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Burris & MacOmber, PLLC > Articles > Property Law > Purchaser of Tax Certificate Could Get added Fees for Initial Fight with Owner

- Purchaser of Tax Certificate Could Get added Fees for Initial Fight with Owner -

In Leveraged Land Co. v. Hodges CV-10-0196-PR (Ariz. April 2011) the Arizona Supreme Court considered the extent that someone challenging the redemption of a tax lien may recover their attorneys fees.  ARS 42-18206 provides that if an owner redeems his property from a tax lien by paying the back taxes, but does so only after a suit to foreclose his interest has been filed, he will be liable for the attorneys fees incurred by the holder of the tax certificate.  The proceedings in the lower court were a bit convoluted, but after the owner redeemed the property, the holder of the tax certificate continued to challenge the redemption in court, eventually seeking over $150,000 in attorneys fees.  The Superior Court judge awarded $1,5000 and the appeal ensued.  The Court of Appeals was prepared to grant the larger claim for fees, but the Arizona Supreme Court said no.  The holder of the tax certificate could only be reimbursed for fees incurred in the initial fight with the owner over the redemption.

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