Glossary

Tax sale

A public auction a county holds to collect delinquent property taxes, selling either a tax lien certificate or the property itself.

Definition

A tax sale is a public auction a county holds to collect delinquent property taxes. Depending on the state, the county sells either a tax lien certificate on the property or the property itself through a tax deed.

Before the sale, the county publishes a list of parcels, the amounts owed and the auction date, often weeks ahead in a newspaper and on the treasurer or tax collector website. Many parcels drop off before the auction because owners pay, enter a payment plan or file bankruptcy. In Los Angeles County, for example, an owner must pay all defaulted taxes by the last business day before the auction, and there is no extended right of redemption after the sale. Many counties now hold tax sales online. For investors who want to buy directly, the published list is a short window to reach owners who may prefer selling and keeping their equity to losing the property at auction.

Source: ttc.lacounty.gov

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