Alabama Tax Deeds - Too Old?

[Arnold Finkelstein]

Is there any kind of statutory or other "expiration date" to un-purchased Alabama Tax Deeds?  I seem to recall Denise Evans mentioning one in her book but I'm unable to find where I read it now.  What is the earliest year one can safely buy?

[Denise Evans]

@Arnold Finkelstein, there is a trial-level decision in Jefferson County that says the Rioprop time limit runs even while a property is one the state inventory.  In other words, if someone has not taken lawful and exclusive possession within 6 years after the auction, then the former owner can get the property back and not have to pay the investor anything at all.  The decision is not binding on any other courts, but it is an indication of how other judges might think about this.  On the other hand, if trial judges were always correct about the law, we would not need appellate courts, would we?

I think, to be absolutely safe, someone should not purchase anything from the state inventory that will not be capable of filing an ejectment lawsuit within 6 years after the auction date.  Filing the lawsuit is enough. You don't actually need your ejectment order within 6 years.  But, since we are real estate investors (and not Treasury bond investors) we are okay with some risk. For any particular property, you just need to ask yourself (1) is the reward worth the risk and (2) what can I do to minimize my risk, such as getting a quitclaim deed from the former owner.

There is an appellate decision that says if a property has been on the state inventory for more than 20 years, the former owner can get it back, at no charge. That is the only appellate decision in that area.