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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. 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. (a) Except as provided by |
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this subsection, a court in which a proceeding is pending under |
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Section 12.007 shall, on the motion of a party to the proceeding |
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supported by an affidavit, order that the lis pendens for which a |
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notice of lis pendens has been recorded under Section 12.007 be |
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expunged. A court may not order a lis pendens expunged under this |
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subsection if the party that filed the notice proves to the court by |
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a preponderance of the evidence that: |
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(1) the proceeding affects: |
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(A) title to real property; |
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(B) the establishment of an interest in real |
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property; or |
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(C) the enforcement of an encumbrance against |
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real property described in the notice; and |
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(2) the person filing the notice commenced or |
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prosecuted the proceeding for a proper purpose and in good faith. |
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(b) 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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(c) 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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(d) 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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(e) 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 2. 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 3. This Act takes effect September 1, 2007. |