(a) Except as provided by Subsection (c), a recipient of a loan may not lease, sell, or otherwise transfer in whole or part land or any interest in land against which there is a mortgage, deed of trust, or any other lien securing the loan:
(1) before the third anniversary of the date the recipient purchases the land; and
(2) unless the recipient has complied with any other terms and conditions provided by this subchapter and the rules of the board.
(b) After the three-year period prescribed by Subsection (a), land may be sold or otherwise transferred, subject to any lien securing a loan, if:
(1) all interest, principal, and taxes that are due have been paid;
(2) the terms and conditions of this subchapter and rules of the board have been met; and
(3) the board approves the sale or other transfer.

Terms Used In Texas Natural Resources Code 161.511

  • Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
  • Deed: The legal instrument used to transfer title in real property from one person to another.
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.

(c) The board may waive the three-year period prescribed by Subsection (a):
(1) in a case of death, bankruptcy, financial incapacity, or divorce of the loan recipient;
(2) if a loan recipient is forced to move because of a change in employment or because the recipient’s home is condemned through no fault of the recipient; or
(3) at any other time the board considers a waiver to be in the best interest of the program.

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