Buying at a Tax Foreclosure Sale
Purchaser Must Obtain Statement of No Delinquent Taxes
Purchasers at tax foreclosure sales must now have a statement of no delinquent taxes from the county tax office where the property is located. This new law applies to the public sale of real property conducted on or after October 1, 2003.
Effective September 1, 2003, House Bill 335 added Tax Code Section 34.015 to require a person purchasing property at a tax foreclosure sale to show the officer conducting the sale that the person owes no delinquent property taxes to that county or the school districts or cities in that county. The officer may not execute or deliver a deed to the purchaser until the person shows such statement.
The person requests in writing a statement of no taxes owed for those taxing units from the county tax assessor-collector. The sworn request identifies property the person owns or formerly owned.
The county tax assessor-collector issues a statement showing either no delinquent taxes for the taxing units or shows the amounts owed each unit for property during the person’s ownership of those properties. The collector may charge a fee not to exceed $10 for each statement requested.
To help with implementing this new legislation, the Comptroller’s Property Tax Division has provided the following three forms:
Form 50–307 - Request for Written Statement about Delinquent Taxes for Tax Foreclosure Sale. A person or company completes and has notarized this form that requests the county tax assessor-collector to report any delinquent taxes owed the county or any cities or school districts in that county by the requesting person/company. The person/company lists properties currently owned or formerly owned. The county tax office may charge a fee not to exceed $10 per request.
Form 50–308 - Request to Taxing Unit for Statement of Delinquent Taxes for Tax Foreclosure Sale. The county tax assessor-collector uses this form to request the cities and school districts (for which the county tax assessor-collector does not collect) to report any delinquent taxes owed by the requesting person/company. The city or school district reports the total amount of delinquent taxes, penalties and interest. The county tax assessor-collector indicates a date to return the request.
Form 50–309 - Written Statement About Delinquent Taxes Required to Purchase at Tax Foreclosure Sale. The county tax assessor-collector completes the written statement showing either no delinquent taxes or indicating delinquent taxes are owed to which taxing units and for what total amount. If a school district or city did not report, the county assessor-collector shall state no report received. If delinquent taxes are listed on this statement, the requesting person/company would need to pay the delinquent taxes and request a new statement to show no delinquencies.
The county tax assessor-collector’s statement must show the dates of issuance and expiration. A statement expires on the 90th day after issuance of the statement.
This statement is eligible for recording under Property Code Section 12.001(b). That section provides that “an instrument conveying real property may not be recorded unless it is signed and acknowledged or sworn to by the grantor in the presence of two or more credible subscribing witnesses or acknowledged or sworn to before and certified by an officer authorized to take acknowledgements or oaths, as applicable.”