How is a property settlement settled if the County is suing for back taxes?
Full Question:
Answer:
Texas Property Tax Code
§ 34.21. RIGHT OF REDEMPTION.
(a) 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, or the owner of a mineral interest sold at a tax sale to
a purchaser other than a taxing unit, 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.
(b) If 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, or that is a mineral interest, is bid off to a taxing unit
under Section 34.01(j) or (p) and has not been resold by the taxing unit,
the owner having a right of redemption may redeem the property on or
before the second anniversary of the date on which the deed of the taxing
unit is filed for record by paying the taxing unit:
(1) the lesser of the amount of the judgment against the property
or the market value of the property as specified in that judgment, plus the
amount of the fee for filing the taxing unit's deed and the amount spent by
the taxing unit as costs on the property, if the property was judicially
foreclosed and bid off to the taxing unit under Section 34.01(j); or
(2) the lesser of the amount of taxes, penalties, interest, and costs
for which the warrant was issued or the market value of the property as
specified in the warrant, plus the amount of the fee for filing the taxing unit's
deed and the amount spent by the taxing unit as costs on the property, if
the property was seized under Subchapter E, Chapter 33, and bid off to the
taxing unit under Section 34.01(p).
(c) 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, or that is a mineral interest, 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.
(d) If the amount paid by the owner of the property under Subsection (c) is
less than the amount of the judgment under which the property was sold,
the owner shall pay to the taxing unit to which the property was bid off
under Section 34.01 an amount equal to the difference between the amount
paid under Subsection (c) and the amount of the judgment. The taxing unit
shall issue a receipt for a payment received under this subsection and shall
distribute the amount received to each taxing unit that participated in the
judgment and sale in an amount proportional to the unit's share of the total
amount of the aggregate judgments of the participating taxing units. The
owner of the property shall deliver the receipt received from the taxing unit
to the person from whom the property is redeemed.
(e) 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, or that is a mineral interest, 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.
(f) If the owner of the real property makes an affidavit that the owner has
made diligent search in the county in which the property is located for the
purchaser at the tax sale or for the purchaser at resale, and has failed to find
the purchaser, that the purchaser is not a resident of the county in which the
property is located, that the owner and the purchaser cannot agree on the
amount of redemption money due, or that the purchaser refuses to give the
owner a quitclaim deed to the property, the owner may redeem the land by
paying the required amount as prescribed by this section to the assessor-
collector for the county in which the property described has been
redeemed. The assessor-collector receiving the payment shall give the
owner a signed receipt witnessed by two persons. The receipt, when
recorded, is notice to all persons that the property described has been
redeemed. The assessor-collector shall on demand pay the money received
by the assessor-collector to the purchaser.
