What is the sale of property to collect payment of delinquent tax or other municipal lien called?

• A. Tax Sale
• B. Foreclosure
• C. Lien Release
• D. Public Auction

Answer: (A)

Tax sale is the sale of property by a government entity to recover unpaid property taxes or other municipal liens. When taxes become delinquent, the municipality may place a lien on the property; if the debt remains unpaid, the property can be sold at a tax sale, typically conducted by public auction. This is different from foreclosure, which is a lender-driven process to recover a mortgage, and from a lien release, which is the document that proves the lien has been satisfied. Public auction describes how the sale is carried out, but the proper name for the process is tax sale.