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.
Collin Texas Petition for Release of Excess Proceeds and Notice of Hearing is a legal document used in the Collin County, Texas area for the purpose of distributing excess funds resulting from the sale of a property. This petition is typically filed by parties involved in a foreclosure sale or a tax sale, seeking to claim the surplus funds. The Collin Texas Petition for Release of Excess Proceeds and Notice of Hearing is a crucial step in the legal process of obtaining the surplus funds that remain after all existing liens, taxes, and fees have been satisfied. The petition requests the court to release these funds to the rightful owner or party entitled to receive them. In Collin County, Texas, there are mainly two types of situations where this petition may arise: foreclosure sales and tax sales. 1. Collin Texas Petition for Release of Excess Proceeds and Notice of Hearing — Foreclosure Sale— - This petition is filed when a property is foreclosed upon, and the sale of the property generates more funds than required to satisfy the outstanding mortgage and related expenses. — The petitioner, usually the previous property owner or a lien holder, requests the court to release the excess proceeds from the sale. — The petition must contain details of the foreclosure, the amount of the surplus funds, and evidence supporting the petitioner's claim. 2. Collin Texas Petition for Release of Excess Proceeds and Notice of Hearing — Tax Sale— - This petition is filed when a property is sold at a tax sale, typically due to unpaid property taxes. — After the sale, if the amount obtained exceeds the delinquent taxes and costs, the surplus funds can be claimed through this petition. — The petitioner, often the previous property owner or a lien holder, files the petition, providing information about the tax sale, the amount of surplus funds, and the basis of their entitlement to these funds. In both scenarios, once the Collin Texas Petition for Release of Excess Proceeds and Notice of Hearing is filed, a notice of hearing is issued to all interested parties, such as lien holders, mortgage holders, or any other potential claimants. The notice specifies the date and time of the hearing when the court will decide how to distribute the excess funds. It is essential to include relevant keywords in the content, such as Collin Texas, petition for release of excess proceeds, notice of hearing, foreclosure sale, and tax sale, to optimize search engine visibility and improve accessibility for individuals searching for information related to this legal procedure in Collin County, Texas.
