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AL SB172
Bill
AI Summary
SB172 Summary
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Allows tax sale purchasers and parties with property interests to bring a circuit court action after the administrative redemption period (at least 3 years) ends to resolve all rights of possession, redemption, title, and related issues without first maintaining possession of the property.
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Establishes a six-year deadline from the date of tax sale for owners, mortgagees, and lienholders to redeem property or challenge the validity of a tax sale, with limited exceptions.
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Persons asserting a right to redeem or challenging tax sale validity must pay required redemption amounts into court within 30 days or face dismissal of their claims with prejudice.
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Exempts from the six-year deadline: actions by the state, cases where taxes were paid or property was not subject to taxation at time of sale, owners with mortgages recorded at time of sale (one-year redemption period), minors and incompetent persons, and owners retaining actual, open, and continuous possession since the tax sale.
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Eliminates the time limit from prior case law (Rioprop Holdings v. Compass Bank) requiring tax purchasers to obtain possession or file suit within a specific timeframe.
Legislative Description
Relating to rights and remedies of a purchaser of real estate sold at a tax sale; to amend Section 40-10-82 of the Code of Alabama 1975, to provide limitations of actions that may be brought in circuit court to resolve certain issues related to real estate sold for the payment of taxes and to limit the period of time for a land owner to file a motion to redeem real estate sold for the payment of taxes, to challenge the validity of a tax sale, or to pay a court ordered judgment and costs.
Real estate tax sales, redemption periods, deadlines, rights of parties to bring certain actions in circuit court
Last Action
Introduced and Referred to Senate Fiscal Responsibility and Economic Development
4/5/2023