I second the question, I too would like to know where or who to talk to about this stuff. I got a phone call about this tax lien stuff and the guy wants me to pay them $10,000 to learn how to do this tax lien stuff. I figure I got this far in life, with my brains and will power. I should be able to do it for less then $10,000?
Material is a little dated, but suggest you read " The 16% Solution" by Joel S Moskowitz.
Not sure what the $10,000. charge includes but there are more inexpensive mentoring packages available. Price seems very high.
Good luck.
The 16% Solution is a great overview and a little outdated. If you're interested mainly in Texas you may want to do a google search on Linebarger, Googan, Blair & Sampson LLP; an attorney firm in Longview, Tx. They have a good web site that tells you about the process in Texas. Travis County, Tx also has a good web site about the process.
I agree, the $10,000 price to get started is MIGHTY steep. I buy TLC's in Louisiana and I started by reading all the free information I could get my hands on; then spent an hour with an attorney who knew a lot about TLC's. Even I can understand it and I'm not the sharpest tool in the shed (just ask my ex-wife!!).
Good luck!
Mike in Louisiana
Thanks John that is the best advice I have read all day..I just got my hands on a book that a mortgage friend of mine let me borrow that helped him get started in mississippi.....John Beck's.."mortgage free and clear pennies on the dollar". I have yet to read it but he said it was a good way to get started.
First of all, Texas doesn't issue tax leins but rather tax deeds. This makes things simpler in some ways and more complicated in others. If you look back through the archives on this site, you will find some who think Texas is the best state for tax sale investing and others who think it is the worst.
I would not agree so quickly that investing in tax sales here in Texas is "easy," but I would agree that you don't need to spend thousands on course materials either. The biggest issue that Texas has is that SOME LEINS CAN STAY ATTACHED.
This makes it much more difficult for those outside of the state to invest, however it does happen. Just plan on spending some time in our lovely state.
A change in the laws here being enacted next month... bidders at the tax sales are no longer going to be allowed to assign the tax deed to another person at the sale. I presume (don't know for sure) that they will still be able to sell/assign it to you later. This will make it a bit more difficult to have a local agent handle things for you.
Take a look at the coursework offered here on TCI by Darius Barazandeh if you want Texas specific info.
I buy at auctions here. But be very careful that you get the list early, pick the property (s) you are interested in and research them yourself at the courthouse records office, decide if they still are worth it (I stay away from ones with mortgage leins unless you want to risk having a mortgage after you buy it and IRS or USA gov leins), decide how much you will spend, DO NOT GO OVER THAT, there is a redemption period-Go to the office of the secretary of state's website and get more info on that, watch and see who your competitors are and what kinds of properties they buy (you may stay out of their "territory", do not be pressured to go higher and higher on your bids.
Some will not be bought and will go to the "struck off" list to be sold after the sale in the tax office, you can get a list of struckoff properties there.
A search for this firm: Linebarger, Googan, Blair & Sampson LLP on MSN reveiles that they where indictments against two of their partners for bribery in obtaining contracts from San Antonio and New Orleans to collect on back taxes and penalties.
I don't think I would want to tie my money up there to long.
Texas, Georgia and Hawaii are the three states with well documented Deed Certificate auctions. Texas has the shortest redemption period (6 months) and a great 25% penalty due at issue.
Each county holds auctions monthly, although this creates demand as there are fewer properties available at each auction.
not every county in TX holds tax deed sales monthly. They can be as far apart as 3 to 6 months it is up to the county and how many properties are deliquent. But always on the first Tue of the month in the morning. The foreclosure auction is held the same day of the month in the afternoon and are usually held each month if there are any foreclosures that month.
"Texas has the shortest redemption period (6 months) and a great 25% penalty due at issue.
Each county holds auctions monthly, although this creates demand as there are fewer properties available at each auction."
Both statements are incorrect. First, TX redemption period is 2 years, any time in first year the investor's net yield is 25%, and in 2d year it's 50% interest.
And lots of TX 252 counties do not have monthly tax auctions, but just as often as the tax collector and Co. Commissioners decree them useful.
