Tax Deed

A tax deed is a legal document that gives the purchaser ownership of a property after the property owner has failed to pay property taxes. The process of obtaining a tax deed is called tax foreclosure.

The first step in the tax foreclosure process is for the taxing authority to send a notice of delinquent taxes to the property owner. If the taxes are not paid within a certain period of time, the taxing authority will file a lien against the property. The lien gives the taxing authority the right to sell the property to satisfy the debt.

If the property is not sold at a tax sale, the taxing authority may choose to sell it through a private sale. The proceeds from the sale are used to pay the delinquent taxes, costs of sale, and any other fees or expenses. If there are any remaining funds, they are returned to the property owner.

If the property is not sold at a private sale, the taxing authority may choose to keep the property for its own use. This is known as tax forfeiture.

A tax deed is a powerful tool that can be used to acquire real estate at a discount. However, it is important to be aware of the risks involved before pursuing this option. For example, the property may be in poor condition or may have environmental or other problems. Additionally, the process of obtaining a tax deed can be time-consuming and expensive.

If you are considering purchasing a property through a tax deed, it is important to consult with an experienced real estate attorney to make sure you understand all of the risks involved.