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

S.B. No. 372

AN ACT

relating to the persons authorized or appointed to exercise the

power of sale under the terms of a contract lien on real property.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Sections 51.0001(7) and (8), Property Code, are

amended to read as follows:

(7) "Substitute trustee" means an individual,

corporation, organization, government or governmental subdivision

or agency, business trust, estate, trust, partnership,

association, or other legal entity [a person] appointed by the

current mortgagee or mortgage servicer under the terms of the

security instrument to exercise the power of sale.

(8) "Trustee" means an individual, corporation,

organization, government or governmental subdivision or agency,

business trust, estate, trust, partnership, association, or other

legal entity [a person or persons] authorized to exercise the power

of sale under the terms of a security instrument in accordance with

Section 51.0074.

SECTION 2. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.

______________________________
______________________________

President of the Senate
Speaker of the House

I hereby certify that S.B. No. 372 passed the Senate on

March 24, 2025, by the following vote: Yeas 30, Nays 0.

______________________________

Secretary of the Senate

I hereby certify that S.B. No. 372 passed the House on

May 6, 2025, by the following vote: Yeas 138, Nays 6, one present

not voting.

______________________________

Chief Clerk of the House

Approved:

______________________________

Date

______________________________

Governor