HEATHER WALKER
Chief Deputy
CARLA JACKSON
Tax Commissioner
TAX SALE
COBB COUNTY TAX COMMISSIONER’S OFFICE
BOOKLET
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BOOKLET
DISCLAIMER
This publication is designed to answer questions and provide an insight
into the legal framework that gives the Cobb County Tax Commissioner
the authority to conduct a real estate tax sale in the state of Georgia. The
material in this booklet is not intended as a substitute for professional
advice or assistance.
We encourage prospective purchasers at a tax sale to consult an attorney.
Keep foremost in mind that it is up to the purchasers at a tax sale to
assure themselves as to the soundness of the sale and the deed to be
acquired at the sale. No warranties are given or implied and clear title is
not contemplated.
Our primary concern is the payment of delinquent taxes. The conveying
of property, or rights to property, is coincidental.
Applicable references to the Oicial Code of Georgia (O.C.G.A.) are given
both as a source of authority and to add to a clear understanding of how
real estate tax sales in the state of Georgia work.
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As tax sale purchasers, you are responsible for knowing the law regarding
tax sale purchases and should familiarize yourself with all the applicable
laws.
You are reminded that a tax deed only conveys “defeasible” title to
property. To acquire fee simple title to property, a tax deed purchaser
must foreclose the right to redeem pursuant to state law.
The legal axiom of caveat emptor or “buyer beware” applies to tax sales
(O.C.G.A. § 9-13-167). Therefore, you are charged with knowledge of the
titles of the properties that are sold and any defects in these titles.
The Cobb County Tax Commissioner does not warrant the titles and any
title search done for the Tax Commissioner should not be considered an
opinion of title to rely on for tax sale purchasers.
The Cobb County Tax Commissioner reserves the right to void any tax
sale that is later determined to have errors that make the sale invalid.
The Tax Commissioner cannot and does not guarantee any expected
gain on your investment.
ATTENTION
Prospective Tax Sale Purchasers:
We do not have the answers to all
of your property related
questions.
INTRODUCTION
There are many questions regarding the property that we cannot answer;
therefore, the person interested in the property must nd these answers
in other oices and records. For example, we do not know building code
requirements. We do not know whether county sewer lines serve any
particular area or street. We have no way of knowing whether a particular
parcel or lot will be approved for a building or a septic tank. We are not
always aware of easements.
An important point that must not be overlooked by the purchaser at a tax
sale is that other taxes might be unpaid. If the parcel of land is located in
a city that collects their own taxes, the city taxes could be unpaid as well.
It is also possible that additional county taxes have become delinquent
since proceedings rst began on the parcel you are considering.
Can you lose money? Maybe! We don’t really know. We always recommend
that anyone contemplating purchasing at a tax sale consult an attorney,
assure oneself that the title is good, verify the information we have
gathered, read those sections of Georgia law pertaining to tax sales, and
attend our sales to be familiar with the proceedings.
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The Cobb County Tax Commissioner’s Oice follows certain procedures
when it levies upon a piece of property. These procedures are prescribed
by the Oicial Code of Georgia Annotated (O.C.G.A.). You will see code
sections referenced throughout this booklet. These references are a
starting point for your research and are by no means a complete listing.
We strongly suggest you read those sections of Georgia law which pertain
to Tax Executions and Tax Sales. O.C.G.A. Title 48 - Revenue and Taxation,
Chapter 3 - Tax Executions and Chapter 4 Tax Sales contain important
information that you must be aware of.
Fieri Facias (Fi. Fa.)
A fi. fa. (short for eri facias, a Latin term meaning “cause it to be done”
and also used interchangeably with Tax Execution or Execution) is a
tax lien or writ, authorizing the Sheri or Ex-Oicio Sheri to obtain
satisfaction of unpaid taxes by levying on and selling the delinquent
taxpayer’s property. These documents are recorded on the General
Execution Docket (“GED”) of the Clerk of Superior Court (O.C.G.A. § 48-3-
1 and § 48-3-3).
TAX SALE
PROCEDURES
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Authority to Sell
The Tax Commissioner of Cobb County also serves as Ex-Oicio Sheri
of Cobb County. As Ex-Oicio Sheri, she may appoint Ex-Oicio Deputy
Sheris to act on her behalf in tax sale matters. Each Ex-Oicio Deputy
Sheri has full power to advertise and bring property to sale for the
purpose of collecting taxes due the state and county (O.C.G.A. § 48-2-55
and § 48-3-6).
Taxes due the state and county are not only against the owner but also
against the property, are superior to all other liens and shall be paid before
any other debt, lien, or claim of any kind. Taxes constitute a general lien
upon all property of a taxpayer and the lien attaches on January 1st of
each tax year, even though a . fa. has not been issued (O.C.G.A. § 48-2-
56 and § 48-5-28).
