Understanding Your Right to Redeem After a Georgia Tax Sale

Short answer

If your Georgia property was sold at a tax sale for unpaid property taxes, you still hold a statutory right to redeem it. This right can be valuable, can be sold to an investor, and lasts for at least 12 months after the sale—and sometimes longer, until the right is foreclosed by notice. The cost to redeem is the tax sale price plus a premium, and if you redeem, the property returns to you with any liens that existed at the time of the sale.

Why it matters

Losing property at a tax sale is difficult, but the right of redemption gives former owners a second chance. This right:

Can allow you to recover your property by paying the redemption price.
Can be sold to an investor if you do not wish to redeem yourself, providing you with immediate value.
Is time-sensitive: if you do nothing, the right will eventually be foreclosed and lost.
May be worth more if your property has equity above the redemption price, even if there are liens.

Understanding your options can help you make an informed decision about whether to redeem, sell your right, or let it expire.

Steps

If you are the former owner of property sold at a Georgia tax sale, here is how the right of redemption works and what you can do:

Confirm the type of sale Most Georgia tax sales are non-judicial, but some counties use a judicial in rem process. Your paperwork from the sale will say which kind it was.

Understand who may redeem The former owner, or anyone with any right, title, interest, or lien on the property, may redeem. This right can be sold by quitclaim deed to a buyer, who may then redeem.

Know the redemption period For most tax sales, the property may be redeemed at any time within 12 months of the sale. After 12 months, the tax deed purchaser may serve a notice of foreclosure of the right to redeem (also called a barment notice) through the sheriff, setting a date at least 45 days out. After that date, the right ends. For judicial in rem sales, the right of redemption lasts 60 days from the sale and is exercised by paying the minimum bid into the superior court.

Calculate the redemption price The redemption price is: The amount paid at the tax sale Plus any taxes and special assessments paid by the purchaser after the sale Plus a premium of 20 percent for the first year or fraction of a year after the sale, and 10 percent for each year or fraction of a year after that If redemption is made more than 30 days after the notice, add the sheriff’s cost of serving and publishing the notice The full amount must be paid in certified funds to the purchaser; partial payments are not accepted.

Decide whether to redeem, sell, or do nothing If you wish to redeem, your attorney can handle the tender and paperwork. If you wish to sell your right to redeem, your attorney can prepare a quitclaim deed and ensure you are paid before the deadline. If you do nothing and the right is foreclosed, the purchaser’s title becomes absolute.

Understand the effect of redemption If you redeem, the purchaser must sign a quitclaim deed back to you. Title returns to you, subject to every lien that existed at the time of the tax sale (such as a mortgage).

Know about excess funds If the property sold for more than the taxes and costs owed, the extra amount is a separate claim with the official who held the sale. This is not the same as the right of redemption.

Example

Suppose your property was sold at a Georgia tax sale for $50,000. The purchaser paid $2,000 in taxes after the sale. You want to redeem the property 10 months after the sale.

Redemption price = $50,000 (sale price) + $2,000 (taxes paid after sale) = $52,000
Add 20 percent premium for the first year: $52,000 x 20% = $10,400
Total redemption price = $62,400

If you sell your right to redeem to an investor, they may pay you an amount based on the equity above $62,400, minus any liens and considering the property’s condition and time left to redeem. If you redeem, the purchaser signs a quitclaim deed back to you, and any mortgage or lien that existed at the time of the tax sale comes back with the property.

Example: If your property sold at tax sale for $50,000, and the purchaser paid $2,000 in taxes after the sale, redeeming within 12 months would cost $62,400 (including the 20% premium). If you sell your right to redeem, what you receive depends on the property’s value, liens, and time left.

Common pitfalls

Missing the deadline: Waiting too long can mean losing your right to redeem if the purchaser forecloses the right to redeem.
Confusing tax sale with mortgage foreclosure: The rules and timelines are different. This page is about tax sales only.
Not understanding the redemption price: The premium is 20 percent for the first year, not 20 percent a year, and must be paid in full.
Overlooking liens: Any mortgage or lien that existed at the time of the tax sale comes back with the property after redemption.
Assuming partial payments are accepted: Redemption must be paid in full, in certified funds.
Not reading the sale paperwork: Some counties use judicial in rem sales, which have different timelines and procedures.

Summary

After a Georgia tax sale, the former owner keeps a right to redeem the property by paying the redemption price.
The right lasts for 12 months, and sometimes longer, until the right is foreclosed by notice.
The redemption price includes the sale price, taxes paid after the sale, and a 20 percent premium for the first year (10 percent for each year after).
The right to redeem can be sold to an investor by quitclaim deed, and the firm can help document the sale and ensure payment.
If you redeem, the property returns to you with any liens that existed at the time of the tax sale. Next steps:
Review your tax sale paperwork to confirm the type of sale and deadlines.
Consult a real estate attorney to calculate your redemption price and discuss your options to redeem or sell your right.

This page is general information and does not create an attorney-client relationship.

Important information

Attorney advertising. Responsible attorney: Christian Cruz, Esq., Georgia Bar Number 238836. Office: CRUZ LAW FIRM, 160 W Camino Real, 589, Boca Raton, FL, 33432.

This page is general information about Georgia law, not legal advice. Reading it does not create an attorney-client relationship, and no such relationship is formed until we have a signed written agreement.

Fee arrangements depend on the posture of the matter and are set out in a written agreement before any work begins. We are glad to explain how fees would work in your situation when we speak.

FAQ

What is the right of redemption after a Georgia tax sale?

The right of redemption allows the former owner or anyone with an interest in the property to recover it by paying the redemption price within a set period after a tax sale.

How long does the right of redemption last in Georgia?

For most tax sales, the right lasts for 12 months after the sale and continues until the right is foreclosed by notice. For judicial in rem sales, the right lasts 60 days from the sale.

Can I sell my right to redeem to someone else?

Yes. The former owner can sell the right to redeem by quitclaim deed to a buyer, who may then redeem the property.

What is included in the redemption price?

The redemption price is the tax sale amount, plus taxes and special assessments paid after the sale, plus a 20 percent premium for the first year (and 10 percent for each year after), plus certain costs if notice has been served.

What happens to liens if I redeem my property?

Any liens or mortgages that existed at the time of the tax sale survive redemption and remain on the property.