CHAPTER 32. TAX LIENS AND PERSONAL LIABILITY
TAX CODE
TITLE 1. PROPERTY TAX CODE
SUBTITLE E. COLLECTIONS AND DELINQUENCY
CHAPTER 32. TAX LIENS AND PERSONAL LIABILITY
Sec. 32.01. TAX LIEN. (a) On January 1 of each year, a tax
lien attaches to property to secure the payment of all taxes,
penalties, and interest ultimately imposed for the year on the
property, whether or not the taxes are imposed in the year the
lien attaches. The lien exists in favor of each taxing unit
having power to tax the property.
(b) A tax lien on inventory, furniture, equipment, or other
personal property is a lien in solido and attaches to all
inventory, furniture, equipment, and other personal property that
the property owner owns on January 1 of the year the lien
attaches or that the property owner subsequently acquires.
(c) If an owner's real property is described with certainty by
metes and bounds in one or more instruments of conveyance and
part of that property is the owner's residence homestead taxed
separately and apart from the remainder of the property, each of
the liens under this section that secures the taxes imposed on
that homestead and on the remainder of that property extends in
solido to all the real property described in the instrument or
instruments of conveyance, unless the homestead is identified as
a separate parcel and is separately described in the conveyance
or another instrument recorded in the real property records.
(d) The lien under this section is perfected on attachment and,
except as provided by Section 32.03(b), perfection requires no
further action by the taxing unit.
Acts 1979, 66th Leg., p. 2287, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1983, 68th Leg., p. 4827, ch. 851, Sec. 22,
eff. Aug. 29, 1983; Acts 1993, 73rd Leg., ch. 1031, Sec. 3, eff.
Sept. 1, 1993; Acts 1999, 76th Leg., ch. 1481, Sec. 11, eff. Jan.
1, 2000.
Sec. 32.014. TAX LIEN ON MANUFACTURED HOME. (a) If the owner
of a manufactured home has elected to treat the home as real
property under Section 25.08, the tax lien shall be attached to
the land on which the manufactured home is located.
(b) If the owner of a manufactured home does not elect to treat
the home as real property with the land on which the manufactured
home is located, the tax lien on the manufactured home does not
attach to the land on which the home is located.
(c) In this section, "manufactured home" has the meaning
assigned by Section 1201.003, Occupations Code.
(d) This section prevails over Chapter 1201, Occupations Code,
to the extent of any conflict.
Added by Acts 1987, 70th Leg., ch. 633, Sec. 2, eff. Aug. 31,
1987. Amended by Acts 1989, 71st Leg., ch. 2, Sec. 14.02(b), eff.
Aug. 28, 1989; Acts 1989, 71st Leg., ch. 1039, Sec. 4.04, eff.
Sept. 1, 1989; Acts 1995, 74th Leg., ch. 978, Sec. 20, eff. Sept.
1, 1995; Acts 2001, 77th Leg., ch. 1055, Sec. 8, eff. Jan. 1,
2002; Acts 2003, 78th Leg., ch. 338, Sec. 46, eff. Jan. 1, 2004;
Acts 2003, 78th Leg., ch. 1276, Sec. 14A.813, eff. Sept. 1, 2003.
Amended by:
Acts 2005, 79th Leg., Ch.
1284, Sec. 31, eff. June 18, 2005.
Sec. 32.015. TAX LIEN ON MANUFACTURED HOME. (a) On payment of
the taxes, penalties, and interest for a year for which a valid
tax lien has been recorded on the title records of the
department, the collector for the taxing unit shall issue a tax
certificate showing no taxes due or a tax paid receipt for such
year to the person making payment. When the tax certificate
showing no taxes due or tax paid receipt is filed with the
department, the tax lien is extinguished and canceled and shall
be removed from the title records of the manufactured home. The
collector for a taxing unit may not refuse to issue a tax paid
receipt to the person who offers to pay the taxes, penalties, and
interest for a particular year or years, even though taxes may
also be due for another year or other years.
