(c) The deed of conveyance of property sold under this section conveys to the purchaser the right, title, and interest acquired or held by each taxing unit that was a party to the judgment of foreclosure, subject to any remaining right of redemption at the time of the sale. (b) A copy of the petition shall be served, in the manner prescribed by Rule 21a, Texas Rules of Civil Procedure, as amended, or that rule's successor, on all parties to the underlying action not later than the 20th day before the date set for a hearing on the petition. The taxing unit shall issue a receipt for a payment received under this subsection and shall distribute the amount received to each taxing unit that participated in the judgment and sale in an amount proportional to the unit's share of the total amount of the aggregate judgments of the participating taxing units. 1430, Sec. More fees and costs may be added seven months after the tax sale on owner occupied properties. 1136, Sec. top: (last ac­cessed Oct. 14, 2020). 1, eff. 1481, Sec. Sale Versus Redemption. Aug. 26, 1991; Acts 1993, 73rd Leg., ch. There is no right of redemption for mortgage foreclosure sales. (2) the total amount of the judgments against the property. DISTRIBUTION OF EXCESS PROCEEDS IN OTHER TAX FORECLOSURE PROCEEDINGS. For other properties, the redemption period is six months from the date the tax sale deed is recorded. 24, eff. (e) If the purchaser prevails in a suit filed under Subsection (d), the court shall expressly provide in its final judgment that: (1) the tax sale is vacated and set aside; and. 841, Sec. (d) If the amount paid by the owner of the property under Subsection (c) is less than the amount of the judgment under which the property was sold, the owner shall pay to the taxing unit to which the property was bid off under Section 34.01 an amount equal to the difference between the amount paid under Subsection (c) and the amount of the judgment. Amended by Acts 1997, 75th Leg., ch. A defect in the chain of title to the property does not defeat an offer to redeem. (5) to at least annually execute a statement on a form provided by the county assessor-collector certifying that there are no delinquent ad valorem taxes owed by the person registering as a bidder to the county or to any taxing unit having territory in the county. (c) The clerk shall note on the execution docket in each case the amount of the excess proceeds, the date they were received, and the date they were transmitted to the taxing units participating in the sale. The SBA’s Right of Redemption Following Non-Judicial Foreclosures: Lenders, Fear Not . (h) An assignee or transferee who files a petition setting forth a claim to excess proceeds must attach a copy of the assignment or transfer document and produce the original of the assignment or transfer document in court at the hearing on the petition. An order confirming the tax sale is entered into the court records within 45 business days of the sale date. Tax Sale: The sale of property that results when a taxpayer reaches a certain point of delinquency in his or her property tax payments. However, the IRS will have a redemption period of 120 days after the date of the judicial sale (the “Redemption Period,” which may be a longer redemption period in some states) in which the IRS may elect to redeem the property subject to the IRS tax lien. (d) Subsection (c) does not apply to a claim based on a forged deed. (e) The presiding officer of a taxing unit selling real property under Subsection (h) or (i), under Section 34.051, or under Section 253.010, Local Government Code, or the sheriff or constable selling real property under Subsections (c) and (d) shall execute a deed to the property conveying to the purchaser the right, title, and interest acquired or held by each taxing unit that was a party to the judgment foreclosing tax liens on the property. The former owner of real property sold at a tax sale may redeem the property within a certain period of time, assuming the property meets certain criteria, pursuant to the Texas Property Tax … 841, Sec. (2) a county with a population of less than 250,000 in which the commissioners court by order has adopted the provisions of this section. 27 (S.B. 26, eff. A person is not eligible to bid at a sale of real property under this chapter unless the county assessor-collector has issued a written registration statement to the person before the sale begins. 4, eff. 33, eff. 50 State Tax Sale Map and breakdown includes auction type, auction dates, interest rates & redemption periods. (d) An action attacking the validity of a sale of property pursuant to this section may not be instituted after the expiration of one year after the date of the sale and then only after the unconditional tender into the registry of the court of an amount equal to all taxes, penalties, interest, costs, and post-judgment interest of all judgments on which the original foreclosure sale was based. Sec. 34.08. 1, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 2, eff. (3) regardless of the amount, send to the attorney general notice of the deposit and amount of excess proceeds if the attorney general or a state agency represented by the attorney general is named as an in rem defendant in the underlying suit for seizure of the property or foreclosure of a tax lien on the property. Sept. 1, 1997; Acts 1997, 75th Leg., ch. CHALLENGE TO VALIDITY OF TAX SALE. (2) for each school district or municipality having territory in the county there are no known or reported delinquent ad valorem taxes owed by the person to that school district or municipality. An order confirming the tax sale is entered into the court records within 45 business days of the sale date. (b) A commissioners court may require that, to be eligible to bid at a sale of real property under this chapter, a person must be registered as a bidder with the county assessor-collector before the sale begins. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 8, eff. (a) A municipality is authorized to resell tax foreclosed property for less than the market value specified in the judgment of foreclosure or less than the total amount of the judgments against the property if consent to the conveyance is evidenced by an interlocal agreement between the municipality and each taxing unit that is a party to the judgment, provided, however, that the interlocal agreement complies with the requirements of Subsection (b). May 15, 2015. 1118), Sec. (a) This section applies only to a sale of real property under this chapter conducted in a county in which the commissioners court by order has adopted the provisions of this section. 310, Sec. Texas Legislature Online, Acts 2011, 82nd Leg., R.S., Ch. (n) The deed vests good and perfect title in the purchaser or the purchaser's assigns to the interest owned by the defendant in the property subject to the foreclosure, including the defendant's right to the use and possession of the property, subject only to the defendant's right of redemption, the terms of a recorded restrictive covenant running with the land that was recorded before January 1 of the year in which the tax lien on the property arose, a recorded lien that arose under that restrictive covenant that was not extinguished in the judgment foreclosing the tax lien, and each valid easement of record as of the date of the sale that was recorded before January 1 of the year the tax lien arose. Author: Michael P. Menton. (i) The owner of property who is entitled to redeem the property under this section may request that the purchaser of the property, or the taxing unit to which the property was bid off, provide that owner a written itemization of all amounts spent by the purchaser or taxing unit in costs on the property. 13, Sec. The sale is subject to any right of redemption of the former owner. 30, eff. This redemption period applies to residential homestead properties and land designated for agricultural use when the suit was filed. Investors who want the shorter redemption time period, 180 days, will target certain types of properties at the tax sale. RESALE BY TAXING UNIT. 421 (S.B. (5) to each former owner of the property, as the interest of each may appear, provided that the former owner: (B) is related within the third degree by consanguinity or affinity to a former owner that was a defendant in the judgment; or. 132, eff. Spectrum: Partisan Bill (Democrat 2-0) Status: (Passed) 2019-06-14 - Effective immediately [SB1642 Detail] Download: Texas-2019-SB1642-Enrolled.html (d) An officer's failure to send the written notice of sale or a defendant's failure to receive that notice is insufficient by itself to invalidate: (e) A notice of sale under Subsection (c) must substantially comply with this subsection. (b) Property sold pursuant to Subsections (c) and (d) of this section may be sold for any amount. Acts 2015, 84th Leg., R.S., Ch. (f) A suit filed against the taxing units under Subsection (d) may not be maintained unless the action is instituted before the first anniversary of the date of sale or resale. The general commercial right of redemption after a tax sale is 180 days and the redemption premium is more limited. The county assessor-collector shall specify the date by which the collector must respond to the request. 9, eff. Jan. 1, 1998; Acts 1997, 75th Leg., ch. 1452), Sec. 1111, Sec. 2, eff. Acts 2011, 82nd Leg., R.S., Ch. Sept. 1, 1999; Acts 1999, 76th Leg., ch. If the IRS holds a lien on the property, the right of redemption is 120 days from the date of the sale (28 U.S.C. (2) any lien on the property extinguished by the tax sale is reinstated on the property effective as of the date on which the lien originally attached to the property. 34.06. This subsection does not authorize a sale of property in violation of Section 52, Article III, Texas Constitution. There is a 180 day right of redemption for all other property. Sec. September 1, 2009. June 18, 2005. (c) At the hearing the court shall order that the proceeds be paid according to the following priorities to each party that establishes its claim to the proceeds: (1) to the tax sale purchaser if the tax sale has been adjudged to be void and the purchaser has prevailed in an action against the taxing units under Section 34.07(d) by final judgment; (2) to a taxing unit for any taxes, penalties, or interest that have become due or delinquent on the subject property subsequent to the date of the judgment or that were omitted from the judgment by accident or mistake; (3) to any other lienholder, consensual or otherwise, for the amount due under a lien, in accordance with the priorities established by applicable law; (4) to a taxing unit for any unpaid taxes, penalties, interest, or other amounts adjudged due under the judgment that were not satisfied from the proceeds from the tax sale; and. 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