Redemption of Land Sold for Taxes.

Ala. Code tit. 40, ch. 10, art. 5

in effect

Ala. Code § 40-10-120 When and by Whom Land May Be Redeemed.

40-10-120. When and by Whom Land May Be Redeemed. (a) Real estate which hereafter may be sold for taxes and purchased by the state may be redeemed at any time before the title passes out of the state or, if purchased by any other purchaser, may be redeemed at any time within three years from the date of the sale by the owner, his or her heirs, or personal representatives, or by any mortgagee or purchaser of such lands, or any part thereof, or by any person having an interest therein, or in any part thereof, legal or equitable, in severalty or as tenant in common, including a judgment creditor or other creditor having a lien thereon, or on any part thereof; and an infant or insane person entitled to redeem at any time before the expiration of three years from the sale may redeem at any time within one year after the removal of the disability; and such redemption may be of any part of the lands so sold, which includes the whole of the interest of the redemptioner. If the mortgage or other instrument creating a lien under which a party seeks to redeem is duly recorded at the time of the tax sale, the party shall, in addition to the time herein specified, have the right to redeem the real estate sold, or any portion thereof covered by his or her mortgage or lien, at any time within one year from the date of written notice from the purchaser of his or her purchase of the lands at tax sale served upon such party, and notice served upon either the original mortgagees or lienholders or their transferee of record, or their heirs, personal representatives, or assigns shall be sufficient notice. (b) If any real property has been sold for taxes and is subject to redemption from the sale as set forth in subsection (a) and has also been sold in one or more subsequent sales for taxes, then any party entitled to redeem such sale for taxes may redeem such sale if the redemptioner simultaneously redeems his or her sale and all subsequent sales. In the event of a redemption of successive sales, the redemption amount shall be ascertained by applying the provisions of Sections 40-10-121 and 40-10-122. Redemption amounts computed pursuant to Section 40-10-121 shall be paid as stated therein. Redemption amounts computed pursuant to Section 40-10-122 shall be paid as stated therein if the purchaser had the right to redeem pursuant to subsection (a) or was the owner of the then current tax certificate or tax title. Otherwise, those funds shall be disposed of as set forth in Section 40-10-28 and paid to such purchaser or his or her assignee only as set forth in Section 40-10-28, with the time limits for such application computed utilizing the sale date when the purchaser’s interest was sold for taxes. (Acts 1935, No. 194, p. 256; Code 1940, T. 51, §303; Act 2009-508, p. 937, §1.)

Ala. Code § 40-10-121 Manner of Redemption of Land Sold to State.

40-10-121. Manner of Redemption of Land Sold to State. (a) In order to obtain the redemption of land from tax sales where the same has been heretofore or hereafter sold to the state, the party desiring to make such redemption shall apply therefor as hereinafter provided and shall deposit with the judge of probate of the county in which the land is situated the amount of money for which the lands were sold, with interest thereon at the rate of eight percent, together with the amount of all taxes found to be due on such land since the date of sale, as provided herein, with interest at the rate of eight percent and all costs and fees due to officers. (b) Upon application to the probate judge to redeem land where the same has been sold to the state for taxes, which application shall be made on blank forms to be furnished by the Land Commissioner, the probate judge shall submit such application to the tax assessor of the county in which the land sought to be redeemed is located, and the assessor shall without delay enter on such application an assessment value for each of the years for which taxes are due, subsequent to the year for which such land was sold to the state for taxes, and such assessment value shall be such percentage as established by law of the fair and reasonable market value of such lands as of October 1 of the year or years subsequent to the year for which the land was sold for taxes. (c) Any party having a right to redeem the property, his or her agents, or attorney, shall have the right to file a written protest with the board of equalization, objecting to the valuation of the land as placed on the property by the tax assessor, setting forth his or her ground of objection to the assessed value of the property as fixed by the tax assessor, and the board of equalization shall, thereafter, fix a day for hearing the protest by giving to the tax assessor and party desiring to redeem, his or her agents, or attorney, at least 10 days’ written notice of the day and place of hearing the petition, and upon the hearing of the cause, the board of equalization shall have the right to review the assessed value of the property as fixed by the tax assessor and shall fix and determine the assessed value for each of the years subsequent to the year for which such land was sold to the state for taxes, and the board of equalization shall certify to the probate judge the assessed value of the land so fixed. (d) The redemptioner shall deposit with the probate judge the amount of money for which lands were sold for taxes, plus the amount due for subsequent years based on the assessment value as required to be fixed herein, and interest costs, and fees as provided in this section. (e) If any balance remains due to the state upon any lien arising by reason of any installment redemption the payment of which is secured under the provisions of Section 40-10-141, the redemptioner shall also deposit with the probate judge the amount of the balance due upon such lien, with interest to the date of redemption. (f) If the lands sought to be redeemed, or any portion thereof, are situated in any municipality, the redemptioner shall also deposit with the probate judge the amount of any unpaid taxes assessed against the same by such municipality, and an amount equal to any municipal taxes thereon which, subsequent to the tax sale, were not assessed by reason of the fact that such land had been purchased by the State of Alabama, plus interest which would have accrued upon such municipal taxes from the time the same would have otherwise become delinquent, which amounts, with interest, shall be treated and distributed in the same manner as taxes and interest thereon. (Acts 1935, No. 194, p. 256; Acts 1935, No. 526, p. 1113; Acts 1936, Ex. Sess., No. 54, p. 30; Code 1940, T. 51, §304; Acts 1943, No. 578, p. 580; Acts 1988, 1st Ex. Sess., No. 88-824, p. 265, §14; Act 2018-494, §1.)

