The amount sold at tax sale may be less, not more. Which statement is correct?

• A. It may be less, not more
• B. It may be more
• C. It must be exactly the advertised amount
• D. It must be higher than the advertised amount

Answer: (A)

In a tax sale you’re bidding on a tax lien, not buying the property, and the final price is set by the bidders. The amount advertised is what the municipality hopes to recover, but there’s no guarantee the winning bid will meet or exceed that figure. If there isn’t strong bidding for a particular parcel, the highest bid can end up lower than the advertised delinquent taxes and costs. The key point is that the sale price depends on auction competition, so it may be less than the advertised amount, rather than guaranteed to be equal to or greater than it.