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.
Tarrant Texas Petition for Release of Excess Proceeds and Notice of Hearing is a legal document used in Tarrant County, Texas, for the purpose of requesting the release of surplus funds resulting from a property sale. When a property is sold at a foreclosure auction, the bid amount may exceed the amount owed by the delinquent homeowner, leaving an excess of proceeds. The petition enables the rightful parties to claim their portion of these excess funds. The Tarrant Texas Petition for Release of Excess Proceeds and Notice of Hearing serves as a formal request to the court, outlining the details of the property sale and the parties involved. It provides information including the property's address, the auction date, and the exact amount of the excess proceeds. By filing this petition, interested parties, such as the former property owner or other lien holders, can seek their entitlement to a share of the surplus funds. Depending on the specific circumstances, there can be different types of Tarrant Texas Petition for Release of Excess Proceeds and Notice of Hearing. This may include: 1. Petition by Former Property Owner: If the former property owner believes that they are entitled to claim a portion of the excess proceeds, they can file a petition requesting the release of funds. This type of petition would typically include evidence of their ownership, the foreclosure sale details, and any outstanding debt. 2. Petition by Lien holder(s): In cases where there are outstanding liens on the property, the respective lien holder(s) can file a petition to assert their right to a share of the excess proceeds. This type of petition would typically include evidence of their valid lien(s) and supporting documentation. 3. Petition by Junior Lien holder(s): If there are multiple lien holders on the property, the junior lien holder(s) can also file a separate petition, requesting their share of the excess proceeds after the senior lien holder(s) have been satisfied. This petition would need to demonstrate the priority of their lien(s) and other relevant details. 4. Notice of Hearing: The Tarrant Texas Petition for Release of Excess Proceeds and Notice of Hearing serves as a notice to all interested parties, informing them about the scheduled hearing. This notice provides essential information about the hearing date, time, and location, ensuring that everyone involved has an opportunity to present their claims before the court. Overall, the Tarrant Texas Petition for Release of Excess Proceeds and Notice of Hearing is a crucial legal document that facilitates the fair distribution of surplus funds resulting from a property sale. It allows former property owners and other eligible parties to request their rightful share, ensuring transparency and due process in accordance with Texas laws.
