Mason County, Texas Redeemable Tax Deed Guide

Introduction to Mason County and This Guide

Mason County lies in the heart of the Texas Hill Country. With rolling hills, clear rivers and a small‑town feel, the county is often called the Gem of the Texas Hill Country by tourism promoters. Mason is known for ranching, outdoor recreation, and its historic downtown. This guide explains how the county conducts its tax sales and what investors should know before bidding. The information comes from Texas tax law, county sources and trusted state references. The content is designed for beginners and seasoned investors alike.

Brief Overview of Mason County’s Tax Deeds

Texas uses a redeemable tax deed system. When a property owner fails to pay real‑estate taxes, the county obtains a court judgment and orders the property sold at public auction. The winning bidder receives a deed from the sheriff or constable. Unlike tax liens that only sell the lien itself, a redeemable deed transfers immediate possession of the property but allows the former owner a limited time to reclaim it. In Mason County the tax sale is conducted by the sheriff and follows statewide rules. Auctions are usually held on the first Tuesday of the month between 10 a.m. and 4 p.m. at the county courthouse. If the first Tuesday falls on January 1 or July 4, the auction is moved to the following Wednesday.

Important Details at a Glance

Item	Summary
Tax Sale Type	Redeemable tax deed (hybrid between lien and deed)
Typical Sale Date	First Tuesday of the month, 10 a.m.–4 p.m. (courthouse steps)
Redemption Period	Homestead/agricultural/mineral property: 2 years; other property: 6 months
Interest/Penalty Rate	25 % premium if redeemed during first year; 50 % in second year; 25 % premium for 6‑month redemptions
Bid Procedure	Highest cash bid at or above minimum (taxes, penalties, interest and costs or appraised value, whichever is less)
Deposit/Payment	Payment due immediately after sale—cash or cashier’s check; bidders must show proof of no delinquent taxes

Fun Facts About Mason County

• Population and Income: Mason County had about 3,951 residents in 2023. The median age was 46.5 years and the median household income was $68,750 The homeownership rate was 75.9 %, and the median property value was $274,600
  
• Economic Roots: The local economy employs around 1,616 people Top industries include educational services, agriculture and retail trade The county’s ranching tradition produces cattle, goats and wine grapes.
  
• Cultural Heritage: The Seaquist House, built in 1887, is a restored Victorian mansion listed on the National Register of Historic Places. It was purchased by banker Edward M. Reynolds in 1891 and later sold to Swedish immigrant Oscar Seaquist in 1919. The Seaquists’ family completed major renovations in 1973, and the property now offers public tours.
  
• Topaz Capital: Mason County is the only place in Texas where natural blue topaz is found. Visitors sometimes pan for topaz in local streams.
  
• Frontier History: Fort Mason was an active frontier outpost during the mid‑1800s. Robert E. Lee once served there as a cavalry officer. The Mason Square Museum displays exhibits about Fort Mason, the geology of the Llano Uplift, Native American history and the Hoodoo War.
  

Attractions & Economic Highlights

Mason County offers outdoor recreation, historic sites, and a friendly business climate. Parks and Rivers: The Llano River flows through the county and is popular for kayaking, canoeing and fishing. Hunters pursue whitetail deer, turkey and hogs in the surrounding ranches. Museums and Historic Sites: The Mason Square Museum provides self‑guided exhibits covering geology, fossils, German immigration and artifacts from Fort Mason. Fort Mason Museum houses hundreds of artifacts and is open every day. The Mason County Museum occupies the second floor of the old Mason Grammar School and preserves pioneer artifacts. The Seaquist House offers monthly tours of its 19th‑century mansion. Odeon Theater shows movies and hosts live music. Economy: The county’s economy benefits from agriculture, livestock, tourism and small manufacturing. Local wineries and farms provide agritourism. Transportation: U.S. Route 87 connects Mason to larger markets. Several state highways provide access to Fredericksburg, Austin and San Angelo.

