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TX-PACE Quiz

Test Your Knowledge

How is a PACE assessment, and its associated loan repayment liability,

transferred to a new property owner after a sale or foreclosure transaction?

A) Upon the seller giving written notice to the buyer

B) Upon the seller giving written notice to the buyer and the PACE administrator

C) Automatically under the Texas PACE Act

D) Upon either party recording a new notice of assessment in the county

real property records

E) It doesn’t transfer when there is a foreclosure because the debt is discharged

Answer found at the end of this email.



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TX-PACE Quiz

Answer

How is a PACE assessment, and its associated loan repayment liability,

transferred to a new property owner after a sale or foreclosure transaction?

A) Upon the seller giving written notice to the buyer

B) Upon the seller giving written notice to the buyer and the PACE administrator

C) Automatically under the Texas PACE Act

D) Upon either party recording a new notice of assessment in the county

real property records

E) It doesn’t transfer when there is a foreclosure because the debt is discharged

Answer: C

The Texas PACE assessment lien runs with the land and is automatically transferred to the new property owner much like an easement. No written notice or new recording is required because the new property owner receives constructive notice from its being recorded in the real property records of the county in which the property is located. Furthermore, the portion of the PACE assessment that has not yet become due is not eliminated by foreclosure of a property tax lien. Texas Local Government Code §399.014(b).

About Texas PACE Authority: Texas PACE Authority (TPA) is the nonprofit administrator of more than 100 local TX-PACE programs. TPA is on a mission to empower commercial, industrial, and multifamily property owners across Texas to make energy- and water-saving upgrades that save money, benefit the environment, and help their communities. We work with local governments, lenders, service providers, and all other stakeholders to make businesses more profitable, save natural resources, and revitalize communities across Texas. To date, our efforts have facilitated more than $625 million in new investment across Texas. www.TexasPACEAuthority.org. 

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