Changes to Practice Notes

Chapter 2Laws Affecting Real Estate

§ 2.2Abstracts of Judgment

Added citation to Tex. Prop. Code § 52.003.

Added information regarding contradicting affidavit timelines.

§ 2.4Acknowledgments

Deleted section related to videoconferencing options for notary public.

§ 2.5Ad Valorem Taxes

Added citation to Tex. Tax Code § 11.134.

§ 2.41Child Support Liens

Added citation and discussion about Tex. Fam. Code § 157.3171.

§ 2.69Disclosures and Notices

Completely revised item 21 in list, updating information regarding public improvement districts.

§ 2.75Durable Powers of Attorney

Updated citation from Tex. Est. Code § 751.052 to Tex. Est. Code § 751.133.

§ 2.192Partition

Added sentence regarding compelling a partition.

Added reference to Tex. Prop. Code ch. 23A.

§ 2.205Quitclaim Deeds

Updated citation to Tex. Prop. Code § 13.006 regarding quitclaim deeds recorded on or after September 1, 2021.

§ 2.229Security Deposits

Added citation to Tex. Prop. Code § 92.111.

§ 2.284Venue

Added citation to Tex. Prop. Code §§ 23.002, 23A.003 regarding partition actions.

Chapter 3Preparation, Execution, Proof, and Recording of Documents

§ 3.1Conveyance Documents Generally

These introductory notes were given their own section number and title, and all subsequent chapter 3 section numbers were renumbered accordingly.

§ 3.12:1Competent Officer to Take Acknowledgment

Updated hyperlink regarding authentications.

§ 3.13Requirements for Valid Certificate of Acknowledgment

Updated termination date of temporary suspension of appearing in front of notary public in person.

Made list of conditions past tense since the order has now expired.

Updated hyperlink for list of conditions.

Added citation to Tex. Att’y Gen. Op. No. KP-0423.

Chapter 4Sales Contracts and Transaction Guide

§ 4.6:6Review of Survey

Updated acronym from ACSM to NSPS.

Chapter 7Letters of Credit

§ 7.10:4Force Majeure Issues

Updated hyperlinks and date of guidance paper date.

Chapter 9Security Agreements

§ 9.5:8Other Means of Perfection

Added paragraph about former Tex. Bus. & Com. Code § 9.343.

Chapter 11Home Equity Loan Documents

§ 11.3Authorized Lenders

Added new item 8 to list, about banks chartered under the laws of another state.

Added citation to 7 Tex. Admin. Code § 153.17.

§ 11.4Restriction on Loan-to-Value Ratio

Added new sentence to valuation section about 7 Tex. Admin. Code § 153.26(4).

§ 11.18:1Twelve-Day Disclosure for Home Equity Loans

Updated citation of 7 Tex. Admin. Code § 153.51(2) to 7 Tex. Admin. Code § 153.51(3).

Added new sentence about signature and delivery of electronic documents.

§ 11.18:2One-Day Disclosure

Added new sentence about 7 Tex. Admin. Code § 153.13(4).

§ 11.20:5Required Copies

Added new sentence about 7 Tex. Admin. Code § 153.22(3).

§ 11.57Instructions for Completing Notice Concerning Refinance of Existing Home Equity Loan

Added new sentence about 7 Tex. Admin. Code § 153.45(4)(E).

Chapter 12Federal Consumer Disclosure Documents

§ 12.2:3References

Updated hyperlink to commentary to Regulation Z.

Chapter 13Residential Contracts for Deed

§ 13.1Removal from Manual; Use of Contracts for Deed in Texas

This section has been nearly entirely updated and revised, including section title.

§ 13.2Seller’s Risks Associated with Contracts for Deed

This section has been nearly entirely updated and revised, including section title.

§ 13.3Additional Resources

This is a completely new section.

Chapter 14Foreclosure Documents

§ 14.2:2 Statutory Requirements

Deleted language regarding foreclosing lender and warranties.

§ 14.12Additional Resources

Added four new entries.

Chapter 16Water Rights Conveyancing Documents

§ 16.1Introduction

Added references to “state-owned surface water” and “surface water.”

Added sentence about perceived increases in drought conditions.

Added comparison of Tex. Water Code § 11.121 with Tex. Water Code § 36.002.

Added discussions about diffused surface water and presumptions of surface water flowing in a watercourse.

Added quotes from Texas Constitution and Texas Water Code regarding regulatory authority of GCDs.

Added citations to Tex. Water Code §§ 36.0015(b), 13.041 and Pape Partners, Ltd v. DRR Family Properties LP.

Updated number of GCDs as of September 2022 to ninety-eight and provided hyperlink to GCD map.

Added Tex. Water Code ch. 6 to list of chapters relating to TWDB financial assistance.

