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 * * * * *