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A BILL TO BE ENTITLED
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AN ACT
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relating to the priority of a transferred ad valorem tax lien. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 32.05(b) and (b-1), Tax Code, are |
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amended to read as follows: |
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(b) Except as provided by Subsections (b-1) and |
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[Subsection] (c)(1), a tax lien provided by this chapter takes |
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priority over: |
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(1) the claim of any creditor of a person whose |
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property is encumbered by the lien; |
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(2) the claim of any holder of a lien on property |
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encumbered by the tax lien, including any lien held by a property |
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owners' association, homeowners' association, condominium unit |
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owners' association, or council of owners of a condominium regime |
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under a restrictive covenant, condominium declaration, master |
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deed, or other similar instrument that secures regular or special |
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maintenance assessments, fees, dues, interest, fines, costs, |
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attorney's fees, or other monetary charges against the property; |
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and |
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(3) any right of remainder, right or possibility of |
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reverter, or other future interest in, or encumbrance against, the |
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property, whether vested or contingent. |
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(b-1) The priority given to a tax lien by Subsection (b) |
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prevails, regardless of whether the debt, lien, future interest, or |
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other encumbrance existed before attachment of the tax lien, unless |
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the tax lien is transferred to a transferee. Once a tax lien is |
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transferred, the tax lien is inferior to a debt, lien, future |
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interest, or other encumbrance that existed before the attachment |
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of the tax lien. |
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SECTION 2. Section 32.065(b), Tax Code, is amended to read |
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as follows: |
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(b) Notwithstanding any agreement to the contrary, a |
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contract entered into under Subsection (a) between a transferee and |
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the property owner under Section 32.06 that is secured by a |
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[priority] lien on the property shall provide for foreclosure in |
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the manner provided by Section 32.06(c) and: |
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(1) an event of default; |
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(2) notice of acceleration; and |
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(3) recording of the deed of trust or other instrument |
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securing the contract entered into under Subsection (a) in each |
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county in which the property is located. |
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SECTION 3. The change in law made by this Act applies only |
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to a tax lien transferred on or after the effective date of this |
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Act. A tax lien transferred before the effective date of this Act |
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is governed by the law in effect immediately before the effective |
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date of this Act, and that law is continued in effect for that |
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purpose. |
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SECTION 4. This Act takes effect September 1, 2015. |