Relating to status of certain documents or instruments purporting to convey title to or an interest in real property.

89(R) HB 4531 - House Committee Report version - Bill Text

89R5453 JBD-D

By: Bhojani, Button, Ordaz, Longoria,

H.B. No. 4531

Richardson

A BILL TO BE ENTITLED

AN ACT

relating to status of certain documents or instruments purporting

to convey title to or an interest in real property.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 51.901(c), Government Code, is amended

to read as follows:

(c) For purposes of this section, a document or instrument

is presumed to be fraudulent if:

(1) the document is a purported judgment or other

document purporting to memorialize or evidence an act, an order, a

directive, or process of:

(A) a purported court or a purported judicial

entity not expressly created or established under the constitution

or the laws of this state or of the United States; or

(B) a purported judicial officer of a purported

court or purported judicial entity described by Paragraph (A);

(2) the document or instrument purports to create a

lien or assert a claim against real or personal property or an

interest in real or personal property and:

(A) is not a document or instrument provided for

by the constitution or laws of this state or of the United States;

(B) is not created by implied or express consent

or agreement of the obligor, debtor, or the owner of the real or

personal property or an interest in the real or personal property,

if required under the laws of this state, or by implied or express

consent or agreement of an agent, fiduciary, or other

representative of that person; or

(C) is not an equitable, constructive, or other

lien imposed by a court with jurisdiction created or established

under the constitution or laws of this state or of the United

States; [
or
]

(3) the document or instrument purports to create a

lien or assert a claim against real or personal property or an

interest in real or personal property and the document or

instrument is filed by an inmate or on behalf of an inmate
; or

(4)

the document or instrument purports to convey

title to or an interest in real property and:

(A)

a person has been convicted of an offense

under Title 7 or Title 8, Penal Code, for conduct with respect to

the document or instrument; or

(B)

the document or instrument is the subject of

an owner's affidavit and certificate of mailing filed and recorded

in accordance with Section 5.0206, Property Code, and a

controverting affidavit was not timely filed for recording under

that section
.

SECTION 2. Subchapter J, Chapter 51, Government Code, is

amended by adding Section 51.9035 to read as follows.

Sec.

51.9035.

ACTION ON FRAUDULENT CONVEYANCE. (a)

Subject to Section 5.0206(c), Property Code, an owner of real

property who has reason to believe that a document or instrument

purporting to convey title to or an interest in the real property

and recorded in the real property records is fraudulent may

complete and file with the district clerk of the county in which the

document or instrument is recorded a motion, verified as required

by Subsection (c), to which the movant has attached:

(1) a copy of the document or instrument; and

(2) documentary evidence of:

(A)

a person's conviction of an offense under

Title 7 or Title 8, Penal Code, for conduct with respect to the

document or instrument; or

(B)

the filing and recording of an uncontroverted

owner's affidavit and certificate of mailing under Section 5.0206,

Property Code.

(b)

A motion under Subsection (a) must contain, at a

minimum, the information in the following suggested form:

MISC. DOCKET NO. ______

In Re: A Purported

In the ______ Judicial District

Conveyance of Title

In and For ___________________

to or an Interest in

County, Texas

(Description of Real

Property)

Motion for Judicial Review of Document or Instrument Purporting to

Convey Title to or an Interest in Real Property

Now Comes (name) and files this motion requesting a judicial

determination of the status of a document or instrument purporting

to convey title to or an interest in real property filed in the

office of the County Clerk of (county name) County, Texas, and in

support of the motion would show the court as follows:

I.

(Name), movant herein, is the purported person who holds

title to the real property or the interest in the real property

described in the attached document or instrument.

II.

On (date), in the exercise of the county clerk's official

duties as County Clerk of (county name) County, Texas, the county

clerk recorded the document or instrument attached to this motion

and containing (number) pages. The attached document or instrument

purports to have conveyed title to or an interest in the real

property to (name of purported grantee).

III.

Movant alleges that the attached document or instrument is

fraudulent, as described by Section 51.901(c)(4), Government Code,

and that the document or instrument should therefore not be

considered to convey title to or an interest in the real property

described in the document or instrument.

IV.

Movant attests that the assertions herein are true and

correct.

V.

Movant does not request the court to make a finding as to any

underlying claim of the parties involved and acknowledges that this

motion does not seek to invalidate a legitimate conveyance. Movant

further acknowledges that movant may be subject to sanctions, as

provided by Chapter 10, Civil Practice and Remedies Code, if this

motion is determined to be frivolous.

