Tax Sales - Risky but Rewarding
When it comes to tax sales in Texas, what happens after the auction is just as critical as the bidding process itself. Whether you're a property owner, investor, or winning bidder, navigating the post-sale legal landscape requires precision and experience. That’s where LDG, PLLC comes in.
Our firm specializes in guiding clients through Texas’s complex tax sale laws, ensuring your rights are protected, redemption periods are properly managed, and title issues are resolved efficiently. Don’t leave your investment to chance—trust LDG, PLLC to safeguard your interests every step of the way. Continue reading to see the issues you need to look out for and how LDG, PLLC can assist you.
1. Redemption Periods Still Apply after a Tax Sale
In Texas, properties sold at a tax foreclosure auction often come with a right of redemption. This means the original owner may still reclaim the property within a certain time frame. This can go up to two years past the date the deed is recorded. To redeem the property, the former owner must pay the purchase price plus a 25% penalty in the first year, and 50% in the second year (if applicable). Buyers beware: Until the redemption period expires, you cannot be 100% certain the property will remain yours.
How LDG, PLLC can help you manage the Redemption Risks:
Clarify timelines and your legal rights during the redemption window.
Help former owners redeem their property by navigating the payment process correctly and on time.
Advise buyers/investors on how to manage risks and avoid making improvements or renting the property prematurely.
👉 Why it matters: Missteps during the redemption period could cost you ownership or money.
2. No Title Insurance – Initially
Tax sale properties are typically sold “as-is” and without warranties, including title insurance. Most title companies will not insure the title until after the redemption period has passed and a quiet title action has been completed. To clear the title, new owners may need to file a quiet title lawsuit—a legal action that confirms ownership and eliminates claims from other parties.
How LDG, PLLC can help you Clear Title issues:
Most tax sale deeds do not come with clean title. LDG, PLLC attorneys can:
File a quiet title lawsuit to legally confirm your ownership.
Help remove “clouds” on title, making it possible to resell or refinance.
Work with title companies to eventually get the property insurable.
👉 Why it matters: Without clear title, you may not be able to sell, refinance, or even develop the property.
3. Evictions May Be Necessary
If the property is occupied—either by the former owner, tenants, or squatters—the new owner may need to initiate eviction proceedings after gaining legal possession. Texas eviction law still applies, and notices must be served properly to avoid delays or complications. This is a multi-step process that ensure the tenants have adequate notice and the new owner feels confident when filing their suit for forcible detainer.
How LDG, PLLC can assist you in Evicting Squatters & Previous Home Owners
If someone is still living on or at the property post-sale, LDG, PLLC attorneys can:
Handle eviction notices and court filings properly.
Represent you in JP or Municipal Court if needed.
Ensure compliance with Texas Property Code and avoid costly delays.
👉 Why it matters: Improper evictions can result in court setbacks or even lawsuits.
4. Outstanding Liens, Debts, and Legal Mistakes
Due diligence before bidding is essential. Post-sale, buyers may need to negotiate or pay off remaining liens or seek legal remedies to remove them. Mistakes in the tax sale process—like improper notice or procedural errors—can open the door to legal challenges. Former owners or lienholders may contest the sale, especially if they weren't properly notified.
How LDG, PLLC can assist you with Legal Mistakes during the Tax Sale Process
LDG, PLLC attorneys can:
Review the property’s lien history before or after the sale.
Negotiate or resolve outstanding debts like IRS, HOA, or mechanic's liens.
Advise if certain liens are invalid or can be removed through legal action.
Review the sale process for notice and procedural accuracy.
Defend you in court if your ownership is contested.
Seek dismissal or settlement where appropriate.
👉 Why it matters: Even if you did everything right, a legal challenge could drag on for months or years without proper defense.
5. Deed Recording and Property Taxes
After the sale, the winning bidder receives a Sheriff’s or Constable’s Deed, which must be recorded with the county clerk. This deed establishes ownership, but remember—it’s still subject to the redemption period. Also, be prepared to pay ongoing property taxes as the new owner. Any taxes accrued after the date of judgment will be assessed to the property and due to the new property owner. Delinquencies can start quickly and lead to another tax sale if ignored.
Why working with an experienced Attorney is necessary Post Tax Sale:
LDG, PLLC attorneys can:
Ensure the Sheriff's or Trustee’s Deed is properly recorded with the county.
Confirm your compliance with local and state regulations.
Advise on property tax obligations going forward.
Review the sale process for notice and procedural accuracy.
Defend you in court if your ownership is contested.
Seek dismissal or settlement where appropriate.
👉 Why it matters: Failure to properly record or pay future taxes could jeopardize your investment. Even if you did everything right, a legal challenge could drag on for months or years without proper defense.
Tax Sales can be Rewarding with the Right Resources
Tax sales in Texas can offer great opportunities, but they also come with legal complexities and risks. Whether you're looking to invest or just stay informed about your rights, understanding the post-sale landscape is critical.
Whether you're trying to recover a lost home or protect your investment, a qualified real estate or tax sale attorney can be the difference between a smooth outcome and an expensive legal mess. In complex areas like post-tax sales, having a legal expert on your side isn’t just helpful—it’s essential. Contact LDG, PLLC to see how we can ensure your investment is secure.