TAX SALE PURCHASES IN GEORGIA
Flippers, other real estate investors, and citizens may notice their local newspaper advertising the sale of various properties for back taxes (real estate taxes from previous tax years left unpaid by the record title holder of real property - this can be one or multiple year’s worth of taxes). Today we introduce the first in a series of posts outlining the procedures and considerations for individuals considering purchasing a property at a tax sale.
In an effort to collect some or all of the money owed on a property, the local tax commissioner will often execute a non-judicial tax sale. After notices are sent out to the various property owners alerting them of their delinquency in payment, the tax commissioner will cause the notice and the description of the property to be advertised in the local paper once a week for four weeks. Following that fourth advertisement, on the first Tuesday of the next month, the tax commissioner will hold “Sheriff’s Sales” (or auctions) on the steps of the county courthouse.
Consideration: Once you have located a property you’re interested in purchasing, it is important to do your due diligence on the property by doing the following:
Explore its location on Google Maps and Qpublic
While on Qpublic, look into the Tax Assessor’s appraisal value of the property. While this is not always an accurate amount, it is a good starting point to determine what your investment could be worth
Have a title abstract (or examination) performed by a local attorney’s office like Turner Jones Legal, LLC. This is important because it will let you know how much, if any, exposure you are opening yourself to including mortgages, HOA fees, state or federal tax liens, etc., since not all liens on title are extinguished by a county tax sale. An experienced real estate/ tax sale attorney will know what to look for and how to properly advise you of potential pitfalls with an individual property not only for the tax sale, but beyond.
At this Sheriff’s Sale, anyone interested in purchasing the property(ies) may appear and place their bid(s) on the property. Bids will typically start at the amount of taxes owed, which can be found in the newspaper advertisement or by contacting the local tax commissioner’s office. The bids can go up from there depending on how many parties are interested in the property and how much those parties are willing to spend.
Consideration: It is important to note that some Georgia counties require the bidders to be present in-person and to pay for the auction price in full at the time of the sale. You will want to contact the tax commissioner for the county in which you are considering purchasing property at a tax sale of their requirements for purchase to make sure you are fully compliant on the day of the auction(s).
Following the auction, the County Tax Commissioner will prepare, execute, record, and deliver a tax deed to the purchaser(s). This will be the official transfer of the property.
Consideration: Depending on the individual county, the time for preparation and delivery can vary greatly. You will not receive a deed the same day, but you can ask for an estimate of the delivery date from the individual conducting the sale. We recommend following up in forty five days from the date of sale if you have not yet received the deed to get an estimate on delivery. Larger counties typically have far more sales and therefore deeds to prepare and execute, and the Clerk’s office also may have large quantities of deeds, mortgages, UCC’s, and liens to process, so it can take some time. Don’t get anxious, but do be mindful in keeping an eye out and always be considerate to anyone you interact with in your follow-ups.
In our next post in this series, we will cover the process and considerations after the tax sale. If you are an individual in this category, stay tuned!
If you are considering purchasing or have purchased a property at a tax sale in Georgia, contact Turner Jones Legal, LLC to order a title examination or to discuss your next steps after the sale. We’d love to help you plan and predict your first or next real estate investment. Give us a call: 706-359-3332!