Why Mason County is Ideal for Tax Deed Investors

Mason County’s stable property market and low population growth create an environment of predictable demand. The county’s median property value has been rising in recent years, reflecting steady appreciation Redeemable tax deeds offer high returns because the former owner must pay a 25 % to 50 % premium to redeem the property. Successful bidders take possession immediately and can charge rent or begin improvements while waiting for redemption. Compared to other investments, Texas redeemable deeds carry less risk because the state’s strong economy and strict foreclosure laws provide clear procedures.

Auction Process for Tax Deed Sales

Tax deeds in Mason County are sold at public auction by the sheriff or constable. Auctions occur at the county courthouse on the first Tuesday of the month between 10 a.m. and 4 p.m.. Notices of sale are posted at least 20 days before the auction and list the date, time, location and property description. Bidders must register before the sale and show a written statement from the tax assessor‑collector certifying that they owe no delinquent taxes. Some counties require a small deposit or bidder card; check with the tax assessor’s office for local rules. Payment is due immediately after bidding, usually by cash or cashier’s check. If the successful bidder cannot pay by 4 p.m. the sale reconvenes later that day.

How the Auction Works

1. Announcement of properties: The sheriff reads each property’s legal description and the minimum bid. The minimum is the lesser of the judgment (taxes, penalties, interest and costs) or the appraised value.
   
2. Bidding: Participants bid up the price. The highest bid above the minimum wins. No financing is allowed; payment must be in cash or cashier’s check.
   
3. Payment and deed: After payment, the sheriff issues a deed without warranty. The deed is recorded, and the redemption period begins from the date of recordation.
   
4. Possession: Buyers are entitled to immediate possession. If the property is occupied, the purchaser may lease it to the occupants or initiate eviction.
   
5. Redemption: If the former owner redeems within the statutory period, they must reimburse the purchase price plus the applicable penalty. If redemption does not occur, the buyer receives clear title after the period ends.
   

Maximum Potential Returns and Expected Returns

Texas redeems at a statutory premium rather than an interest rate. If a property that was used as a homestead, agricultural land or mineral interest is redeemed during the first year, the owner must pay the purchaser 25 % of the total purchase price, costs and taxes. If redemption occurs in the second year, the penalty increases to 50 %. For other properties, the redemption period is 180 days and the premium is 25 %. For investors, this translates to annualized returns that can exceed many other fixed‑income investments. The return is guaranteed by statute and is collected in full when the owner redeems. If redemption does not occur, the investor acquires the property free and clear of prior tax liens.

Open to All Investors and Foreign Participation

Texas law does not restrict who can bid at a tax deed auction. Both local residents and international investors may participate as long as they register and comply with the county’s requirements. Some counties require bidders to show valid identification and sign an affidavit of eligibility. Mason County follows these state rules. International investors should plan ahead by wiring funds to a U.S. bank or bringing certified funds in U.S. dollars. While the auctions are open to everyone, due diligence is critical. Many properties are rural or may lack road access, and buyers are responsible for assessing value and potential liabilities.

Understanding the Mason County Tax Deed Sale Process

Participants must obtain a bidder’s statement from the tax assessor‑collector proving they have no delinquent taxes. Registration often opens at least 30 minutes before the auction and closes when bidding begins. Because auctions are public, bidders should arrive early to ask questions and review last‑minute changes. The sheriff has the authority to postpone or cancel any sale if the taxes are paid before bidding starts. After the sale, the buyer takes possession and may manage the property, pay insurance and maintain it until the redemption period expires. Investors who live outside Texas should consider hiring a local attorney or property manager to handle legal filings.

What Due Diligence Entails

Steps for Proper Due Diligence

1. Research the property: Inspect the property if possible. Identify whether it is a homestead, agricultural tract or mineral interest, as this affects the redemption period.
   
2. Check title and liens: Obtain a title search to identify mortgages, mechanic’s liens or restrictions. Tax deeds in Texas are sold without warranty.
   
3. Verify zoning and access: Confirm that the parcel has legal road access and is zoned for your intended use.
   
4. Estimate costs: Consider the cost of insurance, maintenance, potential repairs, and legal fees. Buyers must pay any taxes accruing after the sale and could be liable for association dues.
   
5. Plan for redemption: Understand that the owner may redeem. Calculate whether the 25–50 % premium adequately compensates you for your investment timeframe.
   

