Tax Sales in Georgia

[Canesha Edwards]

Hi all, 

I am a new wholesaler in the South Atlanta area. I have been able to pull a list of properties where the taxes are delinquent and the tax deeds will be sold at auction. 

My question is, if the tax deed for a property is purchased at auction, does the owner still have the right to sell the property?

Also, has anyone had success wholesaling these type of properties?

All input is greatly appreciated.  

[Dan Mahoney]

@Canesha Edwards  In Georgia there is a distinction between tax liens and tax deeds.  Tax liens exist when a property owner doesn't pay their taxes and the county tax commissioner files a FiFa against the property.  Sometimes these liens are sold to private investors.  A tax deed comes about after the property is levied by the county sheriff and sold on the courthouse steps at a monthly tax sale.

In either case you could theoretically wholesale the property but the process would be different.  For a property with outstanding tax liens, the closing attorney would simply request a payoff statement from the lien holder and the lien would be paid off with the proceeds from the sale.  For a property that has been sold at auction and has a tax deed outstanding, the seller would have to first redeem the property from the tax deed buyer by paying them 120% of what the tax deed buyer paid at auction.  This redemption would cancel the tax deed and allow the owner to sell the property (assuming there were no other clouds on the title).  

Another angle would be to try to get the tax deed buyer to sell his/her interest to you, rather than trying to work with the original owner.  

Of course, you should get a good lawyer here because the laws are complicated.