88R4247 DRS-F
 
  By: Longoria H.B. No. 4281
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  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.