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

Homeowners gain relief from recorded contract claims

Beginning September 1, 2025, Texas sets rules for newly recorded contract notices signed only by a non-owner. These notices claim a purchase contract, purchase option, or right to make, refuse, or match an offer. Covered homes include single-family houses, duplexes, triplexes, fourplexes, and residential condos; deeds and condo-declaration first-refusal rights are excluded. Filers must give the county clerk their mailing address and record the required mailing certificate. By the recording date, they must mail the recorded notice and notice letter using certified or registered mail, return receipt requested. Mail must go to the property and any owner mailing addresses listed in the notice or property or appraisal records. Owners with notice can record the required release affidavit and mailing certificate, and mail copies and notice to the filer and others named. The filer has 45 days after the owner's mailing certificate is recorded to file a contradicting affidavit challenging its truth, mailing, or release. A timely challenge prevents automatic release against buyers and mortgage lenders acquiring the owner's interest. Without a timely challenge, buyers and lenders paying value can rely conclusively on the release beginning on day 45. Enforcement against those buyers and lenders is then limited to money damages. Noncompliant notices provide no legal notice, require no investigation, and cannot burden a sale or mortgage for value—even when buyers or lenders know about them.