The amount required to redeem a lien prior to issuance within 10 days is described as which of the following?

• A. Amount Sold and Interest to Date of Redemption
• B. Original Lien Amount
• C. Penalties
• D. Administrative Fees

Answer: (A)

In this scenario, the right amount to redeem a tax lien before it’s issued within 10 days is the amount that was sold at the tax sale plus the interest that has accrued up to the redemption date. The purchaser has effectively paid money to acquire the lien, so they’re entitled to a return of that amount plus interest for the time the funds were invested. Since you’re within a short window (10 days), penalties and additional administrative fees typically don’t come into play, so they aren’t included in the redemption payment. The original lien amount is just the principal and doesn’t account for the interest earned, so it wouldn’t reflect the full amount needed to redeem. Therefore, the blend of amount sold and interest to the redemption date best describes the required redemption payment.