Tax sale glossary
Marketable title
Title clean and clear enough that a normal buyer will accept it and a title company will insure it. A tax deed does not convey marketable title on its own, which is why deed buyers usually need a quiet title action before they can resell or insure the property. It does not mean you cannot own the parcel, only that clearing the title takes an extra step.
Go deeper: Due diligence before a tax sale.
Related terms
- Tax deed
- The instrument that conveys a property sold at a tax deed auction. Winning a tax deed can give you ownership, but it does not come with clean, insurable title, so a quiet title action is often needed before resale.
- Quiet title action
- A lawsuit that establishes clear, marketable title to a property. Tax deed buyers often need one because a tax deed alone is not insurable title. It takes months and costs money, and it should be budgeted into any deed purchase.
- ACH (bank transfer)
- Automated Clearing House: the electronic bank-to-bank transfer most auction sites use to collect deposits and final payments. ACH is not instant. Counties typically require your deposit to clear several business days before the sale, so funding late can lock you out of bidding.
- Bid-down-interest
- A lien-sale auction format where bidders compete by accepting a lower interest rate rather than paying more. The auction starts at the statutory maximum and the rate is bid down; the lowest rate wins. Florida uses this method, starting at 18 percent.
Tax Sale Atlas publishes educational information about public tax sale processes. This is not legal, financial, or investment advice. Rules, dates, and fees change; confirm with the county office before you bid.
See the term in a real sale
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