Legal Question in Real Estate Law in Texas

Hello,

I am trying to start my own business "recovering" tax sale (etc) overages (nationally, not just in TX). I will locate the funds and then return the funds, minus my fee, to the owner who was not aware of being owed by the county.

Overages: if at tax auction (Or forclosure....auction) the final price is more than taxes (mortgage)owed, the difference is supposed to go back to the original owner, but the county usually doesn't try very hard to locate the prev. owner, because after a certain period of time, the county gets to keep the funds.

I do know that I will need a limited power of attorney to do this for the client and also an assignment agreement, but what form or agreement do I need in order to protect myself...something that needs to be signed before anything else without disclosing just yet what funds I am talking about so the owner doesn't go get refund themselves and if they do, I will still get a certain percentage. What type of form / legally binding letter can I use?

This is pretty much what keeps me from starting...and also, do I need a business license to do this.

Thank you so much in advance!

Bridget


Asked on 3/24/11, 9:23 am

1 Answer from Attorneys
Joseph A. McDermott, III Attorney at Law

Be aware that Texas law limits the fee for a service such as that you describe to 10%. You'd need to check the law in other jurisdictions as well. Legal fee to draw form contracts for this enterprise would likely be $1,000-$2,500.

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Answered on 3/24/11, 9:33 am


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