Redeemable Deed States Explained (Georgia, Texas & More)
Redeemable deeds are a hybrid: you buy the property like a tax deed, but the former owner can still buy it back within a set period by paying a penalty, which becomes your return. It's one of the highest-return, most misunderstood corners of tax sale investing.
- State
- GA
- Sale
- Redeemable
- Redemption
- 12 mo
- Rate
- 20%
The former owner has 12 months to redeem. Until then you do not hold clear possession.
See all 50 state rules →How redeemable deeds work
You win the auction and receive a deed, but a redemption period runs (12 months in Georgia, 6 months to 2 years in Texas). If the owner redeems, you get your money back plus a penalty. If they don't, you keep the property and move to clear title.
The returns
Georgia pays a 20% penalty in the first year (plus 10% each additional year). Texas pays 25% in year one and up to 50% in year two on homestead/agricultural property. These are penalties, not annualized interest, so a quick redemption is a very high effective return.
- Georgia, 20% first year, +10%/yr
- Texas, 25% year 1, 50% year 2 (homestead/ag)
- Tennessee, ~10%/yr, 1-year redemption
What to watch
Redeemable deeds still carry surviving-lien and title risk, and you must follow the state's barment/foreclosure process to firm up title if there's no redemption. Score each one before you bid.
Score every auction before you bid
TaxDeedIQ gives every US tax deed & tax lien auction a 0–100 safety score, surviving liens, IRS redemption, flood, homestead.
Start my free trialRedeemable Deed States Explained (Georgia, Texas & More) FAQ
What is a redeemable deed?
A deed sold at auction where the former owner can redeem within a statutory period by paying the bid plus a penalty. If they don't redeem, the buyer keeps the property.
Which states are redeemable deed states?
Georgia, Texas, Tennessee, Connecticut, Delaware, Hawaii, Louisiana, Massachusetts, Rhode Island and South Carolina, among others.
More guides
- Tax Deed vs Tax Lien: What's the Difference? (2026 Guide)
- Is Tax Deed Investing Safe? 6 Risks to Check Before You Bid
- Tax Deed Surplus Funds: How Overbid Recovery Works
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- How to Buy Tax Liens in Wyoming: County Auctions, Interest Rates, and the Risks Investors Must Evaluate First
- How to Buy Tax Liens in Nebraska: County Auctions, 14% Interest, and the Risks Investors Must Evaluate First
Informational only, not legal or investment advice. Confirm rules with the county and consult a licensed professional before bidding.