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Updated almost 6 years ago on . Most recent reply

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John Blackmon
  • Birmingham, AL
4
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20
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Tax lien certificate question...

John Blackmon
  • Birmingham, AL
Posted

if I already have a tax lien certificate in Alabama, can I renovate and then rent the house?  

Most Popular Reply

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Denise Evans
  • JD, CCIM , Real Estate Broker
  • Tuscaloosa, AL
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Denise Evans
  • JD, CCIM , Real Estate Broker
  • Tuscaloosa, AL
Replied

You can make repairs, but not additions or upgrades.  You can rent the house, but you must have a 30-day notice to cancel clause in your lease because if the taxpayer redeems, you (and your tenant) are no longer entitled to possession.  If the taxpayer redeems, it will have to pay you for the VALUE of the repairs, meaning the increased value of the property due to the repairs. Best to get an appraisal for the "before" value.  There are strict time limits for responding to a redemption request. If you miss your deadlines, you could forfeit the right to be paid for those repairs. Please go to my website and download the free article about redemption time limits for guidance on this issue.

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