Bill Text: TX HB2424 | 2021-2022 | 87th Legislature | Engrossed
Bill Title: Relating to the exclusion of certain conveyances from classification as pretended sales.
Spectrum: Partisan Bill (Republican 5-0)
Status: (Engrossed - Dead) 2021-05-17 - Referred to Business & Commerce [HB2424 Detail]
Download: Texas-2021-HB2424-Engrossed.html
| 87R13193 BEE-F | ||
| By: Murr, Cain, Lambert, Shine, Patterson | H.B. No. 2424 | |
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| 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. | ||
