Sec. 34.04 of the Texas Tax Code provides in part as follows:
(a) A person, including a taxing unit, may file a petition in the court that ordered the seizure or sale setting forth a claim to the excess proceeds. The petition must be filed before the second anniversary of the date of the sale of the property. The petition is not required to be filed as an original suit separate from the underlying suit for seizure of the property or foreclosure of a tax lien on the property but may be filed under the cause number of the underlying suit.
(b) A copy of the petition shall be served, in the manner prescribed by Rule 21a, Texas Rules of Civil Procedure, as amended, or that rule's successor, on all parties to the underlying action not later than the 20th day before the date set for a hearing on the petition.
(c) At the hearing the court shall order that the proceeds be paid according to the following priorities to each party that establishes its claim to the proceeds:
(1) to the tax sale purchaser if the tax sale has been adjudged to be void and the purchaser has prevailed in an action against the taxing units under Section 34.07(d) by final judgment;
(2) to a taxing unit for any taxes, penalties, or interest that have become due or delinquent on the subject property subsequent to the date of the judgment or that were omitted from the judgment by accident or mistake;
(3) to any other lienholder, consensual or otherwise, for the amount due under a lien, in accordance with the priorities established by applicable law;
(4) to a taxing unit for any unpaid taxes, penalties, interest, or other amounts adjudged due under the judgment that were not satisfied from the proceeds from the tax sale; and
(5) to each former owner of the property, as the interest of each may appear.
(d) Interest or costs may not be allowed under this section.
(e) An order under this section is appealable.
The Dallas Texas Petition for Release of Excess Proceeds and Notice of Hearing is a legal document that pertains to the distribution of surplus funds resulting from a foreclosure sale or tax sale in Dallas, Texas. This petition is filed by individuals or entities claiming a right to those excess proceeds. By submitting this petition, the claimant seeks to obtain a court order for the release of these funds. In Dallas, there are two types of Petition for Release of Excess Proceeds and Notice of Hearing that can be filed: 1. Foreclosure Sale Excess Proceeds Petition: This type of petition applies to foreclosure sales held in Dallas, Texas. When a foreclosed property is sold, the proceeds from the sale are used first to satisfy the mortgage debt, and any remaining funds are considered excess proceeds. Individuals or entities with legal interests in the foreclosed property, such as former owners or lien holders, can file this petition to claim a share of these excess proceeds. 2. Tax Sale Excess Proceeds Petition: This type of petition relates to tax sales conducted in Dallas, Texas. When a property owner fails to pay their property taxes, the county government can hold a tax sale to recover the owed amount. If the property is sold for more than the tax debt, the surplus funds are known as excess proceeds. Any parties with legal claims on the property, including former owners or lien holders, can file this petition to request a portion of the excess proceeds. Both types of Petition for Release of Excess Proceeds and Notice of Hearing require a detailed description of the claimant's interest in the property and supporting documentation to verify their right to the excess funds. This may include deeds, liens, or any other relevant legal documents. The petition must also provide information regarding the specific foreclosure or tax sale, such as the date and location of the sale, the property's legal description, and the amount of excess proceeds being sought. Once the petition is filed, a Notice of Hearing is issued by the court. This notice informs all interested parties, such as other claimants or lien holders, about the upcoming hearing where the judge will review the petition and determine the distribution of the excess proceeds. The notice also includes the date, time, and location of the hearing, allowing interested parties to attend and present their arguments. In conclusion, the Dallas Texas Petition for Release of Excess Proceeds and Notice of Hearing is a crucial legal document that enables individuals or entities with legal claims to excess funds from foreclosure or tax sales to request their share. By filing this petition and attending the subsequent hearing, claimants can present their case to the court and potentially receive a court order authorizing the release of the excess proceeds.
