Code,
2-22 is amended to read as follows:
2-23 Sec. 16.036. EXTENSION OF REAL PROPERTY LIEN [DEBT]. (a)
2-24 The party or parties primarily liable for a [lien] debt or
2-25 obligation secured by a real property lien, as that term is defined
2-26 in Section 16.035, may suspend the running of the four-year
2-27 limitations period for real property liens [lien debts] through a
3-1 written extension agreement as provided by this section.
3-2 (b) The limitations period is suspended and the lien remains
3-3 in effect for four years after the extended maturity date of the
3-4 debt or obligation [note] if the extension agreement is:
3-5 (1) signed and acknowledged as provided by law for a
3-6 deed conveying real property; and
3-7 (2) filed for record in the county clerk's office of
3-8 the county where the real property is located.
3-9 (c) The parties may continue to extend the lien by entering,
3-10 acknowledging, and recording additional extension agreements.
3-11 (d) The maturity date stated in the original instrument or
3-12 in the date of the recorded renewal and extension is conclusive
3-13 evidence of the maturity date of the debt or obligation.
3-14 (e) The limitations period under this section is not
3-15 affected by Section 3.118, Business & Commerce Code.
3-16 SECTION 3. Section 16.037, Civil Practice and Remedies Code,
3-17 is amended to read as follows:
3-18 Sec. 16.037. EFFECT OF EXTENSION OF REAL PROPERTY LIEN
3-19 [DEBT] ON THIRD PARTIES. An extension agreement is void as to a
3-20 bona fide purchaser for value, a lienholder, or a lessee who deals
3-21 with real property affected by a real property lien [debt] without
3-22 actual notice of the agreement and before the agreement is
3-23 acknowledged, filed, and recorded.
3-24 SECTION 4. Section 3.118, Business & Commerce Code, is
3-25 amended by adding Subsection (h) to read as follows:
3-26 (h) This section does not apply to an action involving a
3-27 real property lien covered by Section 16.035 or 16.036, Civil
4-1 Practice and Remedies Code.
4-2 SECTION 5. The importance of this legislation and the
4-3 crowded condition of the calendars in both houses create an
4-4 emergency and an imperative public necessity that the
4-5 constitutional rule requiring bills to be read on three several
4-6 days in each house be suspended, and this rule is hereby suspended,
4-7 and that this Act take effect and be in force from and after its
4-8 passage, and it is so enacted.