Tennessee

Quick facts

Sale type

Redeemable deed

Redemption period

30 days to 1 year

Sale frequency

Varies by county

Minimum bid

Taxes + penalties + costs

Interest rate

1% per month

Deed type

Clerk and Master's Deed

Bidder deposit

Varies by county

Statutory framework

Sale mechanics

Tax sales are judicial auctions conducted by the Clerk and Master of the Chancery Court. Auctions may be in-person or online depending on the county. Bidders often must register in advance with proof of funds. The minimum bid is typically the total of delinquent taxes, penalties, interest, attorney fees, and court costs, with payment usually due in full via certified funds shortly after the sale.

Post-sale obligations

Purchasers cannot take possession until the redemption period expires and the court confirms the sale. Maintenance during the redemption period is discouraged as reimbursement is not guaranteed. The court clerk handles redemption notifications, and the purchaser's interest is terminated if the property is redeemed.

Quiet title cost estimator

Estimate attorney and court costs for clearing title after a Tennessee tax deed purchase.

Notable counties

Key Tennessee counties for tax deed investors.

Recent statutory changes

1. Public Chapter 967 (Effective Sept 1, 2024) rewrote T.C.A. § 67-5-2507 regarding the disposition of property purchased by the county at tax sales.

How to bid at a Tennessee tax deed auction

Step-by-step process for participating in Tennessee tax deed sales.

1. 1

   Research available properties

   Review the list of delinquent properties published in local newspapers or on the Clerk and Master's website.

2. 2

   Perform due diligence

   Conduct title searches and physical inspections to assess the property's condition and potential encumbrances.

3. 3

   Register for auction

   Complete the required bidder registration with the Clerk and Master or the designated online platform before the deadline.

4. 4

   Submit bids

   Participate in the auction, which typically starts at the amount of taxes, penalties, and costs owed.

5. 5

   Pay the balance

   If you are the winning bidder, pay the full purchase amount to the Clerk and Master by the specified deadline.

6. 6

   Await confirmation

   Wait for the Chancellor to sign the Order Confirming Sale, which officially concludes the auction process.

Applicable statutes

Primary statute sections governing tax deed sales in Tennessee.

• Tenn. Code Ann. § 67-5-2501

  Governs the enforcement of tax liens and the sale of property.

• Tenn. Code Ann. § 67-5-2504

  Covers the validity of tax titles and quiet title actions.

• Tenn. Code Ann. § 67-5-2701

  Defines the redemption period and interest rates.

Notable case law

Landmark court decisions affecting Tennessee tax deed investors.

Frequently asked questions

Common questions from Tennessee tax deed investors.

How does Tennessee's redemption period work for tax deed purchases?

The redemption period begins upon the entry of the court's order confirming the sale. The duration depends on the delinquency length (30 days to 1 year). During this time, the original owner or other interested parties may redeem the property by paying the bid amount plus 1% monthly interest.

Do I need a quiet title action after a Tennessee tax deed purchase?

While not strictly required by law to hold the deed, it is highly recommended to clear the title for future marketability or to obtain title insurance, as many title companies will not insure tax-deed properties without a court-ordered quiet title judgment.

What title risks should a Tennessee tax deed buyer know about?

The primary risk is a challenge to the validity of the sale due to improper notice to interested parties. If the court finds that the delinquent tax attorney failed to make a diligent effort to provide notice, the sale may be set aside.

What happens if the former owner challenges a Tennessee tax sale?

The former owner may file a motion to invalidate the sale. If successful, the court may rescind the order confirming the sale. The purchaser is generally subrogated to the tax liens to recover their investment.

How are Tennessee tax deed auctions typically conducted?

Auctions are conducted by the Chancery Court Clerk and Master. They may be in-person or online, depending on the county's procedures. All sales are as is and final upon the court's confirmation.

Can I inspect properties before bidding at Tennessee tax sales?

There is no statutory right to inspect the interior of properties. Bidders are responsible for their own due diligence, including exterior inspections and title research, as properties are sold as is.