Texas Governor Perry signed House Bill 2061 on March 28, 2007, which became effective immediately. H.B. 2061 amends Texas Property Code Section 11.008, which prohibits the preparer of a deed or deed of trust from including an individuals social security number in a document presented for recording and adds a disclosure requirement to an instrument transferring an interest in real property to or from an individual. HB 2061 amends the disclosure requirements, providing that "an instrument transferring an interest in real property to or from an individual must include a notice that appears on the top of the first page of the instrument in 12-point bold face type or 12-point uppercase letters which reads substantially as follows:

NOTICE OF CONFIDENTIALITY RIGHTS: "IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER."

Note that the prior version of Section 11.008 required a similar Notice if the instrument actually disclosed an individuals driver's license or social security number.

Section 11.008 continues to provide that the validity of an instrument will not be affected by a party's failure to include the Notice required above. Furthermore, a county clerk may not reject an instrument presented for recording solely because the instrument fails to comply with Section 11.008.

DocMagic's Compliance Department has already revised the "Notice of Confidentiality Rights" in its Texas security instruments to conform with HB 2061. Please contact DocMagic's Compliance Department if you have any questions about the contents of this article.

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