If there are no bidders for a property in tax sale, what happens to the property?

• A. It is stricken off the municipality at 18% or maximum interest rate.
• B. The sale is canceled and the owner restored.
• C. The property is clocked for auction again next year.
• D. It goes to the State for purchase automatically.

Answer: (A)

When a tax sale fails to attract any bidders, the municipality takes control of the unpaid taxes by striking the lien back to itself. The municipality then holds the tax lien and can pursue collection or foreclosure as needed. The amount of interest that accrues on that delinquent tax is set at 18% per year, or the maximum rate allowed by law if 18% isn’t permitted, whichever is applicable. This arrangement ensures the municipality still has a mechanism to recover the taxes even when private bidders don’t participate. The other outcomes listed don’t reflect how New Jersey handles an unsold tax lien: the sale isn’t canceled with the owner restored, the property isn’t automatically re-listed for auction next year in that sense, and the State doesn’t automatically purchase the lien or property.