Sale typeWhat you actually buy. A lien sale gives you a claim on the property and the owner keeps it for now; a deed sale transfers the property itself. A redeemable deed transfers ownership but still gives the former owner time to pay you back. See the full glossary for more terms.
lien
Interest / penaltyWhat you earn when the owner redeems. Interest is a rate paid over time; a penalty is usually a one-time percentage of the tax or redemption amount. A rate that is bid down during the auction is still interest. See the full glossary for more terms.
up to 18%/yr bid-down (N.J.S.A. 54:5-32); year-end penalty up to 6% (54:4-67)
RedemptionHow long the former owner has to repay the debt and keep the property after the sale. Your money stays tied up until this window closes, so a long period can mean a multi-year wait on a lien. See the full glossary for more terms.
2 years from date of sale before foreclosure (N.J.S.A. 54:5-86)
Bid methodHow the winner is chosen: bidding the interest rate down, bidding a premium above the amount owed, a random or rotating draw, or simply buying at the minimum bid. See the full glossary for more terms.
bid down to lowest rate of interest, not to exceed 18%/yr
Sale timingWhen sales are typically held. Many counties publish sale lists only a few weeks ahead, and some sell continuously or on their own schedule. See the full glossary for more terms.
varies by municipality (standard sale in the fiscal year following arrears; accelerated sale in the last month of the fiscal year) (N.J.S.A. 54:5-19)
HybridWhether the sale is online, in person, by sealed bid, or a mix. The format decides how you register and whether you can react to other bids. See the full glossary for more terms.
1.Watch the municipal tax collector's public notice of the time and place of sale, which describes each parcel, the total amount due and the costs of sale (54:5-25); the collector prepares the list of lands subject to sale (54:5-21)
2.Attend the tax sale held by the collector or the officer charged with that duty, who enforces the lien by selling the property, either as a standard tax sale or an accelerated tax sale (54:5-19)
3.Where the municipality conducts the sale through an electronic municipal tax lien service, register with that service and place any required deposit before the auction (54:5-19.1)
4.Bid down the interest rate: the property is sold in fee to the person who will purchase it subject to redemption at the lowest rate of interest, but never above 18 percent per annum (54:5-32)
5.If the rate is bid below 1 percent or to no interest, bid a premium instead: the property is struck off to the bidder who offers to pay the amount of the taxes, assessments or other charges plus the highest amount of premium (54:5-32)
6.Pay for the sale before the conclusion of the sale, or the property is resold (54:5-33)
7.Any premium payment is held by the collector and returned to the purchaser if and when redemption is made (54:5-33)
8.Pay the officer's fee for the municipality's costs of holding the sale if it was unpaid before the sale, because it then forms part of the tax lien (54:5-38)
9.Receive a certificate of sale under the officer's hand and seal, setting out the date of sale, the amount paid, the parcel, the rate of redemption and when the right to redeem expires (54:5-46)
10.Record the certificate of sale with the county clerk or register of deeds as a mortgage of land (54:5-50)
RegistrationSigning up as a bidder before the sale. Counties set the deadlines and paperwork, which may include an application, identification, and a no-delinquent-taxes statement. See the full glossary for more terms.
Required: UnknownUnknown
Not verified from a source yet.
DepositMoney you must post before or at the sale, often a flat amount or a percentage of your bid. It is usually applied to the purchase price if you win and is often non-refundable if you fail to pay. See the full glossary for more terms.
Required: UnknownUnknown
Not verified from a source yet.
FormsPaperwork a county may collect before you can bid, such as a bidder ID card or a W-9 for tax reporting. See the full glossary for more terms.
Bidder ID card: UnknownW-9: Unknown
EligibilityRules about who may bid. Some counties restrict non-residents or bar anyone who owes delinquent taxes from participating. See the full glossary for more terms.
PaymentHow and when you must pay after winning. Certified or cleared funds are common and personal checks usually are not; missing the deadline typically forfeits your deposit. See the full glossary for more terms.