Momentum - Business to Business Online Magazine | Page 18
Purchasing
Tax Sale
Properties
By: Cheryl E. Johnson, PCC
Galveston Co. Tax Assessor Collector
[email protected]
Considering purchasing a property at a tax sale? The most important advice I can give is - do your
homework (and read this article).
Collection of delinquent property taxes and foreclosure of liens are governed by statute and procedural
rules under Texas law. Before being sold by the Sheriff (Constable in some counties), a variety of steps
occur including multiple delinquent notices being sent both by tax offices and delinquent law firms
but when these steps fail, tax lien foreclosure proceedings begin. It is important to note that not all
properties sold by the Sheriff are tax sales; they may include sales for nonpayment of homeowner
association fees or an execution sale for nonpayment of an obligation created by a judgment.
A. Sheriff Sales are open to the public and conducted the first Tuesday of each month at 10 am in
Commissioner’s Courtroom, County Courthouse, 722 Moody, Galveston. Properties offered for sale
are advertised 21 days in advance in The Post Newspaper and can be found both in paper form and
online at www.thepostnewspaper.net.A listing of properties is available on the County Sheriff’s website
(www.co.galveston.tx.us/Sheriff then click on Sheriff Sales/Sale Listing). More detailed information is
available at the County’s delinquent law firm website (www.taxsales.lgbs.com) or Friendswood and
Dickinson ISD’s delinquent law firm website (pbfcm.com).
B. Once you find a property, it is your responsibility to perform research and to discover any deficiencies
(encroachments of buildings that may be obvious on the plat or aerial of the property, environmental
hazards, etc.). Since properties are sold “as is” exterior inspection is strongly encouraged as it is not
likely interior inspection will be possible. In addition to a drive-by, visit the county appraisal district to
determine whether information is available about the property condition.
Review tax records to determine whether additional years of taxes (outside of the lawsuit years) are
due. This information is available online at www.galcotax.com. It is important to note that tax liens are
superior to all others and, when sold, causes all other liens and claims included in the lawsuit to be
extinguished. Remember that this applies only to tax sales.
C. On sale day, potential bidders are required to register with the Sheriff staff conducting the sale in
order to obtain a bidder number. At promptly 10 am, a deputy will read the legal description of the
property and state the minimum bid (taxes + penalty + interest + attorney fees + court + advertising
costs OR the most recent tax appraised value as determined by the tax judgment – whichever is less).
Successful bidders must remit full payment on sale day by 4 pm (cash, cashier’s check or money order
payable to Galveston County Sheriff’s Office). If the winning bidder does not pay by 4 pm, the bid is
forfeited and the property will be resold between 4:15 and 5 pm at the Courthouse. If there is no
bidder at the second sale, the property is struck off to a taxing entity.