Right of redemption
A period after a tax or foreclosure sale during which somebody with an interest in the property can pay what is owed and get it back.
What it means
A sale for unpaid taxes or on a foreclosure is not always the end. Many states give the owner — and often anybody else with an interest, including a co-owner or an heir — a window in which to pay the amount owed plus interest and costs and undo the sale.
The window is defined by statute and the arithmetic is unforgiving: a fixed period, a rate of interest set by law rather than by the market, and costs added by the purchaser. Miss it and the transfer becomes final.
For co-owned property this is worth knowing precisely because one owner can use it. A person who owns a fractional share can generally redeem the whole property, which is sometimes the only thing that saves it.
Why it matters
It is the last exit, and it is the one families most often learn about after it closed.
It is also a way for one member of a family to save land the others could not pay for.
When you are likely to meet it
- After a tax sale of a property nobody was watching.
- When working out whether a house that has already been sold can still be recovered.
How this varies by state
Whether a right to redeem exists at all, how long it lasts, who may exercise it and what interest is added are set by each state's statute.