| 1 | 1 | | 85R5105 SMH-D |
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| 2 | 2 | | By: Nichols S.B. No. 1397 |
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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 notice by a property owner to a mortgage servicer that |
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| 8 | 8 | | the owner intends to enter into a contract with a property tax |
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| 9 | 9 | | lender. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 32.06, Tax Code, is amended by amending |
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| 12 | 12 | | Subsection (a-1) and adding Subsection (a-10) to read as follows: |
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| 13 | 13 | | (a-1) A property owner may authorize another person to pay |
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| 14 | 14 | | the taxes imposed by a taxing unit on the owner's real property by |
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| 15 | 15 | | executing and filing with the collector for the taxing unit: |
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| 16 | 16 | | (1) a sworn document stating: |
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| 17 | 17 | | (A) the authorization for payment of the taxes; |
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| 18 | 18 | | (B) the name and street address of the transferee |
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| 19 | 19 | | authorized to pay the taxes of the property owner; |
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| 20 | 20 | | (C) a description of the property by street |
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| 21 | 21 | | address, if applicable, and legal description; [and] |
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| 22 | 22 | | (D) that notice has been given to the property |
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| 23 | 23 | | owner that if the property owner is disabled, the property owner may |
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| 24 | 24 | | be eligible for a tax deferral under Section 33.06; and |
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| 25 | 25 | | (E) that the notice required by Subsection (a-10) |
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| 26 | 26 | | has been mailed by certified mail to any applicable mortgage |
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| 27 | 27 | | servicer; and |
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| 28 | 28 | | (2) the information required by Section 351.054, |
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| 29 | 29 | | Finance Code. |
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| 30 | 30 | | (a-10) Not later than the 10th day before the date a |
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| 31 | 31 | | property owner executes a contract with a transferee, the property |
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| 32 | 32 | | owner shall send by certified mail to any applicable mortgage |
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| 33 | 33 | | servicer a notice that the property owner intends to enter into a |
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| 34 | 34 | | contract with the transferee authorizing the transferee to pay the |
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| 35 | 35 | | delinquent taxes on the property. |
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| 36 | 36 | | SECTION 2. The change in law made by this Act applies only |
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| 37 | 37 | | to a contract between a property owner and a transferee authorizing |
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| 38 | 38 | | the transferee to pay the delinquent taxes on the property that is |
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| 39 | 39 | | entered into on or after the effective date of this Act. A contract |
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| 40 | 40 | | entered into before the effective date of this Act is governed by |
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| 41 | 41 | | the law in effect on the date the contract is entered into, and the |
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| 42 | 42 | | former law is continued in effect for that purpose. |
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| 43 | 43 | | SECTION 3. This Act takes effect September 1, 2017. |
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