TN
The investor buys a deed to the property, but the former owner keeps a window to redeem and reclaim title.
Sale type
Redeemable deed
Redemption
12 mo
Interest / penalty
Flat rate · 12%
Sale timing
Varies
Rules in plain English
Sale type
Redeemable deed
The investor buys a deed to the property, but the former owner keeps a window to redeem and reclaim title.
T.C.A. 67-5-2501
“The court shall order the sale of the property for cash, subject to the equity of redemption, which gives the taxpayer the right to pay the taxes, interest, penalties and costs, and terminate the sale proceeding”official source ↗
Redemption period
12 mo
12 months (1 year)
T.C.A. 67-5-2701(a)(1)(C)
“(i) If the period of delinquency is three (3) years or less, the redemption period is one (1) year from the entry of the order confirming the sale; or”official source ↗
Interest / penalty
Flat rate · 12%
12% flat per year.
T.C.A. 67-5-2701(b)
“The interest shall be at the rate of 12% per annum, which shall begin to accrue on the date the purchaser pays the purchase price to the clerk and continuing until the motion to redeem is filed”official source ↗
Bid method
Highest bid
The parcel or lien goes to the highest bidder at auction.
T.C.A. 67-5-2501
“The clerk should bid in the amount due for taxes, penalties, interest and costs at the sale if no other bidder offers the same or larger bid”official source ↗
Sale schedule
Varies
Sale timing varies by county.
T.C.A. 67-5-2502
“The sale must be conducted at the place and time given in the notice or as advertised”official source ↗
Bidder process
- 01Watch for the suit and the court's order of sale: a delinquent tax sale is the judicially ordered public sale of property to collect unpaid taxes, prescribed by Tenn. Code Ann. 67-5-2501 to -2516 (Tenn. Att'y Gen. Op. 23-008)
- 02Bid at the auction conducted by the clerk of the court that ordered the sale, or by a special master (Tenn. Att'y Gen. Op. 23-008, citing Tenn. Code Ann. 67-5-2502(a)(6))
- 03Bid at least the minimum bid the clerk sets, which includes the amount due for taxes, penalties, interest, and the costs of administering the sale; if no other bidder offers that amount the clerk bids it for the taxing entity, except where the entity's legislative body has determined that the property's environmental risks make a minimum bid inappropriate (Tenn. Att'y Gen. Op. 23-008, citing Tenn. Code Ann. 67-5-2501(a)(2))
- 04Do not expect to post a bidding deposit: no Tennessee statute authorizes a court clerk to require a deposit as a condition of bidding at a delinquent tax sale (Tenn. Att'y Gen. Op. 23-008)
- 05Wait for the clerk's report of sale and the court's confirmation: after the auction the clerk files a report of sale for the judge's confirmation and forwards notice of the sale to the register of deeds (Tenn. Att'y Gen. Op. 23-008, citing Tenn. Code Ann. 67-5-2501(c))
- Registration
- Not documented
- Registration mode
- Not documented
- Registration deadline
- Not documented
- Registration fee
- Not documented
- Deposit required
- No
- Deposit amount
- Not documented
- Deposit percent
- Not documented
- Deposit refundable
- Not documented
- Sale format
- in_person
- Payment deadline
- Not documented
- Payment methods
- unknown
- Residency required
- Not documented
- Bidder registration form before the sale: county example - the Chancery Court Clerk and Master for Metropolitan Nashville and Davidson County requires all prospective bidders to complete an informational form, with every person to be named on the conveyance present and proof of authority for agents and corporations (Davidson County Chancery Court Clerk & Master, Delinquent Tax Sale Information)
- Generally any person not disqualified by statute may bid at a delinquent tax sale, and political subdivisions are authorized to bid (Tenn. Att'y Gen. Op. 23-008, citing Tenn. Code Ann. 67-5-2508(a)(1))
Tenn. Att'y Gen. Op. 23-008 (deposit)
“A court clerk, therefore, has no authority to require a deposit as a condition to bidding at a delinquent tax sale.”official source ↗
Tenn. Att'y Gen. Op. 23-008 (statutory framework)
“A delinquent tax sale is the judicially ordered public sale of property for the purpose of collecting unpaid taxes owed on the property. Tennessee's delinquent tax sale process is prescribed by statute. See Tenn. Code Ann. §§ 67-5-2501 to -2516.”official source ↗
Tenn. Att'y Gen. Op. 23-008 (clerk conducts the sale)
“is conducted by the clerk of the court that orders the sale. Id. § 67-5-2502(a)(6) (referring to the clerk or a special master "conducting the sale" of the property).”official source ↗
Tenn. Att'y Gen. Op. 23-008 (any person may bid)
“Generally, any person not disqualified by statute may bid at a delinquent tax sale.”official source ↗
Tenn. Att'y Gen. Op. 23-008 (minimum bid)
“The clerk determines the minimum bid, which is to include the amount due for taxes, penalties, interest, and costs of administering the sale.”official source ↗
Tenn. Att'y Gen. Op. 23-008 (court orders the sale for cash)
“The court must order the sale of the property for cash.”official source ↗
Tenn. Att'y Gen. Op. 23-008 (report of sale)
“Once the auction has concluded, the clerk files a report of sale for the judge's confirmation and forwards notice of the sale to the register of deeds.”official source ↗
Davidson County (TN) Chancery Court Clerk & Master, Delinquent Tax Sale Information
“To participate in the auction, all prospective bidders must register by completing an informational form before the sale.”official source ↗
Notes
T.C.A. 67-5-2501, 67-5-2701. Official TN Department of Revenue page links the Tennessee Code (hosted by LexisNexis). | Prose: redeemable deed | 12% per annum on the purchase price during redemption | 1 year if delinquency is 3 years or less; 90 days if more than 3 years | highest bidder; clerk bids delinquent debt if no equal-or-higher bid | varies by county (sale date fixed by court sale notice)