Ala. Code § 40-10-122 Manner of Redemption When Land Sold to Party Other Than State.

40-10-122. Manner of Redemption When Land Sold to Party Other Than State. (a)(1) In order to obtain the redemption of land from tax sales where the same has been sold to one other than the state, the party desiring to make such redemption shall deposit with the judge of probate of the county in which the land is situated the amount of money for which the lands were sold, with interest payable at the rate of eight percent per annum from date of sale, and, on the portion of any excess bid that is less than or equal to 15 percent of the market value as established by the assessing official, together with the amount of all taxes which have been paid by the purchaser, which fact shall be ascertained by consulting the records in the office of the tax collector, or other tax collecting official, with interest on the payment at eight percent per annum. If any taxes on the land have been assessed to the purchaser and have not been paid, and if the taxes are due which may be ascertained by consulting the tax collector or other tax collecting official of the county, the probate judge shall also require the party desiring to redeem the land to pay the tax collector or other tax collecting official the taxes due on the lands which have not been paid by the purchaser before he or she is entitled to redeem the same. In all redemptions of land from tax sales, the party securing the redemption shall pay all costs and fees as herein provided for due to officers and a fee of $.50 to the judge of probate for his or her services in the matter of redemption. This application and payment may be executed by an on-line transaction via the Internet or other on-line provision. (2) The reimbursement to the purchaser from the proposed redemptioner for allowable improvements and insurance premiums as provided in subsections (b) through (e) is not required for the proposed redemptioner to take possession of the property; provided however, that the proposed redemptioner shall reimburse the purchaser for such costs prior to January 1 of the subsequent tax year in order to complete the redemption process as provided in this subsection. Failure of the proposed redemptioner to reimburse the purchaser for such costs prior to January 1 of the subsequent tax year shall forfeit the right of the proposed redemptioner in the property. (b) With respect to property located within an urban renewal or urban redevelopment project area designated pursuant to Chapters 2 or 3 of Title 24, the proposed redemptioner must pay to the purchaser or his or her transferee, in addition to any other requirements set forth in this section, the amounts set forth below: (1) All insurance premiums paid or owed by the purchaser for casualty loss coverage on insurable structures with interest on the payments at eight percent per annum. (2) The value of all permanent improvements made on the property determined in accordance with this section with interest on the value at eight percent per annum. (c) With respect to property which contains a residential structure at the time of the sale regardless of its location, the proposed redemptioner must pay to the purchaser or his or her transferee, in addition to any other requirements set forth in this section, the amounts set forth below: (1) All insurance premiums paid or owed by the purchaser for casualty loss coverage on the residential structure with interest on the payments at eight percent per annum. (2) The value of all preservation improvements made on the property determined in accordance with this section with interest on the value at eight percent per annum. (d) As used herein, “permanent improvements” shall include, but not be limited to, all repairs, improvements, and equipment attached to the property as fixtures. As used herein, “preservation improvements” shall mean improvements made to preserve the property by properly keeping it in repair for its proper and reasonable use, having due regard for the kind and character of the property at the time of sale. The proposed redemptioner shall make written demand upon the purchaser of a statement of the value of all permanent or preservation improvements as applicable made on the property since the tax sale. In response to written demand made pursuant to this subsection, within 10 days from the receipt of such demand, the purchaser shall furnish the proposed redemptioner with the amount claimed as the value of such permanent or preservation improvements as applicable; and within 10 days after receipt of such response, the proposed redemptioner either shall accept the value so stated by the purchaser or, disagreeing therewith, shall appoint a referee to ascertain the value of such permanent or preservation improvements as applicable. The proposed redemptioner shall in writing (i) notify the purchaser of his or her disagreement as to the value; and (ii) inform the purchaser of the name of the referee appointed by him or her. Within 10 days after the receipt of such notice, the purchaser shall appoint a referee to ascertain the value of the permanent or preservation improvements as applicable and advise the proposed redemptioner of the name of the appointee. Within 10 days after the purchaser has appointed his or her referee, the two referees shall meet and confer upon the award to be made by them. If they cannot agree, the referees shall at once appoint an umpire, and the award by a majority of such body shall be made within 10 days after the appointment of the umpire and shall be final between the parties. (e) If the proposed redemptioner fails or refuses to nominate a referee as provided in subsection (d), he or she must pay the value put upon the improvements by the purchaser. If the purchaser refuses or fails to appoint a referee, as provided in subsection (d), the purchaser shall forfeit his or her claim to compensation for such improvements. The failure of the referees or either of them to act or to appoint an umpire shall not operate to impair or forfeit the right of either the proposed redemptioner or the purchaser in the premises and in the event of failure without fault of the parties to affect an award, the appropriate court shall proceed to ascertain the true value of such permanent or preservation improvements as applicable and enforce the redemption accordingly. (Acts 1935, No. 194, p. 256; Code 1940, T. 51, §305; Acts 1988, 1st Ex. Sess., No. 88-824, p. 265, §15; Act 2002-426, p. 1094, §1; Act 2009-508, p. 937, §1; Act 2018-494, §1.)

