11.006 Tax Title – Reasonable Business Risk
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Tax Title – Reasonable Business Risk
Tax Title: Oil Company’s lessors derive their title to the captioned property from two tax deeds dated January 4, 1965, and recorded in Real Property Book 500, page1 and in Real Property Book 500, page 3. Due to the many problems associated with tax titles under Alabama law, Oil Company should rely upon the adverse possession of the captioned property by its lessors and their predecessors in title in order to perfect the title to the Oil Company’s lease covering the captioned property. The curative materials indicate that the Oil Company’s lessors have the benefit of strong adverse possession of the captioned property under color of title since 1980. Furthermore, the curative materials indicate that Mr. Grantor, predecessor in title to Oil Company’s lessors, exercised intermittent acts of possession over the captioned property between 1965 and 1980. Also, the curative materials establish that there are no outstanding adverse claims to the captioned property. Therefore, in our opinion, the curative materials establish that any risk of title failure to the captioned property due to a redemption is a reasonable business risk.
Requirement: If you are unwilling to accept the reasonable business risk of title failure to redemptions of the captioned property from the 1965 tax deeds, please advise us accordingly and we shall supplement this requirement.
Copyright 2011 by Edward G, Hawkins. All rights reserved.