Tex.
Fin. Code Section 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 Section 32.06 (Property Tax Loans; Transfer of Tax Lien)(b), Tax Code;(2)
a reasonable fee for a payoff statement authorized under Section 32.06 (Property Tax Loans; Transfer of Tax Lien)(f-3), Tax Code;(3)
a reasonable fee for providing information regarding the current balance owed by the property owner authorized under Section 32.06 (Property Tax Loans; Transfer of Tax Lien)(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 (Delinquency), 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 Section 3.506 (Processing Fee by Holder of Payment Device), Business & Commerce Code;(8)
a fee for collateral protection insurance, as authorized under Chapter 307 (Collateral Protection Insurance);(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.(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 Section 32.06 (Property Tax Loans; Transfer of Tax Lien), 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.
Source:
Section 351.0021 — Authorized Charges, https://statutes.capitol.texas.gov/Docs/FI/htm/FI.351.htm#351.0021 (accessed May 18, 2024).