There are a number of books or training manuals that will give you the information you want. One is listed at ****Must Reach Senior Investor status before posting URL's*** and another good one is by Darious somethingorother (I can't remember his last name). Both are good and a heck of a lot less than $10,000.00
H.B. 335
Amends/Enacts: § 34.015 Tax Code and § 34.0445 Civil Practice and Remedies Code
Effective date: September 1, 2003 (applies to a public sale occurring after October 1, 2003)
This bill is intended to prevent people who owe delinquent taxes to a county or to a school district or city with territory in that county from buying property at tax-foreclosure sales in that county. The bill places certain restrictions and requirements on the sheriff or officer conducting the sheriff’s sale, the county tax assessor-collector and the prospective purchaser.
Sheriff or Officer Conducting a Sheriff’s Sale
The Sheriff or officer conducting a sale:
1. May not execute or deliver a deed to a purchaser unless the purchaser exhibits to the sheriff an “Unexpired Written Statement” that indicates the purchaser does not owe any delinquent taxes to the county where the property is located or to any city or school district located in the county.
2. May not execute a deed in the name of or deliver a deed to any person other than the successful bidder at the sale.
3. Must name in the deed and deliver the deed to the person who bid on the property.
The deed that the sheriff or officer executes must state that the sheriff or officer complied with these requirements. It is a Class B Misdemeanor if the sheriff or officer violates these rules.
Prospective Purchaser
A prospective purchaser:
1. May not bid on or purchase property in the name of any other individual.
2. Must present to the sheriff or officer conducting the sale an “Unexpired Written Statement” issued by the county tax assessor-collector that states the purchaser does not owe any delinquent taxes to the county or any city or school in the county.
3. A person requesting a statement from a county’s tax assessor-collector must submit a sworn, written request that identifies each taxable property that he owns or formerly owned in the county or in any city or school district with territory in that county.
County Tax Assessor-Collector
The county tax assessor-collector:
1. Upon receiving a sworn request will determine whether the requestor owes any delinquent taxes to the county or any city or school district whose taxes are collected by the county.
2. The county tax assessor-collector will contact the tax assessor-collectors for the cities and school districts to determine whether the requestor owes delinquent taxes to any of those cities or school districts.
3. The county assessor-collector will issue a statement reflecting any delinquent taxes that the requestor owes or stating that he does not owe any reported delinquent taxes. If delinquent taxes are not reported by a city or school district, those taxes will not be included in the county assessor-collector’s statement and will not prevent the requestor from buying property at a tax-foreclosure sale.
4. The assessor-collector may charge up to $10 for issuing a statement. The statement will be valid for 90 days.
In order to buy real property at a tax-foreclosure sale, a person must be the one who actually bids on the property at the sale. The statute prohibits a person purchasing property for another person (including a person’s wife or other relative). The purchaser must exhibit to the officer conducting the sale an “Unexpired Written Statement” showing that he does not owe any delinquent taxes. In order to obtain a valid “Unexpired Written Statement” the purchaser must submit a sworn request to the county tax assessor-collector. The request must list all properties that the purchaser has owned and currently owns.
Upon receipt of a sworn request, the tax assessor-collector must not only check the status of the county’s taxes and any other taxes that the county is responsible to collect, but also whether the requestor owes delinquent taxes to any other city or school district that taxes property in the county. The county tax assessor-collector must therefore send a copy of the request to all tax assessor-collectors of any cities or schools that tax property located in the county. The other tax assessor-collectors must inform the county tax assessor-collector whether or not the requestor owes any delinquent taxes, and, if so, the amount of delinquent taxes owed. Unfortunately the statute does not specify a time limit in which the other tax assessor-collectors must respond, it leaves that up to the county tax assessor collector.
The tax assessor-collectors are responsible for determining whether the requestor owes any delinquent taxes. The tax assessor-collector will list any delinquent taxes that are currently assessed in the name of the requestor. A person is liable for payment of delinquent taxes assessed against property they own on January 1 of the year of the delinquent tax despite the fact they no longer own the property. Contrast that situation where a requestor acquires property that has delinquent taxes assessed against it. A person is not liable if he did not own the property on January 1 of the year of the delinquent taxes.
