Tax Lien versus Tax Deed versus Redeemable Deed State

Tennessee is a Redeemable Deed State. Tennessee does NOT perform tax lien certificate auctions. Only tax deeds are sold.  

Interest Rate  

The state has a 10% interest rate added to the purchase price. The state only conducts tax deed sales but there is a one-year redemption period.

Redemption Period

One year redemption period: There is a one-year right of redemption on tax sale properties with a 10% right of redemption fee.

Who Conducts Redeemable Deed Sales

For most Tennessee counties, the Redeemable Deed sales are conducted by the County. the Clerk and Master of the Chancery Court conducts the Redeemable Deed sales. Some Counties allow the sale to be conducted on a 3rd party platform.

Bidding Process             

All Redeemable Deed sales are by competitive bid.  The opening bid must cover overdue taxes plus penalties and court costs.  The delinquent owner has one year to redeem but must pay 10% back to the investor to redeem.

Definition of Redeemable Deed

A redeemable deed is a deed sold at a tax sale, but the original owner has the opportunity to reclaim the property within a Redemption Period (i.e., within a certain amount of time). For Tennessee, this is typically one year.  

If the original owner chooses to redeem the property, the owner must pay the winning bidder the amount they bid plus interest (plus any penalties and court costs). If the owner doesn't redeem the property within the redemption period, the winning bidder can acquire/foreclose on the property. 

Before participating in any redeemable deed sale, it is important to understand each Tennessee county's specific terms and conditions of sale, as it varies by county:  

See the table or map below for details by county.

How Many Counties Does Tennessee Have

Tennessee has 95 counties. See the clickable Tennessee County Map below for more information by County.

Frequency of Redeemable Deed Sales

Most counties have annual auctions. The time of year varies county by county