In Carrington Mortgage Services, LLC v. Hutto, No. 14-15-00442-CV, 2017 WL 592120 (Tex. App. – Houston [14th Dist.] Feb. 14, 2017) (https://casetext.com/case/carrington-mortg-servs-llc-v-hutto), the Texas Appellate Court affirmed a trial court’s judgment that a home-equity lien did not comply with the Texas Constitution because the lender signed the Affidavit of Fair Market Value after the closing date of the loan, and, therefore, the lien was not created in compliance with Texas law.
Due to this new ruling, Docutech is adopting a conservative approach by adding the following counterpart language to Cx3653:
“This agreement may be signed in any number of counterparts, each of which is an original, and all of which taken together constitute one single document.”
The counterpart language clarifies that Texas law affords all parties, including the lender, the ability to sign copies of this document on the closing date, regardless of location, and have all fully executed copies of the document read as a whole.
This change will go into effect on May 31, 2017. If you have any questions or concerns about this update, please contact Client Support at 1.800.497.3584.