Tax lien investing in Prince George’s County, Maryland presents a valuable opportunity for those looking to expand their investment portfolios. On Monday, May 12, 2025, the county will host its annual tax sale, allowing investors to purchase tax lien certificates on properties with delinquent taxes. However, this process is governed by strict regulations and financial obligations that every participant must understand to be successful.
This guide will walk you through the tax sale process, registration requirements, bidder responsibilities, and key legal considerations, ensuring you are fully prepared to navigate this lucrative yet complex opportunity.
Understanding the Prince George’s County Tax Sale Process
Each tax-delinquent property at auction will be sold as an entirety, meaning that investors cannot buy partial interests in any given property. The starting bid for each property is equal to the total outstanding tax lien, and no property will be sold for less than its advertised amount. Once a property is successfully auctioned, the County’s lien transfers to the highest bidder, granting them the right to collect the owed taxes plus interest or initiate foreclosure proceedings if the lien is not redeemed.
Prince George’s County divides the tax sale into batches, each with its own closing time. Bidding begins on the first Monday in May, and the final batch closes at 3:00 p.m. EST on the day of the auction. Investors have the option to submit bids either as a dollar amount or as a bid factor, which represents a percentage of the property’s assessed value.
How to Register for the Tax Sale
Registration for the tax sale opens in April and closes at 5:00 p.m. EST on the last business day of the month. Prospective bidders must complete their registration online, as mail-in or email registrations are not accepted. To register, participants must pay a $150 non-refundable registration fee and a $1,000 deposit via ACH debit, which will be applied to successful bids or refunded if no certificates are awarded. A completed IRS W-9 form and Electronic Transfer Form must also be uploaded. Additionally, bidders must provide a valid bank account for both registration and final payment processing, ensuring sufficient funds are available.
The Bidding & Payment Process
All bids must be submitted through the official tax sale website. The auction follows a batch system, where different groups of tax lien certificates close at separate times throughout the day. Winning bids are final and cannot be withdrawn, even if placed in error. If a bidder fails to pay for their awarded tax lien(s), the certificate will go to the next highest bidder, and the defaulting bidder may be barred from future tax sales.
Invoices will be emailed to successful bidders once the tax sale concludes. Payments must be completed by 3:00 p.m. EST the day after the auction through either wire transfers or cashier’s checks. Wire transfer instructions will be provided in the invoice, while cashier’s checks must be delivered to the Prince George’s County Office of Finance at the Wayne K. Curry Administration Building in Largo, MD.
Understanding the High Bid Premium
Prince George’s County enforces a High Bid Premium rule to prevent speculative bidding. If the winning bid exceeds 40% of the property’s assessed value, the bidder must pay an additional 20% of the excess amount. This premium must be paid at the same time as the tax lien purchase price. While the High Bid Premium is refundable upon redemption or foreclosure, it is not refundable if the investor fails to foreclose within two years of purchasing the lien.
How a Lawyer Can Help with the Prince George’s County Tax Sale
The tax sale process involves complex legal requirements, strict deadlines, and potential risks. An experienced attorney can ensure compliance, protect your investment, and streamline the process from bidding to foreclosure.
A lawyer can conduct due diligence and property research to uncover any additional liens, zoning restrictions, or legal disputes that could affect the property’s value or resale potential. They also ensure compliance with local and state laws, guiding investors through the registration, bid submission, and payment processes to prevent costly mistakes.
Winning a tax lien does not automatically grant property ownership. The original property owner has six months to redeem the lien by paying the owed taxes. If they do not, an investor may proceed with foreclosure, a process best handled with legal assistance to ensure compliance.
Three Tips for Success in the Prince George’s County Tax Sale
Research every property thoroughly before bidding. Not every tax lien is a good investment, so checking property locations, conditions, and title records can help avoid hidden liabilities.
Be prepared for the High Bid Premium, as Prince George’s County enforces a 20% charge on high-value bids, which must be factored into an investor’s budget.
Plan for quick payments, ensuring funds are readily available for transfer immediately after the auction to avoid disqualification.
Secure Your Investment with Expert Legal Guidance
The Prince George’s County 2025 Tax Sale presents a unique opportunity for investors, but the process is complex and requires careful planning. At LewisMcDaniels, we specialize in helping tax sale investors with property research, legal compliance, and foreclosure proceedings to secure their investments.
If you’re planning to participate in the Prince George’s County Tax Sale on May 12, 2025, ensure that your investment is legally protected. Contact LewisMcDaniels today at www.lewismcdaniels.com to schedule a consultation and receive expert legal guidance for your tax sale investments.
