Austin Texas Tax Sale Right of Redemption

[Jason Carter]

I am looking at a property on a tax sale list in an up and coming neighbor hood. I tried to search for liens or loans on the property and couldn't find any other than the tax arrears owed. (about 11k)

1st question: what is the best way to find out about liens and loans on the property. (don't have property radar in Texas yet)

(went to the tax assessors site and found 2 liens. one for cleaning property and one for the taxes owed) what else should I look for?

2nd question: what to do if I purchase and want to do a tear down and spec build? There is a 6 month redemption period on the tax sales in Texas. Can I start planning and demo before the 6 months is up. What if I tear the house down within the 6mo redemption period and they decide they want to pay arrears.

Thank You,

Jason Carter

[Richard D.]

@Christopher Gilbert I have had this conversation with several real estate attorneys in Texas. The redemption period is established on the day the suit is filed by a taxing authority; as established with the county appraisal district, and it's issuance of the appropriate exemption. 

The title company that was telling you two years, was not correct. I have had some try and tell me as long as twenty years. I would suggest you find another company that understands the tax laws of Texas when it comes to redemption periods. The majority are clueless when it comes to this topic simply because they do not deal with it frequently.

The law that requires two years, is if the property for sale has the following exemptions at the time the suit is filed:

1. Homestead
2. Agricultural Use
3. Mineral Rights

All other types get six. So, if a property had a homestead exemption in place by an owner ten, twenty or even fifty years ago, is irrelevant. Texas Tax Code 34.21 is the law that explains the requirements for length of redemption period.