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Updated almost 6 years ago on . Most recent reply

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Sean Whiteman
  • Gadsden , AL
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Alabama Redemption when buying a Tax Deed via quick claim

Sean Whiteman
  • Gadsden , AL
Posted

Question:

I purchased via quick claim deed a property in Alabama that was purchased at a tax sale in 2012. Tax Deed was issued in May of 2016. Unknown what if any steps prior owner took regarding ejectment lawsuits. Based on the case I just learned about regarding the three-year time limit to file an ejectment a lawsuit, I am concerned about any recourse. I took possession in March of 2019.

Am I time bared form filing an ejectment lawsuit? Do I need to file an ejectment lawsuit? 

There was one year of past due taxes at the time of sale which I have paid. Given keys a the time of purchase, empty house turned into a rental unit in one month. My tenant now lives in the house has paid rent on time thus far. 

This is the detailed history listed in the quick claim sale document to me:

All outstanding and future taxes will be the responsibility of the Purchaser. Sale is via Quitclaim Deed and therefore there will be no prorated items. Purchaser understands that there are delinquent taxes owed on the property which need to be paid to the County otherwise Purchasers interest will be forfeited. Seller purchased this property at a tax sale on April 18, 2012 and received their tax deed on May 18, 2016 under the name of RM North LLC Cust-FTAX Al LLC. On August 16, 2016 there was a Quit Claim Deed recorded transferring all interest in the property to FTAX Alabama, LLC. On November 14, 2018 FTAX Alabama, LLC gained possession of the property.

Can any of you pro's take a look at this deal and let me know if I am standing on good grounds or what do I need to do.

Thanks in advance for your review

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Denise Evans#1 Tax Liens & Mortgage Notes Contributor
  • JD, CCIM , Real Estate Broker
  • Tuscaloosa, AL
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Denise Evans#1 Tax Liens & Mortgage Notes Contributor
  • JD, CCIM , Real Estate Broker
  • Tuscaloosa, AL
Replied

@Sean Whiteman, The Rioprop decision is in the nature of an affirmative defense. If the taxpayer raises it, then you might be time barred.  But it doesn't happen automatically.  If it were me, I might let sleeping dogs lie until I had a tenant in there for slightly more than three years, and then file my quiet title lawsuit.  If the taxpayer argues the short statute, your response would be that you have been in possession for three years, so the short statute does not apply as a bar.

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