Detailed Answer
Under Texas law, paying property taxes on real estate does not automatically give you an ownership interest in that property. Property taxes secure a lien against the property, not a lien in your favor against the owner. Once you pay a tax bill, the county tax assessor–collector applies your funds to clear the lien, but you have no title rights unless one of the following applies:
1. Equitable or Contractual Claim: If you have a written agreement with the owner—for example, a loan or reimbursement agreement—Texas courts may recognize an equitable lien or reimbursement claim. Without a signed contract, you risk having no legal right to recover the amount you paid.
2. Adverse Possession: Texas Civil Practice & Remedies Code § 16.025 requires five years of continuous, exclusive, and hostile possession plus payment of property taxes to claim title. Simply paying taxes without actual possession and control of the land does not satisfy this statute. For details, see Tex. Civ. Prac. & Rem. Code § 16.025.
Statutory Basis: Under Texas Tax Code § 32.01, “all taxes, penalties, and interest imposed on property . . . constitute a continuing lien” on that property until paid. Paying that tax renders the lien satisfied for that tax period and does not transfer ownership. See Tex. Tax Code § 32.01.
Helpful Hints
- Paying property taxes clears the lien for that tax year but does not create ownership rights.
- Use a written agreement specifying lien or reimbursement rights to protect your payments.
- Adverse possession requires actual possession and control plus tax payments over five years.
- Maintain clear records of tax payments and any agreements with the property owner.
- Consult an attorney before relying on equity or adverse possession claims.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.