Section 351.0021 - Authorized Charges(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.Tex. Fin. Code § 351.0021
Amended by Acts 2013, 83rd Leg. - Regular Session, ch. 206,Sec. 1, eff. 5/29/2013.Added by Acts 2011, 82nd Leg., R.S., Ch. 622, Sec. 3, eff. 9/1/2011.