Ala. Code § 40-10-123 Redeeming Lots and Parcels Without Redeeming Entire Property - When Authorized.

40-10-123. Redeeming Lots and Parcels Without Redeeming Entire Property - When Authorized. When distinct lots or parcels of land have been included in one assessment and sold for taxes under one decree, any person, including the owner, whose interest in one or more of such lots or parcels is such as to entitle him to redeem may redeem the lots or parcels in which he has such interest without redeeming all of said property; provided, that any owners desiring to redeem any one or more parcels of land must also pay all tax on personal property assessed against him in said assessment, together with all costs of court and advertising fees. (Acts 1935, No. 194, p. 256; Code 1940, T. 51, §306.)

Ala. Code § 40-10-124 Redeeming Lots and Parcels Without Redeeming Entire Property - Lots or Parcels Which Can Be Ascertained by Legal and Usual Subdivision.

40-10-124. Redeeming Lots and Parcels Without Redeeming Entire Property - Lots or Parcels Which Can Be Ascertained by Legal and Usual Subdivision. When any tracts, lots, or parcels of land have been included in one assessment and sold for taxes under one decree, the owner or any one entitled to redeem may redeem any lot or part of said property where the part to be redeemed can be ascertained by legal and usual subdivision. It shall be the duty of the tax assessor to ascertain the amount of taxes on such portion desired to be redeemed as provided for under Section 40-10-121. (Acts 1935, No. 194, p. 256; Code 1940, T. 51, §307.)

Ala. Code § 40-10-125 Redeeming Lots and Parcels Without Redeeming Entire Property - How Redeemed.

40-10-125. Redeeming Lots and Parcels Without Redeeming Entire Property - How Redeemed. A person desiring to redeem any separate lot or parcel of land as authorized by Section 40-10-124 must file with the judge of probate an application in writing, under oath, setting forth the date of the decree, the name of the defaulting taxpayer against whom the same was rendered, the description and character of each lot or parcel of land included in the decree and the assessed value thereof, if separately valued in the assessment or, if not separately valued, stating that fact and stating the assessed value of the whole of the lands, a description of the lot or parcel which the applicant seeks to redeem and, if not separately valued in the assessment, stating the value thereof at the time of the assessment and the nature of his interest in such lot or parcel; and such applicant must deposit with the judge of probate a sum of money which bears the same proportion to the amount of taxes, interest, and costs which would be required to redeem all the lands included in the decree, that the value of such lot or parcel, as separately assessed or, if not separately assessed, as ascertained by the judge of probate, bears to the value of the whole of the lands included in the decree; and, in addition thereto, such applicant must deposit the amount of proportionate costs and officers’ fees which may have accrued upon such assessment and sale. (Acts 1935, No. 194, p. 256; Code 1940, T. 51, §308.)

Ala. Code § 40-10-126 Redeeming Lots and Parcels Without Redeeming Entire Property - Duty of Land Commissioner on Redemption.

