Tax sale glossary
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.
Go deeper: Due diligence before a tax sale.
Related terms
- 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.
- County-held certificate
- A Florida tax certificate that received no bid at the annual sale and was struck to the county at the full 18 percent. Any buyer can purchase it over the counter afterward at face value plus 1.5 percent per month plus a fee.
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
Open a state to watch these concepts play out in an actual sale calendar and rule set.