(b) In this section, "department" and "manufactured home" have
the meanings assigned by Section 1201.003, Occupations Code;
however, the term "manufactured home" does not include a
manufactured home that has been attached to real property and for
which the document of title has been canceled under Section
1201.217 of that code.
Added by Acts 1985, 69th Leg., ch. 846, Sec. 15, eff. Sept. 1,
1985. Amended by Acts 1987, 70th Leg., ch. 1134, Sec. 22, eff.
June 18, 1987; Acts 1989, 71st Leg., ch. 1039, Sec. 4.05, eff.
Sept. 1, 1989; Acts 1991, 72nd Leg., ch. 617, Sec. 11, eff. Aug.
26, 1991; Acts 1995, 74th Leg., ch. 978, Sec. 21, eff. Sept. 1,
1995; Acts 1999, 76th Leg., ch. 1481, Sec. 12, eff. Jan. 1, 2000;
Acts 2001, 77th Leg., ch. 988, Sec. 2, eff. Sept. 1, 2001; Acts
2003, 78th Leg., ch. 1276, Sec. 14A.814, eff. Sept. 1, 2003.
Amended by:
Acts 2005, 79th Leg., Ch.
1284, Sec. 32, eff. June 18, 2005.
Sec. 32.02. RESTRICTIONS ON A MINERAL INTEREST TAX LIEN. (a)
If a mineral estate is severed from a surface estate and if
different persons own the mineral estate and surface estate, the
lien resulting from taxes imposed against each interest in the
mineral estate exists only for the duration of the interest it
encumbers. After an interest in the mineral estate terminates,
the lien encumbering it expires and is not enforceable:
(1) against any part of the surface estate not owned by the
owner of the interest encumbered by the lien;
(2) against any part of the mineral estate not owned by the
owner of the interest encumbered by the lien; or
(3) against the owner of the surface estate as a personal
obligation, unless he also owns the interest encumbered by the
lien.
(b) Taxes imposed on a severed interest in a mineral estate that
has terminated remain the personal liability of the person who
owned the interest on January 1 of the year for which the tax was
imposed.
Acts 1979, 66th Leg., p. 2287, ch. 841, Sec. 1, eff. Jan. 1,
1982.
Sec. 32.03. RESTRICTIONS ON PERSONAL PROPERTY TAX LIEN. (a)
Except as provided by Subsection (a-1), a tax lien may not be
enforced against personal property transferred to a buyer in
ordinary course of business as defined by Section 1.201(9) of the
Business & Commerce Code for value who does not have actual
notice of the existence of the lien.
(a-1) With regard to a manufactured home, a tax lien may be
recorded at any time not later than six months after the end of
the year for which the tax was owed. A tax lien on a
manufactured home may be enforced if it has been recorded in
accordance with the laws in effect at the time of the recordation
of the lien. A properly recorded tax lien may not be enforced
against a new manufactured home that is owned by a person who
acquired the manufactured home from a retailer as a buyer in the
ordinary course of business.
(a-2) A person may not transfer ownership of a manufactured home
until all tax liens perfected on the home that have been timely
filed with the Texas Department of Housing and Community Affairs
have been extinguished or satisfied and released and any personal
property taxes on the manufactured home which accrued on each
January 1 that falls within the 18 months preceding the date of
the sale have been paid. This subsection does not apply to the
sale of a manufactured home in inventory.
(b) A bona fide purchaser for value or the holder of a lien
recorded on a manufactured home statement of ownership and
location is not required to pay any taxes that have not been
recorded with the Texas Department of Housing and Community
Affairs. In this section, manufactured home has the meaning
assigned by Section 32.015(b). Unless a tax lien has been filed
timely with the Texas Department of Housing and Community
Affairs, no taxing unit, nor anyone acting on its behalf, may use
a tax warrant or any other method to attempt to execute or
foreclose on the manufactured home.
(c) A taxpayer may designate in writing which tax year will be
credited with a particular payment. If a taxpayer pays all the
amounts owing for a given year, the taxing unit shall issue a
receipt for the payment of the taxes for the designated year.
