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

  • “I think a lot of him. He is reasonable and logical. He is very good at getting the deal done and doing so in a collaborative way as opposed to adversarial. I always refer to him and believe he will take care of the client.”

    -Chambers 2012

  • “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

  • “Melinda Sellers has become the valued resource for us when we need guidance regarding a broad range of matters, whether related to HOA legal issues or general corporate matters.  She quickly understands the nuances and potential end results of actions in complicated situations.  Her timely responses and incisive comments and well-reasoned opinions have guided us through many complex issues.  I always want Melinda backing me up. Additionally, she is an absolute pleasure to work with and I look forward to having a long professional and personal relationship with her.”

    -Elbert W. G. Boothby, CPM®, CCIM®, CMCA®, AMS®, PCAM®, President and CEO, Boothby Realty, Inc.

  • “They are cost effective without sacrificing any service points.”

    -Chambers 2012

  • “I have utilized Burr and Forman for over 10 years. Amy is very responsive to our needs and thoroughly understands our business. Amy considers all solutions to our problems before rushing into a decision. She looks at all sides of the issue and can explain plainly what we are facing and how to remedy it. One of her greatest qualities is that she doesn’t overpromise on timelines."

    -Angelique Gisin, Director of Employee Administration, Tacala, LLC and Boom Foods, LLC