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A BILL TO BE ENTITLED
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AN ACT
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relating to technical defects in instruments affecting real |
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property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 16.033(a) and (c), Civil Practice and |
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Remedies Code, are amended to read as follows: |
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(a) A person with a right of action for the recovery of real |
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property or an interest in real property conveyed by an instrument |
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with one of the following defects must bring suit not later than six |
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months [two years] after the day the instrument was filed for record |
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with the county clerk of the county where the real property is |
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located: |
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(1) lack of the signature of a proper corporate |
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officer, partner, or company officer, manager, or member; |
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(2) lack of a corporate seal; |
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(3) failure of the record to show the corporate seal |
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used; |
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(4) failure of the record to show authority of the |
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board of directors or stockholders of a corporation, partners of a |
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partnership, or officers, managers, or members of a company; |
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(5) execution and delivery of the instrument by a |
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corporation, partnership, or other company that had been dissolved, |
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whose charter had expired, or whose franchise had been canceled, |
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withdrawn, or forfeited; |
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(6) acknowledgment of the instrument in an individual, |
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rather than a representative or official, capacity; |
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(7) execution of the instrument by a trustee without |
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record of the authority of the trustee or proof of the facts recited |
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in the instrument; |
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(8) failure of the record or instrument to show an |
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acknowledgment or jurat that complies with applicable law; or |
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(9) wording of the stated consideration that may or |
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might create an implied lien in favor of the grantor. |
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(c) For the purposes of this section, an instrument |
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affecting real property containing a [ministerial] defect in, |
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omission of, or informality in the [certificate of] acknowledgment |
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that has been filed for record for longer than six months [two
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years] in the office of the county recorder of the county in which |
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the property is located is considered to have been lawfully |
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recorded and to be notice of the existence of the instrument on and |
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after the date the instrument is filed. |
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SECTION 2. The change in law made by this Act applies only |
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to an instrument filed for record on or after the effective date of |
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this Act. An instrument filed for record before the effective date |
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of this Act is governed by the law in effect immediately before the |
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effective date of this Act, and that law is continued in effect for |
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that purpose. |
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SECTION 3. This Act takes effect September 1, 2019. |