Under Texas law, a property owner receives a notice of a tax lien foreclosure on his homestead for unpaid property taxes. He argues that his homestead is protected from forced sale under Texas Constitution Article XVI. Is his argument valid?
Correct Answer
D) No, because property tax liens are one of the constitutional exceptions that allow forced sale of a Texas homestead
Under Texas Constitution Article XVI, Section 50(a)(2), a tax lien for unpaid property taxes is one of the enumerated exceptions to homestead protection. The taxing authority can foreclose on the homestead to collect delinquent property taxes regardless of homestead protections.
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Related Concepts
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
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