Tax sale glossary
Tax lien
A tax lien is the government's legal claim against a property for unpaid property taxes, penalties, interest and collection costs. The lien attaches t…
Tax lien certificate
A tax lien certificate is the document an investor receives when they pay a property's delinquent taxes at a county tax sale. It records the parcel, t…
Tax deed
A tax deed is the deed an investor receives when they buy a property itself at a tax deed sale, or after a lien forecloses. It conveys the county's ta…
Tax deed sale
A tax deed sale is a public auction where the county sells the property itself to collect delinquent taxes. Bids open at a statutory minimum — typical…
Redemption period
The redemption period is the time window during which a property owner can reclaim their property after a tax sale by paying the full amount owed — ta…
Right of redemption
The right of redemption is the property owner's legal right to get their property back after a tax sale by paying everything the law requires — the sa…
Quiet title
A quiet title action is a lawsuit asking a court to declare the tax-sale buyer the true owner of a property and extinguish competing claims from forme…
Surplus funds / excess proceeds
Surplus funds (excess proceeds, overage) are the amount a tax sale brings in above the taxes, penalties, interest and costs owed. The surplus is not t…
Opening bid
The opening bid is the statutory starting price at a tax sale — the minimum the first bid must meet. It is usually built from the taxes, penalties, in…
Premium bidding
Premium bidding is an auction format where buyers bid the price up above the amount owed, rather than bidding an interest rate down. The premium is th…
Bid-down interest
Bid-down interest is an auction format where the interest rate itself is the bid: investors compete by accepting a lower rate, and the lowest rate win…
Over-the-counter (OTC)
Over-the-counter (OTC) sales sell tax liens and properties that received no bids at the public auction, afterward, at set published terms on a first-c…
Strike-off / struck-off list
A strike-off (struck-off) list is the inventory of liens or properties that received no bids at a tax sale and were taken by the government itself — '…
Tax certificate sale
A tax certificate sale is the public auction at which a county sells tax lien certificates for delinquent parcels. Investors pay the taxes owed; in bi…
Tax foreclosure
Tax foreclosure is the legal process that converts a delinquent tax claim into a sale or deed when the owner does not pay. Depending on the state it i…
Delinquent taxes
Delinquent taxes are property taxes that remain unpaid after their statutory due date. Delinquency triggers penalties and interest, the recording of a…
Assessed value
Assessed value is the county's official valuation of a property for tax purposes, produced by the property appraiser or assessor through mass appraisa…
Marketable title
Marketable title is title a reasonable buyer (and their lender and title insurer) will accept without unusual risk of litigation or loss. A tax deed u…
Title insurance (tax deed context)
Title insurance is a policy protecting a buyer or lender against covered defects in a property's title. In the tax deed context, insurers usually will…
Land bank
A land bank is a public or quasi-public entity that acquires, holds and redevelops tax-foreclosed and vacant property — often receiving parcels that f…
Upset price
An upset price is a minimum acceptable price for a property at a tax sale — the floor below which the sale cannot be completed. Hawaii uses the term e…
Judicial vs. non-judicial sale
A judicial tax sale is conducted through a court case — a judge oversees foreclosure and the sale is confirmed by the court. A non-judicial (administr…
Tax sale list
A tax sale list is the county's published catalog of properties to be sold: parcel numbers, owners, amounts owed or opening bids, and sale information…
Assignment (of a lien)
An assignment is the transfer of a tax lien certificate from its original purchaser to another investor. Assignments create the secondary market for t…
Ready for the mechanics? The FAQ hub answers how these terms interact, state by state.