CHAPTER 34. TAX SALES AND REDEMPTION

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TAX CODE

TITLE 1. PROPERTY TAX CODE

SUBTITLE E. COLLECTIONS AND DELINQUENCY

CHAPTER 34. TAX SALES AND REDEMPTION

SUBCHAPTER A. TAX SALES

Sec. 34.01. SALE OF PROPERTY. (a) Real property seized under a

tax warrant issued under Subchapter E, Chapter 33, or ordered

sold pursuant to foreclosure of a tax lien shall be sold by the

officer charged with selling the property, unless otherwise

directed by the taxing unit that requested the warrant or order

of sale or by an authorized agent or attorney for that unit. The

sale shall be conducted in the manner similar property is sold

under execution except as otherwise provided by this subtitle.

(b) On receipt of an order of sale of real property, the officer

charged with selling the property shall endorse on the order the

date and exact time when the officer received the order. The

endorsement is a levy on the property without necessity for going

upon the ground. The officer shall calculate the total amount due

under the judgment, including all taxes, penalties, and interest,

plus any other amount awarded by the judgment, court costs, and

the costs of the sale. The costs of a sale include the costs of

advertising, and deed recording fees anticipated to be paid in

connection with the sale of the property. To assist the officer

in making the calculation, the collector of any taxing unit that

is party to the judgment may provide the officer with a certified

tax statement showing the amount of the taxes included in the

judgment that remain due that taxing unit and all penalties,

interest, and attorney's fees provided by the judgment as of the

date of the proposed sale. If a certified tax statement is

provided to the officer, the officer shall rely on the amount

included in the statement and is not responsible or liable for

the accuracy of the applicable portion of the calculation. A

certified tax statement is not required to be sworn to and is

sufficient if the tax collector or the collector's deputy signs

the statement.

of the sale in the manner prescribed by Rule 21a, Texas Rules of

Civil Procedure, as amended, or that rule's successor to each

person who was a defendant to the judgment or that person's

attorney.

(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:

(1) the sale of the property; or

(2) the title conveyed by that sale.

(e) A notice of sale under Subsection (c) must substantially

comply with this subsection. The notice must include:

(1) a statement of the authority under which the sale is to be

made;

(2) the date, time, and location of the sale; and

(3) a brief description of the property to be sold.

(f) A notice of sale is not required to include field notes

describing the property. A description of the property is

sufficient if the notice:

(1) states the number of acres and identifies the original

survey;

(2) as to property located in a platted subdivision or addition,

regardless of whether the subdivision or addition is recorded,

states the name by which the land is generally known with

reference to that subdivision or addition; or

(3) by reference adopts the description of the property

contained in the judgment.

(g) For publishing a notice of sale, a newspaper may charge a

rate that does not exceed the greater of:

(1) two cents per word; or

(2) an amount equal to the published word or line rate of that

newspaper for the same class of advertising.

(h) If there is not a newspaper published in the county of the

sale, or a newspaper that will publish the notice of sale for the

rate authorized by Subsection (g), the officer shall post the

notice in writing in three public places in the county not later

than the 20th day before the date of the sale. One of the notices

must be posted at the door of the county courthouse.

(i) The owner of real property subject to sale may file with the

officer charged with the sale a written request that the property

be divided and that only as many portions be sold as necessary to

pay the amount due against the property, as calculated under

Subsection (b). In the request the owner shall describe the

desired portions and shall specify the order in which the

portions should be sold. The owner may not specify more than four

portions or a portion that divides a building or other contiguous

improvement. The request must be delivered to the officer not

later than the seventh day before the date of the sale.

(j) If a bid sufficient to pay the lesser of the amount

calculated under Subsection (b) or the adjudged value is not

received, the taxing unit that requested the order of sale may

terminate the sale. If the taxing unit does not terminate the

sale, the officer making the sale shall bid the property off to

the taxing unit that requested the order of sale, unless

otherwise agreed by each other taxing unit that is a party to the

judgment, for the aggregate amount of the judgment against the

property or for the market value of the property as specified in

the judgment, whichever is less. The duty of the officer

conducting the sale to bid off the property to a taxing unit

under this subsection is self-executing. The actual attendance of

a representative of the taxing unit at the sale is not a

prerequisite to that duty.

(k) The taxing unit to which the property is bid off takes title

to the property for the use and benefit of itself and all other

taxing units that established tax liens in the suit. The taxing

unit's title includes all the interest owned by the defendant,

including the defendant's right to the use and possession of the

property, subject only to the defendant's right of redemption.

Payments in satisfaction of the judgment and any costs or

expenses of the sale may not be required of the purchasing taxing

unit until the property is redeemed or resold by the purchasing

taxing unit.

(l) Notwithstanding that property is bid off to a taxing unit

under this section, a taxing unit that established a tax lien in

the suit may continue to enforce collection of any amount for

which a former owner of the property is liable to the taxing

unit, including any post-judgment taxes, penalties, and interest,

in any other manner provided by law.

(m) The officer making the sale shall prepare a deed to the

purchaser of real property at the sale, to any other person whom

the purchaser may specify, or to the taxing unit to which the

property was bid off. The taxing unit that requested the order of

sale may elect to prepare a deed for execution by the officer. If

the taxing unit prepares the deed, the officer shall execute that

deed. An officer who executes a deed prepared by the taxing unit

is not responsible or liable for any inconsistency, error, or

other defect in the form of the deed. As soon as practicable

after a deed is executed by the officer, the officer shall either

file the deed for recording with the county clerk or deliver the

executed deed to the taxing unit that requested the order of

sale, which shall file the deed for recording with the county

clerk. The county clerk shall file and record each deed filed

under this subsection and after recording shall return the deed

to the grantee.

(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. The deed may be impeached only for

fraud.

(o) If a bid sufficient to pay the amount specified by

Subsection (p) is not received, the officer making the sale, with

the consent of the collector who applied for the tax warrant, may

offer property seized under Subchapter E, Chapter 33, to a person

described by Section 11.181 or 11.20 for less than that amount.

If the property is offered to a person described by Section

11.181 or 11.20, the officer making the sale shall reopen the

bidding at the amount of that person's bid and bid off the

property to the highest bidder. Consent to the sale by the taxing

units entitled to receive proceeds of the sale is not required.

The acceptance of a bid by the officer under this subsection is

conclusive and binding on the question of its sufficiency. An

action to set aside the sale on the grounds that a bid is

insufficient may not be sustained, except that a taxing unit that

participates in distribution of proceeds of the sale may file an

action before the first anniversary of the date of the sale to

set aside the sale on the grounds of fraud or collusion between

the officer making the sale and the purchaser.

(p) Except as provided by Subsection (o), property seized under

Subchapter E, Chapter 33, may not be sold for an amount that is

less than the lesser of the market value of the property as

specified in the warrant or the total amount of taxes, penalties,

interest, costs, and other claims for which the warrant was

issued. If a sufficient bid is not received by the officer making

the sale, the officer shall bid off the property to a taxing unit

in the manner specified by Subsection (j) and subject to the

other provisions of that subsection. A taxing unit that takes

title to property under this subsection takes title for the use

and benefit of that taxing unit and all other taxing units that

established tax liens in the suit or that, on the date of the

seizure, were owed delinquent taxes on the property.

(q) A sale of property under this section to a purchaser other

than a taxing unit:

(1) extinguishes each lien securing payment of the delinquent

taxes, penalties, and interest against that property and included

in the judgment; and

(2) does not affect the personal liability of any person for

those taxes, penalties, and interest included in the judgment

that are not satisfied from the proceeds of the sale.

(r) Except as provided by this subsection, a sale of real

property under this section must take place at the county

courthouse in the county in which the land is located. The

commissioners court of the county may designate an area in the

county courthouse or another location in the county where sales

under this section must take place and shall record any

designated area or other location in the real property records of

the county. If the commissioners court designates an area in the

courthouse or another location in the county for sales, a sale

must occur in that area or at that location. If the commissioners

court does not designate an area in the courthouse or another

location in the county for sales, a sale must occur in the same

area in the courthouse that is designated by the commissioners

court for the sale of real property under Section 51.002,

Property Code.

(s) To the extent of a conflict between this section and a

provision of the Texas Rules of Civil Procedure that relates to

an execution, this section controls.

Acts 1979, 66th Leg., p. 2297, ch. 841, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1989, 71st Leg., ch. 796, Sec. 32, eff.

June 15, 1989; Acts 1991, 72nd Leg., ch. 854, Sec. 2, eff. June

16, 1991; Acts 1995, 74th Leg., ch. 1017, Sec. 2, eff. Aug. 28,

1995; Acts 1997, 75th Leg., ch. 914, Sec. 2, eff. Sept. 1, 1997;

Acts 1999, 76th Leg., ch. 817, Sec. 2, eff. Sept. 1, 1999; Acts

1999, 76th Leg., ch. 1481, Sec. 24, eff. Sept. 1, 1999; Acts

2001, 77th Leg., ch. 1430, Sec. 26, eff. Sept. 1, 2001; Acts

2003, 78th Leg., ch. 319, Sec. 8, eff. June 18, 2003.

Sec. 34.015. PERSONS ELIGIBLE TO PURCHASE REAL PROPERTY. (a)

In this section, "person" does not include a taxing unit or an

individual acting on behalf of a taxing unit.

(b) An officer conducting a sale of real property under Section

34.01 may not execute a deed in the name of or deliver a deed to

any person other than the person who was the successful bidder.

The officer may not execute or deliver a deed to the purchaser of

the property unless the purchaser exhibits to the officer an

unexpired written statement issued under this section to the

person by the county assessor-collector of the county in which

the sale is conducted showing that:

(1) there are no delinquent taxes owed by the person to that

county; and

(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.

assessor-collector shall issue a written statement stating

whether there are any delinquent taxes owed by the person to that

county or to a school district or municipality having territory

in that county. A request for the issuance of a statement by the

county assessor-collector under this subsection must:

(1) sufficiently identify any property subject to taxation by

the county or by a school district or municipality having

territory in the county, regardless of whether the property is

located in the county, that the person owns or formerly owned so

that the county assessor-collector and the collector for each

school district or municipality having territory in the county

may determine whether the property is included on a current or a

cumulative delinquent tax roll for the county, the school

district, or the municipality under Section 33.03;

(2) specify the address to which the county assessor-collector

should send the statement;

(3) include any additional information reasonably required by

the county assessor-collector; and

(4) be sworn to and signed by the person requesting the

statement.

(d) On receipt of a request under Subsection (c), the county

assessor-collector shall send to the collector for each school

district and municipality having territory in the county, other

than a school district or municipality for which the county

assessor-collector is the collector, a request for information as

to whether there are any delinquent taxes owed by the person to

that school district or municipality. The county

assessor-collector shall specify the date by which the collector

must respond to the request.

(e) If the county assessor-collector determines that there are

delinquent taxes owed to the county, the county

assessor-collector shall include in the statement issued under

Subsection (c) the amount of delinquent taxes owed by the person

to that county. If the county assessor-collector is the collector

for a school district or municipality having territory in the

county and the county assessor-collector determines that there

are delinquent ad valorem taxes owed by the person to the school

district or municipality, the assessor-collector shall include in

the statement issued under Subsection (c) the amount of

delinquent taxes owed by the person to that school district or

municipality.

(f) If the county assessor-collector receives a response from

the collector for a school district or municipality having

territory in the county indicating that there are delinquent

taxes owed to that school district or municipality on the

person's current or former property for which the person is

personally liable, the county assessor-collector shall include in

the statement issued under Subsection (c):

(1) the amount of delinquent taxes owed by the person to that

school district or municipality; and

(2) the name and address of the collector for that school

district or municipality.

(g) If the county assessor-collector determines that there are

no delinquent taxes owed by the person to the county or to a

school district or municipality for which the county

assessor-collector is the collector, the county

assessor-collector shall indicate in the statement issued under

Subsection (c) that there are no delinquent ad valorem taxes owed

by the person to the county or to the school district or

municipality.

(h) If the county assessor-collector receives a response from

the collector for any school district or municipality having

territory in that county indicating that there are no delinquent

ad valorem taxes owed by the person to that school district or

municipality, the county assessor-collector shall indicate in the

statement issued under Subsection (c) that there are no

delinquent ad valorem taxes owed by the person to that school

district or municipality.

(i) If the county assessor-collector does not receive a response

from the collector for any school district or municipality to

whom the county assessor-collector sent a request under

Subsection (d) as to whether there are delinquent taxes on the

person's current or former property owed by the person to that

school district or municipality, the county assessor-collector

shall indicate in the statement issued under Subsection (c) that

there are no reported delinquent taxes owed by the person to that

school district or municipality.

(j) To cover the costs associated with the issuance of

statements under Subsection (c), a county assessor-collector may

charge the person requesting a statement a fee not to exceed $10

for each statement requested.

(k) A statement under Subsection (c) must be issued in the name

of the requestor, bear the requestor's name, include the dates of

issuance and expiration, and be eligible for recording under

Section 12.001(b), Property Code. A statement expires on the 90th

day after the date of issuance.

(k-1) If within six months of the date of a sale of real

property under Section 34.01, the successful bidder does not

exhibit to the officer who conducted the sale an unexpired

statement that complies with Subsection (k), the officer who

conducted the sale shall provide a copy of the officer's return

to the county assessor-collector for each county in which the

real property is located. On receipt of the officer's return,

the county assessor-collector shall file the copy with the county

clerk of the county in which the county assessor-collector

serves. The county clerk shall record the return in records kept

for that purpose and shall index and cross-index the return in

the name of the successful bidder at the auction and each former

owner of the property. The chief appraiser of each appraisal

district that appraises the real property for taxation may list

the successful bidder in the appraisal records of that district

as the owner of the property.

(l) The deed executed by the officer conducting the sale must

name the successful bidder as the grantee and recite that the

successful bidder exhibited to that officer an unexpired written

statement issued to the person in the manner prescribed by this

section, showing that the county assessor-collector of the county

in which the sale was conducted determined that:

(1) there are no delinquent ad valorem taxes owed by the person

to that county; and

(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.

(m) If a deed contains the recital required by Subsection (l),

it is conclusively presumed that this section was complied with.

(n) A person who knowingly violates this section commits an

offense. An offense under this subsection is a Class B

misdemeanor.

(o) To the extent of a conflict between this section and any

other law, this section controls.

(p) This section applies only to a sale of real property under

Section 34.01 that is conducted in:

(1) a county with a population of 250,000 or more; or

(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.

Added by Acts 2003, 78th Leg., ch. 1010, Sec. 2, eff. Sept. 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

86, Sec. 2, eff. May 17, 2005.

Acts 2005, 79th Leg., Ch.

1147, Sec. 1, eff. June 18, 2005.

Sec. 34.02. DISTRIBUTION OF PROCEEDS. (a) The proceeds of a

tax sale under Section 33.94 or 34.01 shall be applied in the

order prescribed by Subsection (b). The amount included under

each subdivision of Subsection (b) must be fully paid before any

of the proceeds may be applied to the amount included under a

subsequent subdivision.

(b) The proceeds shall be applied to:

(1) the costs of advertising the tax sale;

(2) any fees ordered by the judgment to be paid to an appointed

attorney ad litem;

(3) the original court costs payable to the clerk of the court;

(4) the fees and commissions payable to the officer conducting

the sale;

(5) the expenses incurred by a taxing unit in determining

necessary parties and in procuring necessary legal descriptions

of the property if those expenses were awarded to the taxing unit

by the judgment under Section 33.48(a)(4);

(6) the taxes, penalties, interest, and attorney's fees that are

due under the judgment; and

(7) any other amount awarded to a taxing unit under the

judgment.

included under any subdivision of Subsection (b), each

participant in the amount included under that subdivision is

entitled to a share of the proceeds in an amount equal to the

proportion its entitlement bears to the total amount included

under that subdivision.

(d) The officer conducting a sale under Section 33.94 or 34.01

shall pay any excess proceeds after payment of all amounts due

all participants in the sale as specified by Subsection (b) to

the clerk of the court issuing the warrant or order of sale.

(e) In this section, "taxes" includes a charge, fee, or expense

that is expressly authorized by Section 32.06 or 32.065.

Acts 1979, 66th Leg., p. 2297, ch. 841, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1995, 74th Leg., ch. 131, Sec. 2, eff.

Sept. 1, 1995; Acts 1999, 76th Leg., ch. 1481, Sec. 25, eff.

Sept. 1, 1999; Acts 2003, 78th Leg., ch. 319, Sec. 9, eff. June

18, 2003.

Sec. 34.021. DISTRIBUTION OF EXCESS PROCEEDS IN OTHER TAX

FORECLOSURE PROCEEDINGS. A person conducting a sale for the

foreclosure of a tax lien under Rule 736 of the Texas Rules of

Civil Procedure shall, within 10 days of the sale, pay any excess

proceeds after payment of all amounts due all participants in the

sale to the clerk of the court that issued the order authorizing

the sale. The excess proceeds from such a sale shall be handled

according to Sections 34.03 and 34.04 of this code.

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

254, Sec. 1, eff. September 1, 2009.

Sec. 34.03. DISPOSITION OF EXCESS PROCEEDS. (a) The clerk of

the court shall:

(1) if the amount of excess proceeds is more than $25, before

the 31st day after the date the excess proceeds are received by

the clerk, send by certified mail, return receipt requested, a

written notice to the former owner of the property, at the former

owner's last known address according to the records of the court

or any other source reasonably available to the court, that:

(A) states the amount of the excess proceeds;

(B) informs the former owner of that owner's rights to claim the

excess proceeds under Section 34.04; and

Section 34.04; and

(2) regardless of the amount, keep the excess proceeds paid into

court as provided by Section 34.02(c) for a period of two years

after the date of the sale unless otherwise ordered by the court.

(b) If no claimant establishes entitlement to the proceeds

within the period provided by Subsection (a), the clerk shall

distribute the excess proceeds to each taxing unit participating

in the sale in an amount equal to the proportion its taxes,

penalties, and interests bear to the total amount of taxes,

penalties, and interest due all participants in the sale.

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.

Acts 1979, 66th Leg., p. 2298, ch. 841, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1981, 67th Leg., 1st C.S., p. 169, ch. 13,

Sec. 132, eff. Jan. 1, 1982; Acts 1999, 76th Leg., ch. 1185, Sec.

1, eff. Sept. 1, 1999.

Sec. 34.04. CLAIMS FOR EXCESS PROCEEDS. (a) A person,

including a taxing unit, may file a petition in the court that

ordered the seizure or sale setting forth a claim to the excess

proceeds. The petition must be filed before the second

anniversary of the date of the sale of the property. The petition

is not required to be filed as an original suit separate from the

underlying suit for seizure of the property or foreclosure of a

tax lien on the property but may be filed under the cause number

of the underlying suit.

(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.

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

(5) to each former owner of the property, as the interest of

each may appear, provided that the former owner:

(A) was a defendant in the judgment;

(B) is related within the third degree by consanguinity or

affinity to a former owner that was a defendant in the judgment;

property of a former owner that was a defendant in the judgment.

(c-1) Except as provided by Subsections (c)(5)(B) and (C), a

former owner of the property that acquired an interest in the

property after the date of the judgment may not establish a claim

to the proceeds. For purposes of this subsection, a former owner

of the property is considered to have acquired an interest in the

property after the date of the judgment if the deed by which the

former owner acquired the interest was recorded in the real

property records of the county in which the property is located

after the date of the judgment.

(d) Interest or costs may not be allowed under this section.

(e) An order under this section directing that all or part of

the excess proceeds be paid to a party is appealable.

(f) A person may not take an assignment or other transfer of an

owner's claim to excess proceeds unless:

(1) the assignment or transfer is taken on or after the 36th day

after the date the excess proceeds are deposited in the registry

of the court;

(2) the assignment or transfer is in writing and signed by the

assignor or transferor;

(3) the assignment or transfer is not the result of an in-person

or telephone solicitation;

(4) the assignee or transferee pays the assignor or transferor

on the date of the assignment or transfer an amount equal to at

least 80 percent of the amount of the assignor's or transferor's

claim to the excess proceeds; and

(5) the assignment or transfer document contains a sworn

statement by the assignor or transferor affirming:

(A) that the assignment or transfer was given voluntarily;

(B) the date on which the assignment or transfer was made and

that the date was not earlier than the 36th day after the date

the excess proceeds were deposited in the registry of the court;

the clerk required by Section 34.03;

(D) the nature and specific amount of consideration given for

the assignment or transfer;

(E) the circumstances under which the excess proceeds are in the

registry of the court;

(F) the amount of the claim to excess proceeds in the registry

of the court;

(G) that the assignor or transferor has made no other

assignments or transfers of the assignor's or transferor's claim

to the excess proceeds;

(H) that the assignor or transferor knows that the assignor or

transferor may retain counsel; and

(I) that the consideration was paid in full on the date of the

assignment or transfer and that the consideration paid was an

amount equal to at least 80 percent of the amount of the

assignor's or transferor's claim to the excess proceeds.

(g) An assignee or transferee who obtains excess proceeds

without complying with Subsection (f) is liable to the assignor

or transferor for the amount of excess proceeds obtained plus

attorney's fees and expenses. An assignee or transferee who

attempts to obtain excess proceeds without complying with

Subsection (f) is liable to the assignor or transferor for

attorney's fees and expenses.

(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. If

the original assignment or transfer document is lost, the

assignee or transferee must obtain the presence of the assignor

or transferor to testify at the hearing. In addition, the

assignee or transferee must produce at the hearing the original

of any evidence verifying the payment of the consideration given

for the assignment or transfer. If the original of any evidence

of the payment is lost or if the payment was in cash, the

assignee or transferee must obtain the presence of the assignor

or transferor to testify at the hearing.

(i) A fee charged by an attorney to obtain excess proceeds for

an owner may not be greater than 25 percent of the amount

obtained or $1,000, whichever is less. A person who is not an

attorney may not charge a fee to obtain excess proceeds for an

owner.

(j) The amount of the excess proceeds the court may order be

paid to an assignee or transferee may not exceed 125 percent of

the amount the assignee or transferee paid the assignor or

transferor on the date of the assignment or transfer.

