Understanding Excess Proceeds Recovery in Texas
Excess proceeds recovery is a legal process that allows property owners to recover any surplus funds (also known as Overages) left over after a property has been sold at a tax sale. In Texas, the process of excess proceeds recovery can be complex, and it’s essential to have an experienced attorney on your side to ensure that you get the full amount of funds owed to you.
At the Law Office of Victor D. Walker, P.C., we have years of experience helping clients, including, individuals, businesses, trusts and non-profit entities, recover excess proceeds in Texas. In this blog post, we’ll provide an overview of excess proceeds recovery and the steps you need to take to claim your funds.
What are Excess Proceeds?
Excess proceeds are the funds left over after a property has been sold at a tax sale for more than the amount of delinquent taxes, penalties, interest, and fees owed on the property. In Texas, excess proceeds are held in trust in each county’s court registry for the property owner for a specified period, typically 2 years after the tax sale date, before they are forfeited to the various taxing unit (ie. County, City, Independent School District, etc.).
Who is Eligible to Claim Excess Proceeds?
In Texas, property owners or lienholders are entitled to claim excess proceeds from a tax sale. If there are multiple owners or lienholders, they must agree on how to divide the funds or obtain a court order to distribute the funds. The various taxing units are also entitled to file and additional post-judgment claim from the excess proceeds held in the court registry for subsequent accrued unpaid taxes relating to tax years not included in their original property tax suit.
How to Claim Excess Proceeds?
To claim excess proceeds in Texas, you must follow specific legal procedures. These include:
Filing a claim in Court: You must file a claim for the excess proceeds with the county district court in the county where the property was sold. The claim must be filed within the specified time period, typically 2 years from the date of the sale. Property recorded in the name of a corporation must be represented in court by an attorney in Texas.
Providing documentation: You must provide proof of your ownership, heirship relationship or lien on the property, such as a deed or lien release. Each district court typically has specific documentation and supporting evidence required for recovery of excess proceeds.
Paying fees: You may be required to pay court or filing fees to file your claim, as well as any additional administrative & processing fees required to obtain your excess proceeds.
Attending a hearing: If there are multiple claims on the excess proceeds, a hearing may be required to determine the rightful owner. Depending on the County District Court your claim must be filed in, their court procedures may have different court appearance protocols, such as in- person oral hearing, by zoom hearing or by telephone conference directly with the court judge.
At the Law Office of Victor D. Walker, P.C., we can assist you with every step of the excess proceeds recovery process. Our experienced attorneys can help you file a claim, provide the necessary documentation and research, defend you and your claim against competing claimants and represent you at any required hearings.
If you are a property owner or lienholder in Texas, you may be entitled to excess proceeds from a tax sale. At the Law Office of Victor D. Walker, P.C., we can help you navigate the complex legal process of claiming your excess proceeds and ensure that you get the full amount of funds owed to you. Contact Attorney Victor D. Walker at 713-724-5300 today to schedule a consultation and learn more about how we can assist you with recovering your excess proceeds recovery in any Texas Court.