By: Park H.B. No. 222 73R974 LJD-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to notice to subordinate lienholders of proposed 1-3 foreclosure or forfeiture under a superior deed of trust or 1-4 executory contract for conveyance. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Section 5.061, Property Code, is amended to read 1-7 as follows: 1-8 Sec. 5.061. Avoidance of Forfeiture and Acceleration. A 1-9 seller may enforce a forfeiture of interest and the acceleration of 1-10 the indebtedness of a purchaser in default under an executory 1-11 contract for conveyance of real property used or to be used as the 1-12 purchaser's residence only after notifying the purchaser, and each 1-13 subordinate lienholder requesting a copy of the notice in 1-14 accordance with Section 5.065, of the seller's intent to enforce 1-15 the forfeiture and acceleration and the expiration of the following 1-16 periods: 1-17 (1) if the purchaser has paid less than 10 percent of 1-18 the purchase price, 15 days after the date notice is given; 1-19 (2) if the purchaser has paid 10 percent or more but 1-20 less than 20 percent of the purchase price, 30 days after the date 1-21 notice is given; and 1-22 (3) if the purchaser has paid 20 percent or more of 1-23 the purchase price, 60 days after the date notice is given. 1-24 SECTION 2. Subchapter D, Chapter 5, Property Code, is 2-1 amended by adding Section 5.065 to read as follows: 2-2 Sec. 5.065. REQUEST FOR NOTICE OF FORFEITURE. (a) A person 2-3 holding a lien subordinate to a seller's interest in an executory 2-4 contract for conveyance may request a copy of any notice given by 2-5 the seller under Section 5.061. The subordinate lienholder must 2-6 file a written request for notice in the office of the county clerk 2-7 of each county in which the property is located. The request must 2-8 be on record in that office at least 10 days before the date the 2-9 seller gives notice under Section 5.061. 2-10 (b) The request for notice must: 2-11 (1) describe the executory contract for conveyance, 2-12 stating the date of its creation and its recording information, if 2-13 any, together with the names of the seller and purchaser; 2-14 (2) describe the property subject to the executory 2-15 contract for conveyance; 2-16 (3) describe the subordinate lien, stating the date of 2-17 its creation and its recording information, together with the name 2-18 of the subordinate lienholder requesting notice and the address of 2-19 the subordinate lienholder at which notice should be given; and 2-20 (4) be signed and acknowledged by the subordinate 2-21 lienholder. 2-22 (c) The county clerk shall record a request for notice under 2-23 this section in the same manner as an instrument concerning real 2-24 property. 2-25 (d) A request for notice filed under this section does not 2-26 affect title to the property. 2-27 (e) A seller must mail or deliver a copy of the notice to 3-1 the subordinate lienholder not later than one day after the date 3-2 notice is mailed or delivered to the purchaser. 3-3 SECTION 3. Section 51.002(b), Property Code, is amended to 3-4 read as follows: 3-5 (b) Notice of the sale, which must include a statement of 3-6 the earliest time at which the sale will occur, must be given at 3-7 least 21 days before the date of the sale: 3-8 (1) by posting at the courthouse door of each county 3-9 in which the property is located a written notice designating the 3-10 county in which the property will be sold; 3-11 (2) by filing in the office of the county clerk of 3-12 each county in which the property is located a copy of the notice 3-13 posted under Subdivision (1); and 3-14 (3) by the holder of the debt to which the power of 3-15 sale is related serving written notice of the sale by certified 3-16 mail on: 3-17 (A) each debtor who, according to the records of 3-18 the holder of the debt, is obligated to pay the debt; and 3-19 (B) each subordinate lienholder requesting 3-20 notice in accordance with Section 51.006. 3-21 SECTION 4. Chapter 51, Property Code, is amended by adding 3-22 Section 51.006 to read as follows: 3-23 Sec. 51.006. REQUEST FOR NOTICE OF SALE. (a) A person 3-24 holding a lien subordinate to a deed of trust or other contract 3-25 lien on property may request a copy of each notice posted by a 3-26 superior lienholder under Section 51.002(b)(1). The subordinate 3-27 lienholder must file a written request for notice in the office of 4-1 the county clerk of each county in which the property is located. 4-2 The request must be on record in that office at least 25 days 4-3 before the date of a scheduled sale. 4-4 (b) The request for notice must: 4-5 (1) describe the superior lien, stating the date of 4-6 its creation and its recording information, together with any named 4-7 grantor, trustee, and beneficiary, and include a description of the 4-8 property subject to the lien; 4-9 (2) describe the subordinate lien, stating the date of 4-10 its creation and its recording information, together with the name 4-11 of the subordinate lienholder requesting notice and the address of 4-12 the subordinate lienholder to which notice should be sent; and 4-13 (3) be signed and acknowledged by the subordinate 4-14 lienholder. 4-15 (c) The county clerk shall record a request for notice under 4-16 this section in the same manner as an instrument concerning real 4-17 property. 4-18 (d) A request for notice filed under this section does not 4-19 affect title to the property. 4-20 SECTION 5. This Act applies only to a foreclosure sale under 4-21 a deed of trust or other contract lien and to a forfeiture of 4-22 interest under an executory contract for the conveyance of real 4-23 property for which notice is sent to the holder of the debt or to 4-24 the purchaser after the effective date of this Act. 4-25 SECTION 6. The importance of this legislation and the 4-26 crowded condition of the calendars in both houses create an 4-27 emergency and an imperative public necessity that the 5-1 constitutional rule requiring bills to be read on three several 5-2 days in each house be suspended, and this rule is hereby suspended, 5-3 and that this Act take effect and be in force from and after its 5-4 passage, and it is so enacted.