2025 Texas sessionsRegular and both called sessions have ended. This index covers House and Senate bills, not resolutions. Statuses come from official reports.

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2025 · Regular session · Senate bill

SB372

SB372 makes explicit that a foreclosure trustee can be a legal entity, not just an individual.

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Official caption: Relating to the persons authorized or appointed to exercise the power of sale under the terms of a contract lien on real property.

Signed by governorSource-checked explanation published

Official report lists Senate author(s): Campbell. This does not identify sponsors or amendment drafters.

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Bill explanation published · Version and amendment review scope is stated below · Individual amendment records may not be separately annotated.

Bill highlights

Selected points from the published explanation. Follow each point to its source-linked context; conditions and limits may matter.

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What does it do?

SB372 makes explicit that a foreclosure trustee can be a legal entity, not just an individual. It lists corporations, organizations, governments and their subdivisions or agencies, business trusts, estates, trusts, partnerships, associations and other legal entities in the Property Code definitions of trustee and substitute trustee. These are the parties authorized to exercise the power of sale under a mortgage, deed of trust or other real-property security instrument. Final law; Prior definitions.

This is a clarification, not a new right for anyone to foreclose on any property. A substitute trustee must still be appointed by the current mortgagee or mortgage servicer under the security instrument; a trustee must still be authorized under the instrument and act in accordance with the referenced duties provision. The bill changes only the two definitions, not the separate foreclosure notice, sale or appointment rules. Trustee duties; Appointment and sale authority; Existing notice and sale requirements.

The bill was signed and took effect May 19, 2025. It received the votes needed for immediate effect, so the alternative September 1 date printed in the bill did not apply. Official history.

What changed along the way?

Previously, the definitions used “a person” or “a person or persons.” The general Code Construction Act already includes corporations and other legal entities within “person,” unless the statute or context requires a different definition. SB372 puts an explicit list directly in the foreclosure definitions; it should not be described as the first law ever allowing a corporation to serve. General definition of person; Specific enacted definitions.

The introduced, Senate committee, engrossed, House committee and enrolled versions contain the same operative provisions. The amendment index lists no amendments, and both committees reported without amendments. The Senate passed the bill March 24 and the House May 6, 2025. All text versions; Amendment index.

For the full amendment record, open the official amendment index.

Official bill versions

Compare the published text versions in the official text index. A change is not attributed to a specific amendment here without a verified record.

Who could benefit—and who could bear the costs?

The February 17 and April 10, 2025 fiscal notes anticipate no significant state or local fiscal impact and assume costs can be absorbed with existing resources. Neither measures private foreclosure costs or predicts how often borrowers will dispute a trustee’s authority. Introduced fiscal note; Engrossed fiscal note.

Lenders, mortgage servicers, trustees and borrowers get clearer wording about who can act as trustee. That may reduce disputes over an entity’s eligibility, but it does not establish that a particular foreclosure complied with the security instrument or other applicable law. The bill adds no borrower payment, new appropriation or new penalty.

Official sources

Catalog report retrieved 2026-10-25. Check the official record for corrections or later changes.