Bill Text: TX SB1320 | 2011-2012 | 82nd Legislature | Enrolled
Bill Title: Relating to the execution of written instruments relating to residential real estate transactions and deeds conveying residential real estate in connection with certain transactions involving residential real estate; providing a civil penalty.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Passed) 2011-06-17 - Effective on 9/1/11 [SB1320 Detail]
Download: Texas-2011-SB1320-Enrolled.html
S.B. No. 1320 |
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relating to the execution of written instruments relating to | ||
residential real estate transactions and deeds conveying | ||
residential real estate in connection with certain transactions | ||
involving residential real estate; providing a civil penalty. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Title 2, Business & Commerce Code, is amended by | ||
adding Chapter 21 to read as follows: | ||
CHAPTER 21. EXECUTION OF DEEDS IN CERTAIN TRANSACTIONS INVOLVING | ||
RESIDENTIAL REAL ESTATE | ||
Sec. 21.001. DEFINITION. In this chapter, "residential | ||
real estate" means real property on which a dwelling designed for | ||
occupancy for one to four families is constructed or intended to be | ||
constructed. | ||
Sec. 21.002. PROHIBITION OF EXECUTION OF DEEDS CONVEYING | ||
RESIDENTIAL REAL ESTATE IN CERTAIN TRANSACTIONS. (a) A seller of | ||
residential real estate or a person who makes an extension of credit | ||
and takes a security interest or mortgage against residential real | ||
estate may not, before or at the time of the conveyance of the | ||
residential real estate to the purchaser or the extension of credit | ||
to the borrower, request or require the purchaser or borrower to | ||
execute and deliver to the seller or person making the extension of | ||
credit a deed conveying the residential real estate to the seller or | ||
person making the extension of credit. | ||
(b) A deed executed in violation of this section is voidable | ||
unless a subsequent purchaser of the residential real estate, for | ||
valuable consideration, obtains an interest in the property after | ||
the deed was recorded without notice of the violation, including | ||
notice provided by actual possession of the property by the grantor | ||
of the deed. The residential real estate continues to be subject to | ||
the security interest of a creditor who, without notice of the | ||
violation, granted an extension of credit to a borrower based on the | ||
deed executed in violation of this section. | ||
(c) A purchaser or borrower must bring an action to void a | ||
deed executed in violation of this section not later than the fourth | ||
anniversary of the date the deed was recorded. | ||
(d) A purchaser or borrower who is a prevailing party in an | ||
action to void a deed under this section may recover reasonable and | ||
necessary attorney's fees. | ||
Sec. 21.003. ACTION BY ATTORNEY GENERAL. (a) The attorney | ||
general may bring an action on behalf of the state: | ||
(1) for injunctive relief to require compliance with | ||
this chapter; | ||
(2) to recover a civil penalty of $500 for each | ||
violation of this chapter; or | ||
(3) for both injunctive relief and to recover the | ||
civil penalty. | ||
(b) The attorney general is entitled to recover reasonable | ||
expenses incurred in obtaining injunctive relief or a civil | ||
penalty, or both, under this section, including court costs and | ||
reasonable attorney's fees. | ||
(c) The court may make such additional orders or judgments | ||
as are necessary to return to the purchaser a deed conveying | ||
residential real estate that the court finds was acquired by means | ||
of any violation of this chapter. | ||
(d) In bringing or participating in an action under this | ||
chapter, the attorney general acts in the name of the state and does | ||
not establish an attorney-client relationship with another person, | ||
including a person to whom the attorney general requests that the | ||
court award relief. | ||
(e) An action by the attorney general must be brought not | ||
later than the fourth anniversary of the date the deed was recorded. | ||
SECTION 2. Subsection (a), Section 121.005, Civil Practice | ||
and Remedies Code, is amended to read as follows: | ||
(a) An officer may not take the acknowledgment of a written | ||
instrument unless the officer knows or has satisfactory evidence | ||
that the acknowledging person is the person who executed the | ||
instrument and is described in it. An officer may accept, as | ||
satisfactory evidence of the identity of an acknowledging person, | ||
only: | ||
(1) the oath of a credible witness personally known to | ||
the officer; [ |
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(2) a current identification card or other document | ||
issued by the federal government or any state government that | ||
contains the photograph and signature of the acknowledging person; | ||
or | ||
(3) with respect to a deed or other instrument | ||
relating to a residential real estate transaction, a current | ||
passport issued by a foreign country. | ||
SECTION 3. Section 24.004, Property Code, is amended to | ||
read as follows: | ||
Sec. 24.004. JURISDICTION; DISMISSAL. (a) Except as | ||
provided by Subsection (b), a [ |
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which the real property is located has jurisdiction in eviction | ||
suits. Eviction suits include forcible entry and detainer and | ||
forcible detainer suits. | ||
(b) A justice court does not have jurisdiction in a forcible | ||
entry and detainer or forcible detainer suit and shall dismiss the | ||
suit if the defendant files a sworn statement alleging the suit is | ||
based on a deed executed in violation of Chapter 21, Business & | ||
Commerce Code. | ||
SECTION 4. This Act takes effect September 1, 2011. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 1320 passed the Senate on | ||
April 28, 2011, by the following vote: Yeas 31, Nays 0; | ||
May 24, 2011, Senate refused to concur in House amendment and | ||
requested appointment of Conference Committee; May 27, 2011, House | ||
granted request of the Senate; May 29, 2011, Senate adopted | ||
Conference Committee Report by the following vote: Yeas 31, | ||
Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 1320 passed the House, with | ||
amendment, on May 20, 2011, by the following vote: Yeas 147, | ||
Nays 2, one present not voting; May 27, 2011, House granted request | ||
of the Senate for appointment of Conference Committee; | ||
May 29, 2011, House adopted Conference Committee Report by the | ||
following vote: Yeas 112, Nays 15, two present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |