Sandy Springs, GA · Member since 2017 · 17 posts · 6 votes
Can someone let me know the difference between the Certificate of Sale vs. Deed and what can be done with each?
Having made a few purchases via the Delinquent Tax Sale List and receiving a Certificate of Sale, what is the next step after that? Does the Certificate of Sale need to be recorded in the County Seat of the county of sale?
None of this is really explained on the Alabama Dept of Revenue site - or explained where I can personally understand it. I guess if you're going to make the purchase, then they expect you to know and do your research.
Rockwall, TX · Member since 2014 · 380 posts · 211 votes
9y
Hi Stephanie,
Since you mentioned Alabama I am tagging @Denise Evans as she is the resident expert on Tax Sales there. I assume you are meaning that you received a Certificate of Tax Lien rather than a Tax Deed. The lien certificate is issued for the first three years after the property is 'sold' for delinquent taxes. After three years from the original 'sale' date, you can apply for a Tax Deed (automatic if purchasing the tax rights more than 3 years after the original sale date). As I understand, you need not register the Tax Lien Certificate as the county already has that recorded; unless you purchased it from other the county or the state in which case you need to register the transfer.
Your next step depends on the property, its occupancy, your intentions and a myriad of other factors that need some level of research and additional information to make a good decision. Alabama tax sales are MUCH more complex than is explained on the ADOR or any county site. You need education, a mentor and a good lawyer to be an Alabama Tax Investor. Else you are just gambling.