HB550 Alabama 2019 Session

Existing law provides for the rights and remedies of a purchaser of real estate at a tax sale and provides that an owner may redeem the real estate sold at the tax sale within three years from the date of the tax sale under certain conditions

Existing law also provides that there is no time limit for recovery of real estate by an owner who has retained possession of the real estate after the tax sale

This bill would further clarify that the three-year time limit on actions for recovery would apply to owners not in possession of the real estate after the tax sale

This bill would also provide that there is no time limit for a tax purchaser to bring an action to possess real estate bought at a tax sale if the real estate was not recovered pursuant to existing law

This bill would also authorize the tax purchaser to retain a tax lien on the real estate for all taxes, insurance, improvements, attorneys' fees, costs, and interest until the lien is satisfied under certain conditions

Existing law also provides that an owner redeeming real estate sold at a tax sale would be subject to an interest rate of 12 percent before January 1, 2020, and on or after January 1, 2020, the interest rate would be eight percent

This bill would keep the interest rate at 12 percent on or after January 1, 2020

To amend Sections 40-10-82 and 40-10-120, Code of Alabama 1975, relating to real estate sold for the payment of taxes; to further provide for actions for recovery of the real estate by the owner and for actions by the tax purchaser for possession of the real estate; to authorize the tax purchaser to retain a tax lien on the real estate under certain conditions; and to repeal Act 2018-494, 2018 Regular Session, relating to the interest rate paid by an owner to redeem property sold at a tax sale.