3756 Lavista Rd, Ste 250
Tucker, GA 30084
Phone: 404.633.4100
Fax: 404.633.0068

Frequently Asked Questions - Tax Sales

1. Where Can I Get Title Insurance for My Tax Sale Property?
2. Who May Redeem Land Sold at a Tax Sale?
3. May A Creditor Redeem Property Sold at a Tax Sale?
4. How Much Money Does the Owner Have to Pay to Redeem the Property Sold At a Tax Sale?
5. What Happens to the Property if the Original Owner Buys it Back (Redeems it)?
6. What Happens if the Person Who Bought the Property Refuses to Deed it Back to the Owner?
7. How Long Does the Former Owner Have to Redeem the Property?
8. What Statutory Notice Needs To Be Given To The Former Owner to Bar the Right of Redemption?
9. Does the Former Owner have to Tender the Money Paid at the Tax Sale (plus interest) to Get the Property Reconveyed?
10. What if No Notice of Foreclosure is Ever Sent?
11. May I take Possession of the Property with only a Tax Deed? No.

1.  Where Can I get Title Insurance for My Tax Sale Property?

Fun and Profit with forfeited Tax Property

[Note: I am confident of the statement I make in this paragraph. If any Georgia Title Insurer is prepared to routinely underwrite post bar of redemption Georgia Tax Sale Property, the email me hwood@woodandmeredith.com with the particulars of your willingness to underwrite tax sale property in Georgia and I will publish your company, your policy and the terms on which you will underwrite same. To date there have been no takers on this offer.]

2. Who May Redeem Land Sold at a Tax Sale?

OCGA § 48-4-40 Persons entitled to redeem land sold under tax execution; payment; time.

Whenever any real property is sold under or by virtue of an execution issued for the collection of state, county, municipal, or school taxes or for special assessments, the defendant in fi. fa. or any person having any right, title, or interest in or lien upon such property may redeem the property from the sale by the payment of the redemption price or the amount required for redemption, as fixed and provided in Code Section 48-4-42:

(1) At any time within 12 months from the date of the sale; and

(2) At any time after the sale until the right to redeem is foreclosed by the giving of the notice provided for in Code Section 48-4-45.

 General Consideration
Editor's note. -- In light of the similarity of the provisions, decisions under former Code 1873, § 898; former Code 1882, § 898; former Civil Code 1895, § 909; former Civil Code 1910, § 1169; and former Code 1933, § 92- 8301, are included in the annotations for this Code section.

Effect of subsequent executions. -- It is not necessary for those seeking and entitled to redeem to tender the amount of tax fi. fas. issued subsequently to the sale. LaRoche v. Kinchlo,  154 Ga. 547, 114 S.E. 706 (1922) (decided under former Civil Code 1910, § 1169).

Sale under both tax fi. fa. and judgment. -- Though there is incompatibility in selling land under both a tax fi. fa. and a fi. fa. founded on the judgment of a court at the same time, the sale is not void. The result is to annex to the sale as against both fi. fas. the statutory incident of redemption. The property is redeemable by refunding the whole amount paid by the purchaser, with the statutory premium thereon, but not by refunding a less amount measured by the taxes due. Clower v. Fleming, 81 Ga. 247, 7 S.E. 278 (1888) (decided under former Code 1882, § 898).

No redemption in case of drainage district assessment. -- The right of redemption is not given where land is sold under execution issued for an assessment to meet interest or principal, or the cost of draining the land in a drainage district. Sigmon-Reinhardt Co. v. Atkins Nat'l Bank, 163 Ga. 136, 135 S.E. 720 (1926) (decided under former Civil Code 1910, § 1169).

Intervention to redeem where intervention previously denied on other grounds. -- Judgment sustaining a general demurrer (now motion to dismiss) to an intervention seeking to cancel tax deeds, which intervention is on grounds that the levy was excessive and that an interest less than the fee was conveyed, will not bar subsequent intervention by owner within redemption period, seeking to redeem the property as provided by law. Forrester v. Lowe, 192 Ga. 469, 15 S.E.2d 719 (1941) (decided under former Code 1933, § 92- 8301).

Section makes no exception in favor of minors for redeeming property sold under a tax execution. Dawson v. Dawson, 106 Ga. 45, 32 S.E. 29 (1898) (decided under former Civil Code 1895, § 909).

Cited in Southerland v. Bradshaw, 252 Ga. 294, 313 S.E.2d 92 (1984); Funderburke v. Kellet, 257 Ga. 822, 364 S.E.2d 845 (1988).

Persons Who May Redeem
Corporations. -- No construction, however liberal, which could be given this section granting the privilege of redeeming land sold for taxes to the owner thereof, can inure to the benefit of a party, if the owner be a corporation, and it a mere stockholder therein. Carver Cotton Gin Co. v. Barrett & Caswell, 66 Ga. 526 (1881) (decided under former Code 1873, § 898).

Wife, who is a beneficiary of a homestead estate sold under tax fi. fa. against the husband can redeem the property. Lamar v. Sheppard, 80 Ga. 25, 5 S.E. 247 (1887) (decided under former Code 1882, § 898).

A trustee in bankruptcy, as a creditor of a bankrupt, can redeem land sold under tax fieri facias if he desires. In re Rogers & Williams, 3 F. Supp. 116 (S.D. Ga. 1933) (decided under former Code 1933, § 92-8301).

Lienholders acquiring interest subsequent to tax sale. -- Section 48-4-45 does not provide that the interest must have been held at the time of the tax sale. The section requires notice to lienholders who exist at the time of any attempted foreclosure of the right of redemption. Therefore, such lienholders are not barred from the right of redemption by reason of having acquired their interest subsequent to the tax sale. Leathers v. McClain, 255 Ga. 378, 338 S.E.2d 666 (1986).

Redemption Period
When time begins to run against owner. -- The year for redemption of property sold for taxes runs from the date of the sale and not from the time when the sheriff's deed is recorded. Boyd v. Wilson, 86 Ga. 379, 12 S.E. 744 (1890) (decided under former Code 1882, § 898).

