Tex. Prop. Code Section 5.066
Equity Protection; Sale of Property


(a)

If a purchaser defaults after the purchaser has paid 40 percent or more of the amount due or the equivalent of 48 monthly payments under the executory contract or, regardless of the amount the purchaser has paid, the executory contract has been recorded, the seller is granted the power to sell, through a trustee designated by the seller, the purchaser’s interest in the property as provided by this section. The seller may not enforce the remedy of rescission or of forfeiture and acceleration after the contract has been recorded.

(b)

The seller shall notify a purchaser of a default under the contract and allow the purchaser at least 60 days after the date notice is given to cure the default. The notice must be provided as prescribed by Section 5.063 (Notice) except that the notice must substitute the following statement:

(c)

The trustee or a substitute trustee designated by the seller must post, file, and serve a notice of sale and the county clerk shall record and maintain the notice of sale as prescribed by Section 51.002 (Sale of Real Property Under Contract Lien). A notice of sale is not valid unless it is given after the period to cure has expired.

(d)

The trustee or a substitute trustee designated by the seller must conduct the sale as prescribed by Section 51.002 (Sale of Real Property Under Contract Lien). The seller must:

(1)

convey to a purchaser at a sale conducted under this section fee simple title to the real property; and

(2)

warrant that the property is free from any encumbrance.

(e)

The remaining balance of the amount due under the executory contract is the debt for purposes of a sale under this section. If the proceeds of the sale exceed the debt amount, the seller shall disburse the excess funds to the purchaser under the executory contract. If the proceeds of the sale are insufficient to extinguish the debt amount, the seller’s right to recover the resulting deficiency is subject to Sections 51.003 (Deficiency Judgment), 51.004 (Judicial Foreclosure--deficiency), and 51.005 (Judicial or Nonjudicial Foreclosure After Judgment Against Guarantor--deficiency) unless a provision of the executory contract releases the purchaser under the contract from liability.

(f)

The affidavit of a person knowledgeable of the facts that states that the notice was given and the sale was conducted as provided by this section is prima facie evidence of those facts. A purchaser for value who relies on an affidavit under this subsection acquires title to the property free and clear of the executory contract.

(g)

If a purchaser defaults before the purchaser has paid 40 percent of the amount due or the equivalent of 48 monthly payments under the executory contract, the seller may enforce the remedy of rescission or of forfeiture and acceleration of the indebtedness if the seller complies with the notice requirements of Sections 5.063 (Notice) and 5.064 (Seller’s Remedies on Default).
Added by Acts 1995, 74th Leg., ch. 994, Sec. 3, eff. Sept. 1, 1995. Renumbered from Property Code Sec. 5.101 and amended by Acts 2001, 77th Leg., ch. 693, Sec. 1, eff. Sept. 1, 2001.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 996 (H.B. 311), Sec. 3, eff. September 1, 2015.

Source: Section 5.066 — Equity Protection; Sale of Property, https://statutes.­capitol.­texas.­gov/Docs/PR/htm/PR.­5.­htm#5.­066 (accessed Mar. 23, 2024).

5.001
Fee Simple
5.002
Failing as a Conveyance
5.003
Partial Conveyance
5.004
Conveyance by Authorized Officer
5.005
Aliens
5.006
Attorney’s Fees in Breach of Restrictive Covenant Action
5.007
Vendor and Purchaser Risk Act
5.008
Seller’s Disclosure of Property Condition
5.009
Duties of Life Tenant
5.010
Notice of Additional Tax Liability
5.011
Seller’s Disclosure Regarding Potential Annexation
5.012
Notice of Obligations Related to Membership in Property Owners’ Association
5.013
Seller’s Disclosure of Location of Conditions Under Surface of Unimproved Real Property
5.014
Notice of Obligations Related to Public Improvement District
5.015
Prohibited Fees
5.016
Conveyance of Residential Property Encumbered by Lien
5.019
Notice of Water Level Fluctuations
5.020
Easements Restricting Possession of Firearms or Alcoholic Beverages Prohibited
5.021
Instrument of Conveyance
5.022
Form
5.023
Implied Covenants
5.024
Encumbrances
5.025
Wood Shingle Roof
5.026
Discriminatory Provisions
5.027
Correction Instruments: Generally
5.028
Correction Instruments: Nonmaterial Corrections
5.029
Correction Instruments: Material Corrections
5.030
Correction Instrument: Effect
5.041
Future Estates
5.042
Abolition of Common-law Rules
5.043
Reformation of Interests Violating Rule Against Perpetuities
5.061
Definition
5.062
Applicability
5.063
Notice
5.064
Seller’s Remedies on Default
5.065
Right to Cure Default
5.066
Equity Protection
5.067
Placement of Lien for Utility Service
5.068
Foreign Language Requirement
5.069
Seller’s Disclosure of Property Condition
5.070
Seller’s Disclosure of Tax Payments and Insurance Coverage
5.071
Seller’s Disclosure of Financing Terms
5.072
Oral Agreements Prohibited
5.073
Contract Terms, Certain Waivers Prohibited
5.074
Purchaser’s Right to Cancel Contract Without Cause
5.076
Recording Requirements
5.077
Annual Accounting Statement
5.078
Disposition of Insurance Proceeds
5.079
Title Transfer
5.080
Liability for Disclosures
5.081
Right to Convert Contract
5.082
Request for Balance and Trustee
5.083
Right to Cancel Contract for Improper Platting
5.084
Right to Deduct
5.085
Fee Simple Title Required
5.087
Additional Provisions: Certain Counties
5.0141
Notice Required Before Contract Execution
5.0142
Purchaser Signature Required
5.0143
Recording of Notice at Closing
5.0144
Reliance on Filed Service Plan
5.0145
Suits for Damages
5.151
Disclosure in Offer to Purchase Mineral Interest
5.152
Certain Purchases of Mineral or Royalty Interests Void
5.201
Definitions
5.202
Certain Private Transfer Fee Obligations Void
5.203
Notice Requirements for Continuation of Existing Private Transfer Fee Obligations
5.204
Additional Compliance Requirement: Timely Acceptance of Fees Paid Under Existing Private Transfer Fee Obligations
5.0205
Equitable Interest Disclosure
5.205
Disclosure of Existing Transfer Fee Obligation Required in Contract for Sale
5.206
Waiver Void
5.207
Injunctive or Declaratory Relief
5.0261
Removal of Discriminatory Provision from Recorded Conveyance Instrument
5.0621
Construction with Other Law
5.0622
Additional Applicability: Certain Counties

Accessed:
Mar. 23, 2024

§ 5.066’s source at texas​.gov