SB647 - Relating to the filing or recording of documents or instruments conveying or purporting to convey an interest in real or personal property.

      S.B. No. 647         AN ACT   relating to the filing or recording of documents or instruments   conveying or purporting to convey an interest in real or personal   property.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 51.901, Government Code, is amended by   amending Subsections (a), (c), and (d) and adding Subsections   (c-1), (d-1), and (d-2) to read as follows:          (a)  If a clerk of the supreme court, clerk of the court of   criminal appeals, clerk of a court of appeals, district clerk,   county clerk, district and county clerk, or municipal clerk has a   reasonable basis to believe in good faith that a document or   instrument previously filed or recorded or offered or submitted for   filing or for filing and recording is fraudulent, the clerk shall:                (1)  if the document is a purported judgment or other   document purporting to memorialize or evidence an act, an order, a   directive, or process of a purported court, provide written notice   of the filing, recording, or submission for filing or for filing and   recording to the stated or last known address of the person against   whom the purported judgment, act, order, directive, or process is   rendered; or                (2)  if the document or instrument purports to create a   lien against or assert a claim to [ on real or personal property ] or   an interest in real or personal property, provide written notice of   the filing, recording, or submission for filing or for filing and   recording to the stated or last known address of :                       (A)   the person named in the document or   instrument as the grantor, obligor , or debtor , and to any person   named as the grantee or as owning or acquiring any interest in the   real or personal property described in the document or instrument ;   and                       (B)     as applicable, the last known owner of the   property if that owner's address is different from the address of   the grantor, obligor, or debtor named in the document or   instrument .          (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 against or assert a claim to [ 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 grantor, 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.           (c-1)     For purposes of this section, a document or instrument   is presumed to not be fraudulent if the prospective filer:                 (1)     provides to the county clerk, at the time of filing   or on the clerk's request, additional documentation such as a   contract for the sale of or another document creating a lien against   or asserting a claim to the property subject to the document or   instrument that contains the signature of the property owner; or                 (2)     is a person engaged solely in the business of   providing closing, settlement, or other transactional services in   connection with the transfer of real property, including an   attorney, title agent, title company, or escrow company.          (d)  If a county clerk believes in good faith that a document   or instrument filed , recorded, or submitted for filing or recording   with the county clerk to create a lien against or assert a claim to   or an interest in real or personal property is fraudulent, the clerk   shall:                (1)  request the assistance of the county or district   attorney to determine whether the document or instrument  is   fraudulent before filing or recording the document or instrument ;                (2)  request that the prospective filer provide to the   county clerk additional documentation supporting the existence of   the lien , claim, or interest , such as a contract or other document   that contains the signature of the alleged owner, debtor , grantor,   or obligor [ obligor's signature ]; [ and ]                (3)  forward any additional documentation received to   the county or district attorney ; and                 (4)     refuse to file or record the document or   instrument submitted for filing or recording if:                       (A)     the district or county attorney whose   assistance the clerk requested under Subdivision (1) determines   there is probable cause to believe the document or instrument is   fraudulent; or                       (B)     the prospective filer does not provide the   clerk the additional documentation requested under Subdivision   (2) .           (d-1)     A county clerk who, in good faith, files or records,   or refuses to file or record, a document or instrument described by   Subsection (d) is immune from liability and suit arising out of the   filing, recording, or refusal to file or record the document or   instrument.   A county commissioners court may not discipline,   penalize, or otherwise take an adverse employment action against   the clerk for that filing, recording, or refusal.           (d-2)     The additional documentation described by Subsection   (c-1) or (d)(2):                 (1)     is confidential and exempt from disclosure under   Chapter 552; and                 (2)     may be submitted to a county clerk by an individual   or entity without civil process.          SECTION 2.  Section 12.003(b), Civil Practice and Remedies   Code, is amended to read as follows:          (b)  Notwithstanding any other law, a person or a person   licensed or regulated by Title 11, Insurance Code (the Texas Title   Insurance Act), does not have a duty to disclose a fraudulent, as   described by Section 51.901(c), Government Code, court record,   document, or instrument purporting to create a lien against or   [ purporting to ] assert a claim to [ on real property ] or an interest   in real property in connection with a sale, conveyance, mortgage,   or other transfer of the real property or interest in real property.          SECTION 3.  The changes in law made by this Act apply only to   a document or instrument conveying or purporting to convey an   interest in real or personal property filed, recorded, or offered   for filing or recording on or after the effective date of this Act.     A document or instrument conveying or purporting to convey an   interest in real or personal property filed, recorded, or offered   for filing or recording before the effective date of this Act is   governed by the law in effect on the day the document or instrument   was filed, recorded, or offered for filing or recording, and the   former law is continued in effect for that purpose.          SECTION 4.  This Act takes effect September 1, 2025.               ______________________________ ______________________________      President of the Senate Speaker of the House                 I hereby certify that S.B. No. 647 passed the Senate on   April 29, 2025, by the following vote: Yeas 29, Nays 1, one   present not voting; and that the Senate concurred in House   amendment on May 26, 2025, by the following vote: Yeas 29, Nays 1,   one present not voting.       ______________________________   Secretary of the Senate                I hereby certify that S.B. No. 647 passed the House, with   amendment, on May 21, 2025, by the following vote: Yeas 116,   Nays 25, two present not voting.       ______________________________   Chief Clerk of the House            Approved:     ______________________________                Date       ______________________________              Governor