Texas Codes

Tex. Prop. Code § 5.066 (2026)

Equity Protection; Sale Of Property

✓ current as of May 2026

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Sec. 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 except that the notice must substitute the following statement:

NOTICE

YOU ARE NOT COMPLYING WITH THE TERMS OF THE CONTRACT TO BUY YOUR PROPERTY. UNLESS YOU TAKE THE ACTION SPECIFIED IN THIS NOTICE BY (date) A TRUSTEE DESIGNATED BY THE SELLER HAS THE RIGHT TO SELL YOUR PROPERTY AT A PUBLIC AUCTION.

(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. 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. 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, 51.004, and 51.005 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 and 5.064.

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.

Notes of Decisions

Cited in 8 cases (1 in the last 5 years), 2005–2024 · leading case: Flores v. Millennium Interests, Ltd., 185 S.W.3d 427 (Tex. 2005).

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Flores v. Millennium Interests, Ltd., 185 S.W.3d 427 (Tex. 2005). · cites it 2× “3, infra. [9] This provision was amended in 2003 to define "exemplary damages" as "any damages awarded as a penalty or by way of punishment but not for compensatory purposes.”

Nguyen v. Yovan, 317 S.W.3d 261 (Tex. App. 2009). “See Tex. Prop.Code Ann. § 5.066 (Vernon 2004).”

In re Garza, 462 B.R. 638 (Bankr. N.D. Tex. 2011). “See Tex. Prop.Code Ann. § 5.066 (West 2001). .”

Carol Warren v. Donald Hallett (Tex. App. 2024). · cites it 2× “See TEX. PROP. CODE §5.066 (“Equity Protection; Sale of Property”).”

Dennis K. White v. Luis Calvache & Wife, Norma Calvache, Ocwen Loan Servicing, LLC, Horne & Assocs., P.C., & L. Scott Horne, as Substitute Tr. (Tex. App. 2018). “066 of the property code provides that a purchaser of real estate who has paid forty percent or more of the amount due, or the equivalent of forty-eight monthly payments, under an executory contract must be given sixty days after notice to cure the default.”

Anna Marie Nguyen v. Alex Yovan & Philip Yovan (Tex. App. 2009). “See Tex. Prop. Code Ann. § 5.066 (Vernon 2004).”

Bobbie White v. Josefino Bencomo III (Tex. App. 2015). “Appellant brought this action to quiet title on April 15, 2014 asking the court to set aside Appellee’s foreclosure of the property on the flawed theory that Appellee failed to comply with Tex. Prop. Code § 5.066 Appellant further sought statutory damages arising from Appellee’s…”

Michael Glenn Mott v. Willie Edward Kellar A/K/A W. E. Kellar Joseph G. Tuck, Individually & Tuck & Kizer, PLLC, a Prof'l Ltd. Liab. Co. (Tex. App. 2015). “SUMMARY OF FACTS Appellant Mott owns real property which he purchased in a contract for deed from appellee / defendant Kellar.”

— Tex. Prop. Code § 5.066(a) — 1 case

— Tex. Prop. Code § 5.066(b) — 1 case

Flores v. Millennium Interests, Ltd., 185 S.W.3d 427 (Tex. 2005). “3, infra. [9] This provision was amended in 2003 to define "exemplary damages" as "any damages awarded as a penalty or by way of punishment but not for compensatory purposes.”

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