SB16

2nd Special Session

Relating to real property theft and real property fraud; establishing recording requirements for certain documents concerning real property; creating the criminal offenses of real property theft and real property fraud and establishing a statute of limitations, restitution, and certain procedures with respect to those offenses.

CriticalImmediate action required

Low Cost

Effective:2025-09-01

Enforcing Agencies

County Clerks (Recording requirements and ID verification) • District Attorneys / Prosecutors • Law Enforcement Agencies • Office of the Attorney General (OAG) • Secretary of State (Fraudulent lien filings)

SB16

Critical

Relating to real property theft and real property fraud; establishing recording requirements for certain documents concerning real property; creating ...

Critical Compliance Urgency

Requires immediate attention

Cost Impact

Low

Effective

2025-09-01

Enforcing Agencies

County ClerksDistrict Attorneys / ProsecutorsLaw Enforcement AgenciesOAG+1 more

Primary Author: Sen. Royce West

89th Texas Legislature

jdkey.com

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: September 1, 2025
Compliance Deadline: September 1, 2025 (Immediate requirement for Photo ID at filing counters).
Secondary Deadline: January 1, 2026 (County Clerks must begin reporting fraudulent filings to law enforcement based on public complaints).
Agency Rulemaking: The Secretary of State must draft a specific affidavit form for TDCJ employees to report fraudulent liens filed by inmates. There is no statutory deadline, creating a potential "regulatory gray zone" for this specific remedy until the form is published.

Immediate Action Plan

1. Shift to E-Recording: Immediately migrate as much volume as possible to electronic recording to bypass the in-person ID bottleneck and associated delays.
2. Audit Runner Protocols: Issue a directive to all internal and external couriers: No ID = No Filing.
3. Update Litigation Trackers: Instruct outside counsel to itemize "quiet title" expenses separately in invoices to facilitate future restitution claims.
4. Prepare Fraud Affidavits: Draft a standard "Notice of Fraudulent Filing" affidavit for use after January 1, 2026, to formally trigger the County Clerk's mandatory reporting duty.

Operational Changes Required

Contracts

Courier & Runner MSAs: Master Service Agreements with third-party filing services must be amended to require that all runners possess valid, unexpired government Photo ID. Include indemnity clauses for delays or rejections caused by a runner's failure to produce ID.
Settlement Agreements: In civil fraud settlements, draft language carefully to ensure you do not waive rights to mandatory criminal restitution under the new Article 42.0376, Code of Criminal Procedure.

Hiring/Training

Filing Personnel: Staff and runners must be trained that "drop and go" filing is no longer permitted for in-person conveyance instruments; they must wait for ID verification.
Legal & Claims Teams: Train staff to segregate and track costs associated with "quiet title" actions and property damage. These specific costs are now legally recoverable as criminal restitution.

Reporting & Record-Keeping

Restitution Ledgers: Title insurers must implement specific accounting codes to track claim payments, attorney's fees, and court costs related to fraud. You must provide these precise figures to prosecutors to secure mandatory restitution judgments.
ID Logging: County Clerks are required to document the ID number and type for every in-person filer. Expect longer wait times at recording desks.

Fees & Costs

Filing Fees: The statute explicitly prohibits County Clerks from charging a fee to record the filer's ID information.
Operational Costs: Anticipate increased billable hours for physical filing due to processing delays at the Clerk's counter.

Strategic Ambiguities & Considerations

E-Recording Loophole: The statute explicitly requires Photo ID for individuals presenting instruments "in person." It is silent regarding electronic recording. We anticipate fraudsters may migrate to e-recording platforms. Monitor your e-recording vendor's identity verification standards (KBA/MFA) closely.
"Advising" of Fraud: Effective Jan 1, 2026, Clerks must notify police if they are "advised" of a fraudulent filing. The law does not define what constitutes "advice." We expect Clerks to require a sworn affidavit rather than a verbal complaint to trigger this duty.

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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.

Legislative Timeline

This bill's path through the Texas Legislature

TopicsProperty Interests Property Interests--real Property County Government County Government--general Courts Courts--general Crimes Crimes--against Property Criminal Procedure Criminal Procedure--sentencing & Punishment Fraud Statutes of Limitations Courts--prosecuting Attorneys Identification Cards Records Management Property Interests--mortgages & Liens Attorney General Secretary of State

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Frequently Asked Questions

Common questions about SB16

What does Texas SB16 do?

Senate Bill 16 fundamentally alters Texas real property recording procedures by mandating government-issued Photo ID for all in-person filings and elevating real estate fraud to a first-degree felony with a 10-year statute of limitations. This legislation impacts title companies, law firms, and courier services by creating a mandatory restitution regime for insurers and imposing strict identity verification protocols at County Clerk offices. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: September 1, 2025 (Immediate requirement for Photo ID at filing counters).

Who authored SB16?

SB16 was authored by Texas Senator Royce West during the 2nd Special Session.

When was SB16 signed into law?

SB16 was signed into law by Governor Greg Abbott on September 17, 2025.

Which agencies enforce SB16?

SB16 is enforced by County Clerks (Recording requirements and ID verification), District Attorneys / Prosecutors, Law Enforcement Agencies, Office of the Attorney General (OAG) and Secretary of State (Fraudulent lien filings).

How urgent is compliance with SB16?

The compliance urgency for SB16 is rated as "critical". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of SB16?

The cost impact of SB16 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does SB16 address?

SB16 addresses topics including property interests, property interests--real property, county government, county government--general and courts.

Legislative data provided by LegiScanLast updated: November 25, 2025

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