Rockwall County, Texas Redeemable Tax Deed

Introduction of the county and about the article

Rockwall County sits just east of Dallas but feels worlds away. It is the smallest county by land area in Texas yet one of the fastest‑growing. Census estimates show its population rose from about 107,819 people in 2020 to roughly 137,044 residents by 2024. The county also has one of the highest median household incomes in the state. This guide explains how the county conducts tax sales, what investors need to know, and why the local market offers unique opportunities.

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

Texas does not sell tax lien certificates. When a property owner fails to pay property taxes, the county files a lawsuit to foreclose the tax lien. The property is then sold at a redeemable tax deed auction. Buyers receive a sheriff’s deed without warranty, but the previous owner can redeem the property by paying the sale price plus a statutory premium. Rockwall County follows state law: tax foreclosure auctions occur on the first Tuesday of each month, typically starting at 10:00 a.m. on the courthouse steps

Important Details

Item	Details
Tax Sale Type	Redeemable tax deed (no lien certificates)
Typical Sale Date	First Tuesday each month
Redemption Period	6 months for most properties and 2 years for homesteads or agricultural land
Interest Rate/Premium	25 % premium if redeemed in first year; 50 % premium if redeemed in second year
Bid Procedure	Oral bidding starts at the minimum bid; highest bidder wins
Deposit/Payment	No deposit; full payment in cash or cashier’s check within about two hours of sale

Fun Facts About the County

• Fast‑growing population: Rockwall County’s population increased from about 107,819 people in the 2020 census to an estimated 137,044 by 2024.
  
• Smallest county: With roughly 148.9 square miles of total area, it is the smallest county in Texas.
  
• High median income: The county is listed as the wealthiest in Texas and among the top 20 in the United States by median household income.
  
• Unique geology: The county and its seat are named for a wall‑like subterranean rock formation that runs throughout the area.
  
• Cities and communities: Incorporated cities include Rockwall (county seat), Heath, Royse City, Fate, and portions of Rowlett.
  

Attractions & Economic Highlights

Rockwall County blends small‑town charm with access to big‑city amenities. Lake Ray Hubbard, a 22,745‑acre reservoir spanning Rockwall, Dallas, Collin and Kaufman counties, offers boating and fishing. Harry Myers Park near downtown Rockwall has playgrounds, walking trails and a dog park. The county is served by major highways including Interstate 30, U.S. Route 67 and State Highways 66, 205 and 276. The local economy benefits from retail, professional services and health care, and many residents commute to jobs in the Dallas‑Fort Worth metroplex. Festivals, farmers markets and waterfront concerts at The Harbor on Lake Ray Hubbard make the area attractive for families.

Why This County is Ideal for Tax Lien/Deed Investors

Rockwall County’s strong population growth and high household income make it an appealing place to acquire real estate. Demand for housing remains high, and median home values exceed $438,000. Redeemable tax deeds in Texas yield a statutory premium of 25 % in the first year and 50 % in the second year. Investors therefore benefit from high returns with relatively low risk. The local economy’s diversity—professional services, healthcare and retail—provides a stable base for property values.

Auction Process for Tax Lien/Deed Sales

Rockwall County follows state statutes for tax foreclosure auctions. Sales occur on the first Tuesday of each month between 10:00 a.m. and 4:00 p.m outside the front steps of the Rockwall County Courthouse at 1111 Yellowjacket Lane. Notices of sale are posted on the county website and published in local newspapers.

How the Auction Works

1. Pre‑auction research: Investors should obtain the sale list from the law firm handling the county’s tax suits or the appraisal district. Review legal descriptions, approximate addresses, assessed values and minimum bids. Drive by the property from public roads; do not trespass.
   
2. Registration: State law requires bidders to register with the person conducting the sale. Hill County’s guidelines—used by many Texas counties—require registration to begin around 9:30 a.m. on the day of the sale. Bidders must present a valid government‑issued ID and a statement that they owe no delinquent taxes.
   
3. Bidding: Auctions are oral and open to the public. Bidding must start at the minimum bid which includes taxes, penalties and court costs. The auctioneer will call out each property; interested parties call out bids until the highest bid prevails. You cannot bid by phone or mail.
   
4. Payment: Successful bidders must pay the full purchase price in cash or by cashier’s check within about two hours after the sale. Personal checks and credit cards are not accepted. If you fail to pay, the rules allow the county to pursue penalties equal to 20 % of the property’s value.
   
5. Deed and recording: Buyers receive a sheriff’s deed without warranty. The deed is recorded with the county clerk. There is no title insurance and properties are sold “as is”.
   

Redemption period: The previous owner may redeem the property by paying the sale price plus a redemption premium within the statutory period. For homesteads and agricultural land the period is two years; for all other property it is 180 days.

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

Texas law sets generous premiums for redeemable deeds. If the former owner redeems the property within the first year, the investor receives the purchase price plus a 25 % premium. If redemption occurs during the second year, the premium increases to 50 %. These returns are fixed and do not depend on bidding competition. Investors who acquire a property that is not redeemed obtain ownership after the redemption period ends. Property values in Rockwall County have trended upward; the median home value was around $438,970 in 2024. While past performance does not guarantee future returns, the combination of strong market demand and statutory premiums makes the county’s tax deeds an attractive addition to a diversified investment strategy.

