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.
Title: Killeen Texas Petition for Release of Excess Proceeds and Notice of Hearing: A Comprehensive Guide Introduction: The Killeen Texas Petition for Release of Excess Proceeds and Notice of Hearing is an essential legal process that allows individuals or entities to claim surplus funds resulting from a public property sale or foreclosure auction. In this article, we will delve into the details of this petition, its purpose, and the different types that may exist based on specific circumstances or property-related issues in Killeen, Texas. 1. Understanding the Killeen Texas Petition for Release of Excess Proceeds: The Killeen Texas Petition for Release of Excess Proceeds is a legal document filed by interested parties seeking to claim any remaining funds after a property sale or foreclosure auction. These excess proceeds are typically generated when the final bid amount exceeds the outstanding debts and costs associated with the property. 2. Key Elements of the Petition: — Basic Information: The petition includes the petitioner's name, contact details, and any legal representation involved. — Property Details: Specific details about the property, such as address, legal description, and foreclosure sale information. — Petitioner's Interest: A concise explanation of the petitioner's relationship to the property and the basis of their claim on the excess proceeds. — Supporting Documents: Documentation that substantiates the petitioner's claim, such as lien information, mortgage documents, or evidence of ownership. 3. The Notice of Hearing: Alongside the Petition for Release of Excess Proceeds, the petitioner is required to file a Notice of Hearing. This notice informs interested parties, including lien holders or mortgage holders, about the upcoming court hearing. During this hearing, the court will examine the evidence, evaluate claims, and make a decision regarding the distribution of the excess proceeds. 4. Different Types of Petitions for Release of Excess Proceeds and Notice of Hearing: a. Foreclosure Auction Excess Proceeds Petition: Filed when there are remaining funds after a property has been foreclosed and sold at auction. b. Tax Lien Sale Excess Proceeds Petition: Applicable when a property's outstanding tax debts are settled through a tax lien sale, exceeding the amount owed and creating excess funds. c. Mortgage Foreclosure Excess Proceeds Petition: Filed when a property is sold as part of a mortgage foreclosure, and the final bid amount surpasses the outstanding debt and associated costs. Conclusion: The Killeen Texas Petition for Release of Excess Proceeds and Notice of Hearing is a crucial legal process that allows interested parties to claim surplus funds resulting from property sales or foreclosure auctions. Understanding the nuances of this petition, its purpose, and the associated Notice of Hearing helps individuals navigate the complex world of property transactions in Killeen, Texas.
