CHAPTER 32. TAX LIENS AND PERSONAL LIABILITY

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TAX CODE

TITLE 1. PROPERTY TAX CODE

SUBTITLE E. COLLECTIONS AND DELINQUENCY

CHAPTER 32. TAX LIENS AND PERSONAL LIABILITY

Sec. 32.01. TAX LIEN. (a) On January 1 of each year, a tax

lien attaches to property to secure the payment of all taxes,

penalties, and interest ultimately imposed for the year on the

property, whether or not the taxes are imposed in the year the

lien attaches. The lien exists in favor of each taxing unit

having power to tax the property.

(b) A tax lien on inventory, furniture, equipment, or other

personal property is a lien in solido and attaches to all

inventory, furniture, equipment, and other personal property that

the property owner owns on January 1 of the year the lien

attaches or that the property owner subsequently acquires.

metes and bounds in one or more instruments of conveyance and

part of that property is the owner's residence homestead taxed

separately and apart from the remainder of the property, each of

the liens under this section that secures the taxes imposed on

that homestead and on the remainder of that property extends in

solido to all the real property described in the instrument or

instruments of conveyance, unless the homestead is identified as

a separate parcel and is separately described in the conveyance

or another instrument recorded in the real property records.

(d) The lien under this section is perfected on attachment and,

except as provided by Section 32.03(b), perfection requires no

further action by the taxing unit.

Acts 1979, 66th Leg., p. 2287, ch. 841, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1983, 68th Leg., p. 4827, ch. 851, Sec. 22,

eff. Aug. 29, 1983; Acts 1993, 73rd Leg., ch. 1031, Sec. 3, eff.

Sept. 1, 1993; Acts 1999, 76th Leg., ch. 1481, Sec. 11, eff. Jan.

1, 2000.

Sec. 32.014. TAX LIEN ON MANUFACTURED HOME. (a) If the owner

of a manufactured home has elected to treat the home as real

property under Section 25.08, the tax lien shall be attached to

the land on which the manufactured home is located.

(b) If the owner of a manufactured home does not elect to treat

the home as real property with the land on which the manufactured

home is located, the tax lien on the manufactured home does not

attach to the land on which the home is located.

assigned by Section 1201.003, Occupations Code.

(d) This section prevails over Chapter 1201, Occupations Code,

to the extent of any conflict.

Added by Acts 1987, 70th Leg., ch. 633, Sec. 2, eff. Aug. 31,

1987. Amended by Acts 1989, 71st Leg., ch. 2, Sec. 14.02(b), eff.

Aug. 28, 1989; Acts 1989, 71st Leg., ch. 1039, Sec. 4.04, eff.

Sept. 1, 1989; Acts 1995, 74th Leg., ch. 978, Sec. 20, eff. Sept.

1, 1995; Acts 2001, 77th Leg., ch. 1055, Sec. 8, eff. Jan. 1,

2002; Acts 2003, 78th Leg., ch. 338, Sec. 46, eff. Jan. 1, 2004;

Acts 2003, 78th Leg., ch. 1276, Sec. 14A.813, eff. Sept. 1, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

1284, Sec. 31, eff. June 18, 2005.

Sec. 32.015. TAX LIEN ON MANUFACTURED HOME. (a) On payment of

the taxes, penalties, and interest for a year for which a valid

tax lien has been recorded on the title records of the

department, the collector for the taxing unit shall issue a tax

certificate showing no taxes due or a tax paid receipt for such

year to the person making payment. When the tax certificate

showing no taxes due or tax paid receipt is filed with the

department, the tax lien is extinguished and canceled and shall

be removed from the title records of the manufactured home. The

collector for a taxing unit may not refuse to issue a tax paid

receipt to the person who offers to pay the taxes, penalties, and

interest for a particular year or years, even though taxes may

also be due for another year or other years.

(b) In this section, "department" and "manufactured home" have

the meanings assigned by Section 1201.003, Occupations Code;

however, the term "manufactured home" does not include a

manufactured home that has been attached to real property and for

which the document of title has been canceled under Section

1201.217 of that code.

