The Vastness of the Law

Tax Sales And The Legalities Surrounding Them

There are many legalities associated with property that is acquired through a tax sale. A real estate lawyer can represent a buyer or a former property owner. Tax deed sales and tax lien sales are both real estate selling processes that involve satisfying an existing tax bill and transferring the property to a new owner.

Tax Deed Sales

The deed to a piece of property is a legal document that declares who is the rightful owner of a parcel of land. A tax deed sale may reflect upon the exchange of developed or undeveloped land and existing structures. An individual who has not paid their property taxes will eventually be deemed delinquent. When delinquency extends past a specific date, a tax deed sale may be imminent. This type of sale will be open to the public.

An auction format is typically used for a tax deed sale. Upon the completion of this type of sale, ownership of the property will need to be transferred. A right of redemption allows a former property owner to repay what is owed. A lawyer can advise a deed purchaser. They will explain their rights to the property and will specify how long a former owner has to satisfy the monetary amount that was owed on the land. A lawyer may also represent a former property owner, providing them with sound advice.

Tax Lien Sales

Tax lien sales are similar to tax deed sales. A lawyer is required when the property that is acquired through a tax lien is going to be transferred. A lien is placed upon property when a federal tax bill hasn't been paid. The IRS (Internal Revenue Service) will take ownership of a piece of property that a delinquent taxpayer owns. A lien can be placed on a residence, a business, a boat, or other property.

The owner of a piece of property must be formally notified of an impending tax lien sale. The individual will have a specific amount of time to respond. They may decide to consult with a real estate attorney. An attorney will go over the lien with them and tell them how much money they must pay to regain legal ownership of the property. A lien sale may be held in person or online. The highest bidder will acquire the property. The former owner can meet with their attorney and discuss the proper channels to go through to get their property back. 

For more information, contact a local firm like Law Office of Crystal L Johnson.