Acts 1979, 66th Leg., p. 2298, ch. 841, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1983, 68th Leg., p. 4829, ch. 851, Sec. 26,

eff. Aug. 29, 1983; Acts 1999, 76th Leg., ch. 1185, Sec. 2, eff.

Sept. 1, 1999; Acts 1999, 76th Leg., ch. 1481, Sec. 26, eff.

Sept. 1, 1999; Acts 2001, 77th Leg., ch. 1420, Sec. 18.007, eff.

Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1430, Sec. 27, eff.

Sept. 1, 2001; Acts 2003, 78th Leg., ch. 319, Sec. 10, eff. June

18, 2003.

Amended by:

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

254, Sec. 2, eff. September 1, 2009.

Sec. 34.05. RESALE BY TAXING UNIT. (a) If property is sold to

a taxing unit that is a party to the judgment, the taxing unit

may sell the property at any time by public or private sale. In

selling the property, the taxing unit may, but is not required

to, use the procedures provided by Section 263.001, Local

Government Code, or Section 272.001, Local Government Code. The

sale is subject to any right of redemption of the former owner.

The redemption period begins on the date the deed to the taxing

unit is filed for record.

(b) Property sold pursuant to Subsections (c) and (d) of this

section may be sold for any amount. This subsection does not

authorize a sale of property in violation of Section 52, Article

III, Texas Constitution.

governing body may request the sheriff or a constable to sell the

property at a public sale. If the purchasing taxing unit has not

sold the property within six months after the date on which the

owner's right of redemption terminates, any taxing unit that is

entitled to receive proceeds of the sale by resolution of its

governing body may request the sheriff or a constable in writing

to sell the property at a public sale. On receipt of a request

made under this subsection, the sheriff or constable shall sell

the property as provided by Subsection (d), unless the property

is sold under Subsection (h) or (i) before the date set for the

public sale.

(d) Except as provided by this subsection, all public sales

requested as provided by Subsection (c) shall be conducted in the

manner prescribed by the Texas Rules of Civil Procedure for the

sale of property under execution. The notice of the sale must

contain a description of the property to be sold, the number and

style of the suit under which the property was sold at the tax

foreclosure sale, and the date of the tax foreclosure sale. The

description of the property in the notice is sufficient if it is

stated in the manner provided by Section 34.01(f). If the

commissioners court of a county by order specifies the date or

time at which or location in the county where a public sale

requested under Subsection (c) shall be conducted, the sale shall

be conducted on the date and at the time and location specified

in the order. The acceptance of a bid by the officer conducting

the sale is conclusive and binding on the question of its

sufficiency. An action to set aside the sale on the grounds that

the bid is insufficient may not be sustained in court, except

that a taxing unit that participates in distribution of proceeds

of the sale may file an action before the first anniversary of

the date of the sale to set aside the sale on the grounds of

fraud or collusion between the officer making the sale and the

purchaser. On conclusion of the sale, the officer making the sale

shall prepare a deed to the purchaser. The taxing unit that

requested the sale may elect to prepare a deed for execution by

the officer. If the taxing unit prepares the deed, the officer

shall execute that deed. An officer who executes a deed prepared

by the taxing unit is not responsible or liable for any

inconsistency, error, or other defect in the form of the deed. As

soon as practicable after a deed is executed by the officer, the

officer shall either file the deed for recording with the county

clerk or deliver the executed deed to the taxing unit that

requested the sale, which shall file the deed for recording with

the county clerk. The county clerk shall file and record each

deed under this subsection and after recording shall return the

deed to the grantee.

(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 conveyance shall be made subject to any

remaining right of redemption at the time of the sale.

(f) An action attacking the validity of a resale of property

pursuant to this section may not be instituted after the

expiration of one year after the date of the resale.

(g) A taxing unit to which property is bid off may recover its

costs of upkeep, maintenance, and environmental cleanup from the

resale proceeds without further court order.

(h) In lieu of a sale pursuant to Subsections (c) and (d) of

this section, the taxing unit that purchased the property may

sell the property at a private sale. Consent of each taxing unit

entitled to receive proceeds of the sale under the judgment is

not required. Property sold under this subsection may not be sold

for an amount that is less than the lesser of:

(1) the market value specified in the judgment of foreclosure;

(2) the total amount of the judgments against the property.

(i) In lieu of a sale pursuant to Subsections (c) and (d) of

this section, the taxing unit that purchased the property may

sell the property at a private sale for an amount less than

required under Subsection (h) of this section with the consent of

each taxing unit entitled to receive proceeds of the sale under

the judgment. This subsection does not authorize a sale of

property in violation of Section 52, Article III, Texas

Constitution.

Acts 1979, 66th Leg., p. 2298, ch. 841, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1983, 68th Leg., p. 4829, ch. 851, Sec. 27,

eff. Aug. 29, 1983; Acts 1995, 74th Leg., ch. 499, Sec. 1, eff.

Aug. 28, 1995; Acts 1997, 75th Leg., ch. 310, Sec. 1, eff. Sept.

1, 1997; Acts 1997, 75th Leg., ch. 712, Sec. 3, 4, eff. June 17,

1997; Acts 1997, 75th Leg., ch. 906, Sec. 9, eff. Jan. 1, 1998;

Acts 1997, 75th Leg., ch. 1111, Sec. 5, 8, eff. Sept. 1, 1997;

Acts 1997, 75th Leg., ch. 1136, Sec. 2, eff. Sept. 1, 1997; Acts

1997, 75th Leg., ch. 1192, Sec. 2, eff. Sept. 1, 1997; Acts 1999,

76th Leg., ch. 1481, Sec. 27 to 29, 42(2), eff. Sept. 1, 1999;

Acts 2001, 77th Leg., ch. 1430, Sec. 28, eff. Sept. 1, 2001.

