CHAPTER 34. TAX SALES AND REDEMPTION
TAX CODE
TITLE 1. PROPERTY TAX CODE
SUBTITLE E. COLLECTIONS AND DELINQUENCY
CHAPTER 34. TAX SALES AND REDEMPTION
SUBCHAPTER A. TAX SALES
Sec. 34.01. SALE OF PROPERTY. (a) Real property seized under a
tax warrant issued under Subchapter E, Chapter 33, or ordered
sold pursuant to foreclosure of a tax lien shall be sold by the
officer charged with selling the property, unless otherwise
directed by the taxing unit that requested the warrant or order
of sale or by an authorized agent or attorney for that unit. The
sale shall be conducted in the manner similar property is sold
under execution except as otherwise provided by this subtitle.
(b) On receipt of an order of sale of real property, the officer
charged with selling the property shall endorse on the order the
date and exact time when the officer received the order. The
endorsement is a levy on the property without necessity for going
upon the ground. The officer shall calculate the total amount due
under the judgment, including all taxes, penalties, and interest,
plus any other amount awarded by the judgment, court costs, and
the costs of the sale. The costs of a sale include the costs of
advertising, and deed recording fees anticipated to be paid in
connection with the sale of the property. To assist the officer
in making the calculation, the collector of any taxing unit that
is party to the judgment may provide the officer with a certified
tax statement showing the amount of the taxes included in the
judgment that remain due that taxing unit and all penalties,
interest, and attorney's fees provided by the judgment as of the
date of the proposed sale. If a certified tax statement is
provided to the officer, the officer shall rely on the amount
included in the statement and is not responsible or liable for
the accuracy of the applicable portion of the calculation. A
certified tax statement is not required to be sworn to and is
sufficient if the tax collector or the collector's deputy signs
the statement.
(c) The officer charged with the sale shall give written notice
of the sale in the manner prescribed by Rule 21a, Texas Rules of
Civil Procedure, as amended, or that rule's successor to each
person who was a defendant to the judgment or that person's
attorney.
(d) An officer's failure to send the written notice of sale or a
defendant's failure to receive that notice is insufficient by
itself to invalidate:
(1) the sale of the property; or
(2) the title conveyed by that sale.
(e) A notice of sale under Subsection (c) must substantially
comply with this subsection. The notice must include:
(1) a statement of the authority under which the sale is to be
made;
(2) the date, time, and location of the sale; and
(3) a brief description of the property to be sold.
(f) A notice of sale is not required to include field notes
describing the property. A description of the property is
sufficient if the notice:
(1) states the number of acres and identifies the original
survey;
(2) as to property located in a platted subdivision or addition,
regardless of whether the subdivision or addition is recorded,
states the name by which the land is generally known with
reference to that subdivision or addition; or
(3) by reference adopts the description of the property
contained in the judgment.
(g) For publishing a notice of sale, a newspaper may charge a
rate that does not exceed the greater of:
(1) two cents per word; or
(2) an amount equal to the published word or line rate of that
newspaper for the same class of advertising.
(h) If there is not a newspaper published in the county of the
sale, or a newspaper that will publish the notice of sale for the
rate authorized by Subsection (g), the officer shall post the
notice in writing in three public places in the county not later
than the 20th day before the date of the sale. One of the notices
must be posted at the door of the county courthouse.
(i) 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, as calculated under
Subsection (b). In the request the owner shall describe the
desired portions and shall specify the order in which the
portions should be sold. The owner may not specify more than four
portions or a portion that divides a building or other contiguous
improvement. The request must be delivered to the officer not
later than the seventh day before the date of the sale.
(j) 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, unless
otherwise agreed by each other taxing unit that is a party to the
judgment, for the aggregate amount of the judgment against the
property or for the market value of the property as specified in
the judgment, whichever is less. The duty of the officer
conducting the sale to bid off the property to a taxing unit
under this subsection is self-executing. The actual attendance of
a representative of the taxing unit at the sale is not a
prerequisite to that duty.
(k) The taxing unit to which the property is bid off takes title
to the property for the use and benefit of itself and all other
taxing units that established tax liens in the suit. The taxing
unit's title includes all the interest owned by the defendant,
including the defendant's right to the use and possession of the
property, subject only to the defendant's right of redemption.
Payments in satisfaction of the judgment and any costs or
expenses of the sale may not be required of the purchasing taxing
unit until the property is redeemed or resold by the purchasing
taxing unit.
(l) Notwithstanding that property is bid off to a taxing unit
under this section, a taxing unit that established a tax lien in
the suit may continue to enforce collection of any amount for
which a former owner of the property is liable to the taxing
unit, including any post-judgment taxes, penalties, and interest,
in any other manner provided by law.
(m) 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. The taxing unit that requested the order of
sale may elect to prepare a deed for execution by the officer. If
the taxing unit prepares the deed, the officer shall execute that
deed. An officer who executes a deed prepared by the taxing unit
is not responsible or liable for any inconsistency, error, or
other defect in the form of the deed. As soon as practicable
after a deed is executed by the officer, the officer shall either
file the deed for recording with the county clerk or deliver the
executed deed to the taxing unit that requested the order of
sale, which shall file the deed for recording with the county
clerk. The county clerk shall file and record each deed filed
under this subsection and after recording shall return the deed
to the grantee.
