AL SB218

Amends Section 40-10-28 of the Alabama Code to define "owner" and "rightful owner" for purposes of distributing excess funds from real estate tax sales to include mortgage holders.

Establishes a priority order for distributing excess funds: first to the holder of any recorded first mortgage on the property as of the tax sale date; second to holders of other recorded mortgages in order of recordation; and third to any other person owning the property after all mortgages are paid.

Excess funds must be claimed within three years of the tax sale; if not claimed, funds are transferred to the county's general fund after three years.

Property owners or rightful owners may request payment of excess funds up to 10 years after the funds are transferred to the county's general fund, after which the funds become county property.

Effective date is the first day of the third month following passage and approval by the Governor.