(d) Notwithstanding any other provision of this section, if a
manufactured home was omitted from the tax roll for either or
both of the two preceding tax years, the taxing unit may file a
tax lien within the 150-day period following the date on which
the tax becomes delinquent.
(e) If personal property taxes on a manufactured home have not
been levied by the taxing unit, the taxing unit shall provide,
upon request, an estimated amount of taxes computed by
multiplying the taxable value of the manufactured home, according
to the most recent certified appraisal roll for the taxing unit,
by the taxing unit's adopted tax rate for the preceding tax year.
In order to enable the transfer of the manufactured home, the
tax collector shall accept the payment of the estimated personal
property taxes and issue a certification to the Texas Department
of Housing and Community Affairs that the estimated taxes are
being held in escrow until the taxes are levied. Once the taxes
are levied, the tax collector shall apply the escrowed sums to
the levied taxes. At the time the tax collector accepts the
payment of the taxes, the tax collector shall provide notice that
the payment of the estimated taxes is an estimate that may be
raised once the appraisal rolls for the year are certified and
that the new owner may be liable for the payment of any
difference between the tax established by the certified appraisal
roll and the estimate actually paid.
Acts 1979, 66th Leg., p. 2287, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1985, 69th Leg., ch. 846, Sec. 16, eff.
Sept. 1, 1985; Acts 1991, 72nd Leg., ch. 617, Sec. 12, eff. Aug.
26, 1991; Acts 1991, 72nd Leg., ch. 836, Sec. 5.2, eff. Aug. 26,
1991; Acts 1995, 74th Leg., ch. 978, Sec. 22, eff. Sept. 1, 1995;
Acts 2001, 77th Leg., ch. 988, Sec. 3, eff. Sept. 1, 2001; Acts
2003, 78th Leg., ch. 338, Sec. 47, eff. Jan. 1, 2004.
Amended by:
Acts 2005, 79th Leg., Ch.
1284, Sec. 33, eff. June 18, 2005.
Acts 2005, 79th Leg., Ch.
1284, Sec. 34, eff. June 18, 2005.
Acts 2007, 80th Leg., R.S., Ch.
863, Sec. 72, eff. January 1, 2008.
Sec. 32.04. PRIORITIES AMONG TAX LIENS. (a) Whether or not a
tax lien provided by this chapter takes priority over a tax lien
of the United States is determined by federal law. In the absence
of federal law, a tax lien provided by this chapter takes
priority over a tax lien of the United States.
(b) Tax liens provided by this chapter have equal priority.
Acts 1979, 66th Leg., p. 2287, ch. 841, Sec. 1, eff. Jan. 1,
1982.
Sec. 32.05. PRIORITY OF TAX LIENS OVER OTHER PROPERTY INTERESTS.
(a) A tax lien on real property takes priority over a homestead
interest in the property.
(b) Except as provided by Subsection (c)(1), a tax lien provided
by this chapter takes priority over:
(1) the claim of any creditor of a person whose property is
encumbered by the lien;
(2) the claim of any holder of a lien on property encumbered by
the tax lien, including any lien held by a property owners'
association, homeowners' association, condominium unit owners'
association, or council of owners of a condominium regime under a
restrictive covenant, condominium declaration, master deed, or
other similar instrument that secures regular or special
maintenance assessments, fees, dues, interest, fines, costs,
attorney's fees, or other monetary charges against the property;
and
(3) any right of remainder, right or possibility of reverter, or
other future interest in, or encumbrance against, the property,
whether vested or contingent.
(b-1) The priority given to a tax lien by Subsection (b)
prevails, regardless of whether the debt, lien, future interest,
or other encumbrance existed before attachment of the tax lien.
(c) A tax lien provided by this chapter is inferior to:
(1) a claim for any survivor's allowance, funeral expenses, or
expenses of the last illness of a decedent made against the
estate of a decedent as provided by law;
(2) except as provided by Subsection (b)(2), a recorded
restrictive covenant that runs with the land and was recorded
before January 1 of the year the tax lien arose; or
(3) a valid easement of record recorded before January 1 of the
year the tax lien arose.
