1-1 AN ACT
1-2 relating to the sale of real property placed in the name of the
1-3 state as a result of a tax foreclosure sale.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 32.112, Natural Resources Code, is
1-6 amended to read as follows:
1-7 Sec. 32.112. SALE OF TAX FORECLOSURE PROPERTY. (a) All
1-8 real property or any interest in real property placed in the name
1-9 of the state as a result of [a tax] foreclosure of a tax lien,
1-10 whether the property was sold, bid off, or otherwise transferred to
1-11 the state, [sale] may be sold or leased by the board in the same
1-12 manner as provided for the sale or lease of land under Chapter 51,
1-13 free of any lien of a taxing unit that was a party to the judgment
1-14 in the delinquent tax suit involving the property for taxes imposed
1-15 on the property, penalties, or interest that are due the taxing
1-16 unit [of this code].
1-17 (b) A sale of property by the board under this section vests
1-18 in the purchaser of the property good and perfect title to the
1-19 interest in the property owned by the person liable for the
1-20 delinquent taxes. The purchaser has the right to the use and
1-21 possession of the property, subject only to the person's right of
1-22 redemption, a recorded restrictive covenant running with the land,
1-23 and a valid easement of record as of the date the property was
1-24 placed in the name of the state, if the covenant or easement was
2-1 recorded before January 1 of the year in which the tax lien
2-2 attached to the property.
2-3 (c) The board may retain from the proceeds of a sale or
2-4 lease conducted under this section the cost of conducting the
2-5 transaction, including advertising, appraisal, and administrative
2-6 costs. The balance of the proceeds shall be deposited in the State
2-7 Treasury to the credit of the Texas capital trust fund. The board
2-8 is not required to pay any portion of the proceeds to a taxing unit
2-9 that was a party to the judgment in the delinquent tax suit
2-10 involving the property in satisfaction of any taxes imposed on the
2-11 property, penalties, or interest that are due the taxing unit.
2-12 SECTION 2. The importance of this legislation and the
2-13 crowded condition of the calendars in both houses create an
2-14 emergency and an imperative public necessity that the
2-15 constitutional rule requiring bills to be read on three several
2-16 days in each house be suspended, and this rule is hereby suspended,
2-17 and that this Act take effect and be in force from and after its
2-18 passage, and it is so enacted.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1463 was passed by the House on April
10, 1997, by the following vote: Yeas 143, Nays 0, 1 present, not
voting.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 1463 was passed by the Senate on May
26, 1997, by the following vote: Yeas 31, Nays 0.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor