How tax deed sales work
Information only, not investment or legal advice. Sale dates, terms and deadlines change; always confirm with the county before you register or bid.
At a tax deed sale, the county sells the property itself to collect unpaid taxes. It's the closest thing to buying real estate at a government auction, and it moves fast.
Before the sale
Counties publish the list of properties, often with a parcel number, address and opening bid. Owners can usually still pay and stop the sale up to the last minute, so properties drop off the list often.
The opening bid
The opening bid usually covers the back taxes, interest, and the county's costs. Bidding goes up from there. Anything paid above what's owed (the surplus) is generally held for the former owner or lienholders, depending on state law.
Winning and paying
Most counties require a deposit to register or right after you win, and the rest within a short window, sometimes the same day or within 24 to 48 hours. Many accept only wire transfers or certified funds. If you miss the deadline, you typically lose your deposit and may be barred from future sales. The county's terms of sale spell this out; read them before you bid.
The deed you get
The county records a deed in your name. What that deed is worth depends on the state:
- Some states treat it as clear title after the sale.
- Others let the former owner redeem for a period after the sale.
- Many title insurers won't insure a tax deed until a court action to quiet title is done, which costs time and money.
Debts that may survive
Some liens can survive a tax deed sale, such as certain government liens or other taxes. Check the official records for the parcel and ask the county or a local attorney which debts are wiped out in that state.
Possession
If someone lives in the property, you generally can't just change the locks. You may need to go through an eviction or similar court process.
See Researching a property before you bid and the calendar for upcoming sales.