SB172 Alabama 2023 Session

Summary

Primary Sponsor

Sam GivhanSenator

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

SB172 would change how real estate sold for taxes can be redeemed or litigated, creating a six-year redemption deadline with exceptions and a post-sale court process to determine title and possession.

What This Bill Does

After the three-year statutory redemption period, any party with an interest in the property can sue in circuit court to resolve rights, title, and redemption. A tax sale purchaser may sue to establish title even if they never possessed the property, and the court can grant redemption or title as appropriate. The bill sets a general six-year deadline to redeem for owners, mortgagees, and lienholders (with specific exceptions), preserves a one-year redemption window for mortgagees and lienholders after notice, and allows owners who have actually possessed the property to redeem with no time limit. It creates a court-driven process to resolve all related issues in a single action and allows orders such as redemption upon full payment within 90 days or entry of title in favor of the purchaser, while ending a prior rule that limited possession rights for purchasers and clarifying various redeeming rights for different parties.

Who It Affects

• Group 1: Property owners and other interests (owners, mortgagees, lienholders, minors, and legally incompetent individuals) affected by tax sales; they face a six-year redemption deadline with exceptions, have potential extensions in certain disability cases, and may redeem if they retain possession with no time limit in that scenario.
• Group 2: Tax sale purchasers and other interested parties seeking title or to resolve redemption rights through court action; they may file post-statutory redemption suits in circuit court to obtain title or enforce redemption and may be affected by the elimination of older possession limits and by prescribed court procedures.

Key Provisions

• Maintains the three-year administrative redemption period but creates a new judicial redemption process after it ends, allowing post-period suits to determine rights and obtain title.
• Imposes an absolute six-year deadline to redeem for owners, mortgagees, and lienholders, with exceptions (state and certain tax-exempt or paid properties are exempt; disabilities provide extensions; ownership in possession can alter timing).
• Eliminates Rioprop Holdings' rule that limited a tax purchaser's ability to obtain possession to avoid forfeiture.
• Affirms mortgagee and lienholder redemption rights within one year of written notice to redeem, and preserves an owner's right to redeem even if in possession; the six-year limit does not apply in certain listed situations.
• Authorizes circuit court actions to resolve all issues (sale validity, title, possession, redemption) and to issue orders such as granting relief, allowing redemption with 90 days, or entering title in favor of the purchaser.
• Provides that there shall be no time limit for redemption by an owner who has retained actual possession, and no time limit for the purchaser to pursue possession or clear title if not yet recovered; specific exceptions apply for states, taxes already paid, or non-taxable properties.

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