Tender after the time allowed by law for redemption under a tax sale is without efficacy, and an allegation thereof should be stricken on demurrer (now motion to dismiss). Allen v. Gates, 145 Ga. 652, 89 S.E. 821 (1916) (decided under former Civil Code 1910, § 1169).

Redemption after expiration of period with permission of purchaser. -- Although this section affords a positive right to redeem only within the specified period, it does not inhibit the purchaser from according redemption after the period has expired, as matter of grace. Union Cent. Life Ins. Co. v. Bank of Tignall, 182 Ga. 233, 185 S.E. 108 (1936) (decided under former Code 1933, § 92-8301); Caffey v. Parris, 186 Ga. 303, 197 S.E. 898 (1938) (decided under former Code 1933, § 92-8301).

Power of court of equity to allow redemption after expiration of period. -- After statutory redemption period has expired, right to redeem is gone, and there is no power even in a court of equity to authorize redemption of the property in such cases. Boroughs v. Lance, 213 Ga. 143, 97 S.E.2d 357 (1957) (decided under former Code 1933, § 92-8301).

Tender and Payment
Requirements as to tender on offer to redeem. -- A tender on an offer to redeem property from taxes not only must be in due time and manner, but be continuous, with a continuous offer to pay; and if such continuity is not otherwise shown, at least bringing money into court on filing suit is necessary in place of continuous offer by pleading. Durham v. Crawford, 196 Ga. 381, 26 S.E.2d 778 (1943) (decided under former Code 1933, § 92-8301).

Sale not complete until purchase money paid. -- Relative to the right of the owner to redeem the land, the sale will not be considered as complete until payment of the purchase money by the bidder. The owner has 12 months from the time of such payment within which to tender the money to the purchaser for the purpose of redemption. Wood v. Henry, 107 Ga. 389, 33 S.E. 410 (1899). See also Cason v. United Realty & Auction Co., 158 Ga. 584, 123 S.E. 894 (1924) (decided under former Civil Code 1910, § 1169).

Deposit with clerk of unendorsed draft as tender. -- Under requirement either that continuous good tender be made or that actual money be paid into court, mere deposit with clerk of draft drawn on bank of another state, payable to order of defendant and unendorsed, would not suffice as tender on offer to redeem property from taxes; because draft was not endorsed; because its payment could be stopped or refused, and because there was no showing that plaintiff had funds sufficient for payment of draft on deposit with drawee bank. Durham v. Crawford, 196 Ga. 381, 26 S.E.2d 778 (1943) (decided under former Code 1933, § 92-8301).

To whom tender made where purchaser at sale has conveyed property to another. -- Tender on offer to redeem property from tax sale ineffective where it is made to purchaser at tax sale instead of to purchaser's grantee, after grantee had paid the full tax money and consideration to purchaser, and person offering to redeem knew of such status of the property. Durham v. Crawford, 196 Ga. 381, 26 S.E.2d 778 (1943) (decided under former Code 1933, § 92- 8301).

Payment or tender of redemption amount as prerequisite to equitable relief. -- Under maxim that "he who would have equity must do equity", not only must the party seeking equitable relief from a tax sale have paid or tendered sum due to the other party, but he must have done so before filing of suit, unless tender, or offer to restore be excused upon some equitable ground. Durham v. Crawford, 196 Ga. 381, 26 S.E.2d 778 (1943) (decided under former Code 1933, § 92-8301).

Effect of nonpayment of purchase money by bidder. -- As to right of owner to redeem land which has been sold at tax sale, sale is not to be considered as complete until payment of purchase money by bidder. Zugar v. Scarbrough, 186 Ga. 310, 197 S.E. 854 (1938) (decided under former Code 1933, § 92-8301).

Deduction of sale taxes from credits to which tax collector entitled as payment. -- Where purchaser at tax sale was represented at sale by the county tax collector, who, instead of paying amount of bid to the sheriff, merely paid sheriff's costs and advertising fee and, in an adjustment of his account as tax collector, settled with county commissioners by deducting taxes from credits to which he was entitled, there was no such payment of purchase money as to cause period of redemption to commence. Zugar v. Scarbrough, 186 Ga. 310, 197 S.E. 854 (1938) (decided under former Code 1933, § 92-8301).

Effect of failure to pay or settle excess proceeds of sale. -- Fact that "excess" was never paid to sheriff or settled in any manner furnishes grounds that tax sale was not complete, relative to owner's right to redeem. Zugar v. Scarbrough, 186 Ga. 310, 197 S.E. 854 (1938) (decided under former Code 1933, § 92-8301).

Failure to allege payment or tender before filing action to redeem. -- Where one seeking in a court of equity to redeem property sold for taxes admits stated amounts to have been paid for the property at the sale, but fails to allege payment or tender of such amounts before filing such action, petition should be dismissed on demurrer (now motion to dismiss). Forrester v. Lowe, 192 Ga. 469, 15 S.E.2d 719 (1941) (decided under former Code 1933, § 92- 8301).

The allegation that within one year after a tax sale the redeemer tendered to one who had taken title under the purchaser at the tax sale the amount of the purchase price of the property at the sale plus ten percent interest thereon from date, is subject to special demurrer (now motion to dismiss) where it does not show the amount of the purchase price or of the tender. Allen v. Gates, 145 Ga. 652, 89 S.E. 821 (1916) (decided under former Civil Code 1910, § 1169).

Allegation that person to whom tender was made refused it and stated that it was unnecessary to make any further tender of any kind, as he would not surrender the property save at the end of litigation, is sufficient to show a waiver of further tender, but does not supply the deficiencies in the allegations that there had been an actual tender of amounts, alleged in an indefinite way, the plaintiffs relying on actual tender as well as waiver. Allen v. Gates, 145 Ga. 652, 89 S.E. 821 (1916) (decided under former Civil Code 1910, § 1169).

