Do I Get Any Ownership Interest in Property by Paying the Property Tax?
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney in Alabama for guidance about your specific situation.
Detailed Answer
In Alabama, paying the property tax on real estate you don’t hold title to generally does not give you any legal ownership interest in the property. Legal title remains with the person or entity named on the deed. Alabama Code § 40-10-1 et seq. governs taxation and tax sales, but it does not transfer ownership rights just because someone else pays the annual taxes.
Here are the key points under Alabama law:
- Title vests with the deed holder. Only the individual or entity on the recorded deed holds legal title. Nothing in Ala. Code § 40-10-1 through § 40-10-68 grants title to a taxpayer.
- Tax payment prevents tax sale, not forfeiture. Paying taxes keeps the property from being sold at a delinquent tax sale, but it does not create an equitable or legal interest in the land.
- Tax sale certificates. If taxes go unpaid, the county may auction a tax lien certificate. The certificate holder may eventually foreclose and take title under Ala. Code § 40-10-60 et seq., after the redemption period expires.
- Equitable interests and reimbursement. In rare cases, a court may order reimbursement if one party pays taxes to protect another’s title, but that is an equitable remedy, not title transfer. You would need a separate legal action, not merely payment of taxes.
Helpful Hints
- Review the property’s recorded deed at the county probate office to confirm who holds title.
- Understand the difference between legal title (the deed) and equitable interests (fairness claims).
- If you paid taxes thinking it gave you rights, document all payments and correspondence with the county.
- Consider a quiet title or reimbursement action if you seek compensation for taxes paid on someone else’s property.
- Consult an Alabama real estate attorney before taking steps to claim any interest or reimbursement.