King County, Texas Redeemable Tax Deed Auction Guide

Introduction

King County is a rural county in northwest Texas that attracts attention from tax deed investors looking for steady returns and simple procedures. The county seat, Guthrie, sits along U.S. Highway 82, roughly halfway between Lubbock and Wichita Falls. Ranches dominate the landscape, with few residents and a strong sense of community. Investors are often drawn here because tax sales are predictable and the redemption rules are clearly outlined by state law. In this article you will learn how King County conducts its tax deed auctions, what to expect on sale day, and why this sparsely populated county can be an appealing place to invest.

What Is a Redeemable Tax Deed?

Texas uses a redeemable tax deed system. When a property owner fails to pay property taxes, the county sells the deed to the delinquent property at public auction. The winning bidder receives a sheriff’s deed and the right to full ownership after a redemption period. During the redemption period, the former owner can reclaim the property by paying the purchase price plus a penalty. King County follows Texas law: two‑year redemption for homestead and agricultural land and a six‑month redemption for all other property. Successful bidders who hold the deed past the redemption period can pursue clear title through a quiet title action.

Important Details

Detail	Information
Tax Sale Type	Redeemable tax deed (Texas does not sell tax liens)
Typical Sale Date	The county conducts tax sales on the first Tuesday of each month; if that date falls on January 1 or July 4, the sale moves to Wednesday.
Sale Time and Place	Sales are held between 10 a.m. and 4 p.m. Central Time on the courthouse steps or in the lobby of the King County Courthouse, 800 S. Baker St., Guthrie.
Registration Requirement	Bidders must show a Statement of No Delinquent Taxes from the tax assessor‑collector before bidding. Obtain the statement by the Friday before the sale—it is valid for 90 days.
Bid Procedure	Oral bidding starts at the minimum bid (taxes owed). Highest bid wins; payment must be cash or cashier’s check by 4 p.m. on sale day.
Deposit	The county does not require a separate deposit; full payment is due immediately after the auction.
Redemption Period	Two years for homestead or agricultural property; six months for all other property.
Penalty/Interest	If redeemed, the purchaser receives a 25 % penalty during the first year (or first six months for non‑homestead) and 50 % if redeemed in the second year.
Updates	Sale notices are posted on the county’s Public Notice Calendar (co.king.tx.us) and in local newspapers.
Contact	Amy McCauley, Tax Assessor‑Collector, P.O. Box 105, Guthrie, TX 79236, Tel (806) 596‑4318, Email [email protected].

Fun Facts About King County

• Second‑least populated county in Texas: King County had an estimated 2023 population of 189 people and a median household income of about $70,192. The population is declining because young residents leave for jobs in larger cities.
  
• Location and geography: The county covers 944 square miles of rolling prairie with extensive grasslands and red soils. Elevations range from 1,500 to 2,000 feet, with Haystack Mountain and Buzzard Peak as high points. The North Wichita River and tributaries of the Brazos River drain the region.
  
• Climate: Average temperatures range from 27 °F in January to 99 °F in July. The growing season lasts about 219 days and rainfall averages 21.6 inches per year.
  
• Economy: Agriculture produces about $11.5 million annually, mostly from beef cattle. There is no manufacturing, but oil production exceeded 3 million barrels in the early 1980s. The county is served by U.S. Highway 83 (north‑south) and U.S. Highway 82 (east‑west).
  
• Historic ranches: The Four Sixes Ranch (6666) spans about 208,000 acres and remains the county’s economic mainstay. The brand was established by Samuel Burk Burnett in the early 1870s, and he moved his headquarters to King County in 1900. The ranch house near Guthrie is a local landmark.
  

Attractions & Economic Highlights

• Parks and Outdoor Activities: While King County has no state parks within its borders, nearby Copper Breaks State Park in neighboring Hardeman County offers camping, hiking, and stargazing. Local residents also enjoy hunting deer and quail on private ranches.
  
• Historic Sites: The King County Courthouse in Guthrie, built in 1914, sits on the same site as the original 1890s courthouse. The Four Sixes ranch house and the old stone water tower are notable landmarks.
  
• Transportation: U.S. Highway 83 runs north‑south through the county, connecting Guthrie to Cottle County in the north and Stonewall County in the south. U.S. Highway 82 crosses east‑west, linking Guthrie to Knox and Dickens counties. The nearest commercial airport is in Wichita Falls (about 80 miles northeast).
  
• Main Industries: Cattle ranching dominates the economy. Some cotton and grain are grown on irrigated fields. Oil wells on the Four Sixes and other ranches provide additional revenue. Many residents work for the ranches or the school district in Guthrie.
  
