Investing guides / Delaware

Delaware tax sale investing: buy the deed — but the owner gets a window

Quick answerDelaware sells redeemable tax deeds for unpaid property taxes. Lien buyers can earn Depends on the method: monition sales — 15% penalty on the purchase price (9 Del. C. § 8729); direct sales in Kent and Sussex Counties — 20% interest on the purchase money (9 Del. C. § 8776). Redemption: Depends on the method: monition sales — 60 days from Superior Court approval/confirmation of the sale (§ 8729); direct sales in Kent and Sussex Counties — 1 year from the time of sale, and no deed may be made until that year expires (§ 8776) Sales: Year-round as scheduled by county — New Castle County monition (sheriff) sales are held monthly, on the second Tuesday of the month; Kent and Sussex sales are scheduled by the county tax collecting authority and returned to Superior Court for approval Governing law: 9 Del. C. Chapter 87 (§§ 8701 et seq., Collection of Delinquent Taxes), esp. §§ 8729, 8776.

How it works in Delaware

In Delaware you buy a redeemable deed: you take the property at the sale, but the former owner can redeem it during the statutory window by paying you the statutory penalty.

Interest / penalty: Depends on the method: monition sales — 15% penalty on the purchase price (9 Del. C. § 8729); direct sales in Kent and Sussex Counties — 20% interest on the purchase money (9 Del. C. § 8776)

Redemption: Depends on the method: monition sales — 60 days from Superior Court approval/confirmation of the sale (§ 8729); direct sales in Kent and Sussex Counties — 1 year from the time of sale, and no deed may be made until that year expires (§ 8776)

When sales happen: Year-round as scheduled by county — New Castle County monition (sheriff) sales are held monthly, on the second Tuesday of the month; Kent and Sussex sales are scheduled by the county tax collecting authority and returned to Superior Court for approval

Where sales run: mostly in-person — county sheriff sales supervised by Superior Court (e.g. New Castle County, City/County Building, Wilmington), municipality/county-specific; no statewide online platform verified

Governing law: 9 Del. C. Chapter 87 (§§ 8701 et seq., Collection of Delinquent Taxes), esp. §§ 8729, 8776

The investor's edge

Your edge is penalty math: model both outcomes — redemption (you earn the penalty) and keeping the property (you earn the equity) — and only bid where both outcomes work.

Delaware has no single statewide rule: the monition method (all three counties, court-driven, 100% due at sale in New Castle County) gives only 60 days at a 15% penalty, while the Kent/Sussex direct-sale subchapter gives a full year at 20% — always identify which subchapter a sale is brought under before pricing redemption risk. Wilmington's own city monition process also uses a 60-day redemption.

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Full legal reference: Delaware tax sale laws. Verified 2026-10-30 against the sources on that page. Educational only, not investment advice.