Limestone County, Texas Redeemable Tax Deed: How Tax Sales Work and Why Investors Love Them

Introduction of the county and about the article

Limestone County sits in Central Texas about thirty miles east of Waco. Mexia is its largest community, and Groesbeck serves as the county seat. The county is known for its rolling blackland prairies, numerous lakes and rich history. This article introduces how the county conducts tax sales and explains why redeemable tax deeds are an attractive investment. It answers common questions about auction dates, bidding requirements and the redemption period. A few local facts and attractions are also highlighted to give investors a feel for the area.

What is/Brief Overview of County’s Tax Lien/Deed Investing

Texas does not sell tax lien certificates. Instead, counties sell redeemable tax deeds. When property taxes remain unpaid, the county obtains a court‑ordered foreclosure and sells the land at public auction. The winning bidder receives a sheriff’s deed without warranty and must pay the bid amount in cash or cashier’s checkl. The former owner has a statutory right to redeem the property by reimbursing the purchase price, fees and a redemption premiuml. Because the deed is redeemable, investors earn returns via penalties instead of long‑term ownership. Limestone County follows the state’s rules for these tax sales, and the process offers both security and predictable returns.

Important Details (table form)

Item	Summary
Tax Sale Type	Redeemable tax deed; Texas does not auction tax lien certificates.
Typical Sale Date	First Tuesday of each month between 10 a.m. and 4 p.m., or the first Wednesday if the Tuesday falls on 1 January or 4 July. Recent notice: auction scheduled for the first Tuesday in Novemberl.
Redemption Period	Two years for homestead, agricultural or mineral propertyl. 180 days for all other property.
Interest / Premium	Redeeming owners pay 25 % of the purchase amount in the first year or 50 % in the second yearl.
Bid Procedure	Oral public auction at the courthouse; highest bid wins; registration and valid ID requiredl.
Deposit & Payment	No advance deposit; successful bidders pay the full bid immediately with cash or cashier’s checkl.

Fun Facts About the County

• Location & Size: Limestone County covers about 931 square miles in the Blackland Prairies and is drained by the Navasota River. Its terrain ranges from 375 to 665 feet above sea level and includes rolling prairie and clay soils.
  
• Natural Resources: The county name comes from its abundant limestone. Other resources include kaolin and ceramic clays, industrial sand, lignite coal, oil and gas.
  
• Water & Climate: Recreational lakes such as Lake Mexia, Springfield Lake and Lake Limestone dot the landscape. Annual rainfall is about thirty‑eight inches and temperatures range from winter lows near 37°F to summer highs around 96°F.
  
• Population & Culture: The county is home to roughly twenty‑two thousand residents. It retains a rural charm with small towns like Kosse and Thornton, but also has a rich frontier history. Fort Parker, the site of an 1836 Comanche raid, is preserved as a historic park and museum.
  
• Economy & Industry: Traditional agriculture has given way to diversified industries. Today’s economy includes manufacturing, energy extraction and healthcare services. The county also hosts part of the Limestone Electric Generating Station, a major employer.
  

Attractions & Economic Highlights

Attractions: Visitors enjoy boating and fishing at Lake Limestone and Lake Mexia, exploring Fort Parker State Park, and learning local history at Old Fort Parker and the Limestone County Historical Museum. The Confederate Reunion Grounds State Historic Site near Mexia hosts living‑history events. Outdoor lovers can camp, hike or bird‑watch in the county’s parks.

Transportation: U.S. Highway 84 runs east–west through Mexia and Tehuacana, while State Highways 7, 14, 164 and 171 link towns such as Groesbeck, Kosse and Coolidge. The Mexia‑Limestone County Airport (LXY) provides general aviation services. Larger commercial flights are available in Waco and Dallas.

Economy: The county’s mineral resources support energy and mining operations. Agriculture remains important, with cattle, hay and cotton farms. Manufacturing and distribution facilities benefit from the central location and access to highways. Healthcare, education and public administration provide stable employment in Groesbeck and Mexia.

Community: The area offers a low cost of living, friendly small‑town lifestyle and abundant outdoor activities. Seasonal events include rodeos, fishing tournaments and historical reenactments.

Why This County Is Ideal for Tax Deed Investors

Limestone County combines predictable rules with attractive returns. Texas law requires tax deeds to be sold in a transparent public auction between 10 a.m. and 4 p.m. on the first Tuesday. Investors can secure properties for a fraction of market value and earn a fixed redemption premium of 25 % in the first year or 50 % in the second yearl. Because Texas uses redeemable deeds, investors face low risk: either the property owner redeems and pays the premium or the investor acquires clear title after the redemption period. A growing population and diverse economy support resale opportunities.