If a requestor did business under a trade name and that business has outstanding delinquent taxes owed by it, the requestor may or may not owe those taxes. If the requestor is an individual and did business under the trade name, he is personally liable for those taxes. If however the requestor operated as a corporation or limited partnership or limited liability company, he is not individually liable for those taxes.
The sheriff or officer may not execute or deliver a deed to anyone other than the successful bidder. The statute also requires that the sheriff or officer may only deliver the deed to the purchaser after that person has exhibited an “Unexpired Written Statement” issued by the county tax assessor-collector stating no delinquent taxes are owed. The statute however does not specify the time frame in which a purchaser must obtain the “Unexpired Written Statement” to exhibit to the sheriff or officer that conducted the sale. A deed from a sheriff or officer conducting a tax-foreclosure sale must name the successful bidder as the grantee. The deed must recite that the buyer had a valid statement and showed it to the sheriff or officer. The deed, when recorded, will conclusively prove that the law was followed. A person who knowingly violates this law is guilty of a misdemeanor.
The same requirements will apply to a sale of property under a writ of execution. A delinquent taxpayer will not be able to buy property at such a sale.
Q & A
Q. Must a person have an “Unexpired Written Statement” listing no taxes due before he can bid on property at a tax sale?
A. No, the statute does not prohibit a person from bidding on property at a tax sale without an “Unexpired Written Statement”. It only prohibits a sheriff or officer from executing a deed or delivering a deed to the person without that person exhibiting an “Unexpired Written Statement” listing no taxes due.
Q. May a person bid on property at a tax sale and have the deed list another person as the grantee?
A. No, the statute states that only the bidder may be listed on the deed.
Q. May one spouse purchase property and have the deed list both spouses?
A. Only if both spouses bid on the property and both obtain an “Unexpired Written Statement”.
Q. May a business request a “Written Statement”?
A. Yes, a Requestor may be an individual or business organization such as a corporation, partnership, limited liability company, or even a church or a trust. A taxing unit is not subject to requirements of this statute.
Q. What information does a requestor have to give the tax assessor-collector in order to receive a “Written Statement”?
A. The statute requires the requestor to identify all property the requestor owns or has previously owned. And to specify the mailing address to which the Written Statement will be mailed. The Request must also be sworn.
Q. What tax assessor-collectors are contacted in order to process a Request for a Written Statement?
A. The requestor makes their request to the County Tax Assessor-Collector of the county where the property is located. The County Tax Assessor-Collector must check whether there are any taxes due the county and any school district or city that has taxable property located in the county. This includes “overlapping” jurisdictions, i.e. cities and schools that overlap from other counties into the subject county. In those instances the County Tax Assessor-Collector must send the Request to those tax assessor-collectors.
Q. What if the requestor states on the Request that the only property he owns is in a city and school that is located completely within the county. Must the Tax Assessor-Collector send the Request to all the other tax assessor-collectors?
A. Yes, upon receipt of a Request the County Tax Assessor-Collector must inquire of all tax assessor-collectors for any city or school that has taxable property located in the county as to whether the Requestor owes delinquent taxes.
Q. Should the Tax Assessor-Collector list on the Written Statement delinquent taxes owed by a Requestor to a water district, hospital district or taxing authorities other than schools or cities?
A. No, the statute only requires the Tax Assessor-Collector to list delinquent taxes owed to the county where the property that is being sold is located and any city or school district that also has taxable property in the county. The Requestor is not required to pay delinquent taxes to other taxing authorities in order to purchase property at a sheriff’s sale.
Q. If Requestor only lists one property on the Request may the tax assessor-collector list delinquent taxes due on other properties?
A. Yes, the Requestor is required to list all property that he previously owned and currently owned to facilitate the search by the tax assessor-collection, but it does not limit the search. The tax assessor-collector should include all delinquent taxes owed by the Requestor regardless of whether the property(s) is listed on the Request.
Q. Can the County Tax Assessor-Collector set the amount of time that another tax assessor-collector has to respond to a Request?
A. Yes, the statute authorizes the County Tax Assessor-Collector to specify the date that another tax assessor-collector is to respond to a Request sent by the County Tax Assessor-Collector.
Q. Can the County Tax Assessor-Collector set the amount of time needed to process a Request from a Requestor?
A. The statute does not specify the time in which the County Tax Assessor-Collector must act; therefore any reasonable amount of time would be appropriate. The statute does indicate that the legislature intended the County Tax Assessor-Collector to mail the complete Written Statement to the Requestor.
Q. Should the Tax Assessor-Collector list on the Written Statement delinquent taxes due on property that Requestor previously owned?
A. Depends, the Tax Assessor-Collector should list any delinquent taxes that the Requestor owes.
a. A person only owes taxes if they own the property on January 1 of the year of the tax. If the Requestor did not own the property on January 1 of the year of the delinquent tax they do not owe that tax and it should not be listed on the Written Statement.
b. The Requestor owes the delinquent tax if on January 1 of the year of the delinquent tax he owned the property. In this instance the delinquent tax should be listed on the Written Statement.
Q. Should the Tax Assessor-Collector list on the Written Statement delinquent taxes due on property that the Requestor currently owns?
A. Same answer as above, if the Requestor owned the property on January 1 of the year of the delinquent tax, list it on the Written Statement, if the Requestor did not own the property on January 1 of the tax year do not list the tax.
Q. Should the Tax Assessor-Collector list on the Written Statement delinquent taxes assessed against a business the Requestor owns or owned?
A. Depends on the status of the business.
If the Requestor operated the business as a sole proprietorship or general partnership he is personally liable for the delinquent taxes and those taxes should be included on the Written Statement.
If the Requestor’s business was organized as a corporation or limited partnership or limited liability company the Requestor is not personally liable for the delinquent taxes and those taxes should not be included on the Written Statement.
That was an excellent post!!! Thank you for taking the time to put it up. Those of us that are new to Texas law are grateful. This cite is a great education.
Quote:
On 2003-09-09 23:38, JohnMerchant wrote:
"Texas has the shortest redemption period (6 months) and a great 25% penalty due at issue.
Each county holds auctions monthly, although this creates demand as there are fewer properties available at each auction."
Both statements are incorrect. First, TX redemption period is 2 years, any time in first year the investor's net yield is 25%, and in 2d year it's 50% interest.
And lots of TX 252 counties do not have monthly tax auctions, but just as often as the tax collector and Co. Commissioners decree them useful.
Thanks for your half hearted uninformed post. The quotes from my original post would be incorrect if you only choose to read half the law.
The 2 years you speak of is on "homesteaded and agricultural" property ALL other property is 6 months. Multi Family Dwellings, commercial and industrial properties fall into the 6 month window.
As the counties take further action on collections prior to the sale than non deed sale entities there is a far greater likley hood that you will see a majority of parcels in this catagory.
Also the counties CAN ahve monthly actions, many choose to use greater periods of time.
Again because of the efforts made to collect, there are fewer items available for bidding, thus creating demand.
Demand being 130 people bidding on only 87 properties at an auction.
This would be why I joined and then so quickly left this board, too many half truths and "PAPER" experts. If you spent more on your mentor than you invested in your first auction, you belong here.
I have found some properties being offered at the sheriff's sale on November 4 that have POA fees being the reason for the sale. Are these treated the same in Texas as property taxes and come under the same laws?
I hate to bust anyone's bubble but we have attended the sheriff's sale in Dallas and Denton counties. IN both cases the amateurs/tourists run up the bids to nearly retail and in Denton, the whole thing is rigged - really, it's a public joke.
I was only very recently told that a new law in Texas dictates that you must register to bid in Texas and you must be a resident to register to bid there. I have not checked to see if that is correct though. But you should check first if that is of concern to you.
The two best sources of information out there on Texas tax sale investment is by John Lane on www.taxsalelists.com and by Darius Barazandeh on www.theinformedinvestor.com. Good luck!
I second the question, I too would like to know where or who to talk to about this stuff. I got a phone call about this tax lien stuff and the guy wants me to pay them $10,000 to learn how to do this tax lien stuff. I figure I got this far in life, with my brains and will power. I should be able to do it for less then $10,000?
Any advise??
