Newbie with Alabama Tax Sale Question

[Eric Chatman]

Hello Everyone, I am new to the forum. I am also currently researching information on Tax sale purchases. I attended my first tax sale this year and purchased 1 piece of property valued at $50K for just over $200.00. Unfortunately the property tax was paid during the grace period so my refund was the amount actually paid during the tax sale. Can anyone tell me if property that was sold to the state more than 3 years ago, if I purchase it from the state am I still obligated to wait 3 years before proceeding with a quiet title? Also, if land that is available from the states website for purchase was sold to the state over 9 years ago, should i still be worried about liens on the property or does the tax sale and years overshadow any liens? Can you explain how liens work for tax sale purchases? Is the buyer obligated to pay any liens? Looking forward to growing with BP. Thanks in advance Eric.

[Denise Evans]

Hi @Eric Chatman

1.  No matter how long it's been since the tax auction, you must have three years of continuous and exclusive possession before you can file your quiet title lawsuit. 

2.  Almost any liens on the property must redeem from the tax sale before they can foreclose their liens or mortgages.  The tax sale purchaser must sent certified mail, return receipt requested, notice to all lienholders advising of the tax sale and providing the investor's name and contact information.  The lienholder then has one year from receipt of that notice, or 3 years from the date of the auction (whichever is longer) within which to redeem by paying taxes, interest, and sometimes improvements and insurance. The only exception is local government liens, such as nuisance, demolition, sewer, lighting and other improvements, library dues liens and fire dues liens. The last two are rare, but some districts assess their own dues and impose their own liens. Local government liens can foreclose without redeeming first, but they have to pay the investor taxes plus interest. They do NOT have to pay other potential redemption charges, such as the value of preservation improvements or insurance.