Tax Lien Certificate

A Tax Lien Certificate is a legal document that a government issues when a property owner fails to pay their property taxes. When taxes remain unpaid, the government can place a lien on the property and sell a certificate to investors. Buying this certificate gives the investor the right to collect the unpaid taxes, plus interest, from the property owner. If the owner doesn't pay, the investor may be able to foreclose on the property. Tax lien certificates can be seen as a way for local governments to recover lost revenue while offering investment opportunities to individuals.