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

Property tax liens and tax deeds are two different tools used by local governments in North Carolina to collect delinquent property taxes. A property tax lien is a legal claim against a property due to unpaid taxes. When a property has a lien, the owner cannot sell or refinance the property until the taxes, penalties, and interest are paid. A lien can last for several years and gives the local government the right to foreclose on the property if the taxes remain unpaid. A tax deed is a legal document that is issued if a taxpayer has allowed the property tax lien to remain in effect for a certain amount of time. It gives the local government the right to take ownership of the property and sell it at a public auction in order to repay the delinquent taxes. The county typically covers all of the back taxes, penalties, and interest with proceeds of the sale. Any remaining money is paid to the original owner of the property. In summary, a property tax lien is a legal claim on a property due to unpaid taxes, while a tax deed allows the local government to take ownership of the property and sell it in order to repay the delinquent taxes.

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