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A BILL TO BE ENTITLED
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AN ACT
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relating to the 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 12.0071, Property Code, is amended by |
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amending Subsection (f) and adding Subsection (h) to read as |
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follows: |
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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 or that could be derived from the notice: |
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(1) does not: |
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(A) constitute constructive or actual notice of |
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any matter contained in the notice or of any matter relating to the |
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action in connection with which the notice was filed [proceeding]; |
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(B) create any duty of inquiry in a person with |
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respect to the property described in the notice; or |
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(C) affect the validity of a conveyance to a |
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purchaser for value or of a mortgage to a lender for value; and |
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(2) is not enforceable against a purchaser or lender |
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described by Subdivision (1)(C), regardless of whether the |
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purchaser or lender knew of the lis pendens action. |
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(h) When a notice of lis pendens is expunged in accordance |
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with this section, the notice of lis pendens or the action in |
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connection with which the notice was filed does not encumber any |
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transfer of the real property. |
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SECTION 2. 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. |
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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, 2017. |