This guarantees clear and insurable title to the property. We aim to make development and investment in these problem properties financially feasible.Įach conveyance from the BLBA through its Quiet Title Program is through a Warranty Deed. The Birmingham Land Bank Authority has the ability to clear these back taxes, municipal liens and assessments and the authority to institute quiet title actions on properties that are at least five years tax delinquent. Quiet title cases are costly, time consuming, subject to time restraintsĭuring the process, purchasers can be responsible for back taxes, municipal liens and assessments and a variety of other items in addition to attorney’s fees.Indefinite “judicial right of redemption” – now codified = uncertain title.3 year adverse possession holding period after obtaining tax deed.It is often much more costly than the value of the property. It is possible to get clear title after acquiring a tax interest from the state, tax sale or private market. On the Alabama Department of Revenue’s Tax Delinquent Property Page, they specifically state that “…neither an assignment nor a tax deed gives the holder clear title to the parcel.” Furthermore, they state that “It is advisable to consult a competent attorney regarding your contemplated purchase of tax delinquent property.” This is important to note as many people are eager to jump in and purchase a tax interest in a property without fully being aware of the restrictions. Financial institutions generally require a property to have clear insurable title before they offer any construction or renovation products that attach to the property. Absent a large amount of capital, the average purchaser likely needs some sort of financing product to improve these problem properties. Individuals and entities interested in revitalizing their neighborhoods often are met with problems after purchasing an interest in a tax delinquent property that does not have clear insurable title. The BLBA aims to interrupt the passive speculation market. For the purposes of passive speculation, the aforementioned routes may be the way to go.