What is a tax deed?

A tax deed is an instrument given to a purchaser after the redemption rights have expired. This document is issued when a property has gone through a tax foreclosure process due to the owner's failure to pay property taxes. The process typically allows the original property owner a certain amount of time to redeem the property by paying the owed taxes, along with any accrued interest or fees. Once this redemption period ends, the property is sold at a tax auction, and the winning bidder receives a tax deed, which transfers ownership of the property to them.

This understanding highlights the nature of tax deeds as legal documents that signify a transfer of ownership in real estate under specific circumstances involving unpaid property taxes, rather than the other options provided, which relate to different aspects of property or taxation.