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 Austin Texas Petition for Release of Excess Proceeds and Notice of Hearing is a legal document filed by individuals or entities seeking to claim any remaining funds after a foreclosure sale of a property in Austin, Texas. This petition is specifically designed for those who believe they are entitled to the surplus funds generated from the auction. When a property is foreclosed upon and sold at a public auction, the sale proceeds are typically used to cover the outstanding mortgage debt, legal fees, and any other related expenses. However, in some cases, the auction price may exceed the total amount owed, resulting in excess proceeds. The petition serves as a formal request to the court to release these excess proceeds to the rightful claimant(s) or allow them to participate in a hearing to argue their case for receiving a portion of the surplus funds. By filing the petition, the claimant asserts their rights to the surplus proceeds and notifies all relevant parties of their intention to pursue the funds. Key components of the Austin Texas Petition for Release of Excess Proceeds and Notice of Hearing include: 1. Identification of the claimant: The petitioner must clearly identify themselves and provide their contact information, including their full name, address, and phone number. 2. Property details: The document must include the exact address of the foreclosed property, the date of the foreclosure sale, and any relevant legal case numbers or references. 3. Statement of entitlement: The petitioner must explain why they believe they are entitled to the excess proceeds. This may include being a lien holder or having a legal interest in the property that entitles them to a share of the funds. 4. Supporting evidence: Any supporting documents, such as copies of liens, deeds, or other legal documents, should be attached to the petition to validate the claimant's entitlement. 5. Notice of Hearing: The petition must include a notice of the scheduled hearing date and time, allowing interested parties to present their cases and contest the claimant's entitlement to the excess proceeds. Different types or variations of the Austin Texas Petition for Release of Excess Proceeds and Notice of Hearing may exist depending on the specific circumstances and parties involved. For instance, there could be variations for lien holders, judgment creditors, former property owners, or other parties with legal claims to the surplus funds. It is essential to consult with an attorney or legal professional familiar with foreclosure laws and procedures in Austin, Texas, to ensure the proper petition is filed accurately and promptly to maximize the chances of a successful claim.
