Statutory Redemption in Texas
There are two instances where real estate may be statutorily redeemed in Texas. One is where there has been a foreclosure of a homeowners’ association assessment lien, and the other is where there has been a tax sale for unpaid ad valorem taxes. If you have lost or obtained real estate under one of these scenarios, it may be subject to statutory redemption, in which case the original owner might be able to regain ownership of the real estate. Johnsen Law has experience dealing with these scenarios. Please contact us now if you need assistance.
Foreclosure of Homeowners’ Association Assessment Lien
The original owner may redeem the real estate from the purchaser at the foreclosure sale within 180 days after the date the homeowners’ association mails written notice of the sale to the original owner. To redeem the real estate, the original owner must make certain redemption payments as outlined by the statute. These payments essentially return the homeowners’ association and the purchaser to the positions they were in before any homeowners’ association assessments were unpaid and before there was a resulting foreclosure. If the original owner redeems the real estate, the purchaser at the foreclosure sale must immediately deed the real estate back to the original owner. If the purchaser fails to do so, the original owner can sue the purchaser and seek recovery of attorneys’ fees.
Tax Sale for Unpaid Ad Valorem Taxes
If the real estate was homestead or agricultural property, the original owner may redeem the real estate within two years after the date the purchaser’s deed was filed. If the real estate was not homestead or agricultural property, the redemption period is shortened to 180 days. To redeem the real estate, the original owner must make certain redemption payments as outlined by the statute. Not only do these payments return the purchaser to the position the purchaser was in prior to the tax sale, but they include a redemption premium ranging from 25% to 50%. If the purchaser cannot be found or refuses to deed the real estate back to the original owner, the original owner can make the payments to the assessor-collector along with an affidavit, at which point the assessor-collector will issue a receipt that when recorded is notice that the real estate has been redeemed.