(d) In an action brought under Chapter 33 for the enforced
collection of a delinquent tax against property, a property
owners' association, homeowners' association, condominium unit
owners' association, or council of owners of a condominium regime
that holds a lien for regular or special maintenance assessments,
fees, dues, interest, fines, costs, attorney's fees, or other
monetary charges against the property is not a necessary party to
the action unless, at the time the action is commenced, notice of
the lien in a liquidated amount is evidenced by a sworn
instrument duly executed by an authorized person and recorded
with the clerk of the county in which the property is located.
A tax sale of the property extinguishes the lien held by a
property owners' association, homeowners' association,
condominium unit owners' association, or council of owners of a
condominium regime for all amounts that accrued before the date
of sale if:
(1) the holder of the lien is joined as a party to an action
brought under Chapter 33 by virtue of a notice of the lien on
record at the time the action is commenced; or
(2) the notice of lien is not of record at the time the action
is commenced, regardless of whether the holder of the lien is
made a party to the action.
(e) The existence of a recorded restrictive covenant,
declaration, or master deed that generally provides for the lien
held by a property owners' association, homeowners' association,
condominium unit owners' association, or council of owners of a
condominium regime does not, by itself, constitute actual or
constructive notice to a taxing unit of a lien under Subsection
(d).
Acts 1979, 66th Leg., p. 2287, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1991, 72nd Leg., ch. 854, Sec. 1, eff. June
16, 1991; Acts 1999, 76th Leg., ch. 1481, Sec. 13, eff. Sept. 1,
1999.
Amended by:
Acts 2005, 79th Leg., Ch.
1126, Sec. 12, eff. September 1, 2005.
Sec. 32.06. TRANSFER OF TAX LIEN. (a) In this section:
(1) "Mortgage servicer" has the meaning assigned by Section
51.0001, Property Code.
(2) "Transferee" means a person authorized to pay the taxes of
another.
(a-1) 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:
(1) a sworn document stating:
(A) the authorization;
(B) the name and street address of the transferee authorized to
pay the taxes of the property owner;
(C) a description of the property by street address, if
applicable, and legal description; and
(D) notice has been given to the property owner that if the
property owner is age 65 or disabled, the property owner may be
eligible for a tax deferral under Section 33.06; and
(2) the information required by Section 351.054, Finance Code.
(a-2) A tax lien may be transferred to the person who pays the
taxes on behalf of the property owner under the authorization
for:
(1) taxes that are delinquent at the time of payment; or
(2) taxes that are not delinquent at the time of payment if:
(A) the property is not subject to a recorded mortgage lien; or
(B) a tax lien transfer authorized by the property owner has
been executed and recorded for one or more prior years on the
same property and the property owner has executed an
authorization consenting to a transfer of the tax liens for both
the taxes on the property that are not delinquent and taxes on
the property that are delinquent in the manner provided by
Subsection (a-1).
(a-3) If the property owner has executed an authorization under
Subsection (a-2)(2)(B) consenting to a transfer of the tax liens
for both the taxes on the property that are not delinquent and
taxes on the property that are delinquent, the collector shall
certify in one document the transfer of the liens for all the
taxes.
(a-4) The Finance Commission of Texas shall:
(1) prescribe the form and content of an appropriate disclosure
statement to be provided to a property owner before the execution
of a tax lien transfer;
(2) adopt rules relating to the reasonableness of closing costs,
fees, and other charges permitted under this section; and
(3) by rule prescribe the form and content of the sworn document
under Subsection (a-1) and the certified statement under
Subsection (b).
(b) If a transferee authorized to pay a property owner's taxes
pursuant to Subsection (a-1) pays the taxes and any penalties and
interest imposed, the collector shall issue a tax receipt to that
transferee. In addition, the collector or a person designated by
the collector shall certify that the taxes and any penalties and
interest on the subject property and collection costs have been
paid by the transferee on behalf of the property owner and that
the taxing unit's tax lien is transferred to that transferee.