40-10-126. Redeeming Lots and Parcels Without Redeeming Entire Property - Duty of Land Commissioner on Redemption. The judge of probate must, before allowing the redemption of a separate lot or parcel of land under Sections 40-10-124 and 40-10-125, submit the application, together with a copy of the statement of calculation ascertaining the amount to be paid on such redemption, to the Land Commissioner for his approval, and the Land Commissioner may call upon the judge of probate, the assessor, or the collector for any information he may desire touching the application. If the Land Commissioner is satisfied that the applicant is entitled to redeem such lot or parcel of land and that the proper amount of money has been deposited with the judge of probate, the Land Commissioner shall endorse his approval upon the application and return the same to the judge of probate, who must allow the redemption; but without the approval of the Land Commissioner, the judge of probate must not allow the redemption and must return to the applicant the money deposited by him for that purpose, when such application is made within the time allowed by law for redemption the same may be perfected as herein provided, notwithstanding the expiration of such limitations; where the land sought to be redeemed has been purchased by an individual and not by the state, it shall not be necessary to submit the matter to the Land Commissioner. (Acts 1935, No. 194, p. 256; Code 1940, T. 51, §309.)

Ala. Code § 40-10-127 Issuance of Certificates of Redemption.

40-10-127. Issuance of Certificates of Redemption. Upon the payment of the amount required by law for the redemption of the lands sold for taxes by a person entitled to redeem, the judge of probate, or official who performs the same function, shall issue that person a certificate of redemption describing the lands, setting forth the facts of the sale substantially as contained in the certificate of purchase, the date of redemption, the amount paid, by whom the lands were redeemed, and make the proper entries in the book of sales in his or her office and immediately give notice of the redemption to the county treasurer or custodian of the county funds. The judge of probate, or official who performs the same functions, shall sign the certificate. Unless signed, no certificate shall be held as evidence of redemption, and it shall be the duty of the judge of probate, or official who performs the same functions, to keep a book of certificates of redemption, and every blank shall have a stub attached thereto, on which shall be printed the matter as the Land Commissioner may prescribe, with appropriate blank spaces to be filled by the judge of probate, or official who performs the same functions, upon the issuance of any certificates of redemption. The Land Commissioner shall take and file in his or her office a proper receipt from the judge of probate, or official who performs the same functions, for the certificates of redemption furnished him or her. If the lands were bid in by the state, the person redeeming shall present to the Land Commissioner the certificates of redemption, and the Land Commissioner shall give to the person a certificate releasing all claims to the land acquired by the state at the tax sale. (Acts 1935, No. 194, p. 256; Code 1940, T. 51, §310; Acts 1993, No. 93-717, p. 1402, §1.)

Ala. Code § 40-10-128 Deposit of Redemption Money - Generally.

40-10-128. Deposit of Redemption Money - Generally. If the lands redeemed were bid in by any person other than the state, the redemption money must be deposited by the judge of probate in the county treasury and there kept separate and apart from the general funds of the county, and the judge of probate shall notify the purchaser of such deposit by mailing notice to the residence or place of business of such purchaser, or to such address as the purchaser may furnish the judge of probate at the time he secures his certificate of purchase; and, upon the demand of the purchaser, his legal representative or assignee and the surrender of the certificate of purchase, the judge of probate must give him an order on the treasury for the same. (Acts 1935, No. 194, p. 256; Code 1940, T. 51, §311.)

Ala. Code § 40-10-129 Deposit of Redemption Money - Lands Bid in by State.

40-10-129. Deposit of Redemption Money - Lands Bid in by State. When lands which have been bid in by the state are redeemed, the judge of probate must immediately pay over to the tax collector of the county the entire amount of money received by such judge of probate on such redemption. The tax collector shall pay over to the proper authorities the fees of such officers that accrued in the sale and shall determine the proportionate amounts of the redemption money belonging to the state, including advertising fees, and the amounts of such redemption money belonging to the county and to the school fund and to any municipality and to each holder of a tax lien certificate. The tax collector shall monthly, by the tenth day of the month next after the month in which the redemption was made, pay over such proportions to the proper authorities, respectively, after deducting therefrom the commissions allowed by law to tax collectors for collecting taxes; and he shall certify to the Land Commissioner and to the county treasurer, upon blanks to be furnished by the state Comptroller, a full descriptive statement of all real estate bid in by the state and redeemed, showing separately the amount of state, county, municipal and school taxes and tax lien certificates and penalties and costs embraced in and covered by the redemption so reported. At the end of any month during which no land has been redeemed, the judge of probate shall report that fact to the Land Commissioner and to the tax collector. (Acts 1935, No. 194, p. 256; Acts 1936, Ex. Sess., No. 125, p. 83; Code 1940, T. 51, §312; Acts 1943, No. 579, p. 582; Acts 1995, No. 95-408, p. 864, §2.)

