Which party can redeem a tax sale certificate from a Subsequent Lien Holder?

• A. Prior Lien Holder
• B. Mortgage Holder
• C. Taxpayer
• D. Unknown Owner

Answer: (A)

Redemption rights after a tax sale protect the interests of those who have liens that are senior to the tax lien. A prior lien holder has a claim that predates the tax lien, so if a tax sale certificate sits with a holder, the prior lien holder can step in and redeem by paying the amount due to that certificate holder. Doing so preserves the prior lien’s superiority and stops the tax sale from transferring title. The mortgage holder typically holds a lien that is junior to the tax lien, so they don’t have the standing to redeem in this particular scenario. The taxpayer can redeem as well in general, but the question focuses on who can redeem against a subsequent lien holder, and the party with the senior, prior lien is the one best able to do that. The unknown owner has no such standing.