(a) The trustee or substitute trustee shall ensure that funds received at the sale are maintained in a separate account until distributed. The trustee or substitute trustee shall cause to be maintained a written record of deposits to and disbursements from the account.
(b) The trustee or substitute trustee shall make reasonable attempts to identify and locate the persons entitled to all or any part of the sale proceeds.
Terms Used In Texas Business and Commerce Code 22.006
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Trustee: A person or institution holding and administering property in trust.
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
(c) In connection with the sale and related post-sale actions to identify persons with legal claims to sale proceeds, determine the priority of any claims, and distribute proceeds to pay claims, a trustee or substitute trustee may receive:
(1) reasonable actual costs incurred, including costs for evidence of title;
(2) a reasonable trustee’s or substitute trustee’s fee; and
(3) reasonable trustee’s or substitute trustee’s attorney’s fees.
(d) A fee described by Subsection (c):
(1) is considered earned at the time of the sale;
(2) may be paid from sale proceeds in excess of the payoff of the lien being foreclosed; and
(3) is conclusively presumed to be reasonable if the fee:
(A) is not more than the lesser of 2.5 percent of the sale proceeds or $5,000, for a trustee’s or substitute trustee’s fee; or
(B) is not more than 1.5 percent of the sale proceeds, for trustee’s or substitute trustee’s attorney’s fees incurred to identify persons with legal claims to sale proceeds and determine the priority of the claims.
(e) A trustee or substitute trustee who prevails in a suit based on a claim that relates to the sale and that is found by a court to be groundless in fact or in law is entitled to recover reasonable attorney’s fees necessary to defend against the claim, which may be paid from the excess sale proceeds, if any.
(f) Nothing in this section precludes the filing of an interpleader action or the depositing of funds in a court registry.