Tax Lien Certificates

Alabama Tax Lien Certificates

Alabama tax lien certificates are sold at County Tax Sales during the month of May each year. The bidding begins at just the back taxes owed. The winning bidder at an Alabama tax sale is the bidder with the greatest bid.

The original owner has (3) three years to redeem his or her interest in the property. To redeem, the original owner must tender the amount the investor paid to purchase the Alabama tax lien certificate plus 12% per annum on the minimum and the overbid (see notes on bidding).

If the property is not redeemed within the (3) three year redemption period the purchaser of the Alabama tax lien certificate can apply for a tax deed to the property.

Tax Sale Type: Tax Lien Certificates (Sec. 40-10-19 )

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

Interest Rate: 12% per annum (Sec. 40-10-122 )

Bid Procedure: Premium Bid (Sec. 40-10-16 )

Redemption Period: Three (3) years (Sec. 40-10-29 )

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

Additional Notes:

Important. According to (Sec. 40-10-29 and Sec. 40-10-30 ) after the 3 year redemption period has expired the judge of probate 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 conveyed upon expiration of the redemption period is not sufficient.

As the purchaser of an Alabama tax lien certificate you need to be aware that you will need to consult a legal professional for assistance with a quiet title action.

Left-over liens. Tax lien certificates 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
Visit Alabama Department of Revenue Website

Caution on bidding. According to (Sec. 40-10-122 ) the bidder will only earn interest at the rate of 12 percent per annum on the amount of all taxes and any excess bid that is less than or equal to 15 percent of the market value as established by the county board of equalization which can be determined by reviewing the tax collector records.

Therefore, should the investor should enter into competitive bidding, he or she should never place a bid in excess of 15 percent of the value as determined by the county board of equalization.

Disposition of excess arising from sale. According to (Sec. 40-10-28 ) the proceeds or excess funds generated from the sale of real estate remaining after satisfying the amount of the decree of sale, costs, fees, subsequently accruing, are to be paid to the owner, or his agent, or to the person legally representing such owner, or into the county treasury.

Tax sale overages. According to (Sec. 40-10-28 ) if such tax sale proceeds, overages, or excess funds are not requested within three years after the sale of the property such money shall thereafter be treated as part of the general fund of the county. In addition, any time within 10 years after the funds have been deemed as part of the general fund of the county, on proof made by any person that he is the rightful owner of such excess money order the payment thereof to such owner, his heir or legal representative else such excess funds shall become the property of the county.

Agreement to locate property. According to (Sec. 35-12-93 ) "(a) An agreement by an owner, the primary purpose of which is to locate, deliver, recover, or assist in the recovery of property that is presumed abandoned is void and unenforceable if it was entered into during the period commencing on the date the property was presumed abandoned and extending to a time that is 24 months after the date the property is paid or delivered to the Treasurer. ..." and "(e) An owner who has agreed to pay compensation that is unconscionable, may maintain an action to reduce the compensation to a conscionable amount. ..."

Presumption of abandonment. In addition (Sec. 35-12-72 ) says "(a) Property is presumed abandoned if it is unclaimed by the apparent owner during the time set forth below for the particular property: (13) Property held by a court, government, governmental subdivision, agency, or instrumentality, one year after the property becomes distributable. ..."

Counties located in Alabama

To learn how to purchase Alabama Tax Lien Certificates simply click on the name of the county for which you are interested in the list below.

County:	Auction Type:	Population:
Autauga County	Tax Lien Certificates	43,671
Baldwin County	Tax Lien Certificates	140,415
Barbour County	Tax Lien Certificates	29,038
Bibb County	Tax Lien Certificates	20,826
Blount County	Tax Lien Certificates	51,024
Bullock County	Tax Lien Certificates	11,714
Butler County	Tax Lien Certificates	21,399
Calhoun County	Tax Lien Certificates	112,249
Chambers County	Tax Lien Certificates	36,583
Cherokee County	Tax Lien Certificates	23,988
Chilton County	Tax Lien Certificates	39,593
Choctaw County	Tax Lien Certificates	15,922
Clarke County	Tax Lien Certificates	27,867
Clay County	Tax Lien Certificates	14,254
Cleburne County	Tax Lien Certificates	14,123
Coffee County	Tax Lien Certificates	43,615
Colbert County	Tax Lien Certificates	54,984
Conecuh County	Tax Lien Certificates	14,089
Coosa County	Tax Lien Certificates	12,202
Covington County	Tax Lien Certificates	37,631
Crenshaw County	Tax Lien Certificates	13,665
Cullman County	Tax Lien Certificates	77,483
Dale County	Tax Lien Certificates	49,129
Dallas County	Tax Lien Certificates	46,365
Dekalb County	Tax Lien Certificates	64,452
Elmore County	Tax Lien Certificates	65,874
Escambia County	Tax Lien Certificates	38,440
Etowah County	Tax Lien Certificates	103,459
Fayette County	Tax Lien Certificates	18,495
Franklin County	Tax Lien Certificates	31,223
Geneva County	Tax Lien Certificates	25,764
Greene County	Tax Lien Certificates	9,974
Hale County	Tax Lien Certificates	17,185
Henry County	Tax Lien Certificates	16,310
Houston County	Tax Lien Certificates	88,787
Jackson County	Tax Lien Certificates	53,926
Jefferson County	Tax Lien Certificates	662,047
Lamar County	Tax Lien Certificates	15,904
Lauderdale County	Tax Lien Certificates	87,966
Lawrence County	Tax Lien Certificates	34,803
Lee County	Tax Lien Certificates	115,092
Limestone County	Tax Lien Certificates	65,676
Lowndes County	Tax Lien Certificates	13,473
Macon County	Tax Lien Certificates	24,105
Madison County	Tax Lien Certificates	276,700
Marengo County	Tax Lien Certificates	22,539
Marion County	Tax Lien Certificates	31,214
Marshall County	Tax Lien Certificates	82,231
Mobile County	Tax Lien Certificates	399,843
Monroe County	Tax Lien Certificates	24,324
Montgomery County	Tax Lien Certificates	223,510
Morgan County	Tax Lien Certificates	111,064
Perry County	Tax Lien Certificates	11,861
Pickens County	Tax Lien Certificates	20,949
Pike County	Tax Lien Certificates	29,605
Randolph County	Tax Lien Certificates	22,380
Russell County	Tax Lien Certificates	49,756
Shelby County	Tax Lien Certificates	143,293
St. Clair County	Tax Lien Certificates	64,742
Sumter County	Tax Lien Certificates	14,798
Talladega County	Tax Lien Certificates	80,321
Tallapoosa County	Tax Lien Certificates	41,475
Tuscaloosa County	Tax Lien Certificates	164,875
Walker County	Tax Lien Certificates	70,713
Washington County	Tax Lien Certificates	18,097
Wilcox County	Tax Lien Certificates	13,183
Winston County	Tax Lien Certificates	24,843

 

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