Investing in tax sale properties can be lucrative, allowing you to purchase real estate for a fraction of its market value. However, navigating the legal complexities, especially when dealing with tenants, demands a clear understanding of eviction procedures. How do you go about the process, and how can a Maryland tax lien attorney help you?
What Is a Tax Sale Property?
A tax sale property is real estate placed for sale by a local government authority due to the property owner’s failure to pay property taxes. These sales are a way for the government to recoup lost revenue from unpaid taxes. When taxes go unpaid for a certain time, the property is either auctioned off or a tax lien is issued to allow investors to pay the outstanding taxes in exchange for future returns, often through interest or eventual property ownership.
Tax Lien vs. Tax Deed Sales
Tax sale properties fall into two primary categories: tax lien and tax deed sales. A tax lien sale involves the sale of a lien certificate to the buyer, granting them the right to collect the unpaid taxes, along with interest, from the property owner. Conversely, a tax deed sale transfers ownership rights of the property outright to the buyer once the governmental body forecloses on the original owner.
Investing in tax sale properties is an opportunity that entails complications. Buyers must conduct thorough research, as existing mortgages, additional liens, or unresolved property disputes may still apply. Additionally, some jurisdictions afford the original owner a redemption period, possibly delaying the buyer’s ability to gain full control.
The Legal Eviction Process
Another consideration when purchasing a tax sale property is potential tenant evictions. If your newly acquired property has renters, you may be responsible for letting them go so you can move forward with your plans. Here are some steps to follow:
- Understand Local Eviction Laws: Familiarize yourself with the specific eviction laws in the property’s jurisdiction. Laws can vary by state or municipality.
- Notify the Tenant: Provide the tenant with a formal eviction notice that complies with local regulations. This notice should clearly state the reason for eviction and outline any actions the tenant must take, such as vacating the property by a specific date.
- File for Eviction in Court: If the tenant does not leave the property within the notice period, you may need to file for eviction through the local court system. Submit the necessary documentation and adhere to any procedural requirements. The court will schedule a hearing.
- Attend the Eviction Hearing: During the hearing, present evidence of your property ownership and demonstrate that you followed all legal obligations in notifying the tenant. If the court rules in your favor, you will receive a judgment granting permission to proceed with the eviction.
- Coordinate With Law Enforcement: Work with local law enforcement to carry out the removal process to avoid disputes or confrontations.
LewisMcDaniels: Your Maryland Tax Lien Attorney
LewisMcDaniels specializes in Maryland tax lien law and has helped property owners with legal challenges, including evictions. Whether dealing with non-compliant tenants or handling local eviction laws, our team provides guidance and representation. Call (301) 818-0405 or get in touch with our experts online.
