Tax sale glossary
Tax lien certificate
A document representing unpaid property taxes that a county sells to an investor. The investor pays the back taxes and earns interest until the owner redeems. It is an income investment, secured by the property, that rarely turns into ownership.
Go deeper: Tax lien vs tax deed.
Related terms
- 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.
- Delinquency date
- The date unpaid property taxes become delinquent, which starts the tax sale process. In Florida, taxes become delinquent on April 1 following the year they were assessed.
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.