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Updated almost 6 years ago, 02/15/2019

User Stats

10
Posts
3
Votes
Kristina Knowles
  • Realtor
  • Chelsea, AL
3
Votes |
10
Posts

Alabama Tax Deed question

Kristina Knowles
  • Realtor
  • Chelsea, AL
Posted

This is one I have not seen before and wondering if someone in this community could provide some guidance. 

An investment company is holding a Tax Deed on a property, but have not paid the taxes in the last three years. If I acquire the property from the state how do I get the tax sale deed?  Will I owe anything to the previous investor currently holding the tax deed?  Thanks!

User Stats

113
Posts
26
Votes
Robert Sims
  • Rental Property Investor
  • Sugar Land, TX
26
Votes |
113
Posts
Robert Sims
  • Rental Property Investor
  • Sugar Land, TX
Replied

Great question! Newbie here as well!

User Stats

1,555
Posts
1,451
Votes
Denise Evans
  • JD, CCIM , Real Estate Broker
  • Tuscaloosa, AL
1,451
Votes |
1,555
Posts
Denise Evans
  • JD, CCIM , Real Estate Broker
  • Tuscaloosa, AL
Replied

@Kristina Knowles, @Robert Sims, you will not have to pay the prior investor anything. They will have redemption rights, just like any other former owner.  If it has been fewer than 3 years since the auction, you will receive a tax certificate from the state. After the 3-year anniversary from the most recent tax auction, you may surrender your certificate to the probate judge of the county where the property is located, pay a $5 fee, and receive a tax deed. If it has already been more than 3 years since the most recent tax auction, you will receive a tax deed from the state.

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User Stats

10
Posts
3
Votes
Kristina Knowles
  • Realtor
  • Chelsea, AL
3
Votes |
10
Posts
Kristina Knowles
  • Realtor
  • Chelsea, AL
Replied

Thanks for the info, Denise!

User Stats

5
Posts
0
Votes
Replied

@Denise Evans, maybe you could help with this. @Kristina Knowles's question sparked a question for me..

If a property owner (corporation) defaulted on their taxes and the property was sold at auction to an investor. Then the investor held the tax certificate for 3 years, then defaulted on the taxes, and it was again sold at auction in 2016. 

Would you send an ejectment order to the original property or the investor or both? Who all would have redemption rights? Would you need to worry about the previous tax certificate being sold or is it void once the investor fails to pay the taxes?