§ 16.2:1Definition

Clarified that underflow in confined channels is not groundwater, but state surface water.

Added citations to Tex. Water Code ch. 36 and Tex. Water Code § 11.021(a).

Added discussion of watercourse within defined channels.

§ 16.2:2Ownership: “Rule of Capture,” Theory of Absolute Ownership of Groundwater in Place, and Common-Law and Regulatory Use Restrictions

Added citations to Edwards Aquifer Authority v. Day and Tex. Water Code § 36.002, and expanded citation of Tex. Water Code § 36.002(b)(1) to include (b)(2).

Added discussions about Tex. Water Code § 36.002(b)(2) and about ownership of groundwater.

Clarified references to the Clayton Sam Colt Hamilton Trust.

§ 16.2:3Groundwater Conservation Districts and Groundwater Management

Updated and added various citations to Texas Water Code.

Clarified that in-depth discussion in chapters 5 and 16 of Essentials of Texas Water Resources relates to powers of GCDs.

Added discussions related to permits, GCDs having taxing authority, groundwater not being within a GCD, groundwater wells being registered or permitted, and management plans.

§ 16.3:1Severability and Marketing of Groundwater Rights

Updated Edwards Aquifer Authority v. Day citation to Coyote Lake Ranch, LLC v. City of Lubbock.

§ 16.3:2GCD Permitting

Substantially revised and added to this section.

§ 16.3:3Other Due Diligence

Expanded issues a purchaser or lessee of groundwater rights should consider to include aquaculture, hunting leases, wind or solar energy production, and historical or existing use permits.

§ 16.4Surface Water

Added discussion about TCEQ permitting requirements, referring readers to chapters 10 and 15 of Essentials of Texas Water Resources for more details.

Added citations to Tex. Water Code ch. 11 and 30 Tex. Admin. Code chs. 295, 297.

§ 16.8:4Transfer and Recording of Permits

Significantly expanded this section.

§ 16.14:1Surface Use Considerations Generally

Previous section 16.14 text was given this new section number 16.14.1, and discussion was expanded regarding oil and gas leases and surface and mineral estates.

§ 16.14:2Cotenancy Issues

This is a new section.

§ 16.90Produced Water

This is a new section.

§ 16.100Additional Resources

This section was renumbered.

Chapter 18Residential Construction Contract Documents

§ 18.3:4Owner Liability to Mechanic’s Lien Claimants and Owner Retainage or Reservation

Updated citation from Tex. Prop. Code § 53.103(a) to Tex. Prop. Code § 53.105(a).

Chapter 21Involuntary Mechanic’s Lien Documents

Removed references to form 21-16, which was removed from this manual.

§ 21.11Additional Resources

Added one new entry.

Chapter 27Third-Party Opinion Letters in Real Estate Financings

Previous appendix was turned into this new chapter; added substantial new material, including new additional resources entries and hyperlinks; and organized into sections and subsections.

Changes to Forms—2023

Chapter 4Sales Contracts and Transaction Guide

Form 4-2Real Estate Sales Contract

Updated acronym from ACSM to NSPS.

Chapter 21Involuntary Mechanic’s Lien Documents

Removed form 21-16 and renumbered all subsequent forms in chapter.

Chapter 23Restrictive Covenants and Property Owners’ Associations

Form 23-4Bylaws of [name of property owners’ association] [, Inc.]

Updated paragraphs B.13.a. through B.13.c.

Form 23-5Rules of [name of property owners’ association] [, Inc.]

Updated paragraphs C.1. (regarding reporting owners to credit reporting services) and C.2.; removed previous paragraph C.3. (appeals); and added new paragraphs C.3. (hearing packets), C.4. (hearing presentations), and C.5. (exceptions to notice and hearing).

Form 23-15Notice of Collection Agent Fees

Added note about attaching statement. Updated thirty-day reference to forty-five days. Added note about not being eligible for a payment plan if failed to honor a recent previous payment plan. Added note about being responsible for attorney’s fees if account is turned over to property owners’ association attorney. Removed sentence about thirty-day verification period.

Form 23-17Notice of Enforcement Action and Attorney’s Fees

Added note about forty-five days for delinquency. Expanded instructions and options regarding the reason for the notice, including changing “reasonable period” to language providing a specific number of days. Added paragraph about having forty-five days to pay amount due or sign a payment plan. Removed references to committee appointed by board of directors and added reference to board of directors. Added a new item 5, regarding reporting owners to a credit reporting service, and renumbered subsequent items. Removed sentence about thirty-day verification period.

Chapter 27Third-Party Opinion Letters in Real Estate Financings

Form 27-1Checklist [For Real Estate Financing Opinion Letter]

This form is new.