The collector shall attach to the certified statement the
collector's seal of office or sign the statement before a notary
public and deliver a tax receipt and the statement attesting to
the transfer of the tax lien to the transferee within 30 days.
The tax receipt and statement may be combined into one document.
The collector shall identify in a discrete field in the
applicable property owner's account the date of the transfer of a
tax lien transferred under this section. When a tax lien is
released, the transferee shall file a release with the county
clerk of each county in which the property encumbered by the lien
is located for recordation by the clerk and send a copy to the
collector. The transferee may charge the property owner a
reasonable fee for filing the release.
(b-1) Not later than the 10th business day after the date the
certified statement is received by the transferee, the transferee
shall send by certified mail a copy of the sworn document
described by Subsection (a-1) to any mortgage servicer and to
each holder of a recorded first lien encumbering the property.
The copy must be sent, as applicable, to the address shown on the
most recent payment invoice, statement, or payment coupon
provided by the mortgage servicer to the property owner, or the
address of the holder of a recorded first lien as shown in the
real property records.
(c) Except as otherwise provided by this section, the transferee
of a tax lien and any successor in interest is entitled to
foreclose the lien:
(1) in the manner provided by law for foreclosure of tax liens;
or
(2) in the manner specified in Section 51.002, Property Code,
and Section 32.065, after the transferee or a successor in
interest obtains a court order for foreclosure under Rule 736,
Texas Rules of Civil Procedure, except as provided by Subsection
(c-1) of this section, if the property owner and the transferee
enter into a contract that is secured by a lien on the property.
(c-1) If a transferee seeks to foreclose a tax lien on the
property under Subsection (c)(2):
(1) the application for the foreclosure must be served on and
name as parties the owner of the property and the holder of any
recorded preexisting first lien on the property and must:
(A) allege that the lien is an ad valorem tax lien instead of a
lien created under Section 50, Article XVI, Texas Constitution;
(B) state that the applicant does not seek a court order
required by Section 50, Article XVI, Texas Constitution;
(C) state that the transferee has provided notice to cure the
default, notice of intent to accelerate, and notice of
acceleration of the maturity of the debt to the property owner
and each holder of a recorded first lien on the property in the
manner required for notice to a debtor under Section 51.002,
Property Code; and
(D) confirm that the property owner has not requested a deferral
of taxes authorized by Section 33.06; and
(2) the holder of a recorded preexisting lien must be provided
at least 60 days' notice before the date of the proposed
foreclosure.
(d) A transferee shall record a tax lien transferred as provided
by this section with the statement attesting to the transfer of
the tax lien as described by Subsection (b) in the deed records
of each county in which the property encumbered by the lien is
located.
(d-1) A right of rescission described by 12 C.F.R. Section
226.23 applies to a tax lien transfer under this section.
(e) A transferee holding a tax lien transferred as provided by
this section may not charge a greater rate of interest than 18
percent a year on the funds advanced. Funds advanced are limited
to the taxes, penalties, interest, and collection costs paid as
shown on the tax receipt, expenses paid to record the lien, plus
reasonable closing costs.
(f) The holder of a loan secured by a transferred tax lien that
is delinquent for 90 consecutive days must send a notice of the
delinquency by certified mail on or before the 120th day of
delinquency or, if the 120th day is not a business day, on the
next business day after the 120th day of delinquency, to any
holder of a recorded preexisting lien on the property. The
holder or mortgage servicer of a recorded preexisting lien on
property encumbered by a tax lien transferred as provided by
Subsection (b) is entitled, within six months after the date on
which the notice is sent, to obtain a release of the transferred
tax lien by paying the transferee of the tax lien the amount owed
under the contract between the property owner and the transferee.