Title to, and Rights in, Property Pending Redemption
Effect on title of redemption or failure to redeem. -- Purchaser at tax sale acquires a defeasible title, under which he is entitled to a deed from the officer selling the property, and can convey his own defeasible title to another person, subject only to the right of redemption. If amount required for redemption is paid or sufficiently tendered, such payment or tender revests title in the owner, but otherwise, at expiration of redemption period, title becomes absolute in purchaser or his grantee. Durham v. Crawford, 196 Ga. 381, 26 S.E.2d 778 (1943) (decided under former Code 1933, § 92-8301).

Upon tender by owner under this section for the purpose of redeeming his property from a tax sale, purchaser's inchoate, qualified, or defeasible estate terminates. Bowman v. Poole, 212 Ga. 261, 91 S.E.2d 770 (1956) (decided under former Code 1933, § 92-8301).

Where no redemption is made during the time in which redemption is authorized, purchaser acquires under the tax deed an absolute and unconditional title to the land sold. Thereupon the owner and all other parties authorized by law to redeem lose their redemption rights and cease to have any interest in the land. Forrester v. Lowe, 192 Ga. 469, 15 S.E.2d 719 (1941) (decided under former Code 1933, § 92-8301).

State of title held by sale purchaser or his grantee pending period of redemption. -- Purchaser at a tax sale may convey the property before expiration of redemption period, in which case vendee acquires the inchoate or defeasible title which passed to his vendor under the tax sale, subject to right of owner to redeem within time prescribed by this section. Braswell v. Palmer, 191 Ga. 262, 11 S.E.2d 889 (1940) (decided under former Code 1933, § 92-8301).

Effect of redemption by cotenant on rights of other cotenants. -- If cotenant redeemed property by payment of redemption money to the purchaser at tax sale, such redemption did not divest other cotenant of title to his interest in the property. The effect of the redemption would be to restore title to the same owners who held it before the tax sale. Andrews v. Walden, 208 Ga. 340, 66 S.E.2d 801 (1951) (decided under former Code 1933, § 92-8301).

Right of possession pending redemption. -- During the time allowed for redemption, a purchaser's title is inchoate and he does not have the right to be put in possession of the property. Elrod v. Owensboro Wagon Co., 128 Ga. 361, 57 S.E. 712 (1907) (decided under former Civil Code 1895, § 909).

Rights concerning rents pending redemption. -- Since rents accruing within 12 months after a tax sale may not be used to supplement cash tendered in redemption, and a purchaser at a tax sale is not entitled to rents, issues, and profits accruing between the time of his purchase and the redemption of the property, rent for the premises after the legal sale, not paid by the tenant purchaser, is recoverable up to the time his deed became absolute. Beckham v. Lindsey, 22 Ga. App. 174, 95 S.E. 745 (1918) (decided under former Civil Code 1910, § 1169).

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3. May a Creditor Redeem Property Sold at a Tax Sale?

OCGA § 48-4-41 Redemption by creditor without lien.

If the property is redeemed by a creditor of the defendant in fi. fa. who has no lien, the creditor shall have a claim against the property for the amount advanced by him in order to redeem the property if:

(1) There is any sale of the property after the redemption under a judgment in favor of the creditor; and

(2) The quitclaim deed is recorded as required by law.

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4. How Much Money does the Owner have to Pay to Redeem the Property Sold At a Tax Sale?

OCGA § 48-4-42 Amount payable for redemption.

OCGA § 48-4-42 Amended 2002.   Effective May 21,2002

House Bill 337 (AS PASSED HOUSE AND SENATE)
By: Representative Richardson of the 26^th




