HB190 Alabama 2023 Session

Summary

Primary Sponsor

Tim WadsworthRepresentative

Republican

Session

Regular Session 2023

Title

Relating to rights and remedies of a purchaser of real estate sold at a tax sale; to amend Section 40-10-82 of the Code of Alabama 1975, to provide limitations of actions that may be brought in circuit court to resolve certain issues related to real estate sold for the payment of taxes and to limit the period of time for a land owner to file a motion to redeem real estate sold for the payment of taxes, to challenge the validity of a tax sale, or to pay a court ordered judgment and costs.

Summary

HB190 changes Alabama tax-sale real estate rules by setting a six-year absolute redemption deadline, expanding who can sue for title and possession after a tax sale, and clarifying court procedures.

What This Bill Does

After the statutory redemption period ends, anyone with an interest in the property (purchasers, owners, mortgagees, and lienholders) may sue in circuit court to determine rights, title, and possession so clear title can be obtained. The bill allows a tax sale purchaser to pursue title without having held possession. It establishes an absolute six-year deadline for redemption by owners, mortgagees, or lienholders, with several exceptions, and preserves other redemption rights (e.g., owners in possession, minors, and those with mortgages or liens). It also makes procedural changes, such as requiring the redeeming party to pay into court the redemption amount within 30 days and allowing the court to fully resolve all related issues and grant appropriate relief, including 90-day redemption or possession judgments.

Who It Affects

• Tax sale purchasers and any transferees: may pursue title and resolve rights after the statutory redemption period, potentially obtaining clear title even if not in possession.
• Property owners, mortgagees, and lienholders: face a six-year absolute redemption window (with exceptions); those in possession may redeem with no time limit; mortgagees and lienholders have a one-year redemption right after notice; minors and incompetent persons have redemption rights; the state and certain properties (taxes paid or not subject to taxation) are not bound by the six-year limit.

Key Provisions

• Amends 40-10-82 to allow actions to resolve possession, redemption, and title after the purchaser becomes entitled to a deed; requires payment into court of redemption amount (less excess bid) within 30 days when redeeming or challenging the sale; failure to pay leads to dismissal with prejudice.
• Establishes, with exceptions, an absolute six-year deadline to redeem for owners, mortgagees, or lienholders; the six-year limit does not apply to the state or to owners where taxes were paid or not subject to taxation; minors and incompetent persons have extended considerations; there is no time limit for redemption by an owner who has retained actual possession.
• Allows mortgagees and lienholders to redeem within one year after written notice of the tax sale; requires notice be served to current lienholders and their heirs/representatives; if not timely paid, redemption rights may be affected.
• After statutory redemption, the court must fully and finally resolve all issues, including sale validity, title, and possession, and may order relief, permit redemption within 90 days, or grant judgment in favor of the purchaser to vest title.
• There shall be no time limit for possession-related actions by a purchaser current with ad valorem taxes to seek possession or clear title if not yet recovered by the owner; the act also clarifies that failure to assert rights or tender amounts may result in judgment in favor of the purchaser.
• Effective date: the act becomes law on the first day of the third month following its passage.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Real estate tax sales, redemption periods, deadlines, rights of parties to bring certain actions in circuit court .