Case Information

*1 TEXE ATIKDRNEY GENERAL OF -XAS

June 5, 1972 Honorable Ted Butler opinion No. ~-1137 District Attorney

Bexar County Re: Whether real property fore- San Antonio, Texas 78204 closed by delinquent tax

judgment may be sold there- under to the judgment debtor at the adjudged value of the property rather than for the full amount of the tax judg- Dear Sir: ment, and related questions.

We have received your opinion request and for the sake of brevity we consolidate your questions as follows:

When real property foreclosed In a delinquent ad Valorem tax suit Is sold thereunder by sheriff to the judgment debtor at an adjudged value less than the full amount of the judgment, what Is the effect of such sale on the total amount owed under the judgment by the tax debtor, and upon the tax lien foreclosed upon the property?

The answers to your questions are provided by Article 7345b, Vernonts Civil Statutes. Section 5 of this Article provides In tax foreclosure actions for a finding and adjudication of then rea- sonable fair value of the real property subject to the tax liens as of the date of trial.

Section 8 of this Article provides, in part, that the prop- erty shall not be sold under the foreclosure decree to the owner of the property or to anyone having an Interest therein, or to any party other than a taxing unit which Is a oarty to the suit, for less than the amount of Its value adjudged according to the provl- slons of Section 5, or the aggregate amount of the judgments against

whichever amount Is lower. Opinions At- and S-175(1955). It was held In Watts v. City of El Paso, S.W. 2d 249 (Tex.

Clv.App. 1944, errorm*Even though the property be s~truck *2 Honorable Ted Butler, page 2

off to the owner or to a party other than the taxing unit for the adjudged value, this does not pay the taxes. It-discharges the taxes as a lien against the particular property.' (Emphasis aled.) -

Thus, when a tax debtor-over purchases property at a tax judgment sale--for an amount less than the full amount of the tax judgment but at least equal to the adjudged value of such prop- erty, he does not satisfy the judgment against him, although he -does Zicquire title to the property free of the liens for the taxes

sued for. In this Instance he Is liable under the judgment for the difference between the total amount of taxes adjudged against hi?, together with court costs and costs of sale, and the amount he paid for the property at the sheriff's sale. The judgment may bs enforced as any other judgment rendered for a personal lndebted- ness. City of Henrietta v. Eustls, Tex. 14, 26 S.W. 619(1894).

SUMMARY Real property foreclbsed by tax judgment for ad valorem taxes may be purchased by the owner at sherlfk's sale at Its adjudged value although for an amount less than full amount of judgment.

In this event, the owner-tax debtor Is liable under the judgment for the deficiency but he acquires title to the property purchased free of the.llens for the taxes sued for. The judgment may be enforced for the balance against the tax debtor as any other judgment rendered for a personal Indebtedness.

very truly, General of Texas *3 Honorable Ted Butler; page 3

Prepared by Bob Lattlmore

Assistant Attorney General

APPROVED:

OPINION COMMITTEE

Kerns Taylor, Chairman

W. E. Allen, Co-Chairman

Qor'don Cass Arthur Sandlln

Jack Sparks

Jack Ooodmm

SAMUEL D/MCDANIEL

Staff Legal Assistant

ALF'REDWALKRR Executive Assistant

NOLA WRITE

First Assistant