Tax Lien Certificates and Tax Deed Sales in Alabama AL

There are 67 counties in Alabama. The state motto is "We Dare Maintain Our Rights" and was adopted in 1939.

Currently, the maximum interest rate being offered to all Alabama tax lien certificate investors is 12% with a three year right of redemption.

Summary: After the court issues a decree (Sec. 40-10-11), properties with delinquent taxes are sold at an auction to the highest bidder for cash, between the hours of 10:00 A.M. and 4:00 P.M. (Sec. 40-10-15). The minimum bid is the amount decreed by the court, being delinquent taxes, interest, costs and penalties (Sec. 40-10-16). As soon after the confirmation of sale is made as may be practicable, the tax collector must make out and deliver to each purchaser, other than the state, a certificate of purchase (Alabama tax lien certificates) (Sec. 40-10-19).

If no person shall bid for any real estate offered at such sale an amount sufficient to pay the sum specified in the decree of sale, and the costs and expenses subsequently accruing, the judge of probate shall bid in such real estate for the state at a price not exceeding the sum specified in such decree and such subsequently accruing cost and expenses. (Sec. 40-10-18). A tax lien certificate is issued to the state, but the tax lien certificate may subsequently be purchased directly from the State through assignment (Sec. 40-10-21).

Law: Code of Alabama, Title 40, Chapter 10, "Sale of Land."

Tax Sale List: Use Alabama Tax Sale Lists to search for Alabama tax lien certificates to buy or bid on. Generally most Alabama tax sale lists will identify the property owner, parcel number, legal description and the amount due. In some cases, the tax sale list may include the tax collectors assessed value of the property.

Contact: County Tax Collector (Sec. 40-10-12).

Interest Rate: 12% per annum from date of sale. Specifically, In order to obtain the redemption of land from tax sales where the same has been sold to one other than the state, the party desiring to make such redemption shall deposit with the judge of probate of the county in which the land is situated the amount of money for which the lands were sold, with interest thereon at the rate of 12 percent per annum from date of sale (Sec. 40-10-122). You'll earn interest on the minimum and premium bid amounts.

Auction Type: Tax Lien Certificate (Sec. 40-10-13, Sec. 40-10-19). Such sales shall be made in front of the door of the courthouse of the county at public outcry, to the highest bidder for cash, between the hours of 10:00 A.M. and 4:00 P.M (Sec. 40-10-15).

Bidding Procedure: Premium Bid. Bidder raises the amount above the minimum he will pay. The minimum bid is the amount decreed by the court, being delinquent taxes, interest, costs and penalties (Sec. 40-10-16).

Costs: The cost of advertising the part of such notices pertaining to lands purchased by others than the state shall be covered by the bids of the purchaser and collected by the collector as part of the purchase money (Sec. 40-10-23). When the purchaser returns the tax lien certificate a payment of a fee of $5 to the judge of probate will be required (Sec. 40-10-29).

Redemption Period: 3 years after the sale. More Specifically, after the expiration of three years from the date of the sale of any real estate for taxes, the judge of probate then in office must execute and deliver to the purchaser, other than the state, or person to whom the certificate of purchase has been assigned, upon the return of the certificate and payment of a fee of $5 to the judge of probate, a deed to each lot or parcel of real estate sold to the purchaser and remaining unredeemed (Sec. 40-10-29).

Deed Assigned at Foreclosure to: After the expiration of three years from the date of the sale of any real estate for taxes, the judge of probate then in office must execute and deliver to the purchaser ... a deed to each lot or parcel of real estate sold to the purchaser and remaining unredeemed ... and such deed shall convey to and vest in the grantee all the right, title, interest and estate of the person whose duty it was to pay the taxes on such real estate and the lien and claim of the state and county thereto, but it shall not convey the right, title or interest of any reversioner or remainderman therein. (Sec. 40-10-29, Sec. 40-10-30).

Notes: The deed conveyed upon expiration of the redemption period is not sufficient. You'll need to consult your legal professional for assistance with a quiet title action. Left-over liens not sold at the county level can be purchased from the Alabama State Commissioner of Revenue (Sec. 40-10-21 and 40-10-132)

Alabama Department of Revenue
Property Tax Division
50 North Ripley
Montgomery, AL 36132
(334) 242-1170
http://www.revenue.alabama.gov/advalorem/transcript/transcript.htm

Counties:

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