reglab/statecodes huggingface dataset:
2023 Texas Statutes › Property Code › Title 5 - Exempt Property and Liens › Subtitle B - Liens › Chapter 63 - Manufactured Home Lien › Section 63.005. Conversion of Lien From a Personal Property Lien to a Real Property Lien for the Debt for the New Improvements Thereon

Sec. 63.005.  CONVERSION OF LIEN FROM A PERSONAL PROPERTY LIEN TO A REAL PROPERTY LIEN FOR THE DEBT FOR THE NEW IMPROVEMENTS THEREON.  (a)  A manufactured home becomes a new improvement to the homestead of a family or of a single adult person upon the filing of the appropriate statement of ownership as provided in Chapter 1201, Occupations Code.  As such, if the debt for the manufactured home was contracted for in writing, that debt is considered to be for work and materials used in constructing new improvements thereon and thus constitutes a valid lien on the homestead when the appropriate statement of ownership is filed in the Official Public Records of Real Property in the county in which the land is located.
(b)  When the manufactured home converts to real property as provided by Section 2.001 of this code, the lien on the property exists independently of any existing lien on the real property to which the home is permanently attached.
Added by Acts 2001, 77th Leg., ch. 1055, Sec. 7, eff. Jan. 1, 2002.  Renumbered from Property Code Sec. 62.005 by Acts 2003, 78th Leg., ch. 1275, Sec. 2(118), eff. Sept. 1, 2003.  Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 14A.806, eff. Sept. 1, 2003.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 408 (H.B. 2019), Sec. 78, eff. September 1, 2017.
2023 Texas Statutes › Property Code › Title 5 - Exempt Property and Liens › Subtitle B - Liens › Chapter 64 - Assignment of Rents to Lienholder › Subchapter A. General Provisions › Section 64.001. Definitions

Sec. 64.001.  DEFINITIONS.  In this chapter:
(1)  "Assignee" means a person entitled to enforce a security instrument.
(2)  "Assignment of rents" means a transfer of an interest in rents in connection with an obligation secured by real property from which the rents arise.  The term does not include a contract for a charge authorized by Section 306.101, Finance Code, or a true sale of rents.
(3)  "Assignor" means a person who makes a security instrument that creates an assignment of rents arising from real property or that person's successor in interest with respect to the real property.
(4)  "Cash proceeds" means proceeds that are money, checks, deposit accounts, or the like.
(5)  "Day" means a calendar day.
(6)  "Deposit account" means a demand, time, savings, passbook, escrow, or similar account maintained with a bank, savings bank, savings and loan association, credit union, trust company, or other person.
(7)  "Document" means information that is inscribed on a tangible medium or that is stored on an electronic or other medium and is retrievable in perceivable form.
(8)  "Proceeds" means personal property that is received, collected, or distributed on account of an obligation to pay rents.
(9)  "Rents" means  consideration payable for the right to possess or occupy, or for possessing or occupying, real property,  consideration payable to an assignor under a policy of rental interruption insurance covering real property,  claims arising out of a default in the payment of consideration payable for the right to possess or occupy real property,  consideration payable to terminate an agreement to possess or occupy real property,  consideration payable to an assignor for payment or reimbursement of expenses incurred in owning, operating, and maintaining, or constructing or installing improvements on, real property, or any other consideration payable under an agreement relating to the real property that constitutes rents under a law of this state other than this chapter.  The term does not include consideration payable under an oil and gas lease, mineral lease, or other conveyance of a mineral estate.
(10)  "Secured obligation" means an obligation secured by an assignment of rents.
(11)  "Security instrument" means:
(A)  a security instrument, as that term is defined by Section 51.0001; or
(B)  an agreement containing an assignment of rents.
(12)  "Security interest" means an interest in property that arises by agreement and secures an obligation.
(13)  "Sign" includes to sign by an electronic signature, as defined by Section 15.002.
(14)  "Tenant" means a person who has an obligation to pay for the right to possess or occupy, or for possessing or occupying, real property.
Added by Acts 2011, 82nd Leg., R.S., Ch. 636 (S.B. 889), Sec. 2, eff. June 17, 2011.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 453 (S.B. 848), Sec. 1, eff. June 14, 2013.
2023 Texas Statutes › Property Code › Title 5 - Exempt Property and Liens › Subtitle B - Liens › Chapter 64 - Assignment of Rents to Lienholder › Subchapter A. General Provisions › Section 64.002. Manner of Giving Notice

