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<br />COLLECTIONS AND DELINQUENCY
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<br />~ 34.08
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<br />(2) obtained the consent of each taxing unit entitled to receive proceeds of the sale under
<br />the judgment of foreclosure to incur the cost.
<br />
<br />Acts 1979, 66th Leg., p. 2299, ch. 841, ~ 1, eff. Jan. 1, 1982. Amended by Acts 1997, 75th Leg., ch. 38,
<br />~ 1, eff. May 5, 1997; Acts 1997, 75th Leg., ch. 906, ~ 10, eff. Jan. 1, 1998; Acts 1997, 75th Leg., ch. 914,
<br />~ 3, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 1481, ~ 30, eff. Sept. 1, 1999; Acts 2003, 78th Leg., ch.
<br />319, ~ 11, eff. June 18, 2003.
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<br />~ 34.07. Subrogation of Purchaser at Void Sale
<br />(a) The purchaser at a void or defective tax sale or tax resale is subrogated to the rights of
<br />the taxing unit in whose behalf the property was sold or resold to the same extent a
<br />purchaser at a void or defective sale conducted in behalf of a judgment creditor is subrogated
<br />to the rights of the judgment creditor.
<br />(b) Except as provided by Subsection (c), the purchaser at a void or defective tax sale or
<br />tax resale is subrogated to the tax lien of the taxing unit in whose behalf the property was
<br />sold or resold to the same extent a purchaser at a void or defective mortgage or other lien
<br />foreclosure sale is subrogated to the lien of the lienholder, and the purchaser is entitled to a
<br />reforeclosure of the lien to which the purchaser is subrogated.
<br />(c) If the purchaser at a void or defective tax sale or tax resale paid less than the total
<br />amount of the judgment against the property, the purchaser is subrogated to the tax lien only
<br />in the amount the purchaser paid at the sale or resale.
<br />(d) In lieu of pursuing the subrogation rights provided by this section to which a purchaser
<br />is subrogated, a purchaser at a void tax sale or tax resale may elect to file an action against
<br />the taxing units to which proceeds of the sale were distributed to recover an amount from
<br />each taxing unit equal to the distribution of taxes, penalties, interest, and attorney's fees the
<br />taxing unit received. In a suit filed under this subsection, the purchaser may include a claim
<br />for, and is entitled to recover, any excess proceeds of the sale that remain on deposit in the
<br />registry of the court or, in the alternative, is entitled to have judgment against any party to
<br />whom the excess proceeds have been distributed A purchaser who files a suit authorized by
<br />this subsection waives all rights of subrogation otherwise provided by this section. This
<br />subsection applies only to an original purchaser at a tax sale or resale and only if that
<br />purchaser has not subsequently sold the property to another person.
<br />(e) If the purchaser prevails in a suit filed under Subsection (d), the court shall expressly
<br />provide in its final judgment that:
<br />(1) the tax sale is vacated and set aside; and
<br />(2) any lien on the property extinguished by the tax sale is reinstated on the property
<br />effective as of the date on which the lien originally attached to the property.
<br />(f) A suit filed against the taxing units under Subsection (d) may not be maintained unless
<br />the action is instituted before the first anniversary of the date of sale or resale. In this
<br />subsection:
<br />(1) "Date of sale" means the first Tuesday of the month on which the sheriff or constable
<br />conducted the sale of the property under Section 34.0I.
<br />(2) "Date of resale" means the date on which the grantor's acknowledgment was taken
<br />or, in the case of multiple grantors, the latest date of acknowledgment by the grantors as
<br />shown in the deed.
<br />
<br />Acts 1979, 66th Leg., p. 2299, ch. 841, ~ 1, eff. Jan. 1, 1982. Amended by Acts 1999, 76th Leg., ch. 1481,
<br />~ 31, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 1430, ~ 30, eff. Sept. 1,2001.
<br />
<br />~ 34.08. Challenge to Validity of Tax Sale
<br />(a) A person may not commence an action that challenges the validity of a tax sale under
<br />this chapter unless the person:
<br />(1) deposits into the registry of the court an amount equal to the amount of the
<br />delinquent taxes, penalties, and interest specified in the judgment of foreclosure obtained
<br />against the property plus all costs of the tax sale; or
<br />(2) files an affidavit of inability to pay under Rule 145, Texas Rules of Civil Procedure.
<br />(b) A person may not commence an action challenging the validity of a tax sale after the
<br />time set forth in Section 33.54(a)(l) or (2), as applicable to the property, against a subsequent
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