Tex. Property Code § 41.0022 — TX Code / Code pr / Chapter 41 / Section 41.0022
§ 41.0022. CERTAIN CONVEYANCES NOT SHAM OR PRETENDED SALES.
Status: in_force

(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).

(g) Notwithstanding any other provision of this section, a transaction that does not meet the requirements of this section is not invalid if the homestead has been abandoned or disclaimed as provided by other provisions of law.