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Tax Deed - Statute Of Limitations For Tax Deed Holder To Sue For Possession: Rioprop Holdings, LLC V. Compass Bank, Et Al.

Rioprop Holdings, LLC v. Compass Bank, et al., [Ms. 2160673, Jan. 12, 2018] __ So. 3d __ (Ala. Civ. App. 2018). This unanimous decision by Presiding Judge Thompson (Pittman, Thomas, Moore, and Donaldson, JJ., concur) affirms the Baldwin Circuit Court’s judgment in favor of Compass Bank and Walter K. Striplin in an action involving a dispute over ownership of a unit at The Dunes condominiums in Gulf Shores. Striplin was the title owner of the property in 2007 and Compass held a mortgage on the property. Ms. *2. Striplin failed to pay the 2007 property taxes and the Baldwin County Revenue Commissioner conducted a tax sale of the unit. Plymouth Park Tax Services (Plymouth) purchased the property for a little over $36,000 at the tax sale. Ms. *2. Plymouth obtained a tax deed on the property in 2011, but never went into actual possession of the property. In February of 2016, Plymouth’s assignee filed a civil action in an effort to enforce an interest in the property. Ms. *3.

The Baldwin Circuit Court entered a judgment in favor of Striplin and Compass Bank dismissing the claims for ejectment and quiet title. The court affirmed the judgment citing § 40-10-82, Ala. Code 1975, which provides that “‘no action for the recovery of real estate sold for the payment of taxes shall lie unless the same is brought within three years from the date when the purchaser became entitled to demand a deed therefor.’” Ms. *7.

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