Added by Acts 1985, 69th Leg., ch. 846, Sec. 15, eff. Sept. 1,

1985. Amended by Acts 1987, 70th Leg., ch. 1134, Sec. 22, eff.

June 18, 1987; Acts 1989, 71st Leg., ch. 1039, Sec. 4.05, eff.

Sept. 1, 1989; Acts 1991, 72nd Leg., ch. 617, Sec. 11, eff. Aug.

26, 1991; Acts 1995, 74th Leg., ch. 978, Sec. 21, eff. Sept. 1,

1995; Acts 1999, 76th Leg., ch. 1481, Sec. 12, eff. Jan. 1, 2000;

Acts 2001, 77th Leg., ch. 988, Sec. 2, eff. Sept. 1, 2001; Acts

2003, 78th Leg., ch. 1276, Sec. 14A.814, eff. Sept. 1, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

1284, Sec. 32, eff. June 18, 2005.

Sec. 32.02. RESTRICTIONS ON A MINERAL INTEREST TAX LIEN. (a)

If a mineral estate is severed from a surface estate and if

different persons own the mineral estate and surface estate, the

lien resulting from taxes imposed against each interest in the

mineral estate exists only for the duration of the interest it

encumbers. After an interest in the mineral estate terminates,

the lien encumbering it expires and is not enforceable:

(1) against any part of the surface estate not owned by the

owner of the interest encumbered by the lien;

(2) against any part of the mineral estate not owned by the

owner of the interest encumbered by the lien; or

(3) against the owner of the surface estate as a personal

obligation, unless he also owns the interest encumbered by the

lien.

(b) Taxes imposed on a severed interest in a mineral estate that

has terminated remain the personal liability of the person who

owned the interest on January 1 of the year for which the tax was

imposed.

Acts 1979, 66th Leg., p. 2287, ch. 841, Sec. 1, eff. Jan. 1,

1982.

Sec. 32.03. RESTRICTIONS ON PERSONAL PROPERTY TAX LIEN. (a)

Except as provided by Subsection (a-1), a tax lien may not be

enforced against personal property transferred to a buyer in

ordinary course of business as defined by Section 1.201(9) of the

Business & Commerce Code for value who does not have actual

notice of the existence of the lien.

(a-1) With regard to a manufactured home, a tax lien may be

recorded at any time not later than six months after the end of

the year for which the tax was owed. A tax lien on a

manufactured home may be enforced if it has been recorded in

accordance with the laws in effect at the time of the recordation

of the lien. A properly recorded tax lien may not be enforced

against a new manufactured home that is owned by a person who

acquired the manufactured home from a retailer as a buyer in the

ordinary course of business.

(a-2) A person may not transfer ownership of a manufactured home

until all tax liens perfected on the home that have been timely

filed with the Texas Department of Housing and Community Affairs

have been extinguished or satisfied and released and any personal

property taxes on the manufactured home which accrued on each

January 1 that falls within the 18 months preceding the date of

the sale have been paid. This subsection does not apply to the

sale of a manufactured home in inventory.

(b) A bona fide purchaser for value or the holder of a lien

recorded on a manufactured home statement of ownership and

location is not required to pay any taxes that have not been

recorded with the Texas Department of Housing and Community

Affairs. In this section, manufactured home has the meaning

assigned by Section 32.015(b). Unless a tax lien has been filed

timely with the Texas Department of Housing and Community

Affairs, no taxing unit, nor anyone acting on its behalf, may use

a tax warrant or any other method to attempt to execute or

foreclose on the manufactured home.

credited with a particular payment. If a taxpayer pays all the

amounts owing for a given year, the taxing unit shall issue a

receipt for the payment of the taxes for the designated year.

(d) Notwithstanding any other provision of this section, if a

manufactured home was omitted from the tax roll for either or

both of the two preceding tax years, the taxing unit may file a

tax lien within the 150-day period following the date on which

the tax becomes delinquent.

