Last Updated on December 5, 2025
If you’re just a beginner in real estate investing and you’ve heard about over‑the‑counter (OTC) tax deeds, you might wonder if you can really buy property for very little money. OTC tax deeds are pieces of real estate that didn’t sell during a county tax‑deed auction. After the auction, the county keeps these parcels in an inventory and offers them directly to the public. For a beginner, this can be a simple way to start investing without bidding against others. Let’s discuss what OTC tax deeds are, why they can be a bargain, and how you can buy one.
Key Takeaways
- OTC tax deeds allow you to buy unsold properties directly from the county after an auction.
- These deeds often sell for less than market value, usually based on unpaid taxes and fees.
- To buy an OTC tax deed, research states and counties that offer them and obtain the current OTC list.
- Perform due diligence on the property, including checking its condition, title, and any zoning issues.
- Follow county procedures to submit your offer and understand the legal steps for obtaining a clear title.
Table of contents
What is a tax deed, and what does “over the counter” mean?
A tax deed is a document that transfers ownership of a property when the owner hasn’t paid their property taxes. When someone falls behind on property taxes, the county can foreclose and sell the property at a public auction to recover the taxes. The highest bidder gets the deed and becomes the owner. In some cases, the auction ends with no bids. The county doesn’t want to hold on to those parcels forever, so it creates an OTC list. This list contains unsold properties that anyone can buy directly from the county. For example, some counties in Arizona and Florida publish their lists online or will provide one if you ask.
Tax deeds versus tax liens
It’s easy to confuse tax deeds with tax liens. A tax lien sale is where you buy a certificate that represents the unpaid taxes. You earn interest until the owner pays the taxes back. If they don’t pay, you may eventually get the deed. A tax‑deed sale, on the other hand, is where you buy the property itself. Some states give former owners a period of time to pay the taxes and get the property back, but most OTC tax deed parcels are past that stage and can be sold outright.
Why OTC tax deeds can be bargains and good for beginners?
Counties typically price OTC tax deeds based on unpaid taxes and fees, rather than market value, which can mean properties worth much more are available for a fraction of their value. Some counties won’t sell a tax-deeded property for less than the owed amount, while others start bidding at the lower of the assessed value or total owed plus a small fee. With no other bidders, prices remain low, but properties are sold “as-is” with no guarantees. It’s essential to verify if the property is buildable, whether utilities are available, and check for any outstanding liens or code violations.
Easy steps for beginners to buy an OTC tax deed
Buying an OTC tax deed isn’t difficult, but you need to follow some steps. Here’s a simple guide:
- Research states and counties
Not every state uses tax deeds, and not every county with tax deeds offers an OTC list. Start by researching which states and counties have OTC tax deed sales. You can usually find this information on the county treasurer or clerk’s website. Some counties publish their lists online, while others require you to call or send an email.
- Get the OTC list
Counties maintain a list of properties that didn’t sell at auction. The list includes details such as parcel numbers, assessed values and minimum bids. Some counties update their lists each month. Others charge a small fee or require a request form. Make sure you have the most current list before deciding on a property.
- Do your homework
You are responsible for investigating the property you want to buy. This is called due diligence. Here are a few things to check:
Location and access: Use the county’s map or the property appraiser’s website to make sure the parcel exists and has road access.
Zoning and land use: Contact the county’s planning department to see if you can build on the land.
Physical condition: Visit the property if possible to see if there are buildings, environmental problems or encroachments.
Title and liens: OTC properties are often sold with a quit‑claim deed. There may be other liens or code violations. You might need to hire a title company or an attorney to clear the title. - Submit your offer
Once you find a property you like, follow the county’s instructions to make an offer. Some counties require you to fill out a form and pay the full amount with cash, a cashier’s check or a money order. Others require a bid submission form along with payment. Offers below the minimum amount will not be accepted.
- Wait for approval and get your deed
Many counties need the local board of supervisors to approve the sale. The board reviews the offer and, if they approve, applies your payment to the outstanding taxes. They will then record a deed in your name. If your offer is not approved, the county returns your money.
