Tax/Judgement sale Question. Texas

[b][/b]This looks like a great site I came across and thought it would be a great place to ask my (current) questions.
I am considering the purchase of a property which will be auctioned off due to a judgement here in Texas. I have been and will continue to do my necessary research prior to attending the auction. Here is my question.

If I am the winning bidder and actually get the Sheriffs Deed to the property - I have to wait 6 months for the previous owners right of rememption. During this 6 months I believe I have the right to posess, use, modify, etc… the property as I want correct? AND (this was my real question) after the 6 months how do I convert the deed to something which is sellable (sp.warranty deed, etc…) to a buyer after me? Can I just contact a title company and they will do a search, provide title ins. and a new deed?

Thanks for your help.

It is my understanding that you can do what you want with the property. If the former owner wants it back they will have to come up with the bucks to repay the lender the full amount of the difference between what you paid and the loan value, pay you for your improvements and all costs you have occurred since you came to possess the property and 50% interest the first 6 months and another 50% interest the second six months. The likelihood of that happening is extremely slim making Texas tax lien purchases among the best, if not the best, in the nation.
As far as a marketable deed I would consult your attorney or maybe somebody here can answer that. I am not at home where I can look that up.

Thanks for the help. I look forward to hearing how folks have converted their sheriff sale deed to a more recognizable, sellable deed.

Go to It is the Texas Tas Sale Research Center hosted by Darius M. Barazandeh. I was in error on some of my comments earlier - faulty memory due to advancing age.
The interest is 25% the first year and 50% the second year. Not quite as good as I stated but still a “substancial payback.” The great caveat is that it is 2 years on agricultural or homestead property. All other properties the redemtion period is 6 months. If you have purchased a homestead property and the owner redeems after two years the owner of the redeemed property will pay the lien purchaser 150% of the purchase price plus specified costs. On non-homestead property your return can be as high as 300%. The interest is an annualized return.
After purchas you recieve a Sheriff’s Deed which you should record as sonn as possible as that recording starts the redeption period time frame. You have the right of possession at the time of purchase. I was incorrect in stating you can collect your improvement costs if redemption occurs.
Disclaimer: I am not an attorney nor should this be in any way construed to be the advice of a licensed attorney.
If you are going to invest inTexas tax liens you should purchase Texas Houses for Pennies by the above named attorney and which is available on this site. It is very complete and willl serve you well in your investing. As always, you should seek advice from a qualified and knowledgable attorney.
Good luck.

Are they just selling off property to satisfy an Abstract of Judgment? OR is this a tax sale?


Since I am not an attorney nor play one on TV I am not sure what an abstract of judgement is. I have taken Art Appreciation, though many years ago, and I think it may me a Saqlvador Dali dipiction of Dante’s Inferno. I do know that there are 254 counties in Texas with thousands of taxing jurisdictions and any one of them can bring about a tax sale of a deliquent property owners property. You are purchasing the taxing entity’s right to the property, their ownership. The original owner lost his right of ownership due to not paying his taxes.


That’s funny. I’m not an attorney either; however, as an investor - I have dealt with AJ’s (abstract judgment) very often.

Actually, the tac entities get an AJ in order to foreclose. Also, you might see the sheriff selling a persons property becasue he was sued and the plantiff won and obtained a writ, which now they are enforcing to satisify the debt. If this is the case the laws are quite different.

Indeed, texas has 254 counties, the fun part is deciding which sale to attend, because they are all on the same day - first Tuesday.

I advise every one to really researc the title before purchasing - especially if they reside in the property. It’s easy to think that the property is non homestead because the appraisal district has it listed so, yet if it’s their only property - they can always say “IT"S MY HOMESTEAD” and then you have to wait two years for title.

A sheriff’s deed is good title; however, as stated above - it’s very important that you reseach the title before purschase.
Any “clouds” will make it imposible to get title insurance.

no cattle

According to my understanding the property must be declard a homestead property during or before the year that the tax due was defaulted. For eexample, lets say that taxes were owed for 2003 and the owner did not file for exemption until 2005. He would have to go to court to prove the property was his primary residence at that time. Then, the two year redemption period would kick in. Note: you must be careful for there might be additional fees, penalties, etc. that might have occurred during the interim years that you would be liable for. There are a lot of nuances that you need to be aware of. Again, I recommed the above mentioned course and always the advice of an attorney. What I have daid here should be taken as Not legal advice as I am not attorney though I did play one in grade school in which I sued a playmate who was playing doctor.

Indeed, the information by Darius is excellent. For me, it has paid for itself a thousand fold.


Thanks to all – I appreciate the info.

I went to see the property yesterday and am quite pleased with it’s location, condition, etc… This is rural property 8 acres, with a mobile home and tool shed on it. The appraisal district shows no homestead exemption on it but I can not be certain that this was the owners only home.

Considering that I buy the property, record the sheriffs title and there is not homestead exemption on the property then I wait 6 months to confirm no redemption >>>How do I convert the deed to something that can be more sellable to where a future buyer can get title insurance on it?

Forgot to confirm that this is a tax sale / school district.

You can get title insurance on a Sheriff’s deed. I’ve done it several times. Just make sure the owners were served personally, and not by publication. Get the suit number and take it to the district clerk to find that info.

Also, if you want the trailer house - make sure it’s “attached to the land” meaning that it’s not being treated as personal property. The appraisal district can probably tell you that.

Good luck, don’t be scared. If you or the tax attorney miss something in the title work, you can always rent it out. After two years, the statue of limitations expires - so nobody can bring action to challenge the validity of the sale.

Read up on the state statutes - chaper 34


Well, I am glad I paid to have a title company run an abstract on this property. I talked to the gentleman today and he is not finished but sees an IRS lien against the property.
He is going to the courthouse tomorrow to verify all is correct prior to giving me all the results. IF there is a federal lien against the property it is not worth messing with at all correct!!??
Also, just for my future reference is $150 too much to pay for an abstract?

That’s a fair price, the last title search I paid for cost me $300.

If your exit plan is to flip the property, I would not mess with it if the title is clouded. However, an IRS lien is not the end of the world if they were included in the suit.

Again, learn the Texas Property Tax Statutes: Here is a link.

Good luck.