Sec. 5.257. DIVESTITURE; APPOINTMENT OF RECEIVER; DISTRIBUTION OF SALE PROCEEDS.

263 words·~1 min read·/tx/property-code/title-2-conveyances/chapter-5-conveyances/subchapter-a-general-provisions/5-257·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)If the district court finds that the real property subject to an action brought under Section 5.255 was purchased or an interest in the real property was otherwise acquired in violation of Section 5.253 , the court shall:

(1)enter an order that:

(A)states the court's finding;

(B)orders the divestment of the individual's or entity's interest in the real property; and

(C)appoints a receiver to:

(i)divest the individual's or entity's interest in the real property through sale, termination of a leasehold, or other disposition of the interest; and

(ii)manage and control the real property pending the sale or other disposition of the interest in the real property; and

(2)refer the matter to the appropriate prosecuting attorney for criminal prosecution of any appropriate criminal offense in connection with the transaction.

(b)On appointment and qualification, a receiver appointed under this section has the powers and duties of a receiver under Chapter 64 , Civil Practice and Remedies Code.

(c)Proceeds from the sale or other disposition of an interest in real property under an order described by Subsection

(a)shall be applied first to satisfy any existing liens on the property and then to pay the reasonable costs incurred by the state in enforcing this subchapter. The remaining proceeds shall be remitted to the individual or entity that purchased or otherwise acquired the interest in violation of this subchapter.

Added by Acts 2025, 89th Leg., R.S., Ch. 956 (S.B. 17 ), Sec. 4, eff. September 1, 2025.