Dallas County Tax Deed Sales can be an exciting and profitable venture for the well-informed and prepared. In Dallas County, Texas, you can acquire properties for pennies on the dollar or earn a high return on investment if a property is redeemed. Today, we’ll discuss key aspects of Dallas County Tax Deed Sales and how redeemable deeds work in Texas.
Whether you’re looking to purchase a property for personal use, as an investment, or simply want to take advantage of a high-interest return, Dallas County Tax Deed Sales have a lot to offer.
Key Takeaways
- Dallas County tax deed sales offer a chance to buy properties at a fraction of their market value or earn a significant return on investment if the property is redeemed.
- Texas operates as a redeemable tax deed state, giving property owners a specific period to reclaim their property after a tax deed sale.
- Researching properties and familiarizing yourself with the processes and rules of Dallas County auctions is essential to invest successfully.
Understanding Dallas County Tax Deed Sales
Dallas County Tax Deed Sales present an opportunity for you to acquire properties at auction for 10, 20, or 30 cents on the dollar. However, you must understand the rules and procedures in this redeemable tax deed state to navigate these auctions effectively.
What is a Redeemable Tax Deed in Texas?
A redeemable deed is a type of property deed that allows a tax delinquent property owner to buy back their property after it’s been sold at a tax deed auction as long as they do it within a certain time period, called a “redemption period.”
At Dallas County Tax Deed Sales, if you’re the highest bidder at the auction, you’ll receive a redeemable deed. However, the property owner still has the right to reclaim their property within 180 days by paying you back your full investment amount, plus 25%. An exception is in the case of agricultural properties, then the redemption period extends to two years.
In a nutshell, you either get the property or you get all of your money back plus 25% within 180 days. That’s an investment that’s hard to beat.
What is a Sheriff’s Sale?
Don’t be surprised if you come across the term “sheriff’s sale” when researching Dallas County tax deed auctions. This is synonymous with tax delinquent auctions, and it signifies that the auction is conducted by a designated officer, such as a sheriff, constable, or county employee, who holds the power of sale.
Participating in Dallas County Tax Deed Auctions
In Texas, tax deed auctions are held on the first Tuesday of every month. Dallas County holds tax deed auctions online, which is not the case for all Texas counties.
Obtaining a Tax Delinquent Properties for Sale List in TX
You can find details about the auction process and a list of tax sale properties on the county treasurer’s website. Keep in mind that each auction may have its unique set of rules.
Is a Deposit Required for Dallas, Texas Tax Deed Sales?
Before attending Dallas County tax deed sales, you should know that a deposit is often required. At the time of this writing, the deposit amount is 5% of your anticipated maximum bid. If you’re the winning bidder, you have 24 hours to pay the remaining balance.
What Type of Deed Will You Receive on Your Dallas Tax Sale Property?
Once you’ve completed your payment, you can expect to receive the deed in 3 to 5 weeks. The deed you’ll receive will be a sheriff’s deed, which is not a warranty deed, but acts as a quitclaim deed. A quiet title action may be necessary to obtain a clear title.
Before bidding at Dallas County tax deed sales, be sure to research properties thoroughly because real estate is sold as-is with no guarantee of the property’s condition or that the title is free of defects.
What is a Struck-off Properties List?
When properties remain unsold at Dallas County tax deed sales, they end up on a list called a “strike-off list.” This list consists of properties that were not successfully auctioned off during the tax delinquent auction and will be available for purchase through a different method. As an interested buyer, you can acquire these properties as “over-the-counter” purchases.
Purchasing Struck-off Property Over the Counter
To purchase a property on the strike-off list, you can either visit the County Treasurer’s office in person or check the availability online. Once you’ve identified a specific property that you’d like to buy, simply provide the County Treasurer with the property number. They’ll inform you of the property’s cost, and you can proceed to purchase the tax-defaulted deed directly from the county.
Do Your Due Diligence Before Purchasing Tax Defaulted Real Estate
Before you attend an auction or buy a property over-the-counter, do your due diligence on the properties and familiarize yourself with the relevant rules and regulations. You can find detailed information on Dallas County’s official website. This site provides data on property values, minimum bids, and other useful details.
Summary
At Dallas County tax deed sales, redeemable deeds are auctioned to the highest bidder. Starting bids are low, allowing you to potentially acquire real estate for cents on the dollar.
When you win an auction, you’re granted a redeemable tax deed, which means the original property owner has 180 days to reclaim their property. If reclaimed, you’ll receive your initial investment plus a 25% return. If the property is not redeemed, then you acquire the property.
Dallas County tax deed sales are held online, and you should research properties and rules before participating. Be prepared to pay a deposit to participate in the auction. Unsold properties can be purchased over the counter through a strike off list.
If you know the rules and do your homework, you can find success investing in tax delinquent real estate at Dallas County tax deed sales.
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