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HB 576

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 Matt Shaheen

HB 576 expands authorization for persons conducting contract lien foreclosure sales on Texas real property, potentially streamlining debt collection for construction creditors.

Laid on the table subject to call
#financial--general(i0365) #propertyinterests--mortgages&liens(i0605) #propertyinterests--realproperty(i0595)
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WeVote Research Nonpartisan
Bill Summary · HB 576

Legislative bill overview

HB 576 modifies Texas law governing who is legally authorized to exercise the power of sale under contract liens (mechanic's liens) on real property. The bill clarifies and potentially expands the persons or entities that can be appointed to conduct foreclosure sales when property is used to secure payment for labor, materials, or services in construction or improvement projects.

Why is this important

Contract lien foreclosures are a critical remedy for contractors, subcontractors, and suppliers who don't get paid for work on real property. Clarifying who can conduct these sales affects both creditor protections and property owner rights, with implications for construction financing, dispute resolution, and the speed of lien enforcement across Texas.

Potential points of contention

  • Scope of authorized persons: Questions about whether expanding authorized sale conductors (potentially to include non-attorneys or third-party entities) increases efficiency or creates accountability/fraud concerns
  • Due process protections: Whether current procedural safeguards for property owners are maintained if new categories of persons can exercise foreclosure powers
  • Industry impact: Construction industry groups may want broader authorization powers while property owner advocates may resist changes that weaken existing protections or notification requirements

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

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