Bill Text: TX HB207 | 2023-2024 | 88th Legislature | Enrolled
Bill Title: Relating to the exclusion of certain conveyances from classification as sham or pretended sales.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Passed) 2023-06-09 - Effective on 9/1/23 [HB207 Detail]
Download: Texas-2023-HB207-Enrolled.html
H.B. No. 207 |
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relating to the exclusion of certain conveyances from | ||
classification as sham or 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 SHAM OR 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 sham or pretended | ||
sale, including 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 that: | ||
(1) the conveyance is a sham or pretended sale, | ||
including a pretended sale under Section 50(c), Article XVI, Texas | ||
Constitution; or | ||
(2) the individual had not abandoned homestead rights, | ||
if any, in the parcel by executing the deed. | ||
(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 sham or pretended sale, including a pretended sale under | ||
Section 50(c), Article XVI, Texas Constitution; | ||
(14) a statement that the individual acknowledges that | ||
the individual will be estopped from claiming the individual had | ||
not abandoned homestead rights, if any, in the parcel by executing | ||
the deed; | ||
(15) a statement that the individual understands that | ||
if the parcel is valued for ad valorem tax purposes as qualified | ||
open-space land, the entity must reapply in its own name by the | ||
applicable filing deadline; and | ||
(16) 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). | ||
(f) The entity or a lender for value may conclusively rely | ||
on an affidavit described by Subsection (d). | ||
(g) Notwithstanding any other provision of this section, a | ||
transaction that does not meet the requirements of this section is | ||
not invalid if the homestead has been abandoned or disclaimed as | ||
provided by other provisions of law. | ||
SECTION 2. This Act takes effect September 1, 2023. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 207 was passed by the House on April | ||
20, 2023, by the following vote: Yeas 144, Nays 2, 2 present, not | ||
voting; and that the House concurred in Senate amendments to H.B. | ||
No. 207 on May 19, 2023, by the following vote: Yeas 140, Nays 0, 3 | ||
present, not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 207 was passed by the Senate, with | ||
amendments, on May 16, 2023, by the following vote: Yeas 31, Nays | ||
0. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: __________________ | ||
Date | ||
__________________ | ||
Governor |