Understanding Your Rights as a Property Owner
Purchasing your first home is always a major accomplishment worth celebrating. But owning a home comes with a lot of less-than-fun requirements including maintenance, repairs, and of course, property taxes. Property taxes are an even bigger commitment in Texas where property owners pay the seventh-highest property tax rate in the country. Paying them can be overwhelming, but as a property owner, you do have rights. If you are a new homeowner or already own a home, read on to know your rights as a property owner so you can be prepared for the responsibilities of homeownership.
The Foundation of Property Rights in Texas
As a property owner in Texas, you do have rights to protect yourself. The Texas Residential Property Owners Protection Act is a state law that affords you key ownership rights:
- Right to occupy, and use the property.
- Right to transfer, lease, or sell.
- Right to protest property taxes.
Texas also has strong protections around homestead rights. In Texas, every family and every single adult person is entitled to a homestead exempt from seizure passed on the claims of creditors. In simple terms:
Texas law protects your primary home from being taken away by most creditors—even if you owe money. As long as the home is your main place of residence (your “homestead”), it’s mostly off-limits when it comes to debt collection.
However, this protection doesn’t apply to certain types of debt, like:
- Property taxes
- Mortgage loans
- Home improvement loans
So while your home is well-protected in many situations, falling behind on property taxes can still put it at risk. If you fall behind on property taxes, your county can foreclose on your home, legally. Learn more about how to handle the foreclosure process here.
What Happens If You Fall Behind On Property Taxes
While being a homeowner offers you many protections, a waiver on your property taxes if you can’t afford them, isn’t one. Property taxes in Texas are due on January 31st and if they remain unpaid on February 1st, you are in default. How long it takes your delinquency to progress to foreclosure varies based on county and individual situation the general process is outlined like this:
- Default on February 1st.
- Penalties accrue monthly.
- The biggest penalty is on July 1st, as high as 47% in penalties, fee, and interest.
- A lien is placed on your home by the county.
- Foreclosure proceedings begin.
If you’ve fallen behind on your property taxes, don’t panic, owing taxes doesn’t automatically mean losing your home. One of Texas’ property owner rights is the right to redemption: the right to pay off your debt to keep your property. This means if you are delinquent on your property taxes, paying them off as early as possible is crucial.
The Right To Seek Help
If you can’t afford to pay your property taxes, you have the right to seek help. You have many options to eliminate your debt but if you don’t have the financial means to pay them, property tax loans may be a solution.
Property tax loan companies, like Johnson & Starr, are licensed Texas Lenders that help property owners keep their homes, without breaking their budget. Most property tax loans offer low interest rates, aren’t based on credit score, and are payments that you can afford. If you take out a property tax loan, the lender directly pays off your delinquent tax debt, ending the foreclosure process immediately.
Johnson & Starr Can Help
If you’ve fallen behind on your property taxes, don’t wait, contact us. We offer friendly customer service and customized solutions that help you stay in your home.