1-1 By: Danburg (Senate Sponsor - Henderson) H.B. No. 1125
1-2 (In the Senate - Received from the House May 15, 1995;
1-3 May 16, 1995, read first time and referred to Committee on Economic
1-4 Development; May 23, 1995, reported favorably by the following
1-5 vote: Yeas 10, Nays 0; May 23, 1995, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the forced sale of a co-owner's interest in certain
1-9 real property.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Title 4, Property Code, is amended by adding
1-12 Chapter 29 to read as follows:
1-13 CHAPTER 29. FORCED SALE OF OWNER'S INTEREST IN CERTAIN REAL
1-14 PROPERTY AS REIMBURSEMENT FOR PROPERTY TAXES PAID BY CO-OWNER ON
1-15 OWNER'S BEHALF
1-16 Sec. 29.001. APPLICATION OF CHAPTER. This chapter applies
1-17 only to real property that is:
1-18 (1) received by a person as a result of the death of
1-19 another person:
1-20 (A) by inheritance;
1-21 (B) under a will;
1-22 (C) by a joint tenancy with a right of
1-23 survivorship; or
1-24 (D) by any other survivorship agreement in which
1-25 the interest of the decedent passes to a surviving beneficiary
1-26 other than an agreement between spouses for community property with
1-27 a right of survivorship; and
1-28 (2) not exempt from forced sale under the constitution
1-29 or law of this state.
1-30 Sec. 29.002. PETITION FOR FORCED SALE. (a) A person who
1-31 owns an undivided interest in real property to which this chapter
1-32 applies may file in the district court in a county in which the
1-33 property is located a petition for a court order to require another
1-34 owner of an undivided interest in that property to sell the other
1-35 owner's interest in the property to the person if:
1-36 (1) the person has paid the other owner's share of ad
1-37 valorem taxes imposed on the property for any three years in a
1-38 five-year period; and
1-39 (2) the other owner has not reimbursed the person for
1-40 more than half of the total amount paid by the person for the taxes
1-41 on the owner's behalf.
1-42 (b) The petition must contain:
1-43 (1) a description of the property;
1-44 (2) the name of each owner of the property;
1-45 (3) the interest held by each owner of the property;
1-46 (4) the total amount paid by the petitioner for the
1-47 defendant's share of ad valorem taxes imposed on the property; and
1-48 (5) if applicable, the amount paid by the defendant to
1-49 the petitioner to reimburse the petitioner for paying the
1-50 defendant's share of ad valorem taxes imposed on the property.
1-51 Sec. 29.003. HEARING ON PETITION FOR FORCED SALE. At a
1-52 hearing on a petition filed under Section 29.002, the petitioner
1-53 must prove by clear and convincing evidence that:
1-54 (1) the petitioner has paid the defendant's share of
1-55 ad valorem taxes imposed on the property that is the subject of the
1-56 petition for any three years in a five-year period;
1-57 (2) before the date on which the petition was filed
1-58 the petitioner made a demand that the defendant reimburse the
1-59 petitioner for the amount of the defendant's share of ad valorem
1-60 taxes imposed on the property paid by the petitioner; and
1-61 (3) the defendant has not reimbursed the petitioner
1-62 more than half of the amount of money the petitioner paid on the
1-63 defendant's behalf for the defendant's share of ad valorem taxes
1-64 imposed on the property.
1-65 Sec. 29.004. COURT-ORDERED SALE. On completion of the
1-66 hearing on a petition filed under Section 29.002, if the court is
1-67 satisfied that the petitioner has made the requisite proof under
1-68 Section 29.003, the court shall enter an order that divests the
2-1 defendant's interest in the real property that is the subject of
2-2 the petition and that orders the petitioner to pay to the defendant
2-3 an amount computed by subtracting the outstanding amount of money
2-4 the defendant owes to the petitioner for payment of the defendant's
2-5 share of ad valorem taxes imposed on the property from the fair
2-6 market value of the defendant's interest in the property as
2-7 determined by an independent appraiser appointed by the court. The
2-8 court's order may also direct the defendant to execute and deliver
2-9 to the petitioner a deed that conveys to the petitioner the
2-10 defendant's interest in the property.
2-11 SECTION 2. The importance of this legislation and the
2-12 crowded condition of the calendars in both houses create an
2-13 emergency and an imperative public necessity that the
2-14 constitutional rule requiring bills to be read on three several
2-15 days in each house be suspended, and this rule is hereby suspended,
2-16 and that this Act take effect and be in force from and after its
2-17 passage, and it is so enacted.
2-18 * * * * *