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A BILL TO BE ENTITLED
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AN ACT
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relating to technical defects in instruments conveying real |
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property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 16.033, Civil Practice and Remedies |
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Code, is amended by amending Subsection (a) and adding Subsection |
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(c) to read as follows: |
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(a) A person with a right of action for the recovery of real |
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property or an interest in real property conveyed by an instrument |
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with one of the following defects must bring suit not later than two |
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[four] years after the day the instrument was filed for record |
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[recorded] with the county clerk of the county where the real |
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property is located: |
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(1) lack of the signature of a proper corporate |
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officer, partner, or company officer, manager, or member; |
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(2) lack of a corporate seal; |
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(3) failure of the record to show the corporate seal |
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used; |
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(4) failure of the record to show authority of the |
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board of directors or stockholders of a corporation, partners of a |
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partnership, or officers, managers, or members of a company; |
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(5) execution and delivery of the instrument by a |
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corporation, partnership, or other company that had been dissolved, |
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whose charter had expired, or whose franchise had been canceled, |
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withdrawn, or forfeited; |
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(6) acknowledgment of the instrument in an individual, |
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rather than a representative or official, capacity; |
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(7) execution of the instrument by a trustee without |
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record of the authority of the trustee or proof of the facts recited |
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in the instrument; |
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(8) failure of the record or instrument to show or |
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include an acknowledgment or jurat that complies with applicable |
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law; or |
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(9) wording of the stated consideration that may or |
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might create an implied lien in favor of the grantor. |
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(c) For the purposes of this section, an instrument |
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affecting real property containing a defect, omission, or |
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informality in the certificate of acknowledgment or failing to |
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contain a certificate of acknowledgment and that has been filed for |
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record for longer than two years in the office of the county |
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recorder of the county in which the property is located is |
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considered to have been lawfully recorded and to be notice of the |
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existence of the instrument on and after the date the instrument is |
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filed. |
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SECTION 2. The change in law made by this Act applies only |
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to an instrument filed for record on or after the effective date of |
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this Act. An instrument filed for record before the effective date |
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of this Act is governed by the law in effect immediately before that |
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date, and that law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |