BILL ANALYSIS
C.S.H.B. 1125
By: Danburg
04-28-95
Committee Report (Substituted)
BACKGROUND
Currently, a person who inherits an undivided interest in real
property must pay all taxes or risk foreclosure on the property if
the other co-owners of the property refuse to pay their share.
There is no provision in state law that would allow a co-heir, who
has paid all the taxes on the inherited property, to force the
other co-owners to sell their undivided interests
PURPOSE
H.B. 1125 allows for a court-ordered sale of undivided interest in
inherited property to a person who has paid all the property taxes
and not received reimbursement.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency or institution.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Title 4, Property Code, by adding Chapter
29 as follows:
CHAPTER 29. FORCED SALE OF OWNER'S INTEREST IN CERTAIN REAL
PROPERTY AS REIMBURSEMENT FOR PROPERTY TAXES PAID BY CO-OWNER ON
OWNER'S BEHALF
Section 29.001. APPLICATION OF CHAPTER. Provides that this
chapter applies only to real property that is:
(1) received by a person as a result of another person's
death by inheritance, under a will, by a joint tenancy with
a right of survivorship; or by any other survivorship
agreement in which the interest of the decedent passes to a
surviving beneficiary with an exception; and
(2) not exempt from forced sale under the constitution or law
of this state.
Section. 29.002. PETITION FOR FORCED SALE. (a) Provides
that a person who owns an undivided interest in real property may
file a petition in the county district court where the property is
located requiring another owner of an undivided interest to sell
the interest in the property to the person if:
(1) the person has paid the other owner's share of ad valorem
taxes imposed on the property for any three years in a five-year
period; and
(2) the other owner has not reimbursed the person for more
than half of the total amount paid by the person for the taxes on
the owner's behalf.
(b) Provides that the petition must contain: (1) a
description of the property; (2) the name of each owner of the
property; (3) the interest held by each property owner; (4) the total amount paid by the petitioner for the defendant's
share of property taxes and (5) the amount paid by the defendant to
the petitioner to reimburse the petitioner for paying the
defendant's share of property taxes.
Section 29.003. HEARING ON PETITION FOR FORCED SALE.
Provides that the petitioner must prove, at a hearing on a petition
filed, clear and convincing evidence that (1) the petitioner paid
the defendant's share of property taxes for any three years in a
five-year period; (2) the petitioner demanded that the defendant
reimburse the petitioner for the amount of the defendant's share of
property taxes paid by the petitioner before the petition was filed
and (3) the defendant has not reimbursed the petitioner more than
half of the money the petitioner paid for the defendant's share of
property taxes.
Section. 29.004. COURT-ORDERED SALE. Requires the court to
enter, at the completion of the hearing, an order requiring the
defendant to divest the defendant's interest in the property, if
the court is satisfied that the petitioner has made the requisite
proof. Requires the petitioner, under court order, to pay the
defendant an amount computed by subtracting the outstanding amount
the defendant owes for the defendant's share of property taxes from
the fair market value of the defendant's interest in the property
as determined by a court appointed independent appraiser. Permits
the court to also direct the defendant to execute and deliver to
the petitioner a deed that conveys the defendant's interest in the
property to the petitioner.
SECTION 2. Emergency clause. Effective date upon passage.
COMPARISON OF ORIGINAL TO SUBSTITUTE
As introduced, H.B. 1125 would have required the petitioner, under
proposed section 29.004, to sell to the petitioner the defendant's
interest in the real property (property) if the court is satisfied
that the petitioner has the necessary proof.
The committee substitute to H.B. 1125 would, instead, require the
court to enter an order requiring divestment of the defendant's
interest in the property. The substitute adds a sentence to
section 29.004 permitting the court to also direct the defendant to
execute and deliver to the petitioner a deed that conveys the
defendant's interest in the property to the petitioner.
SUMMARY OF COMMITTEE ACTION
H.B. 1125 was considered by the Committee on Business and Industry
in a public hearing on April 25, 1995. Testifying in support of the
bill was Maurine Williamson, representing herself.
No one testified against or on the bill. The committee considered
one amendment to the bill. The one (1) committee amendment was
withdrawn. H.B. 1125 was left pending before the committee. H.B.
1125 was reconsidered on pending business by the committee in a
formal meeting on April 28, 1995. The committee considered a
complete committee substitute to the bill. The substitute was
adopted without objection. H.B. 1125 was reported favorably, as
substituted with the recommendation that it do pass and be printed
and be sent to the Committee on Local and Consent Calendars, by a
record vote of 8 (eight) ayes, 0 (zero) nays, 0 (zero) present-not-voting, 1 (one) absent.