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States › Texas › Tax Sale Summary

There are 254 Counties in Texas. It became the 28th state on December 29, 1845. The state motto is "Friendship".

Texas offers tax deeds with a 6 month right of redemption on nonhomestead, nonagricultural and 2 years for homestead, agricultural real estate. The original owner may redeem by paying the purchase price plus a 25% penalty.

Summary: Tax Sales occur after notice has been provided to a person, the person's real property is subject to seizure by a municipality for the payment of delinquent ad valorem taxes, penalties, and interest the person owes on the property (Sec. 33.91, Sec. 33.911) or the bringing of a foreclosure suit. More specifically, at any time after its tax on property becomes delinquent, a taxing unit may file suit to foreclose the lien securing payment of the tax, to enforce personal liability for the tax, or both. The suit must be in a court of competent jurisdiction for the county in which the tax was imposed. (Sec. 33.41) The property must be sold for the entire amount owed by the property owner, including taxes, penalty, interests, court costs, and the cost of the sale, or the adjudged value of the property, whichever is less (Sec. 34.01 b). If a bid sufficient to pay the lesser of the amount calculated under Subsection (b) or the adjudged value is not received, the taxing unit that requested the order of sale may terminate the sale. If the taxing unit does not terminate the sale, the officer making the sale shall bid the property off to the taxing unit that requested the order of sale.

A person may authorize another person to pay the taxes imposed by a taxing unit on the person's real property by filing with the collector for the unit a sworn document stating the authorization, naming the other person authorized to pay the taxes, and describing the property (Sec. 32.06). After one year from the date on which a tax lien transferred as provided by this section is recorded in all counties in which the property is located, the holder of the lien may file suit to foreclose the lien unless a contract between the holder of the lien and the owner of the property encumbered by the lien provides otherwise.

Law: Texas Codes Annotated, Tax Code, Title 1, Chapter 32, "Tax Liens and Personal Liability," Chapter 33, "Delinquency," and Chapter 34, "Tax Sales and Redemption."

Contact: Local City or County Tax Collectors

Interest Rate: The owner of real property sold at a tax sale to a purchaser other than a taxing unit that was used as the residence homestead of the owner or that was land designated for agricultural use when the suit or the application for the warrant was filed may redeem the property on or before the second anniversary of the date on which the purchaser's deed is filed for record by paying the purchaser the amount the purchaser bid for the property, the amount of the deed recording fee, and the amount paid by the purchaser as taxes, penalties, interest, and costs on the property, plus a redemption premium of 25 percent of the aggregate total if the property is redeemed during the first year of the redemption period or 50 percent of the aggregate total if the property is redeemed during the second year of the redemption period. (Sec. 34.21).

A person holding a tax lien transferred (transferee) as provided by this section may not charge a greater rate of interest (to the property owner) than 18% a year on the taxes, penalties, interest, and recording expenses paid to acquire and record the lien. (Sec. 32.06).

Auction Type: Tax Deed. More specifically, the officer making the sale shall prepare a deed to the purchaser of real property at the sale, to any other person whom the purchaser may specify, or to the taxing unit to which the property was bid off. (Sec. 34.01m).

Bidding Procedure: The sale is to the highest bidder that is willing to tender an amount that is less than the lesser of the market value of the property as specified in the warrant or the total amount of taxes, penalties, interest, costs, and other claims for which the warrant was issued. (Sec. 34.01, Sec. 34.02). The owner of real property subject to sale may file with the officer charged with the sale a written request that the property be divided and that only as many portions be sold as necessary to pay the amount due against the property (Sec. 34.01i)

Costs: Costs included as part of the minimum bid requirement include the costs of the sale, including advertising costs, and any related court costs (Sec. 34.01). Other costs are not specified in statute.

Redemption Period: If real property that was used as the owner's residence homestead or was land designated for agricultural use when the suit or the application for the warrant was filed has been resold by the taxing unit under Section 34.05, the owner of the property having a right of redemption may redeem the property on or before the second anniversary of the date on which the taxing unit files for record the deed from the sheriff or constable by paying the person who purchased the property from the taxing unit the amount the purchaser paid for the property, the amount of the fee for filing the purchaser's deed for record, the amount paid by the purchaser as taxes, penalties, interest, and costs on the property, plus a redemption premium of 25 percent of the aggregate total if the property is redeemed in the first year of the redemption period or 50 percent of the aggregate total if the property is redeemed in the second year of the redemption period. (Sec. 34.21). The owner of real property sold at a tax sale other than property that was used as the residence homestead of the owner or that was land designated for agricultural use when the suit or the application for the warrant was filed may redeem the property in the same manner and by paying the same amounts as prescribed by Subsection (a), (b), (c), or (d), as applicable, except that: (1) the owner's right of redemption may be exercised not later than the 180th day following the date on which the purchaser's or taxing unit's deed is filed for record; and (2) the redemption premium payable by the owner to a purchaser other than a taxing unit may not exceed 25 percent.

Deed assigned at Foreclosure to: The purchaser at the Tax Sale (Sec. 34.01).

Notes:

Counties:

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