Texas Tax Deed Due Diligence

Under Tex. Tax Code §34.21, the redemption period is two years for residential homestead, agricultural, or mineral property, and 180 days for all other property. The redemption premium is 25% of the total amount if redeemed in the first year and 50% in the second year. Until the redemption period runs, the buyer's title is subject to being redeemed.

Sales are conducted by the county constable or sheriff, typically on the first Tuesday of the month at the county courthouse. Bidding starts at the amount of taxes, penalties, interest, and costs (the judgment amount). The buyer receives a constable's or sheriff's deed after the sale.

• Whether the property is homestead, agricultural, or mineral (this doubles the redemption period to two years).
• Any recorded federal tax lien — a federal redemption right may apply after the sale, but it is conditional. A nonjudicial sale is governed by 26 U.S.C. §7425(d) (a possible 120-day IRS redemption right); a judicial sale is governed by 28 U.S.C. §2410(c). Whether it applies turns on joinder/notice, lien priority, and the sale procedure, and any longer applicable state redemption period also runs. Confirm with a tax attorney.
• The exact judgment amount and any post-judgment taxes that must be paid.
• The chain of title and any breaks, which may require curative work or a quiet-title action before resale depending on the defect, governing law, and the title underwriter.