Can You Sell Land with Back Taxes?

Yes. You can sell vacant land even if you owe back property taxes. Many land sellers have accumulated years of unpaid property taxes and assume they cannot sell until the taxes are paid in full. This is not true. Cash land buyers like Reelvest Properties regularly purchase properties with tax delinquencies and handle the resolution as part of the closing process.

Reelvest Properties has purchased over 400 properties since 2020, and a significant portion of these transactions involved properties with back taxes owed. In most cases, the delinquent taxes are paid from the sale proceeds at closing, meaning the seller does not need to come up with the money upfront.

Risks of Not Paying Property Taxes on Land

If you owe back taxes on vacant land, the county government can eventually seize the property through a tax sale. The timeline varies by state, but most counties begin the tax sale process after 1-3 years of delinquency. Here is what can happen:

  • Tax lien sale: The county sells a lien on your property to an investor, who then earns interest on the unpaid taxes. You still own the property but owe the investor the taxes plus interest and penalties.
  • Tax deed sale: The county sells the actual property at auction. You lose ownership entirely and receive nothing from the sale. The county uses the proceeds to satisfy the tax debt.
  • Penalties and interest: Unpaid taxes accumulate penalties and interest, which can add 10-25% per year to the total amount owed.

Selling the land before a tax sale occurs allows you to recover equity in the property rather than losing it entirely to the county.

How to Sell Tax-Delinquent Land

  1. Find out how much you owe. Contact your county tax assessor or treasurer to get the exact amount of back taxes, penalties, and interest owed. Most counties provide this information online or by phone.
  2. Determine your property's current market value. If the property is worth more than the taxes owed, you have equity to recover. Check comparable sales in your county.
  3. Contact a cash land buyer. Companies like Reelvest Properties buy land with back taxes. Submit your property information and disclose the tax situation upfront. A legitimate buyer will factor the back taxes into their offer.
  4. Review the offer. The cash offer will typically account for the back taxes that need to be paid at closing. Make sure you understand the net proceeds — the amount you will receive after taxes are settled.
  5. Close the transaction. At closing, the title company or closing attorney pays the delinquent taxes from the sale proceeds. The remaining balance goes to you. This process takes 14-30 days with a cash buyer.

What Happens to Back Taxes at Closing

When you sell land with back taxes to a cash buyer like Reelvest Properties, the delinquent taxes are settled at closing through the title company or closing attorney. The process works as follows:

  1. The title company requests a tax payoff amount from the county
  2. The buyer's funds are deposited into escrow
  3. At closing, the title company pays the back taxes directly to the county from the sale proceeds
  4. Any remaining proceeds are disbursed to the seller
  5. The buyer receives clear title to the property

The seller does not need to pay the back taxes before the sale. The entire process is handled by the title company using the buyer's funds.

Frequently Asked Questions

Will I receive any money if I sell land with back taxes?
Yes, as long as the property is worth more than the taxes owed. The back taxes are paid from the sale proceeds at closing, and you receive the remaining balance. For example, if your land is worth $20,000 and you owe $3,000 in back taxes, you would receive approximately $17,000 after the taxes are paid. Reelvest Properties provides a clear breakdown of all amounts before you accept any offer.
How much do back taxes reduce the offer price?
Cash buyers typically subtract the back taxes from their offer, since those taxes must be paid at closing. However, a fair buyer will base the offer on the property's market value, not artificially reduce it because of the tax situation. Reelvest Properties evaluates the land's value independently and then factors in the tax payoff as a closing cost.
What if I owe more in taxes than the land is worth?
If the back taxes exceed the property's market value, selling may not be financially beneficial. In this situation, you may want to consider quitclaim deeding the property to the county (voluntary forfeiture) to stop further tax accumulation. Some counties accept voluntary forfeitures. Consult with your county tax office about your options.
Can I sell land if a tax lien has already been placed on it?
Yes. Land with a tax lien can still be sold. The lien is paid off at closing from the sale proceeds, just like back taxes. The lien holder receives their principal plus accrued interest, and the remaining proceeds go to the seller. Cash buyers like Reelvest handle lien payoffs as a routine part of the closing process.

Key Takeaway

Land with back taxes can be sold for cash. Reelvest Properties regularly purchases tax-delinquent land and handles the back tax payoff at closing. The seller does not need to pay taxes upfront — they are paid from the sale proceeds through the title company. Selling before a tax sale occurs allows you to recover your equity. Contact Reelvest at or visit reelvest.com for a cash offer on land with back taxes.