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A BILL TO BE ENTITLED
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AN ACT
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relating to the scope and validity of correction instruments in the |
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conveyance of real property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 5, Property Code, is |
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amended by adding Sections 5.027, 5.028, 5.029, 5.030, and 5.031 to |
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read as follows: |
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Sec. 5.027. CORRECTION INSTRUMENTS: GENERALLY. (a) A |
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correction instrument that complies with Section 5.028 or 5.029 may |
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correct an ambiguity or error in a recorded original instrument of |
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conveyance to transfer real property or an interest in real |
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property, including an ambiguity or error that relates to the |
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description of or extent of the interest conveyed. |
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(b) A correction instrument may not correct an ambiguity or |
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error in a recorded original instrument of conveyance to transfer |
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real property or an interest in real property not originally |
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conveyed in the instrument of conveyance for purposes of a sale of |
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real property under a power of sale under Chapter 51 unless the |
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conveyance otherwise complies with all requirements of Chapter 51. |
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(c) A correction instrument is subject to Section 13.001. |
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Sec. 5.028. CORRECTION INSTRUMENTS: NONMATERIAL |
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CORRECTIONS. (a) A person who has personal knowledge of facts |
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relevant to the correction of a recorded original instrument of |
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conveyance may execute a correction instrument to make a |
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nonmaterial change that results from a clerical error, including: |
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(1) a correction of an inaccurate or incorrect element |
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in a legal description, such as a distance, angle, direction, |
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bearing or chord, a lot, block, unit, building designation or |
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section number, an appurtenant easement, a township name or number, |
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a municipality, county, or state name, a range number or meridian, a |
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certified survey map number, or a subdivision or condominium name; |
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or |
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(2) an addition, correction, or clarification of: |
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(A) a party's name, including the spelling of a |
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name, a first or middle name or initial, a suffix, an alternate name |
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by which a party is known, or a description of an entity as a |
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corporation, company, or other type of organization; |
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(B) a party's marital status; |
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(C) the date on which the conveyance was |
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executed; |
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(D) the recording data for an instrument |
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referenced in the correction instrument; or |
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(E) a fact relating to the acknowledgment or |
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authentication. |
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(b) A person who executes a correction instrument under this |
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section may execute a correction instrument that provides an |
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acknowledgment or authentication that is required and was not |
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included in the recorded original instrument of conveyance. |
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(c) A person who executes a correction instrument under this |
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section shall disclose in the instrument the basis for the person's |
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personal knowledge of the facts relevant to the correction of the |
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recorded original instrument of conveyance. |
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(d) A person who executes a correction instrument under this |
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section shall: |
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(1) record the instrument and evidence of notice as |
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provided by Subdivision (2), if applicable, in each county in which |
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the original instrument of conveyance being corrected is recorded; |
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and |
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(2) if the correction instrument is not signed by each |
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party to the recorded original instrument, send a copy of the |
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correction instrument and notice by first class mail, e-mail, or |
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other reasonable means to each party to the original instrument of |
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conveyance and, if applicable, a party's heirs, successors, or |
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assigns. |
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Sec. 5.029. CORRECTION INSTRUMENTS: MATERIAL CORRECTIONS. |
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(a) In addition to nonmaterial corrections, including the |
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corrections described by Section 5.028, the parties to the original |
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transaction or the parties' heirs, successors, or assigns, as |
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applicable may execute a correction instrument to make a material |
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correction to the recorded original instrument of conveyance, |
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including a correction to: |
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(1) add: |
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(A) a buyer's disclaimer of an interest in the |
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real property that is the subject of the original instrument of |
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conveyance; |
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(B) a mortgagee's consent or subordination to a |
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recorded document executed by the mortgagee or an heir, successor, |
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or assign of the mortgagee; or |
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(C) land to a conveyance that correctly conveys |
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other land; |
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(2) remove land from a conveyance that correctly |
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conveys other land; or |
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(3) accurately identify a lot or unit number or letter |
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of property owned by the grantor that was inaccurately identified |
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as another lot or unit number or letter of property owned by the |
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grantor in the recorded original instrument of conveyance. |
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(b) A correction instrument under this section must be: |
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(1) executed by each party to the recorded original |
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instrument of conveyance the correction instrument is executed to |
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correct or, if applicable, a party's heirs, successors, or assigns; |
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and |
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(2) recorded in each county in which the original |
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instrument of conveyance that is being corrected is recorded. |
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Sec. 5.030. CORRECTION INSTRUMENT: EFFECT. (a) A |
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correction instrument that complies with Section 5.028 or 5.029 is: |
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(1) effective as of the effective date of the recorded |
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original instrument of conveyance; |
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(2) prima facie evidence of the facts stated in the |
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correction instrument; |
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(3) presumed to be true; |
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(4) subject to rebuttal; and |
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(5) notice to a subsequent buyer of the facts stated in |
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the correction instrument. |
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(b) A bona fide purchaser of property that is subject to a |
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correction instrument may rely on the instrument against any person |
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making an adverse or inconsistent claim. |
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Sec. 5.031. CORRECTION INSTRUMENTS RECORDED BEFORE |
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SEPTEMBER 1, 2011. A correction instrument recorded before |
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September 1, 2011, that substantially complies with Section 5.028 |
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or 5.029 and that purports to correct a recorded original |
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instrument of conveyance is effective to the same extent as |
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provided by Section 5.030 unless a court of competent jurisdiction |
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renders a final judgment determining that the correction instrument |
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does not substantially comply with Section 5.028 or 5.029. |
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SECTION 2. This Act takes effect September 1, 2011. |