40 Tex. Admin. Code § 175.18 - Resale of Forfeited Land
(a)
Definitions. The following words and terms, when used in this chapter, shall
have the following meanings, unless the context clearly indicates otherwise.
(1) Bid--A bid is an offer to purchase a Type
I or Type II tract submitted in the manner prescribed by the board.
(2) Highest bidder--The person who submits
the best and highest bid which satisfies all the terms, conditions, and
guidelines set by the board for any sale of any tract.
(3) Minimum bid amount--The minimum
acceptable selling price set by the board for each Type I and Type II
tract.
(4) Type I land tract--When
a tract is forfeited and first ordered for sale or lease by the board, it is
automatically classified as Type I land.
(5) Type II land tract--When Type I land has
been made available for sale or lease and is not sold or leased by the board
for any reason, it is automatically reclassified as Type II land at the moment
the board determines that no acceptable bid was received.
(b) Costs of sale.
(1) All property taxes which are, in the
opinion of the board, lawfully due and owing on a Type I or Type II tract on
the date it is resold by the board, may be paid from the proceeds of the
issuance of bonds.
(2) All costs to
the board associated with selling a Type I or Type II tract, including
administrative expenses, road construction, surveying, legal fees, real estate
commissions, advertising expenses, and other similar costs, may be paid from
the proceeds of the issuance of bonds.
(c) Sale of forfeited tracts.
(1) Qualified purchasers.
(A) Type I tracts shall be first offered for
sale or lease only to veterans who meet the eligibility requirements of §
175.2 of this title (relating to
Application/Eligibility). Bids on Type I tracts shall be submitted to the board
on or before the bid deadline set by the board. These bids shall be reviewed by
the board and the board may, in its discretion, award any Type I tract to the
highest bidder.
(B) Any Type I
tract not awarded by the board on the bid deadline date shall be immediately
reclassified as Type II land. Type II tracts may be offered for sale or lease
to both nonveterans and eligible veterans. Bids on Type II tracts may be
reviewed by the chairman who may, in his or her sole discretion, award any Type
II tract to the highest bidder.
(2) Terms of sale.
(A) The board may, in its sole discretion,
set terms, conditions, and guidelines governing the sale of any
tract.
(B) The board may combine or
subdivide Type I or Type II land to form individual Type I or Type II
tracts.
(C) Any tract formed by
combining Type I and Type II shall be classified as Type I until it has been
offered for sale or lease and is not sold or leased by the board for any
reason. Thereafter, it shall be reclassified as Type II land.
(D) Type II tracts shall be sold to an
eligible veteran or non-veteran under a contract of sale and purchase or under
a note and deed of trust.
(3) Deposit. Each bidder shall be required to
deposit, in cash, an amount designated by the board.
(4) Duration. The land shall be sold under
contract of sale and purchase or under a note and deed of trust not to exceed
30 years in duration.
(5)
Additional terms and conditions. Each contract of sale and purchase or note and
deed of trust shall conform to the provisions of the Natural Resources Code and
shall be in such form, and contain such terms and conditions, as the chairman
of the board may prescribe.
(6) Bid
rejection. The board may reject any and all bids on Type I tracts. The chairman
of the board may reject any and all bids on Type II tracts.
(7) Forfeiture. If a successful bidder
refuses to execute a contract of sale and purchase or a note and deed of trust,
the money submitted with his bid may be forfeited and shall be deposited in the
state treasury and credited to the fund.
(d) Bids.
(1) Minimal amount. The board shall, in its
sole discretion, set the minimum amount for which offers will be accepted for
each Type I and Type II tract. Any costs to the board associated with selling a
Type I or Type II tract, including road construction, surveying, advertising,
legal fees, property taxes, real estate commissions, advertising expenses, and
other similar costs, may be made part of the minimum bid amount.
(2) Bid deadline.
(A) The board may set a specific time and
date on or before which bids pertaining to any tract must be submitted. In such
event, no bid shall be awarded by the board prior to that time.
(B) The board may elect to set no specific
time and date on which bids pertaining to any tract must be submitted. In such
event, the chairman of the board shall be authorized to review bids when and as
received, and accept the first acceptable bid on any such tract.
Notes
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