Auction Process for Tax Deed Sales

Texas tax deed auctions follow strict procedures designed to protect both the taxing entities and bidders. All sales are public and open to anyone who registers before the auction and presents valid identificationl. The sale is conducted by the sheriff or constable acting under a court‑ordered judgment. Below is a clear description of how the auction works.

How the Auction Works

1. Notice and Advertisement: Delinquent tax attorneys publish a notice of sale with the date, time, location and a list of properties. Limestone County’s bid sheet for a recent sale shows the auction scheduled for the first Tuesday at 10:00 a.m. at the courthousel.
   
2. Registration: Before bidding, each participant must register with the official conducting the sale and show government‑issued ID. The name on the deed must match the registered bidderl.
   
3. Bidding: The sheriff conducts the sale as an oral auction. Bidders call out amounts starting at the minimum bid (usually the total of delinquent taxes and court costs)l. The highest bid wins the property.
   
4. Payment: Winners must immediately pay the full bid amount with cash or cashier’s check payable to the Limestone County Tax Officel. Failure to pay incurs a penalty equal to twenty percent of the property’s value plus costsl.
   
5. Transfer of Title: After payment, the county issues a sheriff’s deed without warrantyl. The purchaser gains possession twenty days after the deed is recordedl.
   

Redemption Period: The former owner may redeem the property within two years for homestead, agricultural or mineral propertyl, or within 180 days for all other property, by reimbursing the purchase price plus the statutory premiuml. If the owner does not redeem, the investor keeps the property free of prior tax liens.

Maximum Potential Returns and Expected Returns on Limestone County Tax Deed Certificates

In Limestone County the redemption premium functions as the investor’s return. Texas law sets the premium at 25 percent of the purchase amount if the owner redeems during the first year and 50 percent if redemption occurs during the second yearl. For non‑homestead property, the redemption period is 180 days; when the owner redeems within that period the investor receives a 25 % premium. These rates are fixed by statute and not bid down at auction. Because the premium is based on the entire purchase price and certain allowable costs, the effective annual yield can exceed returns from many other investments. If the property is not redeemed, the investor may obtain clear title and can resell, lease or develop the property.

Open to All Investors / Foreign Investor Participation

Texas does not restrict participation in tax deed sales based on residency. Any individual or legal entity, including foreign investors, can bid at Limestone County auctions, provided they register and pay with cash or cashier’s checkl. Non‑U.S. investors should appoint a local representative to attend the sale and record the deed. The county requires the purchaser’s name on the deed to match the registered bidderl, so foreign buyers must plan accordingly. After purchase, investors must comply with U.S. tax laws and may need a tax identification number. The lack of bidding restrictions makes Texas tax deeds an accessible global opportunity.

What Due Diligence Entails

Steps to Perform Due Diligence

Successful investors always conduct thorough research before bidding. Due diligence should include:

• Property Inspection: Visit the property or view aerial imagery to confirm its location, access, and any improvements. The bid sheet warns that properties are sold “as is” and that bidders must satisfy themselves regarding location and conditionl.
  
• Title Search: Check county records for liens, judgments or other encumbrances. The sheriff’s deed conveys title without warrantyl, so buyers must verify what obligations survive the sale.
  
• Taxes and Assessments: Verify whether other taxes (city, school or special assessments) are due after the judgment datel. Buyers are responsible for taxes accruing after the sale.
  
• Zoning and Use: Confirm zoning restrictions, floodplain status and property access. Some parcels may be landlocked or unsuitable for development.
  

Risks of Skipping Due Diligence

Skipping due diligence can lead to unpleasant surprises. Properties might be vacant lots with no road access or might have nuisance liens for demolition or mowing feesl. Title issues may require a quiet‑title lawsuit before resale. Without proper research, an investor could overpay for a parcel that cannot be resold or developed. Due diligence mitigates these risks and helps investors make informed bids.

Buying Over‑the‑Counter (OTC) Liens/Deeds in Limestone County

Texas counties occasionally have struck‑off properties that did not sell at auction. These redeemable deeds are often sold privately by the county or its delinquent tax attorney. Investors can acquire them at the minimum bid and still earn the statutory redemption premium. To purchase OTC deeds, contact the law firms listed on the county website (such as Linebarger Goggin Blair & Sampson or McCreary Veselka Bragg & Allen) for a list of available parcels. Payment requirements and redemption rules mirror those at auction. The main benefit of OTC purchases is the absence of competitive bidding, which can lead to better pricing. However, investors should perform the same due diligence and verify that the property has market value.

