What is a Tax Deed?

Answer: A tax deed used to convey title to property sold by the government because of non-payment of ad valorem property taxes.

Almost every state in the U.S. sells delinquent tax properties by Tax Deed. These properties are often sold at incredible savings to the purchaser. If a property owner fails to pay his property taxes, the taxing authority will offer the property up for sale at an auction or through a negotiation process. These properties are offered to the public.

The taxing authority may be the state, the county, a city or a municipality. The owner of the property will receive a number of warnings that unless the back taxes, penalties and interest are paid by a certain time, the property will be sold.

Tax deed investors purchase the actual property. They are not looking for a return in the form of an interest rate. They may be able to obtain the property just for back taxes, interest and penalties.

Tax liens are another method of purchasing tax defaulted property. Tax lien investors are interested in interest rate returns. But they can also obtain property if the owner does not redeem within a stated period of time.

We will look into both options.

Marion