2100 1st Ave NSte 600 If Property sold to the State has not been redeemed after three years, the State is authorized to sell it to any purchaser for all taxes due plus 12% interest, or to the municipality or county in which the land is located at the best price offered, irrespective of the amount of taxes and interest due. Any remaining overage belongs to the owner of record immediately before the end of the redemption period to be claimed or assigned according to law. Subscribe today and get the Oct/Nov issue delivered to your door! Sales are generally held in April and May, and these delinquent taxes can be purchased by the state or a third- party. Suppose, instead, you spend a lot of money fixing up the property and it looks really great. Tax Delinquent Property and Land Sales About. If a private party purchases the property at the tax sale (a “Tax Purchaser”), the Tax Purchaser is entitled to a certificate of purchase containing a description of the Property and the Taxes owed. The Owner has three years “from the date when the [Tax P]urchaser became entitled to demand a deed therefor.” However, this three-year period does not begin to run until the Tax Purchaser is “in adverse possession” of the Property and is entitled to demand a deed to the Property. On the other hand, technically the fastest you are allowed to drive on the Interstate is 70 miles per hour. Don't kid yourself. Tax sales have a special and different rule. I have a tax lien turning into a tax deed this year. Where and how it works. Would you like to buy the property back? You may search for transcripts of properties currently available by County, CS Number, Parcel Number, or by the person’s name in which the property was assessed when it sold to the State. As real estate investors, we all take risks. If the State purchased the property at the tax sale, the Owner may redeem the property at any time before title passes out of the State. Tax Sale List: Use Alabama Tax Sale Lists to search for Alabama tax lien certificates to buy or bid on. An ejectment action normally requires a showing by the plaintiff that he has either legal title to, or possession of, the property, and that the defendant has either unlawfully entered upon or detained the property. To you lawyers reading this: Not even in equity. Judge Sawyer’s excellent description is summarized a bit further here to give you a better idea of what rights the Owner and Tax Purchaser may have and when they can exercise those rights. In a tax deed sale, the property itself is sold. The redemption period for a property tax lien is the amount of time the homeowner has to pay off the lien and avoid foreclosure. So, let’s start with that. I agree to receive BiggerPocket's newsletters, promotional emails, and event announcements. There is an initial three-year redemption period which is extended as long as the borrower remains in possession of the property. Judge signs order maybe 5 days later. If the Owner has not surrendered possession of the Property to the Tax Purchaser within six months after the Tax Purchaser demands possession, the Tax Purchaser may sue the Owner for “ejectment.” An “ejectment” action is a lawsuit brought by one party to remove another from the property. After the three-year period has run, the Tax Purchaser may quiet title to the property by suing all persons claiming an interest in the Property. Can I just take self-help possession without the ejectment order?" have been subsumed under this single unified tax system. You are given twenty calendar days from the date on … But, what does that mean? "Sold to State" properties are parcels that were offered at a past annual tax sale, and were not purchased at that time. People always ask me, "What if nobody has been there for years and all the neighbors say the owner moved away to another state? As provided by Code Sections 40-10-21 and 40-10-132, the State of Alabama RevenueDepartment offers for sale tax certificates and tax deeds, which are currently in the possession … Foreclosure Investors Beware: Existing Tenants Cannot be Evicted. If you asked the owner at that time if they wanted the property back, they would (of course) say, "You betcha. Maybe it was not such a good purchase for me. Legally abandoned means the owner told you they have no intention of ever doing anything with the property and have turned their backs on it forever. Just wait it out, lay low, and after it turns into a deed file your ejectment lawsuit. If a homeowner is unable to pay his property taxes, the county tax collector forecloses the home. Alabama tax sale investors are entitled to possession of the property even though they might not get a deed for another three years. It is less than one mile from the University of North Alabama. The Tax Purchaser is immediately entitled to possession of the Property and may demand possession from the Owner. Fill out this form to Let's suppose you go to the owner and say, "I bought this property at a tax auction. Ala. 2016). Find local real estate meetups and events in your area. Furthermore, no representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers. If you are an Alabama tax certificate investor, and you have had any county redemptions in the past year or so, you have probably received a “REDEMPTION AFFIDAVIT” which you have to fill out, sign, have notarized and return to the appropriate party. Let’s assume the value of a property in a tax deed sale is assessed to be $100,000 and has $5,700 in back taxes. Every situation is different, but you get the idea. If a tax lien has a higher priority than another lien, the other lien is wiped out at the time of sale. Less than 90 days later, you can have a final and non-appealable court order that gives you legal possession and completely protects you for a WIDE variety of things too extensive for this one blog post. Those counties sold tax liens. The highest bid on the property is $49,000. It is called the Short Statute of Limitations, because it is only 3 years. Some agree. transcript of tax delinquent land available for sale 2753 shelby state of alabama-department of revenue-property tax divisionpage no:1 date:12/22/2020 Any Tax Purchaser must be certain to either obtain peaceable possession of the Property or file an action for ejectment within three years of the time the Tax Purchaser was entitled to demand a tax deed for the Property. Welcome to FindLaw's online manual on Alabama property and real estate laws, written specifically to help non-attorneys make sense of the law. If the property contains a residential structure, you can make "preservation improvements" (repairs, mostly) and must be paid for the increased value of the property if the owner redeems. 35203. If the Owner fails to pay those taxes, then the Property could be sold to a potential purchaser (the “Tax Purchaser”). As a result, there's really no down-side to ejectment. Does this apply to a tax deed? Notice of the Tax Sale Before the sale, the tax collector must first get a court decree from the probate court, authorizing a sale. When the Owner has paid the required redemption amount to the court, “the court shall enter judgment for the [Owner] for the land, and all title and interest in the land shall by such judgment be divested out of the [Tax Purchaser].”. If the Tax Purchaser obtains a tax deed and maintains adverse possession of the Property, the Owner has three years to redeem the Property by filing suit — known as judicial redemption. Possession must be "peaceable." Every year ad valorem taxes (the “Taxes”) are due to the state, county, and city (if applicable) based on the value of the Property. (A tax sale certificate in Louisiana is basically the same as a tax deed, as mentioned in the Louisiana Constitution.) The only exception is if the property is legally abandoned. Devin Daniels, did you ever get your question answered? If the Owner fails to pay the Taxes, the probate court of the county in which the Property is located may order the sale of the Property. Which Bankruptcy Chapter is Right for Me. Please try again. A tax sale certificate transfers "tax sale title" only, which means the purchaser’s interest in the property is subject to the right of redemption. Alabama tax sale investors are entitled to possession of the property even though they might not get a deed for another three years. A tax lien sale is a method many states use to force an owner to pay unpaid taxes. 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