14. What is an Upset Tax Sale?

The first time a property with a delinquent real estate tax is exposed to tax sale is the Upset Tax Sale. The Upset Tax Sale is held in September of each year. The sale as a public auctioned is held at the County Court House. The minimum bid required is an amount to cover back taxes, current taxes and the administrative costs of the Tax Claim Bureau to conduct the sale. However, the buyer may gain ownership, possession and control but all other liens: municipal sewer fee liens, municipal water fee liens, mortgages, encumbrances / loans remain active. A Tax Claim Bureau cannot make any representations about the property, warranty or guarantee. Properties bought at an Upset Tax Sale are bought at the risk of the buyer or as what is known as “caveat emptor.” Note: often an Upset Tax Sale is confusedly referred to as a Sheriff’s Sale. A Sheriff’s Sale is a public sale of a property but its purpose is not to collect taxes owed. A Sheriff’s Sale is conducted to satisfy a private lien holder. Most often a private lien holder is a mortgagee which is often a bank.