SRC-AXB S.B. 378 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 378
By: Nixon
Jurisprudence
4/13/1999
As Filed


DIGEST 

Currently, there is ambiguity regarding several aspects of judgments
against the partial owner, rather than the other owners of property.
Significant and confusing legal questions regarding property titles can
result when the other property owners attempt to sell their property, when
an owner dies without a will, and when heirs have any outstanding pending
judgements.  S.B. 378 regulates the payment of judgment against an
undivided interest in real property. 

PURPOSE

As proposed, S.B. 378 regulates the payment of judgment against an
undivided interest in real property, and describes the responsibilities of
the owner of an undivided interest in real property and a judgment creditor
regarding the logistics of correspondence regarding this matter. 

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 Chapter 31, Civil Practice and Remedies Code, by adding
Section 31.009, as follows: 

Sec.  31.009.  PAYMENT OF JUDGMENT AGAINST UNDIVIDED INTEREST IN REAL
PROPERTY.  Sets forth the circumstances to which this section applies.
Requires the owner of undivided interest in real property (owner) to follow
a certain procedure for sending a letter notifying the judgment creditor
(creditor) of the judgment, before the owner is entitled to take certain
action.  Sets forth the required contents of the letter.  Authorizes the
owner to file certain documents and payment with the court that rendered a
judgment lien, if the creditor fails to respond to the letter by a certain
date.  Requires the owner to follow a certain procedure for sending an
affidavit to the creditor and the creditor's last attorney.  Requires the
owner to prepare a recordable release of the judgment lien abstract
describing the owner's undivided interest.  Sets forth required language of
the owner's release.  Requires the judge to execute the release of the
judgment lien on behalf of the creditor within a certain time frame, unless
the judge determines the owner is not entitled to release.  Sets forth the
required content of the judge's release.  Requires the court to hold the
owner's payment in trust for the creditor.  Requires the court clerk to
administer and render interest earned from the owner's payment, to the
creditor.  Authorizes a purchaser or lender to rely on the partial release
of a judgment lien and take title to the owner's undivided interest free
and clear of the abstract of judgment lien.  Provides that the purchaser or
lender is not required to determine if the owner complies with this
section.  Describes "judgment creditor." 

SECTION 2.(a)  Effective date:  September 1, 1999.
  
(b)  Provides that this Act applies to the payment of judgments against
undivided interests in real property, for which acceptable notice is given,
before, on, or after September 1, 1999. 

SECTION 3.Emergency clause.