As real estate investors, we all take risks. The Property Tax Division also advises and assisting county elected officials and their personnel, county commissioners, members of the boards of equalization, and other officials charged with mapping and appraisal duties, relating to laws, regulations, standards, and procedures governing property tax administration. Out of curiosity, I did some research on the county website and I discovered today that someone outside of our family (a friend of my cousin) has been paying the property taxes on it for the past 5 years. "Sold to State" properties are parcels that were offered at a past annual tax sale, and were not purchased at that time. When can the Owner “redeem” his Property from the Tax Purchaser? (A tax sale certificate in Louisiana is basically the same as a tax deed, as mentioned in the Louisiana Constitution.) (Ala. Code § 40-10-82). On the other hand, technically the fastest you are allowed to drive on the Interstate is 70 miles per hour. Devin Daniels, did you ever get your question answered? I will try to be relatively brief - my great grandfather owned a 110 acre plot of land in Alabama but the deed to the property is still in our family. The state must first demand possession of the home from you. If the Owner has at least constructive or scrambling possession of the Property (i.e., 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. As a result, there's really no down-side to ejectment. Alabama Tax Sale Investors and Improvements - Protect Your Rights. Technically, the answer is "No, unless that owner tells you the property is abandoned." 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. When Property is sold under Alabama law due to non-payment of Taxes, the Owner has three years (or more) to redeem his interest in the Property without losing the legal title to the Property — known as administrative redemption. Let's suppose you go to the owner and say, "I bought this property at a tax auction. Going into a vacant property and changing the locks is almost never peaceable. The myth seems to be that simply by paying someone else's property taxes, you become owner of that property. M.D. That is not your out-of-pocket expenses, but the amount you increased the value. Tax Records include property tax assessments, property appraisals, and income tax records. Using a phrase of random words (like: By signing up, you indicate that you agree to the. The Owner loses his right of administrative redemption to the Property once the tax deed is delivered to the Tax Purchaser (whether the Tax Purchaser originally purchased the property at the tax sale or purchased the tax deed from the State). I literally walked in and changed the locks. That’s similar to … Quickly analyze a property address or ZIP Code to compare your rent in your neighborhood. How to save on property taxes. Nothing on this site should be taken as legal advice for any individual case or situation. Learn how and when you can take someone's property by paying taxes. 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. AL The winning bidder at an Alabama tax sale is the bidder with the greatest bid. Autauga County Revenue Commissioner's … The amount you’ll have to pay to redeem … Assessor, Revenue Commissioner and Tax Sales. Connect with 1,000,000+ real estate investors! 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. (2) When processing a redemption of a tax sale that occurred after January 1, 2020, the Redemption Official is not required to verify that costs or expenses provided in §§40-10-122(b) through 40-10-122(e), Code of Ala. 1975 have been paid for the proposed redemptioner to take possession of the property. I always intended to fix the property up myself. If they redeem when you file the ejectment lawsuit, they were always going to redeem anyway. 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. Tax sales have a special and different rule. Been tried by others and doesn't work according to the Alabama Supreme Court. If some other party does something (other than merely isolated acts) which indicates that the other party claims to be in possession of the property, the possession ceases to be peaceable and becomes “disputed” or “scrambling.” Scrambling possession requires that the party disputing the right of possession “do something indicating that he claims to be in possession himself” of the Property. Denise's book and classes are invaluable. The property needs a lot of work and the owner had $100,000 of IRS liens against him before the auction. Your message has failed. 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. A person is in “peaceable possession” as opposed to “scrambling possession” when at the time of the lawsuit no other party is denying that the person is in possession of the Property. To obtain “quiet title” relief, the Tax Purchaser must prove either (1) that he has “actual, peaceable possession of the lands,” or (2) that no other person has actual possession of the land and either (2a) that he has held color of title to and paid taxes on the land for 10 or more consecutive years, or (2b) that he has paid taxes on the land for 10 consecutive years and no other person has paid taxes on the land during that time. Any citations to authority supporting the statements may be found by reviewing In re Washington. 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. Property Search and GIS Maps. 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. If a tax lien has a higher priority than another lien, the other lien is wiped out at the time of sale. (For details on the tax sale process in Louisiana, see What Happens If I Don't Pay Property Taxes in Louisiana .) If a Tax Purchaser (not the State) bought the property at the tax sale, the Owner may redeem the property from the Tax Purchaser “at any time within three years from the date of the sale.” This is known as “administrative redemption.” The Owner may administratively redeem the Property by paying to the probate court in the county in which the Property is located the purchase price plus (1) 12% interest per year from the date of the sale, (2) any insurance premiums paid by the Tax Purchaser, and (3) the value of all “preservation improvements” made by the Tax Purchaser (also with 12% interest from the date of such premium payments or improvements). One thing you can do with your final non-appealable ejectment order is start making your preservation improvements, and be confident you will be paid for the increased value if the owner redeems. So, let's say you have a tax certificate. I see it has a big IRS lien against it. Autauga County Free Search. 644 (Bankr. The three-year limitations period for judicial redemption can also cut the other way. That is a very simple and inexpensive lawsuit. Would you like to buy the property back? Alabama Department of Revenue, 126 Bankr. A CLEAR VIEW INTO KEY INFORMATION AND CONNECTIONS IN YOUR CASE WITH WESTLAW CASE NOTEBOOK Use Westlaw Case Notebook to efficiently make … 35203. If the Property has not been redeemed after five years, the State may sell the Property to any purchaser for cash at the best price obtainable, irrespective of the amount of taxes due. If the Tax Purchaser has a tax deed and is in adverse possession of the property, then the Owner has only three years to file an action for judicial redemption. Judge signs order maybe 5 days later. The highest bid on the property is $49,000. To take possession of property with a tax lien and evict a person from the home, you must follow the necessary legal process to notify the homeowner that you have a valid tax lien. The probate court must sell the property at the tax sale for at least the amount of the tax lien (i.e., the amount of Taxes owed plus late fees and any other fees due). 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. Return to Top. If it is not peaceable, the owner can sue you for money damages. That is what you need, in this example, to know the property is abandoned. If the State purchased the property at the tax sale and later sells the property to a private party (also a “Tax Purchaser”), the Tax Purchaser is entitled to a tax deed granting him “all the right, title, and interest of the state in and to such lands” and providing him “all the rights, liens, powers, and remedies, whether as a plaintiff or defendant, respecting said lands as an individual purchaser at the tax collector’s sale would have in similar circumstances.” Delivery of a tax deed to the Tax Purchaser extinguishes the Owner’s “legal title” in the Property. I have a tax lien turning into a tax deed this year. Does this apply to a tax deed? Tax lien foreclosure is the sale of a property resulting from the property owner's failure to pay their tax liabilities. So, let’s start with that. Often, they just throw the lawsuit papers in the garbage. In other places, the taxing authority must foreclose the property, usually by filing a lawsuit in court, before holding a tax sale. Alabama tax sale investors are entitled to possession of the property even though they might not get a deed for another three years. Alabama tax lien certificates are sold at County Tax Sales during the month of May each year. Where there is no real occupancy of the Property (for instance on unimproved land or an empty lot), constructive possession stays with the Owner and can only be cut off by the adverse possession of the Property by the Tax Purchaser. I would like to take possession legally. Every state has conditional requirements, including time requirements. You can take possession as soon as you get your tax certificate, but you can't just throw someone's stuff out into the street. Attorneys Insurance Mutual of the South® 200 Inverness Parkway Birmingham, Alabama 35242 Telephone 205-980-0009 Toll Free 800-526-1246 l7ax 205-980-9009 . 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