Ward County, Texas Tax Deed Auction Guide

Introduction: Meet Ward County

Ward County sits in the Permian Basin of West Texas and includes the small city of Monahans. The county has about nine‑thousand residents and is surrounded by oil fields and wide open plains. With a long history of ranching and oil, its local government auctions off real estate when owners fail to pay property taxes. This article helps investors understand how tax sales in Ward County work. You will learn the typical date and time of the sale, registration requirements, the redemption period and what makes these sales appealing.

What Is Ward County’s Tax Deed Sale?

Texas counties sell tax deeds when owners do not pay property taxes. The winning bidder receives a deed to the land subject to a limited right of redemption by the former owner. Texas does not issue tax lien certificates. Instead, the county sells the property itself at auction to recover unpaid taxes, penalties and costs. In Ward County the sheriff conducts the sale on behalf of the taxing authorities. Buyers should be ready to pay cash or a certified check the day of the sale.

Important Details

Detail	Summary
Tax Sale Type	Tax deed sales; Texas does not sell tax lien certificates but sells the property itself.
Typical Sale Date	First Tuesday of the month, except when the first Tuesday is a state holiday.
Redemption Period	Homestead or agricultural land can be redeemed for two years; other property for six months.
Premium/Interest Rate	Premium equals 25% of the purchase price in the first year and 50% in the second year for homestead or agricultural land.
Bid Procedure	Premium bid. Bidding starts at taxes owed and fees; highest bid wins.
Deposit/Registration	State law allows counties to require bidders to register and present proof of no delinquent taxes.
Location	Ward County Courthouse, 400 S. Allen St., Monahans, TX 79756.

Fun Facts About Ward County

• Oil hub: More than sixty percent of Texas oil production and about sixteen percent of U.S. reserves are in the Permian Basin, the area surrounding Ward County.
  
• Sand dunes: Monahans Sandhills State Park covers about 3,840 acres of sand dunes rising up to 70 feet and offers camping, sand surfing and horseback riding.
  
• Population: The county seat, Monahans, has a population around nine‑thousand people.
  
• History: Ward County once lay on a route used by Spanish explorers and later became home to ranches and oil wells.
  

Attractions & Economic Highlights

Ward County’s economy is dominated by oil and gas production from the Permian Basin. Retail trade includes 60–70 establishments serving the local community. Visitors enjoy the Monahans Sandhills State Park with its towering dunes and the Million Barrel Museum that displays an early oil storage tank and the historic Holman House. Outdoor activities like camping and off‑road driving draw tourists. The county is served by U.S. Highway 20 and railroads connecting to Midland and Odessa. A greenhouse facility called Village Farms adds an agricultural element to the local economy.

Why Ward County Is Ideal for Tax Deed Investors

Ward County offers tax deeds instead of liens, so the successful bidder becomes the property owner subject to a redemption right. The oil‑driven economy and limited housing supply can create strong resale or rental demand. Housing prices have been more affordable than in large cities, attracting buyers seeking properties for rental or resale. Investors can earn high returns thanks to the 25%–50% redemption premium and potential appreciation. Because Texas requires payment in full at auction, competition may be smaller than in states where investors only buy liens.

Auction Process for Tax Deed Sales

How the Auction Works

1. Notice: The county posts a list of properties with delinquent taxes in a local newspaper and on its website.
   
2. Registration: Prospective bidders may need to register with the tax assessor‑collector. State law allows counties to require a sworn statement that the bidder does not owe delinquent taxes and to issue a registration statement. Contact the Ward County Tax Office for the exact requirements.
   
3. Sale date: Auctions occur on the first Tuesday of the month between 10 a.m. and 4 p.m. Central Time. If the first Tuesday is January 1 or July 4, sales take place on the first Wednesday.
   
4. Location: Sales are held at the front steps of the Ward County Courthouse at 400 S. Allen Street, Monahans, Texas. Some counties offer online auctions; contact the county for details.
   
5. Bidding: The sheriff opens each property at the amount of taxes, penalties, interest and sale costs. Bidders raise the price until the highest bid wins. The method is a premium bid: the winner pays more than the taxes owed. There is no bidding down of interest as in tax lien sales.
   
6. Payment: The winning bidder must pay immediately—often by cash, cashier’s check or money order. The county may require a deposit to bid.
   
7. Deed issuance: After payment the sheriff issues a sheriff’s deed. The previous owner can redeem the property by paying the sale price plus a premium during the statutory redemption period.
   

The auction process is fairly simple. However, investors must research each property, inspect the location and evaluate market conditions.

Maximum Potential Returns and Expected Returns on Ward County Tax Deeds

In Texas, the potential return comes from both the premium paid by the delinquent owner and the eventual sale or rental value. For homestead or agricultural property, the redemption period lasts two years and the premium is 25% of the purchase price during the first year and 50% during the second year. For other property, the redemption period is 180 days with a 25% premium. The former owner must reimburse the buyer for the amount paid plus these premiums to redeem. If the property is not redeemed, the investor gains full ownership and can sell or rent it. Because the sale price often starts at the amount of delinquent taxes, investors may acquire property at a fraction of market value. Returns can exceed twenty‑five percent plus appreciation, making this an attractive investment compared with certificates of deposit or bonds.

