S.B. No. 1368
 
 
 
 
AN ACT
  relating to the authority of a co-owner of residential property to
  encumber the property.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle B, Title 5, Property Code, is amended by
  adding Chapter 64 to read as follows:
  CHAPTER 64.  AUTHORITY OF CO-OWNER TO ENCUMBER RESIDENTIAL PROPERTY
         Sec. 64.001.  APPLICATION OF CHAPTER. This chapter applies
  only to residential property:
               (1)  that has residential improvements primarily
  designed for not more than four families;
               (2)  that is not more than 10 acres of land;
               (3)  that is owned by more than one person; and
               (4)  for which at least one co-owner has received a
  residence homestead exemption under Section 11.13, Tax Code.
         Sec. 64.002.  CONDITIONS FOR AUTHORITY TO ACT AS AGENT FOR
  CO-OWNER. A co-owner of residential property may act in the name of
  and on behalf of another co-owner, whether known or unknown, as the
  co-owner's statutory agent and attorney-in-fact for the purposes
  described by Section 64.004 if:
               (1)  the co-owner has occupied the property for more
  than five years;
               (2)  the co-owner has a residence homestead exemption
  for the property under Section 11.13, Tax Code;
               (3)  for the five years preceding the date the
  documents required by Section 64.003 are filed, the occupying
  co-owner has paid all assessed ad valorem taxes without delinquency
  and without contribution from the other co-owner; and
               (4)  the occupying co-owner files the documents
  required by Section 64.003.
         Sec. 64.003.  REQUIRED DOCUMENTATION. The occupying
  co-owner may establish the authority to act as an agent and
  attorney-in-fact for another co-owner by filing in the office of
  the county clerk of the county in which the real property is
  located:
               (1)  an affidavit of the occupying co-owner affirming
  the facts described by Sections 64.002(1)-(3);
               (2)  the affidavits of two additional affiants
  personally familiar with the co-owner's occupancy of the real
  property corroborating the occupancy during the preceding five
  years; and
               (3)  a certificate of the tax assessor-collector for
  the county in which the real property is located affirming that the
  co-owner has paid all taxes assessed against the real property for
  the preceding five years without delinquency.
         Sec. 64.004.  SCOPE OF AUTHORITY. (a)  The authority of the
  occupying co-owner to act as an agent and attorney-in-fact is
  limited to the authority to enter into a contract giving rise to a
  mechanic's and materialman's lien and to execute a deed of trust for
  the purpose of preserving or improving the residential property.
  The occupying co-owner is the sole obligor of the debt incurred
  under the contract and secured by the deed of trust.
         (b)  A lien that arises under a contract entered into by an
  occupying co-owner under this section is not subject to repudiation
  or disaffirmance by another co-owner.
         SECTION 2.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2011.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1368 passed the Senate on
  April 20, 2011, by the following vote:  Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1368 passed the House on
  May 23, 2011, by the following vote:  Yeas 144, Nays 1, two
  present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor