11.022 Adverse Mineral Tax Assessment

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Requirement 11.022

Adverse Mineral Tax Assessment


 Adverse Mineral Tax Assessment.  The abstract reveals that the mineral tax assessment of the captioned property has been consistent with the record ownership of the coal underlying that land from at least 1906 through the 1970s.  The mineral tax assessment sheet for the tax year 2008 shows Susie Interloper as the sole assessing mineral owner for the captioned property.

 The assessment status is of interest to you, for a number of reasons.  For example,  to protect the right of your lessor, John Q. Owner, to commence an in rem bill to quiet title under the Grove Act, Section 6-5-560, Code of Alabama (1975), he must exclusively assess and pay taxes on the coal.  The Susie Interloper assessments could deny John Q. Owner the ability to clear title through the Grove Act.  Also, a Susie Interloper default in the payment of taxes could lead a tax sale of the coal underlying the captioned property.  We assume that John Q. Owner monitors published tax sale notices and would not allow a tax sale of his valuable coal assets.  For that reason, any risk of title loss due to a tax sale of the coal seam may be a reasonable business risk to you.

 Requirement. We recommend that you request your lessor, John Q. Owner, to have the tax assessment for the captioned property corrected so that he is shown as the assessing owner.

Copyright 2011 by Edward G, Hawkins. All rights reserved.