Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-12-1 - 100% PENALTY ASSESSMENTS › Section 810-12-1-.07 - Sale Of Real Property Acquired Through A Sheriffs Sale By Means Of Public Auction Or Public Sale Under Sealed Bids

Current through Register Vol. 42, No. 9, June 28, 2024
(1) PURPOSE. To set forth departmental
			 guidelines and procedures for the sale of real property acquired through a
			 Sheriff's Sale that are consistent with the provisions of §
								40-29-23(b),
Code of Ala. 1975
.
(2) SEALED BID GUIDELINES AND PROCEDURES. The
			 department shall use the procedures below for the sale of real property under
			 sealed bids after the right of redemption has expired as provided in §
								40-29-28(b),
Code of Ala. 1975
.
(a) At any time prior to the sealed bid
			 opening date, the taxpayer may redeem his property by paying to the department
			 the amount of the final assessment, along with accrued interest, and all costs
			 of the sale. Such costs may include advertising fees, online fees, and other
			 reasonable costs that the department incurs in connection with preparing the
			 property for sale.
(b) The
			 department will offer for sale only the right, title, and interest of the
			 department in and to the property. The property will be sold subject to all
			 prior encumbrances of record. It is the duty of the bidders to determine the
			 liens, if any, that may be a prior encumbrance on the property.
(c) Preparing the Invitation for Bids - An
			 Invitation for Bid notice shall be prepared by the department providing the
			 following:
1. Description of the property
			 being offered for sale
2. County
			 property is held
3. Sealed bid
			 closing date and time
4. Method of
			 submitting bid
5. Minimum bid
			 amount
6. Bid deposit
			 amount
(d) Terms and
			 Conditions of Sealed Bids - Before submitting a bid, bidders must accept the
			 following terms of the Invitation to Bid:
1.
			 The department reserves the right to withdraw the property from sale and the
			 right to reject bids at any time.
2. The day, time, and location of when the
			 property is to be sold will be set by the department.
3. The department will use an online bid
			 process for the sale of real property, unless it is determined not to be in the
			 state's best interest. Special circumstances where a bid cannot be submitted
			 using the prescribed method above can be granted with written preapproval from
			 the Director of Collection Services.
4. All parcels are being offered "as is" and
			 "where is" without recourse against the department. It is the responsibility of
			 the bidder to inspect the property conditions before submitting a bid and
			 without trespassing on the property in any manner.
5. The department makes no guarantee or
			 warranty, express or implied, as to the validity of the title, quality, weight,
			 size, or condition of the property or its fitness for any use or
			 purpose.
6. No claim will be
			 considered for allowance, adjustment, or rescission of the sale based upon
			 failure to conform to any representation, express or implied.
7. The minimum bid amount will be determined
			 by the department after evaluation of the equity in the property and the amount
			 due on the final assessment(s).
8.
			 A bid deposit of 10 percent of the total amount of the bid must be submitted in
			 certified funds or online as a direct debit payment.
9. Within 30 days of notification of
			 acceptance of the bid, the remaining bid price must be paid in full.
10. The deposit of the bidder to whom the
			 award is made will be held in escrow until sale of the property is complete; if
			 that bidder refuses at any time to complete the sale, the deposit will be
			 forfeited to the department and the property offered to the next highest
			 bidder.
11. The department shall
			 convey the property by issuing a deed to the highest bidder after receipt of
			 full payment of the bid amount.
12.
			 All bidders must be at least 18 years of age at time of submitting the
			 bid.
13. All contact information on
			 the bid form must be filled out completely.
(e) Advertising the Invitation for Bids - The
			 department will advertise the property in a newspaper of general circulation or
			 a similar type publication in the county where the property is located, once a
			 week for three successive weeks prior to the sale as prescribed in §
									40-29-23(b),
Code of Ala.1975.
(f) Submission of Bids - Bidders must submit
			 sealed bids before the closing date and time stated in the Invitation for Bids
			 Notice. Bids will not be accepted after the advertised deadline for any
			 reason.
(g) Payment of Deposit Bid
			 - The bid deposit of 10 percent of the total amount of the bid must be
			 submitted before the closing date and time in order for the bid to be
			 considered complete.
(h) Opening of
			 Bids - The bids will be publicly opened by the department at a predetermined
			 time and place specified in the Invitation for Bids Notice.
(i) Evaluation and Comparison of Bids - After
			 all sealed bids have been opened in the department and viewed by the Director
			 of the Collection Services Division, all bids will be sorted from the highest
			 bid to the lowest bid for evaluation and comparison.
(j) Selection of the Highest Bid - After all
			 bids have been evaluated from the highest to the lowest bid, the highest bidder
			 will be selected and awarded the property. In the event two or more highest
			 bids are equal in amount, the highest bidder will be determined by the
			 department by either comparing the earliest submission time and date of the
			 online bid or by drawing lots. The process of drawing lots will be left to the
			 discretion of the Director of the Collection Services Division.
(k) Award of Contract to Highest Bidder - An
			 award notice will be sent to the selected highest bidder giving the highest
			 bidder 30 days to pay the remaining bid amount. The remaining bid amount must
			 be submitted in certified funds to complete the sale.
(l) Notification to Unsuccessful Bidders -
			 The department will notify each unsuccessful bidder after award of bid, and the
			 deposit bid amount shall be returned to each unsuccessful bidder within a
			 reasonable period determined by the department.
(m) Application of Proceeds from Sale - Any
			 proceeds from the sale of the property and the amount paid by the successful
			 bidder will be credited or applied as provided in §
									40-29-33,
Code of Ala. 1975
.
(n) Preparation of Deed - Upon payment in
			 full of the total bid amount, the department shall prepare a deed for the
			 successful bidder transferring the right, title, and interest of the department
			 as provided in §
									40-29-29,
			 Code of Ala. 1975. The department will also record the deed in the probate
			 office of the county in which the property is located.