Sale Type: | Hybrid – Tax DeedA legal document that transfers property ownership to the government or an investor after the owner fails to pay property taxes for an extended period. w/ Redemption PeriodThe legally defined timeframe during which a property owner can reclaim their property by paying the delinquent taxes plus interest and penalties. |
Interest Rate: | 15% Penalty |
Bid Method: | Premium Bid |
Redemption Period: | 60 Days |
Sale Date(s): | Year Round (Varies by county) |
State Statute(s): | |
No | |
State Website: |
Delaware State Overview
There are 3 counties in Delaware, which hold tax deed sales. Tax sales are conducted by the county sheriff. The minimum bid is the amount of past due taxes, interest, costs, and penalties. The finance department or the chief county financial officer approves or disapproves the final bid at a sale made by the Sheriff.
Delaware uses the Premium Bid Method. The counties bid will include the back taxes, penalties, interest, and any administrative costs. The deed will be bid up in price until a high bid has been established. The investor with the highest bid receives the deed to the property.
The redemption period in Delaware is 60 days from the time of the sale. If the property owners chooses to redeem the property, he must pay back the full amount of the bid plus the rate of return at 15%.
The state statutes in Delaware allow the counties more than one way to handle their tax sales. In some counties you will see a 20% interest and a one year redemption, and other will be the way you see above with a 15% interest and 60 day redemption. After the sale the county attorney has to approach the Supreme Court and petition for completion of the sale. The faster the owner pays the delinquent taxesProperty taxes that remain unpaid past the due date, which may result in penalties, interest, and eventually a tax lien being placed on the property., the greater the return of the investor.
Sussex County Treasury Division The Circle, P.O. Box 429, Georgetown, DE 19947 Phone: 302-855-7760 Fax: 302-854-5078
In Delaware, the taxing authority will sell hybrid tax deeds to the winning bidders at delinquent property tax sales.
Tax Sale Type: Hybrid Tax Deed (Sec. 8727).
Contact: Tax collecting authority (Sec. 8773).
Interest Rate and/or Penalty Rate: 15% penalty (Sec. 8758)
Bid Procedure: Premium bid/highest bidder (Sec. 8779).
Redemption Period: 60 days (Sec. 8729).
Law: Delaware Code, Title 9, Part V, Chapter 87, “Collection of Delinquent Taxes.”