A BILL TO BE ENTITLED

AN ACT

To amend Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, so as to repeal certain provisions regarding the selling and transferring of tax executions in lot blocks; to provide for the aggregation of multiple tax executions into one sale; to provide a method by which excess funds from tax sales must be paid; to limit the amount of premium required to be paid to redeem property; to provide for related matters; to provide an effective date; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is amended by striking Code Section 48_3_19, relating to transfer of executions, and inserting in its place the following:
"48_3_19.
(a)(1) Whenever any person other than the person against whom an execution has been issued pays an execution issued for state, county, or municipal taxes and proves compliance with subsection (b) of this Code section for individual transfers or subsection (c) of this Code section for transfers in lot blocks, the officer whose duty it is to enforce the execution, upon the request of the party paying the execution, shall transfer the execution to the party so paying. The person to whom the execution is transferred shall have the same rights as to enforcing the execution and priority of payment as might have been exercised or claimed before the transfer, if, within 30 days of the transfer, the person to whom the execution is transferred has the execution entered on the general execution docket of the superior court of the county in which the execution was issued and, if the person against whom the execution was issued resides in a different county, has the execution entered on the general execution docket of the superior court in the county of such person's residence. In default of the required entry, the execution shall lose its lien upon any property which has been transferred in good faith and for a valuable consideration before the entry and without notice of the existence of the execution. The provisions of this paragraph with respect to enforcement rights of the transferee shall in no manner supersede the provisions of subsection (e) of this Code section which limit the amounts which the transferee may charge for a release of the execution.
(2)(A) It shall be unlawful for any tax official covered by this paragraph to pay a tax execution in order to obtain a transfer of the execution under this Code section. It shall be unlawful for any employee of a tax official covered by this paragraph to pay a tax execution in order to obtain a transfer of the execution under this Code section. The tax officials covered by this paragraph are:
(i) County tax receivers, tax collectors, and tax commissioners;
(ii) Members of county boards of tax assessors;
(iii) Members of county boards of equalization; and
(iv) County tax appraisers.
(B) Any execution transferred in violation of subparagraph (A) of this paragraph shall be void and unenforceable by the person obtaining the execution and such person's successors in interest.
(C) Any tax official or employee of a tax official violating subparagraph (A) of this paragraph shall upon conviction be guilty of a misdemeanor.
(b) Except as provided in subsection (c) of this Code section, no person may pay an execution issued for ad valorem property taxes and thereby become the transferee of such execution as provided in subsection (a) of this Code section if the person is not a lawful heir or an equity holder in such property unless and until:
(1) Such person has notified the individual against whom the execution was issued by certified mail or statutory overnight delivery, and, with respect to single_family residences and duplexes, notified the occupant thereof by first_class mail, of such person's intention to pay such execution and unless and until 60 days have elapsed since the giving of such notice; or
(2) In the event that such notice by certified mail or statutory overnight delivery is returned undelivered, such person shall be required to publish such notice not less than once a week for three weeks in the legal organ of the county in which the execution was entered on the general execution docket of the superior court. Such person shall be required to show proof to the tax official who issued the execution that such notice was advertised in compliance with this paragraph.
(c)(1) As used in this subsection, the term:
(A) 'Delinquent taxpayer' means the person against whom an execution has been issued.
(B) 'Execution' means an execution issued for the collection of any ad valorem taxes, fees, penalties, interest, or collection costs due the state or any political subdivision thereof.
(C) 'Governing authority' means the county governing authority when the tax executions have been issued for state and county taxes or a combination of state, county, and city taxes; or the municipal governing authority when the tax executions have been issued for city taxes alone.
(D)'Lot block of executions' means a group of more than one execution of which the aggregate principal amount is not less than $10,000.00.
(E) 'Transferee' means a person paying for a lot block of executions for the purpose of having those executions and all the rights to enforce collection thereof transferred to him or her.
(F) 'Transferor' means the official holding the tax executions and authorized to collect or transfer such tax executions.
(2) Except for transferees who provide 60 days' notice pursuant to paragraph (1) of subsection (b) of this Code section and who purchase such lot blocks of executions for the full, undiscounted principal amount of the executions and interest due thereon, no transferee may, within a single calendar year, pay and have transferred to such transferee executions for which the aggregate principal amount is more than $10,000.00 without first entering into a written agreement with the transferor approved by the governing authority and entered onto the minutes at a regular meeting. Such agreement shall include, but not be limited to, the following provisions:
(A) The aggregate principal amount of each group of executions transferred shall be in lot blocks of not less than $10,000.00;
(B) No lot block may include one or more executions against the same delinquent taxpayer that exceed, in principal amount, 20 percent of the total principal amount of the executions in the lot block of executions transferred;
(C) In the event any execution transferred is later determined to have been issued in error, the transferee will cease and desist from all collection efforts, remove the associated entries from any execution dockets on which it has been entered, remove any negative reports that may have been submitted to credit reporting agencies regarding the erroneous execution, and return the execution to the transferor. In return, the transferor shall reimburse the transferee the amount paid for the execution at the time of transfer without any additional fees, penalties, interest, and collection costs that may have been incurred by the transferee since the transfer. The transferor shall deduct such reimbursement from subsequent remittances of taxes, fees, penalties, and interest collections to the levying authorities in the same proportion as the payment received from the transferee for the execution transferred in error was disbursed. Provided, however, the transferor and the transferee may allow for the collection of certain fees, penalties, interest, or costs by the transferee from the transferor when expressly stated in the contract negotiated between the parties;
(D) The transferee shall maintain a reasonably accessible office within the State of Georgia where delinquent taxpayers may come or call to inquire about their execution and make arrangements to pay the same;
(E) The transferee may begin collection proceedings immediately after the transfer; however, the transferee shall, within 60 days after transfer of the executions, send a notice to each delinquent taxpayer that has not yet settled such delinquent taxpayer's execution indicating the transferee is now holding such execution. Such notice shall include, but not be limited to, the payment amount necessary to settle the execution, the rate of accumulation of additional charges authorized by law on the execution, the payment terms and options available to the delinquent taxpayer, the actions that will be taken by the transferee if the execution is not settled in a timely manner, and a statement explaining the rights of the delinquent taxpayer to stop all collection efforts if the execution has been issued in error;
(F) The transferee shall, immediately after the execution has been settled, indicate such settlement on any execution dockets where the execution has been entered and submit a statement indicating such settlement to any credit reporting agencies to which negative reports were submitted by the transferee regarding the execution;
(G) Unless otherwise provided by the agreement between transferee and transferor, prior to enforcement of the collection of transferred executions, the transferee shall perform a title examination pursuant to the current Title Standards as promulgated by the Real Property Section of the State Bar of Georgia and, upon request by the governing authority, provide a copy of such title examination and related title documents to the sheriff of the county prior to enforcement of the transferred executions by levy and sale;
(H) Preexisting agreements under this Code section in effect prior to April 14, 1997, which were approved by the governing authority shall remain in full force and effect until termination by the governing authority; and
(I) Responsibility for amounts expended for any mailing or publication costs associated with notification pursuant to paragraph (3) of this subsection.
(3) Before the governing authority may agree to the transfer of executions in lot blocks, it shall notify the delinquent taxpayers of its intention to authorize such transfers. Such notice shall be sent by regular mail and shall advise the delinquent taxpayers against whom the selected executions have been issued that they have 90 days in which to pay the transferor the amount of the execution plus any fees, penalties, interest, and costs that may have accrued or the executions will be transferred to a private company for collection. In the event that such notice sent by regular mail is returned undelivered, or the identity of the delinquent taxpayer is unknown to the governing authority, the governing authority shall be required to publish such notice not less than once a week for three weeks in the legal organ of the county in which the execution was entered on the general execution docket of the superior court. In either event, the transferor shall not be authorized to transfer the executions until this notice has been made and the 90 day payment period has transpired. The transferor shall be authorized to transfer the balance of the executions in the lot block that are unpaid at the expiration of the notice period even though as a result of some of the executions being settled during the notice period subparagraphs (A) and (B) of paragraph (2) of this subsection are no longer complied with.
(4) Upon compliance with any bidding requirements that may be required by law, the governing authority shall be authorized to allow a discount of up to 10 percent of the amount of the execution; provided, however, that when a portion of the execution represents taxes, fees, penalty, and interest due the state, no part of the discount shall be deducted from such portion and the discount applicable to the state's portion of the execution amount shall be absorbed by the governing authority. Any discount allowed by the governing authority shall not affect the amount due under the execution and the transferee shall have the right to collect the full amount of the execution as if no discount had been allowed.
(d) No person may pay an execution issued for ad valorem property taxes and thereby become the transferee of such execution as provided in subsection (a) of this Code section if:
(1) At the time of the transfer, the local tax official is unable to verify that the proposed transferee is current on all ad valorem tax obligations within the local tax official's jurisdiction to collect; provided, however, that in all cases where the local tax official is unable to make the verification required under this paragraph, no transfer of an execution shall be denied if the proposed transferee delivers to the local tax official a written statement stating either that the proposed transferee is not the correct taxpayer for the alleged outstanding tax obligation or that the involved tax parcel or tax parcels do not represent taxable property; or
(2) The property which is the subject of the tax execution has been included among a list of properties recommended by the local tax official and approved by the local governing authority, as eligible for exclusion from transfer of execution; and
(3) A public hearing has been held on the issue of excluding such property from eligibility for transfer of execution; and
(4) Following the public hearing, the governing authority of the county or municipality, as applicable, has, in its discretion, approved the property for exclusion from transfer of execution based on a determination that such exclusion is in the best interest of the public.
(e) The person to whom a tax execution is transferred as provided in this Code section or such person's successor or assigns shall not charge the person against whom such execution was issued for the release or satisfaction of such execution more than the total of:
(1) The amount paid on the tax execution plus interest from the date of such transfer on such amount calculated at a rate not exceeding 12 percent per annum; and
(2) Unless otherwise provided by law, recording fees, and where the principal amount of tax execution exceeds $1,500.00, title search fees not to exceed $150.00, actually expended in recording the transferred execution on the general execution docket of the county in which the execution was issued and the general execution docket of the county in which the person against whom the execution was issued resides, if different from the county in which the execution was issued. If a discount from the face amount of the tax execution has been allowed the person to whom a tax execution has been transferred in accordance with subsection (c) of this Code section, the person against whom such execution was issued may be charged the full face amount of the execution plus interest and recording fees as stated in this subsection. This limitation on the amount charged for release or satisfaction of an execution shall be absolute, and it shall be unlawful to charge any other fees or charges of any kind for such a release or satisfaction.
Reserved."

