Here is your out…
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I am attempting to verify whether Lenders/TC/SS genuinely honor Texas Administrative Code (state.tx.us) or if it is an absolute requirement HELOCs are to occur in a physical office of an attorney or TC. There are mixed responses from notaries; some affirm while others deny. Nonetheless, I am conducting thorough due diligence.
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Why are you being required to find a signing location in the first place? I generally meet at the borrowers home, work or a Starbucks.
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It’s Texas law that mandates it. Because of predatory lending practices, the state does not want its homeowners to overextend themselves financially and end up losing their homes! They say it’s in the best interest of homeowners! I get that point, what I don’t get is why that responsibility of securing a closing location outside of the borrower’s home falls solely on the shoulders of the notary. That is why notaries in the state of Texas network and connect with attorneys or title companies to use their spaces, the law states that he HELOCs and cash-out closings must take place inside of a physical attorney or title company’s office.
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Texas requires closing HELOCs at a Title Company, Law Office, or Lender’s office. Chamber of Commerce, Libraries, coffee shops are not permitted.
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It’s a requirement under Texas Laws.
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This is an absolute. You’ll record the signing location in your journal. Some lenders will contact the borrower to ask where the closing took place. If you don’t follow State Law you put your commission at risk with potential criminal consequences. Since this is a known requirement your E&O insurance won’t protect you.
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Thank you!! I just wish someone would explain why the onus is on the notary to secure the location! I’m all about following my state’s laws! I just want it to be shown to me by law that it is the notary’s sole responsibility securing locations for HELOCs.
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Texas legal codex doesn’t specify exactly who’s responsibility it is to find the appropriate signing location. This is where things get a bit confusing.
The HELOC signing locations is dictated in the Texas Constitution, Article 50, section a6. It’s also specified in the Texas Administrative Code, see the link below:
Since you’re the Notary, the State official, it’s your responsibility to find the appropriate venue. This is because you’re the last person to handle the closing it puts the burden on you. It’s not fair, but it is what it is.
If you wave the ‘legal flag’, insisting you’re not responsible for finding a location, the TC or SS will reassign and remove your name from future engagements. You have to tread lightly in this mine field.
Since TCs and Signing Services aren’t familiar with the local law firms, they’re asking you to find one. If you want to close HELOCS you’ll have to put out the effort.
Here are some of the reasons you may be having trouble finding a location. Title companies and lenders aren’t keen on offering courtesy accommodations for loans that aren’t theirs. A few law offices and been sued for loan closing that turned sour. This means law offices are reluctant to provide accommodations. BTW none of the suits have stood up as the Notary was ‘renting’ the conference room. It’s the hassle they want to avoid.
I’m not certain where in Texas you’re located, which can make my advice advice on finding a local law firm moot. Your best bet is to locate a new law office in your area that may offer accommodations. You may need to find several law offices in your region. As you know Texas is big, meaning your signers may not want to drive from Bulverde to Austin, or Luling to New Braunfels to close. I’ve got about 20 law firms in my area that I can use. If you encounter a signer that doesn’t want to drive closer to you, your only option is to turn down the engagement.
I’m no longer handling loan closing, with the exceptions of tax loans, due to the slow down in the Real Estate market. I’m now focused on my other business (Tax Preparation) offering notary engagements as a value added service.
My Tax business has me working with a few law firms, about 20, who are handling estate matters, divorce attorneys, evidence handling, chain of custody, and records retrieval. The law firms I’ve had an established relationship with will offer their conference rooms as a courtesy.
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Wow!!! Thank you so much for breaking this down for me! This is a wealth of information that you have parted unto me! That’s all that I was seeking is to get some understanding as to why it was falling on the notary who accepted the assignment to find the location! You have now given me a better understanding. HELOCs may not be something that I sign up for until I can establish a rapport with a law firm who may be newly established or one who wants to be generous! Again, again, thank you so much for your valuable input, it is truly appreciated! I wish you all the best in all of your endeavors! Thank you!
BTW - I’m located in Central Texas - Harker Heights (approximately 45 minutes from Waco) to be precise.
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Thank you for the kind words. I’m located in New Braunfels. Harker Heights is a nice place to live. As far as finding a law office(s), the closer to the county seat, the higher concentration of lawyers. Another strategy would be to contact local TCs and ask them for the names of Real Estate attorneys.
Develop a good elevator pitch to break the ice. You may want to hang around the court houses and pass out your business cards.
Good Luck
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You’re quite welcome! Excellent strategies!! Thanks 
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Hi Linda overlooked TX which does make signings difficult. Thanks for your attention to detail.
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Hi csmallsnotary ~your post is a very good example of how laws are different in every state. Appreciate when people post if they lead with their state of service. Thankful I’m in WA State where we don’t have to work with difficult TX type laws. Wonder if National Notary Service or American Notary Service has any connections to lobby for change in your state. Just a thought. Good luck !!
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Alice, the Texas venue requirement is built into the Texas Constitution, Article 50, section a6. Changing this requires a new Constitutional amendment; legislative approval, passage through the Lieutenant Governor, as they control the legislative flow through the Texas legislature, sign off by the Governor, and finally put before the voters. It took us lobbying the legislature for 6 years to get Notary fees increased. I’m not holding out for a Constitutional change any time in the near future.
Mark
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A Texas Cash Out has to be in a law or title company only.
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So many steps to make a change. At times good and other times no common sense. When I was working on a construction project in CA by state capital, had opportunity to mingle with a bunch of lobbyists. Really interesting information during that time. What I found astounding is how much lobbyists are paid. Guess it is all about the Benjamin’s.
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Alice, You’ve got that right.
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It can also be closed in a lender’s office. I had a contract during covid as the NSA for a local credit union.
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Okay…here’s my stupid question of the day - the code quoted above specifically states that it can be in the parking lot of a title company or law office. (not in the office as @jacksteinfeld stated). My question is…
If the parking lot is sufficient, what good is that?? Why bother having an administrative code for this at all if you’re closing in a parking lot?? And, if I were in TX doing HELOCs, I’d carry this code around with me and put a copy in my journal with notes about where we closed…and would not pay anyone to use a parking lot.
JMO and my $.02 FWIW