Tax lien vs. tax deed investing

Before researching a tax-sale property, find out what the seller is offering. A lien certificate, a tax deed and an assignment from state inventory carry different rights and costs.

Tax lien certificates

Pima County's Treasurer sells tax liens, with bidders competing on the interest rate they will accept. Buying a certificate does not buy the real estate. You need to research the certificate's terms as well as the parcel behind it.

Ask what document you will receive and what rights it gives you. A photograph or an attractive rate cannot answer that question.

Tax deeds

San Mateo County's tax sale FAQ says the county does not sell lien certificates. It also explains that winning a tax sale is different from paying someone else's delinquent taxes.

For a deed purchase, investigate title, legal access, permitted use and the sale terms. The word "deed" does not establish that the property is ready to build on or resell.

State-held inventory

Alabama's Department of Revenue offers assignments of state-held certificates and tax deeds. The agency warns that neither gives clear title. Read the instructions for the particular route before requesting a quote.

Keep the purchase terms with your research

Record the seller, instrument, sale channel, payment requirements and notice. Then match the parcel identifier and legal description to the location you are researching. Leave unresolved title and physical-use questions in your notes.

Explore properties has separate instrument and channel filters. The property report shows the available purchase routes and official links; My research keeps your notes with the parcel.

Start with one county's current instructions. If a promotion promises easy or guaranteed profits, compare it with the FTC's investment-scam guidance.

Reviewed November 8, 2026. The sale notice and applicable law govern the purchase.