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 Fort Worth 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 property foreclosure sale in the city of Fort Worth, Texas. This petition is typically filed by the party or parties claiming entitlement to these excess proceeds. The purpose of the Petition for Release of Excess Proceeds is to inform the court of the claimant's right to receive the surplus funds and request their release. It serves as a formal request to the court to distribute the excess proceeds to the appropriate party or parties. The Notice of Hearing is an integral part of the petition that notifies all interested parties, including creditors and lien holders, of the upcoming court hearing. This notice ensures that all relevant stakeholders are given the opportunity to be heard in regard to the distribution of the surplus funds. It is essential to note that there might be different types of Fort Worth Texas Petition for Release of Excess Proceeds and Notice of Hearing depending on the specific circumstances. Some common variations include: 1. Individual Petition: When an individual homeowner who lost their property to foreclosure claims the surplus funds. 2. Joint Petition: If multiple individuals were involved in the property ownership and wish to assert their right to the excess proceeds. 3. Creditor's Petition: Filed by a creditor or lien holder who has a valid claim and seeks to recover their unpaid debt from the surplus funds. 4. Government Agency Petition: This type of petition is typically submitted by a government agency or municipality holding a lien on the property. In all these cases, the petition should specify the exact amount of surplus funds available and provide supporting documentation to substantiate the claim. Additionally, it should include the names of all parties with a potential interest in the excess proceeds. Once the petition is filed, a notice of hearing is served to all relevant parties, informing them of the scheduled date, time, and location of the court hearing. At the hearing, the court will review the petition, consider any objections or competing claims, and ultimately make a decision on the distribution of the excess proceeds. The court's decision will be binding and enforceable. In summary, the Fort Worth Texas Petition for Release of Excess Proceeds and Notice of Hearing is a legal mechanism used to request the release and distribution of surplus funds resulting from a property foreclosure sale. It ensures that all interested parties have an opportunity to assert their claims and presents an avenue for legal resolution and fair distribution of the excess proceeds.