1-1 By: Marchant (Senate Sponsor - Carona) H.B. No. 1995
1-2 (In the Senate - Received from the House April 30, 2001;
1-3 April 30, 2001, read first time and referred to Committee on
1-4 Business and Commerce; May 10, 2001, reported favorably by the
1-5 following vote: Yeas 6, Nays 0; May 10, 2001, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to encumbrances that may be fixed on homestead property.
1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10 SECTION 1. Section 41.001(b), Property Code, is amended to
1-11 read as follows:
1-12 (b) Encumbrances may be properly fixed on homestead property
1-13 for:
1-14 (1) purchase money;
1-15 (2) taxes on the property;
1-16 (3) work and material used in constructing
1-17 improvements on the property if contracted for in writing as
1-18 provided by Sections 53.254(a), (b), and (c);
1-19 (4) an owelty of partition imposed against the
1-20 entirety of the property by a court order or by a written agreement
1-21 of the parties to the partition, including a debt of one spouse in
1-22 favor of the other spouse resulting from a division or an award of
1-23 a family homestead in a divorce proceeding; [or]
1-24 (5) the refinance of a lien against a homestead,
1-25 including a federal tax lien resulting from the tax debt of both
1-26 spouses, if the homestead is a family homestead, or from the tax
1-27 debt of the owner;
1-28 (6) an extension of credit that meets the requirements
1-29 of Section 50(a)(6), Article XVI, Texas Constitution; or
1-30 (7) a reverse mortgage that meets the requirements of
1-31 Sections 50(k)-(p), Article XVI, Texas Constitution.
1-32 SECTION 2. This Act takes effect September 1, 2001.
1-33 * * * * *