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.
Keywords: McKinney, Texas, petition, release of excess proceeds, notice of hearing. Description: The McKinney Texas Petition for Release of Excess Proceeds and Notice of Hearing is a legal document filed in the city of McKinney, Texas, to request the release of excess proceeds from a foreclosure sale or tax sale. This petition is commonly used when there are surplus funds remaining after the sale of a property, which the previous owner or any other party is entitled to claim. The petition aims to inform the court of the intention to collect these excess funds and to schedule a hearing to present the case. There are different types of McKinney Texas Petition for Release of Excess Proceeds and Notice of Hearing depending on the specific circumstances. Some common types include: 1. Petition for Release of Excess Proceeds from Foreclosure Sale: This type of petition is filed when a property has been foreclosed, and there are excess proceeds from the sale. The petitioner, often the previous owner, requests the court to release these funds. 2. Petition for Release of Excess Proceeds from Tax Sale: In the event of a tax sale, where a property is sold to cover unpaid taxes, this petition is filed to claim any surplus funds remaining. 3. Petition for Release of Excess Proceeds from Mortgage Sale: When a property is sold due to mortgage foreclosure, this petition is used to seek the release of any excess proceeds from the sale. The Notice of Hearing accompanying the petition informs all interested parties, including lien holders, potential claimants, and creditors, about the scheduled hearing. This notice ensures that all individuals with a legitimate right to the excess proceeds have an opportunity to attend the hearing and present their claims before the court. In conclusion, the McKinney Texas Petition for Release of Excess Proceeds and Notice of Hearing is a legal document used in McKinney, Texas, to request the release of surplus funds following a foreclosure sale, tax sale, or mortgage sale. Different types of petitions exist based on the specific type of sale involved. The Notice of Hearing serves to notify interested parties of the scheduled hearing to present their claims related to the excess proceeds.
