Liens vs. deeds

Almost every question a new buyer has starts with the same fork: are you buying a lien or a deed? Here are the five sale types you will see across the country, in plain terms.

Tax lien#

You buy the county's claim for unpaid taxes. The owner keeps the deed and the right to pay you back within a redemption period, usually with interest or a penalty. If the owner never redeems, you can apply for a tax deed — a separate, often court-supervised step.

• You are a creditor first, a property owner later (if ever).
• Your return is the interest or penalty set by law.
• Your money can be locked up for the full redemption period.

Tax deed#

You buy the property at auction. Title passes to you when the sale is complete, usually with no post-sale redemption for the former owner. The county may still hold a short window for the owner before the sale, not after it.

• You get the real estate, not a debt.
• You may need to clear title (quiet title) afterward.
• Opening bids usually start at the taxes, interest, and costs owed; competitive bidding decides the final price.

Redeemable deed#

A middle case. You receive a deed, but the former owner keeps a redemption window after the sale and can take the property back by paying a defined premium or interest. Some states set a short window for ordinary property and a longer one for homesteads or agricultural land.

• You hold title, but it is defeasible during the window.
• The premium is usually a larger one-time percentage, not annual interest.
• Occupancy and improvements during the window need care.

Hybrid#

Some states run more than one sale type. A parcel may go through a lien sale, a land sale, or a deed sale depending on the county or the statute applied. Figure out which sale a specific parcel is in before you bid.

• The same state can offer liens in one county and deeds in another.
• Bidding method, funding, and redemption can differ inside one state.

Tax title#

The town or city takes title to the property for unpaid taxes (a "tax taking"). Buyers usually get involved later, either by buying the municipality's tax title by assignment or at a later auction. The owner's right to redeem typically ends only after a court foreclosure.

• Often slower and more procedural than a traditional auction.
• The court foreclosure step is part of the process, not an afterthought.

Quick comparison#

| Sale type | What you get | Owner can redeem | Usual return | |---|---|---|---| | Tax lien | A claim on the property | Yes, during the period | Interest or penalty | | Tax deed | The property | Rarely after sale | The asset | | Redeemable deed | A deed, revocable for a time | Yes, during the window | Premium or interest | | Hybrid | Depends on the sale | Depends on the sale | Varies | | Tax title | A confirmed title | Varies | The asset |

What to check per state#

1. The sale type on the state rules page.
2. The redemption length and when it starts.
3. The interest, penalty, or premium.
4. The bid method — highest bid, bid-down, premium, or minimum bid.
5. Whether the county adds local steps such as application forms or deposits.

For a lien, your economics are the rate and the wait. For a deed, your economics are the property's condition, title, and market value.