Leon County, Texas Redeemable Tax Deed: An Investor’s Guide to Tax Sales

Introduction

Leon County sits between Dallas and Houston in East Texas. It has rolling plains and is crossed by Interstate 45 and U.S. Highway 79. Centerville is the county seat and home to about 16 thousand residents . Property values are moderate, with a median home value near $177 thousand and a home‑ownership rate around 77 percent . This guide explains how the county conducts tax foreclosure sales and what investors need to know. It uses simple language and avoids jargon so anyone can understand the process.

Brief Overview of Leon County Tax Sales

Texas is a redeemable tax deed state, meaning investors bid on the deed to the property, not a certificate. The county sells properties with delinquent taxes at a public auction. Sales are usually held on the first Tuesday of each month between 10 a.m. and 4 p.m., and may be moved to Wednesday if Tuesday falls on January 1 or July 4. Winning bidders get a deed but not immediate absolute ownership because the former owner can redeem the property by paying the amount bid plus a penalty. That makes these sales a hybrid between tax liens and tax deeds.

Important Details

Fun Facts About Leon County

• History – Leon County was formed from Robertson County in 1846 and named either for early settler Martín de León or the Spanish word for lion. The seat moved from Leona to Centerville in 1851 to better serve the county’s center.
  
• Population & Demographics – The population is around 16 thousand with a median age of 44.3 years . About 77 % of residents own their homes .
  
• Economy – According to a regional economic report, the top industries include education and hospitals, specialty trade contractors and iron and steel manufacturing. Median household income is roughly $43 thousand.
  
• Geography & Resources – The county has 1,078 square miles of rolling prairie drained by the Trinity and Navasota rivers. Natural resources include lignite coal and oil.
  

Attractions & Economic Highlights

Leon County offers outdoor and cultural attractions that add to its charm. Fort Boggy State Park provides fishing, kayaking, swimming and hiking around the 15‑acre Sullivan Lake. Trails wind through woods and fields, and primitive campsites keep the experience natural. The county’s central location along Interstate 45 and U.S. Highway 79 makes transportation easy. Agriculture, energy and small manufacturing underpin the economy. Residents enjoy rural life with festivals, markets and outdoor recreation.

Why Leon County Appeals to Investors

Leon County tax sales combine accessible entry prices and a strong redemption premium. Properties often sell near the amount of delinquent taxes, which may be far below market value. When owners redeem, investors earn a 25 % penalty in the first year or 50 % in the second year. Investors also benefit from the county’s moderate property values (median home value around $177 thousand ) and steady housing demand. There is no residency requirement; both U.S. and foreign investors may participate as long as they have no delinquent Texas property taxes.

Auction Process for Tax Sales

The county conducts tax sales at the courthouse steps. A Notice of Sale lists the properties, minimum bids and time. Interested buyers must register with the officer conducting the sale and show a valid driver’s license. If bidding on behalf of a company, bring documents showing authority to bid. Bidders must certify they owe no delinquent taxes and are not prohibited buyers under state law.

How the Auction Works

1. Attendance – Arrive early on the first Tuesday of the month. Registration usually begins just before the sale and ends when bidding starts.
   
2. Registration – Provide identification and certify you have no outstanding property taxes. The officer issues a bidder number.
   
3. Bidding – Each property is offered in the order listed. Bidding is oral. The auctioneer states the legal description and minimum bid; participants call out higher amounts until only one remains.
   
4. Payment – Successful bidders must pay immediately with cash or a cashier’s check payable to the Leon County Tax Assessor/Collector. Failure to pay incurs a 20 % penalty.
   

Deed & Redemption – After payment, the buyer receives a Sheriff’s Deed without warranty. The former owner has two years to redeem homestead or agricultural property and 180 days for other property.

Maximum Potential Returns

Leon County’s redeemable deeds offer high returns relative to other investments. When owners redeem, investors receive the purchase price plus a 25 % premium if redeemed within the first year and 50 % if redeemed in the second year. For non‑homestead properties, the redemption period is 180 days with a 25 % premium. If the owner does not redeem, the investor becomes the property owner subject to existing liens, creating opportunities for significant appreciation. Actual yields depend on bid amounts, time to redemption and costs such as property taxes and maintenance.

Due Diligence and Over‑the‑Counter Purchases

Due diligence is crucial. Investors should research each property’s location, condition and title status before bidding. Check deeds, maps and lawsuit files at the county clerk’s office and verify property addresses because legal descriptions can be complex. Understand that tax deeds convey no warranty, and title insurance may be hard to obtain. Skipping due diligence can result in purchasing unusable land, properties with liens for demolition or mowing fees or houses in poor condition.

If a property does not sell at auction, it may be struck off to the taxing unit. In some counties these “struck‑off” properties are later offered over the counter (OTC) for the minimum bid plus costs. Interested buyers should contact the Leon County Tax Office or its attorneys to inquire about OTC opportunities. Prices are often fixed and there is no bidding competition.

Conclusion

Leon County’s tax sales offer a unique way to earn solid returns while helping local governments recover delinquent taxes. Auctions are held monthly at the courthouse, and anyone who registers, shows proper ID and has no delinquent taxes can bid. The redeemable tax deed system means investors either gain the property or earn a strong penalty when it is redeemed. With careful research and adherence to Texas law, tax sale investing in Leon County can be both profitable and rewarding. Always confirm auction dates and property lists through the Leon County Tax Assessor or the county’s delinquent tax attorneys.

Pro Tips

• Arrive Early – Registration is on the day of the sale and can be busy. Bring identification and proof of authority if bidding for a company.
  
• Know the Market – Study recent property sales and values. Rural lots may differ greatly in value.
  
• Inspect From Outside – You cannot enter properties before the sale. Drive by to check location, access and visible condition.
  
• Budget for Taxes – Winning bidders must pay current and future taxes, not just the delinquent amount.
  
• Follow Up – File the deed promptly to start the redemption clock and monitor redemption deadlines.
  

Frequently Asked Questions

1. What happens if I win a property and the owner does not redeem? You receive full ownership after the redemption period. However, the deed has no warranty, so you may need a quiet title action to obtain marketable title before selling.

2. Can I finance my bid? No. Payment must be in cash or cashier’s check at the auction. Private financing may be arranged ahead of time, but funds must be available on auction day.

3. Are there other liens on the property? Yes, tax deeds are sold as is. Buyers may inherit city liens for mowing or demolition. Conduct a title search to identify mortgages or other encumbrances.

4. Can I occupy the property immediately? Buyers can take possession 20 days after the deed is recorded, but occupants may still be living there. Eviction may require legal action.5. How do I resell a tax deed property? After the redemption period and a quiet title action, you can sell or rent the property. Market it through real estate agents or online platforms. Ensure taxes are current and any code violations have been resolved.

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?

Looking for an entry into tax-sale investing? Leon County’s auctions are listed in our Auction Calendar. Take time to explore, use our free resources for step-by-step help, and if you’re looking for a little guidance, book a call, and we’ll help you take the next step.

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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