(n) The deed vests good and perfect title in the purchaser or
the purchaser's assigns to the interest owned by the defendant in
the property subject to the foreclosure, including the
defendant's right to the use and possession of the property,
subject only to the defendant's right of redemption, the terms of
a recorded restrictive covenant running with the land that was
recorded before January 1 of the year in which the tax lien on
the property arose, a recorded lien that arose under that
restrictive covenant that was not extinguished in the judgment
foreclosing the tax lien, and each valid easement of record as of
the date of the sale that was recorded before January 1 of the
year the tax lien arose. The deed may be impeached only for
fraud.
(o) If a bid sufficient to pay the amount specified by
Subsection (p) is not received, the officer making the sale, with
the consent of the collector who applied for the tax warrant, may
offer property seized under Subchapter E, Chapter 33, to a person
described by Section 11.181 or 11.20 for less than that amount.
If the property is offered to a person described by Section
11.181 or 11.20, the officer making the sale shall reopen the
bidding at the amount of that person's bid and bid off the
property to the highest bidder. Consent to the sale by the taxing
units entitled to receive proceeds of the sale is not required.
The acceptance of a bid by the officer under this subsection is
conclusive and binding on the question of its sufficiency. An
action to set aside the sale on the grounds that a bid is
insufficient may not be sustained, except that a taxing unit that
participates in distribution of proceeds of the sale may file an
action before the first anniversary of the date of the sale to
set aside the sale on the grounds of fraud or collusion between
the officer making the sale and the purchaser.
(p) Except as provided by Subsection (o), property seized under
Subchapter E, Chapter 33, may not be sold for 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. If a sufficient bid is not received by the officer making
the sale, the officer shall bid off the property to a taxing unit
in the manner specified by Subsection (j) and subject to the
other provisions of that subsection. A taxing unit that takes
title to property under this subsection takes title for the use
and benefit of that taxing unit and all other taxing units that
established tax liens in the suit or that, on the date of the
seizure, were owed delinquent taxes on the property.
(q) A sale of property under this section to a purchaser other
than a taxing unit:
(1) extinguishes each lien securing payment of the delinquent
taxes, penalties, and interest against that property and included
in the judgment; and
(2) does not affect the personal liability of any person for
those taxes, penalties, and interest included in the judgment
that are not satisfied from the proceeds of the sale.
(r) Except as provided by this subsection, a sale of real
property under this section must take place at the county
courthouse in the county in which the land is located. The
commissioners court of the county may designate an area in the
county courthouse or another location in the county where sales
under this section must take place and shall record any
designated area or other location in the real property records of
the county. If the commissioners court designates an area in the
courthouse or another location in the county for sales, a sale
must occur in that area or at that location. If the commissioners
court does not designate an area in the courthouse or another
location in the county for sales, a sale must occur in the same
area in the courthouse that is designated by the commissioners
court for the sale of real property under Section 51.002,
Property Code.
(s) To the extent of a conflict between this section and a
provision of the Texas Rules of Civil Procedure that relates to
an execution, this section controls.
Acts 1979, 66th Leg., p. 2297, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1989, 71st Leg., ch. 796, Sec. 32, eff.
June 15, 1989; Acts 1991, 72nd Leg., ch. 854, Sec. 2, eff. June
16, 1991; Acts 1995, 74th Leg., ch. 1017, Sec. 2, eff. Aug. 28,
1995; Acts 1997, 75th Leg., ch. 914, Sec. 2, eff. Sept. 1, 1997;
Acts 1999, 76th Leg., ch. 817, Sec. 2, eff. Sept. 1, 1999; Acts
1999, 76th Leg., ch. 1481, Sec. 24, eff. Sept. 1, 1999; Acts
2001, 77th Leg., ch. 1430, Sec. 26, eff. Sept. 1, 2001; Acts
2003, 78th Leg., ch. 319, Sec. 8, eff. June 18, 2003.
Sec. 34.015. PERSONS ELIGIBLE TO PURCHASE REAL PROPERTY. (a)
In this section, "person" does not include a taxing unit or an
individual acting on behalf of a taxing unit.
(b) An officer conducting a sale of real property under Section
34.01 may not execute a deed in the name of or deliver a deed to
any person other than the person who was the successful bidder.
The officer may not execute or deliver a deed to the purchaser of
the property unless the purchaser exhibits to the officer an
unexpired written statement issued under this section to the
person by the county assessor-collector of the county in which
the sale is conducted showing that:
(1) there are no delinquent taxes owed by the person to that
county; and
(2) for each school district or municipality having territory in
the county there are no known or reported delinquent ad valorem
taxes owed by the person to that school district or municipality.
(c) On the written request of any person, a county
assessor-collector shall issue a written statement stating
whether there are any delinquent taxes owed by the person to that
county or to a school district or municipality having territory
in that county. A request for the issuance of a statement by the
county assessor-collector under this subsection must:
(1) sufficiently identify any property subject to taxation by
the county or by a school district or municipality having
territory in the county, regardless of whether the property is
located in the county, that the person owns or formerly owned so
that the county assessor-collector and the collector for each
school district or municipality having territory in the county
may determine whether the property is included on a current or a
cumulative delinquent tax roll for the county, the school
district, or the municipality under Section 33.03;
(2) specify the address to which the county assessor-collector
should send the statement;
(3) include any additional information reasonably required by
the county assessor-collector; and
(4) be sworn to and signed by the person requesting the
statement.
(d) On receipt of a request under Subsection (c), the county
assessor-collector shall send to the collector for each school
district and municipality having territory in the county, other
than a school district or municipality for which the county
assessor-collector is the collector, a request for information as
to whether there are any delinquent taxes owed by the person to
that school district or municipality. The county
assessor-collector shall specify the date by which the collector
must respond to the request.
