There is new bill in Texas being proposed. It did not pass yet, but investors need to be aware of it.
http://www.capitol.state.tx.us/tlodocs/80R/billtext/html/HB02207I.htm
Maybe I’m wrong, but it sounds like they are trying to outlaw Sub2’s, or, at the very least, get permission from all leinholders of the property before a transfer takes place (amongst other things):
“[…] the person provides the purchaser and each lienholder a written disclosure statement in at least 12-point type that:
(4) indicates whether the lienholder has consented to the transfer of the property to the purchaser.”
Fadiz - You should try to get this info circulated through the REI channels in Texas, and maybe get Bronchick, et al, involved. Thanks for the heads-up!
It is going through some of the REIAs in Texas, at least in San Antonio and I notified some investors associated with the RICH club about it. We’ll see how it goes… it is still at its early stages.
DeeInAustin hopefully has read this post too (or knows about the bill already), and is pushing it around her network. What strikes me is that this ALSO effects regular sales, from what I can descern from the text. Therefore, if I sell my personal residence (with a Deed of Trust), I will still be forced to do all this (which seems more work for agents/brokers). Again, though, I’m just basing this on how I interpret the text as I’m a novice at “legalize”.
I’d be curious to find out WHO it is that brought this to the attention of the bill’s writers. The last one (which effectively killed Lease/Options) had something to do with some group in Houston that supposedly helped/assisted poor homeowners.
BTW, I wonder if this is a “ghost” bill and the group pushing it is thinking about pushing the same legislation through the senate as well (like with the L/O bill two years ago)?
Edit: Actually after reading the bill again, the wording in the first paragraph appears to say routine transfers of property do not apply. Hmmmmm.
Yes the first paragraph states if you get a title insurance, then this law will not apply. Sounds like they are trying to prevent people from getting around judgements and liens by recording a deed outside title companies. If that is the case, then it only eliminates table top closings maybe?
We have lawyers in our REIA, I am sure some will interpret it. And this bill has not been put up for a vote. I just feel Texas is anti investors in general and after the CFD and lease option bills, bills like this would pass.
Yeah, I just wonder how many title companies will issue a policy knowing it’s a Sub2. I guess if it’s possible to do (and you can find one that does) then the law shouldn’t be that big of a deal. Lots of “if’s” there.
Thanks for the heads up.