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.
Lewisville Texas Petition for Release of Excess Proceeds and Notice of Hearing is a legal document that allows individuals or parties to request the release of excess proceeds from a property sale in Lewisville, Texas. This petition is typically filed after a property has been sold at a tax sale or foreclosure auction and there are leftover funds from the sale. The primary purpose of this petition is to establish a legal process for stakeholders to claim their entitlement to the excess proceeds. It aims to ensure fairness and prevent any potential disputes over the allocation of the surplus funds. By filing this petition, individuals or parties with a legal right or interest in the excess proceeds can request the court's approval to release the funds to them. The Lewisville Texas Petition for Release of Excess Proceeds and Notice of Hearing must contain specific information to help the court evaluate the request thoroughly. The petitioner needs to provide details like their name, address, contact information, and any supporting documents or legal instruments that establish their right to the excess proceeds. Additionally, the petition must include a statement outlining the basis for the claim and why the petitioner believes they are entitled to the funds. In Lewisville, Texas, there may be different types of Petitions for Release of Excess Proceeds and Notice of Hearing, depending on the specific circumstance under which the excess proceeds were generated. Some common variations include: 1. Tax Sale Excess Proceeds Petition: This type of petition is filed when the excess proceeds result from a property sale at a tax auction due to unpaid property taxes. The petitioner, who may be the former property owner or lien holder, would seek to recover the surplus funds. 2. Foreclosure Sale Excess Proceeds Petition: This petition is filed when the excess proceeds are obtained from a foreclosure sale. The petitioner, often the former property owner or junior lien holder, would request the release of the surplus funds. 3. Judgment Lien Excess Proceeds Petition: In cases where a judgment lien is satisfied or released, resulting in excess proceeds from a property sale, the petitioner would file this specific petition to claim their share of the funds. 4. Bankruptcy Excess Proceeds Petition: If excess proceeds arise from the sale of a property during bankruptcy proceedings, an individual or party entitled to these funds would submit a petition under this category. Overall, the Lewisville Texas Petition for Release of Excess Proceeds and Notice of Hearing is crucial for individuals or parties seeking to claim surplus funds following a property sale. It serves as a formal request to the court, outlining the petitioner's rights to these funds and establishes a mechanism for a fair allocation process.
