Delaware Tax Sale Laws — Investor Guide

The government transfers the deed directly to the winning bidder at auction.

Redemption Period

2 months from sale date

Max Interest Rate

N/A

IRS Lien Survives

Yes — verify before bidding

Foreclosure Required

Quiet Title Required

Yes

Counties Covered

3 counties

Quiet Title Required in Delaware

Before a title insurer will issue a policy on a tax deed property in Delaware, you'll need to complete a quiet title action.

$1,500–$5,000

Legal Fees

6–18 mo

Timeline

How Tax Sales Work in Delaware

Delaware conducts annual tax sales at the county level (3 counties). The winning bidder receives a sheriff's deed. The original owner has a short redemption period (typically 60 days). Quiet title is recommended. IRS liens survive if the IRS was not properly notified.

Quick Due Diligence Checklist for Delaware

Verify property is still on the auction list within 48 hours of sale (redemptions happen until the last minute)

Check for federal IRS liens — they survive the tax sale in Delaware

Search for HOA liens and municipal code violations — these may survive in some counties

Budget for foreclosure costs — required in Delaware to convert a lien to deed

Budget for quiet title action — required in Delaware before title insurance will issue

Drive the property or use street view to confirm structure exists and is accessible

Verify assessed value vs. back taxes owed — if taxes exceed assessed value, it may be a junk property

Source: Del. Code Ann. tit. 9 §8724 et seq. · Verified: January 2025 · Always verify current laws directly with the Delaware state statutes and your county treasurer. This is not legal or investment advice.

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