74R11713 CLG-F By Danburg H.B. No. 1125 Substitute the following for H.B. No. 1125: By Solomons C.S.H.B. No. 1125 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the forced sale of a co-owner's interest in certain 1-3 real property. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Title 4, Property Code, is amended by adding 1-6 Chapter 29 to read as follows: 1-7 CHAPTER 29. FORCED SALE OF OWNER'S INTEREST IN CERTAIN REAL 1-8 PROPERTY AS REIMBURSEMENT FOR PROPERTY TAXES PAID BY CO-OWNER ON 1-9 OWNER'S BEHALF 1-10 Sec. 29.001. APPLICATION OF CHAPTER. This chapter applies 1-11 only to real property that is: 1-12 (1) received by a person as a result of the death of 1-13 another person: 1-14 (A) by inheritance; 1-15 (B) under a will; 1-16 (C) by a joint tenancy with a right of 1-17 survivorship; or 1-18 (D) by any other survivorship agreement in which 1-19 the interest of the decedent passes to a surviving beneficiary 1-20 other than an agreement between spouses for community property with 1-21 a right of survivorship; and 1-22 (2) not exempt from forced sale under the constitution 1-23 or law of this state. 1-24 Sec. 29.002. PETITION FOR FORCED SALE. (a) A person who 2-1 owns an undivided interest in real property to which this chapter 2-2 applies may file in the district court in a county in which the 2-3 property is located a petition for a court order to require another 2-4 owner of an undivided interest in that property to sell the other 2-5 owner's interest in the property to the person if: 2-6 (1) the person has paid the other owner's share of ad 2-7 valorem taxes imposed on the property for any three years in a 2-8 five-year period; and 2-9 (2) the other owner has not reimbursed the person for 2-10 more than half of the total amount paid by the person for the taxes 2-11 on the owner's behalf. 2-12 (b) The petition must contain: 2-13 (1) a description of the property; 2-14 (2) the name of each owner of the property; 2-15 (3) the interest held by each owner of the property; 2-16 (4) the total amount paid by the petitioner for the 2-17 defendant's share of ad valorem taxes imposed on the property; and 2-18 (5) if applicable, the amount paid by the defendant to 2-19 the petitioner to reimburse the petitioner for paying the 2-20 defendant's share of ad valorem taxes imposed on the property. 2-21 Sec. 29.003. HEARING ON PETITION FOR FORCED SALE. At a 2-22 hearing on a petition filed under Section 29.002, the petitioner 2-23 must prove by clear and convincing evidence that: 2-24 (1) the petitioner has paid the defendant's share of 2-25 ad valorem taxes imposed on the property that is the subject of the 2-26 petition for any three years in a five-year period; 2-27 (2) before the date on which the petition was filed 3-1 the petitioner made a demand that the defendant reimburse the 3-2 petitioner for the amount of the defendant's share of ad valorem 3-3 taxes imposed on the property paid by the petitioner; and 3-4 (3) the defendant has not reimbursed the petitioner 3-5 more than half of the amount of money the petitioner paid on the 3-6 defendant's behalf for the defendant's share of ad valorem taxes 3-7 imposed on the property. 3-8 Sec. 29.004. COURT-ORDERED SALE. On completion of the 3-9 hearing on a petition filed under Section 29.002, if the court is 3-10 satisfied that the petitioner has made the requisite proof under 3-11 Section 29.003, the court shall enter an order that divests the 3-12 defendant's interest in the real property that is the subject of 3-13 the petition and that orders the petitioner to pay to the defendant 3-14 an amount computed by subtracting the outstanding amount of money 3-15 the defendant owes to the petitioner for payment of the defendant's 3-16 share of ad valorem taxes imposed on the property from the fair 3-17 market value of the defendant's interest in the property as 3-18 determined by an independent appraiser appointed by the court. The 3-19 court's order may also direct the defendant to execute and deliver 3-20 to the petitioner a deed that conveys to the petitioner the 3-21 defendant's interest in the property. 3-22 SECTION 2. The importance of this legislation and the 3-23 crowded condition of the calendars in both houses create an 3-24 emergency and an imperative public necessity that the 3-25 constitutional rule requiring bills to be read on three several 3-26 days in each house be suspended, and this rule is hereby suspended, 3-27 and that this Act take effect and be in force from and after its 4-1 passage, and it is so enacted.