Sec. 64.002.  MANNER OF GIVING NOTICE.  (a)  A person may give notice under this chapter:
(1)  by transmitting the notice in the manner described by Section 51.002(e);
(2)  by depositing the notice with the United States Postal Service or a commercially reasonable delivery service, properly addressed to the intended recipient's address in accordance with this section, with first class postage or other cost of delivery paid; or
(3)  by transmitting the notice to the intended recipient by any means agreed to by the intended recipient.
(b)  The following rules determine the address for notices under Subsection (a):
(1)  the address for notices to an assignee is the address of the assignee agreed in the security instrument or other document between the parties as the address for notices to the assignee, unless a more recent address for notices has been given by the assignee to the person giving the notice in accordance with Subsection (a) or as agreed in a security instrument or other document signed by the assignee;
(2)  the address for notices to an assignor is the address of the assignor agreed in the security instrument or other document between the parties as the address for notices to the assignor or as provided in Section 51.002, unless a more recent address for notices has been given by the assignor to the person giving the notice in accordance with Subsection (a) or as agreed in a security instrument or other document signed by the assignor; and
(3)  for notices to a tenant:
(A)  if there is  an address for notices to the tenant in a signed document between the tenant and the person giving the notice, the person giving the notice shall use that address unless a more recent address for notices has been given by the tenant in accordance with that document;
(B)  if an address for notices described by Paragraph (A) does not exist, but the tenant's agreement with the assignor has an address for notices to the tenant and the person giving the notice has received a copy of that document or has actual knowledge of the address for notices specified in that document, the person giving the notice shall use that address; or
(C)  if an address for notices described by Paragraphs (A) and (B) does not exist, the person giving the notice shall use the tenant's address at the real property covered by the security instrument.
(c)  Notice given in accordance with this chapter is deemed received on the earliest of:
(1)  the date the notice is received by the person to whom the notice is given;
(2)  the fifth day after the date the notice is given in accordance with Subsection (a)(2); or
(3)  the date on which notice is deemed received in accordance with an agreement made by the person to whom the notice is given.
(d)  A notice under this chapter must be a document.
Added by Acts 2011, 82nd Leg., R.S., Ch. 636 (S.B. 889), Sec. 2, eff. June 17, 2011.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 453 (S.B. 848), Sec. 2, eff. June 14, 2013.
2023 Texas Statutes › Property Code › Title 5 - Exempt Property and Liens › Subtitle B - Liens › Chapter 64 - Assignment of Rents to Lienholder › Subchapter B. Assignment of Rents › Section 64.051. Security Instrument Creates Assignment of Rents; Assignment of Rents Creates Security Interest

Sec. 64.051.  SECURITY INSTRUMENT CREATES ASSIGNMENT OF RENTS; ASSIGNMENT OF RENTS CREATES SECURITY INTEREST.  (a)  An enforceable security instrument creates an assignment of rents arising from real property described in that security instrument, unless the security instrument provides otherwise or the security instrument is governed by Section 50(a)(6), (7), or (8), Article XVI, Texas Constitution.
(b)  An assignment of rents creates a presently effective security interest in all accrued and unaccrued rents arising from the real property described in the security instrument creating the assignment, regardless of whether the security instrument is in the form of an absolute assignment, an absolute assignment conditioned on default or other event, an assignment as additional security, or any other form.  The security interest in rents is separate and distinct from any security interest held by the assignee in the real property from which the rents arise.
(c)  An assignment of rents does not reduce the secured obligation except to the extent the assignee collects rents and applies, or is obligated to apply, the collected rents to payment of the secured obligation.
Added by Acts 2011, 82nd Leg., R.S., Ch. 636 (S.B. 889), Sec. 2, eff. June 17, 2011.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 453 (S.B. 848), Sec. 3, eff. June 14, 2013.
2023 Texas Statutes › Property Code › Title 5 - Exempt Property and Liens › Subtitle B - Liens › Chapter 64 - Assignment of Rents to Lienholder › Subchapter B. Assignment of Rents › Section 64.052. Recordation and Perfection of Security Interest in Rents; Priority of Interests in Rents

Sec. 64.052.  RECORDATION AND PERFECTION OF SECURITY INTEREST IN RENTS; PRIORITY OF INTERESTS IN RENTS.  (a)  A security instrument creating an assignment of rents may be recorded in the county in which any part of the real property is located in accordance with this code.
(b)  On recordation of a security instrument creating an assignment of rents, the security interest in the rents is perfected.  This subsection prevails over a conflicting provision in the security instrument creating the assignment of rents or a law of this state other than this chapter that prohibits or defers enforcement of the security interest until the occurrence of a subsequent event, including a subsequent default of the assignor, the assignee's obtaining possession of the real property, or the appointment of a receiver.
(c)  Except as provided by Subsection (d), a perfected security interest in rents has priority over the rights of a person who, after the security interest is perfected, acquires:
(1)  a lien on or other security interest in the rents or the real property from which the rents arise; or
(2)  an interest in the rents or the real property from which the rents arise.
(d)  An assignee with a perfected security interest in rents has the same priority over the rights of a person described by Subsection (c) with respect to future advances as the assignee has with respect to the assignee's security interest in the real property from which the rents arise.
Added by Acts 2011, 82nd Leg., R.S., Ch. 636 (S.B. 889), Sec. 2, eff. June 17, 2011.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 453 (S.B. 848), Sec. 4, eff. June 14, 2013.
2023 Texas Statutes › Property Code › Title 5 - Exempt Property and Liens › Subtitle B - Liens › Chapter 64 - Assignment of Rents to Lienholder › Subchapter B. Assignment of Rents › Section 64.053. Enforcement of Security Interest in Rents Generally

Sec. 64.053.  ENFORCEMENT OF SECURITY INTEREST IN RENTS GENERALLY.  (a)  An assignee may enforce an assignment of rents using one or more of the methods provided by Section 64.054 or 64.055 or any other method sufficient to enforce an assignment of rents under a law of this state other than this chapter.
(b)  On and after the date on which an assignee begins to enforce an assignment of rents, the assignee is entitled to collect all rents that:
(1)  have accrued but remain unpaid on that date; and
(2)  accrue on or after that date.
Added by Acts 2011, 82nd Leg., R.S., Ch. 636 (S.B. 889), Sec. 2, eff. June 17, 2011.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 453 (S.B. 848), Sec. 5, eff. June 14, 2013.
2023 Texas Statutes › Property Code › Title 5 - Exempt Property and Liens › Subtitle B - Liens › Chapter 64 - Assignment of Rents to Lienholder › Subchapter B. Assignment of Rents › Section 64.054. Enforcement by Notice to Assignor

