S.B. No. 1734 amends the Government Code to address the status of documents claiming to convey title to or an interest in real property. The bill establishes that certain documents are presumed fraudulent if they are linked to unrecognized court entities or create liens without a legal basis. It introduces criteria for determining fraudulence, particularly when documents are filed by inmates or individuals convicted of related offenses under the Penal Code. Furthermore, the bill allows property owners to file a motion in district court to contest fraudulent documents, requiring evidence such as a conviction or an affidavit from the property owner, and mandates that no filing fee be charged for these motions.

The bill also outlines a process for grantors or grantees to file a "controverting affidavit" within 120 days of a certificate of mailing, asserting the original affidavit's inaccuracy or other valid reasons for the conveyance. It specifies the necessary details for both the affidavit and the certificate of mailing. Additionally, it introduces Section 5.0207, which protects bona fide purchasers or mortgagees by allowing them to rely on district court findings that a document does not convey title or interest in the property. This legislation aims to streamline the process for addressing fraudulent property claims and safeguard the interests of legitimate buyers and lenders, with an effective date set for September 1, 2025.

Statutes affected:
Introduced: Government Code 51.901 (Government Code 51)