Tax sale
A county-run sale of properties with long-unpaid property taxes. Investors buy either the tax lien or the deed itself, depending on the state's system.
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Part 1 of 4
Why a seller cares
Years of unpaid property taxes end in a county sale of the lien or the deed. For a seller it is a deadline hidden behind a bill; for a buyer of tax-sale property, it is a title with questions attached.
Part 2 of 4
A simple example
Three years of unpaid taxes on an inherited house you never visited. The county sells a tax lien certificate, and the redemption period is running.
| What the county sells | What follows |
|---|---|
| A tax lien certificate | An investor holds the lien; the owner can redeem with interest for a set time |
| The deed itself | The buyer takes the property, subject to the state's redemption rules |
| Redemption by the owner | The taxes, interest and costs are paid and the sale is undone |
A tax sale is the county collecting by selling. Redemption is the owner's last window.
Part 3 of 4
What people get wrong
That a mortgage lender pays the taxes. Only if the loan has an escrow account; otherwise the county's lien grows until somebody notices.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
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