HB591 Alabama 2010 Session

Summary

Primary Sponsor

Mike Hill

Republican

Session

Regular Session 2010

Title

Property sold for nonpayment of taxes, mortgagee, judgment creditor, or other creditor having a lien in the real estate lands sold for nonpayment of taxes may redeem the property in the name of the owner of the property, Secs. 40-10-120, 40-10-122 am'd.; Act 2009-508, 2009 Reg. Sess. am'd.

Summary

HB591 would allow mortgagees, judgment creditors, and other lienholders on real estate sold for nonpayment of taxes to redeem the property in the owner's name.

What This Bill Does

The bill amends existing law to authorize lienholders to redeem tax-sold property in the owner's name, expanding who can redeem. It preserves standard redemption windows (within three years after sale, or before title leaves the state, with disability-related extensions) and outlines the required payments, notices, and fees. It also adds special rules for urban renewal areas, including additional charges for insurance and improvements and a formal valuation process for disputed improvements, with online redemption options and specific procedures for multi-sale redemptions. The act takes effect on the first day of the third month after Governor approval.

Who It Affects

• Mortgagees, judgment creditors, and other creditors with a lien on real estate sold for nonpayment of taxes — gain the right to redeem the property in the owner's name and must follow the specified redemption procedures.
• Property owners whose land has been sold for taxes and purchasers at tax sale (including their heirs/personal representatives) — their property could be redeemed by lienholders, which affects title, redemption costs, and timing under the new rules.

Key Provisions

• Amends sections 40-10-120 and 40-10-122 to allow a mortgagee, judgment creditor, or other lienholder to redeem the tax-sold property in the name of the owner.
• Redemption timing: lienholders may redeem within the existing three-year window after the owner's sale (or before title passes out of state), with disability-related extensions; if multiple tax sales occurred, a redemption can cover all related sales when done together, with amounts calculated per existing sections.
• Redemption payments: the redeeming party deposits with the county probate judge the sale amount plus 12% interest, plus any taxes due and other costs; online redemption and payment are permitted; a small probate fee is required.
• Urban renewal/redevelopment areas: redeeming lienholders must pay additional amounts for insurance premiums and the value of permanent and preservation improvements, with 12% interest; these values are determined through a specified valuation process involving requests, responses, and potential referees/umpire.
• Residential property provisions: when the property contains a residential structure, redeeming lienholders must also pay insurance premiums and the value of preservation improvements, with a detailed process for determining value (demands, referee/umpire procedures, and final awards).
• Valuation and dispute resolution: defined terms for permanent and preservation improvements, with a written demand process, referee selection, and umpire if dispute occurs; final award is binding between parties.
• Effectiveness: the act becomes effective on the first day of the third month after passage and Governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation