Bulletin: TX2023009

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Bulletin: TX2023009

Bulletin Document
V 2
Date: September 18, 2023
To: All Texas Issuing Offices
RE: UNDERWRITING - Statute of Limitation Changes to Child Support Liens in Texas

Dear Associates:

Senate Bill 869 repeals subsection d. of the Texas Family Code, Subchapter G, Section 157.318- DURATION AND EFFECT OF CHILD SUPPORT LIEN. This section was added in the 2009 legislative session with title industry support to limit the time frame of enforcing child support liens to 10 years from the date of filing for any child support liens filed after September 1, 2009. However, the repeal of subsection d., effective September 1, 2023, means there is no statute of limitations applicable to child support liens as of September 1, 2023.

Subsection d. that was repealed is below for your reference: 

d.  A lien is effective with respect to real property until the 10th anniversary of the date on which the lien notice was filed with the county clerk. A lien subject to the limitation prescribed by this subsection may be renewed for subsequent 10-year periods by filing a renewed lien notice in the same manner as the original lien notice. For purposes of establishing priority, a renewed lien notice filed before the applicable 10th anniversary relates back to the date the original lien notice was filed. A renewed lien notice filed on or after the applicable 10th anniversary has priority over any other lien recorded with respect to the real property only on the basis of the date the renewed lien notice is filed.

What you should know:

The statute of limitations on a child support lien is indefinite, as of September 1, 2023. Any child support liens filed between September 1, 2009, and September 1, 2023, will still have the 10-year statute of limitations so long as the 10-year statute of limitations expired prior to September 1, 2023, and the lien was not renewed by refiling as was allowed under the repealed subsection d. If a child support lien expired prior to September 1, 2023, it can be treated as time barred, unless it is renewed prior to your transaction (see Section 16(b) of S.B. 869). However, any child support lien that has not been time barred prior to September 1, 2023, will have no statute of limitations. 

What you should do:

Review Family Code Section 157.318 Duration of Child Support Liens, update any checklist or statute of limitation lists you have as it relates to child support liens with this change. Consult with a Stewart Texas underwriter before considering a child support lien unenforceable. 

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.


References

Bulletins Replaced:
  • None
Related Bulletins:
  • None
Underwriting Manual:
  • None
Exceptions Manual:
  • None
Forms:
  • None