Property OwnershipIntermediateDelaware Exam

What is a 'tax deed' in Delaware?

AA deed that records the taxes paid on the property
BA deed issued to a purchaser at a tax sale when the prior owner failed to pay property taxesCorrect
CA deed that conveys property subject to existing tax liens
DA deed used in estate transfers to minimize estate taxes

Why A deed issued to a purchaser at a tax sale when the prior owner failed to pay property taxes Is Correct

Answer B: A deed issued to a purchaser at a tax sale when the prior owner failed to pay property taxes

A tax deed is issued to the purchaser at a tax sale — a court-ordered sale of property due to the prior owner's failure to pay property taxes. The title conveyed may have significant legal challenges from prior owners.

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

Key Property Ownership Terms in This Question

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