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SB 372

Relating to the persons authorized or appointed to exercise the power of sale under the terms of a contract lien on real property.

89th Legislature (2025) Introduced by Donna Campbell and 1 co-sponsor

Texas law now authorizes additional persons to execute foreclosure sales under contract liens on real property, effective immediately upon gubernatorial signature.

Effective immediately
#financial--general(i0365) #propertyinterests--mortgages&liens(i0605) #propertyinterests--realproperty(i0595) #propertyinterests--trusts(i0008)
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Bill Summary · SB 372

Legislative bill overview

SB 372 modifies Texas property law regarding who can exercise a power of sale under contract liens on real property. The bill expands or clarifies the persons authorized to conduct foreclosure sales when a property owner defaults on a contract lien agreement, potentially including additional parties beyond traditional lienholder representatives.

Why is this important

Contract liens are commonly used in real estate transactions, particularly in owner-financed deals and commercial property arrangements. Changes to who can execute foreclosure sales affect property owners' rights during default situations, lenders' ability to recover assets, and the efficiency of the foreclosure process in Texas.

Potential points of contention

  • Borrower protections: Expanding who can conduct sales may reduce oversight and borrower protections if less-regulated parties handle foreclosures
  • Clarity and conflicts: Ambiguity about which authorized persons have priority or responsibility could create disputes or inconsistent enforcement across transactions
  • Notice and procedural requirements: The bill's impact on required notice to property owners and due process protections during foreclosure proceedings is unclear from the title alone

Compiled from official sources — confirm details with the bill’s official record.

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