After the Gavel: What Happens the Day You Win a Tax Deed in Texas

Winning a property at a Texas tax deed auction is exciting. The bidding is over, the gavel comes down, and you’re the new owner—right?

Not so fast. The auction is only part of the process. What you do immediately after the sale is just as important as winning the bid.

This guide walks you through what happens the day you win a Texas tax deed, the steps you need to take next, and what to expect in the weeks that follow.

Step 1: Pay for Your Property

In Texas, counties require payment very quickly after the auction:

• In-person auctions – Payment is often due the same day or within 24 hours.

   

• Online auctions – Payment deadlines vary, but they are usually within 24 to 72 hours.

   

Payments must be in certified funds, such as:

• Cashier’s check

   

• Money order

   

• Wire transfer (for online sales)

   

Failing to pay on time can result in losing the property and forfeiting your deposit.

Step 2: Receive Your Sales Receipt

Once you pay, the county will give you a sales receipt. This is your temporary proof that you purchased the property.
Keep it safe—it may be needed for:

• Tracking your deed status

   

• Confirming your purchase with county offices

   

• Reference during the redemption period

   

Step 3: Wait for the Sheriff’s Deed

The sheriff’s office prepares the official deed after the auction. This document is your legal proof of ownership.

What to expect:

• Preparation – The sheriff’s office finalizes paperwork from the sale and court records.

   

• Recording – The deed is recorded with the county clerk to make the transfer public record.

   

• Delivery – You’ll get your recorded deed by mail or, in some counties, in person.

   

The timing can vary—from a few days to several weeks—depending on the county.

Step 4: Understand the Redemption Period

In Texas, most tax deed properties have a redemption period during which the previous owner can reclaim the property:

• 180 days for most non-homestead properties

   

• Up to 2 years for homestead or agricultural properties

   

If the owner redeems:

• They must pay you the purchase price plus a penalty (25% for the first 180 days, 50% for certain properties in the second year).

   

• You return the property to them but keep the penalty.

   

During the redemption period, you cannot sell the property free-and-clear.

Step 5: Secure the Property

If legally allowed, take steps to protect your investment:

• Change locks (if the property is vacant)

   

• Post “No Trespassing” signs

   

• Inspect for safety hazards

   

• Arrange insurance coverage

   

If the property is occupied, consult a real estate attorney before taking action—Texas has strict rules about possession during the redemption period.

Step 6: Research Any Remaining Liens

A tax deed sale may wipe out many liens, but not all. Some, like federal tax liens, can survive the sale.
Check the title records to make sure you understand any remaining obligations.

Step 7: Plan Your Next Move

Your options depend on whether the redemption period applies:

• If no redemption period – You can sell, rent, or use the property immediately.

   

• If there is a redemption period – You can hold it, maintain it, or prepare it for future use after the period ends.

   

Step 8: Keep Records Organized

Maintain a file with:

• Auction notices

   

• Sales receipt

   

• Deed copy

   

• Payment proof

   

• Any correspondence with county officials

   

This documentation is valuable if you sell the property, face legal questions, or need to prove ownership during redemption.

Common Mistakes After Winning a Tax Deed

1. Not paying on time – This can cost you the property and your deposit.

    

2. Ignoring redemption rules – Acting too soon can create legal problems.

    

3. Skipping property security – Vacant properties can be vandalized or damaged.

    

4. Assuming title is clear – Always verify if liens remain.
   

Example: Post-Auction Process in Action

You win a property in Harris County for $12,000.

1. You pay the same day with a cashier’s check.

    

2. You receive a sales receipt from the county.

    

3. Three weeks later, you get your recorded Sheriff’s Deed in the mail.

    

4. Because the property is a non-homestead lot, the redemption period is 180 days.

    

5. You secure the lot, keep it maintained, and wait.

    

6. The owner does not redeem, and at the end of 6 months, you own it free and clear.

    

7. You sell the property for $20,000.
   

Tips for a Smooth Post-Auction Experience

• Read the auction terms before bidding – Every county has slightly different rules.

   

• Budget for holding costs – Taxes, insurance, and maintenance can add up.

   

• Stay in contact with the county – Check deed status if it’s taking longer than expected.

   

• Consult professionals – Attorneys, title companies, and property managers can help protect your investment.
  

Key Takeaways

• Winning the auction is only the beginning—payment, documentation, and securing the property are critical next steps.

   

• The redemption period affects when you can fully use or sell the property.

   

• Organization and due diligence help protect your investment.

   

Final Word

The day you win a Texas tax deed marks an important milestone, but your work isn’t done. By following the right steps—paying promptly, securing the property, and understanding the redemption period—you can safeguard your investment and position yourself for future success.

 

 

Disclaimer: This article is for educational purposes only and does not constitute an offer to sell or a solicitation to buy securities. Investments with Core Tax Deeds are made through a registered Regulation Crowdfunding (Reg CF) intermediary and are subject to offering terms and investor eligibility. Past performance is not indicative of future results. Please consult your financial advisor before making investment decisions.