Tex. Finance Code § 159.002
This is the official text of Tex. Finance Code § 159.002, part of Texas’s Finance Code — regulates banks and other financial institutions.
Not legal advice. This page reproduces the official text of a government statute for reference only. Laws change, and how a statute applies depends on your specific facts. For advice about your situation, consult a licensed attorney in your state.
§ 159.002. INAPPLICABILITY OF CHAPTER.
Official statutory text
(a) In this section, "unimproved residential real estate" means residential real estate on which a dwelling has not been constructed.
(b) Notwithstanding any other provision of this chapter, this chapter does not apply to a wrap mortgage loan:
(1) made by or on behalf of an owner of unimproved residential real estate to a purchaser of that residential real estate if:
(A) the residential real estate purchased will not continue to be subject to any unreleased lien described by Section 159.001(7)(A) that secures a debt that is subject to a due-on-sale clause in connection with which the lienholder may foreclose the lien; or
(B) the residential real estate purchased will continue to be subject to an unreleased lien described by Paragraph (A) and the holder of that unreleased lien has consented to the sale of the residential real estate; or
(2) for a sale of residential real estate that is the wrap lender's homestead.
(b) Notwithstanding any other provision of this chapter, this chapter does not apply to a wrap mortgage loan:
(1) made by or on behalf of an owner of unimproved residential real estate to a purchaser of that residential real estate if:
(A) the residential real estate purchased will not continue to be subject to any unreleased lien described by Section 159.001(7)(A) that secures a debt that is subject to a due-on-sale clause in connection with which the lienholder may foreclose the lien; or
(B) the residential real estate purchased will continue to be subject to an unreleased lien described by Paragraph (A) and the holder of that unreleased lien has consented to the sale of the residential real estate; or
(2) for a sale of residential real estate that is the wrap lender's homestead.
Status: in_force · Read it on the official government site
Need a lawyer in Texas?
Find a Texas lawyer
About this page: Statute text is reproduced from official government publishers via the
Open US Law dataset
(Vaquill AI, snapshot v2026.08, CC BY 4.0). Primary legislative text like this is public domain under the government-edicts doctrine
(Georgia v. Public.Resource.Org, 2020). We link every section back to its official source so you can verify it independently.