Ala. Code § 40-10-130 Duty of Judge of Probate on Redemption of Land Bid in by State.

40-10-130. Duty of Judge of Probate on Redemption of Land Bid in by State. Within five days from the redemption of any real estate bid in by the state, the judge of probate shall notify the tax assessor and tax collector of his county thereof and shall, on demand, pay to them the costs and fees to which they are respectively entitled, and the assessor shall enter such real estate and the name of the person redeeming the same on an appropriate list to be kept by him for assessment. (Acts 1935, No. 194, p. 256; Code 1940, T. 51, §313.)

Ala. Code § 40-10-131 Rents, Issues, and Profits of Redeemed Land.

40-10-131. Rents, Issues, and Profits of Redeemed Land. Neither the purchaser, nor anyone claiming under him, who may have lawfully obtained possession of any real estate purchased at tax sales shall be liable upon the redemption of such real estate to account to the owner for any rents, issues, or profits during such possession, but as to such rents, issues, and profits he shall be held and considered the rightful owner of such real estate unless such owner at the time of the sale was a minor or a person of unsound mind and had no guardian, or his guardian was not lawfully served with notice of the proceedings had in the court of probate for the sale of such real estate, in which event such purchaser or other person in possession shall be liable for rents, issues, and profits, as in other cases; but neither such purchaser nor anyone claiming under him shall have the right to cut standing timber from land so purchased at tax sales, nor shall have the right to remove or destroy any improvements on said property or commit waste until he shall have received a deed for the land from the probate judge, and anyone in possession shall have the right to growing crops planted by him. (Acts 1935, No. 194, p. 256; Code 1940, T. 51, §314.)

Ala. Code § 40-10-132 List and Sale of Bid in Lands Owned by the State.

40-10-132. List and Sale of Bid in Lands Owned by the State. (a) The Land Commissioner shall maintain a listing of all the lands that have been bid in for the state, which shall include the following: (1) A legal description of the property, as it appears on the certificate of purchase provided to the state as required by Section 40-10-20. (2) The amount of state and county taxes due. (3) The date when the property was bid in for the state. (b) After three years from the date of the sale, any portions of property that have not been redeemed shall be subject to sale by the state. The Land Commissioner may sell the property in any of the following ways: (1) Sell the property at private sale to any purchaser, who may pay in cash to the Treasurer such sum of money as the Land Commissioner ascertains to be sufficient to cover and satisfy all claims of the state and county, which sum shall not be less than the amount of money for which the lands were bid in by the state, with interest thereon at the rate of 12 percent per annum from the date of sale, together with the amount of all taxes due on the lands since date of sale, with interest thereon at the rate of 12 percent per annum from the maturity of such taxes. (2) If the lands are within a municipal boundary, sell the property to the municipality or other nonprofit or governmental entity as the municipality may designate, at the best price offered, irrespective of the amount of taxes and interest due. (3) If the property is not within a municipal boundary, sell the property to the county in which the lands are situated or other entity as the county may designate, at the best price offered, irrespective of the amount of taxes and interest due. (4) Sell the property to such other entity created jointly by the municipality and the county in which the lands are situated as much as may be authorized by state law, at the best price offered, irrespective of the amount of taxes and interest due. (5) Sell the property to a land bank authority created as authorized by Chapter 9, Title 24, for no consideration, irrespective of the amount of taxes and interest due. (c) If the property has not been redeemed or sold by the state within five years from the date of the sale, the property may be sold by the Land Commissioner by online public auction as provided in Section 40-10-134, irrespective of the amount of taxes and interest due. (Acts 1935, No. 194, p. 256; Code 1940, T. 51, §315; Acts 1988, 1st Ex. Sess., No. 88-824, p. 265, §16; Act 2002-426, p. 1094, §1; Act 2013-249, p. 610, §1; Act 2024-83, §1.)

Ala. Code § 40-10-133 Notice to Former Owner of Application to Purchase Land Bid in by State.

40-10-133. Notice to Former Owner of Application to Purchase Land Bid in by State. When application is made to the Land Commissioner by any person to purchase lands in which such person had no interest, the Land Commissioner shall mail a notice in writing to the owner, or some person having an interest in such land, if his place of residence is known, or, if not known, then to the judge of probate of the county in which such lands are situated, informing him that such application has been made and fixing a reasonable time within which such owner or such other person having an interest in the lands may redeem the same. The judge of probate shall cause the notice to be posted at the courthouse, and he shall mail a copy of said notice to the owner, if known to him; and if such lands are not redeemed within the time so fixed, the same shall be sold to the applicant or any other person desiring to purchase the same without other or further notice to such owner or persons having an interest in the lands. If such lands are redeemed within the time so fixed, the judge of probate must, without delay, report the same to the Land Commissioner and pay over the redemption money as required by law. (Acts 1935, No. 194, p. 256; Code 1940, T. 51, §316.)