SECTION 2.

Said title is further amended by striking subsection (b) of Code Section 48_4_1, relating to procedures for sales under tax levies and executions, and inserting in lieu thereof the following:
"(b) If two or more executions have been levied against a defendant, or if two or more in rem executions have been levied against the same unreturned property, such executions may be aggregated and a single sale may be conducted for the total amount due, as in the case of a single execution, and the 12 month period of redemption provided by Code Section 48_4_40 shall commence as to all such executions on the date of such sale, provided that at least one of the executions meets the provisions of this Code section."

SECTION 3.

Said title is further amended by striking in its entirety Code Section 48_4_5, relating to the payment of the excess proceeds from the sale of property, and inserting in lieu thereof the following:
"48_4_5.
If there is any excess after paying taxes, costs, and all expenses of a sale, it shall be immediately paid to the person authorized to receive the excess. the tax commissioner or tax collector may file an interpleader action in superior court for the payment of the amount of such excess. Such excess shall be distributed by the superior court to intended parties, including the owner as their interest appears and in the order of priority in which their interest exists."

SECTION 4.

Said title is further amended by striking Code Section 48_4_42, relating to the amount payable for redemption, in its entirety and inserting in lieu thereof a new Code Section 48_4_42 to read as follows:
"48_4_42.
The amount required to be paid for redemption of property from any sale for taxes as provided in this chapter, or the redemption price, shall with respect to any sale made after July 1, 2002, be the amount paid for the property at the tax sale, as shown by the recitals in the tax deed, plus any taxes paid on the property by the purchaser after the sale for taxes, plus any special assessments on the property, plus a premium of 20 percent of the amount for each the first year or fraction of a year which has elapsed between the date of the sale and the date on which the redemption payment is made and 10 percent for each year or fraction of a year thereafter. If redemption is not made until more than 30 days after the required notice provided for in Code Section 48_4_45 has been given, there shall be added to the redemption price the sheriff´s cost in connection with serving the notice, and the cost of publication of the notice, if any, and the further sum of 20 percent of the amount paid for the property at the sale to cover the cost of making the necessary examinations to determine the persons upon whom notice should be served. All of the amounts required to be paid by this Code section shall be paid in lawful money of the United States to the purchaser at the tax sale or to the purchaser´s successors."

SECTION 5.

This Act shall become effective upon its approval by the Governor or upon its becoming law without such approval.

SECTION 6.

All laws and parts of laws in conflict with this Act are repealed.

______

Cases Decided under the Old 10% Redemption Law State:

Purpose of requirement that payment be made to purchaser or his heirs. - By the terms of this section, a prerequisite to redemption is that amounts required for redemption must be paid to purchaser, or his heirs, successors, or assigns in lawful money of the United States. The intent and purpose of this payment is to fully compensate the owner for what he paid plus a penalty. This purpose is defeated if payment is made to just anyone in the chain, for the owner at the time is alone entitled to such payment. Herrington v. Old S. Inv. Co., 222 Ga. 428, 150 S.E.2d 623 (1966) (decided under Ga. L. 1937, p. 491, § 2).

Computation of time period for which premium is due. - By establishing the reference points of this section as "each year or fraction of a year which has elapsed between the date of the sale and the date on which the redemption payment is made", the General Assembly has demonstrated its intention to compute the time period for which a 10 percent premium is due as a 12-month year running from the date of sale. Southerland v. Bradshaw, 255 Ga. 455, 339 S.E.2d 579 (1986).

Failure to pay or tender to proper party as bar to action to redeem. - Where proper tender would have been to the holders under the security deed, failure to pay or tender to them the required amount for redemption is a bar to the prosecution of action to redeem. Herrington v. Old S. Inv. Co., 222 Ga. 428, 150 S.E.2d 623 (1966) (decided under Ga. L. 1937, p. 491, § 2).