(f-1) If an obligation secured by a preexisting first lien on
the property is delinquent for at least 90 consecutive days and
the obligation has been referred to a collection specialist, the
mortgage servicer or the holder of the first lien may send a
notice of the delinquency to the transferee of a tax lien. The
mortgage servicer or the first lienholder is entitled, within six
months after the date on which that notice is sent, to obtain a
release of the transferred tax lien by paying the transferee of
the tax lien the amount owed under the contract between the
property owner and the transferee. The Finance Commission of
Texas by rule shall prescribe the form and content of the notice
under this subsection.
(f-2) The rights granted by Subsections (f) and (f-1) do not
affect a right of redemption in a foreclosure proceeding
described by Subsection (k) or (k-1).
(f-3) Notwithstanding any contractual agreement with the
property owner, the transferee of a tax lien must provide the
payoff information required by this section to the greatest
extent permitted by 15 U.S.C. Section 6802 and 12 C.F.R. Part
216. The payoff statement must meet the requirements of a payoff
statement defined by Section 12.017, Property Code. A transferee
may charge a reasonable fee for a payoff statement that is
requested after an initial payoff statement is provided.
(f-4) Failure to comply with Subsection (b-1), (f), or (f-1)
does not invalidate a tax lien under this chapter, a contract
lien, or a deed of trust.
(g) At any time after the end of the six-month period specified
by Subsection (f) and before a notice of foreclosure of the
transferred tax lien is sent, the transferee of the tax lien or
the holder of the tax lien may require the property owner to
provide written authorization and pay a reasonable fee before
providing information regarding the current balance owed by the
property owner to the transferee or the holder of the tax lien.
(h) A mortgage servicer who pays a transferred tax lien becomes
subrogated to all rights in the lien.
(i) Except as provided by Section 33.445, a foreclosure of a tax
lien transferred as provided by this section may not be
instituted within one year from the date on which the lien is
recorded in all counties in which the property is located, unless
the contract between the owner of the property and the transferee
provides otherwise.
(j) 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 transferee of the lien may foreclose
the lien in the manner provided by Subsection (c) unless a
contract between the holder of the lien and the owner of the
property encumbered by the lien provides otherwise. If a
foreclosure suit results in foreclosure of the lien, the
transferee is entitled to recover attorney's fees in an amount
not to exceed 10 percent of the judgment. The proceeds of a sale
following a judicial foreclosure as provided by this subsection
shall be applied first to the payment of court costs, then to
payment of the judgment, including accrued interest, and then to
the payment of any attorney's fees fixed in the judgment. Any
remaining proceeds shall be paid to other holders of liens on the
property in the order of their priority and then to the person
whose property was sold at the tax sale.
(k) Beginning on the date the foreclosure deed is recorded, the
person whose property is sold as provided by Subsection (c) or
the mortgage servicer of a prior recorded lien against the
property is entitled to redeem the foreclosed property from the
purchaser or the purchaser's successor by paying the purchaser or
successor:
(1) 125 percent of the purchase price during the first year of
the redemption period or 150 percent of the purchase price during
the second year of the redemption period with cash or cash
equivalent funds; and
(2) the amount reasonably spent by the purchaser in connection
with the property as costs within the meaning of Section 34.21(g)
and the legal judgment rate of return on that amount.
(k-1) The right of redemption provided by Subsection (k) may be
exercised on or before the second anniversary of the date on
which the purchaser's deed is filed of record if the property
sold was the residence homestead of the owner, was land
designated for agricultural use, or was a mineral interest. For
any other property, the right of redemption must be exercised not
later than the 180th day after the date on which the purchaser's
deed is filed of record. If a person redeems the property as
provided by Subsection (k) and this subsection, the purchaser at
the tax sale or the purchaser's successor shall deliver a deed
without warranty to the property to the person redeeming the
property. If the person who owned the property at the time of
foreclosure redeems the property, all liens existing on the
property at the time of the tax sale remain in effect to the
extent not paid from the sale proceeds.
Acts 1979, 66th Leg., p. 2288, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1995, 74th Leg., ch. 131, Sec. 1, eff.
Sept. 1, 1995.