Open to All Investors / Foreign Investor Participation

The Texas Tax Code allows any adult to bid at a tax sale, regardless of residency or citizenship. Investors need not live in Rockwall County or even in the United States. The key requirement is that the bidder must not owe delinquent taxes and must register with the person conducting the sale. International buyers should contact the county or the law firm handling the sale to confirm acceptable forms of payment and to obtain the required written statement. Because sales are held in person and payment is due immediately, foreign investors often work with local representatives. Whether you are local or abroad, the market’s high premiums and growing economy make Rockwall County a promising location for global tax deed investing.

What Due Diligence Entails

Outline the steps investors should take to perform due diligence

• Research legal notices: Review the foreclosure notices and sale list. Verify the legal description and parcel number.
  
• Inspect from the street: Drive by the property to evaluate its condition. Do not enter occupied homes.
  
• Check title and liens: Conduct a title search with the county clerk to see if other liens or mortgages exist. Tax sales may not wipe out all liens.
  
• Confirm zoning and land use: Contact the local planning department to ensure that the property can be used for your intended purpose.
  
• Estimate repairs and taxes: Calculate the cost of bringing the property up to code. Investors are responsible for taxes that accrue after the judgment.
  

Risks of Skipping Due Diligence

Failing to perform due diligence can lead to costly surprises. Properties are sold “as is” without warranty. Hidden problems—such as unrecorded liens, code violations or structural damage—become the buyer’s responsibility. If a bidder lacks funds at the auction, the county may penalize the bidder up to 20 % of the property’s value. Without a title search, the purchaser may inherit liens for demolition, mowing or homeowners’ association dues. Careful research helps avoid mistakes and ensures that your investment meets your financial goals.

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

When a property does not sell at the auction, it may be “struck off” to the taxing units. Some Texas counties allow investors to purchase these properties over the counter. The general process, as described in Calhoun County’s tax sale information, requires buyers to pay either the total delinquent taxes and court costs or the market value, whichever is less. Investors must verify the outstanding amount with the law firm handling the sale. Over‑the‑counter purchases do not involve bidding, so there is no competition.

Benefits of OTC Purchases

• Fixed price: You pay a predetermined amount; there is no bidding war.
  
• Immediate ownership: Once payment is confirmed, you receive a deed and the redemption clock starts.
  
• Same premium: If the property is redeemed, you still receive the statutory premium (25 %–50 %).
  
• Less competition: Many investors overlook OTC lists, so bargains may be found.
  

Why Rockwall County is a Top Choice for Tax Lien/Deed Investors

Economic and Tax Advantages

Rockwall County enjoys a strong economy anchored by high household incomes and a diverse job base. Its proximity to Dallas offers access to major employers and transportation networks. The county’s small geographic footprint fosters a tight‑knit community and high demand for real estate. Because Texas does not sell tax lien certificates but instead offers redeemable deeds with high premiums, investors can achieve better yields than in many states.

Real Estate Market Overview

The median home value in Rockwall County was about $438,970 in 2024. Rapid population growth and limited land supply contribute to stable or rising property values. New subdivisions, shopping centers and infrastructure improvements support long‑term appreciation. Investors who acquire properties that are not redeemed may benefit from both the statutory premium and market appreciation.

Conclusion

Rockwall County combines small‑town character, economic strength and a high‑yield tax deed system. Auctions are held on the first Tuesday of each month at the courthouse steps, typically starting at 10:00 a.m. Bidders must register and come prepared to pay the full amount immediately. The redeemable deed format provides investors with a fixed premium of 25 % in the first year and 50 % in the second year. With strong population growth, high household incomes and rising home values, Rockwall County presents a compelling opportunity for disciplined investors. Always conduct thorough due diligence, verify liens and understand the redemption rules before bidding.

Pro Tips

• Arrive early: Registration often starts around 9:30 a.m. and lines can be long.
  
• Bring certified funds: Have cash or cashier’s checks ready for your maximum bid.
  
• Research each parcel: Use the appraisal district’s online records to verify ownership, assessed value and tax history.
  
• Check municipal liens: Contact local cities and homeowners’ associations to learn about outstanding mowing or demolition liens.
  
• Network with locals: Talk to neighbors and real estate agents to gauge neighborhood trends and resale potential.
  

Frequently Asked Questions

1. When can I take possession of the property? Texas law allows the purchaser to take possession 20 days after the deed is executed, but the former owner still has the right to redeem during the redemption period.
   
2. What happens to existing mortgages or liens? Tax foreclosure sales usually wipe out liens for taxes included in the judgment, but they may not eliminate other liens or HOA assessments. Always perform a title search to identify outstanding encumbrances.
   
3. Can I get title insurance? Title companies are cautious about issuing policies on tax deed properties. You may need to file a quiet‑title lawsuit or hold the property for a certain period before insurance is available.
   
4. Do I need to renovate the property? Properties are sold “as is.” If you obtain possession, you must maintain the property and comply with local codes. Consider repair costs when bidding.
   

How can I finance a tax deed purchase? Because payment is due immediately, traditional mortgage financing is impractical. Investors usually use cash, private money or lines of credit. Some lenders specialize in short‑term funding for tax deed purchases.

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?

Rockwall County auction properties are posted in our Auction Calendar. Review them while consulting our free resources to sharpen your view. When you want a second opinion or more direction, just book a call with someone who knows 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

5–10deals/mo

2009TLS founded