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What are property tax liens?

A tax lien property is a property that has legal notices against it due to the non-payment of property taxes. The lien is a term used to define the legal claim placed on the property by the government. The local authorities also publish a tax lien certificate that states the amount due by the property owner and the appropriate penalties charged. This certificate prevents the property from buying or selling on the real estate market. However, tax lien certificates are not only a piece of paper. They are auctioned to the highest bidder as they act as a good investment. Visit lahore smart city site office.

How to invest in property tax lien 

Property tax liens are bought and sold the same way as a normal property. However, tax liens can only be purchased at auctions instead of an open market. Investors either bid the premium that they will pay for the tax lien or the interest rate charged on the lien. The tax lien is then sold to the investor that offers the highest premium or is willing to accept the lowest interest rate. Buying a tax lien allows them to get the ownership of the property, but it is important to keep in mind that such properties are accompanied by several hidden costs and require several repairs. Hence, a property tax lien buyer should be aware of all these costs involved. Many properties come with existing tenants, and evicting these tenants will be the buyer’s responsibility. 

If you are interested in purchasing a property tax lien, you should first decide what type of property you would like to buy, residential, commercial, or industrial. Once you have selected the property, you should call the local district office to find out the next auction date. You can even get a list of all property tax liens about to be auctioned from the treasurer’s office. Before going to an auction, you must study the rules, which will tell you about the mode of payment, the preregistration requirements, and other such details. You can get the rule book from the treasury’s office as well. Invest in rudn enclave rawalpindi.

How to make a profit from a property tax lien

 Before investing in any property tax liens, investors should talk to the local tax collecting authorities to find out details about property taxes. Most countries, cities, and states sell their public tax records to interested investors; this information can be easily accessed. Sales relating to property taxes are required by the law to be advertised for a certain amount of time before they are sold. The advertisements contain important information such as the property owner, the description of the property, and the amount of taxes. As an investor buying a property tax lien at an auction, you will be required to pay the entire amount at that very moment. The property owner will have to pay the investor amount as the whole tax along with interest charged on the amount. The interest rate charged is different from state to state, but it is usually around 10% to 12% in most cases. If the investor had paid a premium on the tax lien, the property owner would also have to pay that. The repayment time given to the property owner is usually around 6 months to three years, during which the interest charged on the amount accumulates. If the property owner does not repay the amount, then the investor has the right to foreclose the house and sell it on the market.

Cons of investing into a property tax lien

Investing in a property tax lien has low returns but significantly high risks. As an investor, you do not know the owner of the property nor the condition of the property; hence it is more like a blind investment. Tax lien certificates also have an expiry date after which the investor can not collect money from the property owner.


While they are risky, investing in property liens allows investors to make a profit without having to invest a huge sum of money. Invest in 1947 Housing

Author Bio 

Ramza Zahra is a Karachi-based freelance content writer who uses her life experiences and curious nature to research and pen it down and make a living. Currently, she is working with Sigma Properties as an Snr. Content Writer.

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