(e) If personal property taxes on a manufactured home have not

been levied by the taxing unit, the taxing unit shall provide,

upon request, an estimated amount of taxes computed by

multiplying the taxable value of the manufactured home, according

to the most recent certified appraisal roll for the taxing unit,

by the taxing unit's adopted tax rate for the preceding tax year.

In order to enable the transfer of the manufactured home, the

tax collector shall accept the payment of the estimated personal

property taxes and issue a certification to the Texas Department

of Housing and Community Affairs that the estimated taxes are

being held in escrow until the taxes are levied. Once the taxes

are levied, the tax collector shall apply the escrowed sums to

the levied taxes. At the time the tax collector accepts the

payment of the taxes, the tax collector shall provide notice that

the payment of the estimated taxes is an estimate that may be

raised once the appraisal rolls for the year are certified and

that the new owner may be liable for the payment of any

difference between the tax established by the certified appraisal

roll and the estimate actually paid.

Acts 1979, 66th Leg., p. 2287, ch. 841, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1985, 69th Leg., ch. 846, Sec. 16, eff.

Sept. 1, 1985; Acts 1991, 72nd Leg., ch. 617, Sec. 12, eff. Aug.

26, 1991; Acts 1991, 72nd Leg., ch. 836, Sec. 5.2, eff. Aug. 26,

1991; Acts 1995, 74th Leg., ch. 978, Sec. 22, eff. Sept. 1, 1995;

Acts 2001, 77th Leg., ch. 988, Sec. 3, eff. Sept. 1, 2001; Acts

2003, 78th Leg., ch. 338, Sec. 47, eff. Jan. 1, 2004.

Amended by:

Acts 2005, 79th Leg., Ch.

1284, Sec. 33, eff. June 18, 2005.

Acts 2005, 79th Leg., Ch.

1284, Sec. 34, eff. June 18, 2005.

Acts 2007, 80th Leg., R.S., Ch.

863, Sec. 72, eff. January 1, 2008.

Sec. 32.04. PRIORITIES AMONG TAX LIENS. (a) Whether or not a

tax lien provided by this chapter takes priority over a tax lien

of the United States is determined by federal law. In the absence

of federal law, a tax lien provided by this chapter takes

priority over a tax lien of the United States.

(b) Tax liens provided by this chapter have equal priority.

Acts 1979, 66th Leg., p. 2287, ch. 841, Sec. 1, eff. Jan. 1,

1982.

Sec. 32.05. PRIORITY OF TAX LIENS OVER OTHER PROPERTY INTERESTS.

(a) A tax lien on real property takes priority over a homestead

interest in the property.

(b) Except as provided by Subsection (c)(1), a tax lien provided

by this chapter takes priority over:

(1) the claim of any creditor of a person whose property is

encumbered by the lien;

(2) the claim of any holder of a lien on property encumbered by

the tax lien, including any lien held by a property owners'

association, homeowners' association, condominium unit owners'

association, or council of owners of a condominium regime under a

restrictive covenant, condominium declaration, master deed, or

other similar instrument that secures regular or special

maintenance assessments, fees, dues, interest, fines, costs,

attorney's fees, or other monetary charges against the property;

and

(3) any right of remainder, right or possibility of reverter, or

other future interest in, or encumbrance against, the property,

whether vested or contingent.

(b-1) The priority given to a tax lien by Subsection (b)

prevails, regardless of whether the debt, lien, future interest,

or other encumbrance existed before attachment of the tax lien.

(1) a claim for any survivor's allowance, funeral expenses, or

expenses of the last illness of a decedent made against the

estate of a decedent as provided by law;

(2) except as provided by Subsection (b)(2), a recorded

restrictive covenant that runs with the land and was recorded

before January 1 of the year the tax lien arose; or

(3) a valid easement of record recorded before January 1 of the

year the tax lien arose.

