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Current as of January 01, 2024 | Updated by Findlaw Staff
(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(b), Tax Code;
(2) a reasonable fee for a payoff statement authorized under Section 32.06(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(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 Section 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.
(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, 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.
Cite this article: FindLaw.com - Texas Finance Code - FIN § 351.0021. Authorized Charges - last updated January 01, 2024 | https://codes.findlaw.com/tx/finance-code/fin-sect-351-0021/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.
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