1. (a) Required elements. A disclosure statement under Texas Tax Code, §32.06(a-4)(1) to be provided to a property owner before the execution of a tax lien transfer must contain the following required elements:

   1. (1) the property tax lender's name, principal business address, and license number;
   2. (2) a statement that the property owner currently has a lien against the owner's property for unpaid property taxes;
   3. (3) a statement that the property owner can pay the taxing unit(s) directly;
   4. (4) a statement that the property owner may authorize that the lien of the taxing unit(s) be transferred to the property tax lender;
   5. (5) a statement that unless the property owner agrees in writing, the property tax lender may not include non-delinquent taxes in the property tax loan;
   6. (6) a statement that the property tax loan may include unpaid property taxes, penalties, interest, and collection costs paid as shown on the tax receipt;
   7. (7) a statement that the property tax lender may also assess closing costs and interest not to exceed 18%;
   8. (8) a statement that the property tax loan is superior to any other preexisting lien on the property;
   9. (9) a statement that if the property is a homestead, disabled persons or persons age 65 or older are entitled to tax deferral under Texas Tax Code, §33.06;
   10. (10) a statement that there may be alternatives available to the property owner instead of the property tax loan, (e.g., entering into a payment installment agreement with the taxing unit(s), financing options through an existing mortgage lender or other private lenders, borrowing from savings or family members);
   11. (11) a statement that if the property owner does not pay, the property owner may lose the property;
   12. (12) a statement that the tax lien may be considered a default by any mortgage holder with a lien on the same property, and the only way to correct the default is to pay off the taxes and have the lien released;
   13. (13) a statement that any secured loan may be foreclosed if the loan is in default, and the cost of a foreclosure, either tax lien or mortgage, may be added to the amount owed by the property owner;
   14. (14) a statement that the property owner may contact the Office of Consumer Credit Commissioner about questions or problems, listing the OCCC's address, toll-free consumer helpline, and website, as follows: 2601 North Lamar Boulevard, Austin, Texas 78705-4207, (800) 538-1579, www.occc.state.tx.us;
   15. (15) a statement that the property owner may seek the advice of an attorney or another third party before signing a property tax loan; and
   16. (16) a statement that the property owner should ask about the terms of any loan and should read any document before signing it.
2. (b) Single page required. The disclosure statement required by §89.506(a) of this title (regarding Disclosures) must fit on one standard-size sheet of paper (8 1/2 by 11 inches). The disclosure statement must be delivered in a manner that does not minimize its significance.

3. (c) Delivery.

   1. (1) Face-to-face interview before closing. In the case of a face-to-face interview, a property tax lender must provide a disclosure statement containing all of the elements outlined by subsection (a) of this section, as prescribed by Figure: 7 TAC §89.506(a) of this title, to the property owner at the time of the interview. A property owner present at the interview may sign an acknowledgment verifying receipt of the disclosure statement at that time.

   2. (2) No face-to-face interview. If there is no face-to-face interview, a licensee must deliver a disclosure statement containing all of the elements outlined by subsection (a) of this section, as prescribed by Figure: 7 TAC §89.506(a) of this title, to the owner of the property.

      1. (A) Method of delivery. The disclosure statement may be delivered by U.S. mail, with prepaid first-class postage, or via facsimile or email if the property owner consents. Alternatively, licensees may deliver the disclosure statement by certified mail with return receipt requested, by using a commercial delivery service with tracking abilities, or by using a courier service.
      2. (B) Timing of delivery. The disclosure statement must be delivered within three business days from receipt of the property owner's application for a property tax loan, or within three business days from the date that the property tax lender first has knowledge of the property owner's agreement to enter into a property tax loan with the property tax lender.
      3. (C) Co-applicants. If property owners who are co-applicants provide the same mailing address, one copy delivered to that address is sufficient. If different addresses are shown by co-applicants, a copy must de delivered to each of the co-applicants.

4. (d) Verification of delivery.

   1. (1) At time of face-to-face interview before closing. At the time of a face-to-face interview, verification that a disclosure was provided under this section is not required, but may be established by a signed and dated acknowledgment of the property owner obtained at the time of the interview.

   2. (2) No face-to-face interview. If there is no face-to-face interview, the property tax lender must deliver the disclosure statement to the property owner as prescribed in subsection (c)(2) of this section.

      1. (A) Verification of delivery by mail. The property tax lender must allow a reasonable period of time for delivery by mail. A period of three calendar days, not including Sundays and federal legal public holidays, constitutes a rebuttable presumption for sufficient mailing and delivery.
      2. (B) Verification of delivery via facsimile. For disclosures delivered via facsimile, a dated facsimile confirmation page indicating that the disclosure statement was successfully transmitted to the fax number provided by the property owner will constitute a rebuttable presumption for sufficient delivery.
      3. (C) Verification of delivery by certified mail with return receipt requested. For disclosures delivered by certified mail with return receipt requested, a dated return receipt indicating that the disclosure statement was successfully delivered to the property owner's address will constitute verification of delivery.
      4. (D) Verification of delivery by commercial delivery service with tracking abilities. For disclosures delivered by commercial delivery service, a dated receipt indicating that the disclosure statement was successfully delivered to the property owner's address will constitute verification of delivery.
      5. (E) Verification of delivery by courier service. For disclosures delivered by courier service, a dated receipt indicating that the disclosure statement was successfully delivered to the property owner will constitute verification of delivery.
      6. (F) Verification of delivery by email. For disclosures delivered via email, a dated reply email indicating that the disclosure statement was successfully delivered to the property owner will constitute verification of delivery. Alternatively, a property owner's affirmative consent to electronic delivery of the disclosure in accordance with §101(c) of the Electronic Signatures in Global and National Commerce Act will constitute a rebuttable presumption for sufficient delivery.

5. (e) Acknowledgment at time of closing. At the time of closing, a property tax lender may deliver an additional copy of the disclosure statement prescribed by Figure: 7 TAC §89.506(a) of this title, but is not required to do so. The property tax lender must obtain a dated acknowledgment signed by the property owner stating that the property owner received the disclosure statement prior to closing. The acknowledgment of receipt may be included on the disclosure form as provided in §89.507(a)(4) of this title (relating to Permissible Changes).

   1. (1) Married property owners. If the property is designated as a homestead, the signatures of both spouses must be obtained by the property tax lender in order to acknowledge delivery of a disclosure under this section.
   2. (2) Property owned by a legal entity. If the property is owned by a legal entity (e.g., a living trust), the signature of a person with authority to sign on behalf of the legal entity must be obtained by the property tax lender in order to acknowledge delivery of a disclosure under this section.

Source Note:The provisions of this §89.504 adopted to be effective January 3, 2008, 32 TexReg 9944; amended to be effective July 5, 2012, 37 TexReg 4874.