How long does a tax lien certificate holder hold the certificate?

How long does a tax lien certificate holder hold the certificate?

• A. 1 year
• B. 3 years
• C. 2 years
• D. 4 years

Answer: (C)

Tax lien certificates are a way for a county to secure delinquent taxes while letting investors earn through the redemption period. In New Jersey, the redemption window for a tax lien certificate is two years from the date of the tax sale. During this two-year period, the property owner can redeem by paying the delinquent taxes plus interest and costs to the certificate holder. If redemption happens, the lien is satisfied and the certificate is canceled. If no redemption occurs within two years, the certificate holder may pursue foreclosure or obtain a tax deed under state law to gain title. That two-year timeframe is why the correct answer is two years.

Tax lien certificates are a way for a county to secure delinquent taxes while letting investors earn through the redemption period. In New Jersey, the redemption window for a tax lien certificate is two years from the date of the tax sale. During this two-year period, the property owner can redeem by paying the delinquent taxes plus interest and costs to the certificate holder. If redemption happens, the lien is satisfied and the certificate is canceled. If no redemption occurs within two years, the certificate holder may pursue foreclosure or obtain a tax deed under state law to gain title. That two-year timeframe is why the correct answer is two years.