Certificate of Purchase for Land Sold by Tax Lien Auction or Tax Lien Sale - Alabama

Certificate of Purchase for Land Sold by Tax Lien Auction or Tax Lien Sale is a legal document that was released by the Alabama Department of Revenue - a government authority operating within Alabama.

FAQ

Q: What is a Certificate of Purchase?A: A Certificate of Purchase is a document issued to the winning bidder at a tax lien auction or tax lien sale.

Q: What is a tax lien auction or tax lien sale?A: A tax lien auction or tax lien sale is a public sale of tax liens on properties that have unpaid taxes.

Q: What does the Certificate of Purchase represent?A: The Certificate of Purchase represents the winning bidder's ownership rights to the tax lien on the property.

Q: How does the tax lien auction or tax lien sale work?A: During the auction or sale, bidders compete to purchase the tax liens by offering to pay the delinquent taxes owed on the property.

Q: What happens after winning the bid?A: After winning the bid, the winning bidder is issued a Certificate of Purchase, which entitles them to collect interest on the delinquent taxes and potentially foreclose on the property if the taxes remain unpaid.

Q: Can I directly buy the property through a tax lien auction or sale?A: No, a tax lien auction or sale only grants the winning bidder the right to collect the delinquent taxes or potentially foreclose on the property, but it does not transfer ownership of the property itself.

Q: What should I do with the Certificate of Purchase?A: You should keep the Certificate of Purchase in a safe place, as it serves as proof of your ownership rights and potential future actions related to the tax lien.

Q: Are there any risks involved with purchasing a tax lien through an auction or sale?A: Yes, there are risks involved, such as property redemption by the owner or other lien holders, potential challenges to the tax lien's validity, or the property being in poor condition or inaccessible.

Q: Can I make money from purchasing a tax lien?A: Yes, if the property owner eventually pays the delinquent taxes, you can earn interest on the amount paid.

Q: What happens if the property owner does not redeem the tax lien?A: If the property owner does not redeem the tax lien, you may have the option to foreclose on the property and become the new owner, subject to legal procedures and requirements.

Q: Can I sell my Certificate of Purchase?A: It is possible to sell your Certificate of Purchase to another investor, but factors such as the status of the taxes and the condition of the property may affect its value and marketability.