SB1734 - Relating to status of certain documents or instruments purporting to convey title to or an interest in real property.

      S.B. No. 1734         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 petition, verified as required   by Subsection (c), to which the petitioner 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 petition 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)   Petition for Judicial Review of Document or Instrument Purporting   to Convey Title to or an Interest in Real Property           Now Comes (name) and files this petition 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 petition would show the court as follows:   I.           (Name), petitioner 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 petition   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.           Petitioner 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.           Petitioner attests that the assertions herein are true and   correct.   V.           Petitioner does not request the court to make a finding as to   any underlying claim of the parties involved and acknowledges that   this petition does not seek to invalidate a legitimate conveyance.   Petitioner further acknowledges that petitioner may be subject to   sanctions, as provided by Chapter 10, Civil Practice and Remedies   Code, if this petition is determined to be frivolous.   PRAYER           Petitioner 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 petition 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 petition 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 petition 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   petition is recorded. The district court may rule on the petition   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 petition 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 electronically or by a   delivery method described by Rule 21a, Texas Rules of Civil   Procedure, to the petitioner 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 petition, verified by   affidavit, of (name) and the document or instrument attached to the   petition, the other documentary evidence attached to the petition,   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 petition 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 petition herein   DOES NOT convey title to or an interest in real property and:        &# [Text truncated for display. 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