Texas Register, Volume 32, Number 44, Pages 7777-8060, November 2, 2007 Page: 7,808
7777-8060 p. ; 28 cm.View a full description of this periodical.
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outline the total maximum fees for closing costs that may be charged,
contracted for, or received by a property tax lender in connection with
a property tax loan, based on the total tax lien payment amount.
(A) For a total tax lien payment amount that is less than
$2,500, the maximum fee for closing costs is $1,000.
(B) For a total tax lien payment amount that is equal
to or greater than $2,500 but less than $5,000, the maximum fee for
closing costs is $1,250.
(C) For a total tax lien payment amount that is equal
to or greater than $5,000 but less than $7,500, the maximum fee for
closing costs is $1,500.
(D) For a total tax lien payment amount that is equal
to or greater than $7,500 but less than $10,000, the maximum fee for
closing costs is $1,750.
(E) For a total tax lien payment amount that is equal to
or greater than $10,000, the maximum fee for closing costs is $2,000,
or 10% of the total tax lien payment amount, whichever is greater.
(3) Reasonable closing costs. The maximum fees con-
tained in paragraph (2) of this subsection constitute "reasonable
closing costs" under Texas Tax Code, 32.06.
(d) Exception for attorney's fees required to establish correct
title. In addition to the maximum fees outlined by subsection (c)(2) of
this section, a property tax lender may include in a property tax loan
attorney's fees incurred on behalf of a property owner that are reason-
able and necessary to establish in court the correct title to the property
to which the property tax loan relates.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal author-
ity to adopt.
Filed with the Office of the Secretary of State on October 19,
2007.
TRD-200705014
Leslie L. Pettijohn
Commissioner
Office of Consumer Credit Commissioner
Earliest possible date of adoption: December 2, 2007
For further information, please call: (512) 936-7621
CHAPTER 90. CHAPTER 342, PLAIN
LANGUAGE CONTRACT PROVISIONS
SUBCHAPTER F. SECOND LIEN HOME
IMPROVEMENT CONTRACTS (SUBCHAPTER
G)
7 TAC 90.602 - 90.604
The Finance Commission of Texas (commission) proposes
amendments to 7 TAC 90.602, concerning Contract Provisions,
90.603, concerning Model Clauses, and 90.604, concerning
Permissible Changes for second lien home improvement con-
tracts.
The purpose of the amendments to these rules governing plain
language contract provisions for Chapter 342 transactions is to
implement changes required by recently passed legislation, and
to make technical corrections.House Bill 1038 (HB 1038) was passed by the 80th Texas Leg-
islature and went into effect on September 1, 2007. HB 1038
requires that two related disclosures concerning the Texas Resi-
dential Construction Commission (TRCC) be provided when cer-
tain registrations are required. The first notice, which we refer to
as the "TRCC home improvement contract notice," must be pro-
vided for certain contracts where the total cost of home improve-
ment is $10,000 or more, requiring the contract be registered un-
der the Texas Residential Construction Commission Act, Texas
Property Code, 426.003. The second notice, which we refer to
as the "TRCC builder notice," must be provided when the con-
tractor is required to be registered with the TRCC.
Both notices must contain the contractor's certificate of regis-
tration number and direct the owner to contact the TRCC for
complaints and inquiries. Revisions related to the TRCC dis-
closures are contained in 90.602(1)(N), (3)(V), and (5)(HH);
90.603(b)(14),(d)(22), and (f)(34); and the figures contained in
7 TAC 90.604(a)(12), (14), and (16). Please note that these dis-
closures are only required when the particular registrations are
required, i.e., registration of the contract or of the builder. The
rule text contained in 90.603 states that these disclosures may
be omitted if the registration(s) are not required, resulting in the
notices being inapplicable.
Another recent legislative change was also enacted during the
2007 session with the passage of House Bill 2061 (HB 2061).
HB 2061 amends the Notice of Confidentiality Rights contained
in Texas Property Code, 11.008, and now requires that this no-
tice be included on any instrument transferring an interest in real
property, whether or not any social security numbers or driver's
license numbers are contained in the instrument. Thus, the com-
mission is proposing that revisions regarding the Notice of Con-
fidentiality Rights reflecting the required nature of the notice be
added to the rule text in 90.603(d)(24), and that the notice it-
self be added to the model contract contained in Figure: 7 TAC
90.604(a)(14) for consistency purposes. This notice was re-
turned to the other affected model contracts in a previous rule
adoption. In addition, some technical corrections have been
made throughout these rules, including renumbering.
Leslie L. Pettijohn, Consumer Credit Commissioner, has deter-
mined that for the first five-year period the amendments to these
rules are in effect, there will be no fiscal implications for state or
local government as a result of administering the amendments.
For each year of the first five years the amendments to these
rules are in effect, Commissioner Pettijohn has also determined
that the public benefits anticipated as a result of the proposed
amendments will be that the commission's rules will reflect cur-
rent statutory provisions and will be more easily understood. An-
other public benefit of these rule amendments will be increased
uniformity and consistency in credit contracts.
Additional economic costs may be incurred by a person required
to comply with this proposal. These costs, however, are re-
quired by the statutory provisions enacted by HB 1038; the pro-
posed amendments merely serve to implement the statute. As
noted above, the disclosures contained in these rule amend-
ments are only required when the particular registrations are re-
quired. Thus, not all home improvement contracts will be af-
fected. For those who will be required to comply, the anticipated
costs would include the costs associated with copying a con-
tract or new forms, and costs attributable to the loss of obsolete
forms inventory. Additional copy costs are estimated to be ap-
proximately $0.30 - $0.40 per contract or new form.32 TexReg 7808 November 2, 2007 Texas Register
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Texas. Secretary of State. Texas Register, Volume 32, Number 44, Pages 7777-8060, November 2, 2007, periodical, November 2, 2007; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth97421/m1/30/: accessed July 18, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.