(d) In an action brought under Chapter 33 for the enforced

collection of a delinquent tax against property, a property

owners' association, homeowners' association, condominium unit

owners' association, or council of owners of a condominium regime

that holds a lien for regular or special maintenance assessments,

fees, dues, interest, fines, costs, attorney's fees, or other

monetary charges against the property is not a necessary party to

the action unless, at the time the action is commenced, notice of

the lien in a liquidated amount is evidenced by a sworn

instrument duly executed by an authorized person and recorded

with the clerk of the county in which the property is located.

A tax sale of the property extinguishes the lien held by a

property owners' association, homeowners' association,

condominium unit owners' association, or council of owners of a

condominium regime for all amounts that accrued before the date

of sale if:

(1) the holder of the lien is joined as a party to an action

brought under Chapter 33 by virtue of a notice of the lien on

record at the time the action is commenced; or

(2) the notice of lien is not of record at the time the action

is commenced, regardless of whether the holder of the lien is

made a party to the action.

(e) The existence of a recorded restrictive covenant,

declaration, or master deed that generally provides for the lien

held by a property owners' association, homeowners' association,

condominium unit owners' association, or council of owners of a

condominium regime does not, by itself, constitute actual or

constructive notice to a taxing unit of a lien under Subsection

(d).

Acts 1979, 66th Leg., p. 2287, ch. 841, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1991, 72nd Leg., ch. 854, Sec. 1, eff. June

16, 1991; Acts 1999, 76th Leg., ch. 1481, Sec. 13, eff. Sept. 1,

1999.

Amended by:

Acts 2005, 79th Leg., Ch.

1126, Sec. 12, eff. September 1, 2005.

Sec. 32.06. TRANSFER OF TAX LIEN. (a) In this section:

(1) "Mortgage servicer" has the meaning assigned by Section

51.0001, Property Code.

(2) "Transferee" means a person authorized to pay the taxes of

another.

(a-1) A person may authorize another person to pay the taxes

imposed by a taxing unit on the person's real property by filing

with the collector for the unit:

(1) a sworn document stating:

(A) the authorization;

(B) the name and street address of the transferee authorized to

pay the taxes of the property owner;

applicable, and legal description; and

(D) notice has been given to the property owner that if the

property owner is age 65 or disabled, the property owner may be

eligible for a tax deferral under Section 33.06; and

(2) the information required by Section 351.054, Finance Code.

(a-2) A tax lien may be transferred to the person who pays the

taxes on behalf of the property owner under the authorization

for:

(1) taxes that are delinquent at the time of payment; or

(2) taxes that are not delinquent at the time of payment if:

(A) the property is not subject to a recorded mortgage lien; or

(B) a tax lien transfer authorized by the property owner has

been executed and recorded for one or more prior years on the

same property and the property owner has executed an

authorization consenting to a transfer of the tax liens for both

the taxes on the property that are not delinquent and taxes on

the property that are delinquent in the manner provided by

Subsection (a-1).

(a-3) If the property owner has executed an authorization under

Subsection (a-2)(2)(B) consenting to a transfer of the tax liens

for both the taxes on the property that are not delinquent and

taxes on the property that are delinquent, the collector shall

certify in one document the transfer of the liens for all the

taxes.

(a-4) The Finance Commission of Texas shall:

(1) prescribe the form and content of an appropriate disclosure

statement to be provided to a property owner before the execution

of a tax lien transfer;

(2) adopt rules relating to the reasonableness of closing costs,

fees, and other charges permitted under this section; and

(3) by rule prescribe the form and content of the sworn document

under Subsection (a-1) and the certified statement under

Subsection (b).

(b) If a transferee authorized to pay a property owner's taxes

pursuant to Subsection (a-1) pays the taxes and any penalties and

interest imposed, the collector shall issue a tax receipt to that

transferee. In addition, the collector or a person designated by

the collector shall certify that the taxes and any penalties and

interest on the subject property and collection costs have been

paid by the transferee on behalf of the property owner and that

the taxing unit's tax lien is transferred to that transferee.

