Bill Text: TX SB1368 | 2011-2012 | 82nd Legislature | Enrolled
Bill Title: Relating to the authority of a co-owner of residential property to encumber the property.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2011-06-17 - Effective immediately [SB1368 Detail]
Download: Texas-2011-SB1368-Enrolled.html
S.B. No. 1368 |
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relating to the authority of a co-owner of residential property to | ||
encumber the property. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subtitle B, Title 5, Property Code, is amended by | ||
adding Chapter 64 to read as follows: | ||
CHAPTER 64. AUTHORITY OF CO-OWNER TO ENCUMBER RESIDENTIAL PROPERTY | ||
Sec. 64.001. APPLICATION OF CHAPTER. This chapter applies | ||
only to residential property: | ||
(1) that has residential improvements primarily | ||
designed for not more than four families; | ||
(2) that is not more than 10 acres of land; | ||
(3) that is owned by more than one person; and | ||
(4) for which at least one co-owner has received a | ||
residence homestead exemption under Section 11.13, Tax Code. | ||
Sec. 64.002. CONDITIONS FOR AUTHORITY TO ACT AS AGENT FOR | ||
CO-OWNER. A co-owner of residential property may act in the name of | ||
and on behalf of another co-owner, whether known or unknown, as the | ||
co-owner's statutory agent and attorney-in-fact for the purposes | ||
described by Section 64.004 if: | ||
(1) the co-owner has occupied the property for more | ||
than five years; | ||
(2) the co-owner has a residence homestead exemption | ||
for the property under Section 11.13, Tax Code; | ||
(3) for the five years preceding the date the | ||
documents required by Section 64.003 are filed, the occupying | ||
co-owner has paid all assessed ad valorem taxes without delinquency | ||
and without contribution from the other co-owner; and | ||
(4) the occupying co-owner files the documents | ||
required by Section 64.003. | ||
Sec. 64.003. REQUIRED DOCUMENTATION. The occupying | ||
co-owner may establish the authority to act as an agent and | ||
attorney-in-fact for another co-owner by filing in the office of | ||
the county clerk of the county in which the real property is | ||
located: | ||
(1) an affidavit of the occupying co-owner affirming | ||
the facts described by Sections 64.002(1)-(3); | ||
(2) the affidavits of two additional affiants | ||
personally familiar with the co-owner's occupancy of the real | ||
property corroborating the occupancy during the preceding five | ||
years; and | ||
(3) a certificate of the tax assessor-collector for | ||
the county in which the real property is located affirming that the | ||
co-owner has paid all taxes assessed against the real property for | ||
the preceding five years without delinquency. | ||
Sec. 64.004. SCOPE OF AUTHORITY. (a) The authority of the | ||
occupying co-owner to act as an agent and attorney-in-fact is | ||
limited to the authority to enter into a contract giving rise to a | ||
mechanic's and materialman's lien and to execute a deed of trust for | ||
the purpose of preserving or improving the residential property. | ||
The occupying co-owner is the sole obligor of the debt incurred | ||
under the contract and secured by the deed of trust. | ||
(b) A lien that arises under a contract entered into by an | ||
occupying co-owner under this section is not subject to repudiation | ||
or disaffirmance by another co-owner. | ||
SECTION 2. This Act takes effect immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2011. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 1368 passed the Senate on | ||
April 20, 2011, by the following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 1368 passed the House on | ||
May 23, 2011, by the following vote: Yeas 144, Nays 1, two | ||
present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |