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By: Carona S.B. No. 1631
(In the Senate - Filed March 11, 2005; March 23, 2005, read
first time and referred to Committee on Intergovernmental
Relations; April 25, 2005, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 5, Nays 0;
April 25, 2005, sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 1631 By: Deuell
A BILL TO BE ENTITLED
AN ACT
relating to the right of redemption after the foreclosure of
certain properties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subsections (d), (i), and (j), Section 209.011,
Property Code, are amended to read as follows:
(d) To redeem property purchased at a sale foreclosing a [by
the] property owners' association's assessment lien [association
at the foreclosure sale], the lot owner must pay to the association
and the third party who purchased the property at the foreclosure
sale, as applicable:
(1) all amounts due the association at the time of the
foreclosure sale;
(2) interest from the date of the foreclosure sale to
the date of redemption on all amounts owed the association and, if
applicable, the third party who purchased the property at the
foreclosure sale to be determined as follows:
(A) for the association, at the rate stated in
the dedicatory instruments for delinquent assessments or, if no
rate is stated, at an annual interest rate of 10 percent; and
(B) for the third party who purchased the
property at the foreclosure sale, at an annual interest rate of 10
percent;
(3) costs incurred by the association in foreclosing
the lien and conveying the property to the redeeming lot owner,
including reasonable attorney's fees;
(4) any assessment levied against the property by the
association after the date of the foreclosure sale;
(5) any reasonable cost incurred by the association
or, if applicable, the third party who purchased the property at the
foreclosure sale, including mortgage payments, repayment of any
other debts secured by the property that were delinquent or in
default on the date of the foreclosure sale, assessment payments,
and costs of repair, maintenance, and leasing of the property; and
(6) the purchase price paid by the association or, if
applicable, the third party who purchased the property at the
foreclosure sale less any amounts due the association under
Subdivision (1) that were satisfied out of foreclosure sale
proceeds.
(i) If the property owners' association purchases the
property at foreclosure, all rent and other income collected by the
association from the date of the foreclosure sale to the date of
redemption shall be credited toward the amount owed the association
under Subsection (d), and if there are excess proceeds, they shall
be refunded to the lot owner. If a person other than the
association purchases the property at foreclosure, all rent and
other income collected by the purchaser from the date of the
foreclosure sale to the date of redemption shall be credited toward
the amount owed the purchaser under Subsection (d) [(e)], and if
there are excess proceeds, those proceeds shall be refunded to the
lot owner.
(j) If a person other than the property owners' association
is the purchaser at the foreclosure sale, before executing a deed
transferring the property to the redeeming lot owner, the purchaser
shall obtain an affidavit from the association or its authorized
agent stating that all amounts owed the association under
Subsection (d) [(e)] have been paid. The association shall provide
the purchaser with the affidavit not later than the 10th day after
the date the association receives all amounts owed to the
association under Subsection (d) [(e)]. Failure of a purchaser to
comply with this subsection does not affect the validity of a
redemption by a redeeming lot owner.
SECTION 2. Subsection (e), Section 209.011, Property Code,
is repealed.
SECTION 3. This Act takes effect September 1, 2005.
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