30 Day Notice Before Issuing Fi. Fa.
Aer the last day for payment of taxes, the Tax Commissioner shall
notify the taxpayer in writing that the taxes are outstanding, and unless
taxes are paid within thirty (30) days, an execution (. fa.) will be issued
(O.C.G.A. § 48-3-3(b)).
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Issuance & Recordation of Fi. Fa.
At any time aer the 30 day notice period has elapsed, the Tax
Commissioner shall issue an execution (. fa. or tax lien) against the
owner and the property which shall be recorded in the Cobb County
public records. The execution (. fa.) is directed “to all and singular
sheris of this state” (which means Sheris or Tax Commissioners who
serve as Ex-Oicio Sheris) and shall direct them to seize and sell the
property of the delinquent taxpayer to satisfy the delinquent taxes. The
property shall be plainly described on the execution (. fa.) (O.C.G.A. §
48-3-1).
The execution also bears interest at the rate of 3% per month from the date
the tax was due. The execution (. fa.) is signed by the Tax Commissioner
as Ex-Oicio Sheri or may be signed by the Sheri in a county where
the Tax Commissioner does not serve as an Ex-Oicio Sheri (O.C.G.A. §
48-2-40 and § 48-3-8).
Levy
When real estate is levied upon, the levy oicer, appointed as an
Ex-Oicio Deputy Sheri, is directed by a tax execution to seize and sell
the property to satisfy the delinquent taxes. The Ex-Oicio Deputy Sheri
must give 20 days written notice before advertising to the owner, tenant,
record owner of the property and the record owner of each security deed
and mortgage aecting such property (O.C.G.A. § 48-3-1 and § 48-3-9).
This levy notice is delivered by certied mail, and if we cannot aect
service by certied mail (mail returned unclaimed or undeliverable),
this notice is delivered to the owner and/or tenant in person. The levy
shall state the owner’s and/or mortgage holder’s name, the tax years
delinquent, the principal amount of taxes due, the accrued cost due, and
a description of the property to be sold (O.C.G.A. § 48-3-9, § 48-3-10, and
§ 9-13-13).
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Pointing out Privilege
If the property being levied upon is a house and lot, then the Tax
Commissioner routinely seizes it all. However, if a large parcel is being
levied, it may not be prudent to sell all of it, and a portion may be set
aside for levy purposes. The delinquent taxpayer may select the property
to be sold. This is known as the “pointing out privilege”. However, it is
at the discretion of the Ex-Oicio Deputy Sheri to levy on additional
property whenever it is deemed necessary to secure prompt collection
of delinquent taxes (O.C.G.A. § 48-3-4).
Advertising
All properties set to be auctioned for delinquent taxes are
advertised for four (4) consecutive weeks prior to the sale. These
advertisements are placed in the legal section of the Marietta Daily
Journal under the heading: Tax Commissioner. Their website is
www.mdjonline.com (O.C.G.A. § 9-13-141).
10 Day Notice to Owner
At least 10 days before the tax sale, the owner is sent an additional
written notice by certied mail informing them of the impending tax sale
with a copy being sent to the appropriate tax oicial of the state, county,
or municipality which also has issued an execution with respect to such
property (O.C.G.A. § 48-4-1).
Starting Bids List
A list of properties for sale is also available online, this list is updated as
payments are received.
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Tax Sale
Our tax sale is held on the rst Tuesday of the month (in the months
we decide to hold a tax sale), between the hours of 10 AM and 4 PM, on
the steps of the Superior Court building, also known as Flournoy Park,
(except when the rst Tuesday of the month falls on a legal holiday, the
sale is held the next day, Wednesday) (O.C.G.A. § 9-13-161).
The opening bid for a particular property is the amount of tax due, plus
penalties, interest, . fa. cost, levy cost, administrative levy fee, certied
mail cost, advertising cost, and tax deed recording fees. The property
is sold to the highest bidder. If no one bids at least the amount due the
county for the property, the Tax Commissioner has the authority to oer
the property for sale again, at 3 PM on the sale date.
Payment
Immediately following the conclusion of the tax sale all purchasers must
remit payment in full to the Cobb County Tax Commissioner. Payment
must be in the form of cash, certied check, or cashier’s check. We
also require the purchaser to sign a statement attesting to the fact that
certain property was purchased for a certain price. Aer all payments
are processed we begin preparation of the Tax Deed and the Real Estate
Transfer Tax form.
According to O.C.G.A. § 9-13-170, any person who becomes the purchaser
of any real or personal property at any sale made at public outcry who
fails or refuses to comply with the terms of the sale when requested to do
so, shall be liable for the amount of the purchase money. It shall be the tax
commissioner’s option either to proceed against the purchaser for the full
amount of the purchase money or to resell the real or personal property
and then proceed against the first purchaser for any deficiency arising
from the sale.
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Payment of Excess Funds
Any excess funds aer paying taxes, accrued costs, and all expenses
of a tax sale shall be paid to the person authorized to receive them
(O.C.G.A. § 48-4-5).