PRAYER

Movant requests the court to review the attached document or

instrument, the attached documentary evidence, and any relevant

public records and enter an order determining whether the document

or instrument should be considered to convey title to or an interest

in the real property described in the document or instrument,

together with such other orders as the court deems appropriate.

Respectfully submitted,

_______________________

(Signature and typed name and address)

(c)

A motion filed under Subsection (a) must be verified by

an affidavit in substantially the following form:

AFFIDAVIT

THE STATE OF TEXAS

COUNTY OF ______________

BEFORE ME, the undersigned authority, personally appeared

_____________, who, being by me duly sworn, deposed as follows:

"My name is _________________.

I am over 21 years of age, of

sound mind, with personal knowledge of the following facts, and

fully competent to testify.

I further attest that the assertions contained in the

accompanying motion are true and correct."

Further affiant sayeth not.

____________________________

SUBSCRIBED and SWORN TO before

me, this _______ day of _____,

_______.

____________________________

NOTARY PUBLIC, State of Texas

Notary's printed name:

____________________________

My commission expires:

____________________________

(d)

A motion under this section may be ruled on by a district

judge having jurisdiction over real property matters in the county

where the document or instrument described in the motion is

recorded. The district court may rule on the motion based solely on

a review of the attached document or instrument, the attached

documentary evidence, and any relevant public records without

hearing any testimonial evidence. The court's review may be made ex

parte without delay or notice of any kind. An appellate court shall

expedite review of a court's finding under this section.

(e)

The district clerk may not collect a filing fee for

filing a motion under this section.

(f)

After reviewing the attached document or instrument,

the attached evidence, and any relevant public records under this

section, the district judge shall enter an appropriate finding of

fact and conclusion of law, which must be filed for recording and

indexed in the same class of records in which the subject document

or instrument was originally recorded. A copy of the finding of

fact and conclusion of law shall be sent, by first class mail, to

the movant and to the person who filed the document or instrument

for recording at the last known address of each person within seven

days after the date that the finding of fact and conclusion of law

is issued by the judge.

(g)

The county clerk may not collect a fee for filing a

district judge's finding of fact and conclusion of law under this

section.

(h)

A suggested form for a district court's finding of fact

and conclusion of law under Subsection (f) is as follows:

MISC. DOCKET NO. ______

In Re: A Purported

In the ______ Judicial District

Conveyance of Title

In and For ___________________

to or an Interest in

County, Texas

(Description of Real

Property)

Judicial Finding of Fact and Conclusion of Law Regarding a Document

or Instrument Purporting to Convey Title to or an Interest in Real

Property

On the (number) day of (month), (year), in the above entitled

and numbered cause, this court reviewed a motion, verified by

affidavit, of (name) and the document or instrument attached to the

motion, the other documentary evidence attached to the motion, and

any relevant public records. No testimony was taken from any party,

nor was there any notice of the court's review, the court having

made the determination that a decision could be made solely on

review of the document or instrument, the other documentary

evidence, and public records under the authority vested in the

court under Subchapter J, Chapter 51, Government Code.

The court finds as follows (only an item checked and

initialed is a valid court ruling):

_______

The document or instrument attached to the motion herein

DOES convey title to or an interest in real property and:

(1)

IS NOT the subject of a criminal conviction for an

offense under Title 7 or Title 8, Penal Code, for conduct with

respect to the document or instrument; and

(2)

IS NOT the subject of an uncontroverted owner's

affidavit under Section 5.0206, Property Code.

_______

The document or instrument attached to the motion herein

DOES NOT convey title to or an interest in real property and:

(1)

IS the subject of a criminal conviction for an

offense under Title 7 or Title 8, Penal Code, with respect to the

document or instrument; or

(2)

IS the subject of an uncontroverted owner's

affidavit under Section 5.0206, Property Code.

This court makes no finding as to any underlying claims of the

parties involved, and expressly limits its finding of fact and

conclusion of law to the review of a ministerial act. The county

clerk shall record this finding of fact and conclusion of law in the

same class of records as the subject document or instrument was

originally filed, and the court directs the county clerk to index it

using the same names that were used in indexing the subject document

or instrument.

SIGNED ON THIS THE ________ DAY OF ____________________.

_______________________________

DISTRICT JUDGE

________ JUDICIAL DISTRICT

_____________ COUNTY, TEXAS

SECTION 3. Subchapter A, Chapter 5, Property Code, is

amended by adding Sections 5.0206 and 5.0207 to read as follows:

Sec.

5.0206.

OWNER'S AFFIDAVIT REGARDING PURPORTED

CONVEYANCE OF TITLE OR INTEREST.