(e) If the county assessor-collector determines that there are
delinquent taxes owed to the county, the county
assessor-collector shall include in the statement issued under
Subsection (c) the amount of delinquent taxes owed by the person
to that county. If the county assessor-collector is the collector
for a school district or municipality having territory in the
county and the county assessor-collector determines that there
are delinquent ad valorem taxes owed by the person to the school
district or municipality, the assessor-collector shall include in
the statement issued under Subsection (c) the amount of
delinquent taxes owed by the person to that school district or
municipality.
(f) If the county assessor-collector receives a response from
the collector for a school district or municipality having
territory in the county indicating that there are delinquent
taxes owed to that school district or municipality on the
person's current or former property for which the person is
personally liable, the county assessor-collector shall include in
the statement issued under Subsection (c):
(1) the amount of delinquent taxes owed by the person to that
school district or municipality; and
(2) the name and address of the collector for that school
district or municipality.
(g) If the county assessor-collector determines that there are
no delinquent taxes owed by the person to the county or to a
school district or municipality for which the county
assessor-collector is the collector, the county
assessor-collector shall indicate in the statement issued under
Subsection (c) that there are no delinquent ad valorem taxes owed
by the person to the county or to the school district or
municipality.
(h) If the county assessor-collector receives a response from
the collector for any school district or municipality having
territory in that county indicating that there are no delinquent
ad valorem taxes owed by the person to that school district or
municipality, the county assessor-collector shall indicate in the
statement issued under Subsection (c) that there are no
delinquent ad valorem taxes owed by the person to that school
district or municipality.
(i) If the county assessor-collector does not receive a response
from the collector for any school district or municipality to
whom the county assessor-collector sent a request under
Subsection (d) as to whether there are delinquent taxes on the
person's current or former property owed by the person to that
school district or municipality, the county assessor-collector
shall indicate in the statement issued under Subsection (c) that
there are no reported delinquent taxes owed by the person to that
school district or municipality.
(j) To cover the costs associated with the issuance of
statements under Subsection (c), a county assessor-collector may
charge the person requesting a statement a fee not to exceed $10
for each statement requested.
(k) A statement under Subsection (c) must be issued in the name
of the requestor, bear the requestor's name, include the dates of
issuance and expiration, and be eligible for recording under
Section 12.001(b), Property Code. A statement expires on the 90th
day after the date of issuance.
(k-1) If within six months of the date of a sale of real
property under Section 34.01, the successful bidder does not
exhibit to the officer who conducted the sale an unexpired
statement that complies with Subsection (k), the officer who
conducted the sale shall provide a copy of the officer's return
to the county assessor-collector for each county in which the
real property is located. On receipt of the officer's return,
the county assessor-collector shall file the copy with the county
clerk of the county in which the county assessor-collector
serves. The county clerk shall record the return in records kept
for that purpose and shall index and cross-index the return in
the name of the successful bidder at the auction and each former
owner of the property. The chief appraiser of each appraisal
district that appraises the real property for taxation may list
the successful bidder in the appraisal records of that district
as the owner of the property.
(l) The deed executed by the officer conducting the sale must
name the successful bidder as the grantee and recite that the
successful bidder exhibited to that officer an unexpired written
statement issued to the person in the manner prescribed by this
section, showing that the county assessor-collector of the county
in which the sale was conducted determined that:
(1) there are no delinquent ad valorem taxes owed by the person
to that county; and
(2) for each school district or municipality having territory in
the county there are no known or reported delinquent ad valorem
taxes owed by the person to that school district or municipality.
(m) If a deed contains the recital required by Subsection (l),
it is conclusively presumed that this section was complied with.
(n) A person who knowingly violates this section commits an
offense. An offense under this subsection is a Class B
misdemeanor.
(o) To the extent of a conflict between this section and any
other law, this section controls.
(p) This section applies only to a sale of real property under
Section 34.01 that is conducted in:
(1) a county with a population of 250,000 or more; or
(2) a county with a population of less than 250,000 in which the
commissioners court by order has adopted the provisions of this
section.
Added by Acts 2003, 78th Leg., ch. 1010, Sec. 2, eff. Sept. 1,
2003.
Amended by:
Acts 2005, 79th Leg., Ch.
86, Sec. 2, eff. May 17, 2005.
Acts 2005, 79th Leg., Ch.
1147, Sec. 1, eff. June 18, 2005.
Sec. 34.02. DISTRIBUTION OF PROCEEDS. (a) The proceeds of a
tax sale under Section 33.94 or 34.01 shall be applied in the
order prescribed by Subsection (b). The amount included under
each subdivision of Subsection (b) must be fully paid before any
of the proceeds may be applied to the amount included under a
subsequent subdivision.
(b) The proceeds shall be applied to:
(1) the costs of advertising the tax sale;
(2) any fees ordered by the judgment to be paid to an appointed
attorney ad litem;
(3) the original court costs payable to the clerk of the court;
(4) the fees and commissions payable to the officer conducting
the sale;
(5) the expenses incurred by a taxing unit in determining
necessary parties and in procuring necessary legal descriptions
of the property if those expenses were awarded to the taxing unit
by the judgment under Section 33.48(a)(4);
(6) the taxes, penalties, interest, and attorney's fees that are
due under the judgment; and
(7) any other amount awarded to a taxing unit under the
judgment.
(c) If the proceeds are not sufficient to pay the total amount
included under any subdivision of Subsection (b), each
participant in the amount included under that subdivision is
entitled to a share of the proceeds in an amount equal to the
proportion its entitlement bears to the total amount included
under that subdivision.
