Definition of Tax deed:
A property tax is any tax paid on a piece of property. Taxes are paid by the owners of real estate—individuals or corporate entities—and are assessed by the municipal government in which the property is located. The taxes collected are used to fund various municipal programs such as water and sewer improvements, law enforcement and fire service, education, road, and highway construction, public servants, and other services. Property tax rates vary by jurisdiction. When property taxes are left unpaid, the taxing authority may sell the property’s deed or title—and therefore, the property—to recover the outstanding taxes.
Legal instrument that transfers absolute title to the purchaser of a property sold for non-payment of taxes (tax sale), after the expiration of the redemption period. See also tax sale certificate.
The term tax deed refers to a legal document granting ownership of a property to a government body when the owner fails to pay any associated property taxes. A tax deed gives the government agency the authority to sell the property to collect the delinquent taxes. Once sold, the property is then transferred to the purchaser. These sales are called tax deed sales and are usually held at auctions.
How to use Tax deed in a sentence?
- A tax deed grants ownership of a property to a government body when the owner fails to pay the associated property taxes.
- Successful bidders have a minimum amount of time to pay for the purchase—usually 48 to 72 hours.
- Tax deeds are sold to the highest bidder at auction for a minimum bid of the outstanding taxes plus interest and the costs associated with the sale.
- Property owners may file a claim to receive any amount paid to the municipality in excess of the property taxes plus interest.
Meaning of Tax deed & Tax deed Definition