“x’lsr~ ATT~RNEP GENERAL QF TEXAS

Mr. John L. Scott,Jr. CountyAttorney Oldham County Vega, Texas

Dear Mr. Scott: Opinion No. C- 24 Re: Sale, at public sale, of real estatepurchased by a taxing unit at delinquentad valorem tax foreclosure sale for less than its adjudgedvalue without consent of the other taxing units for whom it also holds title. You ask whether the City ofVega, Texas was authorized to sell certain lots,at public sale,which it had purchased at salepursuant to judgment for delinquent ad valorem taxes,for less than its adjudgedvalue,without the consent of the other taxing units.

You have furnishedus the followingrelevant facts. The City ofVega purchased these lots for itself and the other taxing units who also recovered judgment for their taxes in the suit. The amount paid was the adjudged value stated in the judgment. Subsequently,the city sold the property at public sale,within the redemptionperiod, for a sum substantially less than the adjudged value stated In the judgmentand without the consent of the other taxing units. All proceedingspurport to follow the provisions of Article 73&b ofVernon's Civil Statutes of Texas. Our answer is thatthe City of Vega Is authorizedby Section 9 of Article 73&b to sell the property at any time,at public sale,without the consent of the other taxing units, Er less than its adjudgedvalue.

The relevantportion of Section 9 immediatelyprior to its last amendment in 1947 read as follows:

II

. . .and suchproperty shallnot be soldby the taxing unit purchasing same for less than the adjudgedvalue thereof or the amount of the judgmentsagainst the property in said suit,whichever Is lower,without the written consent of all taxing units which In said judgmenthave -96-Mr. John L. Scott, Jr., Page 2 (No. C-24 )

been found to have tax liens against suchproperty; . . ." Both the amendment of 1947 and this Section 9 as It existed at the time of suchamendment authorize @-F sixmonths after the redemptionperiod expires upon reques of x taxing unit which had obtaineda judgment In the tax foreclosure suit.

Prior to the 1947 amendment the land couldnot be sold at any time prior to sixmonths after expiration of the redemption period at eitherprivate or public sale for an amount less than its adjudgedvalue or the amount of the judgment,whichever was lower,without the written consent of all taxing units who were parties to the judgment of foreclosure. The redemption period was two years from the date of the foreclosure sale. Under the 1947 amendment the redemptionperiod is two years from the date of the filing for record of the purchaser's deed.

In order to expedite sales of the property prior to this two-yearand six-month span of time the 1947 amendment added the followingnew provision:

0 The taxing unit may sell and convey'saidproperty sopurchased by it, or which has heretoforebeen purchased in the name of any officer thereof, at any time In any manner determined to be most advantageous to said taxing unit or units either at public or private sale, subject to any then existing right of redemption;
. . ." The amendment further changed the requirement for written consent of all taxing units to sales for less than the adjudged value, or of the judgment, so as to apply only to private sales. This provision now reads:

11

. . .but suchproperty shallnot be soldby the taxing unit purchasing the same,at private sale, for less than the adjudgedvalue thereof, If any, as established in the tax judgment, or the total amount for which such judgmentwas rendered against the property in said suit,whichever is lower, without the written consent of all taxing units which in said judgment shallhave been found to have tax liensagainst said property. . . .' (Underscoringadded)

-9-i-Mr. John L. Scott,Jr., Page 3 (No. C-24 )

These changes authorized the City of Vega to sell the property at any time at public sale for less than the adjudged value thereof,without the consent of the other taxing units.

SUMMARY

A taxing unit may sell real estate which it purchased at delinquentad valorem tax foreclosure sale at any time at public sale and for less than the adjudged value of the property without consent of the other taxingunits for whom It also holds title. Very truly yours, WAGGONER CARR Attorney General of Texas

By:

WEA:pw APPROVED: OPINION COMMITTEE W. V. Geppert, Chairman F. R. Booth Jerry Brock Howard Fender Joe R. Long APPROVED FOR THE ATTORNEY GENERAL By: Stanton Stone

-98-