Texas Property Code 61.004 – Amount of Lien
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Terms Used In Texas Property Code 61.004
- Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgagee: The person to whom property is mortgaged and who has loaned the money.
- Mortgagor: The person who pledges property to a creditor as collateral for a loan and who receives the money.
The amount of the lien is the lesser of:
(1) the fair market value of the motor vehicle before the accident;
(2) the reasonable cost of repair to the motor vehicle; or
(3) the balance owed to the mortgagee by the mortgagor.