Texas Transportation Code
§ 501.076 — LIMITED POWER OF ATTORNEY
TN § 501.076Title 7. VEHICLES AND TRAFFIC · Part A. CERTIFICATES OF TITLE AND REGISTRATION OF VEHICLES · Ch. 501. CERTIFICATE OF TITLE ACT · Art. D. SALES OF MOTOR VEHICLES AND TRANSFERS OF TITLE
Statute text
View on source(a)An owner who has a contractual option to transfer ownership of a vehicle in full or partial satisfaction of the balance owed on the vehicle, as provided in Section 348.123(b)(5), Finance Code, may execute a written limited power of attorney that authorizes an agent to complete and sign for the owner, and provide to the transferee, the form to transfer the title under Section 501.071 and the odometer disclosure under Section 501.072, and the other documents necessary to transfer title.
(b)The owner may execute the limited power of attorney at the time the owner enters the contract giving the owner the option to transfer the vehicle or at any time after that date. The limited power of attorney may only be used if an owner elects to transfer the vehicle in full or partial satisfaction of the contract and may not be used by the holder of the contract as part of the holder's exercise of a remedy for a default by the owner under the contract.
(c)The person named as the agent in the limited power of attorney must meet the following requirements:
(1)the person may be a person who has been deputized to perform vehicle registration functions as authorized by rules adopted under Section 520.0071, a licensed vehicle auction company holding a wholesale general distinguishing number under Section 503.022, a person who has a permit similar to one of the foregoing that is issued by the state in which the owner is located, or another person authorized by law to execute title documents in the state in which the owner executes the documents; and
(2)the person may not be the transferee or an employee of the transferee. The person may not act as the agent of both the transferor and transferee in the transaction. For the purposes of this section, a person is not the agent of both the transferor and transferee in a transaction unless the person has the authority to sign the documents pertaining to the transfer of title on behalf of both the transferor and the transferee.
(d)If a limited power of attorney is used under Subsection (a), the holder of the contract shall accompany the power of attorney with a written statement that the vehicle was returned at the election of the owner in full or partial satisfaction of the owner's obligations under the contract and not as the result of the exercise by the holder of the contract of its remedies for default.
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Legislative history
Acts 2011, 82nd Leg., R.S., Ch. 1296 (H.B. 2357), Sec. 35, eff. January 1, 2012. Acts 2013, 83rd Leg., R.S., Ch. 1135 (H.B. 2741), Sec. 55, eff. September 1, 2013. Acts 2013, 83rd Leg., R.S., Ch. 1287 (H.B. 2202), Sec. 8, eff. September 1, 2013.