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 Brownsville Texas Petition for Release of Excess Proceeds and Notice of Hearing is a legal document that individuals can utilize in order to claim excess proceeds resulting from a foreclosure sale in Brownsville, Texas. This petition is specifically designed to provide a formal request for the release of any additional funds that have exceeded the amount required to satisfy the debt. The purpose of the Petition for Release of Excess Proceeds is to enable individuals who have a legal interest in the property that was subject to the foreclosure sale to claim any surplus funds for themselves. These excess proceeds typically occur when the property sells for an amount higher than the outstanding debt and associated legal fees. The Petition for Release of Excess Proceeds serves as an official request to the court to release these funds to the rightful owners. The document contains important details such as the name of the petitioner, the property address, the foreclosure case number, and a statement outlining the petitioner's legal interest in the property. In addition to the Petition for Release of Excess Proceeds, the Notice of Hearing is an essential component of the process. This notice informs all interested parties, including lien holders and other potential claimants, about the upcoming hearing regarding the release of excess proceeds. The Notice of Hearing must include specific information such as the hearing date, time, and location, as well as instructions for objections or claims to the excess funds. It's crucial to ensure that the Petition for Release of Excess Proceeds and the accompanying Notice of Hearing are filed correctly and in a timely manner to avoid any potential delays or disputes. Failure to comply with the necessary procedures and deadlines may result in the forfeiture of any claim to the excess proceeds. In summary, the Brownsville Texas Petition for Release of Excess Proceeds and Notice of Hearing is a crucial legal document and notice that enables individuals to claim surplus funds resulting from a foreclosure sale. By understanding and adhering to the specific requirements outlined in these documents, interested parties can take appropriate steps to secure their rightful portion of the excess proceeds.