The collector shall attach to the certified statement the

collector's seal of office or sign the statement before a notary

public and deliver a tax receipt and the statement attesting to

the transfer of the tax lien to the transferee within 30 days.

The tax receipt and statement may be combined into one document.

The collector shall identify in a discrete field in the

applicable property owner's account the date of the transfer of a

tax lien transferred under this section. When a tax lien is

released, the transferee shall file a release with the county

clerk of each county in which the property encumbered by the lien

is located for recordation by the clerk and send a copy to the

collector. The transferee may charge the property owner a

reasonable fee for filing the release.

(b-1) Not later than the 10th business day after the date the

certified statement is received by the transferee, the transferee

shall send by certified mail a copy of the sworn document

described by Subsection (a-1) to any mortgage servicer and to

each holder of a recorded first lien encumbering the property.

The copy must be sent, as applicable, to the address shown on the

most recent payment invoice, statement, or payment coupon

provided by the mortgage servicer to the property owner, or the

address of the holder of a recorded first lien as shown in the

real property records.

of a tax lien and any successor in interest is entitled to

foreclose the lien:

(1) in the manner provided by law for foreclosure of tax liens;

(2) in the manner specified in Section 51.002, Property Code,

and Section 32.065, after the transferee or a successor in

interest obtains a court order for foreclosure under Rule 736,

Texas Rules of Civil Procedure, except as provided by Subsection

(c-1) of this section, if the property owner and the transferee

enter into a contract that is secured by a lien on the property.

(c-1) If a transferee seeks to foreclose a tax lien on the

property under Subsection (c)(2):

(1) the application for the foreclosure must be served on and

name as parties the owner of the property and the holder of any

recorded preexisting first lien on the property and must:

(A) allege that the lien is an ad valorem tax lien instead of a

lien created under Section 50, Article XVI, Texas Constitution;

(B) state that the applicant does not seek a court order

required by Section 50, Article XVI, Texas Constitution;

default, notice of intent to accelerate, and notice of

acceleration of the maturity of the debt to the property owner

and each holder of a recorded first lien on the property in the

manner required for notice to a debtor under Section 51.002,

Property Code; and

(D) confirm that the property owner has not requested a deferral

of taxes authorized by Section 33.06; and

(2) the holder of a recorded preexisting lien must be provided

at least 60 days' notice before the date of the proposed

foreclosure.

(d) A transferee shall record a tax lien transferred as provided

by this section with the statement attesting to the transfer of

the tax lien as described by Subsection (b) in the deed records

of each county in which the property encumbered by the lien is

located.

(d-1) A right of rescission described by 12 C.F.R. Section

226.23 applies to a tax lien transfer under this section.

(e) A transferee holding a tax lien transferred as provided by

this section may not charge a greater rate of interest than 18

percent a year on the funds advanced. Funds advanced are limited

to the taxes, penalties, interest, and collection costs paid as

shown on the tax receipt, expenses paid to record the lien, plus

reasonable closing costs.

(f) The holder of a loan secured by a transferred tax lien that

is delinquent for 90 consecutive days must send a notice of the

delinquency by certified mail on or before the 120th day of

delinquency or, if the 120th day is not a business day, on the

next business day after the 120th day of delinquency, to any

holder of a recorded preexisting lien on the property. The

holder or mortgage servicer of a recorded preexisting lien on

property encumbered by a tax lien transferred as provided by

Subsection (b) is entitled, within six months after the date on

which the notice is sent, to obtain a release of the transferred

tax lien by paying the transferee of the tax lien the amount owed

under the contract between the property owner and the transferee.

(f-1) If an obligation secured by a preexisting first lien on

the property is delinquent for at least 90 consecutive days and

the obligation has been referred to a collection specialist, the

mortgage servicer or the holder of the first lien may send a

notice of the delinquency to the transferee of a tax lien. The

mortgage servicer or the first lienholder is entitled, within six

months after the date on which that notice is sent, to obtain a

release of the transferred tax lien by paying the transferee of

the tax lien the amount owed under the contract between the

property owner and the transferee. The Finance Commission of

Texas by rule shall prescribe the form and content of the notice

under this subsection.

