SB218 Alabama 2012 Session

Summary

Primary Sponsor

Mark Slade Blackwell

Republican

Session

Regular Session 2012

Title

Property, sale for tax delinquents, excess funds to owner of property, includes holder of records, Sec.40-10-28 am'd

Summary

SB218 clarifies who can receive excess funds from a tax sale and sets the payment order, starting with mortgage holders.

What This Bill Does

It amends Section 40-10-28 to define 'owner' and 'rightful owner' to include holders of recorded mortgages and other property owners. It establishes the priority for paying any excess funds: first, the holder of the recorded first mortgage; second, holders of other mortgages in order of recording; third, any other person owning the property after all mortgages are paid. It explains how unclaimed funds are handled and when rightful owners can claim them, and it sets the act's effective date.

Who It Affects

• Mortgage holders (first mortgage holders and other recorded mortgage holders) who would receive excess tax sale funds according to the new priority.
• Property owners and rightful owners (including heirs or legal representatives) who may receive funds after mortgages are paid, within a defined time frame to claim them.

Key Provisions

• Defines 'owner' and 'rightful owner' to include holders of recorded mortgages on the tax sale date, with priority: first mortgage holder, then other mortgages in order of recordation, then other owners after mortgages are paid.
• Specifies the order of payment for excess funds and outlines the process for funds if unclaimed (3-year claim period; funds go to county general fund if unclaimed; within 10 years, rightful owner can be paid on proof of ownership; after that, funds become county property).
• States the act becomes effective on the first day of the third month after passage and governor's 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

Property, Real and Personal