Last Updated on October 17, 2025
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Over‑the‑counter (OTC) tax deeds let you buy property from a county when nobody bought it at the tax sale. Because the county just wants to collect the overdue taxes, these properties can sell for a small part of what they are worth. There is no auction. The sale is first‑come, first‑served. This makes OTC deeds a simpler way to start investing in property.
Understanding tax deeds vs. tax liens
In a tax lien sale, you buy the right to collect unpaid taxes, and you earn interest when the owner pays. You do not own the property. In a tax deed sale, you actually become the owner. You will have to decide whether to keep, rent or sell the property. Because you are buying the entire property, tax deed investing usually costs more than buying a tax lien.
Redemption periods
Many states let the original owner buy the property back after it is sold for taxes. In Georgia, most tax deed sales have a one‑year period for the owner to reclaim the property. Some Georgia counties use a special court process called a judicial in rem sale. In that case, the owner has only about 60 days to buy it back. In Minnesota, the county sells forfeited property over the counter with no redemption period at all, and buyers can even make payments over time.
Why Consider Buying OTC Tax Deed Deals?
- No bidding wars: There is no auction, so the price is just the unpaid taxes and fees.
- Big discounts: Some properties sell for as little as ten cents on the dollar.
- Fast transfer and payment plans: Court‑processed sales can give you the deed in weeks, and some counties let you pay over several years.
Sample: Buying OTC Tax Deeds (from the video)
| County (state) | Opening bid | Notes |
| Forsyth County, GA | $28,334 (judicial in rem) | Large parcel; check the parcel ID and make sure any buildings still exist. |
| Macon‑Bibb County, GA | $3,250 (judicial sale) | Homes valued around $200k were offered with bids under $4k; ask about renovation requirements. |
| St. Louis County, MN | Prices vary; 10 % down, 8 % financing | The county posts a booklet with vacant land and lakeshore tracts; parcels not sold at auction cannot be bought over the counter. |
How to buy an OTC tax deed
- Research state law:
Learn the rules and redemption periods in your state. For example, Georgia’s non‑judicial tax deeds have a one‑year redemption period, while judicial in‑rem sales shorten it to about 60 days. Minnesota’s OTC program has no redemption period.
- Find county lists:
OTC lists may be hidden. Some counties publish them online, while others require phone calls or visits. Check the county tax commissioner or land department.
- Use parcel IDs:
Do not rely only on a street address. Use the parcel number to pull maps and property cards. Free mapping tools can show you the property boundaries and any structures.
- Do your homework:
Compare the opening bid to the property’s market or assessed value. Check for liens, zoning rules, utilities, demolition orders and access. If possible, visit the property or hire someone local to inspect it.
- Know restrictions and financing:
Land banks may require you to fix or occupy the property before selling it. Some counties let you pay over time, but you must put money down and pay interest. After you pay, the county records the deed. Some buyers do a quiet title action before selling the property to make sure the title is clear.
FAQs
In a tax lien sale, you buy the right to collect unpaid taxes; you do not own the property. In a tax deed sale, you become the owner and must handle or sell the property yourself.
A judicial in rem sale uses the courts to take the property because of unpaid taxes. This shortens the redemption period to about 60 days instead of one year.
No. The property might have damage, pollution problems, unpaid bills or demolition orders. Always research carefully before you buy.
In some places, yes. For example, St. Louis County, Minnesota, lets buyers pay over ten years with a down payment and interest. Most counties, though, require full payment right away.
Conclusion
OTC tax deeds can be a good way to get into real estate if you learn the rules and research each property. Always check the redemption period, use parcel maps, and look for any hidden costs before buying. With careful homework, you may find great deals and grow your property portfolio without the stress of bidding wars.
