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 Frisco Texas Petition for Release of Excess Proceeds and Notice of Hearing is a legal document and court procedure that relates to the distribution of funds resulting from the sale of a property after a foreclosure or tax sale. This petition allows eligible parties to claim their share of the excess funds generated from the sale. The process begins when a property is sold at a foreclosure auction or tax sale in Frisco, Texas. If the final sale price exceeds the outstanding loan amount, penalties, and fees, the surplus funds, also known as excess proceeds, are created. The excess proceeds can be claimed by various parties with legal interests in the property, such as the former owner, lien holders, or any other party with a valid claim. The Frisco Texas Petition for Release of Excess Proceeds and Notice of Hearing is filed with the appropriate court in Frisco, Texas. The petitioner must provide detailed information about themselves, the property, and the excess funds being claimed. This includes the property address, sale details, any liens or encumbrances on the property, and the amount being requested. It is important to note that there may be different types of Frisco Texas Petition for Release of Excess Proceeds and Notice of Hearing, depending on the specific circumstances. For instance, if there are multiple claimants seeking a share of the excess proceeds, a joint petition may be filed. Conversely, an individual or single petition may be appropriate if only one party seeks to claim the excess funds. Once the petition is filed, a notice of hearing is issued to all relevant parties. The notice provides information regarding the date, time, and location of the hearing where the court will review the petition and determine the distribution of the excess proceeds. Interested parties must attend the hearing to present their case and provide evidence supporting their claim. During the hearing, the court will review all evidence presented and make decisions regarding the rightful distribution of the excess proceeds. Factors such as lien priority, outstanding debts, and valid claims will be considered. The court's decision will be based on Texas state laws and regulations governing the allocation of excess proceeds. In conclusion, the Frisco Texas Petition for Release of Excess Proceeds and Notice of Hearing is a legal process used to distribute surplus funds resulting from the sale of a property in Frisco, Texas. Various parties with legal interests in the property can file a petition to claim their share of the excess proceeds. Different types of petitions may exist depending on the circumstances, and a hearing is held to determine the rightful distribution of funds.
