How to Profit from South Carolina’s Redeemable Deeds

Sale Details

South Carolina Tax Sale — Tax Liens – Yearly in October-December

Redemption Period

1 Year

Interest Rate / Penalty

3% Per Quarter / 12% Annually

Bid Procedure

Highest Bidder Wins

Online Auction

No

Over the Counter

Yes

Number of Counties: 46

Useful Links

South Carolina Legislature

South Carolina offers a unique and potentially lucrative opportunity for those interested in tax sales. Understanding how these sales work in South Carolina, as well as the benefits and risks, can help investors make informed decisions. Below is a detailed guide to South Carolina’s tax sales, including how they work, key considerations for investors, and why South Carolina might be the right choice for your next investment.

What is the South Carolina Tax Sale?

The county Delinquent Tax Collector conducts tax sales in South Carolina to recover unpaid property taxes. When property taxes are not paid by March 17th of the following year, the property may be auctioned off at a tax sale.

Key Steps in the South Carolina Tax Sale Process:

Delinquency: Taxes must be paid between September 30th and January 15th each year. If unpaid by March 17th, they are considered delinquent, and the property is subject to a tax sale.

Notice: The property owner receives multiple notices, starting with an Execution Notice around April 1st. If the taxes remain unpaid, a levy notice is posted on the property, and it is advertised for sale in local newspapers.

Tax Sale: Held typically in November or December, the auction sells the property to the highest bidder. The winning bidder must pay in full immediately.

Redemption Period: The original owner has one year to redeem the property by paying the overdue taxes, penalties, and interest (up to 12%). If the property is redeemed, the bidder receives their money back plus interest. If not, the bidder receives a tax deed.

Forfeited Land Commission Sales: If a property doesn’t sell at auction, it may be available for purchase directly from the county through the Forfeited Land Commission (FLC).

Why Invest in South Carolina Tax Sales Auction?

High Returns: The interest rate in South Carolina can reach up to 12% annually, making it an attractive option for investors seeking higher returns than traditional savings accounts or bonds.

Manageable Risks: The state provides a clear process for redemption, ensuring that investors either receive their investment back with interest or obtain ownership of the property.

Redeemable Deed: South Carolina uses a redeemable deed system, meaning the original owner has a year to reclaim the property, offering the investor either a return on investment or full property rights.

Open to All Investors: Both local and international investors can participate, making South Carolina’s tax sales a global opportunity.

Important Details for Investors in South Carolina

Tax Sale Type: Redeemable Deed

Typical Sale Date: November or December

Redemption Period: 1 year

Interest Rate: Up to 12% annually

Bidding Process: Premium Bid

Deposit: Immediate payment required after winning the bid

Fun Facts About South Carolina

Population: Over 5 million, making it a growing state with a dynamic real estate market.

History: South Carolina has a rich history dating back to the early 1600s and was one of the original 13 colonies.

Unique Laws: South Carolina’s property tax system has evolved significantly, reflecting its historical and economic changes.

Why South Carolina Is Ideal for Tax Lien/Deed Investors

South Carolina’s tax sales are a good option for investors because they offer high returns with less risk. The process is clear and protects both buyers and property owners. The state’s growing population and active real estate market make it a great place to find valuable properties.

The Auction Process in South Carolina Tax Sale

The auction process in South Carolina is straightforward, but there are essential details investors must understand to succeed.

Over-the-Counter Sales: Unsold properties become available for direct purchase after the auction through the county’s FLC.

Highest Bidder Wins: Counties typically hold auctions in courthouses, where the highest bidder wins the property. You must make payments immediately after the bid.

Interest Rate: Investors earn up to 12% annually on redeemed properties, a competitive rate that outperforms many traditional investments.

No Online Auctions: Unlike some states, South Carolina does not conduct tax sales online. Investors must attend in person or send a representative.

Investing in South Carolina tax sales is smart for those seeking high returns with clear, defined risks. Whether you are a seasoned investor or new to tax sales, understanding the process and the benefits can help you make informed decisions.

South Carolina Redeemable Deeds Auction Sale FAQs

Q: How can I buy a property at a tax sale?
A: Attend the auction, bid on a property, and if you win, pay immediately.

Q: What if I win a bid at a tax sale?
A: You pay right away, and the original owner has a year to pay you back, plus interest. If they don’t, you get the property.

Q: Can I own a property by paying its back taxes?
A: No, paying someone else’s taxes doesn’t give you ownership.

Q: What happens if the property sells for more than the owed amount?

A: The county holds the extra money. The original owner can claim the money if the owner doesn’t redeem the Property

Q: What should I watch out for in a tax sale?
A: Be aware of potential legal issues, like improper notices, that could void the sale.

Interested in learning more about tax lien investing in South Carolina? Explore more about the opportunities available and start your investment journey today. Book a consultation with us for personalized advice and start with confidence.