Within how many years must the lien holder surrender the certificate after being notified of redemption to avoid unclaimed funds going to the municipality?

• A. 3 years
• B. 5 years
• C. 7 years
• D. 10 years

Answer: (B)

When a tax lien is redeemed, the lien holder must surrender the original certificate within a set time after being notified of the redemption. The standard window used in many jurisdictions is five years. This gives the holder a definite period to act while ensuring the funds don’t remain in limbo; if the certificate isn’t surrendered within those five years, the funds are treated as unclaimed property and typically escheat to the municipality. Five years strikes a balance between allowing enough time for administrative processing and avoiding prolonged withholding of public revenue. (Some places may use a different period, but five years is the common baseline.)