A tax deed is a legal document that grants ownership of a property to a government body (County in this case) when the property owner does not pay the taxes due on the property (delinquent) . A tax deed gives the County the authority to sell the property to collect the delinquent taxes and transfer the property to the purchaser. Such sales are called "tax deed sales" and are usually held at auctions.

Texas holds tax foreclosure sales or tax deed sales on the first Tuesday of every month at the county, the state does not have tax lien certificate sale.

When attending the tax lien sale, bring an acceptable form of payment, such as cash or cashier’s check, and then bid on tax lien properties. If the investor presents a winning bid, then he or she will pay the county, and the county will then issue a Sheriff’s Deed for the property purchased. Delinquent tax property deeds are sold to the highest bidder.

Bring acceptable for of payment – cash or cashier’s check before bidding on properties. An investor can win a bid by being highest bidder on delinquent tax property deed. The county will issue Sheriff’s deed for the property to the highest bidder.


According to Texas Tax Code, “the sale is to the highest bidder that is willing to tender an amount that is less than the lesser of the market value of the property as specified in the warrant or the total amount of taxes, penalties, interest, costs, and other claims for which the warrant was issued”. (Sec. 34.01, Sec. 34.02). The cost requirements are described as part of the minimum bid requirement includes the costs of the sale, including advertising costs, and any related court costs. The statutes specified no other costs.


Texas offers tax deeds with a 6 month right of redemption on non-homestead, nonagricultural & non-mineral rights real estate and 2 years for homestead, agricultural and mineral rights real estate (HAM). However, after a property is sold at a tax deed sale, the owner still gets a 6-month (or 2 years) redemption period to buy back the property before you can obtain clear title. If the original property owner comes up with the money before the time is up then the investor does not get the property. It’s still very lucrative for the investors because 25% per year profit can happen in three days or three months.


Some investors may take a ‘lazy’ route and not physically inspect a property. Although County Tax Sale App (CTSA) provides pictures of each property, it’s best interest of the investor to drive-by each property they are interested in bidding at the auction. What is the house like? Is it in good shape? Is there any obvious exterior damage? The condition of the yard can also give you a good idea of what the house’s inside is like. A well-kept yard means the inside is likely in good shape. A yard that’s a mess indicates the homeowner feels the same about the interior. What is the neighborhood like? If you get the house, can you easily sell it or rent it? If you are buying a house to live in, is that house you want to live in and a neighborhood you like?

Unfortunately, you’re probably not going to be able to actually go in the house for a physical inspection.

There is a risk to purchasing property without prior title or bankruptcy searches. For example, federal (IRS liens) can take priority over tax lien holders in cases where the original owner of the property declares bankruptcy.


Tax deeds can be a very lucrative strategy for buying, holding, and selling real estate property as an investor is able to purchase properties at a significant discount. One of the main reasons why the strategy is attractive is due to the redemption period reimbursement rate of 25%, so even if the owner buys back the property, the investor has made a guaranteed positive return on investment. Understanding the processes of the auction and researching the properties prior to the sale will help ensure profitable transactions.