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: Understanding the Mesquite Texas Petition for Release of Excess Proceeds and Notice of Hearing (Guide + Types) Introduction: The Mesquite Texas Petition for Release of Excess Proceeds and Notice of Hearing serves as a crucial legal document for individuals seeking to claim surplus funds resulting from a property foreclosure sale. In this comprehensive guide, we will explore the purpose of this petition, its significance, and the different types of petitions related to excess proceeds and notice of hearing in Mesquite, Texas. 1. What is a Mesquite Texas Petition for Release of Excess Proceeds? A Mesquite Texas Petition for Release of Excess Proceeds is a legal request filed by interested parties seeking the release of any remaining funds after the sale of a foreclosed property. These funds, known as excess proceeds, are distributed to eligible claimants based on their legal rights or financial interests tied to the foreclosed property. 2. Importance of the Petition: The petition plays a crucial role in protecting the rights of claimants and ensuring a fair distribution of the surplus funds. It enables interested parties to assert their rights and stake a claim to the excess proceeds, helping to prevent potential fraud or misappropriation of funds. 3. Notice of Hearing: The Notice of Hearing is an integral part of the Mesquite Texas Petition for Release of Excess Proceeds. It serves as an official notification to all interested parties that a hearing will take place to determine the distribution of the surplus funds. The notice typically contains important details such as the date, time, and location of the hearing, allowing parties to have their say or present any necessary evidence. 4. Types of Mesquite Texas Petitions for Release of Excess Proceeds and Notice of Hearing: a) Individual Claimant Petition: This type of petition is filed by an individual who can establish a valid legal right or financial interest in the surplus funds resulting from the property foreclosure sale. The claimant must provide supporting documentation and attend the hearing to present their case. b) Lien holder Petition: Lien holders, such as mortgage or judgment holders, may file a petition to stake a claim for the excess proceeds related to their outstanding liens on the foreclosed property. These petitions often require substantial documentation to validate the lien holder's claim. c) Taxing Authority Petition: In some cases, tax authorities may file a petition seeking to recover delinquent property taxes from the excess proceeds of the foreclosure sale. Their claims are supported by legal provisions granting priority to tax liens. Conclusion: The Mesquite Texas Petition for Release of Excess Proceeds and Notice of Hearing holds immense importance for individuals and entities seeking to claim surplus funds resulting from property foreclosure sales. By understanding the various types and requirements of these petitions, interested parties can navigate the legal process more effectively and increase their chances of a successful claim.