(d) The officer conducting a sale under Section 33.94 or 34.01
shall pay any excess proceeds after payment of all amounts due
all participants in the sale as specified by Subsection (b) to
the clerk of the court issuing the warrant or order of sale.
(e) In this section, "taxes" includes a charge, fee, or expense
that is expressly authorized by Section 32.06 or 32.065.
Acts 1979, 66th Leg., p. 2297, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1995, 74th Leg., ch. 131, Sec. 2, eff.
Sept. 1, 1995; Acts 1999, 76th Leg., ch. 1481, Sec. 25, eff.
Sept. 1, 1999; Acts 2003, 78th Leg., ch. 319, Sec. 9, eff. June
18, 2003.
Sec. 34.021. DISTRIBUTION OF EXCESS PROCEEDS IN OTHER TAX
FORECLOSURE PROCEEDINGS. A person conducting a sale for the
foreclosure of a tax lien under Rule 736 of the Texas Rules of
Civil Procedure shall, within 10 days of the sale, pay any excess
proceeds after payment of all amounts due all participants in the
sale to the clerk of the court that issued the order authorizing
the sale. The excess proceeds from such a sale shall be handled
according to Sections 34.03 and 34.04 of this code.
Added by Acts 2009, 81st Leg., R.S., Ch.
254, Sec. 1, eff. September 1, 2009.
Sec. 34.03. DISPOSITION OF EXCESS PROCEEDS. (a) The clerk of
the court shall:
(1) if the amount of excess proceeds is more than $25, before
the 31st day after the date the excess proceeds are received by
the clerk, send by certified mail, return receipt requested, a
written notice to the former owner of the property, at the former
owner's last known address according to the records of the court
or any other source reasonably available to the court, that:
(A) states the amount of the excess proceeds;
(B) informs the former owner of that owner's rights to claim the
excess proceeds under Section 34.04; and
(C) includes a copy or the complete text of this section and
Section 34.04; and
(2) regardless of the amount, keep the excess proceeds paid into
court as provided by Section 34.02(c) for a period of two years
after the date of the sale unless otherwise ordered by the court.
(b) If no claimant establishes entitlement to the proceeds
within the period provided by Subsection (a), the clerk shall
distribute the excess proceeds to each taxing unit participating
in the sale in an amount equal to the proportion its taxes,
penalties, and interests bear to the total amount of taxes,
penalties, and interest due all participants in the sale.
(c) The clerk shall note on the execution docket in each case
the amount of the excess proceeds, the date they were received,
and the date they were transmitted to the taxing units
participating in the sale.
Acts 1979, 66th Leg., p. 2298, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1981, 67th Leg., 1st C.S., p. 169, ch. 13,
Sec. 132, eff. Jan. 1, 1982; Acts 1999, 76th Leg., ch. 1185, Sec.
1, eff. Sept. 1, 1999.
Sec. 34.04. CLAIMS FOR EXCESS PROCEEDS. (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, provided that the former owner:
(A) was a defendant in the judgment;
(B) is related within the third degree by consanguinity or
affinity to a former owner that was a defendant in the judgment;
or
(C) acquired by will or intestate succession the interest in the
property of a former owner that was a defendant in the judgment.
(c-1) Except as provided by Subsections (c)(5)(B) and (C), a
former owner of the property that acquired an interest in the
property after the date of the judgment may not establish a claim
to the proceeds. For purposes of this subsection, a former owner
of the property is considered to have acquired an interest in the
property after the date of the judgment if the deed by which the
former owner acquired the interest was recorded in the real
property records of the county in which the property is located
after the date of the judgment.
(d) Interest or costs may not be allowed under this section.
(e) An order under this section directing that all or part of
the excess proceeds be paid to a party is appealable.
(f) A person may not take an assignment or other transfer of an
owner's claim to excess proceeds unless:
(1) the assignment or transfer is taken on or after the 36th day
after the date the excess proceeds are deposited in the registry
of the court;
(2) the assignment or transfer is in writing and signed by the
assignor or transferor;
(3) the assignment or transfer is not the result of an in-person
or telephone solicitation;
(4) the assignee or transferee pays the assignor or transferor
on the date of the assignment or transfer an amount equal to at
least 80 percent of the amount of the assignor's or transferor's
claim to the excess proceeds; and
(5) the assignment or transfer document contains a sworn
statement by the assignor or transferor affirming:
(A) that the assignment or transfer was given voluntarily;
(B) the date on which the assignment or transfer was made and
that the date was not earlier than the 36th day after the date
the excess proceeds were deposited in the registry of the court;
(C) that the assignor or transferor has received the notice from
the clerk required by Section 34.03;
(D) the nature and specific amount of consideration given for
the assignment or transfer;
(E) the circumstances under which the excess proceeds are in the
registry of the court;
(F) the amount of the claim to excess proceeds in the registry
of the court;
(G) that the assignor or transferor has made no other
assignments or transfers of the assignor's or transferor's claim
to the excess proceeds;
(H) that the assignor or transferor knows that the assignor or
transferor may retain counsel; and
(I) that the consideration was paid in full on the date of the
assignment or transfer and that the consideration paid was an
amount equal to at least 80 percent of the amount of the
assignor's or transferor's claim to the excess proceeds.
(g) An assignee or transferee who obtains excess proceeds
without complying with Subsection (f) is liable to the assignor
or transferor for the amount of excess proceeds obtained plus
attorney's fees and expenses. An assignee or transferee who
attempts to obtain excess proceeds without complying with
Subsection (f) is liable to the assignor or transferor for
attorney's fees and expenses.
