87R13193 BEE-F
 
  By: Murr, Cain, Lambert, Shine, Patterson H.B. No. 2424
 
  Substitute the following for H.B. No. 2424:
 
  By:  Turner of Tarrant C.S.H.B. No. 2424
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the exclusion of certain conveyances from
  classification as pretended sales.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter A, Chapter 41, Property Code, is
  amended by adding Section 41.0022 to read as follows:
         Sec. 41.0022.  CERTAIN CONVEYANCES NOT PRETENDED SALES. (a)
  In this section:
               (1)  "Entity" means a domestic or foreign:
                     (A)  corporation, professional corporation, or
  professional association;
                     (B)  limited liability company or professional
  limited liability company; or
                     (C)  limited partnership.
               (2)  "Parcel" means one or more parcels.
         (b)  The conveyance of a parcel not meeting the definition of
  an urban homestead under Section 41.002(a) or (c) by an individual
  to an entity in which the individual or individual's spouse has a
  direct or indirect ownership interest is not a pretended sale under
  Section 50(c), Article XVI, Texas Constitution, if:
               (1)  the deed conveying the parcel is recorded at least
  30 days before the entity grants a mortgage, trust deed, or other
  lien on the parcel;
               (2)  the individual does not reside on the parcel at the
  time of the conveyance;
               (3)  the parcel is not contiguous to the parcel on which
  the individual resides;
               (4)  the deed conveying the parcel does not contain a
  condition of defeasance; and
               (5)  the individual recorded contemporaneously with
  the deed an affidavit substantially in the form prescribed by
  Subsection (d).
         (c)  An individual executing a deed under Subsection (b) is
  estopped from claiming the conveyance is a pretended sale under
  Section 50(c), Article XVI, Texas Constitution.
         (d)  At the time of recording a deed under Subsection (b), an
  individual grantor of the deed shall record an affidavit containing
  the following:
               (1)  a title caption stating "Affidavit Regarding
  Conveyance To An Entity";
               (2)  the date of the affidavit;
               (3)  a description of the deed containing:
                     (A)  the title of the deed;
                     (B)  the date of the deed;
                     (C)  the name and address of the individual
  grantor; and
                     (D)  the name and address of the entity grantee;
               (4)  a description of the parcel being conveyed to the
  entity;
               (5)  a description of the parcel upon which the
  individual currently resides;
               (6)  a statement that the parcel being conveyed is not
  contiguous to the parcel upon which the individual currently
  resides;
               (7)  a statement that the parcel upon which the
  individual currently resides is not:
                     (A)  located within the limits of a municipality
  or its extraterritorial jurisdiction or a platted subdivision; or
                     (B)  served by police protection, paid or
  volunteer fire protection, and at least three of the following
  services provided by a municipality or under contract to a
  municipality:
                           (i)  electric;
                           (ii)  natural gas;
                           (iii)  sewer;
                           (iv)  storm sewer; or
                           (v)  water;
               (8)  a statement that:
                     (A)  the individual is unmarried; or
                     (B)  the individual is married, and including the
  name of the individual's spouse;
               (9)  a statement that the individual or individual's
  spouse owns a direct or indirect interest in the entity;
               (10)  a statement that the individual has executed the
  deed conveying the parcel to the entity;
               (11)  a statement that the individual intends to vest
  title in the entity;
               (12)  a statement that there are no written or oral
  agreements regarding a defeasance of the parcel upon the passage of
  time or occurrence or non-occurrence of any event;
               (13)  a statement that the individual acknowledges that
  the individual will be estopped from claiming the conveyance to the
  entity is a pretended sale under Section 50(c), Article XVI, Texas
  Constitution; and
               (14)  a statement that the individual has had an
  opportunity:
                     (A)  to review the affidavit prior to the
  affidavit's execution; and
                     (B)  to consult with an attorney before the
  affidavit's execution, whether or not the opportunity to consult
  with an attorney was exercised.
         (e)  If the individual conveying a parcel under Subsection
  (b) is married, the individual's spouse must join in the execution
  of:
               (1)  the deed; and
               (2)  the affidavit described by Subsection (d).
         SECTION 2.  This Act takes effect September 1, 2021.