Sec. 64.054.  ENFORCEMENT BY NOTICE TO ASSIGNOR.  (a)  After default, or as otherwise agreed by the assignor, the assignee may give the assignor a notice demanding that the assignor pay the assignee the proceeds of any rents that the assignee is entitled to collect under Section 64.053.
(b)  For the purposes of Section 64.053, the assignee begins enforcement under this section on the date on which the assignee gives notice to the assignor in accordance with Section 64.002.
(c)  An assignee may not enforce an assignment of rents under this section if, on the date the security instrument was signed and the date of prospective enforcement, the real property constitutes the assignor's homestead on which is located a one-family to four-family dwelling.
Added by Acts 2011, 82nd Leg., R.S., Ch. 636 (S.B. 889), Sec. 2, eff. June 17, 2011.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 453 (S.B. 848), Sec. 6, eff. June 14, 2013.
2023 Texas Statutes › Property Code › Title 5 - Exempt Property and Liens › Subtitle B - Liens › Chapter 64 - Assignment of Rents to Lienholder › Subchapter B. Assignment of Rents › Section 64.056. Form of Notice to Tenant

Sec. 64.056.  FORM OF NOTICE TO TENANT.  The following form of notice, when properly completed, satisfies the requirements of Section 64.055(a):
NOTICE TO PAY RENTS TO PERSON OTHER THAN LANDLORD
Tenant:  [Name of tenant]
Property Occupied by Tenant (the "Premises"):  [Address]
Landlord:  [Name of landlord]
Assignee:  [Name of assignee]
Address of Assignee and Telephone Number of Contact Person:  [Address of assignee] [Telephone number of person to contact]
1.  Assignee is entitled to collect rents on the Premises under [Name of Document] (the "Assignment of Rents") dated [Date of Assignment of Rents], and recorded at [Recording Data] of [Name of County] County, Texas.  You may obtain additional information about the Assignment of Rents and the Assignee's right to enforce it at the address of the Assignee.
2.  A default exists under the Assignment of Rents or related documents between the Landlord and the Assignee.  The Assignee is entitled to collect rents from the Premises.
3.  This notice affects your rights and obligations under the agreement under which you occupy the Premises (your "Lease Agreement").  Unless you have otherwise agreed in a document signed by you, if your next scheduled rental payment is due within 30 days after you receive this notice, you will not be in default under your Lease Agreement for nonpayment of that rental payment until the 10th day after the due date of that payment or the 30th day following the date you receive this notice, whichever occurs first.
4.  You may consult a lawyer at your expense concerning your rights and obligations under your Lease Agreement and the effect of this notice.
5.  You must pay to the Assignee at the Address of the Assignee all rents under your Lease Agreement that are due and payable on the date you receive this notice and all rents accruing under your Lease Agreement after you receive this notice.
6.  If you pay rents to the Assignee after receiving this notice, the payment will satisfy your rental obligation to the extent of that payment.
7.  If you pay any rents to the Landlord after receiving this notice, your payment to the Landlord will not discharge your rental obligation, and the Assignee may hold you liable for that rental obligation notwithstanding your payment to the Landlord unless you occupy the Premises as your primary residence.
8.  If you have previously received a notice from another person who also holds an assignment of the rents due under your Lease Agreement, you should continue paying your rents to the person that sent that notice until that person cancels that notice.  Once that notice is canceled, you must begin paying rents to the Assignee in accordance with this notice.
Name of assignee: __________
By:  [Officer/authorized agent of assignee]
Added by Acts 2011, 82nd Leg., R.S., Ch. 636 (S.B. 889), Sec. 2, eff. June 17, 2011.
2023 Texas Statutes › Property Code › Title 5 - Exempt Property and Liens › Subtitle B - Liens › Chapter 64 - Assignment of Rents to Lienholder › Subchapter B. Assignment of Rents › Section 64.057. Effect of Enforcement

Sec. 64.057.  EFFECT OF ENFORCEMENT.  The enforcement of an assignment of rents by a method provided by Section 64.054 or 64.055, the application of proceeds by the assignee under Section 64.059 after enforcement, the payment of expenses under Section 64.058, or an action under Section 64.060 does not:
(1)  make the assignee a mortgagee in possession of the real property from which the rents arise;
(2)  make the assignee an agent of the assignor;
(3)  constitute an election of remedies that precludes a later action to enforce the secured obligation;
(4)  make the secured obligation unenforceable;
(5)  limit any right available to the assignee with respect to the secured obligation; or
(6)  bar a deficiency judgment under any law of this state governing or relating to deficiency judgments following the enforcement of any encumbrance, lien, or security interest.
Added by Acts 2011, 82nd Leg., R.S., Ch. 636 (S.B. 889), Sec. 2, eff. June 17, 2011.
2023 Texas Statutes › Property Code › Title 5 - Exempt Property and Liens › Subtitle B - Liens › Chapter 64 - Assignment of Rents to Lienholder › Subchapter B. Assignment of Rents › Section 64.058. Application of Proceeds Generally

Sec. 64.058.  APPLICATION OF PROCEEDS GENERALLY.  Unless otherwise agreed, an assignee who collects rents under this chapter or collects on a judgment in an action under Section 64.060 shall apply the sums collected in the following order to:
(1)  reimbursement of the assignee's expenses of enforcing the assignee's assignment of rents, including, to the extent provided for by agreement by the assignor and not prohibited by a law of this state other than this chapter, reasonable attorney's fees and costs incurred by the assignee;
(2)  reimbursement of any expenses incurred by the assignee to protect or maintain the real property that is subject to the assignment of rents;
(3)  payment of the secured obligation;
(4)  payment of any obligation secured by a subordinate security interest or other lien on the rents if, before distribution of the proceeds, the assignee receives a signed notice from the holder of the interest or lien demanding payment of the proceeds; and
(5)  payment of any excess proceeds to the assignor.
Added by Acts 2011, 82nd Leg., R.S., Ch. 636 (S.B. 889), Sec. 2, eff. June 17, 2011.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 453 (S.B. 848), Sec. 8, eff. June 14, 2013.
2023 Texas Statutes › Property Code › Title 5 - Exempt Property and Liens › Subtitle B - Liens › Chapter 64 - Assignment of Rents to Lienholder › Subchapter B. Assignment of Rents › Section 64.059. Application of Proceeds to Expenses of Protecting Real Property; Claims and Defenses of Tenant