Why Limestone County is a Top Choice for Tax Deed Investors

Economic and Tax Advantages

Limestone County offers a stable, diversified economy anchored by agriculture, energy and manufacturing. Local resources such as oil, natural gas, sand and limestone support industrial operations. The county’s central location near Waco and the Dallas–Fort Worth metroplex provides access to major markets via U.S. Highway 84 and several state highways. Texas has no state income tax, and property taxes are relatively low compared with some coastal states, making holding costs manageable. Investors can enjoy high redemption premiums with minimal competition.

Real Estate Market Overview

Housing costs in Limestone County are modest, with median property values well below those in urban counties. Demand for rural homes and recreational land remains steady because of the area’s lakes, parks and small‑town appeal. Redeemed properties often become primary residences, rental homes or weekend retreats. When properties are not redeemed, investors may sell to local buyers seeking affordable land. Because the population is growing slowly and the economy is diverse, the market provides consistent exit opportunities without the volatility seen in bigger cities.

Conclusion

Texas’s redeemable tax deed system gives investors a unique blend of security and high returns. Limestone County follows clear state rules: auctions take place on the first Tuesday of each month between 10 a.m. and 4 p.m. at the courthouse; registration and payment must be completed on sitel; and redemption periods range from 180 days to two years with premiums of 25 % or 50 %l. The county’s strategic location, natural resources and growing communities make it a compelling place to invest. As with any investment, thorough research is essential. By understanding the process, investors can take advantage of high returns while helping local governments collect delinquent taxes.

Pro Tips

• Arrive Early: Registration occurs immediately before the sale. Arriving at least thirty minutes early ensures you have time to register and review last‑minute changes.
  
• Bring Certified Funds: Only cash or cashier’s checks payable to the Limestone County Tax Office are acceptedl. Plan ahead with your bank.
  
• Bid Conservatively: Set a maximum bid based on the property’s market value minus redemption premium. Don’t let competition push you beyond your budget.
  
• Check for City Liens: Municipalities may have demolition or mowing liens that survive the salel. Contact the city’s code enforcement office before bidding.
  
• File the Deed Quickly: The redemption period begins when the deed is recordedl. File promptly to start the clock and secure possession rights.
  

FAQs for Limestone County Tax Deeds

1. What happens after I win a tax deed? You must pay with cash or cashier’s check immediatelyl. The sheriff provides a deed without warranty. File it with the county clerk to start the redemption period.
   
2. Can I enter the property right away? Texas law allows the purchaser to take possession twenty days after the deed is recordedl. However, the former owner may redeem during the redemption period.
   
3. Do I need to evict occupants? If the property is occupied, consult an attorney. You may need to follow Texas landlord–tenant law to remove occupants, especially if the property is redeemed.
   
4. How do I quiet the title? Because the sheriff’s deed lacks warranty, title insurance can be difficultl. Investors often file a quiet‑title suit after the redemption period to clear outstanding claims and make the property insurable.
   

Can I finance my bid? No. The county requires full payment in cash or cashier’s check at the auctionl. You cannot use credit cards, personal checks or financing.

Useful Links

• Auction Calendar
• How to Profit from Texas’s Redeemable Deeds
• Let’s talk about redeemable tax deeds and how you can profit from them!
• Discover Tax Deeds and how you can find property for as little as $50! 
• Learn How to maximize profits at the Texas Tax Sales

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Limestone County auctions offer real chances to start building your portfolio. Explore the latest listings in our Auction Calendar, grab our free resources to learn the process, and if you want a more guided experience, book a call with our expert support team today.

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About Dustin Hahn

Dustin Hahn is a Tax Lien & Deed investor with over 22 years of experience and hundreds of deals under his belt. He created Tax Lien School.com to help you buy Tax Deeds up to 90% off mortgage free and earn up to 36% ROI with Tax Liens. This site was voted the “Most Useful Resource” for new investors. Dustin’s YouTube Channel is the #1 Channel on Tax Liens & Deeds with over 98,000 Subscribers and 3600 videos to help you start. “The Best Time To Start Real Estate Investing Was 20 Years Ago, The Second Best Time Is TODAY!”

20+yrs

5–10deals/mo

2009TLS founded