Texas Regulations
Comprehensive guide to seller financing laws, usury limits, and disclosure requirements in Texas.
Maximum Interest Rate
10%
Business exemptions may apply
Maximum Rate
10%
Penalty Type
Forfeiture of interest
Notes
General limit is 10% but most commercial and real estate loans are exempt. Criminal usury over 45%.
Business Exemption
Business loans over $5,000 are exempt. Various lender exemptions exist.
Required Disclosures
- Seller's Disclosure Notice
- Lead-based paint disclosure (pre-1978)
- Texas Property Code Chapter 5 Subchapter D (executory contracts)
Licensing Required
No license required for seller financing own property. RMLO rules may apply.
Balloon Payment Rules
Executory contracts (contract for deed) have specific restrictions
- Texas Deceptive Trade Practices Act
- Texas Finance Code provisions
- Deed of Trust state
- Non-judicial foreclosure (posting + sale)
- No statutory redemption (except tax liens)
- Strong homestead protections
Legal Disclaimer
This information about Texas regulations is provided for educational purposes only and does not constitute legal or tax advice. Laws change frequently and vary by county and municipality. Always verify current regulations with a licensed Texas attorney before entering into any seller financing arrangement.