BILL ANALYSIS H.B. 1125 By: Danburg (Henderson) Economic Development 5-21-95 Senate Committee Report (Unamended) 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. No provision in the law authorizes 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 As proposed, H.B. 1125 authorizes a court-ordered sale of undivided interest in inherited property to a person who has paid all taxes due on the property, including the other co-owners' share and has not received reimbursement from the other co-owners. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. 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 Sec. 29.001. APPLICATION OF CHAPTER. Declares that this chapter applies only to real property that is received by a person as a result of the death of another person by inheritance, under a will, by a joint tenancy with a right of survivorship, or by certain other survivorship agreements; and that is not exempt from forced sale under the constitution or law of this state. Sec. 29.002. PETITION FOR FORCED SALE. (a) Authorizes a person who owns an undivided interest in real property to which this chapter applies to file in the district court in a county in which the property is located a petition for a court order to require another owner of an undivided interest in that property to sell the other owner's interest in the property if 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 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) Requires the petition to contain certain information. Sec. 29.003. HEARING ON PETITION FOR FORCED SALE. Requires the petitioner, at a hearing on the petition filed under Section 29.002, to prove that the petitioner has paid the defendant's share of ad valorem taxes, the petitioner made a demand before the date of the petition that the defendant reimburse the petitioner for the amount of the defendant's share of ad valorem taxes, and the defendant has not reimbursed the petitioner more than half the amount of money the petitioner paid on the defendant's behalf for the defendant's share of ad valorem taxes. Sec. 29.004. COURT-ORDERED SALE. Requires the court, on completion of the hearing on a petition filed under Section 29.002, if the court is satisfied that the petitioner has made the requisite proof under Section 29.003, to enter an order that divests the defendant's interest in the real property that is the subject of the petition and that orders the petitioner to pay to the defendant an amount computed by subtracting the outstanding amount of money the defendant owes to the petitioner for payment of the defendant's share of ad valorem taxes imposed in the property from the fair market value of the defendant's interest in the property as determined by an independent appraiser appointed by the court. Authorizes the court's order to direct the defendant to execute and deliver to the petitioner a deed that conveys to the petitioner the defendant's interest in the property. SECTION 2. Emergency clause. Effective date: upon passage.