HB397 Alabama 2012 Session

Summary

Primary Sponsor

Steve McMillan

Republican

Session

Regular Session 2012

Title

Property sold for taxes, excess amount paid at redemption to be held in escrow in county treasury, Sec. 40-10-28 am'd.

Summary

HB397 changes how excess proceeds from real estate tax sales are held and paid, requiring escrow in the county treasury and setting when and to whom the funds must be paid.

What This Bill Does

It requires the excess from a tax sale to be held in escrow in the county treasury until it is used to redeem the property or until the three-year redemption period ends. After the three-year period, the excess can be paid to the property owner (or their agent) at the time of the sale or to anyone who has obtained title to the property since the sale, but only within 10 years of the tax sale. If the excess is not claimed within three years after the sale, the funds go to the county general fund. Within 10 years after the excess has been in the general fund, the county commission can order payment to the rightful owner; if not claimed in that window, the funds become the county's.

Who It Affects

• Property owners or their agents/heirs who are owed excess funds from a tax sale (entitled to receive funds after redemption or after the 3-year period).
• People who have obtained title to the property since the tax sale (new owners, heirs, or their representatives) who may be able to receive the excess within 10 years.

Key Provisions

• Excess from the sale of real estate for delinquent taxes must be held in escrow in the county treasury until applied to redemption or the three-year redemption period has elapsed.
• After the three-year redemption period, within 10 years of the sale, the county commission shall order payment of the excess to the property owner or to someone who has obtained title since the sale.
• If the excess is not claimed within three years after the sale, the county treasurer shall place the excess into the county general fund and record it as such.
• Within 10 years after the excess has been placed in the general fund, the county commission may order payment to the rightful owner; if not paid within that time, the excess becomes the property of the county.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Property, Real and Personal