(h) An assignee or transferee who files a petition setting forth
a claim to excess proceeds must attach a copy of the assignment
or transfer document and produce the original of the assignment
or transfer document in court at the hearing on the petition. If
the original assignment or transfer document is lost, the
assignee or transferee must obtain the presence of the assignor
or transferor to testify at the hearing. In addition, the
assignee or transferee must produce at the hearing the original
of any evidence verifying the payment of the consideration given
for the assignment or transfer. If the original of any evidence
of the payment is lost or if the payment was in cash, the
assignee or transferee must obtain the presence of the assignor
or transferor to testify at the hearing.
(i) A fee charged by an attorney to obtain excess proceeds for
an owner may not be greater than 25 percent of the amount
obtained or $1,000, whichever is less. A person who is not an
attorney may not charge a fee to obtain excess proceeds for an
owner.
(j) The amount of the excess proceeds the court may order be
paid to an assignee or transferee may not exceed 125 percent of
the amount the assignee or transferee paid the assignor or
transferor on the date of the assignment or transfer.
Acts 1979, 66th Leg., p. 2298, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1983, 68th Leg., p. 4829, ch. 851, Sec. 26,
eff. Aug. 29, 1983; Acts 1999, 76th Leg., ch. 1185, Sec. 2, eff.
Sept. 1, 1999; Acts 1999, 76th Leg., ch. 1481, Sec. 26, eff.
Sept. 1, 1999; Acts 2001, 77th Leg., ch. 1420, Sec. 18.007, eff.
Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1430, Sec. 27, eff.
Sept. 1, 2001; Acts 2003, 78th Leg., ch. 319, Sec. 10, eff. June
18, 2003.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
254, Sec. 2, eff. September 1, 2009.
Sec. 34.05. RESALE BY TAXING UNIT. (a) If property is sold to
a taxing unit that is a party to the judgment, the taxing unit
may sell the property at any time by public or private sale. In
selling the property, the taxing unit may, but is not required
to, use the procedures provided by Section 263.001, Local
Government Code, or Section 272.001, Local Government Code. The
sale is subject to any right of redemption of the former owner.
The redemption period begins on the date the deed to the taxing
unit is filed for record.
(b) Property sold pursuant to Subsections (c) and (d) of this
section may be sold for any amount. This subsection does not
authorize a sale of property in violation of Section 52, Article
III, Texas Constitution.
(c) The taxing unit purchasing the property by resolution of its
governing body may request the sheriff or a constable to sell the
property at a public sale. If the purchasing taxing unit has not
sold the property within six months after the date on which the
owner's right of redemption terminates, any taxing unit that is
entitled to receive proceeds of the sale by resolution of its
governing body may request the sheriff or a constable in writing
to sell the property at a public sale. On receipt of a request
made under this subsection, the sheriff or constable shall sell
the property as provided by Subsection (d), unless the property
is sold under Subsection (h) or (i) before the date set for the
public sale.
(d) Except as provided by this subsection, all public sales
requested as provided by Subsection (c) shall be conducted in the
manner prescribed by the Texas Rules of Civil Procedure for the
sale of property under execution. The notice of the sale must
contain a description of the property to be sold, the number and
style of the suit under which the property was sold at the tax
foreclosure sale, and the date of the tax foreclosure sale. The
description of the property in the notice is sufficient if it is
stated in the manner provided by Section 34.01(f). If the
commissioners court of a county by order specifies the date or
time at which or location in the county where a public sale
requested under Subsection (c) shall be conducted, the sale shall
be conducted on the date and at the time and location specified
in the order. The acceptance of a bid by the officer conducting
the sale is conclusive and binding on the question of its
sufficiency. An action to set aside the sale on the grounds that
the bid is insufficient may not be sustained in court, except
that a taxing unit that participates in distribution of proceeds
of the sale may file an action before the first anniversary of
the date of the sale to set aside the sale on the grounds of
fraud or collusion between the officer making the sale and the
purchaser. On conclusion of the sale, the officer making the sale
shall prepare a deed to the purchaser. The taxing unit that
requested the sale may elect to prepare a deed for execution by
the officer. If the taxing unit prepares the deed, the officer
shall execute that deed. An officer who executes a deed prepared
by the taxing unit is not responsible or liable for any
inconsistency, error, or other defect in the form of the deed. As
soon as practicable after a deed is executed by the officer, the
officer shall either file the deed for recording with the county
clerk or deliver the executed deed to the taxing unit that
requested the sale, which shall file the deed for recording with
the county clerk. The county clerk shall file and record each
deed under this subsection and after recording shall return the
deed to the grantee.
(e) The presiding officer of a taxing unit selling real property
under Subsection (h) or (i), under Section 34.051, or under
Section 253.010, Local Government Code, or the sheriff or
constable selling real property under Subsections (c) and (d)
shall execute a deed to the property conveying to the purchaser
the right, title, and interest acquired or held by each taxing
unit that was a party to the judgment foreclosing tax liens on
the property. The conveyance shall be made subject to any
remaining right of redemption at the time of the sale.
(f) An action attacking the validity of a resale of property
pursuant to this section may not be instituted after the
expiration of one year after the date of the resale.
(g) A taxing unit to which property is bid off may recover its
costs of upkeep, maintenance, and environmental cleanup from the
resale proceeds without further court order.
(h) In lieu of a sale pursuant to Subsections (c) and (d) of
this section, the taxing unit that purchased the property may
sell the property at a private sale. Consent of each taxing unit
entitled to receive proceeds of the sale under the judgment is
not required. Property sold under this subsection may not be sold
for an amount that is less than the lesser of:
(1) the market value specified in the judgment of foreclosure;
or
(2) the total amount of the judgments against the property.
(i) In lieu of a sale pursuant to Subsections (c) and (d) of
this section, the taxing unit that purchased the property may
sell the property at a private sale for an amount less than
required under Subsection (h) of this section with the consent of
each taxing unit entitled to receive proceeds of the sale under
the judgment. This subsection does not authorize a sale of
property in violation of Section 52, Article III, Texas
Constitution.
Acts 1979, 66th Leg., p. 2298, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1983, 68th Leg., p. 4829, ch. 851, Sec. 27,
eff. Aug. 29, 1983; Acts 1995, 74th Leg., ch. 499, Sec. 1, eff.
Aug. 28, 1995; Acts 1997, 75th Leg., ch. 310, Sec. 1, eff. Sept.
1, 1997; Acts 1997, 75th Leg., ch. 712, Sec. 3, 4, eff. June 17,
1997; Acts 1997, 75th Leg., ch. 906, Sec. 9, eff. Jan. 1, 1998;
Acts 1997, 75th Leg., ch. 1111, Sec. 5, 8, eff. Sept. 1, 1997;
Acts 1997, 75th Leg., ch. 1136, Sec. 2, eff. Sept. 1, 1997; Acts
1997, 75th Leg., ch. 1192, Sec. 2, eff. Sept. 1, 1997; Acts 1999,
76th Leg., ch. 1481, Sec. 27 to 29, 42(2), eff. Sept. 1, 1999;
Acts 2001, 77th Leg., ch. 1430, Sec. 28, eff. Sept. 1, 2001.
Sec. 34.051. RESALE BY TAXING UNIT FOR THE PURPOSE OF URBAN
REDEVELOPMENT. (a) A municipality is authorized to resell tax
foreclosed property for less than the market value specified in
the judgment of foreclosure or less than the total amount of the
judgments against the property if consent to the conveyance is
evidenced by an interlocal agreement between the municipality and
each taxing unit that is a party to the judgment, provided,
however, that the interlocal agreement complies with the
requirements of Subsection (b).
(b) Any taxing unit may enter into an interlocal agreement with
the municipality for the resale of tax foreclosed properties to
be used for a purpose consistent with the municipality's urban
redevelopment plans or the municipality's affordable housing
policy. If the tax foreclosed property is resold pursuant to this
section to be used for a purpose consistent with the
municipality's urban redevelopment plan or affordable housing
policy, the deed of conveyance must refer to or set forth the
applicable terms of the urban redevelopment plan or affordable
housing policy. Any such interlocal agreement should include the
following:
(1) a general statement and goals of the municipality's urban
redevelopment plans or affordable housing policy, as applicable;
(2) a statement that the interlocal agreement concerns only tax
foreclosed property that is either vacant or distressed and has a
tax delinquency of six or more years;
(3) a statement that the properties will be used only for a
purpose consistent with an urban redevelopment plan or affordable
housing policy, as applicable, that is primarily aimed at
providing housing for families of low or moderate income;
(4) a statement that the principal goal of the interlocal
agreement is to provide an efficient mechanism for returning
deteriorated or unproductive properties to the tax rolls,
enhancing the value of ownership to the surrounding properties,
and improving the safety and quality of life in deteriorating
neighborhoods; and
(5) a provision that all properties are sold subject to any
right of redemption.
(c) The deed of conveyance of property sold under this section
conveys to the purchaser the right, title, and interest acquired
or held by each taxing unit that was a party to the judgment of
foreclosure, subject to any remaining right of redemption at the
time of the sale.
(d) An action attacking the validity of a sale of property
pursuant to this section may not be instituted after the
expiration of one year after the date of the sale and then only
after the unconditional tender into the registry of the court of
an amount equal to all taxes, penalties, interest, costs, and
post-judgment interest of all judgments on which the original
foreclosure sale was based.
Added by Acts 1997, 75th Leg., ch. 1136, Sec. 3, eff. Sept. 1,
1997. Amended by Acts 2001, 77th Leg., ch. 819, Sec. 1, eff. June
14, 2001; Acts 2001, 77th Leg., ch. 1430, Sec. 29, eff. Sept. 1,
2001.
Sec. 34.06. DISTRIBUTION OF PROCEEDS OF RESALE. (a) The
proceeds of a resale of property purchased by a taxing unit at a
tax foreclosure sale shall be paid to the purchasing taxing unit.
(b) The proceeds of the resale shall be distributed as required
by Subsections (c)-(e).
(c) The purchasing taxing unit shall first retain an amount from
the proceeds to reimburse the unit for reasonable costs, as
defined by Section 34.21, incurred by the unit for:
(1) maintaining, preserving, and safekeeping the property;
(2) marketing the property for resale; and
(3) costs described by Subsection (f).
(d) After retaining the amount authorized by Subsection (c), the
purchasing taxing unit shall then pay all costs of the suit and
the sale of the property in the same manner and in the same order
of priority as provided by Sections 34.02(b)(1)-(5).
(e) After making the distribution under Subsection (d), any
remaining balance of the proceeds shall be paid to each taxing
unit participating in the sale in an amount equal to the
proportion each participant's taxes, penalties, and interest bear
to the total amount of taxes, penalties, and interest adjudged to
be due all participants in the sale.