Sec. 64.059.  APPLICATION OF PROCEEDS TO EXPENSES OF PROTECTING REAL PROPERTY; CLAIMS AND DEFENSES OF TENANT.  (a)  Unless otherwise agreed by the assignee, an assignee that collects rents following enforcement under Section 64.054 or 64.055 is not obligated to apply the collected rents to the payment of expenses of protecting or maintaining the real property subject to an assignment of rents.
(b)  Unless otherwise agreed by a tenant, the right of the assignee to collect rents from the tenant is subject to the terms of any agreement between the assignor and tenant or any claim or defense of the tenant arising from the assignor's nonperformance of that agreement.
Added by Acts 2011, 82nd Leg., R.S., Ch. 636 (S.B. 889), Sec. 2, eff. June 17, 2011.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 453 (S.B. 848), Sec. 9, eff. June 14, 2013.
2023 Texas Statutes › Property Code › Title 5 - Exempt Property and Liens › Subtitle B - Liens › Chapter 64 - Assignment of Rents to Lienholder › Subchapter B. Assignment of Rents › Section 64.060. Turnover of Rents; Liability of Assignor

Sec. 64.060.  TURNOVER OF RENTS; LIABILITY OF ASSIGNOR.  (a)  If an assignor collects rents that the assignee is entitled to collect under this chapter, the assignor shall turn over the proceeds to the assignee not later than the 30th day after the date the assignor receives notice from the assignee under Section 64.054 or within such other period agreed by the assignor and assignee in a security instrument or other document, less any amount representing payment of expenses agreed in that security instrument or other document.
(b)  In addition to any other remedy available to the assignee under a law of this state other than this chapter, if an assignor does not turn over proceeds to the assignee as required by Subsection (a), the assignee may recover from the assignor in a civil action:
(1)  the proceeds, or an amount equal to the proceeds, that the assignor was obligated to turn over under Subsection (a); and
(2)  reasonable attorney's fees and costs incurred by the assignee to the extent provided for by an agreement between the assignor and assignee and not prohibited by a law of this state other than this chapter.
(c)  The assignee may maintain an action under Subsection (b) with or without taking action to foreclose any security interest that the assignee has in the real property.
(d)  Unless otherwise agreed, if an assignee who has a security interest in rents that is subordinate to the security interest of another assignee under Section 64.052 enforces the subordinate assignee's interest under Section 64.054 or 64.055 before the assignee with priority enforces the interests in rents of the assignee with priority, the subordinate assignee is not obligated to turn over any proceeds that the subordinate assignee collects before the subordinate assignee receives a signed notice from the assignee with priority informing the subordinate assignee that the assignee with priority is enforcing the interest in rents of the assignee with priority.  The subordinate assignee shall turn over to the assignee with priority any proceeds that the subordinate assignee collects after the subordinate assignee receives the notice from the assignee with priority that the assignee with priority is enforcing the interest in rents of the assignee with priority not later than the 30th day after the date the subordinate assignee receives the notice or as otherwise agreed between the assignee with priority and the subordinate assignee.  Any proceeds subsequently collected by the subordinate assignee shall be turned over to the assignee with priority not later than the 10th day after the date the proceeds are collected or as otherwise agreed between the assignee with priority and the subordinate assignee.
Added by Acts 2011, 82nd Leg., R.S., Ch. 636 (S.B. 889), Sec. 2, eff. June 17, 2011.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 453 (S.B. 848), Sec. 10, eff. June 14, 2013.
2023 Texas Statutes › Property Code › Title 5 - Exempt Property and Liens › Subtitle B - Liens › Chapter 64 - Assignment of Rents to Lienholder › Subchapter B. Assignment of Rents › Section 64.061. Attachment, Perfection, and Priority of Assignee's Security Interest in Proceeds

Sec. 64.061.  ATTACHMENT, PERFECTION, AND PRIORITY OF ASSIGNEE'S SECURITY INTEREST IN PROCEEDS.  (a)  An assignee's security interest in rents attaches to identifiable proceeds.
(b)  If an assignee's security interest in rents is perfected, the assignee's security interest in identifiable cash proceeds is perfected.
(c)  Except as provided by Subsection (b), the provisions of Chapter 9, Business & Commerce Code, or the comparable Uniform Commercial Code provisions of another applicable jurisdiction, determine:
(1)  whether an assignee's security interest in proceeds is perfected;
(2)  the effect of perfection or nonperfection;
(3)  the priority of an interest in proceeds; and
(4)  the law governing perfection, the effect of perfection or nonperfection, and the priority of an interest in proceeds.
(d)  For purposes of this chapter, cash proceeds are identifiable if they are maintained in a segregated deposit account or, if commingled with other funds, to the extent they can be identified by a method of tracing, including application of equitable principles, that is permitted under a law of this state other than this chapter with respect to commingled funds.
Added by Acts 2011, 82nd Leg., R.S., Ch. 636 (S.B. 889), Sec. 2, eff. June 17, 2011.
2023 Texas Statutes › Property Code › Title 5 - Exempt Property and Liens › Subtitle B - Liens › Chapter 64 - Assignment of Rents to Lienholder › Subchapter B. Assignment of Rents › Section 64.062. Priority Subject to Subordination

