The bill, H.B. No. 576, amends the Texas Property Code to broaden the definition of individuals and entities authorized to exercise the power of sale under a contract lien on real property. Specifically, it revises the definitions of "substitute trustee" and "trustee" to include a wider range of legal entities beyond just individuals. The new language specifies that both terms can refer to an individual, corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, or other legal entity, replacing the previous terminology that limited these roles to "a person" or "persons."

This change aims to provide greater flexibility in the appointment of trustees and substitute trustees, potentially streamlining the process for mortgagees and servicers. The bill is set to take effect immediately upon receiving a two-thirds vote from both houses of the legislature; otherwise, it will become effective on September 1, 2025.

Statutes affected:
Introduced: Property Code 51.0001 (Property Code 51)
House Committee Report: Property Code 51.0001 (Property Code 51)