• Community Life: Guthrie hosts community events such as the King County Livestock Show and holiday parades. The county’s small population means neighbors know one another, and the public school (kindergarten through 12th grade) often doubles as a community center.
  

Why This County Is Ideal for Tax Deed Investors

King County’s small population and rural economy make it attractive for investors looking for tax deeds. Delinquent properties often consist of ranch land, vacant lots, or older homes with low appraised values. Demand from local buyers is limited, so competition at auctions tends to be low. Texas law requires that a defaulting owner pay a 25 % penalty within the first year of redemption and 50 % during the second year. These penalties translate into high returns with relatively low risk compared with other investments. Investors who perform due diligence can obtain property with clear title after the redemption period and either sell it or lease it to ranchers.

Auction Process for Tax Deed Sales

Texas statutes set uniform procedures for tax sales, and King County follows them closely. Sales occur on the first Tuesday of each month (except when it conflicts with holidays). Properties are offered in a live, oral auction at the county courthouse. The bidding starts at the amount of delinquent taxes, penalties, and costs, which is sometimes called the “minimum bid.” If multiple bidders are present, the auctioneer increases the bid in small increments until the highest bid is reached. The winning bidder must pay the full amount in cash or by cashier’s check by 4 p.m. on the day of sale.

How the Auction Works

1. Public Notice: At least 21 days before the sale, the sheriff or tax assessor posts a list of properties in the Public Notice Calendar (co.king.tx.us) and local newspapers.
   
2. Obtain a Statement of No Delinquent Taxes: Each bidder must request a Statement of No Delinquent Taxes from the tax office. Texas law prohibits an officer from delivering a deed to a purchaser who owes taxes. The statement costs a small fee and remains valid for 90 days. You must obtain it by the Friday before the sale because the tax office will not issue statements on sale day.
   
3. Registration: On sale day, arrive at the courthouse by 9:30 a.m. to sign in and show your statement. After 10 a.m., no new bidders may register. The sheriff provides each bidder with a numbered paddle or card.
   
4. Bidding: The sheriff reads each property description and announces the minimum bid. Bidders raise their paddles to place oral bids. The highest bidder wins. If no one bids at the opening price, the taxing units may reduce the minimum at their discretion or strike the property off to the county.
   
5. Payment: Pay your winning bid with cash or cashier’s check payable to the King County Sheriff’s Department by 4 p.m. that day. Failure to pay may result in liability for 20 % of the property value plus costs.
   

Deed and Redemption: The sheriff issues a sheriff’s deed, which conveys the property without warranties. The redemption period then begins—two years for homestead and agricultural property and six months for other properties. During this time, the former owner can redeem the property by paying the purchase price plus penalty.

Maximum Potential Returns and Expected Returns

Tax deed investing in Texas offers attractive yields because the state treats the purchaser’s payment as a loan to the delinquent owner. If the owner redeems within the redemption period, the purchaser receives 25 % of the purchase price (for homesteads and agricultural land in the first year or any property within six months). If redemption occurs during the second year, the penalty increases to 50 %. Since these penalties are not prorated, holding the deed for even a few days can yield the entire premium. For example, if you purchase a property for $5,000 and the owner redeems within three months, you receive $6,250—an effective annual return exceeding many other investments. If the owner does not redeem, you acquire full ownership of the property and can sell or lease it. Realistically, many rural properties redeem within six to twelve months, so investors often expect returns between 25 % and 50 %.

Open to All Investors / Foreign Investor Participation

King County’s tax sales are open to everyone, including out‑of‑state and international investors. There is no residency requirement; you simply need a valid statement of no delinquent taxes. Buyers from overseas often hire local agents to represent them at the auction. Texas courts recognize foreign investors’ ownership rights, though you should consult an attorney about tax obligations in your home country. International investors should also consider currency exchange rates and wire transfer logistics when arranging payment. The county does not offer online bidding, so all participants must attend the sale in person or appoint a representative with a power of attorney. Regardless of where you live, conducting thorough research and complying with Texas law is essential.

What Due Diligence Entails

Steps for Thorough Due Diligence

• Research the Property: Use the county appraisal district’s website or the tax office’s property search (kingcountytax.org) to look up the parcel, legal description, assessed value, and any outstanding liens. Visit the property if possible or view satellite imagery to assess access, condition, and terrain.
  
• Check Title Records: Examine the deed records at the county clerk’s office for mortgages, mineral rights reservations, or easements. Only delinquent property taxes and municipal liens are extinguished at the sale; other encumbrances remain.
  