Open to All Investors / Foreign Investor Participation

Texas law does not restrict investors by residency. Both residents and non‑residents—including international investors—may bid at Ward County’s tax deed auctions. Investors should verify that they do not owe delinquent property taxes anywhere in Texas, as counties can refuse bids from delinquent taxpayers. Foreign investors should consult legal counsel on currency transfers and property management. Because the state requires full payment on the day of sale, international buyers need to arrange funds in advance. Some investors hire local agents to bid on their behalf.

Importance of Due Diligence in Ward County Tax Deed Investing

What Due Diligence Entails

Smart investors perform thorough research before bidding. Steps include:

1. Title search: Check for liens, judgments and other encumbrances. Texas tax deeds do not necessarily wipe out all liens.
   
2. Property inspection: Visit the property or view it online to assess its condition, location and surroundings.
   
3. Valuation: Compare the assessed value with comparable sales and market rents.
   
4. Zoning and use: Ensure the property can be used for your intended purpose.
   
5. Budgeting: Include costs for quiet title actions, eviction or repairs.
   

Risks of Skipping Due Diligence

Skipping due diligence can expose you to unanticipated costs. Hidden liens or code violations may survive the sale and become your responsibility. Some properties may be in poor condition or located on inaccessible land. Without proper research you could pay more than the property is worth or face legal issues with occupants. Always investigate before bidding, and consult legal and real estate professionals if needed.

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

Sometimes properties offered at auction do not sell. These “struck‑off” properties may be held by the county and can be purchased over‑the‑counter. Interested buyers can contact the Ward County Tax Office to request a list of available properties. The purchase price will include the taxes, penalties and costs. OTC purchases typically do not involve bidding, so there is no competition. Investors still need to conduct due diligence and confirm that the property is eligible for sale.

How to Purchase OTC Deeds

1. Request a list of struck‑off properties from the Ward County Tax Assessor/Collector or the sheriff’s office.
   
2. Choose a property and submit an offer equal to the taxes, penalties and costs.
   
3. Once accepted, pay the amount with certified funds.
   
4. Receive the deed and begin the redemption period.
   

Benefits of OTC Purchases

• Fixed cost: The price is set by the taxes and costs rather than by competitive bidding.
  
• Less competition: You avoid the auction crowd and can select properties at your own pace.
  
• Flexible timing: OTC properties can be purchased anytime the office is open.
  

Why Ward County Is a Top Choice for Tax Deed Investors

Economic and Tax Advantages

Ward County is part of the Permian Basin, one of the most productive oil regions in the world. This industry supports jobs and generates tax revenue. Property taxes fund local schools and services. Investors benefit from a stable tax environment and an economy tied to natural resources. The county’s low population means fewer bidders and potentially better bargains.

Real Estate Market Overview

The real estate market in Ward County consists of modest homes, mobile homes and rural acreage. Housing prices remain lower than in metro areas, but demand can increase when oil prices rise. Rental housing is often scarce due to transient oilfield workers. Investors can profit from rentals or resale once the redemption period ends.

Conclusion

Tax deed sales in Ward County, Texas offer a unique chance to acquire real estate at prices well below market value. Auctions occur on the first Tuesday of the month between 10 a.m. and 4 p.m. Central Time at the county courthouse. Winning bidders receive a sheriff’s deed and must hold the property through the redemption period—two years for homestead or agricultural land and six months for other property. The former owner can redeem the property by paying the purchase price plus a 25–50% premium. Because of Ward County’s strong oil‑driven economy and limited housing supply, these tax deed auctions can produce high returns with manageable risk. Nevertheless, due diligence is critical to avoid pitfalls. Potential buyers should study each property, search titles, inspect sites and be prepared for additional costs.

Pro Tips

• Register early: Contact the Ward County Tax Office at 432‑943‑2546 or email [email protected] for registration requirements. Provide proof you owe no delinquent taxes.
  
• Bring certified funds: Bring a cashier’s check or money order to pay at the auction. Personal checks and credit cards may not be accepted.
  
• Research the market: Compare assessed values with recent sales. Use online mapping and local real estate listings to understand neighborhoods.
  
• Budget for quiet title: After the redemption period you may need to file a quiet title action to obtain clear title. Consult an attorney.
  
• Watch for struck‑off properties: After auctions, contact the county for any leftover properties that can be purchased over‑the‑counter.
  

Frequently Asked Questions

Q: Can I inspect the property before the auction?
A: Yes. It is wise to drive by the property or use online mapping. However, you cannot trespass. Visual inspection helps you estimate repair costs and value.

Q: What happens if the owner redeems the property?
A: The former owner can redeem by paying the purchase price plus a 25–50% premium within the redemption period. You receive your investment plus the premium. You do not get possession.

Q: Are there mortgages or liens on tax deed properties?
A: Tax deeds in Texas do not always clear all liens. Some liens, such as IRS liens or municipal code enforcement liens, may survive. Conduct a title search before bidding.

Q: Do I need to live in Texas to buy tax deeds?
A: No. Both U.S. residents and foreign investors may bid, provided they have no delinquent taxes.Q: How can I finance a tax deed purchase?
A: Texas requires payment in full at the auction. Investors typically use cash, savings, or lines of credit. After acquiring the property you may refinance through a bank or private lender.

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?

Ward County tax‑sale listings are live—check them in our Auction Calendar. Use our free resources to guide your evaluation. And when you’re ready for someone to review your steps or questions with you, just book a call.

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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