2023 Tennessee Code › Title 67 - TAXES AND LICENSES (§§ 67-1-101 — 67-10-107) › Chapter 5 - PROPERTY TAXES (§§ 67-5-101 — 67-5-2803) › Part 25 - TAX LIEN - SALE OF PROPERTY (§§ 67-5-2501 — 67-5-2516) › Section 67-5-2501 - [Effective 9/1/2024] Sale of land generally

(a)
(1)
The court shall order a sale of the parcel for cash, certified funds, cashier's check, money order, or automated clearing house transfer, as applicable. All sales are subject to the equity of redemption. Such sale may be conducted by internet sale in lieu of public outcry.
(2)
At the sale, the clerk of the court, acting for the tax entity prosecuting the suit, shall bid the debt ascertained to be due for taxes, interest, and other costs and fees incident to the collection thereof, where no other bidder offers the same or larger bid; provided, that, when the legislative body of a tax entity determines that the environmental risks or financial liabilities associated with the property are such that it is not in the best interests of the tax entity for a minimum bid to be offered at the tax sale, the clerk shall not offer a bid on the property at the tax sale.
(3)
(A)
The tax sale proceeds must be distributed according to the following priorities:
(i)
Amounts owing the delinquent tax attorneys prosecuting the cause; then
(ii)
The costs of the proceeding exceeding the attorneys' fees; then
(iii)
Amounts owing the taxing entities which are parties in the cause; then
(iv)
Amounts owing to tax entities filing a claim for current and other delinquent taxes and interest due them as stated in claims filed in response to notices sent them pursuant to § 26-5108 and § 67-5-2416 and for which no action has been filed pursuant to this chapter, divided prorated upon the amount of the base taxes due each; then
(v)
Any other property taxes and expenses owing any taxing entity secured by a tax lien on the parcel; then
(vi)
Any remaining proceeds must be distributed in accordance with § 67-5-2702.
(B)
If there are not sufficient funds to pay all of the amounts stated in subdivisions (a)(3)(A)(i)-(iii), the tax liens of the taxing entities securing such amounts must lapse upon expiration of the redemption period, it being the intent of the general assembly that a parcel sold at a tax sale be conveyed free of any remaining tax liens other than taxes levied for the current year. However, a taxing entity retains any personal right of action it may have against prior owners of the parcel.
(C)
If the tax sale is subsequently invalidated or declared void, the lapsed tax liens must be reinstated retroactively.
(4)
(A)
If a taxing entity purchases a parcel pursuant to this section, the taxing entity shall pay to the clerk all amounts owing as court costs, including the amount owing the attorney prosecuting the case, within sixty (60) days after the order confirming the sale becomes final. The taxing entity may by motion request the court for an extension of time in which to pay such amount. The court may grant such extension for such period as the court determines proper not to exceed three (3) years and may award interest to accrue during such extension at a rate determined by the court. In making such determinations, the court shall consider the financial condition of the taxing entity.
(B)
If the taxing entity determines to retain the parcel, it shall within sixty (60) days of making such determination, pay to the clerk all remaining amounts owing on the parcel.
(C)
If the parcel is subsequently transferred pursuant to § 67-52507 for an amount greater than the court cost paid pursuant to subdivision (a)(4)(A), such excess must be distributed pursuant to § 67-5-2507(a)(6) to the extent funds are available. Any remaining amounts owing on the parcel must be dismissed by the court and the liens securing the same must terminate.
(b)
(1)
The court may order the sale of all or a portion of the taxable personal property constituting a parcel secured by a tax lien. Such sale must be made according to such procedures as may be established by the court.
(2)
Upon a tax proceeding being filed to enforce a tax lien against real or personal property, any requirement mandating the confidentiality of records pertaining to the parcel terminates.
(c)
(1)
Within five (5) business days after the conclusion of the sale, and prior to confirmation of the sale by the court, the clerk of the court shall immediately file in the case a report of sale or other notice reflecting the results of the tax sale.
(2)
The clerk of the court shall, concurrently with the filing, file the report or notice with the office of the register of deeds of the county in which the property is located. The report or notice shall set forth all results from the sale, or a separate report or notice may be created for each property sold.
(3)
The report or notice shall include, at a minimum, the identification of the property and defendants contained in the notice of sale as required by §
67-5-2502
, the name of the successful bidder, and the total successful price bid for each parcel together with the instrument number of the last conveyance of record.
(4)
The report or notice shall be for notice purposes only and shall not be evidence of transfer of title.
(5)
Failure to timely record the report or notice shall not provide grounds to set the sale aside.
(6)
The document shall be exempt from recording fees pursuant to §
8-21-1001
, and shall be indexed by the register under the name of the last owner of record.
Amended by 2024 Tenn. Acts, ch. 967,s 17, eff. 9/1/2024.
Amended by 2017 Tenn. Acts, ch. 299, s 8, eff. 7/1/2017.
Amended by 2017 Tenn. Acts, ch. 299, s 7, eff. 7/1/2017.
Amended by 2016 Tenn. Acts, ch. 1085, s 1, eff. 5/20/2016.
Amended by 2015 Tenn. Acts, ch. 524, s 1, eff. 1/1/2016.
Amended by 2013 Tenn. Acts, ch. 353, s 19, eff. 5/13/2013.
Acts 1923, ch. 77, § 8; Shan. Supp., § 913b17; Code 1932, § 1951; Acts 1935, ch. 114, § 1; C. Supp. 1950, § 1591; Acts 1972, ch. 503, § 2; 1973, ch. 296, § 3; 1978, ch. 869, §§ 4, 6-8; 1981, ch. 125, § 1; 1983, ch. 307, § 1; T.C.A. (orig. ed.), § 67-2012; Acts 1996, ch. 787, § 7.
This section is set out more than once due to postponed, multiple, or conflicting amendments.