Alabama Lawyer Magazine: Money for Nothing: Who Is Entitled to the Excess Paid at a Tax Sale?

November 27, 2012

Section 40-10-28 of the Alabama Code, which is part of the statutory framework governing real property tax sales, addresses who is entitled to excess funds paid by a purchaser at an ad valorem tax sale.

According to the Association of County Commissioners of Alabama, section 40-10-28 is “[o]ne of the most confusing statutes in Alabama law.”1 Indeed, the application of section 40-10-28 has been the focus of numerous lawsuits in recent years.

What Is an Excess?

When taxes are not paid on real property, the probate court in the county where the property is located can order the sale of the property to satisfy the tax obligation.2Pursuant to procedures identified in sections 40-10-1 through -31 of the Alabama Code, Alabama county officials offer for sale by public auction thousands of tax-delinquent real properties every year, with the properties being sold to the highest bidder. The “excess” discussed in this article is the amount paid for a tax-delinquent property that exceeds the minimum bid requirement. The minimum bid is the total of the unpaid taxes, accrued interest and sale-related costs. Following the tax sale, the minimum bid portion of the amount paid by the purchaser is distributed to the various taxing authorities entitled to the taxes. The “excess” portion of the bid is held by the county treasurer to be distributed pursuant to section 40-10-28.

To read more about this topic, please see full article below

Download PDF


Legal Disclaimer:
No representation is made that the quality of services to be performed is greater than the quality of legal services performed by other lawyers.

Featured Attorneys

send article

TESTIMONIALS

  • “Melinda Sellers has provided a high level of service to our company. She provides thorough research, high level of organization to any matter, and persuasive legal writing. She has a bright legal career ahead of her.”

    -Chambers 2012

  • “As a banker working out troubled loans, I really appreciated Keith's ability to help me with my legal issues, but I really valued his ability to help me understand the full spectrum of responses available to me as well as describe the pros and cons of each option. Keith's value as an attorney is amazing, but is far surpassed by his ability as a trusted advisor.”

    -Rebecca York, Mercantile Bank

  • “Lauren is smart, professional in word and manner, and quite intuitive in analyzing situations. She thinks through and researches issues before proposing solutions. One of her best qualities is that of keeping her client(s) focused on the defined goals for settling the problems at hand using her cheerful personality.  It is indeed a pleasure working with Lauren."

    -Claire Johnson

  • “A very solid and very quiet lawyer, unassuming but good. He’s on my shortlist of people to send work to…"

    -Chambers 2012

  • “Melinda's representation, performance, and knowledge for me personally and for my company is unquestionably the ‘top of the line’.  She is prompt, thorough, and responsive.  She has my total trust.”

    -J. P. Lamb, L & A Trucking Co., Inc.