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Updated about 7 years ago on . Most recent reply
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Tax Deeds, Death, and Tenants
So, I've narrowed down buying a tax deed to three properties. One is at the top of the list because it's right by a nice college in town (Birmingham, AL). However, when I drove by it tonight I saw that it wasn't vacant and, looking at tax records, the person whose name is on it is either dead or is the son of the guy and holds the same name.
This is my first go at purchasing a tax deed and some advice would be much appreciated. A couple question come immediately to mind. A) What if the owner lives in the house? B) If its a tenant, how do I go about having them pay me rent (do I assume their existing rental contract until it expires?). C) somewhat related, If I buy a tax deed property and put tenants in them, what happens to the tenants if the previous owner exercises their rights to redeem the property?
Reading a response @Denise Evans recently gave to a tax deed question concerning redemption rights and the 3yr period that may not be as set in stone as I thought, some info on all this sure would be helpful!
Most Popular Reply
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A. If the owner lives in the house, you can give written notice to vacate, but then you have to wait 6 months before filing an ejectment lawsuit if you have a tax certificate. If you have a tax deed, you can file the ejectment lawsuit immediately.
B. If the owner's tenant lives there, it is very inadvisable to approach the tenant and ask him to pay rent to you. Tenants are not allowed to "attack" their landlord's title. Landlords will sue you for intentional interference with a contractual relationship. I'm not completely sure the owner would win, but it would cost you a lot of legal fees to find out.
C. If you put a tenant in possession and the owner redeems, your tenant will have to vacate. I suggest putting a 30-day cancellation clause in all leases in case there is a redemption.
To clarify, I do not doubt the 3-year redemption period. I have some concerns on a more subtle level that I'm working through.