How to Get a Tax Deed for Real Estate

A tax deed is a written document that shows that the government has sold a piece of property to an interested buyer due to unpaid taxes on the property. In order to recoup the owed taxes, the government sells tax deeds to interested real estate buyers. Tax deeds are most frequently purchased at an auction or through an online auction website. Before the auction occurs, the owner and all lien holders receive legal notification showing that the property will be sold if the delinquent taxes are not paid. The winning bidder purchases the deed to the property which is free of all liens and mortgages.

Instructions

1. Find a state that is a tax-deed state. According to Forclosure.com, you can find states that offer tax deed properties for sale. Choose properties that meet your financial needs. Look at the minimum bid to see if it is within your price range. Locate properties that have a structure on the property by selecting the column marked "structure." Research the property address and look for the property on Google.maps. The visual image will help to verify that a house, building or structure is on the property.

2. Research details about the property. Examine neighborhood values of surrounding homes and the annual taxes due on them. Visit the property to see exactly what you will be bidding on. Analyze any current problems with the property including location, flooding and home-inspection issues. Confirm with the county treasurer that the property is clear of all liens. If in doubt, contact a title company to do a search on the tax deed property to make sure that the real estate is insurable.

3. Visit the county treasurer's office or website. Once you have located potential properties, visit that property's county treasurer's office and get a current list of tax deed properties and when they will be sold at auction. County treasure's offices often have that information available online. Research the county's newspaper four weeks prior to the scheduled auction to find the exact time and location of the auction.

4. Get instructions and rules about the auction. While on the chosen county website, get a copy of the auction procedures. Study and familiarize yourself with the regulations and requirements. Each county has its own set of tax deed auction rules.

5. Complete auction bidding forms available through the county treasurer's office. Call the county treasurer's office to see if proof of funds is required by the county. According to Worldvillage.com, some county treasurer's require you to bring at least $2,500 in cash or in a cashier's check and submit them to the county before the auction begins. If you do not win any property, the monies are refunded promptly by the county. Receive a bidder card with a number on it once you have received permission to bid in the auction.

6. Attend the auction. Do not bid on properties that you cannot afford. Research the auction procedures to determine when the payment for the tax deed must be paid. Typically, a buyer is given a couple of hours to obtain a cashier's check for the amount of the winning bid. Some counties require immediate payment.

7. Receive a "Treasurer's Deed" or a "Sheriff's Deed" from the respective county department a few weeks after the property is purchased. Take possession of the tax-deeded property. Fix up, rent or sell the real estate property.

Tips & Warnings

• If there has been a resident at the property within the last six months, there is a greater chance that the property is in livable condition.

References

• Nationwide Tax Deed
• Tax Deed Auction
• Tax Deed Sales

Resources

• Downfalls of Tax Deed Sales