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Legally, a tax sale is defined as a transfer of real property in exchange for money to satisfy unpaid debts owed by the owner to the government. The transfer is generally done via auction, and the property is put up for auction once the legal period for the payment of the taxes has expired. Investors can buy real estate by bidding on either the deed, which transfers title to the property itself, or a lien, which transfers the rights associated with a charge on the property. There are many procedural requirements that must be followed by the authority conducting the tax sale. First, notice must be given to the owner of the property. This will provide a warning to him or her that the property will be sold, and give a chance to pay any unpaid debts, fees, or charges that have accrued. The property owner will be able to avoid foreclosure and losing their home by satisfying the debts to the government. The notice requirement is tied to the concept of due process, another legal requirement. Due process is the rule that the government must respect the legal rights owed to a person when taking action against that person. The United States Constitution contains two different due process clauses, in the fifth and fourteenth amendments. The clauses protect United States residents from being unlawfully denied life, liberty, or property by the government. This applies to foreclosure because it is unlawful to seize someone's property to pay unpaid debts without first giving them notice of the pending seizure. The rule of giving notice is so important that when notice was not given, any subsequent sales are be rendered invalid. Another procedural requirement is the right of redemption by the original owner. Many states have redemption statutes. Such laws give the owner a fixed time period to pay any taxes he owes plus any other charges that have accrued. The time period begins after the property is sold at a tax sale. If he is able to do so, he will remain the owner of the property, free of all the prior debts. Potential bidders should research the right of redemption statutes in their states before bidding. If the time period provided to the original owner is lengthy, it may affect the winning bidder's capability to sell or change the property. The right to redemption is tied to the public policy idea that foreclosure is an extreme remedy. The original property owner is given a chance to get back the property so it will not be seized from him, because the idea of property seizures is at odds with the freedoms granted to United States residents by the Constitution. However, although there is a statutory right to redemption, in most cases, the owner does not follow through on this right. If you are interested in purchasing property, you may consider researching a tax sale. Contact CivicSource to get more details at: http://www.civicsource.com
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