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.