Last Updated on December 8, 2025
If you’ve ever searched for OTC Texas Tax Deeds, you might have heard these deals don’t exist. Texas is famous for live tax deed auctions, but some properties remain unsold and become what people call over‑the‑counter (OTC) deeds. In our recent video, we showed viewers how to find these “trust properties” in the Lone Star state. This article walks you through what I shared in that video and explains how you can find and buy over‑the‑counter tax deeds in Texas without breaking the bank. The process is simple, but you need to be patient and do your homework.
OTC tax deeds are properties that went through a tax sale but received no bids. When that happen,s the property is struck off to the taxing units and later put back up for sale as tax resale property. Because the mortgage is removed, the buyer gets a deed free of the previous lender’s lien. In Texas, these deeds are also known as “trust properties,” “struck‑off properties,” or “trust lists.” Many counties don’t advertise them widely, so knowing how to search for them is important.
Table of contents
Key Takeaways
- OTC Texas Tax Deeds are properties that didn’t sell at auction and are available at a lower price due to the removal of mortgage liens.
- Buyers can acquire these properties by researching county trust property lists, which may have different names across counties.
- Bidders must conduct due diligence, verify property details, and can often buy these properties below market value.
- Potential risks include the redemption period, where former owners can reclaim the property under certain conditions.
- Educating yourself on the bidding process, submitting appropriate offers, and understanding all costs involved is crucial for success.
What is a Texas tax deed, and why go over‑the‑counter?
A tax deed is a document that gives ownership of a property to the county when the owner doesn’t pay property taxes. After the county finishes the foreclosure process and no one buys the property at auction, the officer has to bid the property off to the county for the lower of two figures: its market value or the amount owed. Once the county owns the property, it can sell it privately for at least that lower amount. That is why many OTC tax deeds sell for much less than the normal value.
The county holds these “trust properties” until someone buys them. Over‑the‑counter sales are appealing because there’s no mortgage on the property, there are fewer competitors than at a live auction, and you can often make offers below the market value. County information sheets say you can buy a trust property by paying the market value stated in the judgment or the total of all taxes and court costs, whichever is less. Because you can pay the lower number, investors sometimes buy properties for 80–90 % less than the county’s value.
There are still risks. Texas law gives former owners time to get their property back. They have two years if the property is a home or farmland and 180 days for other property. If they redeem, they must reimburse your costs plus a premium (25 % in the first year or 50 % in the second). You must also pay current taxes and any liens that arise after the judgment. Do your due diligence because properties are sold “as is.”
Finding OTC Texas tax deeds
Here is a simple attack plan to locate over‑the‑counter tax deeds in Texas:
First:
Identify counties that hold trust property lists. Many counties post their lists on the website of the county’s delinquent tax attorney (MVBA, PBFCM or another). These lists may be labelled “trust property,” “struck‑off property,” “tax resale,” “leftover lands list,” “surplus lands list,” or “scavenger list.” Different counties use different names for the same thing, so search for “trust properties” along with the county name to find PDF lists or bidding instructions.
Check the county’s official site or the attorney’s site. Some counties make their trust property lists available online through the delinquent tax attorney’s website. Once you download the list, note the minimum bid, legal description and county value.
Search for “trust properties” on municipality sites. Some cities, such as Borger, work with the Texas Communities Group to market trust properties. They explain that these are lots and tracts that went unsold at auction and were struck off to the taxing entities. Many smaller cities use the Texas Communities Group to manage their trust lists; you may find catalogues or maps of available properties.
Look for offline lists or contact the tax office directly. Some counties require you to call or email to request a list. Don’t be discouraged if a link is broken; that often means the list doesn’t get much traffic.
Understand eligibility to bid. In most cases, anyone over 18 can submit a bid as long as they don’t owe delinquent taxes or unpaid fines. A minimum bid (often about $50 per parcel) applies. Bids may be submitted online or via a written form at the county or city hall. Read each county’s instructions carefully because they vary.
Next:
Perform due diligence. Visit the property in person or review satellite imagery to make sure it exists and check for hazards such as burn zones or demolition liens. Call the county appraisal district and tax office to confirm values, taxes and other costs. Sales packets usually emphasize that buyers must obtain and verify all research totals.
Submit your offer. In an over‑the‑counter sale, there is usually no bidding war. You simply make an offer at or above the minimum bid. Some counties use sealed bids; others accept offers on a rolling basis. Offers cannot be below the lower of the market value or the amount owed, unless all the taxing units agree. Counties may consider low offers on properties that have been on the list for years.