- Understand redemption periods and legal steps
In most OTC cases, the redemption period has expired, which means the original owner can no longer reclaim the property. However, some states allow a redemption period after the sale. Make sure you understand your state’s rules. After you get the deed, you may need to take legal steps, such as filing a quiet title action, to obtain clear title and title insurance.
Walkthrough: Beginner’s Guide Through an OTC Tax Deed
- Start at our go‑to website. We open taxlienschool.com and head straight to the Knowledge Vault. Inside the vault, click on the OTC section. This is where counties list tax‑deeded properties that didn’t sell at auction and are now available over the counter.
- Pick a state and look for bargains. Choose a state – say Maryland – and then a county like Cecil County. On the county page, you see two columns: the sale amount (what you would pay) and the county’s assessed value (what the property is worth to them). There are properties where the sale amount is much lower than the assessed value. Those are the deals to get excited about.
- Check the parcel online. Once you spot an interesting property, check what you’d actually be buying. Copy the parcel number and go to Regrid. This free map tool lets you paste in the parcel number and see its shape, size, and surroundings. Sometimes, adding a prefix to the parcel number makes sure you pull up the right property.
- Verify the address on a real estate site. If a property has a street address, paste that into PropWire or another real estate listing site. Use these sites to verify whether there’s a building on the lot and to get a rough idea of the current market value. This helps you understand what to expect before you buy.
- Repeat the process in other states. Rinse and repeat in another state – for example, Mississippi. Back on taxlienschool.com, select Mississippi, browse the counties, compare sale amounts to assessed values, and point out how some properties have taxes in the hundreds of dollars while their assessed values are many times higher. Those big spreads can translate into deep discounts.
- Stress due diligence. Reminder: every OTC property is sold “as‑is.” A low price doesn’t always mean a good deal. You need to check whether the land is usable, whether utilities are available, and whether there are any hidden liens. Use county records and even call the county planning department to verify details. Only after completing this research do we suggest moving forward.
Websites links
- taxlienschool.com (https://taxlienschool.com) – where you can access the Knowledge Vault and the OTC guides.
- regrid.com (https://www.regrid.com) – a free parcel lookup and mapping tool to view the property’s location and shape.
- propwire.com (https://www.propwire.com) – a listing site to check addresses and estimate market value.
Summary of beginner steps for OTC tax deeds
| Step | Action | Why it matters |
| 1 | Find states and counties that offer OTC tax deeds | Not all areas sell properties over the counter. |
| 2 | Get the current list of available properties | You need the list to choose a property and see the minimum price. |
| 3 | Investigate the property (due diligence) | You must know what you’re buying, its condition and any issues. |
| 4 | Make your offer using the county’s forms and payment methods | Counties have specific rules and won’t accept low offers. |
| 5 | Wait for the county to approve the sale and record your deed | Approval is required before you become the owner. |
| 6 | Check for redemption rights and clear the title | Ensures you can legally sell or finance the property later. |
Frequently Asked Questions
It’s a property that didn’t sell at the county’s tax deed auction. Instead of auctioning it again, the county offers it for sale directly to anyone.
Look at your county’s treasurer or clerk website. Some counties post the list online. Others will send it to you if you ask by email or phone.
The county usually charges only the amount of unpaid taxes and fees. That amount can be far less than the property’s market value.
They can be, but you must do your homework. Counties sell them “as‑is,” so you need to check zoning, access, condition and any liens. You may have to clear the title before selling or refinancing the property.
Counties often require certified funds, such as cash, cashier’s checks or money orders. Follow the instructions on the purchase form.
Not necessarily. OTC deeds transfer whatever interest the county has. You may need to file a quiet title action or work with a title company to get title insurance.
Usually, the redemption period has passed by the time a property goes on the OTC list. In some states, redemption rights last longer, so check your local laws.
Conclusion
Over‑the‑counter tax deeds are a way for new investors to buy property at a low price. When no one bids on a property at the county auction, the county lists it for sale based on the unpaid taxes and fees. With careful research and attention to the county’s procedures, you can find inexpensive real‑estate opportunities. Always make sure to investigate the property and understand any legal steps required before you buy.
