What is the difference between a property tax lien and a tax deed?

In New Mexico, a property tax lien and a tax deed are two different types of collections options that the state has in place to help recoup unpaid property taxes. A property tax lien is a claim that the state of New Mexico has against a property. It is designed to protect revenue for local governments and schools. Generally, when a property owner fails to pay their taxes, the unpaid amount will become a lien against the property. This is what is known as a “property tax lien.” The lien attaches to the property and is not attached to the person. This means that any future owner of the property is responsible for paying off the unpaid taxes due. A tax deed, on the other hand, is a legal document that transfers title of a property from the original owner to the state when delinquent taxes are not paid. The state of New Mexico can issue a tax deed to a designated purchaser if the property owner fails to pay the delinquent taxes that are due. This means the original owner no longer has a right to the property and it is now owned by the state or a designated purchaser. In conclusion, the difference between a property tax lien and a tax deed in New Mexico is that a property tax lien is a claim the state has against a property when delinquent taxes are not paid, while a tax deed is a legal document that transfers title of a property from the original owner to the state when taxes are not paid.

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