Sec. 64.062.  PRIORITY SUBJECT TO SUBORDINATION.  This chapter does not preclude subordination by agreement by a person entitled to priority.
Added by Acts 2011, 82nd Leg., R.S., Ch. 636 (S.B. 889), Sec. 2, eff. June 17, 2011.
2023 Texas Statutes › Property Code › Title 5 - Exempt Property and Liens › Subtitle B - Liens › Chapter 65 - Authority of Co-Owner to Encumber Residential Property › Section 65.001. Application of Chapter

Sec. 65.001.  APPLICATION OF CHAPTER.  This chapter applies only to residential property:
(1)  that has residential improvements primarily designed for not more than four families;
(2)  that is not more than 10 acres of land;
(3)  that is owned by more than one person; and
(4)  for which at least one co-owner has received a residence homestead exemption under Section 11.13, Tax Code.
Added by Acts 2011, 82nd Leg., R.S., Ch. 918 (S.B. 1368), Sec. 1, eff. June 17, 2011.
Redesignated from Property Code, Chapter 64 by Acts 2013, 83rd Leg., R.S., Ch. 161 (S.B. 1093), Sec. 22.001(39), eff. September 1, 2013.
2023 Texas Statutes › Property Code › Title 5 - Exempt Property and Liens › Subtitle B - Liens › Chapter 65 - Authority of Co-Owner to Encumber Residential Property › Section 65.0011. Application to Institutions of Higher Education

Sec. 65.0011.  APPLICATION TO INSTITUTIONS OF HIGHER EDUCATION.   This chapter does not apply to residential property for which an institution of higher education is a co-owner.
Redesignated from Property Code, Chapter 64 by Acts 2013, 83rd Leg., R.S., Ch. 161 (S.B. 1093), Sec. 22.001(39), eff. September 1, 2013.
Added by Acts 2013, 83rd Leg., R.S., Ch. 1366 (S.B. 1604), Sec. 2, eff. June 14, 2013.
2023 Texas Statutes › Property Code › Title 5 - Exempt Property and Liens › Subtitle B - Liens › Chapter 65 - Authority of Co-Owner to Encumber Residential Property › Section 65.002. Conditions for Authority to Act as Agent for Co-Owner

Sec. 65.002.  CONDITIONS FOR AUTHORITY TO ACT AS AGENT FOR CO-OWNER.  A co-owner of residential property may act in the name of and on behalf of another co-owner, whether known or unknown, as the co-owner's statutory agent and attorney-in-fact for the purposes described by Section 65.004 if:
(1)  the co-owner has occupied the property for more than five years;
(2)  the co-owner has a residence homestead exemption for the property under Section 11.13, Tax Code;
(3)  for the five years preceding the date the documents required by Section 65.003 are filed, the occupying co-owner has paid all assessed ad valorem taxes without delinquency and without contribution from the other co-owner; and
(4)  the occupying co-owner files the documents required by Section 65.003.
Added by Acts 2011, 82nd Leg., R.S., Ch. 918 (S.B. 1368), Sec. 1, eff. June 17, 2011.
Redesignated from Property Code, Chapter 64 by Acts 2013, 83rd Leg., R.S., Ch. 161 (S.B. 1093), Sec. 22.001(39), eff. September 1, 2013.
Redesignated and amended from Property Code, Section 64.002 by Acts 2013, 83rd Leg., R.S., Ch. 161 (S.B. 1093), Sec. 22.002(29), eff. September 1, 2013.
2023 Texas Statutes › Property Code › Title 5 - Exempt Property and Liens › Subtitle B - Liens › Chapter 65 - Authority of Co-Owner to Encumber Residential Property › Section 65.003. Required Documentation

Sec. 65.003.  REQUIRED DOCUMENTATION.  The occupying co-owner may establish the authority to act as an agent and attorney-in-fact for another co-owner by filing in the office of the county clerk of the county in which the real property is located:
(1)  an affidavit of the occupying co-owner affirming the facts described by Sections 65.002(1)-(3);
(2)  the affidavits of two additional affiants personally familiar with the co-owner's occupancy of the real property corroborating the occupancy during the preceding five years; and
(3)  a certificate of the tax assessor-collector for the county in which the real property is located affirming that the co-owner has paid all taxes assessed against the real property for the preceding five years without delinquency.
Added by Acts 2011, 82nd Leg., R.S., Ch. 918 (S.B. 1368), Sec. 1, eff. June 17, 2011.
Redesignated from Property Code, Chapter 64 by Acts 2013, 83rd Leg., R.S., Ch. 161 (S.B. 1093), Sec. 22.001(39), eff. September 1, 2013.
Redesignated and amended from Property Code, Section 64.003 by Acts 2013, 83rd Leg., R.S., Ch. 161 (S.B. 1093), Sec. 22.002(30), eff. September 1, 2013.
2023 Texas Statutes › Property Code › Title 5 - Exempt Property and Liens › Subtitle B - Liens › Chapter 65 - Authority of Co-Owner to Encumber Residential Property › Section 65.004. Scope of Authority

Sec. 65.004.  SCOPE OF AUTHORITY.  (a)  The authority of the occupying co-owner to act as an agent and attorney-in-fact is limited to the authority to enter into a contract giving rise to a mechanic's and materialman's lien and to execute a deed of trust for the purpose of preserving or improving the residential property.  The occupying co-owner is the sole obligor of the debt incurred under the contract and secured by the deed of trust.
(b)  A lien that arises under a contract entered into by an occupying co-owner under this section is not subject to repudiation or disaffirmance by another co-owner.
Added by Acts 2011, 82nd Leg., R.S., Ch. 918 (S.B. 1368), Sec. 1, eff. June 17, 2011.
Redesignated from Property Code, Chapter 64 by Acts 2013, 83rd Leg., R.S., Ch. 161 (S.B. 1093), Sec. 22.001(39), eff. September 1, 2013.
2023 Texas Statutes › Property Code › Title 5 - Exempt Property and Liens › Subtitle B - Liens › Chapter 66 - Sale of Property Subject to Oil or Gas Lease › Section 66.001. Sale of Property Subject to Oil or Gas Lease