Risks of Skipping Due Diligence

Failing to perform due diligence can lead to unpleasant surprises. A property might be landlocked or subject to restrictive covenants, making development difficult. Hidden liens or hazardous conditions could require costly remediation. Without a thorough inspection, an investor could acquire a dilapidated building that is expensive to repair. Ignoring the redemption rules might lead to unrealistic expectations about when you can sell or build on the property. Smart investors always research before bidding.

Buying Over‑the‑Counter (OTC) Deeds in Mason County

How to Purchase OTC Deeds

If a property receives no bids at auction, it may be struck off to the taxing units and later offered over‑the‑counter. Interested buyers can contact the tax assessor‑collector’s office to request a list of struck‑off properties. Purchases are handled by written bid or sealed bid, and buyers must pay the amount of taxes, penalties and costs owed. Once accepted, the buyer receives a deed with the same redemption period as an auction purchase.

Benefits of OTC Purchases

OTC purchases are appealing because there is no bidding competition. The purchase price is often the base tax amount, and investors receive the same 25 % penalty if the property is redeemed. Buyers can research properties at their own pace and make offers when they are ready. However, the best parcels may sell quickly, so staying in contact with the tax office is wise.

Why Mason County is a Top Choice for Tax Deed Investors

Economic and Tax Advantages

Mason County’s economy is anchored by agriculture, education and retail trade Property values have been trending upward, and the poverty rate remains low Texas has no state income tax, and property taxes are collected locally, providing clear and stable revenue streams for counties. The state’s tax code offers strong protections for investors, including statutory redemption premiums and clear procedures for foreclosure.

Real Estate Market Overview

Housing in Mason County is affordable compared to urban areas. The median home value is about $274,600 Many properties are rural or ranching tracts, which may suit investors seeking long‑term appreciation or recreational use. Because the county has a small population and limited new construction, supply remains tight, helping support property values.

Conclusion

Mason County combines small‑town charm, a stable property market and a clear tax sale process. Auctions occur on the first Tuesday of the month. Investors who do their homework and follow the rules can earn high returns through redemption premiums of 25–50 %. Properties are available to all investors, including those from outside Texas. Always conduct due diligence and consult local experts before bidding. With careful planning, a Mason County tax deed can be a rewarding addition to your investment strategy.

Pro Tips

• Arrive early and register: Show up at least an hour before the auction. Bring your identification, proof of no delinquent taxes, and funds for bidding.
  
• Inspect before you buy: Walk the property or view it from public roads. Vacant land can be landlocked or in a floodplain.
  
• Watch for homesteads: Homestead and agricultural properties have a two‑year redemption period. If you want a quicker return, focus on non‑homestead parcels.
  
• Budget for carrying costs: You may need to pay insurance, maintenance and post‑sale taxes. Factor these into your return calculations.
  
• Stay informed: Mason County occasionally offers struck‑off properties over the counter. Contact the tax assessor‑collector for updates and join mailing lists for upcoming auctions.
  

Frequently Asked Questions

1. What happens if the former owner redeems the property? If the owner redeems within the statutory period, they must pay the investor the full purchase price plus the applicable premium—25 % during the first year or 50 % during the second year for homestead or agricultural property, and 25 % for non‑homestead property.

2. Can I get financing for a tax deed purchase? Texas law requires payment in cash or certified funds at the time of the sale. Traditional mortgages are not available at the auction. However, investors may refinance the property after receiving the deed.

3. Do tax deeds wipe out other liens? A tax deed generally eliminates prior tax liens but does not guarantee a clear title. Mortgages, mechanic’s liens or homeowners’ association liens may survive. Always order a title search before bidding.

4. How soon can I sell or develop the property? You can take possession immediately after the sale, but you cannot convey clear title until the redemption period expires. Some investors use rental agreements or short‑term leases during the redemption period.5. What is a quiet title action and will I need one? After the redemption period ends, you may need a quiet title suit to obtain insurable title. A quiet title action asks a court to confirm your ownership and eliminate remaining claims. Costs vary, and consulting a real‑estate attorney is recommended.

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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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