What Is Struck-Off Property in Texas and How to Buy It

At every Texas tax auction, some properties receive no bids. When that happens, the property is "struck off" — meaning it's conveyed to the taxing authority (typically the county, city, or school district that filed the tax suit). These struck-off properties represent a quiet, underutilized opportunity for investors who know how to find and acquire them.

What Does "Struck Off" Mean?

"Struck off" means the property drew no qualifying bid at the tax auction, so it is deeded to the taxing unit that sued for the taxes — normally the county, city, or school district. Nobody bought it; the taxing unit ends up holding title until it resells the property.

The rule is Texas Tax Code Section 34.01(j): if the sale draws no bid covering the lesser of the amount calculated under Section 34.01(b) (the taxes, penalties, interest, and costs in the judgment) or the adjudged value, the officer conducting the sale bids the property off to the taxing unit that requested the order of sale.

In practical terms:

• The taxing authority receives a deed to the property
• The property is removed from the tax rolls (tax-exempt entities don't pay taxes to themselves)
• The previous owner retains redemption rights (same periods as a regular tax sale — 2 years for homesteads, 6 months for non-homesteads)
• The taxing authority can resell the property at any time

What Does "Adjudged Value" Mean?

The adjudged value is the property's value as stated in the delinquent-tax judgment — the figure the court puts in the judgment, normally drawn from the appraisal district's market value at the time of the tax suit. It is not an appraisal you order, and it is not the amount of tax owed.

It matters because it caps the opening bid. Under Section 34.01(b), the minimum bid is the lesser of two numbers:

1. the taxes, penalties, interest, and costs awarded in the judgment, plus the cost of the sale; or
2. the adjudged value of the property.

On a property where years of tax debt have piled up past what the dirt is worth, the adjudged value is the number that keeps the opening bid from being absurd. If nobody bids even that, Section 34.01(j) sends the property to the taxing unit — struck off.

Why Do Properties Get Struck Off?

Properties fail to sell at tax auction for several reasons:

Minimum Bid Too High

The opening bid is the lesser of the judgment total — all delinquent taxes, penalties, interest, and court costs — or the adjudged value. Even capped that way, on properties where the tax debt has accumulated over many years the minimum lands at or near what the property is actually worth, and no rational investor bids market value for a property that still carries redemption risk.

Property Condition Issues

Properties with severe structural damage, environmental contamination, or code violations may not attract bidders even if the minimum bid is low. Investors see the potential liability and pass.

Title Complexity

Properties with murky title history, unresolved heir claims, or boundary disputes scare off bidders who don't want to deal with title clearing.

Location

Rural properties in areas with no rental demand and limited resale markets often go unsold. A $500 lot in a county with 3,000 residents may simply have no buyer at any price.

Low Awareness

Smaller counties may have very few investors attending their tax sales. A property that would attract bids in Harris County might go unsold in a rural county simply because nobody showed up.

How to Find Struck-Off Properties

Struck-off properties aren't prominently advertised. Here's how to locate them:

Method 1: Contact Taxing Authorities Directly

Call or visit the county tax assessor-collector's office and ask about struck-off properties available for resale. Many counties maintain a list of properties they acquired through tax sales but haven't yet resold. You can also contact city tax departments and school district tax offices — all can hold struck-off properties.

Method 2: Check County Websites

Some counties publish struck-off property lists on their websites, often under names like "resale properties," "tax-foreclosed properties," or "surplus properties." Look in the tax office or purchasing department sections of the county website.

Method 3: Monitor Tax Sale Results

Attend tax sales (or get the results afterward) and note which properties received no bids. Those properties are now struck-off and will be available for purchase from the taxing authority after the sale.

Method 4: Public Records Search

Search the county deed records for deeds from the sheriff or constable to the taxing authority. These are the recorded struck-off conveyances. Cross-reference with current ownership records to see which ones haven't been resold yet.

How to Buy Struck-Off Property in Texas

The purchase process differs from a regular tax sale. Here's how it works under Texas Tax Code Section 34.05:

The Resale Process

Taxing authorities can sell struck-off properties in two ways:

1. Public Resale (Tax Code Section 34.05)

The taxing authority holds a public sale, similar to the original tax auction but with a key difference: there is no minimum bid requirement. The property can sell for any amount, including $1. This makes resales potentially more attractive than original tax sales.

