Tax Sales

Management of heir property is difficult because of confusion about who owns what and how much. Sometimes, with so many co-owners entitled to the land, it becomes difficult to keep track of who is (or should be) paying the annual property taxes on the land. If taxes are not paid, the land may be taken away from the family and sold at a tax sale to recoup unpaid taxes. Co-owners of the land may have trouble contacting one another and organizing to save the property.

In Alabama, property taxes are due annually on October 1st and become delinquent January 1st of the following year. Interest on unpaid taxes accrues at 1% per month (12% annually) and a fee is charged if paid late. If someone has failed to pay taxes on property, the tax assessor's office usually sends out delinquency notices, then puts an ad in the newspaper announcing the delinquency for several weeks. Tax sales of property are then advertised in the newspaper or posted at the county courthouse. Tax sales are usually held in May and the landowner has until the day before the sale to pay the taxes. Once the property is sold at an auction to the highest bidder, there is usually a grace period during which the property can be redeemed (this is known as "right of redemption"). The purchaser, who receives a tax certificate, must pay the taxes on the property for three consecutive years before receiving a tax deed. During this time, owners can get their property back, but must pay the delinquent tax amount, taxes owed since the sale, late fees, and interest accrued on the property.

Last Updated Jun. 22, 2011