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 What is a Certificate of Tax Sale?

In Maryland, all non-exempt real property is subject to an annual tax.  These real estate taxes are and collected by the county’s tax collector.  If an owner of a property fails to pay their real estate taxes by the due date, interest and penalties may be assessed and added to the outstanding tax balance.  If, after a certain period of time, the property owner has still not paid the outstanding property taxes, the tax collector is authorized to sell a Certificate of Tax Sale at that County’s Tax Sale. 

Each county in Maryland (plus the City of Baltimore) holds an annual public Tax Sale.  At the Tax Sale, the Tax Collector auctions and sells properties with outstanding property tax balances, subject to redemption.  Private investors may bid on the properties.  At the conclusion of the Tax Sale, the tax collector issues Certificates of Tax Sale to the winning bidders.  The Certificate of Tax Sale represents the tax lien on the property and permits the certificate holder to conduct foreclosure proceedings in order to obtain title to the property.

Each Certificate of Tax Sale will contain specific information about the property and associated tax lien, such as the property’s tax identification number and the total lien amount.  In general, a Certificate of Tax Sale entitles its holder to begin foreclosure proceedings at least six months after the date of the Tax Sale; however, a Certificate of Tax Sale is ordinarily void unless the certificate holder initiates foreclosure proceedings within two years from the date of the Tax Sale.

At Lewis McDaniels, LLC, we are dedicated to guiding you through the entire tax lien acquisition and foreclosure processes.  We take great pride in helping our clients achieve their specific investment goals.  Whether they are a first-time tax certificate purchaser or seasoned investor, we work with each client to develop a customized legal strategy specifically tailored to meet each individual client’s investment goals. 

Contact Lewis McDaniels, LLC today to get started working with one of the leading Maryland tax lien law firms.

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