Ala. Code § 40-10-134 Manner of Sale of Bid in Lands Owned by State.

40-10-134. Manner of Sale of Bid in Lands Owned by State. (a) Commencing January 1, 2025, and subject to subsections (b) through (f), the Land Commissioner may sell lands by online public auction when those lands have been sold for taxes and bought in for the State of Alabama; have not been redeemed or sold by the state; and a period of five years has elapsed from the date of sale to the state. The sale of the property by online public auction shall be subject to the provisions of subsections (b) through (e) and shall be for the best price obtainable, irrespective of the amount of taxes and interest due. (b) When selling lands by public auction, the Land Commissioner shall contract with a nationally recognized auction company to sell at public auction the state’s tax interest on any lands sold for nonpayment of taxes and bought in for the State of Alabama which meet the following requirements: (1) The property has been bid in for the state for at least five years. (2) The land has not been redeemed. (3) The state has not sold or assigned its tax interest in the land. (4) There is no active price quote on the land. The term “active price quote” means a statement that has been issued to an applicant which provides the amount necessary to purchase the state’s tax interest in the land, and the applicant is still within the period of time stated in the price quote to accept and submit payment. (c) The contract with the auction company shall provide that the fee to the auction company shall be a contingency fee with all expenses borne by the company. The expenses shall include, but are not limited to, the costs of advertising as provided in subsection (e). The contingency fee shall not exceed 15 percent of the total amount of each successful bid at auction and shall be added as a premium to the total amount of each successful bid at auction. (d) When the Land Commissioner contracts with an auction company pursuant to subsection (b), he or she shall notify the owners of record, or persons having interest in the lands, that the state’s tax lien interest on the property will be sold at auction and the date upon which this is scheduled to occur. Notification shall be achieved by means of publication on the Department of Revenue’s website for a period of not less than 30 days prior to the auction. The publication shall include the date and time of the auction and a listing of the properties that are scheduled to be auctioned. Due to certain factors including, but not limited to, sales, redemptions, cancellations, or open price quotes occurring between the time of initial publication and the time of auction, the list may be amended as necessary throughout the publication period. Amending the list for these reasons shall not restart the 30-day publication period, nor shall it invalidate the actions of the Land Commissioner in complying with this subsection. (e) The auction company, as part of its contracted responsibilities, shall advertise the auction. In its advertisement, the auction company shall make a prominent statement that purchasers will not receive clear title to any land sold at auction, and further, that they are bidding on the tax lien interest on lands held by the state for nonpayment of taxes which may have additional liens. The auction company and its agents shall not be liable for damages resulting from conducting the auction. (f) Any provision of law to the contrary notwithstanding, the Department of Revenue shall distribute the funds derived from this section as follows: (1) For properties in which the current assessment includes state, county, and municipal taxes, the total amount received shall be divided into three equal shares. One share shall be disbursed to the State General Fund, one share disbursed to the county general fund, and one share disbursed to the municipality. (2) For properties in which the current assessment includes only state and county taxes, the total amount received shall be divided into two equal shares. One share shall be disbursed to the State General Fund, and one share disbursed to the county general fund. (Acts 1935, No. 194, p. 256; Code 1940, T. 51, §317; Acts 1995, No. 95-408, p. 864, §2; Act 2024-83, §1.)

Ala. Code § 40-10-135 Deed of State on Sale of Land Bid in by State.

40-10-135. Deed of State on Sale of Land Bid in by State. When lands have been sold by the state, as provided in Sections 40-10-132 and 40-10-134, and the purchase money has been paid, the Land Commissioner, in behalf of the state, shall execute to the purchaser a deed, duly acknowledged, without warranty or covenant of any kind on the part of the state, express or implied, conveying to him all the right, title, and interest of the state in and to the lands purchased by him; and such purchaser shall thereafter have all the right, title, and interest of the state in and to such lands and shall be held and treated as the assignee of all the taxes due upon such lands, or for which they were sold, and the penalties and all of the taxes that should have been under the law assessed upon the same, if they had been the property of a private citizen of the state, and he shall be clothed with all the rights, liens, powers, and remedies, whether as a plaintiff or defendant, respecting said lands as an individual purchaser at the tax collector’s sale would have in similar circumstances; and all such liens and charges as the state had before such sale by the Land Commissioner shall be enforced in favor of such purchaser from him, as under the provisions of law relating to individual purchasers at sales by the tax collector, such purchaser, on failure of his title, shall have his lien and charges assessed by the court or by a jury and may foreclose the same by proceeding at law in such suit. (Acts 1935, No. 194, p. 256; Code 1940, T. 51, §318.)