(f-2) The rights granted by Subsections (f) and (f-1) do not

affect a right of redemption in a foreclosure proceeding

described by Subsection (k) or (k-1).

(f-3) Notwithstanding any contractual agreement with the

property owner, the transferee of a tax lien must provide the

payoff information required by this section to the greatest

extent permitted by 15 U.S.C. Section 6802 and 12 C.F.R. Part

216. The payoff statement must meet the requirements of a payoff

statement defined by Section 12.017, Property Code. A transferee

may charge a reasonable fee for a payoff statement that is

requested after an initial payoff statement is provided.

(f-4) Failure to comply with Subsection (b-1), (f), or (f-1)

does not invalidate a tax lien under this chapter, a contract

lien, or a deed of trust.

(g) At any time after the end of the six-month period specified

by Subsection (f) and before a notice of foreclosure of the

transferred tax lien is sent, the transferee of the tax lien or

the holder of the tax lien may require the property owner to

provide written authorization and pay a reasonable fee before

providing information regarding the current balance owed by the

property owner to the transferee or the holder of the tax lien.

(h) A mortgage servicer who pays a transferred tax lien becomes

subrogated to all rights in the lien.

(i) Except as provided by Section 33.445, a foreclosure of a tax

lien transferred as provided by this section may not be

instituted within one year from the date on which the lien is

recorded in all counties in which the property is located, unless

the contract between the owner of the property and the transferee

provides otherwise.

(j) After one year from the date on which a tax lien transferred

as provided by this section is recorded in all counties in which

the property is located, the transferee of the lien may foreclose

the lien in the manner provided by Subsection (c) unless a

contract between the holder of the lien and the owner of the

property encumbered by the lien provides otherwise. If a

foreclosure suit results in foreclosure of the lien, the

transferee is entitled to recover attorney's fees in an amount

not to exceed 10 percent of the judgment. The proceeds of a sale

following a judicial foreclosure as provided by this subsection

shall be applied first to the payment of court costs, then to

payment of the judgment, including accrued interest, and then to

the payment of any attorney's fees fixed in the judgment. Any

remaining proceeds shall be paid to other holders of liens on the

property in the order of their priority and then to the person

whose property was sold at the tax sale.

(k) Beginning on the date the foreclosure deed is recorded, the

person whose property is sold as provided by Subsection (c) or

the mortgage servicer of a prior recorded lien against the

property is entitled to redeem the foreclosed property from the

purchaser or the purchaser's successor by paying the purchaser or

successor:

(1) 125 percent of the purchase price during the first year of

the redemption period or 150 percent of the purchase price during

the second year of the redemption period with cash or cash

equivalent funds; and

(2) the amount reasonably spent by the purchaser in connection

with the property as costs within the meaning of Section 34.21(g)

and the legal judgment rate of return on that amount.

(k-1) The right of redemption provided by Subsection (k) may be

exercised on or before the second anniversary of the date on

which the purchaser's deed is filed of record if the property

sold was the residence homestead of the owner, was land

designated for agricultural use, or was a mineral interest. For

any other property, the right of redemption must be exercised not

later than the 180th day after the date on which the purchaser's

deed is filed of record. If a person redeems the property as

provided by Subsection (k) and this subsection, the purchaser at

the tax sale or the purchaser's successor shall deliver a deed

without warranty to the property to the person redeeming the

property. If the person who owned the property at the time of

foreclosure redeems the property, all liens existing on the

property at the time of the tax sale remain in effect to the

extent not paid from the sale proceeds.

Acts 1979, 66th Leg., p. 2288, ch. 841, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1995, 74th Leg., ch. 131, Sec. 1, eff.

Sept. 1, 1995.

