The Farah Law Firm

Excess Proceeds in Texas

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As discussed in our article entitled: Redemption of Excess Proceeds, the former owner of a property that was subject to a tax lien foreclosure is entitled to claim the excess proceeds following the sale of the property. The process of obtaining any excess proceeds can be found in that article and apply to the situation whereby an investor takes an assignment or transfer the former owners claim to the excess proceeds.

Due to the amount of the excess proceeds that may be available following a tax lien foreclosure and the financial stress the former owner may be experiencing, investing in the assignment or transfer of claims to excess proceeds could be quite lucrative. However, the potential liability for failing to property assign or transfer a claim for excess proceeds makes doing so properly imperative.

As alluded to above, the Texas Tax Code allows for a former owner to assign or transfer his/her rights to claim any excess proceeds following a tax lien foreclosure to a third party.
Recovering excess proceeds following the assignment or transfer of the former owners claim to the excess proceed requires strict adherence to the requirements set forth by the Texas Legislature.

The list of requirements is fairly extensive, but includes limitations on the time in which the assignment or transfer can take place; limitations as to the fee to be paid for the assignment or transfer; requirements concerning the document authorizing the assignment or transfer; and requirements regarding when the assignment or transfer fee must be paid to the former owner.

Failure to comply with the requirements results in the assignee or transferee being liable to the assignor or transferor for the amount of the excess proceeds obtained, plus attorney’s fees and expenses. Even if no excess proceeds are obtained, the assignee or transferee who attempts to obtain excess proceeds without complying with the requirements is liable to the assignor or transferor for attorney’s fees and expenses.

It is imperative that the process is started as soon as possible so as to eliminate the chance of missing the deadline and forfeiting the excess proceeds. The real estate attorneys at The Farah Law Firm, P.C. have the knowledge and experience to help you properly assign or transfer a claim for excess proceeds. If you are considering taking an assignment or transfer of excess proceeds from the former owner of a property that was subject to a tax lien foreclosure contact the attorneys at The Farah Law Firm, P.C. to discuss the process.

What Our Clients Say About Us

“I was referred to The Farah Law Firm by a friend of mine when I was injured in an auto accident. I am so glad that my friend referred me to Michael and his extremely helpful team. They were not only successful in getting my settlement but also helped me find great doctors to aid in my recovery from the accident. I highly recommend The Farah Law Firm.”

    EDDIE G.

    “Michael, I would like to express my thanks to you and your entire team for all your hard work in getting my case to a fair and generous settlement. I could not have asked for better legal representation for the long and nerve-racking process of my case. You are very compassionate, nice, and extremely good at what you do. I respect your dedication representing the victims of a personal injury cases.”

      TINA L.

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        ESSAM K.

        “Michael drafted the lease that we will use for our commercial building. He had great communication, was readily available to answer any questions we had, and was very professional. He wrote us a lease that fit our need and I will definitely work with The Farah Law Firm again in the future.”

          CHARLES B.

          “I hired The Farah Law Firm for the non-traditional sale of my residential property. The Farah Law Firm’s professionalism and outstanding knowledge of residential transactions made the sale go smoothly. The Attorneys and staff at the Farah Law Firm were understanding and took the time to explain each step of the process. They will be the ones who I will refer to all my friends and family for any future legal endeavors.”

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            *Please note: Due to the costs involved and the favorability of land in Texas per contract and common law, we currently are not accepting residential tenant defense cases.