Alabama House Bill HB190

Alabama 2023 Regular Session

• Introduced: 3/23/23
• Refer: 3/23/23

Caption

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.

Impact

The bill introduces a six-year absolute deadline for owners, mortgagees, or lienholders to redeem a property sold in a tax sale. This six-year limit aims to provide a definitive timeline within which claims must be made, ultimately leading to a resolution for legal ownership of properties after tax sales. Additionally, it retains certain existing rights for mortgagees and lienholders, ensuring they can still redeem their rights within a one-year period after receiving written notice about the tax sale.

Summary

House Bill 190 aims to amend existing laws related to the redemption period for properties sold at tax sales in Alabama. It clarifies that after the administrative redemption period, individuals with an interest in the property—including purchasers, owners, mortgagees, and lienholders—can initiate a lawsuit to establish their rights and obtain clear title to the property. The bill emphasizes that tax sale purchasers can file suit without first having to maintain possession of the property, allowing for a more streamlined process in securing ownership following a tax sale.

Contention

There may be some points of contention surrounding the implications this bill has on property owners' rights, particularly concerning the established timelines for redemption and the stipulation that failing to act within the specified time frame could lead to loss of rights. Critics could argue that the bill disproportionately impacts property owners who may face challenges in meeting these deadlines, thus raising concerns about fairness and access to legal recourse in protecting one's property rights.