National Tax Funding LP v. Harpagon Co. LLC

Plaintiff held fee simple title to real property purchased at a tax sale when no interested party elected to redeem the property within the statutory redemption period, despite notice under the barment statutes.

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Appellant National Tax Funding, L.P., “NTF” appeals the trial court’s ruling that as transferee of the purchaser of real property at a sale for delinquent ad valorem taxes, appellee the Harpagon Company, LLC, “Harpagon” holds fee simple title to the property unencumbered by any competing tax liens, including those of NTF. We conclude that NTF’s interest in the subject property was terminated when it failed to exercise its right of redemption following the tax sale, despite having received notice under statute that its redemption rights would soon end. Therefore, applying the “right for any reason rule,” we affirm. Along with other entities, both NTF and third-party Heartwood 11, Inc., held tax liens against certain property located in Fulton County.1 Heartwood 11 obtained writs of fieri ficias from the Tax Commissioner, levied upon its liens and acquired tax deeds to the property. Heartwood 11 then quitclaimed the property to Harpagon. Thereafter, Harpagon served notice on the delinquent taxpayer and all others claiming an interest in the property, including NTF, asserting the statutory bar to the right of redemption. Harpagon then filed a petition to quiet title, and sought a declaration that it holds title to the property free and clear of NTF’s tax liens. NTF responded and argued that its tax liens had never been paid and therefore remained valid.

A hearing was held before the special master, who concluded that a tax sale divests all liens except the one levied upon from the property sold, so as to give the tax sale purchaser marketable title. Accordingly, the special master found that by virtue of its transferor’s tax sale purchase of the subject property, Harpagon held title to the property free and clear of NTF’s tax liens. The trial court adopted the special master’s findings and conclusions, entered judgment in Harpagon’s favor, and these appeals follow.

National Tax Funding LP v. Harpagon Co. LLC

Plaintiff held fee simple title to real property purchased at a tax sale when no interested party elected to redeem the property within the statutory redemption period, despite notice under the barment statutes.

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