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A BILL TO BE ENTITLED
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AN ACT
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relating to expunction of a notice of lis pendens. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 12.007, Property Code, is amended by |
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adding Subsection (d) to read as follows: |
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(d) Not later than the seventh day after the date a person |
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files a notice for record under this section, the person must serve |
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a copy of the notice on each party to the action who has an interest |
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in the real property affected by the notice. |
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SECTION 2. Chapter 12, Property Code, is amended by adding |
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Section 12.0071 to read as follows: |
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Sec. 12.0071. MOTION TO EXPUNGE LIS PENDENS. (a) A party to |
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an action in connection with which a notice of lis pendens has been |
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filed may: |
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(1) apply to the court to expunge the notice; and |
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(2) file evidence, including declarations, with the |
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motion to expunge the notice. |
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(b) The court may: |
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(1) permit evidence on the motion to be received in the |
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form of oral testimony; and |
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(2) make any orders the court considers just to |
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provide for discovery by a party affected by the motion. |
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(c) The court shall order the notice of lis pendens expunged |
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if the court determines that: |
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(1) the pleading on which the notice is based does not |
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contain a real property claim; |
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(2) the claimant fails to establish by a preponderance |
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of the evidence the probable validity of the real property claim; or |
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(3) the person who filed the notice for record did not |
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serve a copy of the notice on each party entitled to a copy under |
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Section 12.007(d). |
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(d) Notice of a motion to expunge under Subsection (a) must |
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be served on each affected party on or before the 20th day before |
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the date of the hearing on the motion. |
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(e) The court shall rule on the motion for expunction based |
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on the affidavits and counteraffidavits on file and on any other |
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proof the court allows. |
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(f) After a certified copy of an order expunging a notice of |
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lis pendens has been recorded, the notice of lis pendens and any |
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information derived from the notice does not: |
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(1) constitute constructive or actual notice of any |
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matter contained in the notice or of any matter relating to the |
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proceeding; or |
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(2) create any duty of inquiry in a person with respect |
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to the property described in the notice. |
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(g) The court in its discretion may require that the party |
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prevailing in the expunction hearing submit an undertaking to the |
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court in an amount determined by the court. |
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SECTION 3. The change in law made by this Act applies only |
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to a lis pendens filed on or after the effective date of this Act. A |
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lis pendens filed before the effective date of this Act is governed |
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by the law in effect immediately before that date, and that law is |
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continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2007. |