Amended by:
Acts 2005, 79th Leg., Ch.
406, Sec. 1, eff. September 1, 2005.
Acts 2005, 79th Leg., Ch.
1126, Sec. 13, eff. September 1, 2005.
Acts 2007, 80th Leg., R.S., Ch.
1220, Sec. 3, eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch.
1329, Sec. 1, eff. September 1, 2007.
Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 22.006, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch.
104, Sec. 1, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch.
1382, Sec. 4, eff. September 1, 2009.
Sec. 32.065. CONTRACT FOR FORECLOSURE OF TAX LIEN. (a) Section
32.06 does not abridge the right of an owner of real property to
enter into a contract for the payment of taxes.
(b) Notwithstanding any agreement to the contrary, a contract
entered into under Subsection (a) between a transferee and the
property owner under Section 32.06 that is secured by a priority
lien on the property shall provide for a power of sale and
foreclosure in the manner provided by Section 32.06(c)(2) and:
(1) an event of default;
(2) notice of acceleration;
(3) recording of the deed of trust or other instrument securing
the contract entered into under Subsection (a) in each county in
which the property is located;
(4) recording of the sworn document and affidavit attesting to
the transfer of the tax lien;
(5) requiring the transferee to serve foreclosure notices on the
property owner at the property owner's last known address in the
manner provided by Section 32.06(c)(2) or by a commercially
reasonable delivery service that maintains verifiable records of
deliveries for at least five years from the date of delivery; and
(6) requiring, at the time the foreclosure notices required by
Subdivision (5) are served on the property owner, the transferee
to serve a copy of the notice of sale in the same manner on the
mortgage servicer or the holder of all recorded real property
liens encumbering the property that includes on the first page,
in 14-point boldfaced type or 14-point uppercase typewritten
letters, a statement that reads substantially as follows:
"PURSUANT TO TEXAS TAX CODE SECTION 32.06, THE FORECLOSURE SALE
REFERRED TO IN THIS DOCUMENT IS A SUPERIOR TRANSFER TAX LIEN
SUBJECT TO RIGHT OF REDEMPTION UNDER CERTAIN CONDITIONS. THE
FORECLOSURE IS SCHEDULED TO OCCUR ON THE (DATE)."
(b-1) On an event of default and notice of acceleration, the
mortgage servicer of a recorded lien encumbering real property
may obtain a release of a transferred tax lien on the property by
paying the transferee of the tax lien or the holder of the tax
lien the amount owed by the property owner to that transferee or
holder.
(c) Notwithstanding any other provision of this code, a
transferee of a tax lien or the transferee's assignee is
subrogated to and is entitled to exercise any right or remedy
possessed by the transferring taxing unit, including or related
to foreclosure or judicial sale, but is prohibited from
exercising a remedy of foreclosure or judicial sale where the
transferring taxing unit would be prohibited from foreclosure or
judicial sale.
(d) Chapters 342 and 346, Finance Code, and the provisions of
Chapter 343, Finance Code, other than Sections 343.203 and
343.205, do not apply to a transaction covered by this section.
(e) If in a contract under this section a person contracts for,
charges, or receives a rate or amount of interest that exceeds
the rate or amount allowed by this section, the amount of the
penalty for which the person is obligated is determined in the
manner provided by Chapter 349, Finance Code.
(f) Before accepting an application fee or executing a contract,
the transferee shall disclose to the transferee's prospective
borrower each type and the amount of possible additional charges
or fees that may be incurred by the borrower in connection with
the loan or contract under this section.
(g) Repealed by Acts 2007, 80th Leg., R.S., Ch. 1329, Sec. 3,
eff. September 1, 2007.
(h) An affidavit of the transferee executed after foreclosure of
a tax lien that recites compliance with the terms of Section
32.06 and this section and is recorded in each county in which
the property is located:
(1) is prima facie evidence of compliance with Section 32.06 and
this section; and
(2) may be relied on conclusively by a bona fide purchaser for
value without notice of any failure to comply.
