Tennessee Tax Sale Laws — Investor Guide

The investor receives a deed but the original owner has a redemption window to buy it back.

Redemption Period

1 year from sale date

Max Interest Rate

10% / year

IRS Lien Survives

Yes — verify before bidding

Foreclosure Required

Quiet Title Required

Yes

Counties Covered

95 counties

Quiet Title Required in Tennessee

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

$1,500–$5,000

Legal Fees

6–18 mo

Timeline

How Tax Sales Work in Tennessee

Tennessee is a redeemable deed state. You purchase the property and receive a deed. The original owner has 1 year to redeem by paying what you paid plus a 10% penalty. After 1 year without redemption, your deed is valid. Quiet title is strongly recommended. IRS liens survive if the IRS was not properly notified.

Quick Due Diligence Checklist for Tennessee

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 Tennessee

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

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

Budget for quiet title action — required in Tennessee 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: T.C.A. §67-5-2701 et seq. · Verified: January 2025 · Always verify current laws directly with the Tennessee state statutes and your county treasurer. This is not legal or investment advice.

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