JD Key Consulting Logo
Signed Into Law
Signed June 20, 2025Effective 2025-06-20
HB4063

Regular Session

Relating to the filing and release of record of a unilateral memorandum of contract concerning residential property.

Government Affairs & Regulatory Compliance Analysis

HB4063: Government Affairs Overview

HB4063 fundamentally alters the recording process for residential real estate contracts, effectively ending "sneak attack" filings by investors and wholesalers. Effective September 1, 2025, any Unilateral Memorandum of Contract (UMC) filed without a concurrent "Certificate of Mailing" and notice to the property owner is legally unenforceable against subsequent buyers and lenders.

Rep. Claudia Ordaz Perez·House Bill·Regular Session

Critical
Low Cost
Effective:2025-06-20
Business Impact

Who HB4063 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: critical

Significant regulatory changes (effective 2025-06-20). Review with your legal and compliance teams to understand implications.

🏢

Real Estate

Affected business types:

  • Property developers
  • Commercial landlords
  • Property managers
  • Real estate investors
View all real estate legislation

Key Operational Considerations

  • 1Option Contracts: If you utilize option contracts for wholesaling, your standard operating procedure for protecting that interest must now include the statutory notice step.
  • 2Title Examiners: Staff must be retrained to flag post-September 1, 2025 UMCs that lack the attached Certificate of Mailing as "defective" and not constituting constructive notice.

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

Need Government Relations Support?

JD Key Consulting provides government affairs and regulatory strategy services. We help businesses navigate Texas agencies, understand legislative impacts, and advocate for their interests.

Need Help Navigating This Legislation?

JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.

HB4063
Relating to the filing and release of record of a unilateral memorandum of contract concerning residential property.
Critical Urgency
Unanimous Passage
House Vote147 - 0
YEA
100% in favor147 voting
Senate Vote31 - 0
YEA
100% in favor31 voting
Cost Impact
Low
Effective
2025-06-20
Enforcing Agencies
County ClerksTexas Civil Courts
Primary Author: Rep. Claudia Ordaz Perez
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: June 20, 2025 (Law enacted).
  • Compliance Deadline: September 1, 2025. (Section 1(k) explicitly applies the new validity requirements and penalties to memorandums filed on or after this date).
  • Agency Rulemaking: None. The statute provides the necessary forms within the text of the bill; no agency guidance is expected or required.

Immediate Action Plan

  • 1. Update Document Libraries: Draft and finalize the three statutory forms (Certificate of Mailing x2 and Affidavit for Release) by August 1, 2025.
  • 2. Revise Filing Checklists: Add a mandatory "Proof of Mailing" step prior to any county recording of a contract memorandum.
  • 3. Audit Pending Deals: For any contracts currently in limbo or long-term option periods, file your memorandums *before* September 1, 2025, to remain under the current, less restrictive regulatory regime.
  • 4. Title Companies: Establish a protocol for accepting the "Affidavit for Release" as sufficient evidence to insure title, subject to the 45-day wait period.

Operational Changes Required

Contracts

  • Purchase & Sale Agreements (PSA): Review "Notice" provisions in your standard PSAs. Ensure the seller's notice address is accurate and explicit, as the statutory notice must be sent via Registered or Certified Mail to the owner's last known address.
  • Option Contracts: If you utilize option contracts for wholesaling, your standard operating procedure for protecting that interest must now include the statutory notice step.

Hiring/Training

  • Acquisition Teams & Runners: Staff responsible for recording documents must be trained that a UMC cannot be filed in isolation. They must be equipped with the Certificate of Mailing and proof of postage at the time of filing.
  • Title Examiners: Staff must be retrained to flag post-September 1, 2025 UMCs that lack the attached Certificate of Mailing as "defective" and not constituting constructive notice.

Reporting & Record-Keeping

  • New Statutory Forms: You must integrate three new documents into your legal automation software immediately:
  • 1. Certificate of Mailing (Filer): Required to validate the UMC.
  • 2. Affidavit for Release (Owner): Required to clear a cloud on title.
  • 3. Certificate of Mailing (Owner): Required to initiate the release process.
  • Mail Tracking: Implementation of a rigorous tracking system for Certified/Registered Mail receipts ("Green Cards") is mandatory. These receipts are evidentiary requirements for the recorded certificates.

Fees & Costs

  • Mailing Costs: Budget for increased postage costs (Certified Mail/Return Receipt Requested) for every memorandum filed.
  • Recording Fees: Slight increase in recording fees due to additional page counts for the required Certificates of Mailing.

Strategic Ambiguities & Considerations

  • The "Contradicting Affidavit" Loophole: The statute allows a filer to halt an owner's automatic release of the lien by filing a "Contradicting Affidavit" asserting that "another reason exists" for the contract's validity. The law does not define the burden of proof for this "reason." Expect aggressive investors to use vague language here to stall the 45-day release clock, forcing owners into litigation despite the statute's intent to avoid it.
  • Clerk Acceptance vs. Legal Validity: It is currently unclear if County Clerks will administratively *reject* a UMC lacking a Certificate of Mailing or simply record it. Warning: Even if a Clerk accepts a non-compliant filing, the statute renders it legally ineffective against a third-party buyer. Do not mistake recording acceptance for legal compliance.

Need Compliance Guidance on This Legislation?

JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.

Schedule a Consultation

Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Mar 7, 2025
Passed House
May 6, 2025
Passed Senate
May 26, 2025
Signed
Jun 20, 2025
Effective
Jun 20, 2025
TopicsCivil Remedies & LiabilitiesProperty InterestsProperty Interests--real PropertyPublic Notice
03

House Authors

Rep. Claudia Ordaz PerezDemocrat · Primary Author
Joint Authors

Senate Sponsor

Sen. Judith ZaffiriniDemocrat · Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

Explore more bills from this author and on related topics

More from Rep. Claudia Ordaz Perez

View all bills by Rep. Claudia Ordaz Perez

Related by Topic

View more Civil Remedies & Liabilities legislation
Quick Reference

Frequently Asked Questions

Common questions about HB4063

Q

What does Texas HB4063 do?

HB4063 fundamentally alters the recording process for residential real estate contracts, effectively ending "sneak attack" filings by investors and wholesalers. Effective September 1, 2025, any Unilateral Memorandum of Contract (UMC) filed without a concurrent "Certificate of Mailing" and notice to the property owner is legally unenforceable against subsequent buyers and lenders.

Q

Who authored HB4063?

HB4063 was authored by Texas Representative Claudia Ordaz Perez during the Regular Session.

Q

When was HB4063 signed into law?

HB4063 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce HB4063?

HB4063 is enforced by County Clerks (Texas) and Texas Civil Courts.

Q

How significant are the changes in HB4063?

The regulatory priority for HB4063 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of HB4063?

The cost impact of HB4063 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does HB4063 address?

HB4063 addresses topics including civil remedies & liabilities, property interests, property interests--real property and public notice.

Q

What are the key dates for HB4063?

Key dates for HB4063: Effective date is 2025-06-20. Consult with legal counsel regarding applicability.

Q

What are the penalties under HB4063?

HB4063 establishes the following penalties: civil penalty of Loss of ability to enforce specific performance or cloud title; remedy limited to money damages only for Filing a unilateral memorandum of contract without complying with new notice and certificate of mailing requirements. Consult with legal counsel for specific applicability to your situation.

Q

Which Texas businesses are affected by HB4063?

HB4063 primarily affects property owners and real estate professionals. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026