Tex. Prop. Code Ann. §§ 54.041–54.048, 54.901 § 54.901
DISPOSAL OF CERTAIN MOTOR VEHICLES SUBJECT TO LIEN.
Operative Text
Sec. 54.901. DISPOSAL OF CERTAIN MOTOR VEHICLES SUBJECT TO LIEN. (a) Notwithstanding any other law, a person authorized to dispose of property for which a lien under this chapter is attached may dispose of the property in accordance with Subchapter D, Chapter 683, Transportation Code, if:(1) the property is a motor vehicle; and(2) the person determines that:(A) the vehicle's only residual value is as a source of parts or scrap metal; or(B) it is not economical to dispose of the vehicle at a public sale.(b) If a person disposes of the property under Subsection (a), the person shall apply the fair market value of the motor vehicle to the charges due to the person. Added by Acts 2017, 85th Leg., R.S., Ch. 1061 (H.B. 3131), Sec. 3, eff. September 1, 2017.
Under Texas Property Code § 54.901, when a landlord or other lienholder holds a lien on a motor vehicle left on their property, they may dispose of that vehicle through the salvage or abandoned-vehicle process set out in Transportation Code Subchapter D, Chapter 683, rather than through a traditional public sale—but only if the vehicle's remaining value is limited to parts or scrap, or if a public sale would not be economically practical. When that disposal path is used, the fair market value of the vehicle must be credited against whatever charges the lienholder is owed. This provision was added in 2017 and operates alongside the broader landlord's lien rules found in §§ 54.041–54.048.
Plain English — not legal advice.
Property owners or managers who hold a lien under Texas Property Code §§ 54.041–54.048 and find a tenant's motor vehicle on the premises generally document the vehicle's condition and make a good-faith determination about whether it retains meaningful resale value or whether a public auction would be economically viable. If neither condition is met, § 54.901 allows disposal through the Transportation Code's salvage/abandoned-vehicle framework rather than a public sale. Compliant operators also ensure that whatever fair market value is realized from the vehicle is applied against the outstanding charges before pursuing any remaining balance.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Texas Property Code § 54.901 limits how a landlord may handle a motor vehicle subject to a lien: the salvage-disposal route is only available when the vehicle is essentially worthless except for parts or scrap, or when a public sale is not economically feasible. Tenants whose vehicles may be subject to a landlord's lien under §§ 54.041–54.048 have an interest in knowing that any fair market value recovered from the vehicle must be credited toward the debt owed. Tenants who believe a vehicle was improperly disposed of may wish to review the Transportation Code Chapter 683 procedures, consult a tenant-rights organization, or explore whether raising a procedural violation as a defense in any collection action is appropriate.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 28, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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