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Signed Into Law
Signed May 30, 2025Effective 2025-09-01
SB1734

Regular Session

Relating to status of certain documents or instruments purporting to convey title to or an interest in real property.

Government Affairs & Regulatory Compliance Analysis

SB1734: Government Affairs Overview

SB1734 establishes a streamlined, fee-exempt judicial process to expunge fraudulent real property filings (deeds and liens) effective September 1, 2025. This legislation allows property owners to bypass expensive quiet title lawsuits in favor of an expedited ex parte review, but it imposes strict monitoring requirements on lenders and lienholders to prevent the inadvertent invalidation of legitimate interests via default.

Sen. Royce West·Senate Bill·Regular Session

Moderate
Low Cost
Effective:2025-09-01
Business Impact

Who SB1734 Affects

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

Regulatory Priority: moderate

Notable regulatory updates (effective 2025-09-01). Consider how these changes may affect your operations.

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Real Estate

Affected business types:

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

Key Operational Considerations

  • 1Purchase & Sale Agreements (PSAs): Amend PSAs to include a 150-day cure period (120-day statutory wait + 30 days judicial processing) for title defects resolved via this statute.
  • 2Vendor Agreements: Update scopes of work for third-party lien monitoring services. They must flag "Owner’s Affidavits" filed under Property Code § 5.0206 immediately.
  • 3Legal Staff: Counsel must be trained on the new *ex parte* petition workflow to avoid unnecessary litigation costs for clear-cut fraud cases.

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

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SB1734
Moderate
Relating to status of certain documents or instruments purporting to convey title to or an interest in real property.
Moderate Compliance Urgency
Requires near-term attention
Cost Impact
Low
Effective
2025-09-01
Enforcing Agencies
County ClerksDistrict ClerksTexas District Courts
Primary Author: Sen. Royce West
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025
  • Compliance Deadline: August 1, 2025 (Internal readiness for mail processing and template creation is required prior to the effective date).
  • Agency Rulemaking: No agency rulemaking required. However, District and County Clerks must update fee schedules to zero-out costs for these specific filings by the effective date.

Immediate Action Plan

  • Update Legal Templates: Incorporate statutory language from Gov't Code § 51.9035(b) and Property Code § 5.0206(e) into your document management system immediately.
  • Audit Mail Procedures: Establish a "Red Flag" protocol for incoming Certified Mail to ensure the 120-day objection window is never missed.
  • Review Portfolios: Identify assets currently encumbered by fraudulent liens and prepare Affidavits for filing on September 1, 2025.
  • Revise Underwriting: Title companies must update guidelines to accept the "Judicial Finding of Fact" as conclusive evidence of clear title.

Operational Changes Required

Contracts

  • Purchase & Sale Agreements (PSAs): Amend PSAs to include a 150-day cure period (120-day statutory wait + 30 days judicial processing) for title defects resolved via this statute.
  • Vendor Agreements: Update scopes of work for third-party lien monitoring services. They must flag "Owner’s Affidavits" filed under Property Code § 5.0206 immediately.

Hiring/Training

  • Mailroom Protocols: Train intake staff to prioritize Certified Mail referencing "Property Code § 5.0206" or "Fraudulent Lien." Failure to route these notices to Legal within the 120-day window can result in the extinguishment of a valid lien.
  • Legal Staff: Counsel must be trained on the new *ex parte* petition workflow to avoid unnecessary litigation costs for clear-cut fraud cases.

Reporting & Record-Keeping

  • Mandatory Forms: Adopt the specific statutory forms for the "Owner’s Affidavit," "Petition," and "Finding of Fact" defined in the statute. Generic pleadings will be rejected.
  • Proof of Mailing: You must retain physical return receipts (green cards) or electronic delivery confirmations indefinitely. These are evidentiary prerequisites for obtaining the judicial order.

Fees & Costs

  • Fee Prohibitions: The law prohibits the District Clerk from charging a filing fee for the Petition and the County Clerk from charging a recording fee for the Judge's Order.
  • Budget Impact: Positive. This reduces legal spend on quiet title actions significantly.

Strategic Ambiguities & Considerations

  • The "Controverting Affidavit" Block: The statute does not require a counter-filing to be proven *true*, only *filed*. If a fraudster (or their proxy) files a Controverting Affidavit within the 120-day window, the expedited process is halted, and you must revert to traditional litigation.
  • Judicial Unfamiliarity: District Judges may initially resist signing orders *ex parte* (without a hearing). Counsel must be prepared to brief the court on their specific authority under Gov't Code § 51.9035 to rule based solely on the documents.

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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.

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Legislative Timeline

This bill's path through the Texas Legislature

Filed
Feb 27, 2025
Passed Senate
Apr 24, 2025
Passed House
May 15, 2025
Signed
May 30, 2025
Effective
Sep 1, 2025
TopicsProperty InterestsProperty Interests--real PropertyFraudCounty GovernmentCounty Government--employees/officersCourtsCourts--appellateCourts--judges
03

Senate Authors

Sen. Royce WestDemocrat · Primary Author

House Sponsors

Rep. Salman BhojaniDemocrat · Primary Sponsor
Joint Sponsors

Bill Text(with markup)

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View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

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Quick Reference

Frequently Asked Questions

Common questions about SB1734

Q

What does Texas SB1734 do?

SB1734 establishes a streamlined, fee-exempt judicial process to expunge fraudulent real property filings (deeds and liens) effective September 1, 2025. This legislation allows property owners to bypass expensive quiet title lawsuits in favor of an expedited ex parte review, but it imposes strict monitoring requirements on lenders and lienholders to prevent the inadvertent invalidation of legitimate interests via default.

Q

Who authored SB1734?

SB1734 was authored by Texas Senator Royce West during the Regular Session.

Q

When was SB1734 signed into law?

SB1734 was signed into law by Governor Greg Abbott on May 30, 2025.

Q

Which agencies enforce SB1734?

SB1734 is enforced by County Clerks, District Clerks and Texas District Courts.

Q

How significant are the changes in SB1734?

The regulatory priority for SB1734 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of SB1734?

The cost impact of SB1734 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does SB1734 address?

SB1734 addresses topics including property interests, property interests--real property, fraud, county government and county government--employees/officers.

Q

What are the key dates for SB1734?

Key dates for SB1734: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.

Q

Which Texas businesses are affected by SB1734?

SB1734 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