88R1453 BEE-F     By: Murr, Lambert H.B. No. 207       A BILL TO BE ENTITLED   AN ACT   relating to the exclusion of certain conveyances from   classification as sham or pretended sales.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter A, Chapter 41, Property Code, is   amended by adding Section 41.0022 to read as follows:          Sec. 41.0022.  CERTAIN CONVEYANCES NOT SHAM OR PRETENDED   SALES. (a) In this section:                (1)  "Entity" means a domestic or foreign:                      (A)  corporation, professional corporation, or   professional association;                      (B)  limited liability company or professional   limited liability company; or                      (C)  limited partnership.                (2)  "Parcel" means one or more parcels.          (b)  The conveyance of a parcel not meeting the definition of   an urban homestead under Section 41.002(a) or (c) by an individual   to an entity in which the individual or individual's spouse has a   direct or indirect ownership interest is not a sham or pretended   sale, including a pretended sale under Section 50(c), Article XVI,   Texas Constitution, if:                (1)  the deed conveying the parcel is recorded at least   30 days before the entity grants a mortgage, trust deed, or other   lien on the parcel;                (2)  the individual does not reside on the parcel at the   time of the conveyance;                (3)  the parcel is not contiguous to the parcel on which   the individual resides;                (4)  the deed conveying the parcel does not contain a   condition of defeasance; and                (5)  the individual recorded contemporaneously with   the deed an affidavit substantially in the form prescribed by   Subsection (d).          (c)  An individual executing a deed under Subsection (b) is   estopped from claiming that:                (1)  the conveyance is a sham or pretended sale,   including a pretended sale under Section 50(c), Article XVI, Texas   Constitution; or                (2)  the individual had not abandoned homestead rights,   if any, in the parcel by executing the deed.          (d)  At the time of recording a deed under Subsection (b), an   individual grantor of the deed shall record an affidavit containing   the following:                (1)  a title caption stating "Affidavit Regarding   Conveyance To An Entity";                (2)  the date of the affidavit;                (3)  a description of the deed containing:                      (A)  the title of the deed;                      (B)  the date of the deed;                      (C)  the name and address of the individual   grantor; and                      (D)  the name and address of the entity grantee;                (4)  a description of the parcel being conveyed to the   entity;                (5)  a description of the parcel upon which the   individual currently resides;                (6)  a statement that the parcel being conveyed is not   contiguous to the parcel upon which the individual currently   resides;                (7)  a statement that the parcel upon which the   individual currently resides is not:                      (A)  located within the limits of a municipality   or its extraterritorial jurisdiction or a platted subdivision; or                      (B)  served by police protection, paid or   volunteer fire protection, and at least three of the following   services provided by a municipality or under contract to a   municipality:                            (i)  electric;                            (ii)  natural gas;                            (iii)  sewer;                            (iv)  storm sewer; or                            (v)  water;                (8)  a statement that:                      (A)  the individual is unmarried; or                      (B)  the individual is married, and including the   name of the individual's spouse;                (9)  a statement that the individual or individual's   spouse owns a direct or indirect interest in the entity;                (10)  a statement that the individual has executed the   deed conveying the parcel to the entity;                (11)  a statement that the individual intends to vest   title in the entity;                (12)  a statement that there are no written or oral   agreements regarding a defeasance of the parcel upon the passage of   time or occurrence or non-occurrence of any event;                (13)  a statement that the individual acknowledges that   the individual will be estopped from claiming the conveyance to the   entity is a sham or pretended sale, including a pretended sale under   Section 50(c), Article XVI, Texas Constitution;                (14)  a statement that the individual acknowledges that   the individual will be estopped from claiming the individual had   not abandoned homestead rights, if any, in the parcel by executing   the deed;                (15)  a statement that the individual understands that   if the parcel is valued for ad valorem tax purposes as qualified   open-space land, the entity must reapply in its own name by the   applicable filing deadline; and                (16)  a statement that the individual has had an   opportunity:                      (A)  to review the affidavit prior to the   affidavit's execution; and                      (B)  to consult with an attorney before the   affidavit's execution, whether or not the opportunity to consult   with an attorney was exercised.          (e)  If the individual conveying a parcel under Subsection   (b) is married, the individual's spouse must join in the execution   of:                (1)  the deed; and                (2)  the affidavit described by Subsection (d).          (f)  The entity or a lender for value may conclusively rely   on an affidavit described by Subsection (d).          SECTION 2.  This Act takes effect September 1, 2023.