Acts 1979, 66th Leg., p. 2288, ch. 841, Sec. 1, eff. Jan. 1,
1982. Redesignated from Tax Code Sec. 32.06(j) and amended by
Acts 1995, 74th Leg., ch. 131, Sec. 1, eff. Sept. 1, 1995.
Amended by Acts 1997, 75th Leg., ch. 1396, Sec. 39, eff. Sept. 1,
1997; Acts 1999, 76th Leg., ch. 62, Sec. 7.91, eff. Sept. 1,
1999.
Amended by:
Acts 2005, 79th Leg., Ch.
406, Sec. 2, eff. September 1, 2005.
Acts 2005, 79th Leg., Ch.
1126, Sec. 14, eff. September 1, 2005.
Acts 2007, 80th Leg., R.S., Ch.
921, Sec. 17.001(66), eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch.
1220, Sec. 4, eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch.
1329, Sec. 2, eff. September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch.
1329, Sec. 3, eff. September 1, 2007.
Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 22.007, eff. September 1, 2009.
Sec. 32.07. PERSONAL LIABILITY FOR TAX. (a) Except as provided
by Subsections (b) and (c) of this section, property taxes are
the personal obligation of the person who owns or acquires the
property on January 1 of the year for which the tax is imposed or
would have been imposed had property not been omitted as
described under Section 25.21. A person is not relieved of the
obligation because he no longer owns the property.
(b) The person in whose name a property is required to be listed
by Section 25.13 of this code is personally liable for the taxes
imposed on the property.
(c) A qualifying trust as defined by Section 11.13(j) and each
trustor of the trust are jointly and severally liable for the tax
imposed on the interest of the trust in a residence homestead.
(d) Any person who receives or collects an ad valorem tax or any
money represented to be a tax from another person holds the
amount so collected in trust for the benefit of the taxing unit
and is liable to the taxing unit for the full amount collected
plus any accrued penalties and interest on the amount collected.
(e) With respect to an ad valorem tax or other money subject to
the provisions of Subsection (d), an individual who controls or
supervises the collection of tax or money from another person, or
an individual who controls or supervises the accounting for and
paying over of the tax or money, and who wilfully fails to pay or
cause to be paid the tax or money is liable as a responsible
individual for an amount equal to the tax or money, plus all
interest, penalties, and costs, not paid or caused to be paid.
The liability imposed by this subsection is in addition to any
other penalty provided by law. The dissolution of a corporation,
association, limited liability company, or partnership does not
affect a responsible individual's liability under this
subsection.
(f) Venue for suits arising under this section shall be governed
by Section 33.41(a).
(g) In this section:
(1) "Responsible individual" includes an officer, manager,
director, or employee or a corporation, association, or limited
liability company or a member of a partnership who, as an
officer, manager, director, employee, or member, is under a duty
to perform an act with respect to the collection, accounting, or
payment of a tax or money subject to the provisions of Subsection
(d).
(2) "Tax" includes any ad valorem tax or money subject to the
provisions of Subsection (d), including the penalty and interest
computed by reference to the amount of the tax or money.
(h) For purposes of Subsection (a), a person is considered to be
an owner of property subject to an installment contract of sale
if the person is:
(1) the seller of the property; or
(2) a purchaser of the property who has the duty under the
installment contract to pay taxes on the property.
Acts 1979, 66th Leg., p. 2289, ch. 841, Sec. 1, eff. Jan. 1,
1980. Amended by Acts 1993, 73rd Leg., ch. 854, Sec. 4, eff. Jan.
1, 1994; Acts 1995, 74th Leg., ch. 579, Sec. 10, eff. Jan. 1,
1996; Acts 1997, 75th Leg., ch. 906, Sec. 2, eff. Jan. 1, 1998;
Acts 1999, 76th Leg., ch. 1481, Sec. 14, 15, eff. Jan. 1, 2000.
Amended by:
Acts 2005, 79th Leg., Ch.
846, Sec. 3, eff. September 1, 2005.