Bill Text: TX HB4281 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to an instrument that names a trust as a party.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2023-04-17 - Left pending in committee [HB4281 Detail]
Download: Texas-2023-HB4281-Introduced.html
88R4247 DRS-F | ||
By: Longoria | H.B. No. 4281 |
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relating to an instrument that names a trust as a party. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter D, Chapter 114, Property Code, is | ||
amended by adding Section 114.087 to read as follows: | ||
Sec. 114.087. INSTRUMENT NAMING TRUST AS PARTY. (a) The | ||
trustee of a trust is considered for all purposes to be the named | ||
party to an instrument that names the trust as a party to the | ||
instrument in any capacity, unless the trust is a legal entity under | ||
state law. | ||
(b) Subsection (a) is effective as of the effective date of | ||
the recorded original instrument. | ||
(c) The trustee of a trust that is the named party to an | ||
instrument may be, but is not required to be, identified by a | ||
correction instrument under Section 5.028. | ||
(d) A document purporting to be a certification of trust | ||
under Section 114.086 that is recorded in the county in which real | ||
property of the trust is located is presumed to correctly identify | ||
the trust and the trustee and may be relied upon by a good faith | ||
purchaser or lender for value. | ||
SECTION 2. Section 5.028(a), Property Code, is amended to | ||
read as follows: | ||
(a) A person who has personal knowledge of facts relevant to | ||
the correction of a recorded original instrument of conveyance may | ||
prepare or execute a correction instrument to make a nonmaterial | ||
change that results from a clerical error, including: | ||
(1) a correction of an inaccurate or incorrect element | ||
in a legal description, such as a distance, angle, direction, | ||
bearing or chord, a reference to a plat or other plat information, a | ||
lot or block number, a unit, building designation, or section | ||
number, an appurtenant easement, a township name or number, a | ||
municipality, county, or state name, a range number or meridian, a | ||
certified survey map number, or a subdivision or condominium name; | ||
or | ||
(2) an addition, correction, or clarification of: | ||
(A) a party's name, including the spelling of a | ||
name, a first or middle name or initial, a suffix, an alternate name | ||
by which a party is known, the identity of the trustee of a trust | ||
named as party, or a description of an entity as a corporation, | ||
company, or other type of organization; | ||
(B) a party's marital status; | ||
(C) the date on which the conveyance was | ||
executed; | ||
(D) the recording data for an instrument | ||
referenced in the correction instrument; or | ||
(E) a fact relating to the acknowledgment or | ||
authentication. | ||
SECTION 3. The changes in law made by this Act apply to an | ||
instrument executed on, before, or after the effective date of this | ||
Act. | ||
SECTION 4. This Act takes effect September 1, 2023. |