Managing heirs property is difficult because of confusion or disagreement among owners about how to divide the financial responsibilities of the property. Sometimes, with so many co-owners entitled to the land, it is difficult to keep track of who is (or should be) paying the annual property taxes. If taxes are not paid, the local government may place a tax lien on the property and ultimately take the property from the owners and sell it at a tax sale to make up for unpaid tax bills.

If someone has failed to pay taxes on property, the tax assessor’s office usually sends out delinquency notices, then puts an ad in the newspaper for several weeks announcing the delinquency. Tax sales of property are then advertised in the newspaper or posted at the county courthouse. Tax sales are usually held in May, and the landowner has until the day before the sale to pay the taxes. Co-owners of the land may be unaware of the delinquency, have trouble contacting one another, or have trouble organizing or raising the funds needed to save the property from a tax sale.

Once a property is auctioned, there is usually a grace period known as “right of redemption” for the heirs to regain ownership.

In most states, property taxes are due during the fall months every year and become delinquent in early January of the following year. Unpaid property tax also incurs interest and fees (up to an allowed maximum percentage) on top of the tax amount. For example, in Alabama, property taxes are due October 1 and become delinquent after January 1. Interest on unpaid taxes accrues at 1 percent per month (12 percent annually), and a fee is charged if taxes are paid late.

Once the property is sold at an auction to the highest bidder, there is usually a grace period during which the property can be redeemed. This is known as “right of redemption.” The purchaser who receives a tax certificate must pay the taxes on the property for 3 consecutive years before receiving a tax deed. During this time, the original owners can get their property back, but they must first pay the delinquent tax amount, taxes owed since the sale, late fees, and interest accrued on the property.

Back to Heirs Property in Alabama

Portia Johnson, Extension Specialist, Assistant Professor, Human Sciences; Ryan Thomson, Assistant Professor, Rural Sociology; Adam Rabinowitz, Extension Specialist, Associate Professor, Agricultural Economics; and Katie Keown, Visiting Professor, Agriculture Law, all with Auburn University

Revised July 2024, Heirs Property in Alabama, HE-0852