What is the most important thing to know when purchasing a propertyat a tax sale?

UPDATED: Sep 27, 2011

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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


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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