Yes, it’s possible that someone can take your property by paying the taxes. Because it’s possible to bid and take over your property via Tax deed sale or Tax lien purchase in almost all US states.
Worried about whether someone can take your property by paying the taxes?
Well, as a property owner you should be. But there is no clear answer to this question. As different states have different laws regarding this.
However, today is your lucky day. Because of my years of experience as a financial advisor, I am going to answer distinctly can someone take your property by paying the taxes, and explain different state laws regarding this. So, stick here till the end.
Can Someone Take Your Property By Paying The Taxes?
The answer is a bit more complicated than a yes or no. As different states have different laws regarding this. Although if you have a lot of tax liabilities on a property then it’s possible for someone to take over your property. However, it won’t only cost the person your tax dues but a lot more. Sounds confusing?
Let me explain. When you stop paying taxes on your property for a long time then the unpaid amount becomes a lien on the property. So, if you don’t pay the debt the tax authority will hold the right to the property. They can even sell your house. This can happen in two ways. They are
1. Tax Lien Certificate Sale
To collect the tax debt state authorities sell the lien on the property. Investors bid on the tax lien on a property and purchase it. This is known as tax lien certificate sales.
In a tax lien certificate sale, the purchaser does not get ownership of the property. But he gets some legal right over it. So, the purchaser can fix any issues on the property and upgrade it.
Moreover, the tax lien purchaser also gets the authority to collect the tax debt, interest, and penalties. However, there is a redemption period to pay the dues to the tax lien certificate holder. A property owner can clear the dues witing the redemption period and take back their property.
But if a property owner fails to pay the tax lien holder then he can foreclose or follow other procedures to convert the lien certificate to a deed. But it depends on the state law regarding this.
So, it’s possible that a tax lien certificate purchaser can take over your property.
2. Tax Deed Sale
Sometimes if the unpaid tax amount is not paid after placing a lien, the tax authorities can put the property on sale. This is known as a tax deed sale.
In a tax deed sale auction, the highest bidder gets the title to the property. But the bidder must pay the due tax and penalties within 48 hours of the purchase. Otherwise, the sale would be canceled.
Tax deed sales happen when there is a substantial amount of tax liabilities on a property.
Both Tax Lien Sales and Tax Deed sales happen in almost every state. Though the laws are different regarding taking over property are different in every state. But one thing that is common about not paying property tax, is colossal fines or even jail time for not paying taxes in some instances.
Now let’s have a look at some of the major state laws regarding this.
Can someone take your property by paying the taxes in New York?
Yes, someone can take your property by a tax lien or tax deed purchase in New York. But compared to other states you will get more time before the foreclosure process starts. Because New York has a longer redemption period.
Usually, New York has a redemption period of 2 years or longer. Within this time period, you can pay back your tax liabilities, and penalties and claim back your property. But if you don’t pay back within 3 months before the redemption ends then the foreclosure process will start.
Can Someone Take Your Property By Paying The Taxes In Texas?
No, someone can not take your property in texas only by paying the tax lien. However, in Texas, anyone can purchase your property at a discounted price in a tax foreclosure sale.
In Texas, if property taxes become delinquent then the tax authority will file a foreclosure lawsuit. In case the lawsuit is successful then the authorities will sell the property in an auction to retrieve the tax amount, interests, and penalties.
Can someone take your property by paying the taxes in California?
Yes, it’s possible to take over a tax-delinquent property in California. However, anyone can not just pay the tax lien and get the property. Because in California there is no tax lien sale.
So, if someone wants to take over your tax-delinquent property then they need to purchase it in a tax deed sale. They’ll get a discount, but anyone wanting to take over your tax-delinquent property in California will have to pay a lot more than just the lien.
Moreover, you can claim the remaining amount after the tax authority cuts the tax amount, interests, and penalties.
Can someone take your property by paying the taxes in Kentucky?
Yes, it’s possible to take over your tax-delinquent property in Kentucky by tax lien certificate purchase. However, before selling or taking over your property you will get a redemption period.
Kentucky has a redemption period of 1 year. If you don’t pay off the lien within this time, the tax lien certificate purchaser can start the foreclosure process.
Can someone take your property by paying the taxes in Oklahoma?
Yes, someone can take your tax-delinquent property in Oklahoma. But not by only paying the tax lien. The person needs to purchase the property in a tax deed sale.
Moreover, like other states, Oklahoma does not arrange a tax deed sale every year and a property will only be taken at a sale if the 3-4 years tax is due. Furthermore, the authorities in Oklahoma will send you a letter before putting your property on sale. If you don’t respond only then they will sell.
Can someone take your property by paying the taxes in Florida?
Yes, someone can take over your property in Florida by purchasing a tax lien or tax deed. However, in Florida, a property tax can go unpaid for 2 years. Only after that, the tax authorities can put a lien on the property.
In Florida both tax lien and deed sales take place. So, if you have a tax delinquent property then someone can purchase the lien on the property. After 1 year of the redemption period, the lien purchaser can take over the property by foreclosure or other means.
These are different state laws regarding whether someone can take your property by paying taxes or not. All the other states not mentioned here have similar laws. However, if you are confused about yours then talk to a tax attorney.
So, if you don’t want to lose your property then always pay property tax on time.
Though getting ownership by paying property taxes is a long process. But it’s possible one way or another in almost all states. Moreover, not paying property tax can also lead to hefty fines. So, if you don’t want someone to take over your property or pay fines, then please pay the property tax on time.
I hope this explainer post on “can someone take your property by paying the taxes” has helped you with your query. If you have any related questions let me know in the comments.
Lastly, if you face any issues with property tax it’s wise to talk to a Tax specialist or tax attorney. Because they won’t only solve your issues but also make sure you don’t face any issues in the future.
That’s it for today. Have a spectacular day!