Georgia Tax Lien Certificates

Type of Tax Sales in Georgia Counties

In Georgia when property taxes become delinquent the county will sell that property at auction (Tax Sale). Most counties in Georgia hold sales which are “Open Bid Public Auctions.”

When are the auctions held?

Most counties in Georgia hold Tax Sales every month.

The Tax Lien Process in Georgia

The bidding at the auction will begin at the amount of taxes owed plus any other charges associated. The property is then sold to the highest bidder at the auction. At a “Tax Sale” you are bidding on a Tax Deed. But, after issued the tax deed you have no immediate control over the property. The purchaser is not entitled to any profits from the property until the “Redemption Period” expires. The redemption period is for 1 year. Meaning, the former owner or anyone with an interest in the property may redeem the property by paying all debts owed. In order for the former owner to redeem they must pay the total of the following:

• Price paid at auction
• All recording fees
• Any subsequent taxes paid by the purchaser of the tax deed
• Plus, 20% of the above total for the 1st year, and 10% of the above total for any time after the 1st year.

The “Redemption Period” may become extinguished after 1 year elapses if the purchaser of the tax deed serves proper notice to all parties with an interest in the property, as well as any occupants of the property. Guidelines for extinguishing the right of redemption may vary from county to county. After the right of redemption has been eliminated, the purchaser may take control of the property.

Here's an example of how a TLC purchase could work in Georgia:

Winning Bid Amount: $4,000.00

Recording Fee's: $50.00

Additional Taxes paid: $500.00

Let’s say the former owner redeems after 11 months. So, they must pay the purchaser a total of $5,460.00 (Price at auction, fees, additional taxes, plus 20% of the total). If they would have waited until after a year, then there would be an additional 10% of the total added on. And if the former owner chooses not to redeem the property, it becomes the purchaser’s for fewer than 5 thousand dollars.