11.007 Tax Title – Routinely Accepted Risk
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Tax Title – Routinely Accepted Risk
Tax Title. The abstract reveals a tax deed from the State of Alabama for taxes due from John Q. Owner, the record title holder, dated January 3, 1980, recorded on January 4, 1980, in Real Property Book 500, page 1. The tax deed conveyed the minerals underlying the captioned property to Mary R. Purchaser, your lessor, for failure by John Q. Owner to pay the 1976 ad valorem taxes on the property. Since 1980, Mary R. Purchaser has exclusively assessed and paid ad valorem taxes on those minerals. There is no evidence of any claim since 1980, to those minerals by John Q. Owner, or anyone holding under him.
As you are aware, tax titles are not favored under Alabama law. Your lessor’s exclusive assessment and payment of ad valorem taxes, her color of title by virtue of the 1980 tax deed, and the absence of any adverse possession of the minerals under the captioned property, should permit her to perfect her title under the Grove Act, Section 6-5-560, Code of Alabama (1975). Therefore, any risk of title failure due to a defect in the tax sale and the 1996 tax deed, is of the nature that you have routinely accepted on prior occasions.
Requirement: If you are unwillingly to accept the risk of title failure due to a defect in the tax sale and the 1996 tax deed, please advise us accordingly and we shall supplement this requirement to request all documentation involved in the tax sale and the tax deed.
Copyright 2011 by Edward G, Hawkins. All rights reserved.