Sec. 34.051. RESALE BY TAXING UNIT FOR THE PURPOSE OF URBAN

REDEVELOPMENT. (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).

(b) Any taxing unit may enter into an interlocal agreement with

the municipality for the resale of tax foreclosed properties to

be used for a purpose consistent with the municipality's urban

redevelopment plans or the municipality's affordable housing

policy. If the tax foreclosed property is resold pursuant to this

section to be used for a purpose consistent with the

municipality's urban redevelopment plan or affordable housing

policy, the deed of conveyance must refer to or set forth the

applicable terms of the urban redevelopment plan or affordable

housing policy. Any such interlocal agreement should include the

following:

(1) a general statement and goals of the municipality's urban

redevelopment plans or affordable housing policy, as applicable;

(2) a statement that the interlocal agreement concerns only tax

foreclosed property that is either vacant or distressed and has a

tax delinquency of six or more years;

(3) a statement that the properties will be used only for a

purpose consistent with an urban redevelopment plan or affordable

housing policy, as applicable, that is primarily aimed at

providing housing for families of low or moderate income;

(4) a statement that the principal goal of the interlocal

agreement is to provide an efficient mechanism for returning

deteriorated or unproductive properties to the tax rolls,

enhancing the value of ownership to the surrounding properties,

and improving the safety and quality of life in deteriorating

neighborhoods; and

(5) a provision that all properties are sold subject to any

right of redemption.

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.

(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.

Added by Acts 1997, 75th Leg., ch. 1136, Sec. 3, eff. Sept. 1,

1997. Amended by Acts 2001, 77th Leg., ch. 819, Sec. 1, eff. June

14, 2001; Acts 2001, 77th Leg., ch. 1430, Sec. 29, eff. Sept. 1,

2001.

Sec. 34.06. DISTRIBUTION OF PROCEEDS OF RESALE. (a) The

proceeds of a resale of property purchased by a taxing unit at a

tax foreclosure sale shall be paid to the purchasing taxing unit.

(b) The proceeds of the resale shall be distributed as required

by Subsections (c)-(e).

the proceeds to reimburse the unit for reasonable costs, as

defined by Section 34.21, incurred by the unit for:

(1) maintaining, preserving, and safekeeping the property;

(2) marketing the property for resale; and

(3) costs described by Subsection (f).

(d) After retaining the amount authorized by Subsection (c), the

purchasing taxing unit shall then pay all costs of the suit and

the sale of the property in the same manner and in the same order

of priority as provided by Sections 34.02(b)(1)-(5).

(e) After making the distribution under Subsection (d), any

remaining balance of the proceeds shall be paid to each taxing

unit participating in the sale in an amount equal to the

proportion each participant's taxes, penalties, and interest bear

to the total amount of taxes, penalties, and interest adjudged to

be due all participants in the sale.

(f) The purchasing taxing unit is entitled to recover from the

proceeds of a resale of the property any cost incurred by the

taxing unit in inspecting the property to determine whether there

is a release or threatened release of solid waste from the

property in violation of Chapter 361, Health and Safety Code, or

a rule adopted or permit or order issued by the Texas Natural

Resource Conservation Commission under that chapter, or a

discharge or threatened discharge of waste or a pollutant into or

adjacent to water in this state from a point of discharge on the

property in violation of Chapter 26, Water Code, or a rule

adopted or permit or order issued by the commission under that

chapter, and in taking action to remove or remediate the release

or threatened release or discharge or threatened discharge

regardless of whether the taxing unit:

(1) was required by law to incur the cost; or

(2) obtained the consent of each taxing unit entitled to receive

proceeds of the sale under the judgment of foreclosure to incur

the cost.

Acts 1979, 66th Leg., p. 2299, ch. 841, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1997, 75th Leg., ch. 38, Sec. 1, eff. May

5, 1997; Acts 1997, 75th Leg., ch. 906, Sec. 10, eff. Jan. 1,

1998; Acts 1997, 75th Leg., ch. 914, Sec. 3, eff. Sept. 1, 1997;

Acts 1999, 76th Leg., ch. 1481, Sec. 30, eff. Sept. 1, 1999; Acts

2003, 78th Leg., ch. 319, Sec. 11, eff. June 18, 2003.

Sec. 34.07. SUBROGATION OF PURCHASER AT VOID SALE. (a) The

purchaser at a void or defective tax sale or tax resale is

subrogated to the rights of the taxing unit in whose behalf the

property was sold or resold to the same extent a purchaser at a

void or defective sale conducted in behalf of a judgment creditor

is subrogated to the rights of the judgment creditor.

(b) Except as provided by Subsection (c), the purchaser at a

void or defective tax sale or tax resale is subrogated to the tax

lien of the taxing unit in whose behalf the property was sold or

resold to the same extent a purchaser at a void or defective

mortgage or other lien foreclosure sale is subrogated to the lien

of the lienholder, and the purchaser is entitled to a

reforeclosure of the lien to which the purchaser is subrogated.

resale paid less than the total amount of the judgment against

the property, the purchaser is subrogated to the tax lien only in

the amount the purchaser paid at the sale or resale.

(d) In lieu of pursuing the subrogation rights provided by this

section to which a purchaser is subrogated, a purchaser at a void

tax sale or tax resale may elect to file an action against the

taxing units to which proceeds of the sale were distributed to

recover an amount from each taxing unit equal to the distribution

of taxes, penalties, interest, and attorney's fees the taxing

unit received. In a suit filed under this subsection, the

purchaser may include a claim for, and is entitled to recover,

any excess proceeds of the sale that remain on deposit in the

registry of the court or, in the alternative, is entitled to have

judgment against any party to whom the excess proceeds have been

distributed. A purchaser who files a suit authorized by this

subsection waives all rights of subrogation otherwise provided by

this section. This subsection applies only to an original

purchaser at a tax sale or resale and only if that purchaser has

not subsequently sold the property to another person.

