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A BILL TO BE ENTITLED
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AN ACT
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relating to the contents and effect of a deed conveying property |
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sold at an ad valorem tax sale. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 34, Tax Code, is amended by |
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adding Section 34.052 to read as follows: |
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Sec. 34.052. WARRANTY BY TAXING UNIT. (a) This section |
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applies only to a sale under Section 34.01, 34.05, or 34.051 of real |
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property that has a market value of not more than $100,000 as |
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determined under Section 33.50(a). |
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(b) If the sale is to a purchaser other than a taxing unit, |
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the deed must contain a warranty by the taxing unit selling the |
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property or on whose behalf the property is being sold that the |
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taxing unit will defend the title against an action brought by a |
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defendant in the foreclosure action before the second anniversary |
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of the date the deed is filed of record seeking to invalidate the |
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sale on the ground that: |
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(1) notice of the foreclosure action or of the sale was |
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not given to the defendant or the defendant's attorney in the manner |
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required by law; or |
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(2) the defendant or the defendant's attorney did not |
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receive the notice. |
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SECTION 2. Section 34.07(e), Tax Code, is amended to read as |
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follows: |
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(e) If the purchaser prevails in a suit filed under |
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Subsection (d), the court shall expressly provide in its final |
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judgment that: |
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(1) the tax sale is vacated and set aside; [and] |
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(2) the deed conveying the property to the purchaser |
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is void; and |
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(3) any lien on the property extinguished by the tax |
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sale is reinstated on the property effective as of the date on which |
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the lien originally attached to the property. |
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SECTION 3. The changes in law made by this Act apply only to |
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an ad valorem tax sale conducted on or after the effective date of |
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this Act. An ad valorem tax sale conducted before the effective |
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date of this Act is governed by the law as it existed immediately |
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before the effective date of this Act, and that law is continued in |
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effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2007. |