Can someone please point me toward, or explain to me, an overview of tax foreclosed mineral estates in Texas and the sale/auction of said properties? I’ve been searching online all day and haven’t found anything at all.
I am only addressing foreclosure and sale for failure to pay property taxes in Texas. My inexpert understanding is: Non-producing minerals strictly in and of themselves–excluding surface land–are not taxable in Texas. No foreclosure and tax sale could take place with solely non-producing minerals. If the minerals are not separated from the surface estate, then they could be acquired through foreclosure with the purchase of property at a tax sale. Producing minerals are valued by appraisal districts and subject to ad valorem taxes. So if someone were to fail to pay the taxes on producing minerals, they could be lost to foreclosure and sale–or it might be that only the producing royalty interest would be lost? There is a time period after a tax sale–I think it may be two years–during which the price paid at auction (incl. auction and transfer fees; cost of improvements to property, if any; etc.) plus interest may be paid to restore ownership. At the top of this page click on the magnifying glass search icon and enter “Texas Law. Tax Sale of RIs (Royalty Interests)” and variations of “tax foreclosed minerals”.
3 Likes
This topic was automatically closed after 90 days. New replies are no longer allowed.