Amended by:

Acts 2005, 79th Leg., Ch.

406, Sec. 1, eff. September 1, 2005.

Acts 2005, 79th Leg., Ch.

1126, Sec. 13, eff. September 1, 2005.

Acts 2007, 80th Leg., R.S., Ch.

1220, Sec. 3, eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch.

1329, Sec. 1, eff. September 1, 2007.

Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 22.006, eff. September 1, 2009.

Acts 2009, 81st Leg., R.S., Ch.

104, Sec. 1, eff. September 1, 2009.

Acts 2009, 81st Leg., R.S., Ch.

1382, Sec. 4, eff. September 1, 2009.

Sec. 32.065. CONTRACT FOR FORECLOSURE OF TAX LIEN. (a) Section

32.06 does not abridge the right of an owner of real property to

enter into a contract for the payment of taxes.

(b) Notwithstanding any agreement to the contrary, a contract

entered into under Subsection (a) between a transferee and the

property owner under Section 32.06 that is secured by a priority

lien on the property shall provide for a power of sale and

foreclosure in the manner provided by Section 32.06(c)(2) and:

(1) an event of default;

(2) notice of acceleration;

(3) recording of the deed of trust or other instrument securing

the contract entered into under Subsection (a) in each county in

which the property is located;

(4) recording of the sworn document and affidavit attesting to

the transfer of the tax lien;

(5) requiring the transferee to serve foreclosure notices on the

property owner at the property owner's last known address in the

manner provided by Section 32.06(c)(2) or by a commercially

reasonable delivery service that maintains verifiable records of

deliveries for at least five years from the date of delivery; and

(6) requiring, at the time the foreclosure notices required by

Subdivision (5) are served on the property owner, the transferee

to serve a copy of the notice of sale in the same manner on the

mortgage servicer or the holder of all recorded real property

liens encumbering the property that includes on the first page,

in 14-point boldfaced type or 14-point uppercase typewritten

letters, a statement that reads substantially as follows:

"PURSUANT TO TEXAS TAX CODE SECTION 32.06, THE FORECLOSURE SALE

REFERRED TO IN THIS DOCUMENT IS A SUPERIOR TRANSFER TAX LIEN

SUBJECT TO RIGHT OF REDEMPTION UNDER CERTAIN CONDITIONS. THE

FORECLOSURE IS SCHEDULED TO OCCUR ON THE (DATE)."

(b-1) On an event of default and notice of acceleration, the

mortgage servicer of a recorded lien encumbering real property

may obtain a release of a transferred tax lien on the property by

paying the transferee of the tax lien or the holder of the tax

lien the amount owed by the property owner to that transferee or

holder.

transferee of a tax lien or the transferee's assignee is

subrogated to and is entitled to exercise any right or remedy

possessed by the transferring taxing unit, including or related

to foreclosure or judicial sale, but is prohibited from

exercising a remedy of foreclosure or judicial sale where the

transferring taxing unit would be prohibited from foreclosure or

judicial sale.

(d) Chapters 342 and 346, Finance Code, and the provisions of

Chapter 343, Finance Code, other than Sections 343.203 and

343.205, do not apply to a transaction covered by this section.

(e) If in a contract under this section a person contracts for,

charges, or receives a rate or amount of interest that exceeds

the rate or amount allowed by this section, the amount of the

penalty for which the person is obligated is determined in the

manner provided by Chapter 349, Finance Code.

(f) Before accepting an application fee or executing a contract,

the transferee shall disclose to the transferee's prospective

borrower each type and the amount of possible additional charges

or fees that may be incurred by the borrower in connection with

the loan or contract under this section.

(g) Repealed by Acts 2007, 80th Leg., R.S., Ch. 1329, Sec. 3,

eff. September 1, 2007.

(h) An affidavit of the transferee executed after foreclosure of

a tax lien that recites compliance with the terms of Section

32.06 and this section and is recorded in each county in which

the property is located:

(1) is prima facie evidence of compliance with Section 32.06 and

this section; and

(2) may be relied on conclusively by a bona fide purchaser for

value without notice of any failure to comply.

