Prince George's County
TAX SALE INFORMATION AND PROCEDURES
This document was prepared to provide relevant information regarding the annual Prince George’s County Tax Sale and the legal requirements of the County as well as the purchaser of a tax sale certificate. Legal references herein refer to the Tax Property Article of the Annotated Code of Maryland.
Liens on properties offered at the 2025 Prince George’s County Tax Sale are subject to the following procedures. The County shall offer lien certificates on individual properties via an Internet-based, sealed (direct) bid auction using the high bid premium method as provided for in the Annotated Code of Maryland, Tax Property Article§14-817(b)(2) et. seq.
TAX INFORMATION
Ordinary taxes, which include taxes on real property, are due and payable without interest as of the first day of July in each taxable year. Under the annual payment schedule, the taxes are overdue and in arrears on the first day of the succeeding October. Under the semi-annual payment schedule, the first installment becomes delinquent as of October 1st, and the second installment becomes delinquent as of January 1st. Interest accrues at the rate of one and two-thirds percent (1-2/3%) per month or any fraction of a month until paid (Section 14-603 and Section 14-703). Interest charges are posted on the first day of each month, beginning October 1st, until paid.
Any unpaid State, County, City, and Municipal taxes on real property constitute a lien on the real property from the date they become due until paid (Section 14-804).
It is mandatory that the Collector of Taxes sell, at the time prescribed by local law, any property on which taxes are in arrears (Section 14-808).
Thirty days or more before the date the property is first advertised for tax sale in a newspaper, the Collector is required to mail a statement to the person who last appears as an owner on the Collector’s tax rolls. The statement contains the owner’s name, the amount of taxes due, and a notice that the property must be sold if the taxes are not paid. For this purpose, Prince George's County prepares delinquent tax bills to which the required notice is attached (Section14-812).
Once a week for four successive weeks, the Collector will publish a listing of the delinquent properties in one or more local newspapers. This advertisement serves as notice to the property owners and any lien holders that the property is to be sold. The advertisement will contain the date, time, and place of the sale, as well as a description of the property, the name of the person who last appears on the Collector’s tax roll as the owner, the assessed value of the property as determined by the last assessment and the tax sale amount. The tax sale amount advertised includes or may include the delinquent taxes (State, County, and Municipal, where applicable), interest from October of the levy year through the month of sale, trash & garbage charges, special improvement assessments (total unpaid), front foot benefit charges, tax liens, etc. An advertising fee of $30.00 is also included in the total. The list of delinquent properties may also be found on the tax sale website.
From April 18 to May 9, 2025, properties will be removed from the list as payments are received from taxpayers during the newspaper advertising period. Consequently, the final newspaper advertisement on May 9 will feature fewer properties than those originally listed. Additionally, the website will be updated weekly. The last update on the tax sale website will be posted after 4:30 p.m. on Friday, May 9, 2025, for all batches. A notification will be included on the website to indicate that the final updates have been completed.
THE TAX SALE
Each parcel of property offered at tax sale will be sold as an entirety (Section 14-814). No property will be sold for a sum less than the advertised price. When sold, the County’s lien on the property passes to the bidder/purchaser (Section 14-817). A Tax Sale purchase does not automatically convey title to a purchaser; there are legal procedures that must be satisfied before becoming the owner of an auctioned property. The current owner may redeem by paying the taxes owed. Until the Final Order of Foreclosure is signed by the Judge and a deed is issued to the Tax Sale purchaser, the current owner maintains ownership of the property.
**Important Steps for Tax Sale Bidders**
Ensure you follow these steps carefully to successfully participate in the upcoming auction.
All individuals interested in bidding at the tax sale must complete the following steps to be eligible for participation in the auction:
1. **Register on the Tax Sale Website: ** Visit https://taxsale.princegeorgescountymd.gov to create your account.
2. **Registration Guidelines:** Mail-in or email registrations are not acceptable. Registration opens on April 11, 2025, and closes on April 25, 2025, at 5:00 PM EST. Ensure that all components of the bidder registration process are completed by this deadline, including uploading the IRS W-9 form. To upload documents, log in with the username and password you created during registration, select “Bidder,” and then click “Upload Tax Documents.”
3. **Pay Registration Fees:** A non-refundable registration fee of $150.00 must be paid via ACH debit. This fee will not be credited toward any certificates purchased. Additionally, a deposit fee of $1,000.00, also paid via ACH debit, is required. This deposit will be deducted from your total due for any certificates purchased or refunded if no certificates are awarded. All payments must be made in U.S. dollars.
4. **Bank Account Requirement:** Please provide a valid bank account from which only your registration and deposit fees will be withdrawn.
