Texas Finance Code 351.0021 – Authorized Charges
(a) The contract between a property tax lender and a property owner may require the property owner to pay the following costs after closing:
(1) a reasonable fee for filing the release of a tax lien authorized under § 32.06(b), Tax Code;
(2) a reasonable fee for a payoff statement authorized under § 32.06(f-3), Tax Code;
(3) a reasonable fee for providing information regarding the current balance owed by the property owner authorized under § 32.06(g), Tax Code;
(4) reasonable and necessary attorney’s fees, recording fees, and court costs for actions that are legally required to respond to a suit filed under Chapter 33, Tax Code, or to perform a foreclosure, including fees required to be paid to an official and fees for an attorney ad litem;
(5) to the extent permitted by the United States Bankruptcy Code, attorney’s fees and court costs for services performed after the property owner files a voluntary bankruptcy petition;
(6) a reasonable fee for title examination and preparation of an abstract of title by an attorney, a title company, or a property search company authorized to do business in this state;
(7) a processing fee for insufficient funds, as authorized under § 3.506, Business & Commerce Code;
(8) a fee for collateral protection insurance, as authorized under Chapter 307;
(9) a prepayment penalty, unless the lien transferred is on residential property owned and used by the property owner for personal, family, or household purposes;
(10) recording expenses incurred in connection with a modification necessary to preserve a borrower’s ability to avoid a foreclosure proceeding; and
(11) fees for copies of transaction documents requested by the property owner.
(b) Notwithstanding Subsection (a)(11), a property tax lender shall provide a property owner:
(1) one free copy of the transaction documents at closing; and
(2) an additional free copy of the transaction documents on the property owner’s request following closing.
Terms Used In Texas Finance Code 351.0021
- 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.
- Contract: A legal written agreement that becomes binding when signed.
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- Lien: A claim against real or personal property in satisfaction of a debt.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
- Property: means real and personal property. See Texas Government Code 311.005
- United States: includes a department, bureau, or other agency of the United States of America. See Texas Government Code 311.005
(c) A property tax lender or any successor in interest may not charge:
(1) any fee, other than interest, after closing in connection with the transfer of a tax lien unless the fee is expressly authorized under this section; or
(2) any interest that is not expressly authorized under § 32.06, Tax Code.
(d) Except for charges authorized under Subsections (a)(1), (2), (3), (9), and (11), any amount charged by a property tax lender after closing must be for services performed by a person that is not an employee of the property tax lender.
(e) The finance commission may adopt rules implementing and interpreting this section.