Tax sale
Encyclopedia
A tax sale refers to property (usually real property
) being sold by a tax
ing authority or the court to recover delinquent taxes. In the tax sale arena, the taxing jurisdiction is usually the county (the parish in the case of Louisiana, or cities, towns, townships (commonly in the New England
states area) - even school districts initiate tax sales in Texas).
Two main methods are used by counties to capture delinquent real property tax: tax deed auctions/sales
, or tax lien certificate sales/auctions
. These types differ in what is being sold and how (if any) transfer of title or interest is handled.
Real property
In English Common Law, real property, real estate, realty, or immovable property is any subset of land that has been legally defined and the improvements to it made by human efforts: any buildings, machinery, wells, dams, ponds, mines, canals, roads, various property rights, and so forth...
) being sold by a tax
Tax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
ing authority or the court to recover delinquent taxes. In the tax sale arena, the taxing jurisdiction is usually the county (the parish in the case of Louisiana, or cities, towns, townships (commonly in the New England
New England
New England is a region in the northeastern corner of the United States consisting of the six states of Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut...
states area) - even school districts initiate tax sales in Texas).
Two main methods are used by counties to capture delinquent real property tax: tax deed auctions/sales
Tax deed sale
A tax deed sale is the forced sale, conducted by a governmental agency, of real estate for nonpayment of taxes. It is one of two methodologies used by governmental agencies to collect delinquent taxes owed on real estate, the other being the tax lien sale....
, or tax lien certificate sales/auctions
Tax lien sale
A tax lien sale is the sale, conducted by a governmental agency, of tax liens for delinquent taxes on real estate. It is one of two methodologies used by governmental agencies to collect delinquent taxes owed on real estate, the other being the tax deed sale....
. These types differ in what is being sold and how (if any) transfer of title or interest is handled.