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Updated almost 7 years ago on . Most recent reply

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Gene Walker
  • Mc Calla, AL
8
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42
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What is the process for the owner to get a tax sale void?

Gene Walker
  • Mc Calla, AL
Posted
Hello BP, I am new to the Alabama tax sale circuit and I would like to know what happens opposite of the investors side. I believe this will help me understand the whole process better? Ex. I purchased a tax certificate that has matured (3 yrs) and I now will be receiving a tax deed. I spoke with the previous owner today and she told me she sold this vacant land parcel along with an adjoining parcel. If this is true and the county ( Jefferson, Alabama) did not properly record the vacant land parcel I am assuming the tax sale would be void. How does the previous owner contest the tax sale and how will I be able to recover the money I have invested? @Denise Evans, please feel free to comment if you’ve dealt with this before.

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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

@Gene Walker, The former owner can raise this issue in several ways.

1) They can provide sufficient evidence to the tax collector to persuade that person to declare the sale void.  The tax collector will obtain the taxes plus interest from the former owner before that happens, and remit that sum of money to you.  If you have made any preservation improvements, you will not be paid for those. If you have a tenant in the property, the tenant will have to move out. Technically you can be forced to remit all collected rents to the former owner, because you were never legally entitled to possession.

2) They can file suit against you and ask the court to declare the sale void. Same results as above.

3) If you have not yet obtained possession, and file an ejectment lawsuit, they will counterclaim in the ejectment lawsuit and ask the court to declare the sale void. Same results.

4) If you have obtained possession and file a quiet title lawsuit, they will counterclaim in that lawsuit and ask the court to declare the sale void. Same results.

A void tax sale does not mean game over. The property is probably a problem for them. They might sell it to you very cheaply.

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