CHAPTER 29. FORCED SALE OF OWNER'S INTEREST IN CERTAIN REAL PROPERTY AS REIMBURSEMENT FOR PROPERTY TAXES PAID BY CO-OWNER ON OWNER'S BEHALF
PROPERTY CODE
TITLE 4. ACTIONS AND REMEDIES
CHAPTER 29. FORCED SALE OF OWNER'S INTEREST IN CERTAIN REAL
PROPERTY AS REIMBURSEMENT FOR PROPERTY TAXES PAID BY CO-OWNER ON
OWNER'S BEHALF
Sec. 29.001. APPLICATION OF CHAPTER. This chapter applies only
to real property that is not exempt from forced sale under the
constitution or laws of this state and is:
(1) received by a person as a result of the death of another
person:
(A) by inheritance;
(B) under a will;
(C) by a joint tenancy with a right of survivorship; or
(D) by any other survivorship agreement in which the interest of
the decedent passes to a surviving beneficiary other than an
agreement between spouses for community property with a right of
survivorship; or
(2) owned in part by a nonprofit organization that is exempt
from federal income tax under Section 501(a), Internal Revenue
Code of 1986, and its subsequent amendments, by being listed as
an exempt organization under Section 501(c)(3), Internal Revenue
Code of 1986, and its subsequent amendments, that:
(A) has been incorporated in this state for at least one year;
(B) has a corporate purpose to develop affordable housing that
is stated in the articles of incorporation or charter;
(C) has at least one-fourth of its board of directors residing
in the county in which the property is located; and
(D) engages primarily in the building, repair, rental, or sale
of housing for low-income individuals or families.
Added by Acts 1995, 74th Leg., ch. 981, Sec. 1, eff. Aug. 28,
1995. Amended by Acts 2001, 77th Leg., ch. 891, Sec. 1, eff.
Sept. 1, 2001.
Sec. 29.002. PETITION FOR FORCED SALE. (a) A person, including
a nonprofit organization, that owns an undivided interest in real
property to which this chapter applies may file in the district
court in a county in which the property is located a petition for
a court order to require another owner of an undivided interest
in that property to sell the other owner's interest in the
property to the person if:
(1) the person has paid the other owner's share of ad valorem
taxes imposed on the property for any three years in a five-year
period or, in the case of a nonprofit organization, has paid the
other owner's share of ad valorem taxes imposed on the property
for any two years in a three-year period; and
(2) the other owner has not reimbursed the person for more than
half of the total amount paid by the person for the taxes on the
owner's behalf.
(b) The petition must contain:
(1) a description of the property;
(2) the name of each known owner of the property;
(3) the interest held by each known owner of the property;
(4) the total amount paid by the petitioner for the defendant's
share of ad valorem taxes imposed on the property; and
(5) if applicable, the amount paid by the defendant to the
petitioner to reimburse the petitioner for paying the defendant's
share of ad valorem taxes imposed on the property.
Added by Acts 1995, 74th Leg., ch. 981, Sec. 1, eff. Aug. 28,
1995. Amended by Acts 2001, 77th Leg., ch. 891, Sec. 1, eff.
Sept. 1, 2001.
Sec. 29.003. HEARING ON PETITION FOR FORCED SALE. At a hearing
on a petition filed under Section 29.002, the petitioner must
prove by clear and convincing evidence that:
(1) the petitioner has paid the defendant's share of ad valorem
taxes imposed on the property that is the subject of the petition
for any three years in a five-year period or, in the case of a
nonprofit organization, the petitioner has paid the defendant's
share of ad valorem taxes imposed on the property that is the
subject of the petition for any two years in a three-year period;
(2) before the date on which the petition was filed the
petitioner made a demand that the defendant reimburse the
petitioner for the amount of the defendant's share of ad valorem
taxes imposed on the property paid by the petitioner; and
(3) the defendant has not reimbursed the petitioner more than
half of the amount of money the petitioner paid on the
defendant's behalf for the defendant's share of ad valorem taxes
imposed on the property.
Added by Acts 1995, 74th Leg., ch. 981, Sec. 1, eff. Aug. 28,
1995. Amended by Acts 2001, 77th Leg., ch. 891, Sec. 1, eff.
Sept. 1, 2001.
Sec. 29.0035. DEMAND TO UNKNOWN DEFENDANT. If the address or
identity of the defendant is unknown, the demand of the
petitioner for reimbursement from the defendant required by
Section 29.003(2) may be met by publication in a newspaper in the
county in which the property is located once each week for four
consecutive weeks, with the final publication occurring not later
than the 30th day before the date on which the petition is filed.
The publication must contain the demand for reimbursement and:
(1) a general description of the property involved;
(2) the legal description of the property according to the
survey of the property, including the number of the lot and block
or any other plat description that may be of record if the
property is located in a municipality;
(3) the county in which the property is located;
(4) the interest of the defendant; and
(5) the name and address of the petitioner.
Added by Acts 2001, 77th Leg., ch. 891, Sec. 2, eff. Sept. 1,
2001.
Sec. 29.004. COURT-ORDERED SALE. On completion of the hearing
on a petition filed under Section 29.002, if the court is
satisfied that the petitioner has made the requisite proof under
Section 29.003, the court shall enter an order that divests the
defendant's interest in the real property that is the subject of
the petition and that orders the petitioner to pay to the
defendant an amount computed by subtracting the outstanding
amount of money the defendant owes to the petitioner for payment
of the defendant's share of ad valorem taxes imposed on the
property from the fair market value of the defendant's interest
in the property as determined by an independent appraiser
appointed by the court. The court's order may also direct the
defendant to execute and deliver to the petitioner a deed that
conveys to the petitioner the defendant's interest in the
property.
Added by Acts 1995, 74th Leg., ch. 981, Sec. 1, eff. Aug. 28,
1995.