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WBK Industry News - State Regulatory Developments

Texas Enacts Provisions Regarding Power of Sale

Texas House Bill 1470 becomes effective September 1, 2017 and amends Texas Title 2, Business & Commerce Code by adding Chapter 22.  The new section applies only to a public sale of residential real property conducted under a power of sale in a security instrument.  Among other things, the new section:

  • Contains definitions relating to the foreclosure process;
  • Sets forth requirements for trustee contracts;
  • Identifies required information from the winning bidder;
  • Obligates the trustee or substitute trustee to provide the winning bidder with a receipt and deed; and
  • Establishes the responsibility of the trustee or substitute trustee relative to the maintenance of the funds received at the sale.