(f) The purchasing taxing unit is entitled to recover from the
proceeds of a resale of the property any cost incurred by the
taxing unit in inspecting the property to determine whether there
is a release or threatened release of solid waste from the
property in violation of Chapter 361, Health and Safety Code, or
a rule adopted or permit or order issued by the Texas Natural
Resource Conservation Commission under that chapter, or a
discharge or threatened discharge of waste or a pollutant into or
adjacent to water in this state from a point of discharge on the
property in violation of Chapter 26, Water Code, or a rule
adopted or permit or order issued by the commission under that
chapter, and in taking action to remove or remediate the release
or threatened release or discharge or threatened discharge
regardless of whether the taxing unit:
(1) was required by law to incur the cost; or
(2) obtained the consent of each taxing unit entitled to receive
proceeds of the sale under the judgment of foreclosure to incur
the cost.
Acts 1979, 66th Leg., p. 2299, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1997, 75th Leg., ch. 38, Sec. 1, eff. May
5, 1997; Acts 1997, 75th Leg., ch. 906, Sec. 10, eff. Jan. 1,
1998; Acts 1997, 75th Leg., ch. 914, Sec. 3, eff. Sept. 1, 1997;
Acts 1999, 76th Leg., ch. 1481, Sec. 30, eff. Sept. 1, 1999; Acts
2003, 78th Leg., ch. 319, Sec. 11, eff. June 18, 2003.
Sec. 34.07. SUBROGATION OF PURCHASER AT VOID SALE. (a) The
purchaser at a void or defective tax sale or tax resale is
subrogated to the rights of the taxing unit in whose behalf the
property was sold or resold to the same extent a purchaser at a
void or defective sale conducted in behalf of a judgment creditor
is subrogated to the rights of the judgment creditor.
(b) Except as provided by Subsection (c), the purchaser at a
void or defective tax sale or tax resale is subrogated to the tax
lien of the taxing unit in whose behalf the property was sold or
resold to the same extent a purchaser at a void or defective
mortgage or other lien foreclosure sale is subrogated to the lien
of the lienholder, and the purchaser is entitled to a
reforeclosure of the lien to which the purchaser is subrogated.
(c) If the purchaser at a void or defective tax sale or tax
resale paid less than the total amount of the judgment against
the property, the purchaser is subrogated to the tax lien only in
the amount the purchaser paid at the sale or resale.
(d) In lieu of pursuing the subrogation rights provided by this
section to which a purchaser is subrogated, a purchaser at a void
tax sale or tax resale may elect to file an action against the
taxing units to which proceeds of the sale were distributed to
recover an amount from each taxing unit equal to the distribution
of taxes, penalties, interest, and attorney's fees the taxing
unit received. In a suit filed under this subsection, the
purchaser may include a claim for, and is entitled to recover,
any excess proceeds of the sale that remain on deposit in the
registry of the court or, in the alternative, is entitled to have
judgment against any party to whom the excess proceeds have been
distributed. A purchaser who files a suit authorized by this
subsection waives all rights of subrogation otherwise provided by
this section. This subsection applies only to an original
purchaser at a tax sale or resale and only if that purchaser has
not subsequently sold the property to another person.
(e) If the purchaser prevails in a suit filed under Subsection
(d), the court shall expressly provide in its final judgment
that:
(1) the tax sale is vacated and set aside; and
(2) any lien on the property extinguished by the tax sale is
reinstated on the property effective as of the date on which the
lien originally attached to the property.
(f) A suit filed against the taxing units under Subsection (d)
may not be maintained unless the action is instituted before the
first anniversary of the date of sale or resale. In this
subsection:
(1) "Date of sale" means the first Tuesday of the month on which
the sheriff or constable conducted the sale of the property under
Section 34.01.
(2) "Date of resale" means the date on which the grantor's
acknowledgment was taken or, in the case of multiple grantors,
the latest date of acknowledgment by the grantors as shown in the
deed.
Acts 1979, 66th Leg., p. 2299, ch. 841, Sec. 1, eff. Jan. 1,
1982. Amended by Acts 1999, 76th Leg., ch. 1481, Sec. 31, eff.
Sept. 1, 1999; Acts 2001, 77th Leg., ch. 1430, Sec. 30, eff.
Sept. 1, 2001.
Sec. 34.08. CHALLENGE TO VALIDITY OF TAX SALE. (a) A person
may not commence an action that challenges the validity of a tax
sale under this chapter unless the person:
(1) deposits into the registry of the court an amount equal to
the amount of the delinquent taxes, penalties, and interest
specified in the judgment of foreclosure obtained against the
property plus all costs of the tax sale; or
(2) files an affidavit of inability to pay under Rule 145, Texas
Rules of Civil Procedure.
(b) A person may not commence an action challenging the validity
of a tax sale after the time set forth in Section 33.54(a)(1) or
(2), as applicable to the property, against a subsequent
purchaser for value who acquired the property in reliance on the
tax sale. The purchaser may conclusively presume that the tax
sale was valid and shall have full title to the property free and
clear of the right, title, and interest of any person that arose
before the tax sale, subject only to recorded restrictive
covenants and valid easements of record set forth in Section
34.01(n) and subject to applicable rights of redemption.
(c) If a person is not barred from bringing an action
challenging the validity of a tax sale under Subsection (b) or
any other provision of this title or applicable law, the person
must bring an action no later than two years after the cause of
action accrues to recover real property claimed by another who:
(1) pays applicable taxes on the real property before overdue;
and
(2) claims the property under a registered deed executed
pursuant to Section 34.01.
(d) Subsection (c) does not apply to a claim based on a forged
deed.
