Alabama Tax Lien — Lien-Landmine Checklist

What survives the sale, the redemption rules, and the checks to run before you bid. Free from DeedFlex.

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Alabama at a glance. Alabama is a tax-lien state. Redemption: 8%/yr on the bid for sales after 2020 (12% before); overbid earns interest only up to 15% of market value. Counties using the tax-lien auction bid interest down from 12%.. Window: 3 years. (Typical — verify with the county.)

Landmines What can survive the sale (you inherit these)

Federal / IRS tax liens. A properly-noticed sale extinguishes them, but the IRS keeps a 120-day right of redemption, so treat any IRS-lien parcel as elevated risk.
Governmental & municipal liens. Special assessments, CDD/POA, water/sewer, and demolition liens can survive in many states.
Code-enforcement liens. Often survive and can be large.
Easements & deed restrictions of record.
Municipal liens

15,974

Alabama parcels DeedFlex tracks & scores

HOA / condo dues: in most states (e.g. Florida, per Fla. Stat. 197.552) a properly-noticed tax deed extinguishes prior private HOA assessments. But treatment varies by state, and governmental CDD/POA assessments can survive. Verify with the association and county.

Usually cleared What the sale typically clears

Private mortgages & deeds of trust. Extinguished if the lender was properly noticed.
Most junior judgment liens. Wiped if the lienholder was noticed.
The prior owner's interest. Subject to their redemption right until it expires.

Your pre-bid checklist

Pull the parcel record from the County Property Appraiser (value, sqft, year built, zoning).
Read the clerk's tax-sale file & notice list — who was properly noticed?
Search county records for a Notice of Federal Tax Lien (IRS liens get a 120-day window).
Pull code-enforcement & municipal lien balances from the city — in writing.
Call the HOA / condo association for the assessment status — don't trust the title report alone.
Order a pre-sale title search or ownership & encumbrance (O&E) report ($50–$200).
Confirm the redemption window, what it pays, and the auction platform / date.
Drive (or street-view) the property and the block.

How investors think about the numbers

A low opening bid alone doesn't make a deal work. A conservative max bid is about 70% of after-repair value, minus rehab, minus any surviving liens, minus a title-clearing reserve ($1,500–$5,000 quiet title in most states). Run your exact numbers on the free DeedFlex Deal Analyzer.

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Educational use only — not legal, tax, or investment advice. Alabama lien-survival, redemption, and notice rules vary by county and change over time; anything here is general and may not reflect current law or your specific parcel. Always verify liens, title, redemption status, and auction rules directly with the County Clerk, the taxing authority, and a licensed attorney before bidding. DeedFlex surfaces public-record data and makes no guarantee of accuracy, completeness, or any investment outcome.

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