Real Property Tax Collections - DT Services.ppt by pptfiles


									Glossary of terms
ad valorem tax — according to value. A tax that is imposed
on the value of property, real or personal.
calendar week — a block of seven days registered on the
calendar beginning with Sunday and ending with Saturday.

defendant — the person defending or denying; the party
against whom relief or recovery is sought in an action or suit
or the accused in a criminal case.

execution — the process and/or form used for levying on and
selling enough of a delinquent taxpayer’s property to satisfy
unpaid taxes.
execution docket — tax commissioner’s execution docket or
GED in clerk of superior court’s office.
fieri facias (Fi. Fa.) — means that you “cause it to be done.”
A judicial writ directing the sheriff to satisfy a judgment from
the debtor’s property. Applies to personal and real property.
A term used interchangeably with execution.
grantee — the person to whom property is transferred (the
grantor — the person who transfers the property to another
(the seller).
in personam — the legal process directed against a person.

in rem — the legal process directed against property.
levy — the process whereby a sheriff or other state official
empowered by writ or other judicial directive actually seizes,
or otherwise brings within his or her control, a delinquent
taxpayer’s property to satisfy the judgment.
lien — a claim, encumbrance, or charge on a taxpayer’s
property to obtain payment of overdue taxes.

life estate — an estate whose duration is limited to the life of
the party holding it, or some other person. A legal
arrangement whereby the beneficiary (i.e. the life tenant) is
entitled to the income from the property during his or her life.
Upon the death of the life tenant, the property goes to the
person holding the remaining interest, or to the grantor by
nulla bona — the name of the return made by the sheriff to a
writ of execution, when he or she has not found any goods of
the defendant within his or her jurisdiction on which to levy.
quitclaim — the release of a claim.
security deed — a deed pledging property to secure a loan.