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5. What Happens to the Property if the Original Owner Buys it Back (Redeems it)?

OCGA § 48-4-43 Effect of redemption.

When property has been redeemed, the effect of the redemption shall be to put the title conveyed by the tax sale back into the defendant in fi. fa., subject to all liens existing at the time of the tax sale. If the redemption has been made by any creditor of the defendant or by any person having any interest in the property, the amount expended by the creditor or person interested shall constitute a first lien on the property and, if the quitclaim deed provided for in Code Section 48-4-44 is recorded as required by law, shall be repaid prior to any other claims upon the property.

"Lien" construed. - As used in this section, "lien" comprehends also title under deeds for security of debt. Union Cent. Life Ins. Co. v. Bank of Tignall, 182 Ga. 233, 185 S.E. 108 (1936) (decided under former Code 1933, § 92-8302).

Applicability after statutory redemption period expired. - This section is equally applicable where property is redeemed after statutory period has expired. Union Cent. Life Ins. Co. v. Bank of Tignall, 182 Ga. 233, 185 S.E. 108 (1936) (decided under former Code 1933, § 92-8302); Caffey v. Parris, 186 Ga. 303, 197 S.E. 898 (1938) (decided under former Code 1933, § 92-8302).

Applicability of this section to property sold for federal taxes. - This section does not apply only to tax sales by the state or some subdivision thereof. While provisions of federal statutes control as to manner in which property may be redeemed after sale for federal taxes, once the redemption has become effective, the effect of the redemption as to other liens on the property is determined by state statutes. Lowe v. City of Atlanta, 221 Ga. 477, 145 S.E.2d 534 (1965) (decided under former Code 1933, § 92-8302).

Effect of redemption by cotenant on rights of other cotenants. - If cotenant redeemed property by payment of redemption money to purchaser at tax sale, such redemption does not divest other cotenant of title to his interest in the property. The effect of the redemption would be to restore title to the same owners who held it before the tax sale. Andrews v. Walden, 208 Ga. 340, 66 S.E.2d 801 (1951) (decided under former Code 1933, § 92-8302).

Purchase by trustee in breach treated as redemption. - Where in consequence of a trustee's breach of duty an estate is sold for taxes, he cannot, even after the expiration of the redemption period, acquire a title from the purchaser at the tax sale, good against his cestui que trust. In equity the reconveyance will be treated as a correction of the wrong, leaving the property impressed with the original trust. Bourquin v. Bourquin, 120 Ga. 115, 47 S.E. 639 (1904) (decided under Ga. L. 1898, p. 85, § 3).

Where a trustee allowed trust property to be sold for taxes, but purchased the property individually after the time for redemption had passed, the effect was a revesting of the interest of the cestui que trust, who was then entitled to redeem the land at subsequent tax sale. Bourquin v. Bourquin, 120 Ga. 115, 47 S.E. 639 (1904) (decided under Ga. L. 1898, p. 85, § 3).

Effect against sale purchaser with independent title. - Where land is redeemed no better title is acquired than the person redeeming had before, and if the purchaser at the tax sale has an independent title, it is not divested by the redemption. Elrod v. Owensboro Wagon Co., 128 Ga. 361, 57 S.E. 712 (1907). See also Morrison v. Whiteside, 116 Ga. 459, 42 S.E. 729 (1902) (decided under Ga. L. 1898, p. 85, § 3).

Effect of sale and redemption on restrictions as to use of property. - Whether or not a restriction of land to use as a park might ordinarily be extinguished by a valid sale of the land under a municipal execution for paving assessments, where owner of the property at time of sale under execution merely redeems it, the effect of such redemption is to place title back into such owner, subject to the restriction. Caffey v. Parris, 186 Ga. 303, 197 S.E. 898 (1938) (decided under former Code 1933, § 92-8302).

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6. What if the Person Who Bought the Property Refuses to Deed It Back to the Owner?

The statute requires that the purchaser at a tax sale "shall" deed the property back upon payment and demand. If the holder of the title refuses the former owner may go to court and, through the equitable powers of the court, require that the property be reconveyed.

48-4-44 Quitclaim deed by purchaser.

(a) In all cases where property is redeemed, the purchaser at the tax sale shall make a quitclaim deed to the defendant in fi. fa., which deed shall recite:

(1) The name of the person who has paid the redemption money; and

(2) The capacity in which or the claim of right or interest pursuant to which the redemption money was paid.

(b) The recitals required by this Code section shall be prima-facie evidence of the facts stated.

Section inapplicable to sale for drainage assessments. - Where land is sold under execution issued for an assessment to meet interest, principal, or costs of draining the land in a drainage district, the vendee will not be required to execute and deliver a quitclaim deed. Sigmon-Reinhardt Co. v. Atkins Nat'l Bank, 163 Ga. 136, 135 S.E. 720 (1926) (decided under former Civil Code 1910, § 1172).

That purchaser does not yet have deed is no defense to demand for deed. - It is no defense to a demand for a deed under this section to answer that the purchaser has not yet had the selling officer make a deed to him. Elrod v. Owensboro Wagon Co., 128 Ga. 361, 57 S.E. 712 (1907) (decided under Ga. L. 1898, p. 85, § 5).

Cited in Leathers v. McClain, 255 Ga. 378, 338 S.E.2d 666 (1986).

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7. How Long Does A Former Owner Have to Redeem The Property?

The former owner of a property sold at a tax sale has a minimum of 12 months from the date of sale to redeem the property. Thereafter, if the holder of the tax deeds sends the appropriate notices concerning Notice of Foreclosure of the Right of Redemption and the former owner does not redeem, the right to redeem is forever barred. The statute for redemption is technical and must be followed to the letter for a proper redemption to occur.

OCGA § 48-4-45 Notice of foreclosure of right to redeem; time; persons entitled to notice.

(a) After 12 months from the date of a tax sale, the purchaser at the sale or his heirs, successors, or assigns may terminate, foreclose, divest, and forever bar the right to redeem the property from the sale by causing a notice or notices of the foreclosure, as provided for in this article:

(1) To be served upon all of the following persons who reside in the county in which the property is located:

(A) The defendant in the execution under or by virtue of which the sale was held;

(B) The occupant, if any, of the property; and

(C) All persons having of record in the county in which the land is located any right, title, or interest in, or lien upon the property;

(2) To be sent by registered or certified mail to each of the persons specified in subparagraphs (A), (B), and (C) of paragraph (1) of this subsection who resides outside the county in which the property is located, if the address of that person is reasonably ascertainable; and

(3) To be published, if that tax sale occurs on or after July 1, 1989, in the newspaper in which the sheriff's advertisements for the county are published in each county in which that property is located, which publication shall occur once a week for four consecutive weeks in the six-month period immediately prior to the week of the redemption deadline date specified in the notice.

(b) Nothing contained in this Code section shall be construed to require that any notice be sent to or served upon any person whose right, title, interest in, or lien upon the property does not appear of record in the county in which the land is located.

(c) The heirs of any deceased owner of any land entitled to notice pursuant to this Code section shall be served by the sheriff or notified as provided in this article.

The notice requirements of this section must be complied with by one seeking redemption. Blizzard v. Moniz, , 1999 Ga. LEXIS 379, S.E.2d (1999).

Lack of notice not affecting foreclosure of redemption. -- Because the former owner's interest in property was foreclosed upon by the creditor prior to the issuance of the tax fi-fa, the former owner's interest did not appear of record in the county in which it was located when the foreclosure of the right of redemption was begun and, accordingly, the lack of notice to the former owner did not affect the validity of the foreclosure. GE Capital Mtg. Servs. Inc. v. Clack, Ga. , 1999 Ga. LEXIS 426, S.E.2d (1999).

Proof of publication of notice. -- Tax sale purchaser's attachment of a copy of the newspaper notice to the summary judgment affidavit satisfied the purchaser's burden of showing on the record that the purchaser was entitled to judgment. GE Capital Mtg. Servs. Inc. v. Clack, Ga. , 1999 Ga. LEXIS 426, S.E.2d (1999).

Computation of time. -- This section requires that 12 months shall have elapsed before the right to redeem property shall be foreclosed and before notice of the right to foreclose the right shall be served. Wallace v. President St., 263 Ga. 239, 430 S.E.2d 1 (1993).

Lienholders acquiring interest subsequent to tax sales not barred from redemption. -- This section does not provide that the interest must have been held at the time of the tax sale. The section requires notice to lienholders who exist at the time of any attempted foreclosure of the right of redemption. Therefore, such lienholders are not barred from the right of redemption by reason of having acquired their interest subsequent to the tax sale. Leathers v. McClain, 255 Ga. 378, 338 S.E.2d 666 (1986).

Power of court of equity to allow redemption after expiration of period. -- After the statutory redemption has expired, right to redeem is gone, and there is no power even in a court of equity to authorize redemption of the property in such cases. Boroughs v. Lance, 213 Ga. 143, 97 S.E.2d 357 (1957) (decided under Ga. L. 1937, p. 491, § 2).

Cited in Funderburke v. Kellet, 257 Ga. 822, 364 S.E.2d 845 (1988).

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8. What Statutory Notice Needs to Be Given to the Former Owner to Bar the Right of Redemption?

The tax sale purchaser of the property must start the process to personally serve the former owner with the below described Notice of Foreclosure of Right to Redeem not less than 45 days prior to the expiration of the date set for redemption in the Notice. The Notices may not be sent until a minimum of one year from the date of purchase has elapsed. Wallace v. President Street, LP, 263 Ga.239, 430 S.E.2d 1 (1993).

OCGA § 48-4-46 Form of notice of foreclosure of right to redeem; service; time; return and record; waiver.

(a) The notice provided for in Code Section 48-4-45 shall be written or printed, or written in part and printed in part, and shall be in substantially the following form:

• Notice of Forclosure of Right of Redemption template
  (Located in the Forms section)

Also available:

• Forclosure of Right of Redemption template
  (Located in the Forms section)

• Forclosure of Right of Redemption Newpaper Advertisement template
  (Located in the Forms section)

____________ (b) The purchaser at the tax sale or his heirs, successors, or assigns, as the case may be, shall make out an original notice in substantially the form prescribed in subsection (a) of this Code section and one copy of the notice for each person to be served with the notice. The purchaser shall deliver the notice and the copies together with a list of the persons to be served to the sheriff of the county in which the land is located not less than 45 days before the date set in each notice for the expiration of the right to redeem. Within 15 days after delivery to him, the sheriff shall serve a copy of the notice personally or by deputy upon each of the persons included on the list furnished him who reside in the county. The sheriff shall make an entry of the service on the original copy of the notice. Leaving a copy of the notice at the residence of any person required to be served with the notice shall be a sufficient service of the notice.

(c) If the sheriff personally or by deputy makes an entry that he is unable for any reason to effect service upon any person required to be served, the person who requested that the service be made shall forthwith cause a copy of the notice to be published once a week for two consecutive weeks in the newspaper in which the sheriff's advertisements for the county are published, unless that notice is being published as provided in paragraph (3) of subsection (a) of Code Section 48-4-45. Either publication shall operate as and for all purposes shall be treated as service upon all persons as to whom the sheriff has made an entry that he has been unable to effect service.

(d) Each original notice together with the entry of the sheriff on the notice shall be returned to the person by whom the service was requested upon the payment of the sheriff's costs as provided by law. Any original notice together with the entries on the notice may be filed and recorded on the deed records in the office of the clerk of the superior court of the county in which the land is located.

(e) Service of notices as provided in this Code section may be waived in writing by any person required or entitled to be served with the notice.

Constitutionality. -- The notice to persons outside the county under § 48- 3-9(b) and subsections (b) and (c) of this Code section are not in accord with the requirements of due process, because an owner of a security deed or mortgage who lives outside the county in which the land is located will only receive published notice of the foreclosure of the right to redeem. Funderburke v. Kellet, 257 Ga. 822, 364 S.E.2d 845 (1988).