• Estimate Redemption Likelihood: Review ownership history, occupancy status, and property type. Homesteads and productive agricultural land are more likely to redeem, yielding a 25 % or 50 % return. Vacant lots and absentee‑owned ranch tracts may not redeem, so investors should be prepared to hold or improve the property.
  
• Budget for Costs: Factor in recording fees, legal fees for quiet title, and any property maintenance costs. Section 34.21 allows purchasers to recover reasonable maintenance expenses if the property redeems.
  

Risks of Skipping Due Diligence

Skipping due diligence can lead to costly surprises. Properties may lack legal access, be subject to environmental restrictions, or have undisclosed liens. Some structures may be unsafe or require demolition. If you buy without verifying the redemption category, you could tie up capital for two years instead of six months. Lastly, you must initiate a quiet title action after the redemption period to obtain insurable title; this requires legal fees. Proper research reduces these risks and improves your chances of profiting from the investment.

Why King County Is a Top Choice for Tax Deed Investors

Economic and Tax Advantages

King County’s low population and large ranches create a steady supply of delinquent properties with minimal competition. Ranchers occasionally let marginal tracts go to tax sale, and the county’s economy depends largely on agriculture and oil. The absence of manufacturing and limited development mean there are few bidders at auctions. Texas law’s high redemption penalties (25 % to 50 %) provide generous returns. Investors also benefit from no state income tax and relatively low property taxes compared with many states, making Texas a favorable investment climate.

Real Estate Market Overview

King County’s real estate market is dominated by large ranches. Residential housing is limited to a few dozen homes in Guthrie and scattered ranch houses. Land values remain low compared with urban counties; small pasture tracts sometimes sell for less than $1,000 per acre. Because of the small market, selling acquired property may take longer than in metropolitan areas. Investors should plan for a longer holding period or be prepared to lease grazing rights to neighboring ranches. For buyers seeking quiet rural property and long‑term appreciation, King County offers compelling opportunities.

Conclusion

King County, Texas offers a unique blend of rural charm and investment potential. Tax deed auctions are held monthly, providing frequent opportunities for investors. State law requires a Statement of No Delinquent Taxes, and auctions take place at the courthouse on the first Tuesday of each month. The redemption period—two years for homesteads and six months for other property—gives purchasers the chance to earn 25 % to 50 % returns. With minimal competition, low purchase prices, and straightforward procedures, King County can be an appealing destination for investors willing to conduct thorough research. Remember that properties are sold as is, and due diligence is essential to avoid unwanted surprises. When approached carefully, investing in King County tax deeds can provide substantial returns and the satisfaction of contributing to a small Texas community.

Pro Tips

• Arrive Early: Plan to arrive at the courthouse by 9:30 a.m. to complete registration and review any last‑minute announcements. Late arrivals are not allowed to bid.
  
• Bring Exact Funds: Payment must be cash or cashier’s check. Bring several checks in different amounts or cash to cover multiple bids, since change is not guaranteed.
  
• Network Locally: Talk to ranchers, real estate agents, and the tax assessor’s staff. Local knowledge can reveal whether a property has access, water, or potential buyers.
  
• Check Maps: Many rural parcels lack road frontage. Use county GIS maps and satellite images to confirm access before bidding.
  
• Consider Leasing: If you acquire a property, leasing grazing rights to neighboring ranches can generate income while you await redemption or resale.
  

Frequently Asked Questions (FAQs)

1. What happens if the former owner stays on the property after the sale? During the redemption period, the previous owner may continue to occupy the property. The purchaser cannot evict the owner until redemption expires. Afterward, eviction must follow Texas landlord‑tenant laws.

2. Do I need to file a quiet title action after the redemption period? Yes. A sheriff’s deed does not automatically provide insurable title. After the redemption period expires, most investors file a quiet title suit to clear any remaining claims and obtain title insurance. Consult an attorney experienced in Texas tax deeds.

3. Are there mortgages or liens that survive the tax sale? Government liens (such as IRS liens) and certain municipal liens may survive. Private mortgages are typically wiped out, but easements and mineral rights reservations remain. Always research the title records before bidding.

4. Can I finance a tax deed purchase? No. King County requires full payment in cash or cashier’s check on the day of sale. Some investors use lines of credit secured by other assets, but no seller financing is available at the auction.5. What if no one bids on a property? If a property receives no bids at the minimum amount, the taxing units may lower the opening bid or strike the property off to the county for the amount due. These struck‑off properties may later be sold over the counter. Interested buyers can contact the tax assessor’s office to inquire about available struck‑off properties.

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

Need a hand?

King County has tax-sale listings that could be your next investment opportunity. Check out our Auction Calendar and explore what’s coming up. Our free resources help you get familiar with the process, and you can always book a call to get expert help along the way.

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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

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