HBA-ATS H.B. 2576 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2576
By: Hamric
Business & Industry
3/25/1999
Introduced



BACKGROUND AND PURPOSE 

To index documents filed and recorded in the real property records of the
court, the clerk must decipher the names of the parties in the documents.
Because real property documents may be complex, it can be difficult to
interpret them, causing inaccuracies in indexing.  H.B. 2576 requires,
among other things, that the first page of a real property instrument filed
with the clerk contain the grantor's name, and references to the instrument
page number containing any additional grantor names, and the grantee's
name, and references to the instrument page number containing any
additional grantee names.  However, any error in the cover sheet or
recorder's index information does not affect the validity or enforceability
of, or notice imparted by, the instrument, as that is required to be
determined by the instrument. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 191.007(b), Local Government Code, to provide
that a page from a legal paper presented to a county clerk for filing or
for recording must be a single sheet no wider than 8-1/2 inches and no
longer than 14 inches, and that it be printed in type not smaller than
10-point, rather than eight point, type.  Includes the provision that a
page must be suitable for reproduction by an electronic imaging process
used in the office of the county clerk. 

SECTION 2.  Amends Chapter 191, Local Government Code, by adding Section
191.0075, as follows: 

Sec. 191.0075.  ADDITIONAL SPECIFICATIONS FOR REAL PROPERTY RECORDS; FEE
FOR NONCOMPLIANCE.  (a) Defines "grantor" and "grantee" for purposes of
this section. 

(b)  Requires the first page of an instrument presented to a county clerk
for recording in the Official Public Records of Real Property to have
margins that are at least three inches on top, one inch on the bottom and
sides, and free of printing, typing, and writing other than form
references, names, and dates, borders, graphics, file numbers, parcel
numbers, or names of parties filing the instrument.  Requires the first
page of an instrument presented to a county clerk for recording in the
Official Public Records of Real Property to contain the following
information, in the order listed: 

  _on the top left-hand side of the page, the name and address of the
person to whom the original instrument will be returned and, if applicable,
the name of the title company or law firm presenting the instrument for
recording; 
 
  _the title of the instrument;

  _the grantor's name, and if applicable, reference to the instrument page
number containing additional grantor names; 
 
  _the grantee's name, and if applicable, reference to the instrument page
number containing additional grantee names; and 

  _if applicable, either a legal description of the real property, a brief
description of the real property and reference to the instrument page
number containing the legal description, or the county clerk's file number,
film code number, or volume, page, and book reference of the instrument
describing the real property. 

(c) Requires a person to pay a penalty of $1 for each page, not to exceed
$5, if an instrument presented for recording does not comply with the
requirements of Subsection (b), and the instrument is a deed, deed of
trust, mortgage, release, assignment, water district notice, notice of
restrictions, easement, option, or lease.  Prohibits a person from
attaching a cover sheet to the instrument if an instrument presented for
recording does not comply with the requirements of Subsection (b), and the
instrument is a deed, deed of trust, mortgage, release, assignment, water
district notice, notice of restrictions, easement, option, or lease. 

(d) Provides that, if an instrument presented for recording does not comply
with the requirements of Subsection (b), and the instrument is not a deed,
deed of trust, mortgage, release, assignment, water district notice, notice
of restrictions, easement, option, or lease, the person presenting the
instrument must attach a cover sheet that contains the information required
by Subsection (b), meets the requirements of Section 191.007(a), and is not
required to be separately signed or acknowledged, or the person is required
to pay the penalty filing fee of $1 for each page, not to exceed $5. 

(e)  Prohibits the county clerk from charging the additional page fee
prescribed by Section 118.011(a)(2) (Fee Schedule) for recording the cover
sheet. 
 
(f)  Provides that an error in the cover sheet or recorder's index
information or the failure of the cover sheet or recorder's index
information to comply with this section does not affect the validity or
enforceability of, or notice imparted by, the instrument. 
 
(g)  Authorizes the county clerk to use the information required by this
section to generate a grantor-grantee index.  Requires the validity or
enforceability of, or notice imparted by, the instrument to be determined
by the instrument. 

(h) Requires the county clerk to charge a penalty filing fee of $1 for each
page, not to exceed $5, if the instrument does not comply with Subsection
(b). 

(i)  Provides that a federal tax lien, release of a federal tax lien, state
tax lien, release of a state tax lien, and standard financing statement are
exempt from the requirements of this section. 

SECTION 3.  Effective date: September 1, 2000.

SECTION 4.  Emergency clause.