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