Related Definitions
What is a Tax Deed?
A deed that designates ownership of a property after it has been seized by a city or county government for lack of payment.
A legal document that conveys property ownership to a buyer after the previous owner fails to pay property taxes, resulting in a tax lien being enforced. Tax deeds are typically issued after a foreclosure sale, where the property is sold to recover unpaid taxes. Buyers of tax deeds may face risks, such as the potential for prior owners to redeem the property or existing liens that could affect their ownership rights. Tax deeds can be an opportunity for investors but require due diligence.
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