What is the most important thing to know when purchasing a propertyat a tax sale?
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What is the most important thing to know when purchasing a propertyat a tax sale?
I’m looking to deposit a sum of money on a tax sale property. I’m being told that I’ll need to relinquish the deposit for 1 year before the property is actually mine. If the person I’m buying it from does not interfere with the sale, after a year, the property becomes mine. If he does renege on the sale he will owe me a return of my original deposit as well as a 10% fee based on the deposit amount. I’m also told that I must provide the entire purchase price as the deposit. What might the consequences be if I need to cancel the sale?
Asked on September 27, 2011 under Real Estate Law, Indiana
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Under statute in each state if you ourchase real proeprty at a tax sale, the former owner has a one (1) year period in which to redeem the costs of the purchase and if so, he or she will end back with legal title to the property.
If you end up purchasing the real property at the upcoming tax sale and do not come through with the purchase price to have title transferred to you, the county tax collector in the county where the proeprty is located could very well file a lawsuit against you for the money you bid for the property (if successful) under statute. Potentially under statute the county tax collector could also obtain attorneys fees against you if successful to enforce the bid sale.
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