Added by Acts 1997, 75th Leg., ch. 1136, Sec. 4, eff. Sept. 1,
1997; Acts 1997 75th Leg., ch. 1192, Sec. 3, eff. Sept. 1, 1997.
Amended by Acts 1999, 76th Leg., ch. 1481, Sec. 32, eff. Sept. 1,
1999.
SUBCHAPTER B. REDEMPTION
Sec. 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) The owner of real property sold at a tax sale may redeem the
real property by paying the required amount as prescribed by this
section to the assessor-collector for the county in which the
property was sold, if the owner of the real property makes an
affidavit stating:
(1) that the period in which the owner's right of redemption
must be exercised has not expired; and
(2) 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.
(f-1) An assessor-collector who receives an affidavit and
payment under Subsection (f) shall accept that the assertions set
out in the affidavit are true and correct. 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. An
assessor-collector is not liable to any person for performing the
assessor-collector's duties under this subsection in reliance on
the assertions contained in an affidavit.
(g) In this section:
(1) "Land designated for agricultural use" means land for which
an application for appraisal under Subchapter C or D, Chapter 23,
has been finally approved.
(2) "Costs" includes:
(A) the amount reasonably spent by the purchaser for
maintaining, preserving, and safekeeping the property, including
the cost of:
(i) property insurance;
(ii) repairs or improvements required by a local ordinance or
building code or by a lease of the property in effect on the date
of the sale;
(iii) discharging a lien imposed by a municipality to secure
expenses incurred by the municipality in remedying a health or
safety hazard on the property;
(iv) dues or assessments for maintenance paid to a property
owners' association under a recorded restrictive covenant to
which the property is subject; and
(v) impact or standby fees imposed under the Local Government
Code or Water Code and paid to a political subdivision; and
(B) if the purchaser is a taxing unit to which the property is
bid off under Section 34.01, personnel and overhead costs
reasonably incurred by the purchaser in connection with
maintaining, preserving, safekeeping, managing, and reselling the
property.
(3) "Purchaser" includes a taxing unit to which property is bid
off under Section 34.01.
(4) "Residence homestead" has the meaning assigned by Section
11.13.
(h) The right of redemption does not grant or reserve in the
former owner of the real property the right to the use or
possession of the property, or to receive rents, income, or other
benefits from the property while the right of redemption exists.
(i) The owner of property who is entitled to redeem the property
under this section may request that the purchaser of the
property, or the taxing unit to which the property was bid off,
provide that owner a written itemization of all amounts spent by
the purchaser or taxing unit in costs on the property. The owner
must make the request in writing and send the request to the
purchaser at the address shown for the purchaser in the
purchaser's deed for the property, or to the business address of
the collector for the taxing unit, as applicable. The purchaser
or the collector shall itemize all amounts spent on the property
in costs and deliver the itemization in writing to the owner not
later than the 10th day after the date the written request is
received. Delivery of the itemization to the owner may be made by
depositing the document in the United States mail, postage
prepaid, addressed to the owner at the address provided in the
owner's written request. Only those amounts included in the
itemization provided to the owner may be allowed as costs for
purposes of redemption.
(j) A quitclaim deed to an owner redeeming property under this
section is not notice of an unrecorded instrument. The grantee of
a quitclaim deed and a successor or assign of the grantee may be
a bona fide purchaser in good faith for value under recording
laws.
(k) The inclusion of dues and assessments for maintenance paid
to a property owners' association within the definition of
"costs" under Subsection (g) may not be construed as:
(1) a waiver of any immunity to which a taxing unit may be
entitled from a suit or from liability for those dues or
assessments; or
(2) authority for a taxing unit to make an expenditure of public
funds in violation of Section 50, 51, or 52(a), Article III, or
Section 3, Article XI, Texas Constitution.
Acts 1979, 66th Leg., p. 2300, ch. 841, Sec. 1, eff. Jan. 1,
1979. Amended by Acts 1989, 71st Leg., ch. 796, Sec. 33, eff.
June 15, 1989; Acts 1991, 72nd Leg., ch. 419, Sec. 1, eff. Aug.
26, 1991; Acts 1993, 73rd Leg., ch. 349, Sec. 1, eff. May 29,
1993; Acts 1997, 75th Leg., ch. 906, Sec. 11, eff. Jan. 1, 1998;
Acts 1997, 75th Leg., ch. 914, Sec. 4, eff. Sept. 1, 1997; Acts
1997, 75th Leg., ch. 1111, Sec. 6, 8, eff. Sept. 1, 1997; Acts
1999, 76th Leg., ch. 1481, Sec. 33, eff. Sept. 1, 1999; Acts
2001, 77th Leg., ch. 231, Sec. 1, eff. May 22, 2001; Acts 2001,
77th Leg., ch. 1430, Sec. 31, eff. Sept. 1, 2001; Acts 2003, 78th
Leg., ch. 319, Sec. 12, eff. June 18, 2003; Acts 2003, 78th Leg.,
ch. 510, Sec. 1, eff. Jan. 1, 2004.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
374, Sec. 1, eff. September 1, 2009.
Sec. 34.22. EVIDENCE OF TITLE TO REDEEM REAL PROPERTY. (a) A
person asserting ownership of real property sold for taxes is
entitled to redeem the property if he had title to the property
or he was in possession of the property in person or by tenant
either at the time suit to foreclose the tax lien on the property
was instituted or at the time the property was sold. A defect in
the chain of title to the property does not defeat an offer to
redeem.
(b) A person who establishes title to real property that is
superior to the title of one who has previously red