5. **Monitoring Your Auction Account** Bidders are responsible for ensuring that sufficient funds are available to cover payment for all successful bids. Payments must be made by wire transfer or cashier's check at the conclusion of the auction.
6. **Agreement to Terms:** Bidders must accept all terms outlined in the “Information and Procedures” and “Bidding Guidelines.” Registered users must register every year, and user logins expire on December 31.
All bids shall be submitted on the website. Bids can be submitted beginning May 5, 2025. Certificates will be awarded to the highest bidder on May 12, 2025, in accordance with the batch listings that will be posted on the website. Batches are subgroups of the advertised list of properties that serve as a means of organizing tax certificates for the purpose of facilitating bid submission. Each tax certificate in each Batch is offered independently of every other tax certificate in that batch. A unique closing time is established for each batch.
Certificates for the Tax Sale Auction will be grouped into three batches. Parcels in Batches one and two will be parcels with improvements, and those in Batch three will be vacant lots. Each account will be awarded to the highest bidder in each auction. Results will be displayed one hour following the close of each batch.
* Public Auction First batch will close at 10:00 a.m. EST.
* Public Auction Second batch will close at 12:00 p.m. EST.
* Public Auction Third batch (land-only accounts) will close at 2:00 p.m. EST.
The bid may be a dollar value, or it may be in the form of a bid factor (a percentage of the assessed value). For example, a bid factor of .46 would indicate that the bidder is bidding .46 times the property's assessed value.
All bids must be made in good faith. Once a bid is placed, whether intentionally or not, the bidder is fully responsible for it and cannot withdraw it. If a successful bidder fails to make full payment for any or all of the certificates awarded in the tax sale, including the associated High Bid Premium, they will forfeit their right to receive those certificates and may be banned from participating in future tax sales. The certificates will then be awarded to the next highest bidder. All bidders are responsible for monitoring their auction accounts to ensure that sufficient funds are available for payment at the close of the auction.
Each successful bidder will receive an invoice via email by 4:00 p.m. (EST) on the day of the tax sale. Payment must be made in guaranteed funds, either through a wire transfer or a cashier's check, covering the total amount of awarded bids plus any applicable high bid premium.
Cashier's checks must be delivered to the Prince George’s County Office of Finance at 1301 McCormick Drive, Suite 1100, Largo, MD, by 3:00 p.m. (EST) the day after the tax sale. Wire transfers should be sent according to the instructions provided in the invoice and must be received in the County's bank account by 3:00 p.m. (EST) the day after the tax sale.
Pursuant to Tax Property Article 14-817(b), the County has established a high bid premium for all certificates sold at tax sale. The high bid premium is 20% of the amount by which the bid exceeds 40% of the property’s assessed value. The high bid premium is due and payable when the successful bidder pays the tax lien amount. The county will confirm the receipt of the payment with its bank.
Successful Bidders are required to complete and upload the IRS form W-9, Request for Taxpayer Identification Number and Certification, as well as an Authorization for Electronic Funds Disbursement form for ACH payments.
The Collector will provide the tax sale purchasers with IRS form 1099-INT, paid as required by LAW.
HIGH BID PREMIUM
The County will refund the high bid premium, without interest, to the holder of the tax sale certificate when the property is redeemed or to the plaintiff in a foreclosure action upon delivery of a tax sale deed for the property associated with the high bid premium. Please note that the high bid premium is non-refundable after the period specified in Section 14-833 of the Tax-Property Article for filing a foreclosure action if there has been no redemption and no foreclosure action has been filed within that timeframe. Additionally, the high bid premium will not be refunded if a tax sale foreclosure suit is dismissed, and no redemption has occurred.
|
EXAMPLE #1
|
|
|
EXAMPLE #2
|
|
|
Assessed Value
|
$118,000
|
|
Assessed Value
|
$100,000
|
|
Bid Factor
|
x 0.46
|
|
Bid Factor
|
x 0.50
|
|
Bid
|
= 54,280
|
|
Bid
|
= 50,000
|
|
40% of Assessed Value
|
47,200
|
|
40% of Assessed
Value
|
40,000
|
|
Premium
|
= 7,080
|
|
Premium
|
= 10,000
|
|
20% of Premium
|
x .20
|
|
20% of Premium
|
x .20
|
|
Premium
|
= 1,416
|
|
Premium
|
= 2,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes
|
$ 1,299
|
|
Taxes
|
$ 2,000
|
|
High Bid Premium
|
+ 1,416
|
|
High Bid Premium
|
+ 2,000
|
|
Total Due
|
= $2,715
|
|
Total Due
|
= $ 4,000
| |
THE CERTIFICATE OF TAX SALE
After six months from the date of sale for non-principal residence properties and nine months for principal residence properties, the Collector will issue a certificate of sale to the purchaser. This certificate confirms that the property described in it was sold by the Collector to the purchaser, and it includes the date of sale, the bid amount, the advertised amount, and the annual interest rate applicable upon redemption.
