By Patterson H.J.R. No. 31
75R2106 DWS-D
A JOINT RESOLUTION
1-1 proposing a constitutional amendment permitting an encumbrance to
1-2 be fixed on a homestead for certain extensions of credit.
1-3 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 50, Article XVI, Texas Constitution, is
1-5 amended to read as follows:
1-6 Sec. 50. (a) The homestead of a family, or of a single
1-7 adult person, shall be, and is hereby protected from forced sale,
1-8 for the payment of all debts except for:
1-9 (1) the purchase money thereof, or a part of such
1-10 purchase money;
1-11 (2) [,] the taxes due thereon;
1-12 (3) [,] an owelty of partition imposed against the
1-13 entirety of the property by a court order or by a written agreement
1-14 of the parties to the partition, including a debt of one spouse in
1-15 favor of the other spouse resulting from a division or an award of
1-16 a family homestead in a divorce proceeding;
1-17 (4) [,] the refinance of a lien against a homestead,
1-18 including a federal tax lien resulting from the tax debt of both
1-19 spouses, if the homestead is a family homestead, or from the tax
1-20 debt of the owner;
1-21 (5) [, or for] work and material used in constructing
1-22 improvements thereon, if [and in this last case only when] the work
1-23 and material are contracted for in writing, with the consent of
1-24 both spouses, in the case of a family homestead, given in the same
2-1 manner as is required in making a sale and conveyance of the
2-2 homestead; or
2-3 (6) an extension of credit for any other purpose, if
2-4 the extension of credit meets the requirements of Subsection (d) of
2-5 this section.
2-6 (b) The [nor may the] owner or claimant of the property
2-7 claimed as homestead, if married, may not sell or abandon the
2-8 homestead without the consent of the other spouse, given in such
2-9 manner as may be prescribed by law.
2-10 (c) No mortgage, trust deed, or other lien on the homestead
2-11 shall ever be valid, except for a debt described by this section,
2-12 whether such mortgage, or trust deed, or other lien, shall have
2-13 been created by the owner alone, or together with his or her
2-14 spouse, in case the owner is married. All pretended sales of the
2-15 homestead involving any condition of defeasance shall be void. A
2-16 purchaser or lender for value without actual knowledge may
2-17 conclusively rely on an affidavit that designates other property as
2-18 the homestead of the affiant and that states that the property to
2-19 be conveyed or encumbered is not the homestead of the affiant.
2-20 (d) An extension of credit under Subsection (a)(6) of this
2-21 section must be the only debt secured by the homestead. Any prior
2-22 debt secured by the homestead must be paid in full before the
2-23 extension of credit under Subsection (a)(6) of this section or
2-24 refinanced as part of the extension of credit under Subsection
2-25 (a)(6) of this section. A lender may not require that a person
2-26 obtain an extension of credit under Subsection (a)(6) of this
2-27 section as a condition of receiving an extension of credit not
3-1 secured by the homestead.
3-2 SECTION 2. This proposed constitutional amendment shall be
3-3 submitted to the voters at an election to be held November 4, 1997.
3-4 The ballot shall be printed to permit voting for or against the
3-5 proposition: "The constitutional amendment permitting a homestead
3-6 to be used to secure a debt that is the sole debt secured by the
3-7 homestead."