Ala. Code § 40-10-136 Certification When Land Bid in by State Sold.

40-10-136. Certification When Land Bid in by State Sold. Upon the consummation of such sale, the Land Commissioner must certify the same to the judge of probate, who shall make entry thereof in the book of land sales in his office; and the commissioner shall furnish a description of such lands to the assessor of the county in which they are situated, who shall enter the same upon his list for assessment; but the time allowed infants and lunatics in which to redeem lands sold for taxes shall in no wise be affected by any such sale and conveyance. (Acts 1935, No. 194, p. 256; Code 1940, T. 51, §319.)

Ala. Code § 40-10-137 Conveyance to Department of Conservation and Natural Resources of Land Bid in by State - Procedure.

40-10-137. Conveyance to Department of Conservation and Natural Resources of Land Bid in by State - Procedure. Any lands which have been bid in by the state at tax sale shall, after three years have elapsed from the date of sale to the state and no person having any interest therein having redeemed same from tax sale, be subject to conveyance to the Department of Conservation and Natural Resources in the manner hereinafter provided: (1) Whenever the Department of Conservation and Natural Resources shall determine any lands which have been bid in by the state at tax sale and the title to which has not passed out of the state, to be suitable or desirable for the use of the said Department of Conservation and Natural Resources, either for the purpose of being used as a state park, state forest, or for the purpose of exchange for other lands of equal value, which are determined to be suitable for said purposes, or for any other use or disposition which the Department of Conservation and Natural Resources may hereafter be authorized by law to make of such lands, the Department of Conservation and Natural Resources shall file with the Land Commissioner a written application, signed by the Commissioner of the Department of Conservation and Natural Resources on a form to be prescribed by the Land Commissioner, giving such information as may be required by the Land Commissioner. (2) When application is made to the Land Commissioner for the conveyance of any lands to the Department of Conservation and Natural Resources, the Land Commissioner shall mail a notice in writing to the owner, or some person having an interest in such land, if his place of residence is known to the Land Commissioner, and also to the judge of probate of the county in which such lands are situated, informing the owner or other persons having an interest in such land that such application has been made and informing him that he shall have 30 days from the date of said notice within which to redeem said lands, and the judge of probate shall cause the notice to be posted at the courthouse, and he shall mail a copy of said notice to the owner, if known to him; and if such lands are not redeemed within the time so fixed, the same shall, upon approval of the Governor, be conveyed to the Department of Conservation and Natural Resources, without other or further notice to such owner or persons having an interest in the lands. If such lands are redeemed within the time so fixed, the judge of probate must, without delay, report the same to the Land Commissioner and pay over the redemption money as required by law. (Acts 1935, No. 194, p. 256; Code 1940, T. 51, §320.)

Ala. Code § 40-10-138 Conveyance to Department of Conservation and Natural Resources of Land Bid in by State - Deed to Department.

40-10-138. Conveyance to Department of Conservation and Natural Resources of Land Bid in by State - Deed to Department. When lands are required to be conveyed to the Department of Conservation and Natural Resources, as hereinabove provided, the Land Commissioner, in behalf of the state, with the approval of the Governor, shall execute to the Department of Conservation and Natural Resources, a deed, duly acknowledged, without warranty or covenant of any kind on the part of the state, express or implied, conveying to the said Department of Conservation and Natural Resources all the right, title, and interest of the state in and to the lands so conveyed. The Department of Conservation and Natural Resources shall thereafter have all the right, title, and interest of the state in and to such lands and shall be held and treated as the assignee of all the taxes due upon such lands or for which they were sold and the penalties and all of the taxes that should have been under the law assessed upon the same, if they had been the property of a private citizen of the state, and it shall be clothed with all the rights, liens, powers, and remedies, whether as a plaintiff or defendant, respecting said lands as an individual purchaser at the tax collector’s sale would have in similar circumstances, and all such liens and charges as the state had before such conveyance by the Land Commissioner shall be enforced in favor of the Department of Conservation and Natural Resources as under the provisions of law relating to individual purchasers at sales by the tax collector. The Department of Conservation and Natural Resources, on failure of its title, shall have its lien and charges assessed by the courts or by a jury and may foreclose the same by proceeding at law in such action. (Acts 1935, No. 194, p. 256; Code 1940, T. 51, §321.)

Ala. Code § 40-10-139 Conveyance to Department of Conservation and Natural Resources of Land Bid in by State - Notice to Former Owner of Intended Conveyance.

