Dance with me TARA: a shotgun wedding in Texas on Assignment of Rents

Dance with me TARA: a shotgun wedding in Texas on Assignment of Rents

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DRAFT EXAMPLE

The XYZ legislative session passed TARA – the Texas Assignment of Rents Act to help lenders using out-dated Deeds of Trust capture an Assignment of Rents.  While most commercial real estate lending forms employ these, they have been haphazard in consumer / residential lending.

Effectively, any Deed of Trust after June 2015 will marry an Assignment of Rents to the Deed of Trust, unless such assignment is specifically excluded.  Sort of a Shotgun Wedding.

TARA does not cover Home Equity Lending.  (Young scholars, tell us why?)

Further, TARA has yet to be challenged as to Constitutionality of adding additional liens against a homestead, especially in a Renewal & Extension Rider of an original purchase money lien which did not encumber the property’s rents.

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