HBA-CCH, MPM, KDB H.B. 858 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 858
By: Dutton
Urban Affairs
7/19/2001
Enrolled



BACKGROUND AND PURPOSE 

State law allows municipalities to resell tax foreclosed property.  It also
allows other taxing units party to a foreclosure to enter into an agreement
with a municipality to sell such property for certain purposes. However,
prior to the 77th Legislature, municipalities were sometimes unable to
present a clear title to the property to a purchaser.  This may have
presented a barrier to those who purchased the property, dissuading
potential purchasers from attempting to buy foreclosed properties, and
potentially undermining urban redevelopment efforts.  House Bill 858
conveys a deed of foreclosed property to a purchaser at the time it is
sold. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 858 amends the Tax Code to provide that the deed of conveyance
of  foreclosed property that is sold by a municipality conveys to the
purchaser the right, title, and interest acquired by each taxing unit that
was a party to the judgment of foreclosure, subject to any remaining right
of redemption at the time of the sale. 

EFFECTIVE DATE

June 14, 2001.