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  H.B. No. 396
  relating to expunction of a notice of lis pendens.
         SECTION 1.  Section 12.007, Property Code, is amended by
  adding Subsection (d) to read as follows:
         (d)  Not later than the third day after the date a person
  files a notice for record under this section, the person must serve
  a copy of the notice on each party to the action who has an interest
  in the real property affected by the notice.
         SECTION 2.  Chapter 12, Property Code, is amended by adding
  Section 12.0071 to read as follows:
         Sec. 12.0071.  MOTION TO EXPUNGE LIS PENDENS. (a) A party to
  an action in connection with which a notice of lis pendens has been
  filed may:
               (1)  apply to the court to expunge the notice; and
               (2)  file evidence, including declarations, with the
  motion to expunge the notice.
         (b)  The court may:
               (1)  permit evidence on the motion to be received in the
  form of oral testimony; and
               (2)  make any orders the court considers just to
  provide for discovery by a party affected by the motion.
         (c)  The court shall order the notice of lis pendens expunged
  if the court determines that:
               (1)  the pleading on which the notice is based does not
  contain a real property claim;
               (2)  the claimant fails to establish by a preponderance
  of the evidence the probable validity of the real property claim; or
               (3)  the person who filed the notice for record did not
  serve a copy of the notice on each party entitled to a copy under
  Section 12.007(d).
         (d)  Notice of a motion to expunge under Subsection (a) must
  be served on each affected party on or before the 20th day before
  the date of the hearing on the motion.
         (e)  The court shall rule on the motion for expunction based
  on the affidavits and counteraffidavits on file and on any other
  proof the court allows.
         (f)  After a certified copy of an order expunging a notice of
  lis pendens has been recorded, the notice of lis pendens and any
  information derived from the notice:
               (1)  does not:
                     (A)  constitute constructive or actual notice of
  any matter contained in the notice or of any matter relating to the
                     (B)  create any duty of inquiry in a person with
  respect to the property described in the notice; or
                     (C)  affect the validity of a conveyance to a
  purchaser for value or of a mortgage to a lender for value; and
               (2)  is not enforceable against a purchaser or lender
  described by Subdivision (1)(C), regardless of whether the
  purchaser or lender knew of the lis pendens action.
         (g)  The court in its discretion may require that the party
  prevailing in the expunction hearing submit an undertaking to the
  court in an amount determined by the court.
         SECTION 3.  The change in law made by this Act applies only
  to a lis pendens filed on or after the effective date of this Act. A
  lis pendens filed before the effective date of this Act is governed
  by the law in effect immediately before that date, and that law is
  continued in effect for that purpose.
         SECTION 4.  This Act takes effect September 1, 2009.
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
         I certify that H.B. No. 396 was passed by the House on April
  9, 2009, by the following vote:  Yeas 148, Nays 0, 1 present, not
  Chief Clerk of the House   
         I certify that H.B. No. 396 was passed by the Senate on May
  21, 2009, by the following vote:  Yeas 31, Nays 0.
  Secretary of the Senate    
  APPROVED:  _____________________