Investor · FL · Member since 2026 · 7 posts · 3 votes
Hello BiggerPockets community!
I'm relatively new to the Texas tax-deed investment market and recently purchased two properties through a Dallas County tax foreclosure auction. Both Sheriff's Deeds were officially recorded on October 16, 2026.
My question is: Can an investor legally resell a property acquired through a Texas tax foreclosure auction while it is still within the statutory redemption period, rather than waiting for that period to expire?
If so, how are these transactions typically structured? Would a quitclaim deed or another type of deed be appropriate? And how are the original owner's redemption rights and any redemption payments handled after the property is transferred to another investor?
I'd really appreciate hearing from anyone who has experience buying or selling Texas tax-deed properties during the redemption period.
Looking forward to learning from the community and connecting with fellow investors!
I'm relatively new to the Texas tax-deed investment market and recently purchased two properties through a Dallas County tax foreclosure auction. Both Sheriff's Deeds were officially recorded on October 16, 2026.
My question is: Can an investor legally resell a property acquired through a Texas tax foreclosure auction while it is still within the statutory redemption period, rather than waiting for that period to expire?
If so, how are these transactions typically structured? Would a quitclaim deed or another type of deed be appropriate? And how are the original owner's redemption rights and any redemption payments handled after the property is transferred to another investor?
I'd really appreciate hearing from anyone who has experience buying or selling Texas tax-deed properties during the redemption period.
Looking forward to learning from the community and connecting with fellow investors!
Thank you!
@Tony Aramouni, my understanding is that a property may be transferred during the redemption period, but that doesn't automatically remove the former owner's right to redeem it. I'd be careful about choosing a deed or agreeing to a resale until a Texas real estate attorney has reviewed the foreclosure documents and confirmed how those rights would affect the next buyer.
I'm a real estate attorney, broker, and investor based in Maryland, and I work with clients on real estate transactions, contracts, and title matters. One thing I always pay attention to is whether the buyer understands exactly what ownership rights they're receiving and what issues could affect the transaction.
Thanks for bringing this up, @Tony Aramouni! It's an important question, especially when you're purchasing properties through tax foreclosure auctions. Happy to stay connected!
Tony, interesting acquisition. Are you planning to resell both properties as-is, or renovate them before resale? That could make a difference to your next steps.
Hi Judith, thanks for your question! My intention is to sell the properties as-is during the redemption period. With Texas redeemable tax deeds, it's generally best to avoid renovations during that time because if the former owner redeems, the investor could lose the money spent on improvements. For properties qualifying for the two-year redemption period, Texas law provides a 25% redemption premium in the first year or 50% in the second year, calculated on the applicable statutory redemption amount. That's the potential investment opportunity for buyers who understand this type of investment.
While technically you can sell, why would an investor want to pay a price above the purchase price that you paid? In theory, you could sell it at the price paid and the (price plus 25% premium ) that would be due. However, that is a huge risk for the buyer as they would not be able to get title insurance. Very narrow margins at best with this strategy
It’s legal to sell during the redemption period but like @Greg H. said, why would anyone take the chance? I have bought many of these in central Texas and one took 4 years before I could get clear title.
I appreciate your insights, and I certainly understand the title and redemption risks. Both properties are currently owner-occupied and appear to be well maintained, which I believe could increase the likelihood of redemption, although there's no guarantee. My asking premium is only 10% above my acquisition cost, while qualifying Texas homestead redemptions carry a statutory 25% premium in the first year and 50% in the second year. That creates a potential return opportunity for an investor who understands the risks. If the properties are not redeemed, there's also a potential upside based on the spread between acquisition cost, rehab expenses, and after-repair value (ARV). Of course, title clearance, holding costs, and redemption uncertainty all need to be factored into the investment.
Thank you, Ronald. I appreciate your input, especially regarding title insurance and rehabilitation expenses. Those are important considerations with redeemable tax deeds.
Yes, you can with a special warranty / quick claim deed, make sure it’s “as is where is” remember, you can only sell what you have (deed subject to a right of redemption) the pricing will most likely be a discount to redemptive value (the buyer will want a return
Thank you, Justin! I appreciate your insight, and I agree that the buyer would be acquiring the property subject to the existing redemption rights, with pricing that reflects the risks and allows room for a reasonable return. That's exactly the type of transaction I'm exploring, so your feedback is very helpful.
What Most people don’t know about TX , Has a specific statute governing Tax Lien loans ie Property tax loans , transfer of tax liens as governed primarily by Texas Tax Code § 32.06 and § 32.065, alongside licensing and regulatory oversight under Texas Finance Code Chapter 351 (but it’s VERY hard to break into that niche market