Subsequent Tax Sales

Until the right of redemption has been foreclosed or the title has ripened by prescription, a tax deed has the same force and effect as a lien. Since defeasible title has been conveyed to the tax deed purchaser, liability for subsequent taxes would be the same as any other superior lien holder. If there is a subsequent tax sale of the same parcel, the tax deed purchaser will be listed as the owner along with the defendant in Fi.fa. (record owner) for purposes of levy and sale, despite not having foreclosed the right of redemption or having the tax deed ripen by prescription. Therefore, the tax deed purchaser may wish to consider the best possible avenue to protect their initial tax sale investment.

IMPORTANT NOTICE

REPEAL OF LAW – TRANSFER OF TAX EXECUTIONS

Effective May 22, 2002, the Governor signed House Bill 337 (HB 337), as passed by the General Assembly to repeal O.C.G.A.§48-3-19, which provided for the transfer of tax executions to private third parties.

IMPORTANT UPDATE NOTICE - TRANSFER OF TAX LIENS

Effective November 12, 2002 per Superior Court Mandamus Order, the Transfer of Tax Liens continues as follows:

INSTRUCTIONS FOR TRANSFER OF TAX (FIFA) EXECUTIONS (Window under Mandamus Order dated November 12, 2002)

All tax execution transfers take place under a demand and are transferred under the "Caveat Emptor Principle", (buyer beware). Once you become the transferee, you hold the lien and no provision exists for a refund or filing for a refund.

**Guaranteed Payment (CASH or BANK Check) and Completed Request to Transfer must be submitted to and processed by a Delinquent Staff Employee.

DO NOT ATTEMPT to "PAY" CASHIER without Delinquent Staff review.

Presently, a window exists which allows the transfer of tax executions on demand under a Superior Court Order. General Conditions for transfer are as follows:

1. A tax execution must have been Issued and Recorded on the General Execution Docket in the records of the Clerk of Superior Court. The execution must exist to be transferred.
2. Guaranteed Payment in the form of CASH, BANK CHECK, or POSTAL MONEY ORDER required.
   Credit Cards, Letters of Credit, or Foreign Funds are not accepted.
3. Request must be made in person. Transfers cannot be completed by Mail or E-MAIL.

UPON COMPLETION OF A REQUEST TO TRANSFER TAX LIENS BY A DELINQUENT STAFF EMPLOYEE AND PRESENTATION OF PROPER PAYMENT, THE TRANSFER(S) WILL BE COMPLETED.

UPON RECEIPT OF THE TRANSFERRED TAX EXECUTION(S), you must have them entered on the General Execution Docket (G.E.D.) with the Clerk of the Superior Court. Timely recording of the transfer(s) should occur.

Upon your receipt of the properly recorded FiFas back from the Clerk, you then may attempt to collect the tax and, if unsuccessful, you may take the recorded FiFas to the Sheriff's Office for levy and sale. You will be required to follow specific guidelines as set by the Sheriff. This generally requires submission of a Certificate of Title covering a specific minimum period of years, copies of all pertinent Deeds, Affidavits, or other instruments conveying or affecting ownership, security of any loan, debt, judgment, estate or probate action, pending litigation, Bankruptcy, or any other recorded party, interest or event of record. The names and mailing addresses of all owners, and all secured parties of record must be submitted to the Sheriff pursuant to Notice requirements under O.C.G.A.§48-3-9. Failure to provide the Sheriff all information may prevent or invalidate the sale of the property. Once you provide the FiFas and all required information to the Sheriff, a sale can be scheduled. The length of time it takes the Sheriff to schedule a sale can vary. The Sheriff has to have all of the procedures completed and advertised so the sale takes place on the first Tuesday of the sale month. The sale of the property will be to the highest bidder for CASH. You may purchase the property at sale. The tax sale purchaser will be given a tax deed.

The owner or any secured party has twelve (12) calendar months after sale to redeem the property from the tax sale purchaser. At any time during the year and (45) days, the owner or secured party may redeem the property. They are required to pay all of the money that the purchaser paid at the sale, plus a premium (applicable to sales after July 1, 2002) of twenty per cent (20%) the first year and ten per cent (10%) each year thereafter.

If the owner or secured parties do not contact the purchaser of sale within these 12 months to redeem the property, you can send him another certified letter, return receipt requested, advising him that you intend to bar his right to redeem the property. He has forty-five (45) days to respond. At the end of the forty-five (45) days, if they have not contacted you and made arrangements to pay during this period, they are usually forever barred from coming back and your having to allow the owner or secured party to redeem. At this point the purchaser (Holder of Tax Deed) can request the Sheriff put him in possession of the property. If you take no action to bar the right of redemption, the Sheriff's deed ripens in four (4) years from date of recording. (O.C.G.A.§48-4-48).

*******PLEASE READ THE FOLLOWING PARAGRAPH CAREFULLY******

Investments in tax fifas and tax delinquent properties are speculative. Even after a tax sale, the property owner and second lien holder have certain rights, including the right of redemption. If you are unfamiliar with the law regarding fifa transfers and tax sale, you are encouraged to seek legal advice. These Instructions only briefly describe the process, and are not to be read or taken as legal advice. Neither Fulton County nor any official or employee of Fulton County, including, without being limited to, the Tax Commissioner and Sheriff, guarantees that any fifa will be satisfied or that any property will be purchased at sale. You are not guaranteed or promised that you will recover your investment or that you will recover any funds in excess of your investment.

If you need to transfer tax liens, download the FiFa Transfer Request Form.

Delinquent Tax Collections continue as follows:

1. Monthly Judicial In Rem Tax Foreclosure Sales.
a. The owner (no other party) has sixty (60) days to redeem the property after Tax Sale or he/she loses all rights to the property.
b. Sixty (60) days after the sale if not redeemed, the successful bidder receives a Tax Deed and owns the property out right (FEE SIMPLE).
c. A party bids on property at this type of Sale (In Rem) because they want the property. There is no Redemption premium or return on investment.

2. Monthly Non-Judicial Tax Sales. (September 2002 and forward.)
a. The owner or any interested party of record has a year plus a minimum of 45 days after the Tax Sale to redeem the property from the tax deed purchaser.
b. The tax deed purchaser holds “Defeasible Title” and executes a Quit Claim Deed upon payment of redemption monies by the owner or interested party. After July 1, 2002, the premium is 20% the first year or fraction and 10% each year or fraction thereafter. If not redeemed and the tax deed holder does not foreclose and bar the right of redemption after the first year, formerly fee simple title vested after four(4) years after the date of recording of tax deed. A recent Georgia Supreme Court decision may affect the title ripening by prescription and may require a Quiet Title action through Superior Court even after foreclosure and barment to obtain good marketable and insurable title. If you have any questions, consult with your private attorney or private legal advisor. No Tax Commissioner or County employee is authorized to advise on any matter relating to Tax Sales either before or after Sale.

The following courtesy tax sale listings are updated monthly:

• Judicial In-Rem Tax Foreclosures
  
• Non-Judicial Tax Sale
  

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