| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to authority process of a recorded lien. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 32.06, Tax Code, is amended as follows: |
|
|
(a-4) The Finance Commission of Texas shall: |
|
|
(1) prescribe the form and content of an appropriate |
|
|
disclosure statement to be provided to a property owner before the |
|
|
execution of a tax lien transfer; |
|
|
(2) adopt rules relating to the reasonableness of |
|
|
closing costs, fees, and other charges permitted under this |
|
|
section; |
|
|
(3) by rule prescribe the form and content of the sworn |
|
|
document under Subsection (a-1) and the certified statement under |
|
|
Subsection (b); and |
|
|
(4) by rule prescribe the form and content of a request |
|
|
a lender with an existing recorded lien on the property, consumer, |
|
|
or third party authorized by the consumer must use to request a |
|
|
payoff statement and the transferee's response to the request, |
|
|
including the period within which the transferee must respond. |
|
|
(a-5) At the time the transferee provides the disclosure |
|
|
statement required by Subsection (a-4)(1), the transferee must also |
|
|
describe the type and approximate cost range of each additional |
|
|
charge or fee that the property owner may incur in connection with |
|
|
the transfer. |
|
|
(a-6) Notwithstanding Subsection (f-3), a lenderparty |
|
|
described by Subsection (a-4)(4) may request a payoff statement |
|
|
before the tax loan becomes delinquent. The Finance Commission of |
|
|
Texas by rule shall require a transferee who receives a request for |
|
|
a payoff statement to deliver the requested payoff statement on the |
|
|
prescribed form within a period prescribed by finance commission |
|
|
rule. The prescribed period must allow the transferee at least |
|
|
seven business days after the date the request is received to |
|
|
deliver the payoff statement. The consumer credit commissioner may |
|
|
assess an administrative penalty under Subchapter F, Chapter 14, |
|
|
Finance Code, against a transferee who wilfully fails to provide |
|
|
the payoff statement as prescribed by finance commission rule. |
|
|
SECTION 2. This Act takes effect January 1, 2025. |