(a)

An owner of real property may

file for recording in the real property records of the county in

which a document or instrument purporting to convey title to or an

interest in the real property was recorded:

(1)

an affidavit that substantially complies with

Subsection (e); and

(2)

a certificate of mailing that substantially

complies with Subsection (f).

(b)

A property owner who files an affidavit under Subsection

(a) shall send a copy of the filed affidavit and a letter notifying

the grantor and grantee of the purported conveyance of the filing of

the affidavit by registered or certified mail, return receipt

requested, to the grantor and grantee's last known addresses.

(c)

If an affidavit and certificate of mailing are filed and

recorded under Subsection (a) and a controverting affidavit is not

filed for recording in the time provided by Subsection (d), the

property owner that filed the affidavit may bring a motion for a

district court ruling under Section 51.9035, Government Code.

(d)

Not later than the 120th day after the date a

certificate of mailing was filed under Subsection (a), the grantor

or grantee of the purported conveyance may file for recording a

controverting affidavit in the real property records of the county

in which the real property is located asserting that:

(1)

the affidavit or certificate of mailing filed by

the property owner under Subsection (a) is untrue; or

(2)

another reason exists as to why the conveyance is

valid.

(e)

An affidavit filed under Subsection (a) must be in

substantially the following form:

OWNER'S AFFIDAVIT REGARDING PURPORTED CONVEYANCE

Before me, the undersigned authority, on this day personally

appeared ("Affiant(s)") (insert name of one or more affiants) who,

being first duly sworn, upon oath states:

(1)

My/our name is/are (insert name of Affiant(s)).

I/we own the following described real property ("Property"):

(describe the real property)

(2)

This affidavit is made for the purpose of

establishing a presumption under Section 51.901(c)(4), Government

Code, that the document or instrument purporting to convey title to

or an interest in the Property recorded in __________ (refer to

recording information of the conveyance) ("Purported Conveyance")

is fraudulent and obtaining a district court's finding of fact and

conclusion of law under Section 51.9035, Government Code, that the

document or instrument does not convey title to or an interest in

the Property.

(3)

Affiant(s) have not conveyed title to or an

interest in the Property to any grantee other than (list any

interests granted).

Signed on this _____ day of __________, _____.

____________________

____________________

(Signature of Affiant(s))

State of __________

County of __________

SWORN TO AND SUBSCRIBED before me on the _________ day of

__________, 20___.

My commission expires:

______________________

____________________________

Notary Public, State of Texas

Notary's printed name:

____________________________

(f)

A certificate of mailing filed under Subsection (a) must

be in substantially the following form:

CERTIFICATE OF MAILING OF OWNER'S AFFIDAVIT REGARDING PURPORTED

CONVEYANCE

Before me, the undersigned authority, on this day personally

appeared ("Affiant(s)") (insert name(s) of Affiant(s)) who, being

first duly sworn, upon oath state(s):

(1)

My name is/Our names are (insert name(s) of

Affiant(s)).

(2)

On the ____ day of __________, 20__, Affiant(s)

caused an Owner's Affidavit Regarding Purported Conveyance to be

recorded in (refer to affidavit recording information)

("Affidavit").

(3)

On the ____ day of __________, 20__, Affiant(s)

sent a letter and a copy of the Affidavit, notifying the grantor and

grantee of the purported conveyance of the Affiant's ownership

claim and the filing of the Affidavit, by registered or certified

mail, return receipt requested, to the grantor and grantee's last

known address.

(4) Attached to this certificate are:

(A)

a true and correct copy of the letter

described by Subdivision (3) of this certificate; and

(B)

proof of mailing of the letter described by

Subdivision (3) of this certificate.

Signed on the day of _________, 20 _____.

____________________

____________________

(Signature of Affiant(s))

State of __________

County of __________

SWORN TO AND SUBSCRIBED before me on the _________ day of

__________, 20___.

My commission expires:

______________________

____________________________

Notary Public, State of Texas

Notary's printed name:

____________________________

Sec.

5.0207.

EFFECT OF CERTAIN COURT FINDINGS ON PURPORTED

CONVEYANCE OF TITLE OR INTEREST. A bona fide purchaser or a

mortgagee for value or a successor or assign of a bona fide

purchaser or mortgagee for value may rely conclusively on a

determination in a district court's finding of fact and conclusion

of law recorded under Section 51.9035, Government Code, that a

document or instrument does not convey title to or an interest in

the real property described in the document or instrument.

SECTION 4. This Act takes effect September 1, 2025.