If you successfully make the entire payment for the amount which is outstanding within the period of redemption then in this term you can receive a certificate of redemption. You need to ensure that the certificate of redemption is recorded against the entry of forfeiture certificate, this will prevent you from any kind of issue in future, you can prevent yourself from any legal action or right against the property. It is necessary that within the certificate of redemption your name, complete details, payment amount and the date of payment is included. Every country has their own rules, if we talk about the Michigan country in case if you fail in paying the accrued interest and property tax then in this situation your country can even sell the deed of your own property. So, basically a certificate of redemption is a document which denotes that you have completed all outstanding payments including tax amounts and fines. This will give you the ownership over your property even after the foreclosure and before the date of auction sale.
What is a Certificate of Redemption
A redemption period is one which allowed to the owner of property and can vary even from days to years depending on the state or taxing authority rules. During the redemption period taxes, interest and penalties are accrued. It is important for the investors who buy tax liens to understand the redemption period. After paying the entire back taxes and other costs by the property owner a certificate of redemption is issued which is an action in favour of quieting the title. The contents which are included within the redemption certificate can vary from one state to another but the basic details are as follows:
- The year in default
- The amount which is needed to be paid
- The description of property
- The date of redemption
- Full name and address of the redeemer
Certificate of Redemption Example
These are few details which every redemption certificate must include. It is understood to everyone that if they fails in paying property taxes or neglect them then in such situation they can incur severe consequences like tax liens or foreclosure. If there is a case of tax lien filed against your property the you will be in need of paying all of the delinquent amounts which are sue it also includes every penalty, interest and everything. After completing the payment you will receive this certificate of redemption from your taxing authority.
Certificate of Redemption Form
Conclusion, So, this was all about the certificate of redemption if you are avoiding to pay tax of your property then in such situation be ready to face negative impacts of it. We advise you to pay all you taxes and interests on time without delays, although if due to any reason you have not paid your taxes then you can get redemption notice from your taxing authority and you need to pay all of the penalties and taxes within the period issued, a failure in this can cost you by losing your property. If in case you filled up all your dues and penalties then you will receive a certificate of redemption from their side which will act as a proof of your payment.