(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

(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.

(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. In this

subsection:

(1) "Date of sale" means the first Tuesday of the month on which

the sheriff or constable conducted the sale of the property under

Section 34.01.

(2) "Date of resale" means the date on which the grantor's

acknowledgment was taken or, in the case of multiple grantors,

the latest date of acknowledgment by the grantors as shown in the

deed.

Acts 1979, 66th Leg., p. 2299, ch. 841, Sec. 1, eff. Jan. 1,

1982. Amended by Acts 1999, 76th Leg., ch. 1481, Sec. 31, eff.

Sept. 1, 1999; Acts 2001, 77th Leg., ch. 1430, Sec. 30, eff.

Sept. 1, 2001.

Sec. 34.08. CHALLENGE TO VALIDITY OF TAX SALE. (a) A person

may not commence an action that challenges the validity of a tax

sale under this chapter unless the person:

(1) deposits into the registry of the court an amount equal to

the amount of the delinquent taxes, penalties, and interest

specified in the judgment of foreclosure obtained against the

property plus all costs of the tax sale; or

(2) files an affidavit of inability to pay under Rule 145, Texas

Rules of Civil Procedure.

(b) A person may not commence an action challenging the validity

of a tax sale after the time set forth in Section 33.54(a)(1) or

(2), as applicable to the property, against a subsequent

purchaser for value who acquired the property in reliance on the

tax sale. The purchaser may conclusively presume that the tax

sale was valid and shall have full title to the property free and

clear of the right, title, and interest of any person that arose

before the tax sale, subject only to recorded restrictive

covenants and valid easements of record set forth in Section

34.01(n) and subject to applicable rights of redemption.

challenging the validity of a tax sale under Subsection (b) or

any other provision of this title or applicable law, the person

must bring an action no later than two years after the cause of

action accrues to recover real property claimed by another who:

(1) pays applicable taxes on the real property before overdue;

and

(2) claims the property under a registered deed executed

pursuant to Section 34.01.

(d) Subsection (c) does not apply to a claim based on a forged

deed.

Added by Acts 1997, 75th Leg., ch. 1136, Sec. 4, eff. Sept. 1,

1997; Acts 1997 75th Leg., ch. 1192, Sec. 3, eff. Sept. 1, 1997.

Amended by Acts 1999, 76th Leg., ch. 1481, Sec. 32, eff. Sept. 1,

1999.

SUBCHAPTER B. REDEMPTION

Sec. 34.21. RIGHT OF REDEMPTION. (a) The owner of real

property sold at a tax sale to a purchaser other than a taxing

unit that was used as the residence homestead of the owner or

that was land designated for agricultural use when the suit or

the application for the warrant was filed, or the owner of a

mineral interest sold at a tax sale to a purchaser other than a

taxing unit, may redeem the property on or before the second

anniversary of the date on which the purchaser's deed is filed

for record by paying the purchaser the amount the purchaser bid

for the property, the amount of the deed recording fee, and the

amount paid by the purchaser as taxes, penalties, interest, and

costs on the property, plus a redemption premium of 25 percent of

the aggregate total if the property is redeemed during the first

year of the redemption period or 50 percent of the aggregate

total if the property is redeemed during the second year of the

redemption period.

(b) If property that was used as the owner's residence homestead

or was land designated for agricultural use when the suit or the

application for the warrant was filed, or that is a mineral

interest, is bid off to a taxing unit under Section 34.01(j) or

(p) and has not been resold by the taxing unit, the owner having

a right of redemption may redeem the property on or before the

second anniversary of the date on which the deed of the taxing

unit is filed for record by paying the taxing unit:

(1) the lesser of the amount of the judgment against the

property or the market value of the property as specified in that

judgment, plus the amount of the fee for filing the taxing unit's

deed and the amount spent by the taxing unit as costs on the

property, if the property was judicially foreclosed and bid off

to the taxing unit under Section 34.01(j); or

(2) the lesser of the amount of taxes, penalties, interest, and

costs for which the warrant was issued or the market value of the

property as specified in the warrant, plus the amount of the fee

for filing the taxing unit's deed and the amount spent by the

taxing unit as costs on the property, if the property was seized

under Subchapter E, Chapter 33, and bid off to the taxing unit

under Section 34.01(p).

homestead or was land designated for agricultural use when the

suit or the application for the warrant was filed, or that is a

mineral interest, has been resold by the taxing unit under

Section 34.05, the owner of the property having a right of

redemption may redeem the property on or before the second

anniversary of the date on which the taxing unit files for record

the deed from the sheriff or constable by paying the person who

purchased the property from the taxing unit the amount the

purchaser paid for the property, the amount of the fee for filing

the purchaser's deed for record, the amount paid by the purchaser

as taxes, penalties, interest, and costs on the property, plus a

redemption premium of 25 percent of the aggregate total if the

property is redeemed in the first year of the redemption period

or 50 percent of the aggregate total if the property is redeemed

in the second year of the redemption period.

(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. 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. The

owner of the property shall deliver the receipt received from the

taxing unit to the person from whom the property is redeemed.

(e) The owner of real property sold at a tax sale other than

property that was used as the residence homestead of the owner or

that was land designated for agricultural use when the suit or

the application for the warrant was filed, or that is a mineral

interest, may redeem the property in the same manner and by

paying the same amounts as prescribed by Subsection (a), (b),

(c), or (d), as applicable, except that:

(1) the owner's right of redemption may be exercised not later

than the 180th day following the date on which the purchaser's or

taxing unit's deed is filed for record; and

(2) the redemption premium payable by the owner to a purchaser

other than a taxing unit may not exceed 25 percent.