Sec. 66.001.  SALE OF PROPERTY SUBJECT TO OIL OR GAS LEASE.  (a)  In this section:
(1)  "Mortgagee," "mortgagor," and "security instrument" have the meanings assigned by Section 51.0001.
(2)  "Oil or gas lease" means an instrument conveying a fee simple determinable interest in a mineral estate covering oil, gas, or other hydrocarbons or a recorded memorandum of such an instrument.
(3)  "Real property" means an estate covering the mineral interest in hydrocarbons or the mineral interest in hydrocarbons together with the surface overlying such mineral interest.  The term does not include a surface interest or other interest that excludes a mineral interest in hydrocarbons.
(b)  Notwithstanding any other law, an oil or gas lease covering real property subject to a security instrument that has been foreclosed remains in effect after the foreclosure sale if the oil or gas lease has not terminated or expired on its own terms and was executed and recorded in the real property records of the county before the foreclosure sale.  An interest of the mortgagor or the mortgagor's assigns in the oil or gas lease, including a right to receive royalties or other payments that become due and payable after the date of the foreclosure, passes to the purchaser of the foreclosed property to the extent that the security instrument under which the real property was foreclosed had priority over the interest in the oil or gas lease of the mortgagor or the mortgagor's assigns.
(c)  Notwithstanding Subsection (b), if real property that includes the mineral interest in hydrocarbons together with the surface overlying such mineral interest is subject to both an oil or gas lease and a security instrument and the security interest is foreclosed, the foreclosure sale terminates and extinguishes any right granted under the oil or gas lease for the lessee to use the surface of the real property to the extent that the security instrument under which the real property was foreclosed had priority over the rights of the lessee under the oil or gas lease.
(d)  An agreement, including a subordination agreement, between a lessee of an oil or gas lease and a mortgagee of real property or the lessee of an oil or gas lease and the purchaser of foreclosed real property controls over any conflicting provision of this section.  An agreement between a mortgagor and mortgagee may not modify the application of this section unless the affected lessee agrees to the modification.
(e)  This section does not apply to a security instrument that does not attach to a mineral interest in hydrocarbons in the mortgaged real property.
Added by Acts 2015, 84th Leg., R.S., Ch. 461 (H.B. 2207), Sec. 1, eff. January 1, 2016.
2023 Texas Statutes › Property Code › Title 5 - Exempt Property and Liens › Subtitle B - Liens › Chapter 67 - Oil and Gas Liens › Section 67.002. Oil and Gas Lien

Sec. 67.002.  OIL AND GAS LIEN.  (a)  To secure the obligations of a first purchaser to pay the sales price, each interest owner has an oil and gas lien to the extent of the interest owner's interest in oil and gas rights.  The oil and gas lien exists as part of and incident to the ownership of oil and gas rights.
(b)  An oil and gas lien:
(1)  exists in and attaches to all oil and gas before severance;
(2)  continues uninterrupted and without lapse in all oil and gas on and after severance; and
(3)  continues uninterrupted and without lapse in and to all proceeds from the sale of the oil or gas.
(c)  Except as provided by Subsection (d), an oil and gas lien exists until the interest owner or representative first entitled to receive the sales price has received the sales price for the oil or gas production, but the lien does not continue to attach to the production after the production is sold by the first purchaser, unless the first subsequent purchaser:
(1)  is an affiliate of the first purchaser; or
(2)  has actual knowledge, not constructive notice or inquiry notice, that the first purchaser has not paid the interest owner or representative first entitled to receive the sales price.
(d)  As between an interest owner and a representative of an interest owner or any person claiming adversely to the interest owner or representative, the interest owner's oil and gas lien continues uninterrupted and without lapse in proceeds in the possession or control of a representative until the interest owner on whose behalf the representative acts receives the proceeds in full.
(e)  Except as provided by Subsection (f), a first purchaser takes free of an oil and gas lien if the first purchaser:
(1)  in good faith, paid the sales price for the oil or gas to an interest owner or representative otherwise apparently entitled to receive the sales price; and
(2)  is without actual knowledge that the interest owner or representative is not entitled to receive the sales price paid.
(f)  Notwithstanding Subsection (e), the oil and gas lien continues uninterrupted in the proceeds paid to or otherwise due the interest owner or representative.
Added by Acts 2021, 87th Leg., R.S., Ch. 284 (H.B. 3794), Sec. 4, eff. September 1, 2021.
2023 Texas Statutes › Property Code › Title 5 - Exempt Property and Liens › Subtitle B - Liens › Chapter 67 - Oil and Gas Liens › Section 67.003. Transfer of Oil and Gas Rights

