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.