(f) The owner of real property sold at a tax sale may redeem the

real property by paying the required amount as prescribed by this

section to the assessor-collector for the county in which the

property was sold, if the owner of the real property makes an

affidavit stating:

(1) that the period in which the owner's right of redemption

must be exercised has not expired; and

(2) that the owner has made diligent search in the county in

which the property is located for the purchaser at the tax sale

or for the purchaser at resale, and has failed to find the

purchaser, that the purchaser is not a resident of the county in

which the property is located, that the owner and the purchaser

cannot agree on the amount of redemption money due, or that the

purchaser refuses to give the owner a quitclaim deed to the

property.

(f-1) An assessor-collector who receives an affidavit and

payment under Subsection (f) shall accept that the assertions set

out in the affidavit are true and correct. The

assessor-collector receiving the payment shall give the owner a

signed receipt witnessed by two persons. The receipt, when

recorded, is notice to all persons that the property described

has been redeemed. The assessor-collector shall on demand pay

the money received by the assessor-collector to the purchaser. An

assessor-collector is not liable to any person for performing the

assessor-collector's duties under this subsection in reliance on

the assertions contained in an affidavit.

(g) In this section:

(1) "Land designated for agricultural use" means land for which

an application for appraisal under Subchapter C or D, Chapter 23,

has been finally approved.

(2) "Costs" includes:

(A) the amount reasonably spent by the purchaser for

maintaining, preserving, and safekeeping the property, including

the cost of:

(i) property insurance;

(ii) repairs or improvements required by a local ordinance or

building code or by a lease of the property in effect on the date

of the sale;

(iii) discharging a lien imposed by a municipality to secure

expenses incurred by the municipality in remedying a health or

safety hazard on the property;

(iv) dues or assessments for maintenance paid to a property

owners' association under a recorded restrictive covenant to

which the property is subject; and

(v) impact or standby fees imposed under the Local Government

Code or Water Code and paid to a political subdivision; and

(B) if the purchaser is a taxing unit to which the property is

bid off under Section 34.01, personnel and overhead costs

reasonably incurred by the purchaser in connection with

maintaining, preserving, safekeeping, managing, and reselling the

property.

(3) "Purchaser" includes a taxing unit to which property is bid

off under Section 34.01.

(4) "Residence homestead" has the meaning assigned by Section

11.13.

(h) The right of redemption does not grant or reserve in the

former owner of the real property the right to the use or

possession of the property, or to receive rents, income, or other

benefits from the property while the right of redemption exists.

(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. The owner

must make the request in writing and send the request to the

purchaser at the address shown for the purchaser in the

purchaser's deed for the property, or to the business address of

the collector for the taxing unit, as applicable. The purchaser

or the collector shall itemize all amounts spent on the property

in costs and deliver the itemization in writing to the owner not

later than the 10th day after the date the written request is

received. Delivery of the itemization to the owner may be made by

depositing the document in the United States mail, postage

prepaid, addressed to the owner at the address provided in the

owner's written request. Only those amounts included in the

itemization provided to the owner may be allowed as costs for

purposes of redemption.

(j) A quitclaim deed to an owner redeeming property under this

section is not notice of an unrecorded instrument. The grantee of

a quitclaim deed and a successor or assign of the grantee may be

a bona fide purchaser in good faith for value under recording

laws.

(k) The inclusion of dues and assessments for maintenance paid

to a property owners' association within the definition of

"costs" under Subsection (g) may not be construed as:

(1) a waiver of any immunity to which a taxing unit may be

entitled from a suit or from liability for those dues or

assessments; or

(2) authority for a taxing unit to make an expenditure of public

funds in violation of Section 50, 51, or 52(a), Article III, or

Section 3, Article XI, Texas Constitution.

Acts 1979, 66th Leg., p. 2300, ch. 841, Sec. 1, eff. Jan. 1,

1979. Amended by Acts 1989, 71st Leg., ch. 796, Sec. 33, eff.

June 15, 1989; Acts 1991, 72nd Leg., ch. 419, Sec. 1, eff. Aug.

26, 1991; Acts 1993, 73rd Leg., ch. 349, Sec. 1, eff. May 29,

1993; Acts 1997, 75th Leg., ch. 906, Sec. 11, eff. Jan. 1, 1998;

Acts 1997, 75th Leg., ch. 914, Sec. 4, eff. Sept. 1, 1997; Acts

1997, 75th Leg., ch. 1111, Sec. 6, 8, eff. Sept. 1, 1997; Acts

1999, 76th Leg., ch. 1481, Sec. 33, eff. Sept. 1, 1999; Acts

2001, 77th Leg., ch. 231, Sec. 1, eff. May 22, 2001; Acts 2001,

77th Leg., ch. 1430, Sec. 31, eff. Sept. 1, 2001; Acts 2003, 78th

Leg., ch. 319, Sec. 12, eff. June 18, 2003; Acts 2003, 78th Leg.,

ch. 510, Sec. 1, eff. Jan. 1, 2004.

Amended by:

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

374, Sec. 1, eff. September 1, 2009.

Sec. 34.22. EVIDENCE OF TITLE TO REDEEM REAL PROPERTY. (a) A

person asserting ownership of real property sold for taxes is

entitled to redeem the property if he had title to the property

or he was in possession of the property in person or by tenant

either at the time suit to foreclose the tax lien on the property

was instituted or at the time the property was sold. A defect in

the chain of title to the property does not defeat an offer to

redeem.

(b) A person who establishes title to real property that is

superior to the title of one who has previously red

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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