Legal Practice Tip: Who May Redeem from a Tax Sale

On April 26, the Court of Appeals for the Western Section announced their decision in the case of MADISON COUNTY, TENNESSEE, ET AL. v. DELINQUENT TAXPAYERS FOR 2012, ET AL., maintaining that one attempting to redeem from a tax sale pursuant to TCA § 67-5-2701(a)(3)(C) needs to have their interest in the property both on the date the tax sale occurs as well as on the date the motion to redeem is filed. The statute reads:
 
“Person entitled to redeem” means, with respect to a parcel, any interested person, as defined in this chapter, as of the date of the sale and the date the motion to redeem is filed[.]
 
This position is contra to the position taken by the Eastern Section of the court in CITY OF CHATTANOOGA, ET AL. v. TAX YEAR 2011 CITY DELINQUENT REAL ESTATE TAXPAYERS where the court allowed a redemption from someone who purchased the redemptive right after the tax sale. The most recent case attempts to reconcile the divergent rulings based upon their opinion that the Chattanooga case was based upon a prior version of the cited statute (see footnote 3 in the Madison County case).

Joseph "Joe" Kirkland is an attorney and Senior Escrow Officer at the East Memphis office of CloseTrak, Closing & Title Services. Kirkland is active in the Tennessee Land Title Association (Chair of the standing Legislative Committee 2017-19, Director – Board of Directors 2018-19) and the Immediate Past Chair of the Tennessee Bar Association's Real Estate Law Section.

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chattanoogacorrectpage.pdf228.79 KB
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