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). (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.
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