When taxes are delinquent, the Chancery Clerk of the County will advertise the property for sale. When the date of the sale comes, two things can happen.

First, someone will bid on the property and will become the buyer.

Second, if there is no successful bid, the property will be “struck off” to the State of Mississippi.

In either situation, the primary concern is the same - - was the original tax sale/striking off to the State done following the law? If not, the subsequent buyer remains exposed to an action by the original owner to set aside the sale/striking off until a statute of limitation has run.

County Tax Sales

If the property was bought by someone at a County tax sale, then if no one redeems the property within two years by paying the back taxes and interest, the buyer gets a Tax Title from the County. At that point, if the buyer (or a subsequent buyer) begins occupying the property, then after another three years, any suit to set aside the tax sale is time-barred. (Note: occupation by a buyer’s tenant is sufficient.)

Striking off to the State

If no one bids at the tax sale, the property is struck off to the State. After the two-year redemption period passes, someone can buy the property from the State and receive a Tax Patent. 

At that point, if the buyer of a Tax Patent (or a subsequent buyer) begins occupying the property, then after another two years, a suit to set aside the tax sale will be time-barred. (Again, occupation by a buyer’s tenant is sufficient.)

Pros and cons of each approach.

If the person acquiring the property wants to renovate and lease it, the Tax Patent procedure may be preferable. By going this route, the buyer gets (i) property as to which the two-year redemption period has already expired and (ii) a shorter statute of limitation for someone to set aside the tax sale (two years instead of three).

On the other hand, a buyer at a County tax sale (i) has to wait two years to get a Tax Title from the County and (ii) remains exposed to a three-year statute of limitation on an action to set aside the tax sale.

In addition, a buyer at a County tax sale has to wait two years before getting possession of the property. A buyer via Tax Patent, however, is entitled to possession at that time.

Finally, a buyer at a County tax sale will usually pay less to buy the property than the buyer would pay for a Tax Patent from the State, as the price the State wants takes into account the value of the property, whereas the County tax sale is based on the amount of taxes due and a small fee.

Panter Law Firm, PLLC

7736 Old Canton Road, Suite B

Madison, MS 39110

601-607-3156