Sale Type: | Tax Deed (County Treasurer Auction) |
Interest Rate: | N/A for buyers (owners pay 10% a year to redeem) |
Bid Method: | Public auction with a county-set minimum bid |
2 years (1 year if abandoned); none after the auction | |
Sale Date(s): | Set by each county |
State Statute(s): | NRS Chapter 361 (§§ 361.570 to 361.610) |
No | |
State Website: |
Nevada does not run a standard tax lien certificateA legal document issued by a government authority when a property owner fails to pay property taxes, granting the certificate holder a lien on the property. auction for investors. Instead, the county treasurer holds delinquent property for two years, and if the owner does not redeem it, the county sells it at auction. This guide explains how Nevada tax deed sales work, so you know what to check before you bid on tax-delinquent property in the state.
How Unpaid Taxes Lead to a Sale
When Nevada property taxes go unpaid, the county publishes a notice of 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.. If the taxes, penalties and costs are still unpaid on the first Monday in June, the county tax receiver issues a certificate that lets the county treasurer hold the property in trust for the State and county. Under NRS Chapter 361 (NRS 361.565 and 361.570), this starts the redemption period.
The Two-Year Redemption Period
The owner has 2 years after the first Monday in June of the certificate year to redeem the property. If the property is found to be abandoned, the period is 1 year.
To redeem, the owner pays the delinquent taxes, penalties and costs plus interest at 10 percent per year, assessed monthly. That interest goes to the county, not to investors.
If no one redeems, the tax receiver delivers a deed to the county treasurer, who holds the property in trust until it is sold (NRS 361.585). Even then, the owner, a lender or certain other record interest holders can still have the property reconveyed by paying what is owed, up until the close of business on the third business day before the sale.
How County Treasurers Sell the Property
Each county runs its own sale. In general:
The board of county commissioners orders the sale and sets a minimum amount that covers the taxes, costs, penalties and interest owed.
The county mails notice by certified mail at least 90 days before the sale to the owner and to anyone with a recorded lien or interest (45 days for certain abandoned properties).
The county posts public notice at least 20 days before the sale, or publishes it in a local newspaper for four weeks if the commissioners direct.
Sale dates and formats vary by county, and some counties sell online. Carson City, for example, uses an online auction company.
Contact the county treasurer to find out when and how a sale is held.
What Happens After the Sale
When the buyer pays at least the minimum amount, the county treasurer delivers a quitclaim deed. A quitclaim deed transfers whatever interest the county has, with no promises about the title. Nevada has no redemption period after the auction.
Other points to know:
No action to recover land sold for taxes may be brought more than 2 years after the quitclaim deed is delivered to the buyer (NRS 361.600).
The county’s deed passes the property free of most encumbrances, but easements of record for public utilities and certain irrigation district liens can remain (NRS 361.590).
If a sale brings in more than the taxes and costs, former owners and certain lienholders can claim the excess within 1 year after the deed is recorded (NRS 361.610).
Nevada’s Tax Lien Assignment Option
Nevada law does allow a county treasurer to assign a tax lien to a private party, but only in a narrow way. The property owner must give written, notarized authorization and sign a separate agreement with the assignee. The assignee must pay the delinquent taxes in full and post a bond unless exempt (NRS 361.7303 to 361.733). The rate and terms come from that agreement.
This is not a public lien auction, so the public opportunity in Nevada is the deed sale.
What This Means for Investors
Nevada sits on the tax deed side of investing. A tax deed transfers the property itself, while a tax lien is a claim on the debt that earns interest. In Nevada, the 10 percent redemption interest is paid to the county, so a buyer at the auction is buying the property, not an interest rate.
Returns are not fixed. Price, condition and title vary by property, and all investing involves risk.
What Investors Should Check
Before you bid on any Nevada tax-delinquent property, do your own due diligenceThe research and investigation process an investor conducts before purchasing a tax lien or tax deed to evaluate the property and assess risk.:
Run a full title search, since the deed is a quitclaim deed.
Confirm the county sent the required notices before the sale.
Ask the county treasurer about the sale format, minimum bid and payment deadline.
Check for utility easements and irrigation district liens on the parcel.
Review zoning, access and the condition of the property.
Compare the rules in your own state using the tax lien states vs. tax deed states map.
This page is for education only and is not legal or financial advice. Statutes change, so confirm the details with the county and a qualified attorney before you invest.
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