Material is a little dated, but suggest you read " The 16% Solution" by Joel S Moskowitz.
Not sure what the $10,000. charge includes but there are more inexpensive mentoring packages available. Price seems very high.
Good luck.
The 16% Solution is a great overview and a little outdated. If you're interested mainly in Texas you may want to do a google search on Linebarger, Googan, Blair & Sampson LLP; an attorney firm in Longview, Tx. They have a good web site that tells you about the process in Texas. Travis County, Tx also has a good web site about the process.
I agree, the $10,000 price to get started is MIGHTY steep. I buy TLC's in Louisiana and I started by reading all the free information I could get my hands on; then spent an hour with an attorney who knew a lot about TLC's. Even I can understand it and I'm not the sharpest tool in the shed (just ask my ex-wife!!).
Good luck!
Mike in Louisiana
TX tax lien purchase situation is so simple nobody needs to pay anybody $10k to do it for them.
Any tax office in TX can tell you when their next tax auction is. Just be there and bid on whatever property they may have for auction.
The big county auctions Travis (Austin) & larger, are heavily attended, but not so much in smaller counties so I'd encourage you to go and observe.
Thanks John that is the best advice I have read all day..I just got my hands on a book that a mortgage friend of mine let me borrow that helped him get started in mississippi.....John Beck's.."mortgage free and clear pennies on the dollar". I have yet to read it but he said it was a good way to get started.
Curt
First of all, Texas doesn't issue tax leins but rather tax deeds. This makes things simpler in some ways and more complicated in others. If you look back through the archives on this site, you will find some who think Texas is the best state for tax sale investing and others who think it is the worst.
I would not agree so quickly that investing in tax sales here in Texas is "easy," but I would agree that you don't need to spend thousands on course materials either. The biggest issue that Texas has is that SOME LEINS CAN STAY ATTACHED.
This makes it much more difficult for those outside of the state to invest, however it does happen. Just plan on spending some time in our lovely state.
A change in the laws here being enacted next month... bidders at the tax sales are no longer going to be allowed to assign the tax deed to another person at the sale. I presume (don't know for sure) that they will still be able to sell/assign it to you later. This will make it a bit more difficult to have a local agent handle things for you.
Take a look at the coursework offered here on TCI by Darius Barazandeh if you want Texas specific info.
Listen to sotuan.
, do not be pressured to go higher and higher on your bids.
I buy at auctions here. But be very careful that you get the list early, pick the property (s) you are interested in and research them yourself at the courthouse records office, decide if they still are worth it (I stay away from ones with mortgage leins unless you want to risk having a mortgage after you buy it and IRS or USA gov leins), decide how much you will spend, DO NOT GO OVER THAT, there is a redemption period-Go to the office of the secretary of state's website and get more info on that, watch and see who your competitors are and what kinds of properties they buy (you may stay out of their "territory"
Some will not be bought and will go to the "struck off" list to be sold after the sale in the tax office, you can get a list of struckoff properties there.
Good luck. Read and learn more. Chow!
THANKS guys!! The feed back in invaluable! this website is going to help us all make alot more money, Im glad I found it.
A search for this firm: Linebarger, Googan, Blair & Sampson LLP on MSN reveiles that they where indictments against two of their partners for bribery in obtaining contracts from San Antonio and New Orleans to collect on back taxes and penalties.
I don't think I would want to tie my money up there to long.
Texas, Georgia and Hawaii are the three states with well documented Deed Certificate auctions. Texas has the shortest redemption period (6 months) and a great 25% penalty due at issue.
Each county holds auctions monthly, although this creates demand as there are fewer properties available at each auction.
not every county in TX holds tax deed sales monthly. They can be as far apart as 3 to 6 months it is up to the county and how many properties are deliquent. But always on the first Tue of the month in the morning. The foreclosure auction is held the same day of the month in the afternoon and are usually held each month if there are any foreclosures that month.
"Texas has the shortest redemption period (6 months) and a great 25% penalty due at issue.
Each county holds auctions monthly, although this creates demand as there are fewer properties available at each auction."
Both statements are incorrect. First, TX redemption period is 2 years, any time in first year the investor's net yield is 25%, and in 2d year it's 50% interest.
