TITLE: Relating to the persons who are authorized to request a payoff statement from a property tax lender.

SUMMARY: Relating to the persons who are authorized to request a payoff statement from a property tax lender.

FULL TEXT:
AN ACT relating to the persons who are authorized to request a payoff statement from a property tax lender. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Sections 32.06(a-4) and (a-6), Tax Code, are amended to read as follows: (a-4) The Finance Commission of Texas shall: (1) prescribe the form and content of an appropriate disclosure statement to be provided to a property owner before the execution of a tax lien transfer; (2) adopt rules relating to the reasonableness of closing costs, fees, and other charges permitted under this section; (3) by rule prescribe the form and content of the sworn document under Subsection (a-1) and the certified statement under Subsection (b); and (4) by rule prescribe the form and content of a request a lender with an existing recorded lien on the property,a property owner, or a person authorized by the property owner must use to request a payoff statement and the transferee's response to the request, including the period within which the transferee must respond. (a-6) Notwithstanding Subsection (f-3), a person [lender] described by Subsection (a-4)(4) may request a payoff statement before the tax loan becomes delinquent. The Finance Commission of Texas by rule shall require a transferee who receives a request for a payoff statement to deliver to the requesting lender, property owner, or person authorized by the property owner the requested payoff statement on the prescribed form within a period prescribed by finance commission rule. The prescribed period must allow the transferee at least seven business days after the date the request is received to deliver the payoff statement. The consumer credit commissioner may assess an administrative penalty under Subchapter F, Chapter 14, Finance Code, against a transferee who wilfully fails to provide the payoff statement as prescribed by finance commission rule. SECTION 2. As soon as practicable after the effective date of this Act, the Finance Commission of Texas shall adopt rules necessary to implement the changes in law made by this Act. SECTION 3. This Act takes effect September 1, 2025.