Bought Land at a Tennessee Tax Sale? Why It's Hard to Resell and How to Fix It

You bought a piece of land at a Tennessee tax sale for a few hundred or a few thousand dollars. The plan sounded simple: buy it cheap, sell it for more. Then you tried to sell and kept hearing the same thing: “The title company won’t insure it.”

You’re not alone. Here’s why that happens in Tennessee and what your options are.

How Do Tennessee Tax Sales Work?

In Tennessee, when property taxes go unpaid long enough, the county files a lawsuit in Chancery Court, and the land is sold at a public tax sale. Blount County’s tax sale page is a good example of the process. After the sale, the court enters an order confirming it, and the buyer receives a tax deed.

But a tax deed isn’t the same as a regular deed from a seller. It doesn’t come with the usual promises about the title, and some old problems, like heirs, easements, or other claims, can still be attached to the land.

Can the Old Owner Still Get the Land Back?

Yes, for a while. Tennessee gives the former owner a redemption period to buy the land back. The clock starts when the court confirms the sale, and the length depends on how long the taxes went unpaid:

• Up to 5 years behind: usually 1 year
• More than 5 but less than 8 years: usually 180 days
• 8 years or more: usually 90 days

To redeem, the former owner pays the taxes and costs, plus interest on what you paid at the sale. On vacant land the owner walked away from years ago, redemption is uncommon, but it can happen.

Why Won’t Title Companies Insure It?

Besides the redemption period, Tennessee law allows a tax sale to be challenged for a time after it’s confirmed. Under Tennessee Code § 67-5-2504, a challenge generally must be filed within one year of the order confirming the sale, and never more than three years after it. A challenge can only succeed on narrow grounds, such as the taxes already being paid or the sale not following required legal steps, as the University of Tennessee’s county advisors explain.

Still, title insurance companies don’t like open questions. Until those windows have passed, or a court has confirmed ownership, many won’t issue a standard policy. Without title insurance, most buyers and all lenders walk away.

How Is It Fixed?

There are usually two paths:

• Wait it out. Once the redemption period and the challenge window have passed, some title companies become more comfortable insuring the land, sometimes with extra paperwork.
• Quiet title. A quiet title case in Chancery Court asks the judge to confirm you own the land free of other claims. It works, but it takes months, costs attorney fees, and must be paid before the land sells.

For a cheap tax sale lot, those costs can eat up most of the profit. That’s why some owners would rather sell now, take a fair price, and be done. For other title problems, see Messy Title? The Most Common Problems and How We Fix Them.

Can You Sell It Before All That Is Finished?

Sometimes. It depends on where the redemption period stands, how the sale was handled, and what else is on the title. Our team will look up the court case, check the dates, and tell you honestly whether we can help now, later, or not at all. When we make an offer, the price accounts for the cleanup work and the risk still left. See Breaking Down Your Cash Offer: How We Figure the Number.

What If You Lost Land at a Tax Sale?

If you’re the former owner, act quickly. You may still be inside the redemption period. And if your land sold for more than you owed, the extra money may belong to you. See Behind on Property Taxes? You Can Still Sell Your Tennessee Land.

What Do You Have to Do?

Your part is short: a phone call telling us the county and roughly when you bought, verifying your ID with the title company, signing with a mobile notary at home, and choosing how you want to be paid.

Watch Out for These Buyers

Tax sale land attracts low effort offers: postcards offering a few hundred dollars for any land you own. Many of those buyers plan to pass the contract to someone else or back out as soon as they see the title. An honest buyer will tell you what they’re paying, how they’ll handle the title, and which title company or attorney will close. Never sign a deed over before money is handled through a title company. For more, read our guide from a retired law enforcement officer: How to Protect Your Land From Scams: A Retired Law Enforcement Officer’s Guide for Tennessee Landowners

This article is general information, not legal advice. Talk with a Tennessee real estate attorney about your specific situation.

About Copco Properties

Copco Properties is Owned and Operated by a Retired Law Enforcement Officer and a Military Veteran. In law enforcement, when someone called with a problem, the job was to show up, listen, get the facts, and help solve it. We bring that same approach to land. Back taxes, inherited property, title problems, no road access: these are the situations we work through every day. Brent, our military veteran, served at Fort Campbell and brings the same commitment to doing the job right and seeing it through.

• No commissions and no hidden fees.
• Every sale closes at a reputable title company.
• We’re up front about everything, and we’ll explain every number and every step in plain English.
• No pressure. Take all the time you need.

If you bought land at a Tennessee tax sale and want to sell it, call us at 615-610-3303 or fill out the short form on our website. Tell us the county, and we’ll investigate the sale and the title and give you an honest answer.