Transcript:
Can I get a refund?
Hey there, it’s Casey Denman from TaxSaleAcademy.com and welcome to our weekly question segment. This week’s question comes to us from Lindsey.
She wants to know:
Is there any way to get a refund on a property after you purchase it at a tax sale?
Great question – before we answer if I do want to remind you viewers that you can get a free copy of The Tax Sale Playbook shipped to you if you cover the nominal shipping cost by going to TaxSaleacademy.com.
Alright, Lindsey, back to your question. Is a refund possible? No, it is not. And this is something that comes up from time to time, most noticeably when someone buys something they shouldn’t have.
I actually remember reading a news article not too long ago about a gentlemen that thought he was buying a condo and ended up buying a little stripe of land instead. His complaint was, why can’t they just give me a refund?
In short, the state law doesn’t allow it in nearly all states. And on top of that, it’s extremely difficult, time consuming and expensive since there are recorded legal documents involved. It’s not like just sending something you don’t want back to Amazon.
Now, there are some legal grounds where you might be refunded – for example the sale could be challenged and overturned in some states, or the IRS might step in a redeem the property during their 120 window if it had an IRS lien against it – obviously those are rare examples, so I can’t say that once you pay you will NEVER receive your money back.
But it’s extremely rare. Once you pay, that money is pretty much gone forever and the property is now yours. So let’s HOPE that you did proper due diligence on that property. Unfortunately, it’s often AFTER the purchase that people realize the importance of that due diligence.
Simply put, refunds don’t happen in the tax sale business.
Hopefully this answered your question Lindsey. If you have a followup question or anyone else watching has a question feel free to leave it down below under this video or any of our videos here on youtube.
And as always, check out TaxSaleAcademy.com to grab a copy of your free book or if you’d like to take advantage of the most detailed and step by step training we offer thorugh The Tax Sale academy. See ya next time!