Texas law would punish fraudulent real-property transfers and filings

A person would commit a real-property theft offense by transferring or trying to transfer property without the owner’s consent and intending to deprive the owner, or by transferring property to obtain a benefit without the benefit owner’s consent and with that intent. The rule covers real property, title, and nonpossessory interests, such as interests conveyed by a quitclaim deed or conditional transfer. The theft offense must involve a lack of effective consent and an intent to deprive an owner of property or a benefit. Penalties depend on the property or benefit’s value. The offense level increases by one category when the affected owner is elderly, disabled, or a nonprofit, or when the property is an individual’s residence homestead. The conduct may also be prosecuted under another law. These provisions apply only to offenses committed on or after the Act’s effective date; an offense is treated as earlier if any element occurred before that date.

A person would commit real-property fraud by using a materially false written statement to obtain property or by causing unauthorized documents affecting property, ownership, or liens to be signed or recorded with intent to defraud or cause harm. The rule covers false statements, signed documents, court papers, and other records concerning real property or an interest, lien, or claim against it. The person must act intentionally or knowingly when making a materially false or misleading written statement. For other conduct, the person must intend to defraud or harm someone and act without the other person’s effective consent. Penalties depend on the property or property interest’s value. The offense level increases by one category when the owner is elderly, disabled, or a nonprofit, or when the property is an individual’s residence homestead. These provisions apply only to offenses committed on or after the Act’s effective date.

Courts and filing officials would record information about qualifying cases, notify law enforcement about reported fraudulent property filings, and order restitution in real-property theft cases, subject to listed exceptions. The procedures cover convictions or deferred adjudication for real-property theft or fraud, county real-property records, certain liens filed by or for inmates, and losses suffered by property owners, benefit owners, title companies, or insurers. A judgment or deferred-adjudication order must identify the property and recorded documents involved, and the prosecutor or court clerk must file it with the county clerk within 10 days. Restitution may cover property or benefit value, insurer or title-company payments, foreseeable losses, and certain attorney’s fees and court costs. A defendant may avoid specified property-value restitution by proving ownership, transferring the property back, recording that transfer, and giving the court a certified copy. A county clerk must notify local law enforcement when someone reports that a property document filed after January 1, 2026, is fraudulent, and must provide the filer’s photo-identification information if available. Inmate-related lien affidavits may lead to an attorney general review and a termination statement. Most provisions take effect on the 91st day after the legislative session ends; the county-clerk notice rule takes effect January 1, 2026. The expanded limitation period does not revive a prosecution already barred before the effective date.