HB673 Alabama 2012 Session

Summary

Primary Sponsor

Mike Hill

Republican

Session

Regular Session 2012

Title

Real property, period of redemption reduced, exceptions, apply to sales pursuant to an executive, judgment, or foreclosure on and after September 1, 2012, prohibition of pre-sale waiver of the right of redemption repealed, permanent improvements defined, Sec. 6-5-248, 6-5-250, 6-5-253, 6-5-254 am'd

Summary

HB673 shortens the redemption period after a real estate sale to 90 days for most property, keeps 1 year for agricultural/forestry land, allows pre-sale waivers of redemption rights, and defines permanent improvements, applying to sales after September 1, 2012.

What This Bill Does

Reduces the time to exercise the right of redemption from one year to 90 days for properties not used for agriculture or forestry. Keeps a 1-year redemption period for property used for agricultural or forestry purposes. Repeals the prohibition on pre-sale waivers of the right of redemption, allowing such waivers to occur before sale. Defines permanent improvements as all improvements made to the property after the sale and requires the redemption price to include the value of those improvements.

Who It Affects

• Group 1: Debtors and mortgagors (and their spouses, children, heirs, or devisees) whose property is sold. They would have a 90-day window to redeem (instead of 1 year) for most property and must pay the purchase price, interest, taxes, insurance, and the value of permanent improvements to redeem the property.
• Group 2: Creditors and other redeeming parties (judgment creditors, junior mortgagees or their transferees, and purchasers or their mortgagees). They may redeem within the 90-day window (or 1 year for agricultural/forestry property) and, if they redeem, liens and prior charges may be revived and must be paid as part of the redemption; pre-sale redemption waivers become possible.

Key Provisions

• Redemption period shortened to 90 days after sale for all property not categorized as agricultural or forestry property; agricultural/forestry properties retain a 1-year redemption period.
• Prohibitions on pre-sale waivers of the right of redemption are repealed, allowing such waivers to take effect before foreclosure or execution sale.
• Permanent improvements are defined as all improvements made to the property after the sale, regardless of necessity or reasonableness, and their value must be included in the redemption price.
• The act applies to all execution, judgment, and foreclosure sales occurring on or after September 1, 2012.
• Redemption price calculations require paying the purchase price plus interest, taxes, insurance, and other lawful charges, along with the value of permanent improvements and any higher-priority liens revived at redemption.
• A procedure is established to determine the value of permanent improvements (including use of referees and, if needed, an umpire, with a final award).
• Redemption can affect liens and priorities: when redemption occurs, higher-priority judgments and liens may be revived against the redeemed property and the redeeming party.

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