Responsibility of purchasers. -- Purchasers of a business were required to establish a fund sufficient to cover unpaid taxes regardless of the existence of other claims superior to the state tax execution. Collins v. Lesters, Inc., 225 Ga. App. 405, 484 S.E.2d 62 (1997).

Cited in Southerland v. Bradshaw, 252 Ga. 294, 313 S.E.2d 92 (1984); Dixon v. Conway, 262 Ga. 709, 425 S.E.2d 651 (1993).

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9. Does the Former Owner Have to Tender the Money Paid at the Tax Sale (plus interest) to Get the Property Reconveyed?

Yes. As the statute states, once the holder of the tax deed serves the Notice of Foreclosure of the Right of Redemption, the former owner must tender all the money owed plus interest to challenge the tax deed. There are two (2) exceptions to this rule: 1) the former owner may challenge that the tax was not due at the time the land was sold by the Sheriff, and 2) that no proper Notice was given.

OCGA § 48-4-47 Tender of redemption price before action to cancel tax deed.

(a) After notice to foreclose the right of redemption as provided for in this article has been given, no action shall be filed, allowed, sanctioned, or maintained for the purpose of setting aside, canceling, or in any way invalidating the tax deed referred to in the notice or the title conveyed by the tax deed unless and until the plaintiff in the action pays or legally tenders to the grantee in the deed or to his successors the full amount of the redemption price for the property, as provided for in this article.

(b) Subsection (a) of this Code section shall apply unless it clearly appears that:

(1) The tax or special assessment for the collection of which the execution under or by virtue of which the sale was held was not due at the time of the sale; or

(2) Service or notice was not given as required in this article.

Effect of plaintiff's financial inability to make tender. -- Plaintiff's financial inability to make the tender of the amount owed does not alter the requirements of this section. Ayer v. Lamar County, 194 Ga. 712, 22 S.E.2d 606 (1942) (decided under Ga. L. 1937, p. 491, § 2).

Collateral attack on ownership of property. -- The plaintiffs were barred from collaterally attacking the validity of the county's ownership of property at the time of the demolition of a home on the property where there was no tender of the redemption price to the county regarding the property and there was nothing in the record to indicate that taxes, which formed the basis for the tax sale of the property, were not due at the time of sale or that the county failed to provide proper notice or service of its bar of redemption. Hill v. Mayor of Savannah, 233 Ga. App. 742, 505 S.E.2d 35 (1998).

Cited in Southerland v. Bradshaw, 252 Ga. 294, 313 S.E.2d 92 (1984).

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10. What if No Notice of Foreclosure is Ever Sent?

The title should ripen in four (4) years.  But, do not expect to eaisly obtain title insurance in Georgia.

In Machen, et al.  v. Wolende Management Group, Inc., 271 Ga. 163,  517 S.E.2d 58 (1999), the Georgia Supreme Court finally addressed the issue concerning whether tax deeds ripen into good title after four (4) years.  In Machen, the Court held that the if the right of redemption is not exercised within four (4) years from the date of sale, it is barred.  And, after the time fixed by the statute for redemption has expired, the right to redeem is gone.  There is no power even in a court of equity to authorize a redemption of the property in such cases.

Tender of the amount due is a prerequisite to the filing and prosecution of suit to redeem property sold under a tax execution.

This author, however, has not found a single title insurance company in Georgia  willing to write title insurance over an outstanding tax sale.  The common practice is to still require a valid quit claim deed(s) for all outstanding interests or require a quiet title action to eliminate the uncertainty of the tax deed.

In  GE Capital Mortgage Service, Inc. v. Clack et al., 271 Ga. 82, 515 S.E.2d 619 (1999), the Georgia Supreme Court held that a Creditor in a tax sale may not challenge the tax sale based on lack of notice to another party.  Here, in a case of first impression in Georgia, GE challenged the sale on the basis that another creditor (not GE) had not received good notice.  The court stated that may give rise to damages, but will not support GE's claim.  GE must show lack of notice to GE to have standing on the issue of notice.   Georgia is apparently in the minority of states concerning the adoption of this legal position.  45 A.L.R.4th 447, § 4.

OCGA § 48-4-48 Ripening of tax deed title by prescription.

(a) A title under a tax deed properly executed at a valid and legal sale prior to July 1, 1989, shall ripen by prescription after a period of seven years from the date of execution of that deed.

(b) A title under a tax deed executed on or after July 1, 1989, but before July 1, 1996, shall ripen by prescription after a period of four years from the execution of that deed. A title under a tax deed properly executed on or after July 1, 1996, at a valid and legal sale shall ripen by prescription after a period of four years from the recordation of that deed in the land records in the county in which said land is located.

(c) A tax deed which has ripened by prescription pursuant to any provision of this Code section shall convey, when the defendant in fi. fa. is not laboring under any legal disability, a fee simple title to the property described in that deed, and that title shall vest absolutely in the grantee in the deed or in the grantee's heirs or assigns. In the event the defendant in fi. fa. is laboring under any legal disability, the prescriptive term specified in this Code section shall begin from the time the disabilities are removed or abated.

(d) Notice of foreclosure of the right to redeem property sold at a tax sale shall not be required to have been provided in order for the title to such property to have ripened under subsection (a) or (b) of this Code section.

This section is not intended to exempt property sold for taxes from taxation for seven years after it was so sold or until it was redeemed. It simply provides a method for perfecting title to property sold under an execution for taxes. Patterson v. Florida Realty & Fin. Corp., 212 Ga. 440, 93 S.E.2d 571 (1956).

11.   May I take Possession of the Property with only a Tax Deed?

No.   A tax deed does not grant the owner/holder the right to take possession of the property.  The only time you may safely take physical possession, is after you have foreclosed the right of redemption.  See, Elrod v. Groves, 42 S.E. 731, 116 Ga. 468 (1902).  (The purchaser of land at a tax sale is not entitled to be placed in possession until after the time for redemption has expired.)

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