40-10-139. Conveyance to Department of Conservation and Natural Resources of Land Bid in by State - Notice to Former Owner of Intended Conveyance. Whenever it is determined by the Land Commissioner that it is to the best interest of the state to convey to the Department of Conservation and Natural Resources the title of any lands which have been bid in at tax sale and which remain unredeemed, he may, on his own motion and without application being filed by the Department of Conservation and Natural Resources, issue notice to the former owner or some person having an interest in such land, in the same manner as heretofore provided for in cases where application for conveyance has been filed by the Department of Conservation and Natural Resources; and, if such lands are not redeemed within the time so fixed, the same shall, upon approval of the Governor, be conveyed to the Department of Conservation and Natural Resources in the same manner as if application for such conveyance had been filed by the Department of Conservation and Natural Resources. (Acts 1935, No. 194, p. 256; Code 1940, T. 51, §322.)

Ala. Code § 40-10-140 Certification of Sale of Lands Bid in for State.

40-10-140. Certification of Sale of Lands Bid in for State. When lands bid in by the state have been sold by the state under any of the provisions of this chapter, the Land Commissioner shall certify to the Comptroller the amount, and the Comptroller shall draw his warrant on the Treasurer in favor of the judge of probate of the county in which the lands lie for the county and school taxes and the fees and costs due to the different officers of the county, specifying each separately; and, if the same cannot be ascertained from the records and papers in his office, the judge of probate, on notice by the Land Commissioner of such redemption or sale, must certify the same to him, and the judge of probate, upon the collection of such warrant, shall pay the same over to the officers entitled thereto or authorized by law to receive the same. (Acts 1935, No. 194, p. 256; Code 1940, T. 51, §323.)

Ala. Code § 40-10-141 Lien and Sale of Property for Unpaid Installments of Taxes - Procedure.

40-10-141. Lien and Sale of Property for Unpaid Installments of Taxes - Procedure. The State of Alabama shall have a lien for all unpaid partial payments as well as for taxes for any subsequent year, and in case of the failure to pay any one of said installments together with the taxes for any subsequent year, either or both, the Land Commissioner for and in the name of the State of Alabama shall at his option declare all said installments due and payable at once. In case of default in payment of any installment or of any subsequent taxes, the Land Commissioner in the name of the state shall have a right to file a complaint to foreclose the lien of the state, and in such suit all parties at interest shall be made parties defendant. Such suit shall be filed in the county where the land or the major portion thereof is situated. The court shall determine what amount, if any, of such taxes or installments are illegal, and in its final judgment shall determine the total amount due on such installment payments and any unpaid subsequent taxes and shall render judgment therefor which shall include costs and shall order the property sold to satisfy the judgment in the same manner as in the foreclosure of mortgages on real estate. If at such sale no one bids a sufficient sum to pay the full amount of the judgment, the officer conducting the sale shall announce that the real estate is sold to the State of Alabama for the amount of the judgment, interest, and costs, and the sale shall be reported to the court and be confirmed and a deed made to the State of Alabama, and the state shall be entitled to a writ of possession. The purchaser at such sale, including the state, shall be entitled to a deed and the same processes and remedies to obtain possession of the premises as in other suits where land is sold under order of a court, and the title to the land conveyed by such deed shall be indefeasible as to all parties defendant in the action. (Acts 1935, No. 194, p. 256; Code 1940, T. 51, §325.)

Ala. Code § 40-10-142 Lien and Sale of Property for Unpaid Installments of Taxes - Disposition of Money.

40-10-142. Lien and Sale of Property for Unpaid Installments of Taxes - Disposition of Money. All moneys arising from such sale shall be applied first to the reimbursement to the state of any amount paid for costs, fees, and expenses incurred in such suit, and the remainder shall be divided between the state and the various taxing subdivisions in the manner provided by law. (Acts 1935, No. 194, p. 256; Code 1940, T. 51, §326.)

Ala. Code § 40-10-143 Lien of Persons Other Than Holders of Legal Title for Expenses of Redemption.

40-10-143. Lien of Persons Other Than Holders of Legal Title for Expenses of Redemption. Any mortgagee, lienholder, or other creditor, or any person having an interest but not the legal title shall have a lien on the lands for the amount expended by him in effecting a redemption; and, if such redemption is by a tenant in common, he shall have a lien on the interest of his cotenant. (Acts 1935, No. 194, p. 256; Code 1940, T. 51, §327.)

Source: Alabama Legislature (alison.legislature.state.al.us)URL: https://alison.legislature.state.al.us/code-of-alabamaFetched: 10/20/2026