Acts 1979, 66th Leg., p. 2288, ch. 841, Sec. 1, eff. Jan. 1,

1982. Redesignated from Tax Code Sec. 32.06(j) and amended by

Acts 1995, 74th Leg., ch. 131, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 1997, 75th Leg., ch. 1396, Sec. 39, eff. Sept. 1,

1997; Acts 1999, 76th Leg., ch. 62, Sec. 7.91, eff. Sept. 1,

1999.

Amended by:

Acts 2005, 79th Leg., Ch.

406, Sec. 2, eff. September 1, 2005.

Acts 2005, 79th Leg., Ch.

1126, Sec. 14, eff. September 1, 2005.

Acts 2007, 80th Leg., R.S., Ch.

921, Sec. 17.001(66), eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch.

1220, Sec. 4, eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch.

1329, Sec. 2, eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch.

1329, Sec. 3, eff. September 1, 2007.

Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 22.007, eff. September 1, 2009.

Sec. 32.07. PERSONAL LIABILITY FOR TAX. (a) Except as provided

by Subsections (b) and (c) of this section, property taxes are

the personal obligation of the person who owns or acquires the

property on January 1 of the year for which the tax is imposed or

would have been imposed had property not been omitted as

described under Section 25.21. A person is not relieved of the

obligation because he no longer owns the property.

(b) The person in whose name a property is required to be listed

by Section 25.13 of this code is personally liable for the taxes

imposed on the property.

trustor of the trust are jointly and severally liable for the tax

imposed on the interest of the trust in a residence homestead.

(d) Any person who receives or collects an ad valorem tax or any

money represented to be a tax from another person holds the

amount so collected in trust for the benefit of the taxing unit

and is liable to the taxing unit for the full amount collected

plus any accrued penalties and interest on the amount collected.

(e) With respect to an ad valorem tax or other money subject to

the provisions of Subsection (d), an individual who controls or

supervises the collection of tax or money from another person, or

an individual who controls or supervises the accounting for and

paying over of the tax or money, and who wilfully fails to pay or

cause to be paid the tax or money is liable as a responsible

individual for an amount equal to the tax or money, plus all

interest, penalties, and costs, not paid or caused to be paid.

The liability imposed by this subsection is in addition to any

other penalty provided by law. The dissolution of a corporation,

association, limited liability company, or partnership does not

affect a responsible individual's liability under this

subsection.

(f) Venue for suits arising under this section shall be governed

by Section 33.41(a).

(g) In this section:

(1) "Responsible individual" includes an officer, manager,

director, or employee or a corporation, association, or limited

liability company or a member of a partnership who, as an

officer, manager, director, employee, or member, is under a duty

to perform an act with respect to the collection, accounting, or

payment of a tax or money subject to the provisions of Subsection

(d).

(2) "Tax" includes any ad valorem tax or money subject to the

provisions of Subsection (d), including the penalty and interest

computed by reference to the amount of the tax or money.

(h) For purposes of Subsection (a), a person is considered to be

an owner of property subject to an installment contract of sale

if the person is:

(1) the seller of the property; or

(2) a purchaser of the property who has the duty under the

installment contract to pay taxes on the property.

Acts 1979, 66th Leg., p. 2289, ch. 841, Sec. 1, eff. Jan. 1,

1980. Amended by Acts 1993, 73rd Leg., ch. 854, Sec. 4, eff. Jan.

1, 1994; Acts 1995, 74th Leg., ch. 579, Sec. 10, eff. Jan. 1,

1996; Acts 1997, 75th Leg., ch. 906, Sec. 2, eff. Jan. 1, 1998;

Acts 1999, 76th Leg., ch. 1481, Sec. 14, 15, eff. Jan. 1, 2000.

Amended by:

Acts 2005, 79th Leg., Ch.

846, Sec. 3, eff. September 1, 2005.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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