In its most recent session the Texas legislature passed a few pieces of legislation that might be of interest to real estate professionals. Among them are the following, each effective as of September 1, 2009:
HB No. 3945, amending Section 12.017 of the Texas Property Code to allow authorized title insurance agents to execute and record a release of a mortgage lien under certain circumstances where the secured debt has been paid off but the mortgagee has failed to deliver a release of the lien. Previously this statute applied only to residential mortgages, but HB 3945 expands it to include nonresidential mortgages where the original face amount of the secured debt is less than $1.5 million.
HB No. 396, amending Section 12.007 of the Texas Property Code to provide for the right to submit a motion to expunge a lis pendens notice that's been filed against real property. The new language provides that the court in which the motion to expunge is filed shall order the notice of lis pendens to be expunged if the court determines that (a) the pleading on which the notice is based doesn't contain a real property claim, or (b) the claimant fails to establish by a preponderance of the evidenct the probable validity of the claim, or (c) the person who filed the relevant notice of lis pendens failed to serve a copy of the notice to each person entitled to receive it under the statute.
