| 1 | 1 | | 84R6031 SMH-F |
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| 2 | 2 | | By: Birdwell S.B. No. 525 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to ad valorem tax lien transfers. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Sections 32.06(a-1), (a-4), (b-1), and (f-1), |
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| 10 | 10 | | Tax Code, are amended to read as follows: |
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| 11 | 11 | | (a-1) A property owner may authorize another person to pay |
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| 12 | 12 | | the taxes imposed by a taxing unit on the owner's real property by |
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| 13 | 13 | | executing and filing with the collector for the taxing unit: |
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| 14 | 14 | | (1) a sworn document stating: |
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| 15 | 15 | | (A) the authorization for payment of the taxes; |
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| 16 | 16 | | (B) the name and street address of the transferee |
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| 17 | 17 | | authorized to pay the taxes of the property owner; |
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| 18 | 18 | | (C) a description of the property by street |
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| 19 | 19 | | address, if applicable, and legal description; [and] |
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| 20 | 20 | | (D) that notice has been given to the property |
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| 21 | 21 | | owner that if the property owner is disabled, the property owner may |
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| 22 | 22 | | be eligible for a tax deferral under Section 33.06; |
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| 23 | 23 | | (E) that the disclosure statement required by |
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| 24 | 24 | | Subsection (a-4)(1) has been provided to the property owner; and |
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| 25 | 25 | | (F) that the notice required by Subsection (b-1) |
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| 26 | 26 | | has been mailed by certified mail to any mortgage servicer and to |
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| 27 | 27 | | each holder of a recorded preexisting lien encumbering the |
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| 28 | 28 | | property; and |
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| 29 | 29 | | (2) the information required by Section 351.054, |
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| 30 | 30 | | Finance Code. |
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| 31 | 31 | | (a-4) The Finance Commission of Texas shall: |
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| 32 | 32 | | (1) prescribe the form and content of an appropriate |
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| 33 | 33 | | disclosure statement to be provided to a property owner not later |
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| 34 | 34 | | than the 12th day before the execution of a tax lien transfer; |
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| 35 | 35 | | (2) adopt rules relating to the reasonableness of |
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| 36 | 36 | | closing costs, fees, and other charges permitted under this |
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| 37 | 37 | | section; |
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| 38 | 38 | | (3) by rule prescribe the form and content of the sworn |
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| 39 | 39 | | document under Subsection (a-1) and the certified statement under |
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| 40 | 40 | | Subsection (b); and |
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| 41 | 41 | | (4) by rule prescribe the form and content of a request |
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| 42 | 42 | | a lender with an existing recorded lien on the property must use to |
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| 43 | 43 | | request a payoff statement and the transferee's response to the |
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| 44 | 44 | | request, including the period within which the transferee must |
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| 45 | 45 | | respond. |
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| 46 | 46 | | (b-1) Not later than the 12th day before the date the |
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| 47 | 47 | | property owner files the sworn document required by Subsection |
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| 48 | 48 | | (a-1) with the collector for the taxing unit [10th business day |
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| 49 | 49 | | after the date the certified statement is received by the |
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| 50 | 50 | | transferee], the transferee shall send by certified mail [a copy of |
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| 51 | 51 | | the sworn document described by Subsection (a-1)] to any mortgage |
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| 52 | 52 | | servicer and to each holder of a recorded preexisting [first] lien |
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| 53 | 53 | | encumbering the property a notice that the property owner has |
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| 54 | 54 | | requested that the transferee pay the taxes on the property, that |
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| 55 | 55 | | the tax lien will be transferred to the transferee, and that the |
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| 56 | 56 | | transferred tax lien will be superior to the mortgage. The notice |
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| 57 | 57 | | [copy] must be sent, as applicable, to the address shown on the most |
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| 58 | 58 | | recent payment invoice, statement, or payment coupon provided by |
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| 59 | 59 | | the mortgage servicer to the property owner, or the address of the |
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| 60 | 60 | | holder of a recorded preexisting [first] lien as shown in the real |
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| 61 | 61 | | property records. |
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| 62 | 62 | | (f-1) If an obligation secured by a preexisting first lien |
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| 63 | 63 | | on the property is delinquent [for at least 90 consecutive days] and |
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| 64 | 64 | | the obligation has been referred to a collection specialist, the |
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| 65 | 65 | | mortgage servicer or the holder of the first lien may send a notice |
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| 66 | 66 | | of the delinquency to the transferee of a tax lien. The mortgage |
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| 67 | 67 | | servicer or the first lienholder is entitled, within six months |
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| 68 | 68 | | after the date on which that notice is sent, to obtain a release of |
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| 69 | 69 | | the transferred tax lien by paying the transferee of the tax lien |
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| 70 | 70 | | the amount owed under the contract between the property owner and |
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| 71 | 71 | | the transferee. The Finance Commission of Texas by rule shall |
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| 72 | 72 | | prescribe the form and content of the notice under this subsection. |
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| 73 | 73 | | SECTION 2. The change in law made by this Act applies only |
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| 74 | 74 | | to an ad valorem tax lien transferred on or after the effective date |
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| 75 | 75 | | of this Act. An ad valorem tax lien transferred before the |
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| 76 | 76 | | effective date of this Act is governed by the law in effect on the |
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| 77 | 77 | | date the tax lien was transferred, and the former law is continued |
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| 78 | 78 | | in effect for that purpose. |
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| 79 | 79 | | SECTION 3. This Act takes effect September 1, 2015. |
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