Sec. 67.003.  TRANSFER OF OIL AND GAS RIGHTS.  (a)  The validity of an oil and gas lien is not dependent on possession of the oil or gas by an interest owner or representative.  An oil and gas lien is not void or expired because of a change or transfer of the actual or constructive possession of or title to the oil or gas from the interest owner or representative to a first purchaser or other purchaser.
(b)  On the conveyance or transfer of any oil and gas rights by a transferor interest owner, the oil and gas lien vested in the transferor interest owner immediately before the conveyance or transfer remains with the transferor interest owner to the extent of any oil and gas rights retained by the transferor interest owner.
(c)  On the conveyance or transfer of any oil and gas rights by a transferor interest owner, the oil and gas lien vested in the transferor interest owner immediately before the conveyance or transfer is transferred to and attaches automatically to the oil and gas rights acquired by the transferee interest owner uninterrupted and without lapse and as part of and incident to the oil and gas rights that are conveyed or transferred.
Added by Acts 2021, 87th Leg., R.S., Ch. 284 (H.B. 3794), Sec. 4, eff. September 1, 2021.
2023 Texas Statutes › Property Code › Title 5 - Exempt Property and Liens › Subtitle B - Liens › Chapter 67 - Oil and Gas Liens › Section 67.004. Automatic Perfection of Lien

Sec. 67.004.  AUTOMATIC PERFECTION OF LIEN.  An oil and gas lien of an interest owner is perfected automatically without the need to file a financing statement or any other type of documentation.
Added by Acts 2021, 87th Leg., R.S., Ch. 284 (H.B. 3794), Sec. 4, eff. September 1, 2021.
2023 Texas Statutes › Property Code › Title 5 - Exempt Property and Liens › Subtitle B - Liens › Chapter 67 - Oil and Gas Liens › Section 67.005. Commingling

Sec. 67.005.  COMMINGLING.  (a)  If oil or gas in which there exists more than one oil and gas lien is commingled with other oil or gas in a manner that the identity of the specific oil or gas is lost, the oil and gas lien:
(1)  continues without interruption into and attaches to any resulting commingled product; and
(2)  is perfected automatically on the date of the oil and gas lien's original perfection but only for the volume of the commingled product that is equal to the volume of product to which the oil and gas lien originally attached.
(b)  If commingling described by Subsection (a) occurs, the oil and gas lien in the commingled product has priority over any security interest or other lien that is not an oil and gas lien or permitted lien, regardless of whether the security interest or other lien has been properly perfected.
(c)  If more than one oil and gas lien attaches to the commingled product, the oil and gas liens rank equally in the proportion that the respective sales prices secured by each oil and gas lien bears as a percentage of the total of the sales prices secured by all oil and gas liens applicable to the production at the time the production was commingled.
(d)  This section is intended to recognize the continuation of oil and gas lien rights of an interest owner in the commingled product stream only as to a volume of oil or gas proportionate to the volume of oil or gas that originated from the interest owner, with that volume of the commingled product being considered to have maintained a distinct identity as being available for sale or transportation under the specific contractual arrangements applicable to the production at the time the oil or gas entered the commingled product stream.
Added by Acts 2021, 87th Leg., R.S., Ch. 284 (H.B. 3794), Sec. 4, eff. September 1, 2021.
2023 Texas Statutes › Property Code › Title 5 - Exempt Property and Liens › Subtitle B - Liens › Chapter 67 - Oil and Gas Liens › Section 67.006. Rights of Purchasers

Sec. 67.006.  RIGHTS OF PURCHASERS.  (a)  Except as provided by Subsection (b), a purchaser takes free of any oil and gas lien otherwise applicable to the oil or gas purchased if the purchaser:
(1)  is a buyer in the ordinary course of the first purchaser's business under Chapter 9, Business & Commerce Code; or
(2)  has paid all of the consideration due to the first purchaser, including by exchange of oil or gas, net-out, or set-off, under all applicable enforceable contracts in existence at the time of the payment.
(b)  The oil and gas lien continues uninterrupted in the proceeds paid to or otherwise due the first purchaser.
(c)  Except as provided by this section, an oil and gas lien has priority over the rights of any purchaser.
Added by Acts 2021, 87th Leg., R.S., Ch. 284 (H.B. 3794), Sec. 4, eff. September 1, 2021.
2023 Texas Statutes › Property Code › Title 5 - Exempt Property and Liens › Subtitle B - Liens › Chapter 67 - Oil and Gas Liens › Section 67.007. Priority in Relation to Other Liens or Security Interests

Sec. 67.007.  PRIORITY IN RELATION TO OTHER LIENS OR SECURITY INTERESTS.  Except for a permitted lien, an oil and gas lien takes priority over any other lien, whether arising by contract, law, equity, or otherwise, or any security interest.
Added by Acts 2021, 87th Leg., R.S., Ch. 284 (H.B. 3794), Sec. 4, eff. September 1, 2021.
2023 Texas Statutes › Property Code › Title 5 - Exempt Property and Liens › Subtitle B - Liens › Chapter 67 - Oil and Gas Liens › Section 67.008. Title Not Affected

Sec. 67.008.  TITLE NOT AFFECTED.  This chapter does not affect:
(1)  when legal title to oil and gas may pass by agreement or operation of law subject to an oil and gas lien;
(2)  the right of a first purchaser to take or receive oil and gas under the terms of a division order, provided that the division order does not modify, waive, or abrogate in any respect the rights of an interest owner under this chapter; or
(3)  subject to Section 67.009, the right of a first purchaser to take or receive oil and gas under an agreement to sell.
Added by Acts 2021, 87th Leg., R.S., Ch. 284 (H.B. 3794), Sec. 4, eff. September 1, 2021.
2023 Texas Statutes › Property Code › Title 5 - Exempt Property and Liens › Subtitle B - Liens › Chapter 67 - Oil and Gas Liens › Section 67.009. Waiver

