Cures for a Bad Tax Sale

The Supreme Court of Alabama’s decision in Ex parte Ross confirms three years of continuous adverse possession after the purchaser becomes entitled to a tax deed cures a defective or void tax sale, and if the owner sues for redemption, that waives the claim of a bad sale.

When the Three‑Year Period Begins

The three‑year cure period begins only when the purchaser becomes entitled to demand a deed, which occurs three years after the sale, and only if the purchaser is in actual adverse possession. Possession must be open, notorious, exclusive, hostile, and continuous. Meaning actual physical possession. In Ross, the purchaser took possession immediately after the sale and maintained it without interruption. However, the estate’s redemption action was filed in May 2023 which was less than three years after the tax deed matured. (The issue of possession was not raised by Ross as a defense, so he waived that defense and lost the property to redemption.)

Defects Become Irrelevant After Three Years

The Court reaffirmed that once the three‑year adverse‑possession period runs, the purchaser’s title becomes immune from attack. Defective notice, irregular assessments, voidable sales, and other procedural flaws are extinguished by the combination of deed‑entitlement and continuous adverse possession. The law rewards purchasers who take possession promptly and maintain it consistently. Once the cure period has matured, the purchaser’s title is perfected by operation of law, and the former owner’s rights are extinguished.

Filing for Redemption Waives Any Challenge to the Sale

A critical clarification in Ross is that when an owner files a judicial‑redemption action, the owner waives the right to challenge the validity of the tax sale. Judicial redemption is a remedy that presupposes a valid sale and treats the tax purchaser as holding a defeasible title. Because of this, an owner cannot simultaneously redeem and argue that the sale was void. The Court held that the estate in Ross forfeited any challenge to the sale’s validity the moment it elected to pursue judicial redemption. This waiver rule is a powerful protection for investors because it forces the owner into a single, narrow path that accepts the sale as legally effective.

Why the Estate’s Claim Survived in Ross

The estate’s redemption claim survived for one reason only: the purchaser had not yet completed the three‑year adverse‑possession cure period. The filing of the redemption action did not toll or interrupt the short statute. It did not preserve a challenge to the sale. It did not stop the clock. The only reason the estate could redeem was that the purchaser’s cure period had not yet matured. Had the purchaser completed the three‑year period before the estate filed, the redemption action would have failed outright, and the purchaser’s title would have been perfected.

Investor Takeaway

For Alabama tax‑deed investors, the lesson is clear. Take possession early, maintain it continuously, and track the deed‑entitlement date carefully. Get your deed and record it as soon as you can. Once three years of adverse possession have run after that date, your title becomes unassailable even if the tax sale was flawed. And if the owner files for judicial redemption before the cure period matures, that filing helps you too, because it waives any argument that the sale was invalid. Ex parte Ross confirms that time and possession are the ultimate cure for a bad tax sale.

Gregory Stanley is an Alabama Land lawyer

Gregory@Stanley-law.com