A letter is sent to the record owner of the property at the time of the tax
sale and to the record owner of each security deed aecting the property
and to all other parties having any recorded equity interest or claim in
such property at the time of the tax sale, advising of the tax sale and
explaining how the excess funds can be claimed. We provide the forms
to be used as a guideline for the claim. Claims by lien holders should
include a current payo statement since the excess funds paid to the lien
holder cannot exceed that amount.
If the potential exists for competing claims for the excess funds, we may
le, when deemed necessary, an interpleader action in superior court
for a determination as to who is entitled to receive the excess funds
(O.C.G.A. § 48-4-5).
AFTER THE
TAX SALE
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Right of Redemption & the Amount Payable
for Redemption
When real property is sold at a tax sale, whether to an individual or to
Cobb County, the defendant in . fa. or any person having any right, title,
or interest in or lien in the property may redeem the property from the
holder of the tax deed (O.C.G.A. § 48-4-40).
The owner, creditor, or any other person with interest in the property
may redeem the property at anytime during the twelve (12) months
following the tax sale. The purchaser of the tax deed cannot take actual
possession of the property during this time. The tax deed purchaser is
not authorized to receive rents or make improvements to any structure
on the property or grade any lot prior to this time (O.C.G.A. § 48-4-40).
If redeeming, the owner, creditor, or any other person with interest in
the property, must pay the tax deed purchaser, the amount paid for the
property at tax sale, plus 20% premium for the rst year or fraction of a
year, plus any taxes paid on the property by the purchaser aer the sale,
plus any special assessment on the property, and a 10% premium of the
amount for each additional year or fraction of a year, which has elapsed
since the date of sale plus costs. A premium of 20% must also be paid
when Cobb County is the purchaser (O.C.G.A. § 48-4-42).
When the property has been redeemed (all monies due the purchaser
paid as prescribed by law), the purchaser shall then issue a quitclaim
deed to the owner of the property (as stated on the . fa.) releasing the
property from the tax deed (O.C.G.A. § 48-4-43 and § 48-4-44).
This redemption of the property shall put the title conveyed by the tax
sale back to the owner, subject to all liens that existed at the time of the
tax sale. If the redemption was made by any creditor of the owner or by
any person having any interest in the property, the amount expended by
the creditor or the person interested shall constitute a rst lien on the
property (O.C.G.A. § 48-4-44).
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Notice of Foreclosure of Right to Redeem
Aer twelve (12) months from the date of the tax sale, the purchaser at
the tax sale may terminate or foreclose on the owner’s right to redeem
the property by causing a notice or notices of the foreclosure to be
served by certied mail to the owner of record at time of the tax sale, the
occupant and to all interest holders which appear on the public record.
In addition, the notice of foreclosure is to be published in the county in
which the property is located, once a week for four (4) consecutive weeks
(O.C.G.A. § 48-4-45).
If the redemption is not made until aer the notice has been given,
then the costs of serving the notice or notices and publishing the notice
shall be added to the redemption price to cover the cost of making the
necessary examinations to determine the persons upon whom notice
should be served (O.C.G.A. § 48-4-42).
Any questions about this foreclosure process should be referred to
an attorney.
Aer the Right of Redemption is Foreclosed
Aer foreclosing the right of redemption, we recommend that the
purchaser seek legal advice regarding the petition to quiet title in land,
pursuant to O.C.G.A. § 23-3-60.
Under the action, the petitioner (tax deed purchaser) makes a request to
the court to take jurisdiction over the matter. Depending upon the action
selected, the court may appoint a Special Master (third party) to examine
the petition and exhibits to determine who is entitled to notice. The
petitioner will then ask the court to issue a decree establishing his/her
title in the land against “all the world” and that all “clouds to petitioner’s
title to the land be removed” and that “said decree be recorded as
provided by law.”
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Ripening of the Tax Deed Title by
Prescription
The term prescription refers to a process whereby, over a period of
time a tax deed becomes a fee simple title. This process promotes an
alternative method to obtain fee simple title without the legal intricacies
of the foreclosure process (O.C.G.A. § 48-4-48).
A title under a tax deed properly executed on or aer July 1, 1996, at a
valid and legal sale shall ripen by prescription aer a period of four (4)
years from the recordation of that deed in the land records in the county
in which said land is located (O.C.G.A. § 48-4-48).
Notice of foreclosure of the right to redeem is not required in order for
the title to ripen by prescription.
It is recommended that an attorney be consulted prior to following this
process as there may be negative legal implications.
Subsequent Tax Sales
Following a tax sale, the tax sale purchaser becomes the owner of record
and is liable for the payment of all taxes assessed following the tax sale
date. This is applicable even though the defendant in . fa. and others
with an interest in the property still have a right of redemption.
Questions
If you have questions about tax sales aer reading this booklet,
please call the Delinquent Tax Department at (770) 528-8623 or
levy@cobbounty.org. For general tax information, you can visit our web
site at www.cobbtax.org.
HEATHER WALKER
Chief Deputy
CARLA JACKSON
Tax Commissioner