And lots of TX 252 counties do not have monthly tax auctions, but just as often as the tax collector and Co. Commissioners decree them useful.
There are a number of books or training manuals that will give you the information you want. One is listed at ****Must Reach Senior Investor status before posting URL's*** and another good one is by Darious somethingorother (I can't remember his last name). Both are good and a heck of a lot less than $10,000.00
TAX SALE PURCHASERS
H.B. 335
Amends/Enacts: § 34.015 Tax Code and § 34.0445 Civil Practice and Remedies Code
Effective date: September 1, 2003 (applies to a public sale occurring after October 1, 2003)
This bill is intended to prevent people who owe delinquent taxes to a county or to a school district or city with territory in that county from buying property at tax-foreclosure sales in that county. The bill places certain restrictions and requirements on the sheriff or officer conducting the sheriff’s sale, the county tax assessor-collector and the prospective purchaser.
Sheriff or Officer Conducting a Sheriff’s Sale
The Sheriff or officer conducting a sale:
1. May not execute or deliver a deed to a purchaser unless the purchaser exhibits to the sheriff an “Unexpired Written Statement” that indicates the purchaser does not owe any delinquent taxes to the county where the property is located or to any city or school district located in the county.
2. May not execute a deed in the name of or deliver a deed to any person other than the successful bidder at the sale.
3. Must name in the deed and deliver the deed to the person who bid on the property.
The deed that the sheriff or officer executes must state that the sheriff or officer complied with these requirements. It is a Class B Misdemeanor if the sheriff or officer violates these rules.
Prospective Purchaser
A prospective purchaser:
1. May not bid on or purchase property in the name of any other individual.
2. Must present to the sheriff or officer conducting the sale an “Unexpired Written Statement” issued by the county tax assessor-collector that states the purchaser does not owe any delinquent taxes to the county or any city or school in the county.
3. A person requesting a statement from a county’s tax assessor-collector must submit a sworn, written request that identifies each taxable property that he owns or formerly owned in the county or in any city or school district with territory in that county.
County Tax Assessor-Collector
The county tax assessor-collector:
1. Upon receiving a sworn request will determine whether the requestor owes any delinquent taxes to the county or any city or school district whose taxes are collected by the county.
2. The county tax assessor-collector will contact the tax assessor-collectors for the cities and school districts to determine whether the requestor owes delinquent taxes to any of those cities or school districts.
3. The county assessor-collector will issue a statement reflecting any delinquent taxes that the requestor owes or stating that he does not owe any reported delinquent taxes. If delinquent taxes are not reported by a city or school district, those taxes will not be included in the county assessor-collector’s statement and will not prevent the requestor from buying property at a tax-foreclosure sale.
4. The assessor-collector may charge up to $10 for issuing a statement. The statement will be valid for 90 days.
In order to buy real property at a tax-foreclosure sale, a person must be the one who actually bids on the property at the sale. The statute prohibits a person purchasing property for another person (including a person’s wife or other relative). The purchaser must exhibit to the officer conducting the sale an “Unexpired Written Statement” showing that he does not owe any delinquent taxes. In order to obtain a valid “Unexpired Written Statement” the purchaser must submit a sworn request to the county tax assessor-collector. The request must list all properties that the purchaser has owned and currently owns.
Upon receipt of a sworn request, the tax assessor-collector must not only check the status of the county’s taxes and any other taxes that the county is responsible to collect, but also whether the requestor owes delinquent taxes to any other city or school district that taxes property in the county. The county tax assessor-collector must therefore send a copy of the request to all tax assessor-collectors of any cities or schools that tax property located in the county. The other tax assessor-collectors must inform the county tax assessor-collector whether or not the requestor owes any delinquent taxes, and, if so, the amount of delinquent taxes owed. Unfortunately the statute does not specify a time limit in which the other tax assessor-collectors must respond, it leaves that up to the county tax assessor collector.
The tax assessor-collectors are responsible for determining whether the requestor owes any delinquent taxes. The tax assessor-collector will list any delinquent taxes that are currently assessed in the name of the requestor. A person is liable for payment of delinquent taxes assessed against property they own on January 1 of the year of the delinquent tax despite the fact they no longer own the property. Contrast that situation where a requestor acquires property that has delinquent taxes assessed against it. A person is not liable if he did not own the property on January 1 of the year of the delinquent taxes.