Sec. 67.009.  WAIVER.  (a)  Except as provided by Subsection (b), an interest owner may not be required, as a condition or term of an agreement to sell or otherwise, to:
(1)  waive or release any oil and gas lien or a right under this chapter, other than on payment in full of the sales price; or
(2)  agree to a provision that would apply the law of another state to a right granted under this chapter.
(b)  An interest owner, or representative acting on behalf of an interest owner, may waive or release any oil and gas lien or any rights under this chapter or agree to apply the law of another state to the interest owner's oil and gas rights granted under this chapter, if the first purchaser:
(1)  posts a letter of credit in a form and amount satisfactory to the interest owner; or
(2)  agrees to prepay or escrow the sales price under an agreement to sell with the interest owner and performs all of the first purchaser's obligations under the agreement.
(c)  Unless waived or released under Subsection (b), a condition or term described by Subsection (a) is void.
Added by Acts 2021, 87th Leg., R.S., Ch. 284 (H.B. 3794), Sec. 4, eff. September 1, 2021.
2023 Texas Statutes › Property Code › Title 5 - Exempt Property and Liens › Subtitle B - Liens › Chapter 67 - Oil and Gas Liens › Section 67.010. Limitation on Filing Action to Enforce Lien

Sec. 67.010.  LIMITATION ON FILING ACTION TO ENFORCE LIEN.  (a)  Except as provided by Subsection (b), an action to enforce the interest owner's oil and gas lien must be brought not later than the first anniversary of the last day of the month after the date proceeds from the sale of oil or gas subject to the lien are required by law or contract to be paid to the interest owner, but only as to the oil or gas sold during that month.
(b)  The commencement of a proceeding by or against any person claiming an interest in any property subject to the oil and gas lien seeking to adjudicate the person as bankrupt or insolvent, or seeking relief of the person's debts under any law relating to bankruptcy, insolvency, reorganization, or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, or other similar official for the person or for any substantial part of the person's property shall toll the one-year period prescribed by Subsection (a) in which to bring an action to enforce the oil and gas lien for an additional period of 90 days after the earlier of the date:
(1)  the proceeding is dismissed or otherwise finally concluded; or
(2)  final relief is obtained from the appropriate tribunal authorizing the commencement of the action to enforce the oil and gas lien.
Added by Acts 2021, 87th Leg., R.S., Ch. 284 (H.B. 3794), Sec. 4, eff. September 1, 2021.
2023 Texas Statutes › Property Code › Title 5 - Exempt Property and Liens › Subtitle B - Liens › Chapter 67 - Oil and Gas Liens › Section 67.011. Venue; Jurisdiction

Sec. 67.011.  VENUE; JURISDICTION. (a) An action to enforce the interest owner's oil and gas lien may be brought in a district court or other court of competent jurisdiction in the county in which:
(1)  the oil and gas well from which the oil or gas is produced is located;
(2)  the unpaid for oil or gas is located; or
(3)  the proceeds for the oil or gas are located.
(b)  An interest owner may join multiple proceedings to enforce oil and gas liens involving more than one oil and gas well in one county in the same action.
(c)  In cases involving oil or gas from the same oil and gas well or wells:
(1)  any persons claiming oil and gas liens in the oil or gas may join in the same action; or
(2)  a district court may consolidate separate actions related to the oil or gas.
Added by Acts 2021, 87th Leg., R.S., Ch. 284 (H.B. 3794), Sec. 4, eff. September 1, 2021.
2023 Texas Statutes › Property Code › Title 5 - Exempt Property and Liens › Subtitle B - Liens › Chapter 67 - Oil and Gas Liens › Section 67.012. Payment Disputes

Sec. 67.012.  PAYMENT DISPUTES.  In the case of a payment dispute between an operator and another interest owner, a good-faith tender of money in satisfaction of a debt or security interest by one person operates as a tender of the money to both if tender is made:
(1)  to the person who the operator and other interest owner jointly directed the first purchaser in writing to pay;
(2)  to a person who otherwise shows the person is entitled to the money; or
(3)  to a court of competent jurisdiction in the event of litigation or bankruptcy.
Added by Acts 2021, 87th Leg., R.S., Ch. 284 (H.B. 3794), Sec. 4, eff. September 1, 2021.
2023 Texas Statutes › Property Code › Title 5 - Exempt Property and Liens › Subtitle B - Liens › Chapter 67 - Oil and Gas Liens › Section 67.013. Costs; Attorney's Fees

Sec. 67.013.  COSTS; ATTORNEY'S FEES.  The prevailing party in an action brought under this chapter is entitled to court costs and reasonable attorney's fees.
Added by Acts 2021, 87th Leg., R.S., Ch. 284 (H.B. 3794), Sec. 4, eff. September 1, 2021.
2023 Texas Statutes › Property Code › Title 5 - Exempt Property and Liens › Subtitle B - Liens › Chapter 67 - Oil and Gas Liens › Section 67.014. Certain Rights of Operator Not Impaired

Sec. 67.014.  CERTAIN RIGHTS OF OPERATOR NOT IMPAIRED.  This chapter does not impair an operator's right to be paid, set-off, or withhold funds from another interest owner as security for or in satisfaction of a debt or security interest.
Added by Acts 2021, 87th Leg., R.S., Ch. 284 (H.B. 3794), Sec. 4, eff. September 1, 2021.
2023 Texas Statutes › Property Code › Title 5 - Exempt Property and Liens › Subtitle B - Liens › Chapter 67 - Oil and Gas Liens › Section 67.015. Interest Owner Rights Cumulative

Sec. 67.015.  INTEREST OWNER RIGHTS CUMULATIVE.  The provisions of this chapter and the rights granted under this chapter are intended to be cumulative with all other rights an interest owner may otherwise have at law or in equity, including the right of any interest owner to maintain a personal action to recover the debt against any person liable for payment of the sales price of the oil or gas.
Added by Acts 2021, 87th Leg., R.S., Ch. 284 (H.B. 3794), Sec. 4, eff. September 1, 2021.