HB270 Alabama 2024 Session

Updated Feb 23, 2026

Notable

Summary

Primary Sponsor: Chris SellsRepresentative
Republican
Session: Regular Session 2024
Title: Tax delinquent properties, provides for distribution of excess funds from certain tax sale, actions to foreclose and quiet title, public auction demanded and distribution of proceeds, distribution of surplus proceeds, limited application of act.
Summary: HB270 updates Alabama law on tax-delinquent properties by changing how excess funds from tax sales are paid, expanding redemption and foreclosure rules, and adding public auction options.
What This Bill Does
It changes how excess funds from tax sales are distributed, allowing certain redeeming parties, or subsequent owners, to receive the excess within extended time windows (up to 10-12 years depending on sale year) and permitting payment via negotiated redemptions or releases. It broadens who may bring foreclosure and quiet title actions on tax liens (with new notice requirements) and extends the minimum/maximum time frame for such actions. It creates a process for selling the property at public auction if requested by redeeming parties and sets how auction proceeds and any surplus are distributed, including giving surplus back to the original owner or heirs. It also establishes procedural details for notices, guardians ad litem for minors/incapacitated defendants, and the handling of costs and attorney fees. The act becomes effective October 1, 2024 and applies to liens without a final foreclosure judgment by that date.

Who It Affects
Owners of tax-delinquent properties and their heirs or subsequent holders, who may receive excess funds through redemption, negotiated redemptions, or releases and waivers, or may have to respond to foreclosure actions.
Holders of tax lien certificates and their successors, who may pursue foreclosures, conduct public auctions, and receive proceeds and costs under the new rules.

Key Provisions
Excess funds from tax sales are paid to redeeming parties or property owners within extended time windows (3-year redemption period, then 10-12 year payout windows depending on sale year), with options for negotiated redemption or release and waiver.
Foreclosure and quiet title actions for tax liens may be filed not less than four years and not more than ten years after a tax lien sale (extended by 12 months if legally prohibited), with expanded notice to owners, lenders, and interested parties and inclusion of guardians ad litem when needed.
Public auctions may be demanded by redeeming parties, with rules for notice, bidding, costs, and distribution of auction proceeds, including first paying costs and the amount needed to redeem, then distributing surplus to the property owner or heirs.
Procedural details on notices, service, certificates, and costs, plus the distribution of surplus funds to the original owner or successors, and eventual county ownership if no claims are made within the designated periods; effective date is October 1, 2024.

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