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A BILL TO BE ENTITLED
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AN ACT
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relating to the resale by a taxing unit of real property that is |
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sold to the taxing unit 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. Sections 34.05(d), (e), and (i), Tax Code, are |
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amended to read as follows: |
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(d) Except as provided by this subsection, all public sales |
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requested as provided by Subsection (c) shall be conducted in the |
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manner prescribed by the Texas Rules of Civil Procedure for the sale |
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of property under execution. The notice of the sale must contain a |
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description of the property to be sold, the number and style of the |
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suit under which the property was sold at the tax foreclosure sale, |
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and the date of the tax foreclosure sale. The description of the |
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property in the notice is sufficient if it is stated in the manner |
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provided by Section 34.01(f). If applicable, the notice must |
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describe any reservation of an interest in the mineral estate in the |
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property or of an easement that will be included in the deed to the |
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property as authorized by Subsection (e). If the commissioners |
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court of a county by order specifies the date or time at which or |
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location in the county where a public sale requested under |
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Subsection (c) shall be conducted, the sale shall be conducted on |
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the date and at the time and location specified in the order. The |
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acceptance of a bid by the officer conducting the sale is conclusive |
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and binding on the question of its sufficiency. An action to set |
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aside the sale on the grounds that the bid is insufficient may not |
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be sustained in court, except that a taxing unit that participates |
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in distribution of proceeds of the sale may file an action before |
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the first anniversary of the date of the sale to set aside the sale |
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on the grounds of fraud or collusion between the officer making the |
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sale and the purchaser. On conclusion of the sale, the officer |
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making the sale shall prepare a deed to the purchaser. The taxing |
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unit that requested the sale may elect to prepare a deed for |
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execution by the officer. If the taxing unit prepares the deed, the |
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officer shall execute that deed. An officer who executes a deed |
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prepared by the taxing unit is not responsible or liable for any |
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inconsistency, error, or other defect in the form of the deed. As |
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soon as practicable after a deed is executed by the officer, the |
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officer shall either file the deed for recording with the county |
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clerk or deliver the executed deed to the taxing unit that requested |
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the sale, which shall file the deed for recording with the county |
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clerk. The county clerk shall file and record each deed under this |
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subsection and after recording shall return the deed to the |
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grantee. |
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(e) The presiding officer of a taxing unit selling real |
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property under Subsection (h) or (i), under Section 34.051, or |
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under Section 253.010, Local Government Code, or the sheriff or |
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constable selling real property under Subsections (c) and (d) shall |
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execute a deed to the property conveying to the purchaser the right, |
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title, and interest acquired or held by each taxing unit that was a |
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party to the judgment foreclosing tax liens on the property, except |
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that the deed may reserve to each of those taxing units the right, |
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title, and interest acquired or held by each of those taxing units |
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in the mineral estate in the property and may reserve on behalf of |
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any of those taxing units as necessary an easement for navigation or |
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for a water, sewer, or drainage facility. The conveyance shall be |
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made subject to any remaining right of redemption at the time of the |
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sale. |
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(i) In lieu of a sale pursuant to Subsections (c) and (d) [of
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this section], the taxing unit that purchased the property may sell |
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the property at a private sale for an amount less than required |
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under Subsection (h) after providing written notice to [of this
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section with the consent of] each taxing unit entitled to receive |
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proceeds of the sale under the judgment. This subsection does not |
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authorize a sale of property in violation of Section 52, Article |
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III, Texas Constitution. |
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SECTION 2. This Act takes effect September 1, 2007. |