JD, CCIM , Real Estate Broker · Tuscaloosa, AL · Member since 2014 · 1k+ posts · 1k+ votes
9y
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.
JD, CCIM , Real Estate Broker · Tuscaloosa, AL · Member since 2014 · 1k+ posts · 1k+ votes
9y
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.
Birmingham, AL · Member since 2017 · 20 posts · 4 votes
9y
What rate should I charge the person redeeming the proper per man hour of labor? Can I markup the materials such as paint? Where can I get home insurance with a tax lien certificate? Is it expensive?
What rate should I charge the person redeeming the proper per man hour of labor? Can I markup the materials such as paint?
You don't charge a rate, you charge the value of the improvement. If you did the roof for free or paid 20k, if it only added 8k worth of value you can only charge the 8k.
Commercial Real Estate Broker · memphis, TN · Member since 2017 · 60 posts · 24 votes
9y
Does the owner have any right of redemption? You have a lien on the property but no deed from the taxing authority so it doesn't appear you own the property yet. If no deed I doubt you have any rights to do anything to the property. I'm no attorney but as a lienholder I believe your only right is to receive interest on the amount of taxes from owner if owner redeems the property by paying all taxes due. Each taxing authority has different state and local laws relative to collection of taxes from owners and there can be seal different time frames for redemption depending on how long taxes have been unpaid. Check with the taxing authority through which you bought the tax lien.
Does the owner have any right of redemption? You have a lien on the property but no deed from the taxing authority so it doesn't appear you own the property yet. If no deed I doubt you have any rights to do anything to the property. I'm no attorney but as a lienholder I believe your only right is to receive interest on the amount of taxes from owner if owner redeems the property by paying all taxes due. Each taxing authority has different state and local laws relative to collection of taxes from owners and there can be seal different time frames for redemption depending on how long taxes have been unpaid. Check with the taxing authority through which you bought the tax lien.
"Section 40-10-74 Right of purchaser or assignee to possession; redemption when lien is recorded.
Any purchaser of lands at a tax sale other than the state or anyone claiming under him shall be entitled to possession of said lands immediately upon receipt of certificate of sale from the tax collector; and, if possession is not surrendered within six months after demand therefor is made by said purchaser or his assignee, the said purchaser or his assignee may maintain an action in ejectment or a statutory real action in the nature of ejectment, or other proper remedy for the recovery of the possession of the lands purchased at such sales and shall be entitled to hold the possession thereof on recovery, subject, however, to all rights of redemption provided for in this title. If the mortgage or other instrument creating a lien under which a party seeks to redeem is duly recorded at the time of said tax sale, the said party shall, in addition to the time in this title specified, have the right to redeem said real estate sold, or any portion thereof covered by his mortgage or lien, at any time within one year from the date of written notice from the purchaser of his purchase of said lands at tax sale, served upon such party, and notice served upon either the original mortgagees or lienholders or their transferee of record, or their heirs, personal representatives or assigns shall be sufficient notice. Such notice shall be given by certified or registered mail, return receipt demanded, addressed to the last known address of the mortgagee or lienholder. Nothing in this title shall affect the rights of minors or insane persons to redeem as provided for in this title, or operate to convey or affect the rights, title or interest of any reversioner or remainderman.
(Acts 1935, No. 194, p. 256; Acts 1935, No. 528, p. 1114; Code 1940, T. 51, §287.)"
Birmingham, AL · Member since 2017 · 20 posts · 4 votes
9y
Situation question: I've been working on my tax lien house for over two months. A lady just walked up and said the house was her brothers. What are my next steps? Continue working on the property and tell the lady to contact the State of Alabama? I have a renter ready to rent Oct 1st. Please help!!
JD, CCIM , Real Estate Broker · Tuscaloosa, AL · Member since 2014 · 1k+ posts · 1k+ votes
9y
Tell her you bought the property after a tax sale, and her brother should contact you if he has any questions. Please go to my website, click on the Tax Sales tab, and click on the free article called "Redemption Time Line (Alabama)" Even if it is more than three years after the auction, the taxpayer might still have redemption rights. If you want to be paid for the VALUE (not limited to just the cost) of your repairs, you have to pay attention to very strict time limits after notice to redeem, otherwise you could forfeit any rights.
Birmingham, AL · Member since 2017 · 20 posts · 4 votes
8y
I have a Tax Deed (not a tax certificate) on a vacant house. How do I get the complete warranty deed or is this all I need in order to sell? Can I sell it without any reproductions? The 3 year redemption period is over. Do I need to "quiet the title"?
I have a Tax Deed (not a tax certificate) on a vacant house. How do I get the complete warranty deed or is this all I need in order to sell? Can I sell it without any reproductions? The 3 year redemption period is over. Do I need to "quiet the title"?
You can't get a warranty deed until you file a quiet title action and you can do that until 3 years from the day you took possession of the property (2nd 3yr clock called judicial redemption). You could also attempt to find the previous owner and ask/per$uade them to sign the house over to you.
As of right now you can sell the property for cash without any warranty via a quit-claim deed. I sell all my tax deed properties this way. Put it on Craigslist today, cash out by Friday.
Birmingham, AL · Member since 2017 · 20 posts · 4 votes
8y
Thank you Anastasia! Cash for the tax deed, correct? Anything I need to do at the court house if I have a buyer or just give them the tax deed and take the cash???
Thank you Anastasia! Cash for the tax deed, correct? Anything I need to do at the court house if I have a buyer or just give them the tax deed and take the cash???
Yes, you have work at the courthouse to do. Have the quit claim deed notorized.
Have it recorded in probate court/land records.
Go to the tax assessor's office & have it assesed in the buyer's name.
****Also you may want to have your buyer sign a bill of sale indicating what they are purchasing, and acknowledgment that they are purchasing it as-is, without warranty, without clear title or title examination, without inspection, & right of redemption applying.