Texas Business & Commerce Code - Section 2.107. Goods To Be Severed From Realty: Recording

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§ 2.107. GOODS TO BE SEVERED FROM REALTY:  RECORDING.  (a) 
A contract for the sale of minerals or the like (including oil and 
gas) or a structure or its materials to be removed from realty is a 
contract for the sale of goods within this chapter if they are to be 
severed by the seller but until severance a purported present sale 
thereof which is not effective as a transfer of an interest in land 
is effective only as a contract to sell.
	(b)  A contract for the sale apart from the land of growing 
crops or other things attached to realty and capable of severance 
without material harm thereto but not described in Subsection (a) 
or of timber to be cut is a contract for the sale of goods within 
this chapter whether the subject matter is to be severed by the 
buyer or by the seller even though it forms part of the realty at the 
time of contracting, and the parties can by identification effect a 
present sale before severance.
	(c)  The provisions of this section are subject to any third 
party rights provided by the law relating to realty records, and the 
contract for sale may be executed and recorded as a document 
transferring an interest in land and shall then constitute notice 
to third parties of the buyer's rights under the contract for sale.

Acts 1967, 60th Leg., p. 2343, ch. 785, § 1, eff. Sept. 1, 1967.  
Amended by Acts 1973, 63rd Leg., p. 998, ch. 400, § 3, eff. Jan. 
1, 1974.

Last modified: August 10, 2007