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DRST Holdings Ltd. v. Agio Corp.

The trial court did not err in entering a decree vesting fee simple title in appellee, who purchased the property in question at a May 2004 tax sale, since the county's subsequent sale of the property to a third party in a December 2004 tax sale was void.

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In May of 2004, the property located at 1096 Hillcrest Drive in DeKalb County was sold to Appellee Agio Corp. at a tax sale conducted by the sheriff of that county. The sale was held for the purpose of satisfying some, but not all, of the tax fi. fas. that had been issued against the property for unpaid state and county taxes. However, the proceeds from this sale were sufficient to satisfy all of the outstanding fi. fas. held by DeKalb County. In December of 2004, another tax sale of the property was held in connection with the satisfaction of the remaining fi. fas. held by DeKalb County. The purchaser at this sale was Lihua Xiao. Mr. Xiao subsequently transferred his interest in the property to Appellant DRST Holdings, Ltd. Thereafter, except as against each another, Appellee and Appellant completed statutory proceedings to bar the right to redeem the property.

Appellee then initiated this quiet title action, asserting that the deed from Mr. Xiao to Appellant was a cloud on its title. Appellant answered and counterclaimed, contending that it held good title pursuant to the conveyance from Mr. Xiao. In accordance with OCGA § 23-3-63, the case was submitted to a special master who, upon concluding that the sale of the property to Mr. Xiao was void, recommended issuance of a decree which vested fee simple title in Appellee. The trial court approved and adopted the special master’s report, and entered a decree vesting title in Appellee. Appellant appeals from that order.

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