The certificate becomes null and void if the holder does not file an action to foreclose the right of redemption within two years from the date of sale. If the certificate is deemed void, the holder's interest in the certificate of sale ceases (Section 14-833).
A properly executed certificate of sale from the tax sale auction can be assigned with notification to the Treasury Division. This assignment transfers all rights, titles, and interests of the original purchaser to the assignee (Section 14-821). The assignee must complete an IRS W9 to complete the transaction and receive a tax certificate.
The certificate of sale is presumptive evidence in all courts, in all proceedings by and against the purchaser, of the truth of the statement therein and of the title of the purchaser to the property (Section 14-823).
The certificate of sale may be recorded among the county's land records. However, failure to record does not in any manner affect the right to institute foreclosure proceedings within the time limits prescribed (Section 14-822).
REDEMPTION – PRIOR TO COMPLAINT
The owner or other person having an estate or interest in the property sold has the right to redeem the property at any time until the right of redemption is finally foreclosed by an order of the Circuit Court (Section 14-827).
To redeem property after the tax sale, taxes must be paid ONLY TO THE TAX COLLECTOR:
(1) the total tax sale price of the property and
(2) any taxes, interest, and penalties accruing after the date of the tax sale
Payment must be made using one of the following methods: cashier’s check, mortgage company check, money order, or credit card. Please note that credit card payments can only be processed in the Treasurer’s Office; they cannot be made over the phone or online.
The interest rate is established under Section 14-820 and is calculated from the date of the tax sale to the date of the redemption payment, as outlined in Section 14-828. According to the certificate of sale, the interest rate is twenty percent (20%) per annum.
During the first seven months following the tax sale date, all properties auctioned as principal residences can be redeemed without incurring legal fees. After this seven-month period, if the certificate holder or their representative has notified the Treasury Division in writing that legal fees have been incurred, a release must be obtained before the owner can pay the redemption amount to the County.
For non-principal properties and parcels without improvements, they can be redeemed without paying legal fees for four months after the sale. The certificate holder may add an attorney to the accounts once this four-month period has expired by sending written notice to the Treasury Division.
REDEMPTION – AFTER COMPLAINT
Upon redemption, the plaintiff or the holder of the certificate of sale may be reimbursed for attorney’s fees and expenses incurred in any action or in preparation for any action to foreclose the right of redemption, as specifically provided in Section 14-843 of the Tax Property Article.
Once the redemption amount is received and any necessary attorney’s release or dismissal is provided, the Collector will reimburse the holder of the certificate, as stated in Section 14-828.
If a purchaser has filed an action to foreclose the right of redemption and a dispute arises regarding the redemption, a court order is required, according to Section 14-829.
ACTIONS TO FORECLOSE
The holder of a certificate of sale for a principal residence may file a complaint in the Circuit Court to foreclose all rights of redemption for the property at any time after nine months from the sale date. For a non-principal residence property, this complaint may be filed six months after the date of sale. If the action is not taken within two years after the sale, the certificate becomes null and void (Section 14-833). The plaintiff must send a copy of the complaint to the Treasury Division.
The certificate of sale must be attached to and included as part of the complaint (Section 14-835). In any action to foreclose the right of redemption, the plaintiff must be the holder of the certificate of sale.
The defendants in these proceedings must include: (a) the record owners of the property, (b) owners of ground rents (if applicable), (c) mortgage holders and trustees under any deed of trust, (d) the State of Maryland (if appropriate), and (e) the County (Section 14-836).
If the court issues a final judgment in favor of the plaintiff, this judgment gives the plaintiff an absolute and indefeasible title in fee simple. If the sold property was subject to ground rent, the judgment will grant a leasehold interest to the plaintiff (Section 14-844).
The court’s final judgment will direct the Collector to execute a deed upon payment of the remaining purchase price, along with all accrued taxes, interest, penalties, and fees that have accumulated since the sale. The deed must be prepared by the holder of the certificate of sale or by an attorney. The Collector is not obligated to execute the deed until the Clerk of the Court provides a certified copy of the judgment. If the holder of the certificate fails to comply with the terms of the final judgment within 90 days, the court may strike the judgment upon request from an interested party (Section 14-847). Notify our office once the Court Order is signed for a payoff to process the tax sale deed or send an email to TAXSALE@CO.PG.MD.US .
Once a judgment is granted, the plaintiff becomes liable for any taxes due after the judgment and for any surplus bid (Section 14-844). A person who obtains a deed to property under this subtitle is entitled to receive a writ for possession of the property under the Maryland Rules as if they had obtained a judgment awarding possession (Section 14-850).
Updated 4/17/2025