If a requestor did business under a trade name and that business has outstanding delinquent taxes owed by it, the requestor may or may not owe those taxes. If the requestor is an individual and did business under the trade name, he is personally liable for those taxes. If however the requestor operated as a corporation or limited partnership or limited liability company, he is not individually liable for those taxes.
The sheriff or officer may not execute or deliver a deed to anyone other than the successful bidder. The statute also requires that the sheriff or officer may only deliver the deed to the purchaser after that person has exhibited an “Unexpired Written Statement” issued by the county tax assessor-collector stating no delinquent taxes are owed. The statute however does not specify the time frame in which a purchaser must obtain the “Unexpired Written Statement” to exhibit to the sheriff or officer that conducted the sale. A deed from a sheriff or officer conducting a tax-foreclosure sale must name the successful bidder as the grantee. The deed must recite that the buyer had a valid statement and showed it to the sheriff or officer. The deed, when recorded, will conclusively prove that the law was followed. A person who knowingly violates this law is guilty of a misdemeanor.
The same requirements will apply to a sale of property under a writ of execution. A delinquent taxpayer will not be able to buy property at such a sale.
Q & A
Q. Must a person have an “Unexpired Written Statement” listing no taxes due before he can bid on property at a tax sale?
A. No, the statute does not prohibit a person from bidding on property at a tax sale without an “Unexpired Written Statement”. It only prohibits a sheriff or officer from executing a deed or delivering a deed to the person without that person exhibiting an “Unexpired Written Statement” listing no taxes due.
Q. May a person bid on property at a tax sale and have the deed list another person as the grantee?
A. No, the statute states that only the bidder may be listed on the deed.
Q. May one spouse purchase property and have the deed list both spouses?
A. Only if both spouses bid on the property and both obtain an “Unexpired Written Statement”.
Q. May a business request a “Written Statement”?
A. Yes, a Requestor may be an individual or business organization such as a corporation, partnership, limited liability company, or even a church or a trust. A taxing unit is not subject to requirements of this statute.
Q. What information does a requestor have to give the tax assessor-collector in order to receive a “Written Statement”?
A. The statute requires the requestor to identify all property the requestor owns or has previously owned. And to specify the mailing address to which the Written Statement will be mailed. The Request must also be sworn.
Q. What tax assessor-collectors are contacted in order to process a Request for a Written Statement?
A. The requestor makes their request to the County Tax Assessor-Collector of the county where the property is located. The County Tax Assessor-Collector must check whether there are any taxes due the county and any school district or city that has taxable property located in the county. This includes “overlapping” jurisdictions, i.e. cities and schools that overlap from other counties into the subject county. In those instances the County Tax Assessor-Collector must send the Request to those tax assessor-collectors.
Q. What if the requestor states on the Request that the only property he owns is in a city and school that is located completely within the county. Must the Tax Assessor-Collector send the Request to all the other tax assessor-collectors?
A. Yes, upon receipt of a Request the County Tax Assessor-Collector must inquire of all tax assessor-collectors for any city or school that has taxable property located in the county as to whether the Requestor owes delinquent taxes.
Q. Should the Tax Assessor-Collector list on the Written Statement delinquent taxes owed by a Requestor to a water district, hospital district or taxing authorities other than schools or cities?
A. No, the statute only requires the Tax Assessor-Collector to list delinquent taxes owed to the county where the property that is being sold is located and any city or school district that also has taxable property in the county. The Requestor is not required to pay delinquent taxes to other taxing authorities in order to purchase property at a sheriff’s sale.
Q. If Requestor only lists one property on the Request may the tax assessor-collector list delinquent taxes due on other properties?
A. Yes, the Requestor is required to list all property that he previously owned and currently owned to facilitate the search by the tax assessor-collection, but it does not limit the search. The tax assessor-collector should include all delinquent taxes owed by the Requestor regardless of whether the property(s) is listed on the Request.
