Real estate title glossary

What is tax deed?

Definition

A tax deed is the deed a government issues to the buyer of a property sold for unpaid property taxes, after any redemption period has run.

States differ: tax deed states sell the property itself, tax lien states sell a lien that can ripen into a deed. Title from a tax deed is often treated as risky until a quiet title action is completed.

How it shows up in a title search

A tax deed in the chain prompts a check of the sale notices and redemption period, and of liens the sale may not have cleared.

Guides that go deeper

Source: Legal Information Institute, Wex: tax sale. Plain-English summary of general US usage; state law varies, and this is not legal advice.