By Smith H.B. No. 1453
76R5197 DLF-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to coverage under a title insurance policy issued with
1-3 respect to residential real property.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Article 9.07A, Insurance Code, is amended by
1-6 adding Subsection (f) to read as follows:
1-7 (f) Notwithstanding any other law, an owner policy issued in
1-8 connection with a transaction involving residential real property
1-9 in this state shall indemnify the owner of the property for any
1-10 delinquent ad valorem taxes, including penalties and interest, to
1-11 be paid with respect to the property and any tax lien imposed on
1-12 the property to secure payment of ad valorem taxes, including
1-13 penalties and interest, if the owner purchased the property for
1-14 consideration and did not know about the delinquent tax or tax lien
1-15 at the time the owner purchased the property. This subsection
1-16 applies only to real property that is owned by a natural person and
1-17 occupied by the owner as the owner's principal residence.
1-18 SECTION 2. Subchapter C, Chapter 11, Tax Code, is amended by
1-19 adding Section 11.48 to read as follows:
1-20 Sec. 11.48. NOTICE TO COUNTY CLERK; REAL PROPERTY RECORDS.
1-21 (a) The chief appraiser shall send written notice to the county
1-22 clerk of the county in which the property is located of:
1-23 (1) each application for an exemption under Section
1-24 11.13 that is approved by the chief appraiser; and
2-1 (2) each exemption under Section 11.13 that is
2-2 canceled by the chief appraiser.
2-3 (b) Notice under Subsection (a) must be sent not later than
2-4 the fifth day after the date the chief appraiser approves the
2-5 application or cancels the exemption and must include a legal
2-6 description of the property.
2-7 (c) The county clerk shall file notice received under this
2-8 section in the real property records for the county.
2-9 SECTION 3. Section 118.013(c), Local Government Code, is
2-10 amended to read as follows:
2-11 (c) The fee does not apply to:
2-12 (1) map records;
2-13 (2) condominium records;
2-14 (3) documents filed in accordance with Section 11.48,
2-15 Tax Code;
2-16 (4) notary public records;
2-17 (5) [(4)] marriage records;
2-18 (6) [(5)] vital statistics records;
2-19 (7) [(6)] documents filed in the records of county
2-20 civil or criminal courts or probate courts; or
2-21 (8) [(7)] personal property, chattels, and personal
2-22 records in the office of the county clerk.
2-23 SECTION 4. This Act takes effect September 1, 1999.
2-24 SECTION 5. Article 9.07A(f), Insurance Code, as added by
2-25 this Act, applies only to an owner policy of title insurance that
2-26 is delivered or issued for delivery on or after January 1, 2000.
2-27 An owner policy of title insurance that is delivered or issued for
3-1 delivery before January 1, 2000, is governed by the law as it
3-2 existed immediately before the effective date of this Act, and that
3-3 law is continued in effect for that purpose.
3-4 SECTION 6. Section 11.48, Tax Code, as added by this Act,
3-5 applies only to an application for a residence homestead exemption
3-6 that is approved on or after the effective date of this Act and a
3-7 change in an appraisal of real property that occurs on or after the
3-8 effective date of this Act.
3-9 SECTION 7. The importance of this legislation and the
3-10 crowded condition of the calendars in both houses create an
3-11 emergency and an imperative public necessity that the
3-12 constitutional rule requiring bills to be read on three several
3-13 days in each house be suspended, and this rule is hereby suspended.