The process:

1. The taxing authority notifies the previous owner and any lien holders that the property will be offered for resale
2. Notice is posted at the courthouse door at least 30 days before the sale
3. The sale is conducted like a regular auction — highest bidder wins
4. The buyer receives a resale deed
5. Redemption rights still apply (same periods as original tax sale)

2. Private Sale to an Individual

Some taxing authorities will negotiate private sales of struck-off properties, particularly in counties that want to return properties to the tax rolls. This varies by county — some have formal processes, others handle it informally through the tax attorney's office.

To initiate a private purchase:

1. Identify the struck-off property you want
2. Contact the taxing authority's legal counsel or tax attorney
3. Make a written offer
4. The taxing authority's governing body (county commissioners court, city council, or school board) votes to approve or reject your offer
5. If approved, you close the transaction and receive a deed

Advantages of Buying Struck-Off Property

Advantage	Details
No minimum bid (at resale)	Unlike original tax sales, resales have no adjudged value floor. You can acquire property for pennies on the dollar.
Less competition	Most investors don't know about the resale process. You may be the only bidder.
Negotiation possible	With private sales, you can negotiate price and terms directly with the taxing authority.
Known quantity	The property has already been through one tax sale. You can research why it didn't sell and assess whether those issues are dealbreakers for you.
Taxing authorities are motivated	Every struck-off property is one the taxing authority doesn't want. They'd rather have it back on the tax rolls generating revenue.

Risks and Considerations

Redemption Still Applies

Even at a resale, the original owner retains their redemption rights. If you buy a homestead at resale, the owner has 2 years from the original tax sale date to redeem (not from your resale purchase date). This means part of the redemption period may have already elapsed.

Properties Were Passed Over for a Reason

Before getting excited about a no-minimum-bid resale, ask yourself why the property didn't sell the first time. Common reasons are legitimate deal-breakers: excessive environmental liability, structural condemnation, or tax debt exceeding property value. Not every struck-off property is a hidden gem — some are genuinely worthless.

Title Complications

Struck-off properties often have the most complex title issues in the county's inventory. The fact that they didn't attract bidders at the original tax sale sometimes reflects title problems that scare away experienced investors. Budget for a quiet title action.

Condition Deterioration

Properties continue to deteriorate while held by the taxing authority. If a property was struck off 3 years ago, it has had 3 additional years of neglect. Always inspect before bidding or making an offer.

Identifying the Best Struck-Off Deals

Not all struck-off properties are worth pursuing. Focus on properties where:

• Market value clearly exceeds your purchase price plus rehab plus quiet title costs — Run the numbers conservatively
• The reason it didn't sell is fixable — If it was struck off because of low attendance at the auction (not because of property defects), that's ideal
• The area has resale demand — A struck-off property in a growing suburb is very different from one in a dying rural town
• Redemption risk is low — Properties where the owner has been gone for years, is deceased, or has abandoned the property have lower redemption risk

You can research these factors against the Texas tax delinquent property lists before contacting the taxing authority. Check the property's assessed value, owner status, delinquency history, and neighborhood context. Then, when you approach the county about purchasing, you already know whether the deal works.

County-Specific Tips

Different Texas counties handle struck-off properties differently:

• Large metro counties (Harris, Dallas, Bexar) — Typically hold periodic resale auctions. Check with the county tax attorney for the schedule.
• Mid-size counties (Hidalgo, El Paso, Brazoria) — More likely to entertain private sale offers. Contact the county attorney's office.
• Small rural counties — May have accumulated struck-off properties for years without a resale. These can be the best opportunities, but the properties may have significant issues.

Action Steps

1. Pick your target county and contact the tax assessor-collector's office to ask about struck-off properties
2. Request a list of properties currently held by the taxing authority
3. Research each property — check assessed values, condition, title history, and owner background on LienSuite
4. Inspect in person — drive by every property before making an offer
5. Make offers — start with the properties where the math works even in the worst-case scenario
6. Budget for title clearing — plan on a quiet title action in Texas for every struck-off purchase

Struck-off properties are the market's leftovers — and in Texas, the leftovers can be remarkably profitable for investors who do their homework.