statute of limitations — statutes of the federal government
and various states setting maximum time periods during which
certain actions can be brought or rights enforced. After the
time period set out in the applicable statute of limitations has
run, no legal action can be brought regardless of whether any
cause of action ever existed.
tax deed — the deed given upon a sale of real property made
for non-payment of taxes. The deed whereby the officer of the
law undertakes to convey the title of the property to the
purchaser at the tax sale. This is sometimes called a sheriff’s
warranty deed — a deed which conveys the title to property
whereby the seller guarantees the title to be good and
unencumbered except as stated and agrees to defend and
protect the purchaser against any loss that may arise in the
future from any defect in the title at the time of conveyance.
Pre-levy collections
Letter of intent to Fi. Fa.
   1. O.C.G.A 48-3-3 (30 day letter of intent
    to issue fi. Fa.) This letter must be sent
    after the bills have gone delinquent, but
    before a tax lien can be issued,
    informing the tax payer of the
    delinquency and the possibility of a lien
    being issued and recorded against
Issue and Record Fi. Fa.
   The Tax Commissioner/City Collection
    Officer will need to issue and record a
    tax lien before any levy can occur.
Organizing Files
At this point you will want to consider partial
   payments as an option. As the collection
process continues, an administrative decision
 will need to be made as how to handle partial
    payments. Such as, do you even accept
  payments, if so, when shall a cut off period
 apply. Payment plans are rarely followed by
  the tax payer, but are a good tool to try and
      work with them before levy is made.
Organizing Files
Determine what to collect on. Make sure
  the statute of limitations does not apply.
￿ O.C.G.A. 48-3-21 Any lien older than
  seven years from the date the fi. Fa.
  could be issued or the last entry upon
  the execution.
￿ O. C. G. A. 48-3-21.1 Any lien less than
  $5.00 and over a year old
Organizing Files
3. O. C. G. A. 9-12-93 Any lien against real
   property in which the purchaser has
   been in possession for 4 years or
   personal property where the purchaser
   has been in possession for 2 years shall
   be discharged against the said property.
4. Be careful as not to violate “Excessive
   Levy” doctrine.
Organizing Files
   Run a delinquent list and determine
    what to levy and how many properties
    you can handle without overloading
    yourself. As you choose which liens to
    collect, make sure it is not a method that
    someone could consider discriminatory
    in nature. Choosing alphabetically or a
    monetary order is commonly practiced.
   Make sure you have the proper authority
    to collect. A Tax Commissioner must be
    sworn in as an Ex-Officio Sheriff
    (O.C.G.A. 48-5-137). This also allows
    for extra compensation to the Tax
    Commissioner as well. The city
    Marshall or other authorized officer shall
    collect for the city (O.C.G.A. 48-5-359).
   Before a valid levy can occur, a title
    examination must be performed on the
    property intended for collection to
    establish who to notify. This involves
    checking for current ownership, security
    interest, and any other interested parties
    that may exist in the chain of title located
    the Clerk of Superior Court’s office.
   This search will include checking the
    Grantor and Grantee Indexes. The
    General Execution Docket (GED) for
    liens including IRS, state, county, and
    city executions. The Lis Pendens for any
    law suits (divorce or land line disputes)
    involving the subject property for levy.
   Now that you have established
    interested parties by title exam, time to
    locate addresses of individuals and
    entities (corporations). Search engines
    such as Accurint, telephone books,
    Georgia Secretary of State, and FDIC
    are just a few of the places to check.
    Once you have compiled the interested
    parties to notify, the levy can begin.
   Time to make entry of levy and notify
   O.C.G.A. 9-13-12 requires an entry of levy
    be made on the face of the Fi. Fa. by the
    levying officer and date. For a levy to be
    valid, seizure must occur first. An entry of
    levy is considered a constructive seizure on
    the subject property.
   O. C. G. A. 9-13-13 Notice must be sent
    within 5 days of entry to the tenant in
    possession and the defendant in fi. fa. by
    certified mail.
   O. C. G. A. 48-3-9 requires that notice of
    levy must be sent to the record owner of
    the property and record owner of each
    security deed or mortgage holder no
    less that 20 days prior to the first week
    of advertising. At a minimum, notice
    must be sent to the address on the face
    of the recorded document. All notices
    must be sent certified mail with return
   Notice via certified mail to the IRS must
    be sent no less than 25 days prior to the
    sale (IRS Publication 786). It is common
    practice to mail this notice at the same
    time as the lien holder notice at
    O.C.G.A. 48-3-9.
•   O. C. G. A. 9-13-140 & 9-13-141
    requires advertising the property for sale
    4 consecutive weeks prior to the sale
    date. A calendar week runs Sunday to
•   O. C. G. A. 9-13-143 states rates for
    legal advertisements.
•   The ad needs to include names, years,
    & legal description. Street address may
    be used as well.
   O.C.G.A. 48-4-1 requires notice be sent
    one last time to the defendant in fi. fa.,
    current owner of record, and any
    governing jurisdictions that may have a
    lien on the property. This notice shall be
    sent no less than 10 days prior to sale
    via certified mail.
taX sale Day
Tax Sale Day
   O.C.G.A. 9-13-160 and 9-13-161 require
    that the tax sale be held the first
    Tuesday of the month between the legal
    hours of 10:00am and 4:00pm at the
    courthouse. Allows for the sale to take
    place on a Wednesday if the first
    Tuesday is a holiday. Usually the sale is
    conducted before the courthouse door.
Tax Sale Day
•   O.C.G.A. 9-13-162 allows for the sale to
    continue day to day until completed.
•   The tax sale is a “public sale” and has to
    be made available to anyone willing bid
    and tender payment. The sale will be
    held in a manner of an auction with a
    starting bid consisting of all taxes,
    penalties, interest, and cost at which
    point you will stop at the highest bid.
Tax Sale day
 It is at your discretion on how you
  accept payment and when payment is
  due. Typically cash or certified fund is all
  that is accepted day of sale.
 Once payment is tendered a Tax Deed
  will be issued and recorded in the
  Clerk’s Office.
eXcess fUnDs
   Money that belongs to everyone but
Excess Funds
 The difference between the opening bid
  and the purchase amount is considered
  excess funds. If you hold tax sales, you
  are going to have excess funds. This is
  a by product of conducting tax sales.
 O.C.G.A. 48-4-5 requires that all
  interested parties be notified by first
  class mail of any overages within 30
  days of the sale.
Excess Funds
   O.C.G.A 48-4-5 further states that the
    notice contain a description of the land,
    date sold, purchaser’s name and
    address, sale price, amount of excess
    funds, and will be made available for
    distribution to the owners as their
    interest exist. This code also allows for
    an interpleader action to be filed in
    superior court when deemed necessary
    by the levying officer.
Excess Funds
•   O.C.G.A. 48-4-5 (c) states that the
    levying officer shall pay over to the state
    DOR unclaimed properties division after
    5 years has elapsed for which no action
    or proceeding is pending in a claim for
•   You are the fiduciary of the funds. Once
    a claim is made, you must act in a timely
    manner to handle any claim or you could
    be subject to money rule interest.
   Time to give back what was purchased.
   O.C.G.A. 48-4-40 When a property is
    sold for taxes any person having right,
    title, or interest in or lien upon the
    property may redeem the property until
    that right has been foreclosed. The right
    of redemption is open for a minimum of
    12 months from the date of sale.
   O.C.G.A. 48-4-42 states the amount
    payable for redemption is the purchase
    price plus 20 percent interest of the
    purchase price during the first year and
    an additional 10 percent for each year
    there after. The purchaser can also get
    20 percent interest on any future
    assessments as well that is paid.
   O.C.G.A 48-4-44 requires that once
    redemption has occurred, the purchaser
    shall execute a quit claim deed back to
    the defendant in fi. fa. The recitals of the
    quit claim deed recite who redeemed,
    the capacity of their interest, and how
    much was paid. Once the redemption
    money is paid, the purchaser has 7 days
    to execute a quit claim deed and 10
    days to record it.
 O.C.G.A 48-4-45 and 48-4-46 deals with
  the foreclosure on the right to redeem.
 After the sale of the property, the levying
  officer is out of the picture, but it is
  necessary to know what goes on after
  tax sale should any questions arise.
 Remember, you are not an attorney and
  need to tell whomever your talking to
  that as well.

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