Q. Can the County Tax Assessor-Collector set the amount of time that another tax assessor-collector has to respond to a Request?
A. Yes, the statute authorizes the County Tax Assessor-Collector to specify the date that another tax assessor-collector is to respond to a Request sent by the County Tax Assessor-Collector.
Q. Can the County Tax Assessor-Collector set the amount of time needed to process a Request from a Requestor?
A. The statute does not specify the time in which the County Tax Assessor-Collector must act; therefore any reasonable amount of time would be appropriate. The statute does indicate that the legislature intended the County Tax Assessor-Collector to mail the complete Written Statement to the Requestor.
Q. Should the Tax Assessor-Collector list on the Written Statement delinquent taxes due on property that Requestor previously owned?
A. Depends, the Tax Assessor-Collector should list any delinquent taxes that the Requestor owes.
a. A person only owes taxes if they own the property on January 1 of the year of the tax. If the Requestor did not own the property on January 1 of the year of the delinquent tax they do not owe that tax and it should not be listed on the Written Statement.
b. The Requestor owes the delinquent tax if on January 1 of the year of the delinquent tax he owned the property. In this instance the delinquent tax should be listed on the Written Statement.
Q. Should the Tax Assessor-Collector list on the Written Statement delinquent taxes due on property that the Requestor currently owns?
A. Same answer as above, if the Requestor owned the property on January 1 of the year of the delinquent tax, list it on the Written Statement, if the Requestor did not own the property on January 1 of the tax year do not list the tax.
Q. Should the Tax Assessor-Collector list on the Written Statement delinquent taxes assessed against a business the Requestor owns or owned?
A. Depends on the status of the business.
If the Requestor operated the business as a sole proprietorship or general partnership he is personally liable for the delinquent taxes and those taxes should be included on the Written Statement.
If the Requestor’s business was organized as a corporation or limited partnership or limited liability company the Requestor is not personally liable for the delinquent taxes and those taxes should not be included on the Written Statement.
Here is the latest from my TX Tax office buddy!
That was an excellent post!!! Thank you for taking the time to put it up. Those of us that are new to Texas law are grateful. This cite is a great education.
Quote:
On 2003-09-09 23:38, JohnMerchant wrote:
"Texas has the shortest redemption period (6 months) and a great 25% penalty due at issue.
Each county holds auctions monthly, although this creates demand as there are fewer properties available at each auction."
Both statements are incorrect. First, TX redemption period is 2 years, any time in first year the investor's net yield is 25%, and in 2d year it's 50% interest.
And lots of TX 252 counties do not have monthly tax auctions, but just as often as the tax collector and Co. Commissioners decree them useful.
Thanks for your half hearted uninformed post. The quotes from my original post would be incorrect if you only choose to read half the law.
The 2 years you speak of is on "homesteaded and agricultural" property ALL other property is 6 months. Multi Family Dwellings, commercial and industrial properties fall into the 6 month window.
As the counties take further action on collections prior to the sale than non deed sale entities there is a far greater likley hood that you will see a majority of parcels in this catagory.
Also the counties CAN ahve monthly actions, many choose to use greater periods of time.
Again because of the efforts made to collect, there are fewer items available for bidding, thus creating demand.
Demand being 130 people bidding on only 87 properties at an auction.
This would be why I joined and then so quickly left this board, too many half truths and "PAPER" experts. If you spent more on your mentor than you invested in your first auction, you belong here.
I have found some properties being offered at the sheriff's sale on November 4 that have POA fees being the reason for the sale. Are these treated the same in Texas as property taxes and come under the same laws?
I hate to bust anyone's bubble but we have attended the sheriff's sale in Dallas and Denton counties. IN both cases the amateurs/tourists run up the bids to nearly retail and in Denton, the whole thing is rigged - really, it's a public joke.
C-
I was only very recently told that a new law in Texas dictates that you must register to bid in Texas and you must be a resident to register to bid there. I have not checked to see if that is correct though. But you should check first if that is of concern to you.
Good luck!
Richard
The two best sources of information out there on Texas tax sale investment is by John Lane on www.taxsalelists.com and by Darius Barazandeh on www.theinformedinvestor.com. Good luck!
RC