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How Do You Protest a Tax Sale Redemption

Posted by 15789465 on

One of my readers has asked me to throw out this question to the general population. In light of the recent Alabama Supreme Court case of Ross v. Rosen-Rager (see earlier post in this category if you do not know about this case), how does a tax sale purchaser ensure payment for preservation improvements and/or insurance premiums? The Supreme Court case says the investor should somehow, through the courts, attack the validity or legitimacy or issuance of the Redemption Certificate. That is the paper the owner receives when they pay the Probate Judge for the tax sale auction purchase price, plus all intervening taxes, plus 12% interest.  The redeeming party is not required to pay the value of preservation improvements, nor insurance premiums, in order to receive a Redemption Certificate. What do you think the investor should do in this situation?

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12 comments

  • Correction: The new owner paid the original owner $5000. to sign the quick claim deed.

    Delora Pate on
  • The person with a tax deed should expect to pay all expenses on the property and collect all of the benifits such as rents. When the original owner decides he wants his property back then he signs a quick claim deed. Funds may be paid for the signing of a quick claim deed.
    In a case I had 3 years ago, a $5000. fee was paid to the person signing the quick claim deed. This seems fair to me.

    Delora Pate on
  • issue of jurisdiction of circuit court to issue writ of mandamus to probate judge ordering probate judge to issue recordable order to vacate a certificate of redemption issued when the proposed redemptioner has failed to pay for improvements and insurance

    the current issue is not a question of the validity of the relief
    the current issue is a question of which court has jurisdiction – circuit or supreme
    do all these contest have to be filed in the supreme court

    in the rosen-rager case the supreme court opinion referred to section 12-22-20 for the proposition that the writ could be issued by a circuit court

    in the current cases ruled on by the circuit courts of madison county the probate judge has successfully moved for dismissal by asserting that the circuit court only has jurisdiction to issue the writ for probate matters over which it has jurisdiction to hear appeals – and further asserting that those matters that can be appealed to circuit court are the 7 enumerated by section 12-22-21 as follows:

    Appeal from the order, judgment or decree of the probate court may be taken by the party aggrieved to the circuit court or Supreme Court in the cases hereinafter specified. Appeals to the Supreme Court shall be governed by the Alabama Rules of Appellate Procedure, including the time for taking an appeal. Appeal to the circuit court in such cases shall be within the time hereinafter specified:
    (1) From the decree, judgment or order on a contest as to the validity of a will, to be taken within 42 days after the determination of the contest;
    (2) From the decree, judgment or order on an application claiming the right to execute a will or administer an estate, to be taken within 42 days after the hearing and decision of such application, unless the application was denied because the applicant was deemed unfit to serve by reason of a conviction of an infamous crime or by reason of improvidence, intemperance or want of understanding, in which case the appeal must be taken within seven days from the denial of the application;
    (3) Upon any decree, judgment or order removing an executor or administrator, in which case the appeal must be taken within seven days after such decree, judgment or order;
    (4) By a legatee or person entitled to distribution, on the decision of the court, in proceedings instituted to compel the payment of a legacy or distributive share, at any time within 42 days after such decision;
    (5) After a final settlement, upon any order, judgment or decree, made on such settlement, or respecting any item or matter thereof, or any previous settlement or item, or matter thereof, within 42 days thereafter;
    (6) Upon any issue as to the insolvency of an estate and upon any issue as to an allowance of any claim against insolvent estates, in which cases the appeal must be taken within 42 days after the determination of such issue; and
    (7) On an application for a division or partition of real or personal property, in which case the
    appeal must be taken within 42 days, and the decree, judgment or order may be stayed upon the execution, within 14 days, of a supersedeas bond, payable to the appellee, in an amount and upon condition to be prescribed by the probate judge, such stay of execution to continue until the appeal is decided.

    THEREFORE, the madison county circuit court won’t hear the petition for mandamus to the probate judge because the petition must be filed directly with the supreme court

    not being a lawyer and knowing very little about probate matters, i thought that section 12-22-21 was for appeal of non-final orders which require special statutory permission to be appealable (i thought that absent statutory authority, interlocutory orders could be reviewed by a special writ if it met the criteria for the writ)

    are probate matters other than the lucky 7 appealable to circuit court under the unified judicial system?

    the probate judge 2 recent cases supporting his contention that appeal/petition must be to the supreme court

    1. Ex Parte Jim Walter Resources, Inc., 91 So.3d 50 (Ala.2012) (a probate judge – hardy mccolums again – was mandated by supreme court to waive recording fees/taxes for certain documents for the probate record room – this seems more like original jurisdiction rather than appeal, but the supreme court opinion cited the 2. case – the matter of jurisdiction doesn’t appear to have been argued by the parties, but jurisdiction doesn’t
    can be considered without argument – does this make it dicta?)

    2. Oliver v. Shealey, 67 So.3d 73 (Ala. 2011)

    what about venues like morgan co where the revenue commissioner issue tax-sale certificates of redemption pursuant to section 40-10-127 which gives the authority to “other official[s]” can i petition circuit court for mandamus to the the revenue commissioner or tax collector in those other counties?

    hope i not rambling but what’s a disgruntled tax-sale purchaser to do? would like to know if any probate specialists have any ideas.

    howie on
  • in order to keep my right of possession pursuant to ala code 40-10-74 and protect my security for redemption reimbursements, i have filed 7 petitions against the probate judge last year to vacate 7 certificates of redemption that were issued for properties for which i have not been reimbursed for improvements and insurance (pursuant to rosen-rager). the first ruling by madison co judge pate has just been entered

    Because certificates of redemption are not issued as part of a probate case, there is no right to appeal. Therefore, in order to comply with the Supreme Court ruling, Ross has since filed 7 petitions for mandamus with the circuit court that direct the probate judge vacate 7 redemptions from tax sale and issue and record appropriate documentation to nullify the previously issued certificates of redemption until Ross is reimbursed pursuant to law. The defendant probate judge is represented by the same attorney that represented Rosen_Rager as appellee on that case’s appeal. That attorney has moved to dismiss Ross’s petitions, claiming that the circuit court should not issue the writ because the probate judge does not collect payments for improvements and insurance. In the first case to be heard, Madison County Circuit 47CV12-585, the trial court entered an order granting the probate judge his motion to dismiss, The trial court went on to say

    “It was agreed by the Court and counsel that there exists no clear answer to the issue presented by defendant’s motion, i.e. whether the costs of improvements are costs that must be paid before a certificate of redemption may be issued by the Probate Judge. The Court concludes the better approach is to conclude that said costs are not so included, and that defendant’s motion is therefore due to be granted.”
    howie on
  • Sorry for being fuzzy. A buyer (contractor) bought a lot at a tax sale and received a tax deed. The contractor actually built a house on the lot for himself to live in and he obtained a loan at a bank for $25,000. He then wanted to sell the house. A title policy was ordered and this showed a cloud on the title because of the tax deed. The contractor contacted an attorney and the attorney contacted the person who lost the lot because he did not pay his taxes. That person signed a quick claim deed and the contractor paid $5000.
    The property sold several months later because the property now had clear title.

    Delora Pate on

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