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A BILL TO BE ENTITLED
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AN ACT
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relating to scope and validity of correction instruments in the |
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conveyance of real property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 5, Property Code, is |
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amended by adding Section 5.027 to read as follows: |
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Sec. 5.027. CORRECTION INSTRUMENTS. (a) Except as |
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provided by Subsection (b), a correction instrument may correct |
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only an ambiguity or error in an instrument of conveyance to |
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transfer real property or an interest in real property if the |
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ambiguity or error: |
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(1) relates to the description of or extent of the |
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interest conveyed; or |
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(2) resulted in: |
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(A) the conveyance of real property or an |
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interest in real property that the parties to the original |
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instrument did not intend to convey; or |
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(B) the failure to convey real property or an |
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interest in real property that the parties to the original |
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instrument intended to convey. |
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(b) A correction instrument may not correct an ambiguity or |
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error in an instrument of conveyance to transfer real property or an |
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interest in real property not originally conveyed in the instrument |
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of conveyance for purposes of a sale of real property under a power |
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of sale under Chapter 51. |
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(c) A correction instrument must be: |
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(1) executed by each party to the original instrument |
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the correction instrument is executed to correct; and |
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(2) recorded in each county in which the original |
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instrument that is being corrected is recorded. |
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(d) A correction instrument that does not comply with this |
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section is: |
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(1) binding on: |
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(A) a party to the instrument and the party's |
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heirs; and |
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(B) a subsequent purchaser who: |
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(i) does not pay a valuable consideration |
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for the real property or an interest in the real property; or |
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(ii) has notice of the correction |
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instrument; and |
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(2) void as to a creditor or to a subsequent purchaser |
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who: |
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(A) pays a valuable consideration for the real |
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property or an interest in the real property; and |
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(B) does not have notice of the correction |
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instrument. |
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(e) A correction instrument that complies with this section |
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or is otherwise binding relates back and is effective as of the date |
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of the original instrument the correction instrument is executed to |
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correct. |
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SECTION 2. The changes in law made by this Act apply only to |
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a correction instrument executed on or after the effective date of |
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this Act. A correction instrument executed before the effective |
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date of this Act is governed by the law in effect immediately before |
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the effective date of this Act, and that law is continued in effect |
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for that purpose. |
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SECTION 3. This Act takes effect September 1, 2011. |