Pay and record the deed. If your offer is accepted, you must pay with cash or a cashier’s check. After payment, the county will issue a deed without warranty. File it with the county clerk and keep an eye on any redemption notices.
| Rule/Term | Description |
| Purchase price | You can buy a trust property by paying whichever is lower: the market value or the total taxes and costs. |
| Redemption period | Former owners can redeem homestead or farmland within two years and other property within 180 days. They have to pay the purchase price and a premium if they do. |
| Private sale rule | The county can sell a struck‑off property privately but generally not for less than the lower of the market value or amount owed. Sales below that need consent from all taxing units. |
| Trust property | A lot or tract of land that went unsold at a tax sale and is held by the taxing entities until sold again. |
| Bidder eligibility | Bidders must be at least 18, cannot owe delinquent taxes or unpaid fines, and must follow any local rules. |
| Minimum bid | Many counties require a minimum bid, often around $50 per parcel. |
| Synonyms | OTC lists may be called surplus lands lists, leftover lands lists, strike‑off lists or scavenger lists. |
How to buy an OTC Texas tax deed (step‑by‑step)
- Educate yourself.
Read the county’s general information packet and Texas Tax Code Section 34 to understand redemption rights, payment methods and liabilities. Remember that tax deeds are sold without warranty and may have encumbrances.
- Search multiple counties.
Start with counties using MVBA or PBFCM; look under “Tax Sale” or “Trust Property.” Also search for smaller city pages, as they sometimes publish catalogues or trust lists.
- Download or request the trust list.
Note each parcel’s cause number, appraisal value, legal description and opening bid. If the list is not online, phone the tax attorney or county clerk.
- Conduct due diligence.
Visit the property or use mapping tools to assess its condition. Check for zoning issues, environmental hazards, fire burn zones or demolition liens. Research comparable sales to determine fair market value. Contact the appraisal district and tax office to confirm values and delinquent amounts. Sale packets usually provide phone numbers for each office.
- Calculate your offer.
Start with the lower of the market value or the amount owed. Deduct expected repair costs and hold a buffer for taxes and insurance. Some investors start with 10–20 % of market value on trust properties that have been on the list for a long time, but you must meet the statutory minimum.
- Submit your bid.
For sealed bids, deliver your written offer to the tax attorney by the deadline. For rolling offers, you may submit online or in person. Always include proof that you owe no delinquent taxes, as required by many counties.
- Pay and close.
If your bid is accepted, pay with cash or a cashier’s check; personal checks are usually not accepted. File the deed promptly and purchase vacant property insurance. Plan your exit strategy: hold, rent, or sell.
Frequently Asked Questions (FAQ)
Yes. When a property is struck off and later sold, the mortgage is wiped off the property; you get a deed without the prior lender’s lien. The lender can still pursue the borrower, but the debt does not attach to the property.
Generally, yes. Most places allow anyone over 18 to bid as long as they don’t owe delinquent taxes or fines. Some counties also require a statement from the tax assessor confirming you have no delinquent taxes.
In Texas the redemption period is two years for homesteads or farmland and 180 days for other property. Redeeming owners must pay the purchase price, fees and a premium (25 % in the first year or 50 % in the second). Until the redemption period expires, you should avoid major improvements, but you may rent the property.
Texas law says that private sales cannot be lower than the lesser of the market value or total amount owed. However, counties may accept lower offers if all taxing units agree. Always verify the acceptable bid with the county.
If no one buys a trust property, it may remain in the county’s inventory. Some counties lower minimum bids or join with non‑profit groups to repurpose the property. Because long‑held properties cost the county money, low offers may be considered.
In addition to your bid, you must pay recording fees, current taxes and any taxes that become due after the judgment. Some properties may also have liens for mowing, demolition or homeowners’ association fees. Always investigate before bidding.
Conclusion
Over‑the‑counter tax deeds in Texas are a rare but lucrative opportunity. These properties are trust properties that were struck off to the county after failing to sell at auction. With a little research, you can find lists of available properties, make offers well below market value and acquire real estate free of mortgage liens. Always remember to conduct thorough due diligence, understand the redemption period and abide by county rules. This guide, together with the accompanying video, offers a roadmap to finding and buying OTC Texas tax deeds. If you want to explore more, check out the free resources and mini‑courses and start your own treasure hunt today.
